The shares plan for new revenue streams. Welcome to bloomberg daybreak europe. I am anna edwards. Breaking news. We are going to kick it off with sony. Sunny cutting their profit outlook two ¥200 billion from ¥270 billion. Y have been plaguing these the movie side of the business. Surpriseto mondays 112 billion yen charge against its film business. That is despite continuing dominance in its video games through its playstation gaming consoles. It has been the possibility that aty could cut the outlook the results of the weakness they flagged at the beginning of the week. How much was that already priced into shares, we will see. The moviest between division and the stellar Games Division has manifested here. We have a bit of banking that is one of the themes that will come through today. This has caused the biggest mortgage game best Mortgage Bank up in sweden. Swedish. On that is above the estimate of 4. 09 billion. That is across the banking sector. Cost efficiency remains the number one priority. When it comes to buffers of capital. Estimate, up from 24 . A good set of numbers on the very face of it coming through. We have ing reporting as well. This is the largest dutch lender, and answer them based back. Amsterdambased bank. It looks to be ahead of the estimates. The underlying profits for the Fourth Quarter, zooming in on the most recent period, 1. 95 5 billion euros. A ratio of 14. 2 . It is a business pioneering Online Banking for a most two decades. It is among the large european lenders stepping up digital assessments. There continued to take cost out of the business as they do sue best do so. We will be talking to the business about that shortly. Talking about nokia now. They did a deal to boost their reach. But we have is foursquare sales at miss. They miss on the lowest estimate. They come in at 6. 7 2 billion. The market was looking for 6. 7 9 billion euros. That is a big issue for the gear maker. A low stand on the 4g, a lack of demand for 5g even though u. S. Carriers are expected to spend a little more come verizon upping their spent last week. Looks as if the net sales, there is a little bit of disappointment. What you make of the business . Those margins are improving. We will go up the supply chain with numbers from vodafone. Lots more earnings coming throughout the show. Lets show you where we are on various markets. A lot of people have been talking about the dollar. It matches more than it matters more sometimes than when others do. The bloomberg dollar index, down the fed it not giving much reason to change of views on the pace of Interest Rate hikes. Steady as she goes. Manus Goldman Sachs says that on the dollar. Look through all the noise. Theres a read on nokia. I mentioned the margin being better in the Fourth Quarter than we had expected. 42 act from 41 . 4017 operating margin between 6. 8 and 10 . Aussie dollar stronger. Leading the aussie dollar to its highest in nearly three months. This is a rise above 1. 1 for the first time in a year. The question will be this, what is the bank of japan have to do . Targeting yields. Will that provoke a reaction . Another of corporate ceos asking about that today. First word news with shery ahn. Shery ahn Federal Reserve officials left rates unchanged following the election victory. It will raise to its 2 target even with rising Interest Rates. Little direction on when it costsnext raise borrowing as they grapple with the insurgency with the new administration to. Rex tillerson secretary of state after they split mostly along party lines. The former ceo confirmed in a vote of 5643. Publicans overcame a demand by democrats to delay the confirmation until Rex Tillerson provided his views on the travel ban. Putting iran on notice for testing ballistic missiles. Michael flynn assess tehrans actions point two defiance of the Security Council resolution passed after the 20 15th nuclear deal. Iranians trump said taking over more of iraq even after the u. S. Squandered 3 trillion there. President trump blessed a potential 1000 Refugee Resettlement deal with australia. It,aid it do you believe the Obama Administration agreed to take thousands of Illegal Immigrants from australia. I will study this dumb a deal. Unidentified u. S. Officials were briefed about the conversation. Taking the u. K. Out of the European Union has passed its first test in parliament where lawmakers agree to a lovely private minister start negotiations by the end of march. They backed theresa may by 498114. Approval warned the should not be mistaken for unconditional support to negotiate freely. The government will publish an outline of the brexit plans today. 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. Manus we have equities. Juliette saly standing by. I was asia taking the signaling . Certainly the yen has weighed in on the mckay. Juliette weakness in a late trade, coming up from the korean won as well. The feds, not much new. Fora lot of Movement Investors willing to dip their toes into the markets. Quite a bit of weakness coming through hong kong down. 7 . Catchup. Ying hong kong was closed for Lunar New Year. Their 76. 43 after the trade balance beating expectations. We have also seen very Strong Movement coming through in the japanese yen as well. Pick you very much for update on the markets. The Federal Reserve is in a wait and see mode as they try to figure out what president trumps policies mean for the economy. While the fed it provided little direction on when it would raise rates they said the sentiment has risen on inflation and will rise to the 2 target even with gradual adjustments in Interest Rates. Strategistr currency in the studio today. Like everybody else the fed is waiting to see what the whirlwind of executive orders we have from donald trump. Market isng for the wondering if they are going to get going in march. March, june. The market is going to question whether or not they can squeeze three in. Wasnt particularly signaling the march on the cards. Janet yellen and the feds like everyone else is worried about the uncertainties that donald trump is drumming up. Being we have gone from the great dollar traded, the Fourth Quarter of 2016. No it is the worst start for over 10 years in the dollar. On the speculative conditions swept out of this moniker and do you look through the noise or is the dollar going to become the currency manipulator . The u. S. E seen administration already becoming a u. S. Best currency regulator. Enough a strong dollar policy is that around years. To make the remarks as we saw on japan am achina on a highly unusual. I think we do have a very different type of talk coming from the trunk administration. Dollar, ict to the think what we saw last year was the market getting ahead of itself. Getting excited about inflationary plans and what we are seeing is one of those come up. The dollar is in a more neutral position. The market is fearing protections and isolations and what you can do to growth. Whether it will be detrimental to growth. Isa are these conversations similar to conversations under the Obama Administration but now out in the open . Or is the underlying material nature of these conversations different . Themission in your notes Obama Administration was also concerned about the u. S. Trade deficit with china and germany and behind the scenes, this is all out in the open. Guest if you go back to that meeting, look at the market after that. He administration had pushed back on the currency. Had given a strong signal behind to otherors authorities not to engage in currency wars. Japan, japan has not intervened in the market frequently since 2004. As we say, this is speculation. If these conversations happens that they were behind doors. Now it is in the open and that can create volatility in the markets this year. Manus you have made the choice point the japanese have not intervened. The chinese are soaring up their currency. You look at dollaryen and you have a real sense and the market that the jgb market is moving higher, yields are moving higher. Can be provoked into more action than we think. The bank of japan clearly has a aggressive Monetary Policy. Market. More of the a lot of speculation that they are going to really saturate lets market. Limits to what they can carry on doing. Etf as well. Their policy is to really pressure that 10 year yield. That is their policy. The location is they will be doing more. Theres not get the application they will start intervening in the currency. If donald trump does provoke other authorities such as china, maybe japan. Who knows what could be down the road . Anna we have not heard as much as we thought we would between china and the united states. Why do you think that is . Because he is trying to work out where china is in the mitigation story . He said for years they may deflect the currency. They influence their currency. Certainly there was a he would label china a currency manipulator because he said before. He has not done that yet. That is one of the reasons arguably that china is intervening. Trump or delayld him labeling them a manipulator. Chinese authorities were just a boy from intervening to keep their currency higher. The world market flooded with even more chinese cheap goods. He wants a weaker dollar to rebalance the u. S. Trade deficits. Anna . Ng china thank you very much. With us here on daybreak. Ricky news. Breaking news. 11 9 versus equity of 11. 3 . Something on the to do list for the ceo. Where watching closely to see how the business does. Trading . Fixed income getting q4 equity trading at 428 Million Euros. The estimate was 559 euros. That looks a little like debt g. Lighter than the estimate of 1. 6 8 billion. A loss in the Fourth Quarter, 1. 8 9 billion against estimated 1. 3 2 billion. That net loss does look to be larger than had been estimated. This is a method that has been innovating thousands of dollars jobs. They paid a number of those. Manus go to top life go the editors are there. Theyre talking about the valuations of craig torres in Deutsche Bank rebounded from the lows. Lets get to matt miller in frank first looking across the numbers with us. Lighter. Ings look that is what bolsters the big five in the united states. Is right. There are two important things to take away from this earnings report. The debt trading side, a little bit light, and the capital ratio, a little bit stronger than had been anticipated by analysts at resurveyed here at bloomberg news. That trading is going to be weaker. People will focus in on that. Thats will a problem from john cryan. When we get the press conference, which we will have at 9 00 german time, 8 00 u. K. Time. A lot of questions about that. On the other hand we are seeing soon the other hand we are seeig so many come across, seven points to billion dollars settlement with the department of justice. A traded settlement with new york and london. Could have pulled ratios. Tier one capital bringing up to almost 12 . Anna interesting outlook statement from the bank. They are optimistic after a promising start to year. You hope they are optimistic. Shareholders dont want a pessimistic management board. They are be that getting some of the legal costs behind them. Andsettlement with the doj the alleged moneylaundering settlement with york and london, these were big problems. Big pieces uncertainty. They have people put stupid things behind them. Justice, fort of the moment. Go, a few more features coming through. As it management, also something we saw last week. 13 billion. Restructuring costs at 113 billion. The estimate was much higher at 330. We structure and cost comes in better than the market had anticipated. Anna numbers out from ing. Underlying pretax profit rose by 53 . Joining us is the chief Financial Officer patrick flynn. Great to have you on the program. The visibility we heard about Deutsche Bank being optimistic what visibility do you have . Reported roberts of 5 billion, up from 2015. Putback of a strategy would customers first. We have grown a lending at 6 , 36 billion for the year. Putting customers first, clearly working. Manus you are probably a great barometer for the truth of europe. We have had a raft of numbers. I know you do a business, how strong is europe . How much recovery is there in europe . Our commercial bank expands the world. Easternrime form, europe as well and germany. Growth ining strong places like poland, romania, germany. Our commercial bank is also showing significant strength. Good growth in belgium. Not where we would like it to be. In europe buty overall it is growing strongly. The risingtalk of Interest Rate environments. Some days that seems more true than others. For are your expectations the rising Interest Rates and what level due do to net Interest Rate margins . Theres a lot of talk about it but when i look at it i think the increases we have seen so far are modest. Restructured that we dont to cap Interest Rate risk. As long as the impact is very slow and we see Interest Rates rise, it is beneficial and i would like to see it. The impact will be through very slowly. We dont expect or predict significant increase Interest Rates. Our plans predict a low rate through 2020. We plan to respond to that, increasing our digital focus and driving ing closer to becoming a fully digital bank. Manus part of the conversation we are having ceos and cfos is about the consolidation story that many are saying is going to get ignited around europe. Do you think that will be part of the story for 2017 . Are you a believer in organic rope or would you look for targets . Patrick if you look at what we have done, profits of 18 . Our organic strategy is clearly working. We are proud of it. Our footprint is broad. We dont need an expansion prevent footprint to be successful. Of our markets are delivering 100 million per head and have room to grow. Plenty of space for organic growth. We will keep an eye on what is happening in the markets but primarily in organic strategy. Germany and spain where you have moved in. What market shares do you have in these and what are your expectations . How big can a business like yours become . In romania we make 100 million. Turkey 100 million. Germany over one billion. Digital bank no branches. How big can that be . We think the significant capacity to grow up with a digital platform, our customers are increasingly migrating towards digital, using the handset is the preferred medium for directing. See any constraints in terms of growth. It is a huge opportunity to ive seen markets increase internet speed, this will only accelerate. Manus what do you think is the biggest risk to you . Beltran on a daily basis changing a perspective of the world. Job too manus manage risk is the biggest risk on your radar . Control, wet we can can. Extraneous factors are difficult. Ponder how these political changes will impact the economy. Ow they will impact gdp, trade something to watch very closely. Thatregulation, something is not out of the woods yet. That we doactors focus on and do a lot of scenario panning on. Anna thank you so much. More coming out of Deutsche Bank game messageut the we gave earlier. We just had ing, Deutsche Bank numbers. A little bit of Something Else. Andre going to shift gears talk about the 3d world. This is bloomberg. Planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Anna welcome back. Movement in the dollar. The dollar is weak or. Down by. 5 . On. 06 is where we trade dollaryen. 1. 6 5 billion euros for the First Quarter. 1. 65 in the market. Cents, 161 Million Euros so the First Quarter revenue at 1. 65. A couple of boosts. Currency tailwind. Sectorh stricter auto gains. Infinium going to buy back 10 billion and danish krone of their own share. An update coming through from this bank. Between 1719,000,000,000 danish krone. This coming through the danish banking group. Real credit denmark and other subsidiaries. Manus a new edition of daybreak on your travel. This is what appears. It is the cover story. Super thursday, the bank of england. A pressrecast and conference on tap for today. Mark carney is likely to argue that rested risks brexit risk calls for giving city. The feds decision noting the rise in consumer and corporate sentiment. Tighten. Will investors see a 33 chance of a move around 70 . And want a line in the a wonderful line in the story market and what could be ephemeral. Anna Deutsche Bank was front and center as it reports a net loss of 1. 80 9 billion euros. Outlook for the year will be in focus when the publisher earnings this morning. Guy johnson will break down the market moves for us. Guy lets talk about what is happening. You are you coming up on the ftse 100. Public pretty hard to get a good gauge on where it will go. Lets see how shall reports in a few minutes time. Oninterview coming up later and will focus on what is with the particularly cash generation and return the companies are willing to regenerate. French market is interesting, and interview coming up that will be f