And we will speak to the ceo of unilever after the consumer goods giant reported sales that missed estimates. The interview at 7 15 london time. Matt we are less than 30 minutes away from the open of european stocks. It looks like the rally is set to continue. Here you see gains in theaters cac. E dax, ftse, this, after we saw gains in trading yesterday in the u. S. , asia, and carrying through to us here on the continent. Manus lets have a look at gmm, because it tells the story. The dollar is unsure. Yesterday i was confused. This morning the dollar is flipping it ever so slightly against the aussi. There is a sentiment that the fed will be provoked a little bit like the bear with a stick into doing a rate hike every quarter next year. I was in a session yesterday where they talked about dr. Jekyll and mr. Hyde with trump. The dollaryen, 1. 1360. When it comes to trade policies in the u. S. , somebody might want to brief the administration on if they dont produce enough aluminum, iron ore, or steel , you might want to consider that when it comes to your fiscal expenditure. That has a nice momentum across the complex. Commodities are big. These equities are punching it out. Are we being overly exuberant . Perhaps on a bad day, irrational . Juliette saly has your first word news. Juliette President Trump has acted on two of his most Controversial Campaign promises. He signed an order to set in motion to build the physical wall across the 2000 mile southern border. He signed a second order that targets sanctuary cities that refuse to allow police to enforce federal immigration law. Hisese premier li says country Will Champion economic openness. He described china as an an chor of stability with its consistent message of reform and free trade. China has been perjuring himself as a champion of globalism, as donald trump scrapped the tpp and says he will renegotiate nafta. Chinas central bank ordered the to controlnders new loans this year. The government has been targeting home loans since thte Fourth Quarter to contain runaway property prices in areas deemed overheated. French prosecutors have opened a probe into president ial regardinger fillon the employment of his wife as a parliamentary aide. This comes a day after a french newspaper reported Penelope Fillon collected a public salary totaling 500,000 euros without actually doing any work. Says thisment, fillon investigation will allow him to put an end to the unfounded accusations. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. This is bloomberg. Matt thank you. The Dow Jones Industrial average closed above 20,000 points for the First Time Ever yesterday in new york. Since donald trump won the u. S. President ial election. The 1000 point run was the second fastest in the indexs history. All three major stock indexes closed at record highs yesterday. Here you have a look at the dow, the s p 500, and the nasdaq composite, all at records. I want to focus on the dow, manu s. Though this is not as representative of u. S. Business, th it is the one that mom and pop look at when they open the paper in america. It is interesting to look at this broader view. In 1999, from 10,000 when i was still in college, it has taken us that long, 18 years basically to double up to 20,000. You can see this in your terminal as well if you type in 5310. Matt, eh . 9, i think i was working in a bank. Strangely enough, lets talk about a bank. Matt, you said it took us nymex to travel that 1000 points you said it took us nine weeks to travel that 1000 points. Here is what is driving that momentum. It is good old goldman sachs. We put on 1800 points since inauguration day. Satt, 70 points of that i goldman sachs. 160 points is boeing. And ibm, 150 points. This is what we need to conjecture, of course. If you get a tax cut, and a repatriation of dollars and share buybacks, what more can these beasts of the american equity market do . J. P. Morgan Asset Management, what better time to bring them in . Lets address that. This is the second fastest ratchet of 1000 points since 1999. Have they gone too far too fast . We got there he overexcited and the last couple of months of 2016. We were getting high on the idea that more Infrastructure Spending would come through and tax cuts. Very few mentions of that in the inauguration speech by donald trump in his first speech as president. We are looking for signs that maybe that fiscal policy might not be coming through in the scale we were hoping for. If they are starting to negotiate tax cuts now, the earliest realistic date they could get this on the table and pass through would be the end of 2017. That is how washington works. I think markets got a little too excited about this. Understandably so. We have not had any fiscal policy for a while, but i think we got ahead of ourselves. Matt i wanted to ask you about the banks. Goldman sachs is up 30 since election day. P financialsthe s index. Goldman sachs, up 30 . Other banks have climbed almost 40 . Bank of america, citizens financial why have these banks done so well since President Trump was elected . There are two factors. One of them is around the steeper yield curve and the interest margins that go into the loan books would be significantly improved. But it is also because of the fixed income trading revenues. At the end of the day, when the fed banks rates flat, it is hard for traders to make money because volatility is so subdued. Now we are looking at a steeper yield curve and we are seeing more activity and bond markets, which is helping the fixed income and trading revenues. In the Third Quarter of 2016, the fixed income revenues in the top 20 banks went up 50 year on year. That number will increase as more volatility enters the market. Manus tell me this. We had conversations with a number of different people. I know what you are saying to me, which is we dont have any details on the repatriation of dollars. 200 billion is the number goldmans has pegged in. And repatriation of dollars part of the best case thinking . Of course. And that is a good longterm driver for returns. There are about 2. 7 trillion locked up overseas. When it comes home, that is going to look like special dividends, like m a activity. What i would caution a little firms have had access to cheap lending for quite some time. Central banks all over the world have made it possible for companies all over the world to borrow with low Interest Rates. They did not take the opportunity to borrow with a leverage up too much. Matt alex dryden of j. P. Morgan, talking us through this historicen after a record close of the dow jones. Coming up, we talked china as the worlds second largest economy orders banks to curb loans in the First Quarter. Later, we hear from the ceo of unilever as the consumer goods giant says tough Market Conditions are likely to continue in the first half of the year. Londonerview at 7 50 time. Plus, raise a glass. Diageoak to the ceo of after the drinks maker reported earnings that Beat Estimates. This is bloomberg. Matt welcome back to Bloomberg Markets. Chinas central bank ordered that nations lenders to control new loans in the First Quarter of the new year, another move in china to curb excess leverage in the financial system. The government has been targeting home loans since the Fourth Quarter to contain runaway property prices in areas deemed overheated. Alex dryden from j. P. Morgan Asset Management joins us. Alex, is china on the brink here . Is china a question mark in your Investment Strategy for 2017 . Not for 2017. We saw the gdp data and Sales Numbers last year, they were solid. What i would say is this guarantee for chinese data is for 12 months only. I am not concerned for 2017 because if we look forward to the autumn of this year, we have the Peoples Party meeting where the chinese leaders get together and discuss the makeup of the party Going Forward. They need gdp data and Economic Data to be stable to provide a good backdrop for those political discussions. Looking beyond that, there are cracks starting to show. Private credit is now 200 in china, more than twice what it is in other emerging markets. That is an area of concern. Manus the one thing the pboc is doing is trying to curb new loans. This is the long profile, in terms of new loans going back to last year. Last year they gave out 1. 8 trillion worth of loans. 36 of my came during the First Quarter of last year. Of that came during the First Quarter of last year. Is china doing a good job of quelling bubbles . At the moment what they seem to be doing is injecting this loan growth in in every little bit of loan you are making. They know they cannot do this forever. The one thing i do take some comfort from in the chinese situation is that there are some concerns. I have a list of concerns, they are round the currency, debt market, the overall composition of growth. I take comfort that my list of worries is the same as what policymakers have had. They are worried about currency, the debt market, how they get growth in the chinese economy. They are trying to fix these problems, but it is hard one for much of the chinese history, it has been built on stability. That has been the essence of everything. Trying to transition the economy to a consumption led one is not going to happen overnight. There will be bumps along the way. Manus one of those bumps could be what trump does in affecting change between the trading relationship. Alexander dryden stays with the market open. We are minutes away from the start of your trading day. Up next, we look at the movers. Unilever, we will hear from the ceo. Johnson johnson, they bid out and buy actelion. Diageo raises a glass. Matt unilever sales missed estimates in the Fourth Quarter and they expect tough Market Conditions to continue in the first half of this year. Anna edwards asked if the top conditions are wider than brazil and india . We live in a world where there are many challenges we have to deal with, in many parts of the world. There is slow growth in the middle east. These are africa devaluing. In latin america, we have brazil and to some extent, argentina. This is a world that is challenged. Consistently, the imf has lowered the forecasts. The good thing is, for the first time last week, they have slightly increased their forecasts for 2017 and beyond. Hopefully, we are at the bottom of this. Anna if investors are looking at your Fourth Quarter underlying Sales Numbers, will they look like compared to estimate . What would you say to them . The First Quarter is only 90 days. We had the full effect of this demonetization in india and that really affected the market there. We have a very big business in india and likewise in brazil. They are going through a very tough time and we have a big business in brazil. That is 90 days. Ook at the entire year, we are putting in good results. Andre doing this year in year out and doing this responsibly. For eight years in a row we have had top and bottom line. Topline with a market that is growing about 2 . Profitability is up 50 basis points. Our cash flow is at a record high 4. 8 billion. We think these are solid results. Worst on we passed the the india front . Communications are that we stillut i think we will have to deal with a soft First Quarter as the economy regains its footing. Especially the smaller distributors and the whole still traders. Obviously, with our deep business in india we have to go through this. One word of caution, there is a general sales tax coming in india on july 1. Anna turning our attention to the u. S. , does the arrival of donald trump changed the way that unilever has to do business in the United States . Do you have to be more american . Well, we have the fortune to be in every country for 100 years or more. We have a long history all over the world. One of our strengths is we deal with local consumers and adapt our products to the needs of the local consumers. Most of our brands are produced in the countrys themselves, like here in the u k we produce for the u. K. In the u. S. We produce for the u. K. Right now there is more optimism in the u. S. Economy and people think that the next few years, if you look at the stock market and consumer confidence, it has been able in a short time to build up. We have to continually assess what changes in policy due to our business. Anna does your excitement around growth in the United States, does that compensate for fears around trumps worldview and what he means for global companies, such as unilever . We are global, but we are local. In america, we have American Workers and sell products for the americans. In that sense, we are the same as any other country. But we do have to look at this changing environment. As you have seen over the last few years, the geopolitical tensions in the world do not make it easier. People,usiness hopefully responsible business people, have to do with this political process. When it gets to tougher issues like Climate Change or refugees, the complex we are seeing the conflicts we are seeing, we have to ask what we can do. What can we do to reform Financial Systems . What can we do for a battle social contract with society . For a better social contract with society . Anna another political point of tension around brexit. We have heard from Prime Minister may about what she wants from the Single Markets. Given what we have heard so far, what is your big concern about brexit . It is what it is. You know my opinion. We move forward with what other people have chosen. We are trying to limit the damage. Unilever is in many countries in the world, many countries that are not in the eu. In that sense, we are in the same position as many of our competitors. We feel we have a responsibility to ensure that the negative sides of this unfortunate decision are limited. Both for europe and the u. K. Anna anna edwards there, speaking to ceo paul polman from unilever. Moments to go before the start of the trading day. Three big news pieces to keep in mind. Unilever missed on the numbers, even though he said there is not much to worry about. Johnson and johnson paid 30 million for actelion. They are paying 280. 0 on the open. Geo ceo talk to the dia very shortly. This is bloomberg. Manus a very good morning. You are welcome to Bloomberg Markets, the european open. Alongside me, matt miller. Guy johnson is on assignment. Matt, you have got the morning brief. Matt thats right. We have history in the making here. The dow closed yesterday above 20,000 for the First Time Ever. How much longer can the ball run last in the land of trump . The u. K. Prime minister heads stateside where she will address the Republican Party ahead of tomorrows meeting with President Trump. What Common Ground will they have . Conditions for unilever. The ceo told us we are in a world with many challenges after the consumer goods giant mrs. Its a misses its sales target. Give its ceo smaller bonuses this year than last year. Bonuses will go down this year because of mistakes made between 2005 and 2007. They cannot claw them back from then, so they had to punish the 2017 class. Manus. Your bank has got to deal with litigation whether you were there or not. Stocks are open, off and running. She pricked my bubble this morning when i was getting excited about the dow over 20,000. It did not matter that much. Stocks are up. Commodities on the rise. Financials are absolutely the driver along with Energy Stocks on this marketplace. Andon, paris, frankfurt. Nejra cehic has your open. Nejra whether you think it is important or not, the trump trade certainly is alive in Global Equity markets and the global reflation trade allied in the bond markets as well. Treasury yields moving higher. Japans 40 year yield hit 1 . Im looking at the gilt market and it looks like they are following treasury with the rest of europe. The 10year gilts bang year it year up. T the sector breakdown, we saw financials leading the gains yesterday and in asia. They are the second biggest gainers up. 7 following i. T. Stocks, but it is pretty much green around the wheel, and then i have a great turn for you here. It is ahead to u. K. Gdp data and theresa may heading over to washington, d. C. This shows the gains in the ftse 100 in sterling, and dollars, and in euros. Interesting to see the difference in those gains since brexit. Let us take a look at some of the three stocks im looking at today. Im starting with royal bank of scotland have the headline about the bonus pool. A 3. 1e heard it will take billion pound charge in its fourthquarter results, moving closer to resolving that u. S. Probe. It is looking like it could be opening higher at the open. Unilever, we are keeping an eye on that as well. Sales miss analysts estimate. It grew at the slowest pace in at least two years. Actelion, the deal with j j going ahead. J j agreeing to buy the swiss drugmaker for 30 billion and spent off its research and development operations, clinching one of its largest deals ever to become a leader in medicine, treating a rare type of high blood pressure. Actelion up significantly at the open. Manus i will pass it over to matt. Matt im going to take it from here in berlin, because it is a little bit