But has it been a success or has it sewn more confusion . We talk about that in the program. European leaders discuss transatlantic duration relations in malta. Matt that will be an incredibly interesting must watch interview. Justin about an hour time. See very little change to equity index futures. Orlly, no change in london here in frankfurt. In paris, you see a little gain about 1 10 of 1 . Some really interesting moves today and i think the news is driving yield markets. Guy have you got the bunds up . Response to the news we had out a little earlier. And fundo doddfrank management. We will talk about that, is it a good thing, a bad thing customer we will talk about that. The yen is down a little bit. The bloomberg dollar Index Trading up by around 1 10 of 1 . It is payroll day. Remember the adp report we had earlier in the week. Well talk about the correlation later. Matt shoji the futures. Showed you the futures. Nd yields,e bud beginning to fade a little in reaction to what is coming out firmly from wall street. Its figure out what is happening around the world. Lets go now to our bloomberg first word. Sophie thanks, guys. The bank of japan offered to buy unlimited amount of onset a fixed rate at a scheduled operation to reassert control over surging yields. The central bank will buy five to 10 year securities from secondary markets. It is offering to buy the 0. 110ark 10 year notes at percent. The move comes after an earlier attempt of spending bond purchases failed. Residents Trumps Administration is set to play new sanctions on iran as early as today. According to two people familiar with the plan, the penalties are in debt punishing iran for sponsoring terrorism and testing ballistic missiles. 17 entities may face sanctions. Both trump and National Security adviser mike flynn have said iran is on notice. Has hikedntral bank its Monetary Policy by raising Interest Rates to charges in open markets operations, just as task cached demand is expected to gain. Day reversed agreement by 10 basis points each. That follows an increase in rates on mediumterm loans last week. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more , this iscountries bloomberg. Matt thanks very much. Breaking news as we follow this morning President Trumps move to halt an Obama Administration regulation that requires to work inadvisors the best interest of their clients. He will also order and it a review of doddfrank. For more, we are joined on the phone by Bloomberg Government editor in washington, d. C. Craig, let me ask first about rule. Duciary role moveould anyone want to against it . In theory, it sounds like the right rule. You want Investment Advisors to act in best interest of their clients. Craig what the Donald Trump Administration would say and what a lot of critics would say is that it creates a lot of new red tape and paperwork for these Investment Advisors on these retirement accounts and drives up the cost of the accounts, limits the choices, makes it harder for them to do their jobs and in the end, was designed to help his folks needing retirement accounts. It ends up hurting them by limiting choice. We could debate the merits of it, but there are a lot of critics of this in the retirement account industry and they seem to have found a hero in donald trump. Guy on that point, he who is he listening to . Craig we are seeing a lot of signs that gary cohn, who is running his Economic Program right now is emerging as a major player. Was one of the top managers at goldman sachs. In the absence of a secretary of seems to have slipped in and is talking to the president and getting him to listen to the way ahead. A lot of the stuff trump is. Oing tomorrow, today he has signaled on the campaign trail that this is not a surprise. He talked about rolling back doddfrank. For it to happen two weeks into his term, hes moving quickly to take some of these regulations down. Matt this targeting of the fiduciary role rule is very specific. Youre right, we could debate that all day and it has been debated since 2015. The doddfrank review is more broad. What are you expecting there . Craig i think what we will see later today is that he is going to sign an order asking for review. That might so sounded oculus, it, we arend of looking at every part of doddfrank. , systemicallye important financially financial organizations. They says they save luigi havesay too many regulations against them. I think you will see scaling back there. A lot of rules of the road from 2010, we expect trump to try his best to lift a lot of them. Again, they would say by easing regulations, it will make it more effective for investors, consumers, thanks to do their jobs. That is their position. We will hear from the president today. Guy doddfrank is not a single piece of legislation and there are certain parts of it which the republicans dont like as much. Can we talk of little bit about how this is actually going to work in terms of mechanics . How parts of doddfrank are funded . How the fed will fit into this . How complicated are the mechanics . One of the things we are hearing from the white house is that they are going to really dig into even some of the agencies. There is one called the financial protection board, put in place around the time of doddfrank. It is meant to be a consumer advocacy group. A lot of republican groups think that group has gotten out of control, it is doing too many things beyond its original mandate. They want a scale that back. I think you are going to see the Trump Administration moved against the current head of that. One of the things we are getting out of the white house is we are not looking at the agencies and the rules, but the personnel as well. I think he is a person they view as hostile to their view and are probably going to go after him. They are going to dig into that personnels policy. That comes back to the funding of his agency and how the fed works. Do you think are the republicans going to find a way around the democrats on this, is the essence of my question. Craig sure. A 52 seaticans have majority inside the senate. Thee are some rules of senate the tiger hands on some of these things. On a lot of things, we think they can move ahead. Dirty little secret is, even democrats think it has gotten ahead of its self. I think republicans can find even some, some sympathy among democrats there. Systemically important institutions, what this says is if you are a big firm, i think it is 5 billion is the current number. If you are higher than that, if you go down, you can take on the whole system with you. Republicans say, look, we have made to many firms in that designation. It makes it too hard for folks to do this. We need to make it a little easier. Fewer firms in there. Even some democrats have been sympathetic to that. Community banks right out of the bubble up against small that have been caught up in this. Even some democrats would say, maybe we need to revise the regulations there. While this will be painting a broad brush by a lot of democrats as trying to take down the rules of the road on the Global Financial system, i think there are a few rip democrats supporting this. I think they will actually be able to a cop as most of what they want to do. Matt thank you very much, craig gordon from our Government Team joining us at almost 3 00 in the morning out of washington, d. C. Im sure you will be looking forward to a heavy workload today. Joining us now is the chief Investment Officer as across bridge capital. It is great to have you here. I know one of the stocks you own and like his blackrock. Im looking back Eddie Morningstar report on the from the role rule department of labor and stephen ellis, the analyst there says this rule could drastically alter the profits and Business Models of investment product managers like blackrock. What do you think about the fiduciary role question mark role and camewere decided into effect last april. One thing is that if you are an schemes, one of the rules tells you to do is to recommend the cheapest product. Cheapest product may not be the best product for the client. Adviserses are are given the leeway to it buys the best product, you could add to the earnings. Youre not paying only by pricing. A lot of banks Asset Managers are already into a trend where they are not making enough money. I have spoken to people who said doddfrank has been like the affordable air Affordable Care act of banking. You are either in complaints are not in complaints. Compliance or not in compliance. It is like comparing the car industry to the truck industry. Rule, is this a significant blow to the industry . The patent industry . Blackrock is interesting in this, but the flip side of it is vanguard. Does vanguard suffer as a result . I dont think so. It is just a good way to make allocation. An easy way. Cost has struggled to keep up, which is why vanguard has done so well. Benefited from a smaller management fee. But i would still say it has outperform it is recommended as part of the allocation. I dont think it will be a huge hit, but what it means is you may have more money being made by Investment Advisors. If you are constrained and recommend only the cheapest product, which comes with the strollers smallest of margin. The client wont make enough money because it is not the best product for them. That is where the discussion is, i would say. Matt the spirit of the directive is obviously that you recommend the best product for your clients interest, not necessarily the cheapest product. Maybe that needs to be overhauled because it isnt unfair to expect that your Financial Advisor has the fiduciary duty to you as his client. Absolutely. I think it should extend to the best advice and the best advice. I think that is where the fine line has been drawn. If you make regulations to restrictive and are afraid of falling foul of that, and youre not doing your fiduciary duty. Im sure the democrats are going to paint this as, going back to the old days of 1990 and having a free run. This is where the debate is. How can you make this good for andlient the investor, the Consumer Finance investment bureau. Some people like it, some dont. You want consumers to be protected but you dont want over regulate yourself out of the business. That is one concern with the Financial Sector for some time. You like jpmorgan. You like bankamerica. You like blackrock. Are you in these stocks because you think President Trump is good for those share prices. Do you expect the Financial Services industry, which has done so well since november 8 two really benefit to really benefit from having President Trump in office question mark office question mark maybe the first one, which i hope and was hoping came in march would come in june. I expect you will see Interest Rates go up. If you look at the underlying data in the u. S. , underlying data is not bad. Very decent set of data. The second thing is that republicans are seeing seen as more friendly to the market. We are discussing now about regulation and getting the economy to perform better in terms of gdp growth and financials to do well. Definitely based on that. I would say there is a bit of a paul on the trump trade at the time. Is his first hundred days. You will have a lot of and two steps back, one step forward. But i still believe we are on track and will see growth. If things were to get much better, you might see an inlationary thing happening the second half of the year and maybe more response from the federal reserve. Will benefit the financials. That is my play on that. All right, you will stay with us. Friday morning, it is jobs day. Lots going on out there around these markets at the moment. Lets catch up with the bloomberg is this flash. Sophie snap ink will become the first u. S. Social Media Company to file for an ipo since twitter. More than three years ago. The maker of the disappearing photo app snapchat filed for 3 billion. They say snap plans to raise as much as 4 billion in the ipo for a market value as high as 25 billion. App amazons expected earnings for the quarter indicates step up spending on warehouses, movies and gadgets will continue. Both sales and the forecast missed analyst estimates. Operating income for the current period is seen at 250 900 million. Less than one year earlier despite forecasted revenue increase as high as 22 . Honda raised its forecast for operating profits for a second time this fiscal year on rising demand in its two biggest markets. The u. S. And china. The company says operating 6. 9it will probably rise to billion dollars in the fiscal year ending in march. That is an increase of 21 from an october forecast. Those projections could be clouded with protectionist u. S. Trade policies raise costs. That is your Bloomberg Business flash. Guy . Guy thank you very much indeed, sophie. It has been a busy morning. This is a fight to assert control over bond yields after disappointing bond purchases earlier the boj has offered to buy unlimited amounts of fixed rates. Nietzsche you the chart. Let me show you the chart. This is the first boj move in. You can see what is happening in terms of pricing. Prices go down, then we get a second reaction coming through with fixed rate operation coming through here. You can see a fairly bumpy morning and afternoon sessions coming through. Joined by our macro analyst strategists. Mark, will the boj be happy with it stays work . Mark probably not. They have success, yields back to where they want in the tenyear part of the curve, but they have sown confusion amongst investors. It is notable that when they offered to buy unlimited bonds in november, no one want to sell any. Today, they managed to buy over ¥7 billions worth. That shows the the people took them on. Matt Bloomberg Intelligence argues that may the boj doesnt necessarily want to keep the curve so tight in the middle. Maybe they are willing to let it go more than 0. 1 in either direction. 10 basis points in either direction. What you think about that argument . Mark i think that is potentially fair. Main problem is they are not making clear that policy. They erode credibility. We dont have an exact target, we wanted to fluctuate around 0 but will let it move a couple of weeks. Make that clear. If you imply you are planning to keep it a yield target and then completely ignored, you send the wrong signal to traders and markets. In terms of the size of the operation we could expect, are they going to sequentially have to get bigger . Mark definitely. While global yields are rising, it is important to note that this yield came along with the u. S. Driven yields from november , and ofame a bit behind global yields start falling, it will be less of an issue. He will have to keep stepping up purchases but have the ability to do so. Matt i wonder about political concerns and whether that is a consideration here. Shinzo abe is scheduled to meet donald trump next week, february 10. Earlier this week, trump asserted that japan isnt playing the money market to keep its currency devalued. He said that about other governments. Was the bank laying off as far as yield curve control and an attempt to get out of eight currency manipulator spot . Perhaps. That is a valid observation and maybe we havent given it enough weight here. When they did come in and make those unlimited purchases,. Ollaryen spiked if they say, we are tight in the yield and wont let it flow, dollaryen will pop. That doesnt look good ahead of this meeting with abe and trump next week. Matt you have argued over the past week that his executive orders have eroded the brand of the usa as the place to do business and the place to invest. What you think about his move now to remove the fiduciary rule and fulfill his Campaign Promise to instate a broad review of doddfrank . Mark i think a broad review of doddfrank is essential. There is far too much regulation in the industry. What is worrying is if it will be scrapped without replacing it with something better. As is a slightly worrying sign about how it is presented, but i have not had time to see the proposals for a replacement. Owing how the policy has been working so far, i am not sure there are better suggestions yet, but i hope they will come in time and a better solution can be found. Guy we will leave it there. Great stuff. Go to your bloomberg, you get this blog which runs around the Global Market day and get you a running commentary on some of the more interesting elements to what is going on, some analysis, the latest on what is happening with the turkey and cpi story coming through. Mark is still with us. You can see what the boj is doing. Ende dont know what the game is. Theythe boj wants to will continue to buy. They are targeting the 10 year yield at 0 . Whatever they dont buy, will spike. When i see dollar japanese yen is going to rally, i end up buying more japanese equity and 112 we saw yesterday is a sign you are going to have stronger dollar and bigger japanese that weaker japanese yen. I recommend going long dollar. That is my trade. That is the only way i play. I dont look at the bond market in japan. It is interesting to see, given the size of the Balance Sheet boj has, you dont know where it is headed. Lets take a quick shot of theresa may arriving at the event in malta today. A firm focus on what donald trump is expected to deliver for the eu the leaders are arriving today. This meeting is about immigration. About how to control immigration out of north africa, but i expect what is happening here is a eager conversation, particular ly around recent events from the washington side of the pond into the eu and how this will affect how the eu progresses from here. Leadership source from Angela Merkel. But i expect theresa may could be an interesting perso