Ecb prepares to deliver its latest policy decision. Jamie dimon found a pessimistic about the future of europe. The eurozone may not survive. That is a very complex thing. That is a pessimistic view of europe. Pessimistic,term yes. Unless they change. Francine good morning. This is bloomberg surveillance. Im Francine Lacqua in davos or the World Economic forum. We are in today three. Tomorrow, we are live from the forum. A whole host of interviews coming up later today on piereillance including carlo padoan and Goldman Sachs ceo Lloyd Blankfein. Lets get straight to the bloomberg first word news. Heres sebastian salek. Sebastian the chair of the u. S. Federal reserve said the u. S. Economy is close to the Central Banks objective of full employment and stable prices. Janet yellen also said she is confident it will continue to improve and it makes sense to gradually reduce Monetary Policy support. As of last month, i am most of my colleagues, the other members of the fed or in washington, and the president s of the 12 regional Federal Reserve banks, were expecting to increase our federal funds rate until a few times a year by the end of 2019 it is close to our estimate of its longer run neutral rate of 3 . Sebastian Deutsche Bank told some employees yesterday that job cuts will continue even after it slashed bonuses for senior staff according to a person with knowledge of the discussion. Another person said in some parts of the investment bank, managers have been asked to identify the bottom 20 of performers. A spokesperson declined to comment. Goldman sachs may cut its london staff in half while transferring some to other locations as it prepares for brexit. That is according to a german newspaper citing unidentified people in the financial industry. The record the report comes a day after a ceo told bloomberg operations may move to paris. A spokeswoman for Goldman Sachs said it hadnt made any decisions. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Francine thank you so much. We get theresa mays dental speech this hour. Before that, u. K. Chancellor Philip Hammond has said hes confident that sterling will find an appropriate level as britain progresses with its plan to exit the European Union. He added that he wants to transition into brexit. What the Prime Minister talked about on tuesday is the need to move forward quickly after we served the notice to scope out what the instate is going to look like, get agreement on Practical Solutions for the relationship between britain and the rest of the European Union, but recognizing that will take some time to implement. Until we get into the detailed talks, we cant say how much time. There will be systems to be put in place. Is this is will need time to make the transition. The clear message that we are giving, and i think this works for britain and europe, edges, no sudden change. Businesses in davos, london, new york, trying to figure out what the ideal situation would be. The Prime Minister was saying she wants a better deal. What does that look like . Recognize that on both sides, there are political imperatives. From the u. K. Side, we can no longer accept freedom of movement. From the european side, they have a position about the indivisibility of the four freedoms in the internal market. We have to work within the parameters defined by the reality of politics to find a trading relationship, a security relationship, cooperation in a broad range of areas, that allows the patterns of business that we already have, the supply chains that operate across europe, to continue to operate with minimum disruption. That is good for britain but also good for our partners. Francine negotiations can be very short. If you have two sides with opposite views and no one is ready to give in, they can be done in six months. I suspect they wont be. We should be able to agree, i think, quite easily on the principles. Working through the detail will take longer. I hope that we will be able to get, between britain and the europeanget, between britain ane European Union, quite early on in this process, a sense of where we are going. I hope we will be able to communicate that to the wider world. The whole process has created uncertainty. That has not been in anybodys interest. The sooner we can give businesses and consumers certainty, the better it will be for the european economy as a whole. Francine thank you so much to the u. K. Chancellor for joining us earlier. Welcome the ceo of sir bank, herman gref. Thank you for joining us here on bloomberg. What is the bloomberg like in davos . Theres a lot of talk about russian sanctions being lifted from the u. S. , possibly a you sanctions being lifted as a followup. Herman a lot of discussions involve the russianu. S. Relations, and according to last year, i think it is more hopes that it is a new president ial administration, we can do more productive relations with the u. S. And russia. That they can get more stability and can resolve our historical problems. Francine how do you view it at the moment . Is it more likely the sanctions will be revealed or are you preparing for extra penalties because of some of the investigations into russian hacks of the dnc . It is a bigink agenda for the new administration. I cant predict how it can be going on, but i think what we can discuss here, now weve had must do, and i think we all we can to realize this chance. On the businesses from the u. S. , europe, russia, they are all united in this position. Us sanctions dont give stability. Francine sberbank has had quite an increase in terms of the market cap. What is your forecast for this year . Can it become the largest Russian Company by market value . I cant discuss these type of goals. We dont have such goals to be the Biggest Company by market cap. Francine are you confident about 2017 . Herman it depends. I cant predict the market situation. Be very2017 will successful year. 2016 was a very good year for sberbank and the banking sector. It is much better than 2015. Our expectations for 2017 is much better, more optimistic than 2016. I think that was a very difficult period of time. 2015, because of changes in the oil price and currency rate and the geopolitical tension, now we can adapted to there new situation. To leave such a difficult situation, but now i we are more stable. Francine how many bank licenses do you think russia needs . The Russian Central Bank has been repealing a lot of them. Will it continue advancing at this right . Do you spend time thinking about these things . Herman i think yes, if you ask me what is my opinion about Russian Central Bank, i can say that they have done very good job. It is a difficult it is difficult for the whole bank system, but we must clean. The banking sector, the financial sector. Be it may be takes two more years, but after that, we can get more stable situation in banking sector, more competitive organization, because now we see a lot of acquisitions in the banking sector. It is hard for us, it is tough, but i think it is the right policy. Francine youve met donald trump. There is debate, which i would like to put the record straight. Was it at a Miss Universe contest, was it not, and what were your impressions of the man who will become the 45th president of the United States . It was nothing with ms. Universe. It was a very good conversation about his nose issues. About this miss issues. Business issues. We discussed a lot of different Business Issues and we discussed about the future. I can say that it was a very productive discussion. We were very impressed about maybe two things. High collaborative habits. It was a very interesting discussion. View,out his professional not about real estate business, but we spoke about financial , and my teaming and i were very impressed. Francine thank you so much for your time. Ceo of sberbank, herman gref. Coming up, we have a great interview for you. Theresa may is due to give her speech in davos, then she will be coming over to our set. That is 4 30 p. M. U. K. Time. Dont miss the interview with the u. K. Prime minister. Stay with us for that. This is bloomberg. Francine were live in davos with the World Economic forum. It is also ecb decision day. Central bank watchers will be focused not for the first time on Mario Draghis language. Lets get to matt miller in frankfurt. What can we expect from mario draghi . A more hawkish tone, perhaps . Matt perhaps, especially after her viewlen confirmed on u. S. Growth and the u. S. Economy is a little more solid than a lot of people would have thought. We saw expectations for a fed increase in may rise up to about 50 on the wirp function on bloomberg and we have a lot more people saying they think may be janet yellen is in the three raises this year camp. That would increase the divergence between the fed and the ecb and maybe you see mario draghi get a little bit more hawkish. Also as a result of the pickup in inflation that weve seen across the european across the eurozone, that could start to worry mario draghi. He could try and jawbone it down a little bit. Francine when is the next actual move expected . According to our survey of economists, there isnt an actual move expected for the ecb until september. That is a long way off. At the last meeting, mario draghi was clear in that he wanted the market to know, or to feel his presence in the markets until that time. Elongated hishe intervention in the markets until 2017 even though he brought it down to about 60 billion euros a month. He said he wants to remain flexible. If you take him at his word, youve got to think hes going to still be paying close attention and in markets until the end of 2017. Right now they want to take more of a wait and see approach and leave the impression from the last meeting intact. Francine thank you so much, matt miller covering the ecb closely for us today. We have a great exclusive interview with the german finance minister and ecb critic, wolfgang schaeuble, at 1 15 u. K. Time. We will cover the ecb announcement at 12 45 u. K. Time, and Mario Draghis press conference in full 45 minutes later. This is what were expecting. Theresa may due to give her death of speech imminently. Joining us is bloombergs exit editor, simon kennedy. Thank you for joining us in the freezing cold. We spoke to a number of ceos from the banking world. We spoke to Philip Hammond. We spoke to the e. U. Side as well. What do Business Leaders want to hear from theresa may . Simon i guess they want to hear a bit more of what she said on tuesday, that shes going to try to look after british businesses based abroad based in london, thanks among them, that shes got a plan to maintain their current level of trade with the e. U. She cant grant that herself. That is something for the negotiations and financiers. Just as she is cementing her plans, they are building theres , to move people out of london. Francine you have to have a pecking order of things you need to be sure you get guarantees for or not. What do we understand about Financial Services . Simon Philip Hammond talking about the importance of finance to the economy, the importance of the government. The government has actually signaled it is going to be one of many businesses we try to look after. Francine simon kennedy, our brexit editor. The Prime Minister just going on stage. Starting her big dallas speech live. Lets listen in. Ms. May thank you, professor, for that introduction. Thank you for inviting me to speak at the World Economic forum this morning. That is,n organization as it says in the very first line of your mission statement, committed to improving the state of the world. Those of us who meet here are all, by instinct and outlook, optimists who believe in the power of public and private cooperation to make the world of tomorrow better than the world of today. And we are all united in our belief that that world will be built on the foundation of free trade, partnership, and globalization. Yet beyond the confines of this hall, those forces for good that we so often take for granted are being called into question. The forces of liberalism, free trade, and, those forces for good globalization that have had and continue to have such an overwhelmingly positive , that haveur world harnessed unprecedented levels thatalth and opportunity, have lifted millions out of poverty around the world, that have bought brought nations closer together, broken down barriers, and improved standards of living and consumer choice, forces that underpin the rulesbased International System that is key to global prosperity are somehow at risk of being undermined. Morninge meet here this , across europe, parties of the far left and the far right are seeking to exploit this opportunity, gathering support andeeding off an underlying keenly felt since among some people, often those on modest to low incomes, living in relatively rich countries around the last, that these forces are. Ot working for them and those parties who embrace the politics of division and despair, who offer easy answers, who cling to understand peoples problems and always know what and who to blame, feed off Something Else too. Thatense among the public mainstream political and Business Leaders have failed to comprehend their legitimate concerns for too long. Out morning, i want to set a manifesto for change that responds to these concerns and shows that the politics of the mainstream can deliver the change people need. I want to show how, by taking a that harnesses the good of what works and changes what does not, we can maintain indeed, we can build support for the rulesbased International System. And i want to explain how, as we do so, the United Kingdom, a country that has so often been at the forefront of economic and social change, will step up to a new leadership role as the strongest and most forceful advocate for business, free markets, and free trade anywhere in the world. For that is the unique opportunity that britain now has. Morning as au this Prime Minister of a country that faces the future with confidence. For a little over six months ago, millions of my fellow citizens upset the odds by voting with determination and quiet resolve to leave the European Union and embrace the world. Let us not underestimate the magnitude of that decision. It means britain must face up to a period of momentous change. It means we must go through a tough negotiation and forging new role for ourselves in the world. It means accepting that the road ahead will be uncertain at times , but believing that it leads towards a Brighter Future for our countrys children and grandchildren too. While it would have been easy for the british people to shy away from taking such a path, they fixed their eyes on that Brighter Future and chose a bold and ambitious course instead. They chose to build a truly Global Britain. I know that this and the other reasons britain took such a decision is not always wellunderstood internationally, particularly among our friends and allies in europe. Some of our European Partners feel weve turned our back on what and i know many fear our decision means for the future of the e. U. Itself. But as i sit in my speech earlier this week, our decision to leave the European Union was no rejection of our friends in europe, with whom we share common interests and values, and so much else. It was no attempt to become more distant from them or to cease the cooperation that has helped keep our continent secure and strong. Nor was it an attempt to undermine the European Union itself. It remains overwhelmingly and compellingly in britains interest that the e. U. As an organization should succeed. Interest that the e. U. As anit was simply a vote to re, as we see it, our parliamentary democracy and national selfdetermination. A vote to take control and make decisions for ourselves. And, crucially, to become even more global and internationalist in action and in spirit too. That is who we are as a nation. Britains history and culture is profoundly internationalist. A european country and proud of our shared european heritage, but we are also a country that has always looked beyond europe, into the wider world. That is why we are among the most racially diverse countries in europe, one of the most multicultural members of the European Union, and why whether we are talking about india, pakistan, bangladesh, america, australia, canada, africa, asia, or those closer to home in europe, so many of us have Close Friends in relatives from across the world. And it is why we are by instinct a great on a Global Trading nation that seeks to trade with countries not just in europe, but beyond europe too. Plan ihe heart of the set out earlier this week is a determination to pursue a bold and ambitious Free Trade Agreement between the u. K. And the European Union. But more than that, we seek the freedom to strike new trade deals with old friends and new allies right around the world as well. That weve already started