francine lacqua joining us in zurich. let's talk to our next guest about what the banking sector looks like right now. 2016 has already been an incredibly difficult start. so, we will get pimco's take. it's a company that runs the world's biggest bond fund. and actively managed bond fund, i should say. we need to talk about those bonds, but let's start talking about what is happening with the banks. very nice to see you this morning. you would've thought looking at how the year started that it would've been the mining stocks, the oil stocks that would've been the most being up -- beaten up. stocks, horrible start to 2016. is that an overreaction? >> yes and no. i think it depends when you look at the globe. in europe, they are operating under a difficult environment. not only banks have been under pressure to raise capital but they also have a negative interest rate to deal with. the news we had so far this year is that negative interest rates are going even more negative. and they might they there for even longer. in ter

francine: i am francine lacqua in london with tom keene in new york. let's get to the first word news with caroline hyde. caroline: austria is not waiting for the european union to come a response to the refugee crisis. they've agreed on several ways to cut off the flow of refugees going through greece. it would limit entry to iraqi's and syrians. the unitedll send nations secretary council a proposal for new sanctions on north korea. the u.s. and china agreed on new ways to punish north korea for the recent test of a nuclear device and the launch of a long-range rocket. the chinese are north korea's biggest trading partners. the white house is ramping up the pressure on senate republicans to vote on a supreme court nominee. the ministration is considering a republican for the job, the nevada governor. republican leaders have said they would not vote on anyone the president nominates. they think the next president should make the choice. now, donald trump is getting can it with the last couple nominee for president. he tweeted that mitt romney lou the

this is "bloomberg surveillance." ♪ francine: i'm francine lacqua here in london. talking to you in new york. let's get straight to the news with caroline. >> francine, thank you. a united nations security county critical want to approve the cease-fire today. it takesal effect at midnight. he 's according to syria's, worked out the deal with the secretary of state. >> as the islamic states were excluded, attacks on them will continue. marco rubio went after frontrunner donald trump in the last time the candidates would be together. before the primary. >> you're the only person on this stage that's ever been work r hiring people to on your projects illegally. >> time only one on this stage who has hired people. >> the u.s. plans to put special operations forces on e front lines with nigeria's boko haram.st d china is -- prime minister leads the coalition government and is trying to become the first leader of his party to win a second consecutive term. and india is about to join an exclusive club. it's had a submarine for decades but now india is close o becoming the

with francine lacqua. is jeff graham. the son of phil gramm. it is nice when you chart your own path. he has done it with columbia and a new book. it is nice to have your book come out at the same time. what is different with the act vism now vs. the history of it? in "dear chairman"? >> i think the main thing that is happening is you have this hedge fund activism. a lot of that has been driven by the complicit behind the scenes, the big institutions. just in the past few months, the big institutions have begun to kind of pull back from that. tom: francine, this is absolutely fabulous. page 208 perfectly dear portfolio shareholder, put us to work to make your stock more valuable. we have bought stock with the present market value of $25 million in the faith that we can. yours truly, robert young. what a time from the new york central railroad to the luck is them out battles in media now. where did the meanness come in? the hit or miss, you, this, we have to get on with francine lacqua, dot, dot, dot. when

i am francine lacqua in london

instead of francine lacqua -- this is not a normal bank report. this is credit suisse, back three decades, with the advent flows of the great swiss bank. here is the total failure of the recent business plan, and the new leg down to 1982 valuations. -- 1992 valuations. that sets up the drama in zurich. i saw wells fargo coming out -- we will show that later -- denied the report that they were interested in parts of this beleaguered bank. francine: yeah. it's not funny, but let's put it in perspective. credit suisse says they had a huge loss. every single division is a little worse than expected in pretax. it's the investment bank people are worried about, so there are questions -- did the ceo do enough? the strategy that he presented in october may not go far enough, and a lot of investors are saying they may not be there target. this is something that he -- he says they will meet their target goals, despite the very volatile environment. >> no question. global markets and investment banking -- they are the ones we control the least. of commentary

i'm francine lacqua in london with tom keene in new york. the most significant news we have had over the last hour is saudi and russia. looks like we may have a floor for the price of oil. tom: we may have an agreement -- it is pretty sketchy right now. javier blas is working on it with bloomberg news. to me, it's a lot of what if. maybe the story will change up in the hour. francine: yeah. we definitely have a freeze. that is why the saudis are talking about the tar minister. now let's get straight to the bloomberg first word news with vonnie. vonnie: in harris, david cameron -- in paris, david cameron failed to win over francois hollande. france heads a group of european nations, unhappy with his proposals for banks in london. the u.k. has no veto power over euro area legislation. an air raid on a hospital in syria has killed eight people. syrian rebels say russia carried out the attack. the hospital was run by doctors without borders. a warning to the president of south korea, saying that north korea will gain the capability missiles unle

. ♪ francine: welcome to "the pulse." i am francine lacqua. we're getting aching news as the pmi figures out of the euro area for the month of january in line with expectations. they fell to 52.3%. breakdown of the the various countries, it germany, that pmi dropping to 52.3%. we were expecting a slightly worse figure. that is interesting. let's get straight to the bloomberg's word news with nejra cehic. nejra: china's official factory gains slow to a three-year low hitting a six month of contraction. the pmi fell to 49.4 in january. the official services index fell while the private pmi surveys signals the industry fell. extended -- since 2008. presidential hopefuls in iowa today. -- donald trump taking a five-point lead over ted cruz. in the democrat race, hillary clinton is at 45%, three points ahead of bernie sanders. syria haveof war in been clouded by triple bombing news and him asterisk -- bombing news in damascus good government negotiate indirectly. the president donald trump left the meeting with david cameron saying there is no deal

. >> let's cross over to francine lacqua. statement and written all over it challenging market conditions favorable market conditions, is the ceo expecting more volatility in 2016? you asked the question, should he have cut the investment bank that'sre russian mark >> one of the most fair questions that we put to him. he responded by saying -- he rationalized that he needs the investment bank because he wants to attract wealth in asia. he think they are linked. the ostrander is also the that link to the investment arm but we know this is the division not geared toward market volatility that we have seen in the last four to five months. he also told me something that i thought was quite significant timetop he said, at the when we spoke to him three months ago, he did not want to give any indication of profits for that division. he said because things are uncertain he wants to keep flexible. ,esterday we all had that rumor up by 5% that they were selling large parts of the investment bank. i try to push him on that and said wha

francine: welcome to the pulse, live from bloomberg's european headquarters. i'm francine lacqua. let's get to their change. and hsbc are trading lower this morning after a surprise fourth quarter we text loss of 858 the lien dollars -- $858 million. june go over, the ceo has been accelerating plans to scale back the lenders of vast global footprint. the euro area is showing signs of its drain from the global slowdown. purchasing managers index for the eurozone fell to the lowest in more than year. it will raise concerns about the health of the region's economy and they also increased pressure on the european central bank policymakers to add stimulus at their next meeting in march. home retail group shares jumped after a takeover of the argos -- it plans argos to make 175 hence i share. that tops a bid from supermarket chain. global news, 20 for a, powered by our 2400 journalists. francine? francine: sterling is giving all the headlines this morning. this morning after london mayor boris johnson backed a brexit. let's it to mark barton. mark: boris has moved the currency market cl

. ♪ francine: welcome to "the pulse." i am francine lacqua. let's get straight to the markets, because we are seeing european stocks are hitting for the longest rebound of the year. that follows the global equities higher. central banks will try to support growth. up 0.4%. nymex crude at 30.6% -- 30.6. this is a crucial week for negotiations over brexit. let's get straight to the bloomberg first work news with nejra cehic. nejra: brent crude has advanced above $35 a barrel above -- amid speculation that some of the big producers will cooperate. saudi arabia's oil minister plans to meet with his russian counterpart later today to discuss the oil market. venezuela may also attend. china's cabinet is said to be accepting lowering the provisions bank must set aside for accepting loans. -- close to the minimum level. new credit surged to a new record in january that goldman sachs says the worth of the credit market is probably over. it is waiting for signs the situation has stabilized so it can place cash back. the magnetism of the yields are also

that was francine lacqua speaking with the ceo of credit suites. still ahead, daimler, the world's second-largest luxury automaker paring back expectations for this year. that news is calling -- is causing shares to drop. we will hear from the company's chairman, next. ♪ betty: we are live from bloomberg's world headquarters in midtown manhattan and in london. you're watching the european close. mark: and i'm mark martin. we are about nine minutes ahead of the thursday close. it has been a mixed session. london, declines in frankfurt and paris. the euro is at its highest level in three months against the dollar. it seems whatever draghi says is not taken on board by the markets. downing, a little bit against the quarterly report. bund yields higher and just finishing off with that euro intraday chart, it has been quite a move. againstn for the euro the dollar which would be the 2011, insteadince ecb did not do as much as expected in december. draghi finding it difficult to do base his currency, buddy. betty: he is indeed. stocks are paring back w

i'm francine francine lacqua appeared less into the markets. let's check in on these equity markets. there is quite a lot of red. we are seeing from a lot of these investors telling us there is risk off of move. the selloff that drove stocks to a two-year low is back on. each of the stocks from the euro 600 down. this follows declines in asia. how much investors want to take some of those risks. financial markets seem to be repricing global growth slowdown. let's get on the second board. this is the price for gold. you can see gold advancing quite a bit here the bank is down 6%. if you look the price of oil. it has been fluctuating a little bit currently. if we have that up for you, it -- let me get it up for you. it is the one we are watching. it was gaining a little bit earlier. whetherainst the main opec and non-opec will come together. there is correlation between a price in the markets. that is what most people are worried about. is it to the bloomberg first word news with nejra cehic. posted -- as well as refining profits to help the it f

i'm francine lacqua. let's check on the markets. we had quite a lot of volatility on chinese markets. the shanghai composite finished the day lower by 6.4%. in europe, the stocks are gaining. they climbed for the first time in about three days on the back of lloyd's gaining some 9.2%. this is after the bank raised its dividend. it is the first time in about five years that the ceo got compensation increase. crude, we will speak about it with paolo scaroni. let's get to the news with nejra cehic. nejra: apple ceo team cook believes helping the u.s. government unlock an iphone used by one of the san bernardino shooters would be bad for america. he explained to abc news why he was fighting the judge's order. >> we know that doing this could expose people to incredible phone or ability. this is not something that we would create. this would be bad for america. it would also set a precedent that i believe many people in america would be offended by. when you think about those which are knowns compared to something that might be there, i

i'm francine lacqua. we have the check in on the markets, and when i did my data for this morning i thought about putting deutsche bank. it's now gaining 10%. european stocks are doing, rebounding from the lowest levels since october 2013. euro stoxx 600 gaining. the banks gaining 3.5%, led by deutsche bank rising 10% after the german bank is considering buying back some of its debt. i want to show you the yen. the yen is so strong it may need more policy action from either the government or certainly from governor kuroda. let's get to breaking news out of italy. figures.ome in terms of some of the data, yesterday it was a little bit disappointing in germany. today, industrial output in italy falling to 0.7% month on month. it is worse than expected. this is the situation we will keep a close eye on. let's get to first word news. anti-establishment candidate, donald trump and bernie sanders have claimed injuries in the new hampshire primaries. sanders one easily over hillary clinton, meaning the democrats

. ♪ francine: welcome to the pulse. i am francine lacqua. let's get straight to the markets. that is where revenues coming from. for the first time in a long time, we're going to start with currencies. 14.pound below sayingchanges investors whatever happens, the pound will go lower. the stoxx 600 down 1%. i want to show you euro-dollar as well. the ecb will have to consider going into more negative territory. we'll get you oil and the right price very shortly. i think that may be copper. let's get onto copper because this is where we see some of the biggest falls overall. get to the bloomberg first reviews with nejra cehic. nara? declinesl has extended after iran says -- was ridiculous. iran's oil prime minister says it is unrealistic demands on his country. should-cost producers bear the burden of the surplus and has reaffirmed the kingdom's commitment. donald trump has won the nevada caucuses. the nomination -- the when makes him the victor in three of the four steps that have voted on the desk for states that have voted on the republican side. 45%.night we had tomorrow you

♪ francine: welcome to "leaders" with me, francine lacqua. pearson is an international publishing company with its biggest businesses in education and books. earlier this year, pearson sold two of its most well known brands, the "ft" and "the economist." in an exclusive interview, i speak with the group's ceo, john fallon, about the impact of selling those established brands and his vision for the company. thank you for speaking to bloomberg. we have been talking about the "ft" sale for as long as i can remember. when did you decide it was for sale? john: there wasn't a single moment. i think it was a progressive process really that i have said all along, and has been important to me, to ask ourselves honestly are we the best owners of the "financial times" for the longer term. pearson have been fantastic owners of the ft for 50 years. i think we have been great guardians of the editorial integrity and quality of the journalism, but we also helped the "ft" to become global, to make the initial shift from analog to digital. but "inflection poi

is an expert on the chinese economy and he spoke with francine lacqua early this morning about chinese stocks, their valuation, and also more stimulus. >> you got a situation where in the emerging markets and particularly in southeast asia there has been a slowdown, so they want to stimulate their economy. these markets are in that part of the world. i believe that they will continue their stimulus program. when theybelieve them tell you that they will not devalue the yuan? >> they are looking at a basket of currencies rather than the u.s. dollar. i think that they were referring u.s. dollar, the not against the basket of their major trading partners. so, what you see is a pretty steady movement against the u.s. dollar downwards. but against a basket of currencies from major trading partners, it won't be very big. francine: do you believe that china has improved its communication? mark: i believe that china is relatively open now and have done a relatively good job communicating. being a command economy, sometimes it's difficult for us to understand the command from the top. those comm

we will have more on bp next. ♪ francine: welcome to "the pulse ." i'm francine lacqua. now, let's get straight to the bloomberg business flash. and ethel that is poised to leapfrog apple as the most valuable company in the world. shares jumped based on strong online sales and tighter control of costs. shares dropped this morning to the lowest level since february 2015, despite reporting fourth quarter net income that beat estimates. disappointed. speaking to bloomberg after those results the ceo said ubs is well-placed to deal with negative interest rates. >> we are getting used to managing a negative rates environment for at least one year, but even more if you look at certain parts of our businesses. we are well prepared to do that and also you see that in the way we manage our deposit base that we are really -- wrieired to manage this kind of challenging environment. home: -- has agreed to buy retail group. the deal combines two of the u.k.'s biggest retailers. the acquisition would be sainsbury's biggest buyer giving it more than 800 stores and an expanded product d

with me, francine lacqua. i do not know where to begin on what we saw yesterday and the complexities of the market this morning. francine: we can boil it down to one word, risk-off. earnings are disappointing. andlook at governor kuroda what he said with the foj, he is ready to do more. it is tough being a central bank. tom: data check -- the yen stronger this morning, speaking to the tensions that are out there. here is vonnie quinn. vonnie: the syria peace talks are close to breaking down. they have barely even begun. people are threatening to pull out unless russia and syria quit bombing rebel-held areas. u.s. mediators are overseeing it and are hoping for a nationwide truce. -- anifying moment rips open a hole in a commercial airliner and a man hurled out of the jet and fell to the ground. hillary clinton is trying to .ase the fears of democrats she is campaigning in new hampshire where the first primary will be held next tuesday. --ders is in vermont and is sanders is a senator from vermont and is favored

i am francine lacqua good let's get to breaking news. we've got europe's pmi numbers. this is interesting as the

. ♪ francine: welcome to "leaders" with me, francine lacqua. pearson is an international publishing company, with its biggest businesses in education and books. earlier this year, it sold two of its most well known brands, the "ft" and "the economist." in an exclusive interview, i speak with the group's ceo, john fallon, about his vision for the company, and the impact of selling those established brands. john fallon, thank you so much for speaking to bloomberg. we have been talking about an "ft" sale for as long as i can remember. what was the clinching factor? when did you decide it was for sale? john: i think there wasn't a single moment. i think it was a progressive process, really. that i have said all along, and it has always been important to me, to ask ourselves honestly, are we the best owners of the "financial times" for the longer term? pearson have been fantastic owners of the "ft" for over 50 years. i think we have been great guardians of the editorial integrity and the quality of the journalism, but we'd also helped the "ft" to be

thiam: spoke to francine lacqua --tidjane thiam spoke to francine lacqua. mr. thiam: it is a tough cocktail. francine: how much total? tidjane thiam -- mr. thiam: 11%. francine: you are expecting a 12 2016. this stabilizes by midyear -- does it continue to be volatile? what our markets concerned about? mr. thiam: we had a long discussion with the chief economist and i agree with him. we have a disconnect between what we see in the real economy .f you look at the u.s. the lower oil prices is good for the consumer. most of the gp is consumption. -- gdp has consumption. the consumer feels good. house is worth much more. he has much more money from the lower oil price, and what is not spending.is that is where the markets come to play -- bigger confidence in the future. there is an overemphasis on the oil sector. if you look at the price of oil longa long of time -- period of time -- decades, we have had normal levels around 100, and 35 is the historic average. to treat the return to the historic average as a major crisis is incorrect. francine: using the correlati

♪ francine: welcome to bloomberg's davos debate. i am francine lacqua. and we are talking china. with the new five year plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have s

. ♪ ♪ francine: welcome to "leaders" with me, francine lacqua. pearson is an international publishing company with its biggest businesses in education and books. earlier this year, pearson sold two of its most well known brands, the "ft" and "the economist." in an exclusive interview, i speak with the group's ceo, john fallon, about the impact of selling those established brands and his vision for the company. thank you for speaking to bloomberg. we have been talking about the "ft" sale for as long as i can remember. when did you decide it was for sale?

. ♪ francine: welcome to "leaders" with me, francine lacqua. pearson is an international publishing company, with its biggest businesses in education and books. earlier this year, it sold two of its most well known brands, the "ft" and "the economist." in an exclusive interview, i speak with the group's ceo, john fallon, about his vision for the company, and the impact of selling those established brands. john fallon, thank you so much for speaking to bloomberg. we have been talking about an "ft" sale for as long as i can remember. what was the clinching factor? when did you decide it was for sale?

i'm francine lacqua. we have the check in on the markets,

anna: francine lacqua has been there, interviewing. we will bring you that here right down on countdown. manus: let us get the bloomberg business. nejra: shares of sharp have surged, after a $5.9 billion rescue plan over a rival bid. the forecaster did not give further details. and last week to make the case for the bid. the company behind pizza hut, postedd taco bell has earnings above expectations, thanks to rising sales at top rebel and kfc. that comes as the company is spinning off this year. gopro has fallen, after the company forecasted well below expectations, boeing a disappointing holiday sales. sources tell us that the jefferies group has cut employees in the fixed income products tiedg on to mortgages. revenue from fixed income tumbled 83% in the fourth quarter because of the energy market route and weakening demand for energy assets. cutting investments to maintain dividends, as the collapse in crude erodes prices, norway's capital its reduce managers to $13 billion, from a revised $14.7 billion last year. it came in at 1.6

i am francine lacqua. tom, when you look at investors trying to assess the risk. you look at yen and you realize this is a haven. do you think of government -- it is theuroda? tom: litmus paper of the morning. later on surveillance, maybe that is the entity of the day. it is a central bank war between the sweden and mario draghi as we begin a mulch was thursday. francine: there are very different assets to that. what do we know about negative rates in the impact? tom: exactly. francine:s get -- let's get to bloomberg first word news with sunny. >> russia rejects the argument consensus --s are are insensitive. john kerry is starting to get -- --trying to get the stalled meets with other foreign u.s. leavesd -- moscow once enough time for forces to crush monarch groups. the biggest u.k. lobby in the u.k., the uk's economy could be thrown off track a referendum on whether to stay in the european union. the cbi cut its forecast by 20%. -- by .3%. the last four armed occupy us say they will turn themselves in today. the fbi seems to be closing in last night. that led t

in london, francine lacqua. i have to admit a little bit of shock and awe in the political world of america. francine: looking at volatility linked to u.s. presidential years, they are correlated at negative rates. tom: of course, on to new hampshire. we will go there and moments for you. right now, to our first word news with vonnie quinn. vonnie: some surprising results in the iowa caucuses. ted cruz one bank the republican vote. democrat hillary clinton edged out bernie sanders. marco rubio did better than expected with 23%. here is ted cruz in des moines. ted cruz: tonight is a victory for the grassroots. applause] ted cruz: tonight is a victory for courageous conservatives across iowa and all across this great nation. vonnie: meanwhile, hillary clinton fails to get a decisive victory in the closest iowa caucus race ever. hillary clinton: i am excited about really getting into the debate with senator sanders about the best way forward to fight for us and america. vonnie: senator sanders held in early-morning

i am francine lacqua in london with tom keene in new york. we're talking about the headache for finance ministers the exclusive interview with the treasury secretary jack lew. tom: i sure david westin will touch with the secretary on the global slowdown. we are certainly seeing that in the markets. also, the idea of is america buffered by the oceans and of mexico and canada? can america stay removed from some of the challenges? thouge markets are on the move s morning. is the world extremely globalized when we see nations such as the usa into u.k. wanting to be more in sealer. -- insular. trump pushes closer to the nomination with a victory in nevada. marco rubio and ted cruz were battling it out for second place. pointsan 20 percentage behind. he spoke at a victory rally in las vegas. mr. trump: if you listened to the pundits, we were not expected to win much. now we are winning the country. in june, the country is going to start winning, winning, winning. announced ons super tuesday more than one dozen states and territories will hold prima

. ♪ francine: welcome to "leaders" with me, francine lacqua. pearson is an international publishing company, with its biggest businesses in education and books. earlier this year, it sold two of its most well known brands, the "ft" and "the economist." in an exclusive interview, i speak with the group's ceo, john fallon, about his vision for the company, and the impact of selling those established brands. john fallon, thank you so much for speaking to bloomberg. we have been talking about an "ft" sale for as long as i can remember. what was the clinching factor? when did you decide it was for sale?

michael mckee -- francine lacqua law. michael mckee is not with me. michael mckee is resting from the denver broncos hangover. so we are mckeeless. francine: he is missed and is probably missing this market rout. it opened in europe about four hours ago and we are trying to get to the bottom of it. all the psychology and the ouriment we talked about probably coming to a front. tom: i like how you focus european banks seeming to be unusually fragile today. we need bloomberg first word news. she plays defense like the broncos, vonnie quinn. vonnie: the u.n. security council is promising to retaliate against north korea for launching a long-range rocket. it carried a satellite into orbit. the u.s. census launches are a for been test. there may be new economic sanctions. german chancellor angela merkel is headed to turkey under pressure back home. she plans to urge the turkish government to make good on pledges to do more to halt the flow of europe's refugees. at the same time, there's pressure in germany to turn refugees away. former president bill clint

with me, francine lacqua. what an interesting weekend as we picked up the debris from the bank of japan action. is alle: negative rates the rage, and it is amazing how used to it we are. we have to understand the underlying reasons. is it because they run out of policy, the bank of japan, switzerland, and others? or is it because of distorted pushing toarkets move money elsewhere? tom: here is vonnie quinn. vonnie: after months of speeches beginndraising, americans choosing their next president. iowans will turn out at nearly 1700 caucus sites to vote. last-minute polls point to victory for donald trump and for hillary clinton. at the showed ted cruz top among republicans. marco rubio: i will be a president for all americans, even the people who do not like me, even the people who do not for for me, the people who say nasty things about me -- i will cut their taxes, too. francine: more than $150 million in advertising money was pointed -- was poured into the advertising campaign. at least 50 people died in a .

. ♪ francine: welcome to the pulse. live from european headquarters, i am francine lacqua. let's tackle the markets. we have a busy day ahead. in the u.s., bonds, stocks are closed for president's day. if you're watching from the states, happy residents day. -- happy presidents' day. on the rise. i'm tishri japan -- i want to show you japan. japanese yen falling for once. let's get to bloomberg's first word news with nejra cehic. nejra: china's yuan surged in the most -- surged the most in a decade. the central bank support the exchange rate. the currency advanced the most july 2005.ations -- hsbc has decided to keep its global headquarters in london, saying the u.k. is an important and globally connected economy. the vote was passed unanimously on sunday. hass these it -- hsbc remained there for 20 years and it is important for both investors and shareholders. say they willders not consider a replacement until after the 2016 presidential election. scalia died from natural causes in texas on saturday. stocks and bomber could a close today. president barack obama will be at

peabody golovin charles joined tomene -- keene and francine lacqua on bloomberg "surveillance" to discuss a big banks. >> i'm not sure i would buy deutsche bank, but financials by is almost -- it really looking for an excuse to be concerned. interest rates are down. i think charles hit the point correctly that people are probably overly concerned about the negative impact of oil on banks. now is probably a good time. tom: what is your single best buy? >> i like citigroup. tom: why? >> i'm buying value as opposed to rates. stable.ue is some things that have buffeted for the last couple of years, are starting to change. the dollar, which has been a head when to book value growth is weakening against some currencies, not against the asian. emerging markets are starting to outperform developed markets recently. the commodities complex is axing better. copper, precious metals, and oil is finding stability around 30. peabody is buying citigroup. i am in all. francine: when you look at deutsche bank, does it survive, or are they about to get a new shareholder in the form of the german taxpayer?

the company's cfo peter beaven joins tom keene and francine lacqua earlier today on "bloomberg surveillance." we've been in oil since the 1960's. we have made a huge amount of value for ourselves. we have a very good operating capability with some of the best resources both onshore and offshore oil. and guess. -- gas. that has worked very well for us in the past. all prices will recover before -- with that capability, this is going to be a fantastic business press. tom: this is critical. if you get oil to do your strategy, cannot support the dividend and actually true dividend growth? >> absolutely. it's all part of it. all of our businesses in .ombination are critical what's important is that we would see that oil will recover first, then copper. then you will get into a sort of the bulk materials. we have altimately very strong position. diversifiedl portfolio. business that generates capital into the next. that's the essence of why diversified portfolios work very well. cuts,ne: given dividend do you still have opportunities to buy? there are assets on the market that are valued at a ver

he spoke to francine lacqua. >> it is a tough cocktail. >> how much for bonuses? >> more than 30%. tough are expecting a 2016. this stabilizes by midyear, what our markets concerned about? >> we had a long discussion yesterday. the economy is ok and markets are not. we really have a disconnect about what we are seeing in the real economy. >> sharpe says they are talking to the state act fund and may -- state-backed fund and may need another month to make a decision. >> this would end up being a huge acquisition. sharpe, they have five or six businesses. i cannot imagine anyone wanting to own any of those, and the evidence is in front of you. it is nearly bankrupt. they are losing a ton of money. first something that pays so much, it does not pass my test -- you are acquiring mobile businesses. your biggest customer is apple. >> what is your solution to all of this? i think you mentioned in your notes, you know this is balance has gone on for three years. we see that the president indicated he doesn't want to break up the company. >> it is not in his hands. he is one of the four pre

welcome to "the paul's," live from london, i'm francine lacqua. european markets -- little changed after drops. let's check in with mark barton. mark: let's start with the stock xx 600. lower, higher, coming down once again. we fell by 4.8% last week, easily way to get the gains of the prior two weeks, amounting to 3.8%. still, the index is down by 11% this year, one trillion euros, on track for its worst year since 2011. the macro highlight of this week is janet yellen, appeared before congress. she is going to have to strike, francine, some sort of balance andetween caution confidence, but the domestic economy is in good shape after those jobs numbers on friday. this is the interest rate projection, fed fund futures now saying we will see a 53% chanc e of a said rate hike in december -- chance of a fed rate hike in december. this is thursday's figure, below 50%. there is now more than a 50% chance that the fed will raise rates in 2016. we have the economy adding 151,000 jobs last month, average earnings rising the most in a year, which has got p

francine lacqua would normally be in the seat, but she will be joining tom keene in new york for "surveillance." that inflation data is about to drop, and they will be covering that. have a great rest of the trading day. ♪ francine: g-20 underwhelmed. china stocks tumble for the 15 month low after the pboc failed to buy back stimulus and raises its risk options. zero inflation expected a flatlined -- we will receive the numbers for mario draghi. and angela merkel warns that greece needs europe's help to deal with the influx of refugees. the next greek crisis. keene, new york with tom and we are getting some huge inflation figures.

in the meantime, we will hand you over to francine lacqua and "the pulse." ♪ francine: global markets run red. asian stocks lower. oil trades around 30. u.s. 10-year yield is close to a record low. markets but the odds of a fed rate rise at less than 50%. chem china offers $43 billion for syngenta. the country looks for way too feed the world's biggest population. so, welcome to "the pulse

i'm francine lacqua. now let's take a look at the markets. this is what we are seeing on the board. yen strengthening past 1.15 per dollar. stoxx europe 600 opening lower. 9.5%che bank losing yesterday and now gaining 3%. japanese yen at 115. i want to show you the 10-year jgb, negative territory. this fell below zero. if we look at some of the other banks overall this stoxx europe 600 bank, unchanged. the nikkei finishing the day 5% lower. man and dust unexpectedly fell for a second monday in december. -- unexpectedly fell. even as domestic demand remains strong. the median estimate had been for a .5% gain. goldman sachs expects the reserve to increase rates to 1.3%. goldman says it sees above trend u.s. growth and predicts a gold rally will go into reverse. in germany say four people have been killed and 100 injured after two trains collided. the incident happened near a area.n the bavaria thank you. with some of the news you need to know about. the stocks 600 just erased this morning's losses. mark: i want to start with the msci all country world index. this is a one-year chart.