FTSE 100 Peak Prognosis And Ballooning Tensions

and Solomon's DJ gig leads to bloodlines for Goldman. Those are the stories we're looking at in today's newspapers, and I'm Leanne Garon's plus a Tale of Two Cities. We sit down for an exclusive chat with the Lord Mayor

of London and the Tokyo Governor. That's all straight ahead on Bloomberg Daybreak Europe on DAB Digital Radio, London, Bloomberg eleven three oh New York, Bloomberg Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, cyrus XM Channel one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business at Good Morning. I'm Stephen Carroll and I'm Caroline Hecker. Here

are the stories that we're following today. The foot one d is heading into the week, having hit a record high on Friday, but the outlook for the future is less rosy, as Bloomberg Samuel Etty and reports. On Friday, the UK's blue chip index finally rose above its eighteen peak, but it's still lagging behind over benchmarks in Europe, China, and the US so far this year. In two higher oil and gas prices helped boost energy giants BP and

Shell and lift the foot see one overall. Longer term, though, the UK benchmark is virtually flat in dollar terms since the twenty sixteen Brexit vote, while markets elsewhere have seen significant gains. Paris overtook London is Europe's largest equity market last year and remains firmly in the lead in London

and samue Letien Bloomberg Daybreak Europe well now. The feds December dot plot remains a good signal of where rates are headed that according to the Federals A Bank of San Francisco president Mary Daily, speaking to Fox Business Daily had this to say on January's Red Hot jobs reports. The number today on the jobs report was a wow number, but the trend was not surprising. We knew that the labor market was strong has been strong despite the fact

that the economy overall has been slowing. And so right now I see the December sep that we had in our last meeting back for the two is being a good indicator of where policy is at least heading. But I'm prepared to do more than that if more is needed. Mary Daily does not have a vote at this year's rate meetings, however, have you will add weight to market

expectations that the hiking cycle is knowing it's end. The US economy added five hundred seventeen thousand jobs at last month, pushing the unemployment rate to a fifty three year low. The United States has sent divers to salvage what they believe is spy equipment from the Chinese balloon shot down

off the coast of South Carolina. The balloon was down by an American F twenty two fighter jet on direct orders from President Biden and Our Tangan, senior fellow at the Chinese think tank the Tiger Institute, says it's hard to understand what strategic advantage that Chinese expected to gain from using the balloon. From the face of it, it

doesn't seem like a very good message. You can't really figure out exactly how China would get ahead by sending a balloon that's the size of three buses and clearly visible to the American public. It's not going to help relations or anything like that. And a Tangan spoke to Bloomberg as China continues to insist the device as a climate research airship, that's straight off course, however, of the U s argues it's part of a broader spying program

by the country. Now, the Lord Mayor of London, Nicholas Lions, and his Tokyo counterpart, Governor Euriko Koike, have been making the case for closer ties between the two countries financial hubs. Speaking exclusively to us here on Bloomberg Daybreak Europe, Lions sought to downplay the threat to London from continental Europe in terms of the threat to London as a global

financial center from what's happening in continental Europe. That we we encourage competitiveness, what is happening in continental Europe will only make us stronger. You will see that in Frankfurt, or in Paris, or in Absterdawn, or in Dublin or in Luxembourg, that there is an aspect of financial services where there as real expertise, but nobody can compete with London in terms of the whole ecosystem. That is just

not replicable. So the Lord Mayor of London. While he also told us that the City of London has been able to replace the seven thousand jobs lost since Brexit, uk Kik added that closer ties between the UK and Japan are down to both economics and strategic concerns over China. The board of Reno has signed off on a deal to rebalance its troubled alliance with Nissan and Mitsubishi. Under the agreement, to the French carmaker will reduce its ownership

of Nissan from forty three to fifteen percent. The rest of the current shareholding will be putting a trust which will be slowly sold down. Representatives and the three companies will hold a news conference in London later to announced details of the plan. A hundred thousand nurses and ten thousand ambulance staff in England are expected to strike today and what's thought to be the biggest walkout in NHS history.

Members of the Rawal College of Nursing at Health Trusts are taking action along with GMB members at seven ambulance services. Both unions are demanding pay talks with ministers, saying that the government could have prevented the strikes. Business Secretary Grant Chefs says that the government is bringing in new anti strike laws due to the lack of corporate and from paramedics. That leaves the army who are driving the backups here

in a very difficult position of postcode lottery. If it comes to having heart attack or a stroke when there's a strike on, we cannot have that situation and that's why I'm introducing laws for minimum safety levels. So that was the business sexually Grant Shaps. Meanwhile, a second day of nursing strikes will take place tomorrow. Those are top stories this morning. Look at another very difficult week I had for the NHS. If you're looking to try to

get doctor's appointments, things going to be very tricky. Yeah, absolutely. Acclauding to the Bloomberg calculations, at least fifty five thousand appointments are likely to be delayed just by this week's action. The Government's in a very difficult position are the Raw College of Nursing. The RCN has backed away from the kind of pay wise it once, but it doesn't seem to be any way forwards at the moment some of

the negotiations with government. Another story that cat my eye this morning is to do with the housing market here in the UK. Mortgages set for their slowest growth in twenty eleven as we see the house prices. This is research from the accounting from e Y Are College. Greena and Gallas written up the story on the Bloomberg terminal look another symptom of what we've been talking about for so long, falling house prices and now it's having a

knock on effect and borrowing. Yes, Although in that e Y research what I found interesting also was their stats on business lending also expected to fall significantly obviously higher debt, servicing costs, lower earning, supply chain snarls. Yes, there's still a problem according to e Y. So you're also going to see business lending drop this year. Up next Trust on the comeback trail, astro Zenica calls for increased investment and Solomon's dj gig leads to blurred lines for Goldman.

Now the paper review on blue Bird Daybreak Europe. The news you need to know from today's papers, Bloomberg, Ley and Gerrans joins us Now. The headline in the Telegraph says Liz Trust set to rignite China route in fresh challenge to Rishi Sunac. The GERANs March of the weekend spent pouring over the attempted came back by the former PM.

You're absolutely right, Caroline, and I have the Sunday Telegraph with me, and she broke I've got it right here in the studio wrestling yes and yesterday she broke her silence, Caroline with this four thousand word essay in the newspaper Now she defended her tax cutting agenda, that course the economic turmoil we saw in this country during the mini budget,

and she also criticized Richie Cenac. A line that I picked out from her essay in the paper yesterday says she criticized Whitehall strength of economic orthodoxy and its influence on the market, and condemns Treasury officials for blindsiding her over the collapse of the pension market, which did proceed her resignation show she's standing resolute. She said that the MPs weren't behind her, and of course she said that

she was brought down by the left wing economic establishment. Now, moving on from that, we actually expected to see Liz Trust today on camera for the first time since her resignation. She'll be giving an interview to the Spectator magazine now that will be broadcast on YouTube, and the former PM will warn that the threat posed by Beijing has not

been taking seriously enough. And this is, as you say, Caroline, she really continues her return to the political fray and this is set to re ignite around between Trust and soon Act. We saw this on the campaign trial who would take the toughest stance against Beijing? So strong words there from Liz Trust over the weekend. I think it's

just very interesting the level of reaction. It's the speed at which Liz Trust is trying to rehabilitate her record poor by anybody's standards, you know, fantasy, delusional, These are the kind of words that you see in other newspapers like The Independent and The Times on what she's saying. You know, it's only a few months that she left office. Yeah,

hard to believe. As you say, the timing is very tightly and let's turn into a story in the Times next Astra Zeneca UK losing out on investment in life sciences research. Yes, indeed, Stevens so Tom Keith wrote. He's the president of Astra Zeneca right here in the UK and he's told the Times newspaper the company has not made new research and development capital investments in Britain since

twenty twenty one. He also warned that wider research and development spending in the country could also now be at risk. And this is due to uncompetitive fiscal environment, is what he calls it. So speaking to the Times, he has concluded that the UK is losing out on investment from astra Zeneca, and that's two more competitive countries. A wildly out of line NHS sales tax, he says, as a real particular concern. Now the foot see one hundred company increased US R and D spending to two point five

million back in twenty one. So once again we see the fiscal environment affecting investment here, according to Astra Zeneca speaking to the Times newspaper. Okay, interesting. Just lastly to New York Times, the blurred lines between Goldman CEO's day job and his DJ gig tell us more so, we all love this, don't we. David Solomon, the chief executive of Goldman Sacks. We know that he's been spinning records for years, hasn't he outside of his job? But he

has now actually hit the remix jackpot. After meeting this high flying US industry music executive that's Larry Mestel, Solomon got the chance to put a new spin on one of the most danced like dance two track sever I must have met I've danced this for years, Whitney Houston. I want to dance with somebody who loves me. And Solomon told senior Goldman Sachs executives. And he does donate any profits he makes as a DJ to a charity. Remember he's an amateur GJ, so he's not even really

the big time. Sorry if you are listening, but do not if you look at the size of his gigs. Anybody who's seen the DJ numbers, you might not call it. Yes, it's not the back garden. No, it's Habitha. That's where he normally DJ. Is not the back garden, Caroline, Let's remember that. But he has been slightly criticized in this piece. And this is all over the blurredlines between his day job as the Goldman CEO, and some employees have helped

him manage his DJ schedule and also his donations. And this is according to three people who have worked with him. And also what have he got that remix if he was just a normal amateur GJ. So this is what the piece in the New York Times is really focusing on and arguing. Okay, fascinating stuff for the Anger, and thank you very much for that review of the newspapers. Well, let's move on to talk about a bit about the equity markets here in the UK. We have hitting a

record high and trading on Friday. What does the future hole though for the UK's Benchmark Index member uk Starts reported Joe Eastern as with as in studio, Good morning to you, Joe. So is this keep climbing? I think

potentially could keep going up with the broader market. But according to the people that we've spoken to for the piece we've got on the website today over the weekend, and they kind of think that the outperformance could start to fade now and we might have seen the peak in you know, some of the energy prices, some of the defensive trades have benefited the index, and people might start looking elsewhere, taking a bit more risk and going to the US, going to uh maybe even the FIR

two fift. So I think the outperformance potentially coming to an end um. But but yeah, I'm trying to think of a way to bring in some DJing puns. Think of anything in terms of the performance of the index in recent years compared to markets elsewhere, I mean, is it's defensive and this is the environment that it should

be doing well in? Yes, I think so. I think that what we've seen obviously in the past few months is the interest rate expectations coming back down and then the broader market you know this the European markets now in a ball market, as they call it, up twenty since the low. So potentially people are looking to take more risks. And we've spoken to black Croc in the piece and they're saying that they don't think that the foots one has has meant much legs as it had before,

and they're looking elsewhere. And I think, particularly given the way the energy markets looking, I think that could start coming down and that would be a negative for the index. You draw this comparison the piece to the trajectory since Braxit in terms of dollar terms, and we look at us at the spire, the banks about European indexes and the foot see as well. How much of this underperformance that we saw in recent times be can be attributed to Braxit or what? What is the link that you've

drawn in the article. Some of it is to do with Brexit, but obviously something we talked about a lot is how around seventy five percent of the revenue comes from abroad. And the FIRTE one hundred actually underperformed since about twenty twelve, so since basically the back end of

the financial crisis, it started under performing. And that was because everyone got obsessed with growth stocks, like you know, tech stocks like Tesla and Google and stuff like that, and the foot see one hundred doesn't really have much big tech. We do have listed tech in London, but it's the small cap the mid caps, it's not in the foot see one hundred. So people avoided the foot

see one hundred. And then when interest rates went up, the discount rates and some you know, technical things that analysts look at made tech stocks less attractive and they fell a lot, so the foot see one hundred fell by less. But then Brexit came and added to the woes for you know, the proportion of the revenue that comes from the UK economy. Okay, just really briefly then f Fittzee two fifty. Ravens cross c Io was in last week saying actually reverse two fifty is that a goer? Yes,

because it's more cyclical. So I think that as people are getting slightly more optimistic on the economy, the foot see two fifty looks more attached to what's happening in the economy, and it will. It will move in tandem with the economy, whereas the foots does its own thing, is in its own little world. But the foot two fifty is a better way to track the economy higher. This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Streets and beyond.

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