Live on Bloomberg TV

00:00TWO DIVERSE INTERESTS. TECHNOLOGY, YOU ARE HOT TO JOBS. YOU SAID YOU ARE FED UP WITH PEOPLE TALKING ABOUT A TRUMP TRADE. I AM PARAPHRASING, BUT YOU SAID THE IGNITION FOR RENEWED ENTHUSIASM WAS ALREADY THERE, SO THE FOUNDATION TODAY WILL BE HIS FIRST JOBS REPORT. WHAT IS IMPORTANT TO YOU TODAY AND THIS WEEK? >> I THINK THE MOST IMPORTANT RELEASE IS THE PMI IN EUROPE. THEY INDICATED THINGS ARE STILL IMPROVING. ON TRACK TO BE SATISFACTORY. EVERYTHING WE ARE SEEING IN BOND MARKETS AND INFLATION SWAPS, PICKING UP AS WELL. I THINK THAT IS THE MOST IMPORTANT THING FOR US. ANNA: WHEN YOU LOOK AT WHAT IS HAPPENING IN THE UNITED STATES, THERE HAVE BEEN UPSETTING PARTS TO SILICON VALLEY. A LOT OF FALLOUT BETWEEN THE TWO. JUST LOOKING AT HIS PLANS AS WE KNOW THEM SO FAR, WHAT IS IT THAT HE IS DOING THAT IS GOING TO HAVE THE MOST IMPACT ON THE UNIVERSE THAT YOU LOOK AT? IS IT AROUND IMMIGRATION OR OTHER POLICIES? MARK: I THINK THE MOST HEADLINE GRABBING POLICY IS AROUND IMMIGRATION. IN TERMS OF THESE COMPANIES GETTING THIS HOW IT THAT THEY REQUIRE -- TALENT THEY REQUIRE. WHEN THEY ANNOUNCED WE ARE NOT GOING TO SEE AS MUCH OF AN ISSUE AS THE MARKET FIRST THOUGHT, IT IS ALL ABOUT DEREGULATION WITH TRUMP. IN THE CASE OF TECHNOLOGY, PEOPLE HAVE BEEN TALKING MORE ABOUT REGULATION. ON SOME OF THE -- SOME OF THE BIG TECH NAMES LAST YEAR, AMAZON, FACEBOOK, BROKE DOWN 10% AFTER TRUMP WAS ELECTED. I THINK THE REGULATION WILL BE LIGHT TOUCH. MANUS: FROM CEO LEVEL, THE STAGE IS SET FOR -- I AM BEING GENEROUS, -- A MODERATE LEVEL OF CONFRONTATION AT THIS JUNCTURE. THEY ARE NOT BEDFELLOWS AT THE MOMENT, ARE THEY? MARK: THERE ARE NO BEDFELLOWS IN TRUMP'S PROCESS AT ALL. HE IS VERY ADVERSARIAL. HE IS NOT GOING TO WANT TO UP STEP BACK, THOUGH. ANNA: COMING BACK TO THE EUROPEAN SIDE OF THINGS, WHERE ARE YOU FOCUSED IN EUROPE AT THE MOMENT IN TERMS OF YOUR EQUITY STRATEGY QUESTION MARK SAYING EUROPE IS UNDERVALUED COMPARED TO THE UNITED STATES. STEPHEN: EUROPE IS TRADING AT A DISCOUNT. PART OF THE EUROPEAN PROFITABILITY, IT HAS BEEN UNSATISFACTORY FOR SEVEN YEARS. THAT HAS BEEN FUELING EARNINGS RECEPTION. FINANCIALS WERE UNDER PRESSURE, THEN YOU HAVE COMMODITIES AND ENERGY. AT THE MOMENT, WE SEE A RELATIVELY SUSTAINED RECOVERY ACROSS THE WORLD. YOU ARE SEEING A PICKUP IN GROWTH IN EMERGENCY MARK -- EMERGING MARKETS. THAT IS A VERY GOOD BACKGROUND FOR PROFITABILITY. WE THINK PROFITABILITY CAN RECOVER AND THEREFORE, WE ARE TRYING TO PLAY THAT TO AREAS OF THE MARKET WE EXPECT ECONOMIC GROWTH. CLASSICALLY CYCLICAL THE QUIET YOU HAVE THE CYCLICALS OUTPERFORMING RELATIVE TO DEFENSE, DOWN 8%. CYCLICAL ON A TURN HIGHER. DOES THAT PERPETUATE QUESTION MARK IS NOT ALREADY PRICING IN THE PMI QUESTION MARK -- PMI QUESTION MARK -- >> IF YOU LOOK AT WHERE THAT CAME FROM. THAT IS THE POINT AT WHICH CYCLICALS AND FINANCIALS START TO MOVE. A TURN UP SHOWS SUSTAINABLE PICKUP IN GROWTH. I THINK TRADE WILL HAVE FURTHER

No schedule data available.

BTV Channel FinderWatch BTV in your area

GAM: Trump Will Manage Relationship With Silicon Valley

Stephen Macklow-Smith, head of European equity strategy at JPMorgan Asset Management, and Mark Hawtin, investment director at GAM, discuss European PMI data, which of Donald Trump's policies will have the most impact on Silicon Valley and their investment strategy for Europe. They speak to Bloomberg's Manus Cranny and Anna Edwards on "Bloomberg Daybreak: Europe." (Source: Bloomberg)

More From Bloomberg Daybreak: Europe
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips