>> good morning morning.

this is bloomberg daybreak: europe. these are the stories that set your addenda. china tech stocks away on early markets rally that's been paired to some extent but overall you are seeing upside for chinese market. more support coming from beijing. u.s. treasury yields edge a little lower. the two-year yields currently flat in the session right now. the fed says rates will be lower later this year but insists there's no rush to cut. plus, another big day for european earnings. total energy set to report. we bring you news from the executives including the ceo in just the next couple of minutes. on the earnings story, we bring you the latest print coming through. currently, the top line coming through on revenue for the fourth quarter. there has been a focus around

volumes and the fx impacts. revenues in line with the estimates. a little bit above the estimates. 2.5 3 billion euros. fourth quarter revenue in line with the estimates. the operating income, a bit of a mess. 221 million euros. the estimates have been 229 million euros. they are looking at a full year dividend per share of 1.5 euros. the estimates had been for over two euros. it's a big miss on the dividend per share. in terms of the fourth quarter topline revenue, in line with the estimates. we also want to recap for u.s. when or as well. there were some redheads coming through from the energy company with a focus on oil, gas, and renewables. fourth quarter adjusted net coming with a big miss at 1.8 8 billion u.s. dollars. the estimates had been close to $2.5 billion.

a big miss in terms of the fourth quarter adjusted net for ecuador. they plan to dispute $14 billion and evidence -- in dividends and buybacks. a few more details when you list -- lift the hood on them. total revenue was upbeat. average production also coming in above the estimates. the focus will be on the distribution of cash and those plans in terms of dividends and buybacks coming from that company. again, adjusted net was amiss for equinor. we get you more details on siemens energy. the big focus on the wind turbines part of that business. there have been some challenges there. topline confirming their full year 2024 outlook. siemens energy able to confirm that four-year 2024 outlook.

they do see 2.5 billion euros of proceeds from disposals. of course, this is a company that has faced problems around input costs, labor costs, shortages, inflation. those have all challenged the wind sector in the last 12 to 18 months. there have been the quality issues that siemens has been attempting to address as well. very pleased to say that we are joined by the ceo of siemens energy for reaction to these earnings. president and ceo of the company joining us now. good morning. thanks for joining us. your top take on these earnings and how it positions the company into the rest of the year? >> good morning and thanks for having me. we had a salad -- solid start into the year. i am pleased to see momentum in

all the businesses. we obviously have a situation. on the one hand, we have to continue to drive the energy business outside wind and fix the quality issues particular in wind. for us, the goal is step-by-step. a solid start to the year. we believe the first half of the year is stronger than the second half. this is why we we confirm our guidance. in principle, i have to say the energy market remains strong. throughout 24, this is what we are currently seeing. tom: when it comes to that outlook, are the risks to the downside or the upside? christian: [laughter] we feel very comfortable. for us, it's a question of how selective we are with different projects. we have an order book of 180 billion growing. and we see this momentum

continuing in 24. however, orders to revenue of two this quarter for the whole company. that is something obviously which will go down a little. i think the momentum is still solid and good. so we will feel comfortable with the curtain guidance -- current guidance. tom: in terms of the optimism that demand is coming through for the gas part of the business . in terms of services and tech units. that has proven to be quite strong. then there's the game -- wind turbines part of the business. how does that diversions evolve over the next 12 months? christian: for us, clearly the key focus in wind is really stabilize it, fix quality problems, regain the trust of the market. siemens energy always stands for delivering on commitments. in this regard, obviously fixing

the quality problem is our highest priority. i still do believe on the midterm potential of the wind business. we see in certain areas, the industry is struggling. also clearly, the energy transition without wind doesn't work. we still have to accelerate renewables. making sure we pave the way for midterm growth and success. this is what we are focusing on, which means fixing the wind problems first and then grow from there. offshore is on the ramp up. we are studying up for factories and launching new products. we have to make sure we do this step after step. midterm potential out there with massive potential or -- potential and growth. tom: you've completed that review now into the floors of these turbines. what is the timeframe then in terms of putting the fix is in place? do you have a detailed plan for that now? what is the timeframe?

christian: look, we have more or less completed the technical reviews. we are now refining the repair solutions or fixing solutions going forward. this will take us within 24. some solutions are available already. some we will review to make sure we have the best solution in terms of cost -- cost equality in place. we said it will take us multiple years to implement. we will start discussions with comes -- customers on the best time to do the fixes. a lot of the turbines are still operating so we have some freedom to move that around. we see the biggest cash outflow for the quality issues and 25. that's the current planning. then it will stretch out over years. the current amount of quality cost which we have approved is still our best estimate, seeing the deeper analysis. we haven't seen any new root

causes for the failures. so in that regard, i think we are step after step working through the problems. very clearly, working at awful take a couple of years. -- it off to take a couple of years. tom: does breaking even in 2026 seem reasonable? christian: absolutely. that is something we indicated in the capital market today. we still see the same picture. for us, keeping the market up-to-date with what we are doing. also clearly it will not be within one quarter where everything is fixed. it will take time but we will feel comfortable with what we said on the capital markets back in november. tom: of course, there's a focus from investors on the balance sheet, on the quiddity as a result of the challenges around games. can you rule out an equity raise at this point? christian: the good statement

is, you never rule out anything. i can say we are pleased that we have completed the transactions which brought in a significant amount of cash. you've also seen the good cash performance in the other businesses. the cash usage in wind is per the expectation. in this regard, we are fully to plan and obviously have shown the prostates from the transaction which gives a solid balance sheet at this point in time. in that regard, we are on plan. so far, it's a quarter which is a solid start. no big surprises area tom: you've been clear that the u.s. and europe are key regions for the business now. how is demand shaping up? there have been challenges with impairment charges for the broader industry in the u.s. how are those regions looking? christian: europe obviously is

particularly strong in the grid this quarter. you've seen that they've launched a lot of projects and investment programs on the grid side. i see the u.s. now coming up. obviously we look to investment and factories in the u.s. in this regard. offshore is definitely lower environment than originally was anticipated. not necessarily what we've seen. we've always been a bit skeptical with fast growth. i believe europe will come back next year in terms of the momentum. u.s. is definitely on the offshore side delayed. we see stronger onshore market in the u.s. but as i said, it's more like a delay. it's not going away. the need is still there. but it's definitely later than people expected. tom: the whole industry has been impacted by higher material costs, labor costs. how is that shaping up?

are we getting to a picture that is more resilient now? what are costs looking like? has there been any impact for you and the business? christian: yeah. i mean, in terms of the supply chain cost, it is still a continuous management. pricing is roughly ok. that's the point. as i said, in terms of working through the different methods. however, we also have to be clear that generally, the cost expectation into offshore wind particularly, this will have a certain price. it's products which are not easy, which cost money and we will have to see the final price level. the red sea for us is an area of focus as we call it. we obviously see our shipments rerouted. for us, we are not a just-in-time business. we obviously have some flexibility in the timing.

obviously, it's an area of focus and concern if the red sea corridor will not be open. so far we are able to manage it. something to be watched. tom: ok. really appreciate it. the company reconfirming their outlook for the full year. we appreciate your time on the back of those earnings. plenty more coming up on the earnings front. another really big one and the energy space. energy earnings are coming out at 7:00 a.m. u.k. time. we have the reports coming through from bp and shale. total energies will round out on the energy front. around 15 minutes ago, the details coming through from equinor. on the top line, it was amiss. announcing a big redistribution of cash. we will be getting the earnings from arm, the semiconductor designer. based here in the u.k.. listed in the u.s.

that will be interesting as well. another piece of the semiconductor puzzle as we try to get a better gauge in terms of whether or not that has bottomed, particularly around memory trips. disney earnings facing challenges. whether or not bob iger is going to be able to speak convincingly about the outlook for one of the world's largest entertainment businesses. that earnings print coming through later u.s. time. you can get around above the stories that you need to know through your day by going to today's edition of daybreak terminal. plenty more coming up. we will do a deep dive into these chinese markets as well. there's a little bit more optimism on the policy front. there will be a more determined effort to shore up that economy and show up the markets. but tech in china is taking a big hit, part of that down to the chipmaker smic. plenty more coming up.

this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. happy wednesday. after european stocks edged and hit another 12 month high yesterday, looking to build on that today. a lot of that was down to the relatively positive earnings story. if you strip out the concerns about ubs or the downside that came from that stock yesterday. ftse 100 futures pointing to gains of 1/10 of 1%. s&p futures are currently flat. nasdaq futures also in flat territory. fed officials reinforcing this view that cuts are going to come through later than these markets had expected. we know that traders have been fading out expectations of a cut

in march. let's have a look cross asset as we think about how this commentary has played into the treasury market. u.s. 10 year, not a lot of movement. 4.09 on the benchmark 10 year. euro-dollar at 107. strength coming through for the single currency. the yen interesting given what we are seeing and hearing from pimco. they are convinced that by march, the boj will move out of its ultra list apology and then they think they see hikes coming through from the bank of japan through this year as a result of higher wages and higher pressures on inflation. that debate remains open but that's the view coming through from pimco. brent at $78 per barrel. because to watch the geopolitics as blinken continues the tour as well. whether they can make progress towards a cease-fire. that's a check on your markets. the focus is on china again. more optimism today that the policy response will be more

sustained. you have to look past the pressure coming through on chinese tech stocks. all of that is linked to smic, the domestic chipmaker. concerns about profits there as well. that company has faced sanctions and geopolitical tensions. let's bring in mary nichola to discuss what's happening before we move onto the fed. things for joining us. let's kick off with what we are seeing in china. where do we land in terms of the conviction that's coming through? what are the market saying? mary: we've seen a lot of volatility today during the asia hours. a lot of it has to do with the fact that we are seeing job owning but there's no follow-up coming through. so for the market to sustain a rally especially as we are heading into the lunar new year holiday, we still need that announcement to come through. we still need to see some sort of forceful measures in line with what they've promised, some of the promises that they've

suggested and pledges they've made to come through for us to see a sustainable turnaround in the markets. otherwise, what we are going to see is just a lot of volatility. as we've seen over the past two days. tom: yeah. we have certainly seen that volatility. the csi 300 up 4/10 of 1%. so we switch focus now to another fed official. a lot of fed officials speaking. really suggesting that the dot plots flagged towards the end of last year. three cuts of 25 basis points each. it's pretty much in line. she pushed back the need to cut rapidly. >> it would be a mistake to move rates down too soon or too quickly without sufficient evidence that inflation was on a sustainable path back to 2%. if the economy reacts as i

expect, i think we will gain that confidence later this year and then we can begin moving rates down. tom: can we assume that there's now consensus among the fomc that is not happening in march but the second half is wide open for a cut? mary: i think after the labor market report last week, it really confirmed that the march is off the table. that they are going to have to see significant progress on inflation before they consider even starting to cut. that was evident especially from the pushback that we got at the fomc meeting. of course, it comes through with how strong and how robust the labor market has been in the u.s. economy. unless we start seeing cracks, of course we are seeing some with the new york community banks and some of the issues within the commercial real estate. but at the sign -- same time,

you still have a real focus on the resilience of the u.s. economy. unless we start seeing inflation decelerate which the fed has said that they will be focused on inflation to decide on their cuts, even if the labor market is resilient. next week's cpi will be quite crucial for the markets. tom: we look ahead to next week's cpi. another auction. are the investors out there to absorb this issuance? how much of a test do you expect this to be to these markets? mary: yeah, there might be some optimism out there today especially because the three year auction went well overnight. there could be optimism in terms of the 10 year. we have to keep in mind that the 10 year option as a record option issuance. so there might be a little bit more hesitance there. i think ahead of the auction, you won't see much in 10 year

treasury in terms of movement. but overall, i think what the message is, whether it's from the fed or from east -- these auctions, rate volatility is likely to stay. tom: as you say, not of men on the 10 year. 4.09 currently. no movement in the session right now. thank you very much for the analysis in terms of what we've been hitting -- hearing from the bond auctions and the chinese markets, whether there is sustain confidence coming through for that economy. coming up, kenya surprising economists with an unexpected rate cut. the move bucks the trend across other african economies. we bring you the details, next. this is bloomberg. ♪

tom: welcome back. let's turn to africa central banks. a bit of action coming through. the surprise from kenya, raising its key interest rate to support the currency. a move that was expected by only two of eight economists that we surveyed. uganda kept its rate on hold. joining us for the details is our reporter from can dolly. what disease decisions mean? what are markets making of them? >> the reason why kenya decided to raise its rates is because of the risk of rising inflation. the kenyan shilling gained 0.3%. it has lost 25% of its value. the central bank is trying to rein in inflation which is at 6%. they are trying to bring it down to 5%. we might see inflation continue

to rise, hence we could be staring at another rate hike come april. uganda on the other hand is on a more positive trajectory. they are citing subdued inflation, food, energy at 3.3% which is below the central bank rate of 5%. also, uganda is a country that's also having positive economic outlook. tom: really interesting in terms of a slightly divergent picture when it comes to uganda and kenya. what is the outlook from other central banks? is kenya an outlier? ondiro: well they are likely to take the q from kenya. caution and optimism is the name of the game. south africa chose to keep the rate at 8.2 private percent because they want to content -- 8.2 5% because they want to continue with disinflation. donna was able to bring down inflation but they went ahead to only cut by 100 basis points in order to bring down inflation.

nigeria might have to raise theirflation rate this month when they meet -- rather their interest rate when they meet this month because inflation is at 28% and their currency has lost 30% to the dollar. the economy is in africa are likely to keep their monetary policy tighter for longer because of inflation with currency and geopolitical tension. tom: thank you very much for the update in terms of the central-bank action. coming up, chinese stocks extend gains. we discussed how other markets are shaping up. xfinity rewards presents: '1st and 10gs.' xfinity is giving away ten grand to a new lucky winner for every first and ten during the big game. enter daily through february 9th for a chance to win 10gs. with the ultimate speed, power, and reliability the xfinity 10g network is made for streaming live sports. because it's only live once.

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tom: good morning, this is bloomberg daybreak: europe. these are the stories that set your agenda. china leads asian stocks higher on growing investor confidence for more support from beijing. u.s. treasury yields continue to edge lower. the two-year period's as rates that will be lower later this year, but there is no rush to cut. $14 billion in buybacks, that's as fourth-quarter profit comes in below estimates following a drop in that short. we will be hearing from the ceo later today. let's check in on these markets. there is modest optimism given the gains we saw yesterday. gains of a little over 3% across the chinese benchmark. you are building on that with upside of around 5/10 of a percent. european futures looking to build modestly on the gains that came through yesterday. another record on a 12 month basis for european stocks.

a lot of that is down to the earnings story on the central bank question, there seems to be consensus around caution. that is coming through the ecb saying we must be patient and cautious. and then saying we should be in no rush to cut, we are open to that in the second half of the year, modestly in positive territory. ftse 100 -- nasdaq futures without focus on tech currently 100 futures down to 10th of a percent. that's have a look across asset. another big auction coming through later today. that will be something of a test for treasury markets as they absorb the fed speak. we are expecting a hear from fed speakers later today after digesting what was said. u.s. tenure at 4.09. a little bit of strength coming through for the single currency on the back of softness from the u.s. dollar. japanese yen focus for us at 148. pimco saying the boj will move

in march out of the ultra-loose policy and get to 0%. brent currently at $78 a barrel just up. let's get to the asian markets in the view from singapore with april hong. a little bit of optimism in chinese stocks. msci asia-pacific currency of 3/10 of a percent. is there an expectation that this will be staying, what is unfolding this wednesday? >> i think it depends on where you are looking. if you are looking at the hang seng, underperformance is really coming through. it's a reversal from yesterday where we saw it surged by the most since july last year. csi 300 and the csi 1000, the gauge of small-cap hanging on to those gains. this is a sign of market distortion, given how state funds are at play. but as you say, there is some optimism. the gauge of stocks in the

region is higher. we are seeing a reversal on the chinese government bond performance from yesterday. colleagues at mliv point out yields are headed lower. it is a deflationary environment we are looking at longer-term and china. we have an inflation print due tomorrow that will show the negative rating. let's flip the board and take a look at the jgb futures as well. because the steadying is being seen after that route in the past two sessions in the u.s.. we got a pretty decent 30 year auction. but the bearish outlook for japanese government bonds remains. we had the likes of pimco saying the bank of japan could exit its negative interest rate policy as soon as march and hike multiple times this year. let's take you to the equity movers in the japanese space as we see toyota among those that are on the move.

this is related to earnings move. alibaba under pressure ahead of its results. our analysts say that investors might be overly pessimistic. this stocks surged at 28% after its sales beat estimates in the fast food operators benefiting from changing consumer trends in china. tom: great breakdown of the markets. avril hong in singapore. let's get more detail in terms of the policy response that is shaping up from officials in beijing and bring in the expert that is jill disis, for the view. how much should we expect beijing to double down on support for the markets, support for the economy, can investors take a deep breath and say, finally they are rallying to the cause? jill: i don't really know that we are ready to take that big wrath just yet. let we've had so far are a lot of piecemeal efforts to shore up

the stock market and help the economy on the economic side that came for the foreign policy. there's rate cuts. there's been discussion about new sovereign debt issuance that is up in the air. on the market side you see a broadening of trade restrictions on quantitative hedge funds. we've seen curbs on short selling as well. i think what investors want to see is something that feels more forceful, a little bit more holistic. i think what they are also looking at is whatever outcome there is to be gleaned from this reported meeting between xi jingping and all these other top regulators. i will remind you in 2016, when we were going through the big stock market rout, we got details about what it was like for president xi to meet with them. at one point we reported the time scribbled on a piece of paper, protect the interests of

small and medium level investors enterprises. i don't know what we will see ultimately out of this meeting, but investors want something that feels more big picture here. tom: we probably won't get the details of what he scribbling this time, at least for a while. here's the reaction that will be essential and the reaction of whether this is panic stations from china's leader to have this briefing. the policy response will be crucial. we look at commodities. we look at the miners and we look at the connections between iron ore and copper. demand coming through from china. how that feeds into commodities, how that feeds into real estate. talk about the commodity market reaction to what we see from china. jill: i think at this point there's a couple of different stories that we are seeing commodities. iron ore, we see inventories fall. there's optimism that may be we

are seeing a ramping up in production that will feed through once we get clear of the upcoming lunar new year holiday. at this point, we are just a couple of days away from china going on this week long holiday. we will see manufacturing activity slow down, stop. at this point, there's optimism that stimulus measures are feeding through to manufacturers. maybe that's something that will be registered off of the back of that. i think it might be a couple of weeks before you see how that translates through. that does indicate there is optimism to be had in terms of how this is feeding through into the economy in china. what's also interesting to look at in china right now is go investment. we seen a pretty big uptake in people powering money into gold. some indication that is on the safe haven level that there are still some issues we are watching in terms of hide that -- how the chinese consumer is

not confident in what's happening in the economy. definitely some big things to look out for. tom: that dynamic is fascinating and you and the team have been reporting on the gold purchases ahead of the lunar new year holiday. what it tells us about sentiment across domestic chinese investors and consumers. jill disis with the latest coming through in terms of the policy and what to expect from xi jingping on the back of that meeting with officials around the markets. thank you jill. breaking news, one of the italian banks resuming dividends after 13 years. for years dividend of just a quarter or $.25 on the euro, for your dividend of per share resuming the dividend after 13 years. we will get more on that and bring you more details on the fourth-quarter net income coming in well above the estimates at 1.1 2 billion euros. estimates have been for 339

million euros. at one point, 1.2 in terms of fourth-quarter. that's what's to watch at 8:00 a.m. u.k. time. buybacks are topping the agenda for the oil major. fourth-quarter profit has fallen on lower profits for natural gas. norway's biggest gas company said it will distribute $14 billion this year. we are also waiting for tou thao energies later. bloomberg specialist is with me for some of the details. the reaction from what we have heard from ecuador. let's start with ecuador because this seems to be a pretty sizable redistribution to investors. >> i was on tv earlier mentioning buybacks are the focus for big oil, and announcing $14 billion in dividends and buybacks 32020 four. very significant, especially for

investors because the net income figure came in lower than expectations down 67% year on year. that was to lower gas prices. in those lower gas prices could not offset the contribution from higher production, increase production in the fourth quarter. tom: you have been flagging the buybacks, the dividends, the return of cash to shareholders, is tou thao energy going to continue to think -- going to continue to be the theme? >> we expect an announcement for a $2 billion dividend for the first quarter for tou thao. same as with ecuador, there will be expectation for lower overall earnings that will come in because of lower gas pressures contracting refining margins and low utilization rates from major turnarounds, which is when they close down temporarily for revamping an inspection. energy earnings, the picture has been resilient buybacks with

lower earnings compared to the record levels we could see in 2022. tom: that valuation gap between european oil energy majors and u.s. peers remains significant. the preview of tou thao energy in the reaction and top lines coming through from ecuador. we appreciated. coming up on bloomberg, we will hear from different parts of the commodity space. ceo al cook, that's on the polls, 9:20 london time. more sparkles ahead of valentine's day. at 1:30 p.m., london time. we will get the trade balance from the u.s. the trade deficit did narrow in december. the consensus view is exports rose 2.5% while imports gained 1.3%. 4:00 u.k. time. the feds will make her first speech and joining the central bank's board. it will focus on the u.s. economy and monetary policy. will she join the chorus of fed

officials pushing back on expectations that have diminished. will she build on the view that is the second half of the year as to when the cuts will come through? 42 billion dollars of ten-year treasury notes will be auction. what's it going to be watching out for, make a cap u.s. earnings, including top of my list will be disney, also paypal and uber. there will be no diplomatic ties until israel ends "aggression against gaza." more on that story, next. this is bloomberg. ♪

tom: the u.s. house has failed to pass a 17.6 billion dollar israel aid package. the funding has become tied up in a prolonged political battle over ukraine war in border

policies. president joe biden threatened to veto the matter because it did not include funds leaving most democrats to oppose it. saudi arabia says there will be note the blue maddock ties with israel and in less what it calls the aggression against gaza is stopped. this as qatar's says it has had a positive response with hamas on a potential hostage release deal in exchange for a cease-fire in gaza. i'm joined by dana with the latest. where are we on these crucial negotiations? >> on the hostage front, qatar said it received what are called an overall positive response from hamas on framework to an agreement to release the israeli hostages held in gaza. in a permanent cease-fire in gaza. there were a few remarks from the group as qatar has said, but we saw president biden saying

that those remarks were a little over-the-top. we don't know what these remarks were what the demands by hamas are, but the group has said it needs a permanent cease-fire to agree to any potential deal for the hostages. u.s. secretary of state blinken will be in israel today and discuss the hostage deal and demands from hamas with israeli officials. yesterday we saw bline a joint presser with the qatari prime minister and they both declined to give any details about the dail or the -- the deal or the negotiation saying it sensitive and they hope it would happen very soon. but this is taking a long time in the hope is that any deal now would probably pave the way for a permanent cease-fire. and likely to begin discussions on postwar lousa. tom: as you say, qatar playing the central role -- a central role in those negotiations.

saudi arabia making this, around potential diplomatic ties with israel, conditioning data on an end to what they describe as aggression in gaza. is this a change in saudi arabia's position and it comes to this relationship with israel? >> it's not a change, there is no relationship with israel. this statement came hours after blinken said yesterday that, during his meeting with the saudi crown prince, that the crown prince reiterated his strong interest in pursuing normalization ties with israel, but that there were two things required, enter the war in gaza and the establishment for the palestinian state. the foreign ministry in saudi arabia wanted to make these remarks clears saying we had already informed the u.s. administration that any deal on ties with israel would have to see an end to what they called an aggression on gaza. of course the establishment of a

palestinian state based on the 19 67 border, which might be a little bit problematic given the expansion of settlements by the israeli government. this would be a historic deal for the u.s., for israel and saudi arabia if it goes through. it would be a huge success for u.s. diplomatic efforts in the region. tom: it seems, as you suggest, we are a long way from that given the demands around the palestinian state and the challenges that would face. the latest out of the region. we appreciate it. let's bring you more corporate stories. adam neumann, this is intriguing, another investor exploring offered to buy wework out of bankruptcy. a letter shows he has been seeking information from wework since december to formulate a bid. the co-founder stepped down in 2019 after he -- after going

public. disney's espn is teaming up with fox and warner bros. to launch a sports focus streaming service. it will feature major college seen on traditional tv and will be one third owned by each company. pricing is still to be determined. they are expanding its output in japan with plans to build a second plant, the world's largest contract chipmakers says toyota and sony will be minority investors in the project. the facility will be closed to its existing part in southwestern japan and scheduled to begin operations by the end of 2027. u.s. investigators say january's dramatic midair blowout aboard an alaskan airline boeing 737 was triggered by for missing bolts that should've been secured and should have been used to secure a door plaque. let's bring in bloomberg's danny lee who has been following the story from the outset. what were the findings from this

report, it's just a pre-lim report but the findings were quite startling. >> absolutely. it sees four bolts that should've been on the door panel on the alaska airlines flight almost a month ago that it had this accident where the door was not secured in place, and basically what investigators from the u.s. national safety board have founded so far is that these boats were not in place, the door had actually been taken off or rework and for remedial checks around the door area. the door was put back in place in the bolts were not put back into position. this is leading up to what is still a big issue for boeing. it really puts more pressure on them, the top executives for not having checks in place, quality control checks in place. it does raise questions about can it manufacture plane safely, and do it so with quality in place that is expected from

customers, in particular. tom: so what is next, where do we go from here? >> this is the big question for boeing. right now we still have boeing, which is constrained by their regulator production it has capped, which is strenuous cash levels, therefore it cannot produce more planes of its popular 77 max. it also has to do with its restless workforce who wants massive pay rises, but this is still very much challenging boeing as it tries to boost production and the longer term. right now, it cannot produce a forecast for 2024. also for its key supplier who makes the max fuselage also didn't produce a forecast for 2024. so for both of them, a big challenge. we will have to wait and see as the investigation and the conclusions for this report come out. tom: the latest when it comes to

boeing, danny has been covering this for us from the start of this crisis. for the aircraft maker. let's get back to the aircraft story. this is the redhead crossing the terminal across the danish wind turbine maker. it's a slight improvement in terms of expectations around the margin. they now see a margin of 4% to 6% in its the top end that moves higher. the estimates have been for a top end at 5.11%. investors see potentially a margin hitting 6% -- between 4-6% for 20 24. we will hear from the ceo later today. stay tuned for that story. maybe i'm getting a sense that things are starting to turn a little bit more positive for the wind turbine industry here in europe. stay with us. this is bloomberg. ♪ welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us.

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tom: welcome back to bloomberg daybreak. this is another story need to have on your radar, this is what's happening with regional lenders in the u.s., notably right now, but does this spread. the stock down 60% down to 1997 levels. cut to junk by moody's because it has linked us to real estate. under a week ago they put more money aside for reserves. take a listen, getting attention for the u.s. treasury secretary. listen to what janet yellen has to say. >> concern about commercial real estate. i believe it's manageable, although there may be some institutions that are quite stressed by this problem. tom: don't forget, the challenges around u.s. real estate have linked all the way to japan. one of the lenders there pressured as deutsche's pff over in germany, concerns about their exposure to u.s. real estate.

we have important data coming out in terms of industrial production. the high frequency data out of germany suggesting that maybe there are green shoots coming through for this economy. if you look for the end of the chart, we have seen a three straight month pickup in terms of the high-frequency data, suggesting when you look at things like credit cards, transactions, would you look at things like gdp and think about movements on trains, planes and germany, things are looking more positive as we count down to that data. we will round out the picture for europe's largest economy. coming up, that data paren and interviews on markets today. stay with us for focus on earnings. this is bloomberg. ♪

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anna: this is bloomberg markets today. with the cash trade less than an hour away, here is what you need to know. ecuador's fourth quarter profit falls on lower prices, financial gas. we will hear