30 minutes and a lot happening in europe. caroline: today of course we are going to be watching the fallout from the inconclusive spanish election outcome. stocks, lower. bonds, lower. the european close is up now. betty: we are going to take you from new york to london to spain in the next half hour, and caroline, kick things off for us . a mostly down day in europe. caroline: keeping up international as ever, and once again red across the board. remember how red it was on friday? we lost 100 billion in terms of valuation of stocks. today, it is all about political

instability, particularly in spain after the inconclusive election over the weekend. nearly every single stock lower. iag just clinging onto gains, up 1/10 of 1%. banks lower, infrastructure lower, oil lower. i want to show you the spanish 10 year. rising nine basis points. betty: tech stocks are also on the up, helped why this deal between ericsson and apple. actually, one of the only key areas of growth was technology. we saw 1.25% gain in terms of technology, but i want to check into the real one that was moving, it was ericsson. up 3.8% because of the deal with apple. a long and bitter battle had been going on, but finally a deal is struck. they are going to be working

together, cooperation going forward. that is why analysts and investors like us. back with you be to check more on the european markets. let's check in on the bloomberg first word news, courtney donohoe has more. courtney: lindsey graham is dropping out of the race for the white house. the republican senator from south carolina announcing his decision on his campaign website. he was never able to gain traction in the polls. police say a woman who rammed her car into a crowd did it intentionally. one was killed and 37 were hurt after pedestrians were mode down on the las vegas strip. the driver was a woman in her 20's, and she is being tested for drugs and alcohol. the man suspected of buying the rifles used in the california

massacre is expected to enter pleas today. the court hearing will be the second for 24-year-old enrique marquez. he is fighting weapons and terrorism-related counts. convictions could carry a 35 year prison term. authorities say he is legally bought the assault rifles used by his friend and his wife to kill 14 people in san bernardino. the couple was killed by police. biggestew hampshire's school districts is closed after officials received a threatening e-mail. nearly 12,000 students are staying home today in nashua. school districts received threats last week. at cape canaveral tonight, spacex's scheduling the first launch since an explosion destroyed and unmanned market months ago. after liftoff, they will try to

land their rocket upright on an ocean platform, and hope one day to make rockets as reusable as airplanes. is boosting its housing operations and moving further away from consumer electronics. it is acquiring u.s. refrigeration's maker huffman for $1.5 billion. panasonic says it will purchase it and make it into a wholly owned of steady year he. -- subsidiary. that is a look at our first word news from the bloomberg first word desk. betty: thank you so much. just a quick mention, we are just about to lose all of the gains we have seen this morning here in u.s. stock. the european close continues. ♪

betty: -- caroline: welcome back to bloomberg markets. i am caroline hyde. betty: i am betty liu. viewers howow our u.s. stocks are doing in the last 10, 15 minutes. we basically went sinking, erasing most of our gains. the dow erased all of its gains of 143 points from this morning, and now we are covering essentially at the red line. we will continue to watch how u.s. markets trade. another big story is in europe with the spanish election. you are right. nearly every single industry drew -- group dropping in spain. actually stoxx 600 falling lower in the last six hours.

we want to dig into this more. we want to talk bigger applications with an -- .mplications for step --through the next steps for spain. all of this is related to -- political instability, the fact that we do not have a majority government. will we over the next few weeks? .ntonio: we shall see i think we certainly have seen uncertainty in the political outlook. two new parties who will play an important role. you were asking about the next steps. the parliament resumes mid-january so now there is a break in the key parties, especially the largest party. to reach out to the other

parties and see what kind of agreements can be achieved. only mid-january it will be the first session in which the , andnment will have to they will have the first shot. it seems that we are heading for otherrity, either by parties including the socialists. caroline: give us the worst-case scenario. why are we seeing such a selloff for utilities? what policies are they fearful of? in terms of bad or since no oneos, has the majority. new elections have to be called off two months following the mid-january kickoff of parliament.

the potential is that you go into new elections. alternatively, some concern is about whether some of the radical policies will make it into the next government. some of the reforms that were put out by the current government could be actually rolled back. one is the potential for an uncertainty,od of or the second one, they roll back some of the reports. betty: what if there is no policy action? is that the worst thing that could happen to spain, or could the country just live with a little bit of inaction? antonio: i think the no policy action is not such a terrible outcome. there has been a series of reforms rollout of the last four years.

remember, you still have a lot of action from the ecb. probably the country that is helping the most around the yardage -- large euro area is spain. the no policy, or no domestic policy action is not a terribly bad scenario. betty: is this going to have a wider effect on the eurozone? antonio: well, there has been a series of cases. , portugal, where there is an alliance of left parties. you have spain, and if spain were to take steps in terms of rolling back, you have sort of a growing political problem in europe. you were going into municipalities in italy next year, so potentially it could be

the beginning of a trend of political instability in europe. spain has started to become more of a positive new story. talk to us about where you see growth for 2016. what is the most positive outcome and what is the most negative? antonio: as i mentioned before, the big wins are certainly helping spain. for this year, the growth will end up about 3%. we are already in the fourth quarter. we see no indication of acceleration so the economy is doing fairly well. we expect growth similar to q3. for next year, think about international trade weakening and the domestic demand for trade is strong. the downside is this uncertainty could create some delays in

investments, and that is where some deceleration you could see in the second part of the year. for now, the near-term trends are very strong. caroline: antonio garcia pascual, lovely to have you on the program. betty, let's take it back to u.s. equities. opened with a pretty nice rebound and continued to climb but just within the last half hour or so, we pretty much lost all of our gains. the nasdaq has held on the best. i want to get to abigail doolittle live with more. : let's take a look at two winners. , tradingo technologies nicely after rbc upgraded the stock to topic from outperform.

rbc sees abaco is a top core holding for 2016 and thinks holdings could grow by more than 60% for 2018. the newest price target of 170 suggests the stock may climb higher by about 20%. another winner is alphabet, shares are trading harder -- higher. betty: abigail, thank you. abigail doolittle live at the nasdaq. coming up, it is the battle of the charts. caroline: this is my debut, betty. i understand i will be taking on none other than drinking really -- brendan greeley. we are going to be talking about it next. i have a chart showing how oil

affects at the next. ♪

betty: live from new york and london, this is the european close. i am betty liu, here with caroline hyde. time for the bloomberg flash, the biggest stories in business news. they have paid apple --

what they concluded, apple has engaged in a sophisticated scheme to pay little or no corporate taxes on $74 billion in revenues overseas. >> that is total political crepe. there is no truth behind it. betty: cook thinks the u.s. tax code needs to be fixed, and says charging apple 40% to bring the money back would be unreasonable . a court hearing set for today will consider whether sumner adstone should undergo psychological evaluation. a court ordered evaluation of -- redstoneold control cbs and viacom. beener huge story we have watching today is the ongoing slide in oil prices from brent

particularly. caroline: we cannot catch any ,reak when it comes to oil brent crude slumping to its lowest price in nearly 11 years. that is amid speculation that it will exacerbate a glut that they are fighting for a the moment. it is all about production and does not seem to be about price. will kennedy joins us. why does desire to keep on pumping? will: people who have already invested need cash, and if you stop pumping, he stopped the cash. here, it is warm warm in new york, it is warm and northeast asia. and that isssing really helping this bearish atmosphere. caroline: sort of a perfect storm. how much lower can we go? is there a point where it

becomes just so untenable in terms of profitability that they do start shutting off? will: yes, but i think we are quite some way off of that. people like goldman sachs have been talking about $20 oil over the winter. that is a possibility, but i think oil will have to be a lot lower before they turn off the taps. caroline: in terms of where we are starting to see it, what goes first, what is easiest for the companies to start raining back on? will: clearly u.s. shale. i think a lot of that production at the moment, some of those companies may get under severe financial pressure that they do stop production. the problem is, $10 is better thannone, $20 is better none, so the incentive to close production is not there. caroline: who will be feeling the pain the most? is it a particular country?

will: they gain here for saudi arabia -- the goal here for saudi arabia is to knock out high cost in the area. where the costs are far higher than today's prices. caroline: we are seeing wti crude up by more than a percentage point, but a little sea of green when it comes to methyl today. we are seeing copper at 1%. will: we have seen some commodities bounceback in relation to the fed decision. in china, there is some indication that producers will cut back production of fine metals, but i would be cautious. really tell us is how the chinese economy develops.

caroline: in a moment, every single call leading up, is every house bearish when it comes to commodities? will: it is very hard to find a voice that will say, it is hard for the market to turn around. caroline: are we going to be sub $40? will: i think so. in the short-term, the weather could change, we could get a cold snap. oil is at the mercy of political events in the middle east, that the real problem is that global stockpiles remain at record level, and it will take all of 2016 to bring that back down. supply-demand balance, things might be coming back into balance. caroline: 19 million barrels? will: hundreds of millions of barrels. caroline: the highest since the 1930's.

will: it is an extraordinary situation and will take some time. caroline: the first showdown between myself and honorable brendan greeley. betty: time for our global battle of the charts. we take a look at some of the most telling charts of the day and what they mean for investors. brendan greeley, senior economics correspondent is chomping at the bit. brendan: i am a little stressed out because carolines chart contains the word azerbaijan. gas producers in the u.s. have been increasing gas capacity. you are seeing basically one trend and that is up. the capacity has been increasing under one fervent wish that they will be able to export and compete with russia in the european market. while they are waiting to go online, louisiana exporting that gas, it has been warm.

the price has collapsed. betty: otherwise, coal. a lot of natural gas, not quite sure what we are going to do with it. betty: and you are related to energy as well, caroline. caroline: i raise you azerbaijan. , and i alsocolors stick with a commodities theme. this is all about how the commodities play. check this out for a move. the spike, the azerbaijan manette falling off a cliff, 32%. this is the worst performing currency in the world for this particular year. why? because it deep pegs from the dollar. they could not take the pain any longer.

they cannot support the headwinds, the fact that oil is going through the floor, the u.s. raising rates. all this means they are becoming less and less competitive so what do they do, they depeg suddenly. hopefully that means they will get exports off the ground. canadianmber, the dollar has weakened to the tune of 16%, but it is beltre compared to azerbaijan -- it is culturally compared to azerbaijan -- paltry compared to azerbaijan. brendan: i am to award it to caroline today. i think this is an amazing chart and this is why. the central banker of kazakhstan said about a year ago, we had to do it, other people will have to

do it, and do not just look to us. watch for saudi arabia next. betty: i agree with you that carolyn, but you are not allowed to break the rules. brendan: it is your call, betty. caroline: come on, betty. betty: we have got to get going. caroline, what is coming up in europe? caroline: we will be keeping our eyes on the market. with a down day, every single industry following. here is what i am watching for tomorrow, it will all be about the turkish central bank decision tomorrow. anticipating a rise in rates as the country tries to balance inflation and a weakened currency. ♪ bring your family and friends together

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♪ watching in a winter watchlist land! ♪ xfinity's winter watchlist. watch now with xfinity on demand- your home for the best entertainment this holiday season. >> it is 12:00 p.m. in new york and 1:00 a.m. in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters in new york, good morning, i am alix steel. here's what we are watching. bears remain in control, brent oil sliding to an 11 year low. political uncertainty in spain. voters break up the two-party dominance, giving power to some newcomers. now that washington has extended a tax credit for solar energy, is it time to warm up for solar stock? marketead over to the desk ramy inocencio has the latest on the holiday week. markets started in the green but now the dow is losing steam. the s&p 500 is up by only about a quarter of a percent.