caroline: today has been a pretty volatile one. european stocks swinging between gains and losses. the stoxx 600 closing in the red. and a shock decision coming from the turkish central bank. the european close starts right now. ♪ betty: we will take you from new york to london in the next half hour. this is the european close. a third day of losses. we were in the green, we were in the red, and we closed lower overall. off 200 billion euros from market valuations over the last three days. upixed picture, ftse 100

.7%. picture, but one key theme. oil and gas, best performer. brent coming off of its lows. that seems to be on the back of hopes about chinese stimulus. betty: we keep hearing about central banks cutting interest rates. kind of a different scenario in turkey. caroline: yeah. a surprise. many thought after the fed raised rates, turkey would come next. they would start to normalize because they really are facing significant issues with inflation. but instead they surprised the market. i don't do anything. they don't raise rates. you suddenly see the euro up and the turkish lira dropping. in are seeing a weakening turkish stocks. you are seeing a weakening in turkish bonds.

all the assets declining because of this key concern. it looks as though the central bank doesn't have quite as much independence as would be hoped. the government really pushing to keep things low. in on let's check bloomberg first word news. courtney donohoe has more. courtney: u.s. army sergeant bowe bergdahl made his first appearance before a military judge to face charges of desertion and missed behavior the enemy. he was arraigned tuesday during a short hearing. he deferred entering a plea and did not decide whether he wants to face a court-martial with a jury or one with just a judge. if convicted at a general court-martial, he could get life in prison and up to five years for desertion. a new poll shows ted cruz gaining on donald trump in the republican presidential race. with theshows trump

support of 28% nationwide with cruz 4% behind. hillary clinton is sharing her plan to cure alzheimer's disease. more than 5 million americans have the disease. jury inclined to indict anyone in the killing of a black woman in her jail cell. arrested sandra bland in july could still face charges. the jury reconvenes in january. betty: thank you so much. much more ahead on bloomberg markets. has mario draghi done enough?

whyill look at the euro and investors seem to be content for now. has found a bank total of $10 million worth of suspected trades related to its russian operations. they shut their office in moscow. we will look at what is at stake for the ceo john cryan. was heading for a second loss this year. ♪

: this is the european close. betty: some people think mario draghi has done enough to revive the european economy. the euro is now weak enough for

the economy to grow. thisof it has to do with divergence we have seen between what the ecb is doing and what the fed has done. caroline: of course. divergence between central-bank policy and the combination of ecb quantitive easing and higher fed rates was just going to help the euro hold on to those declines. vasileios gkionakis is here. where does the euro go from here? >> i think we will start seeing some mild depreciating pressures on the euro. i think they will be mild because the market will remain aware of drug's potential effects -- draghi's potential

effect. modelingof fundamental , it's difficult to see the euro 110.en -- below caroline: it needs to keep the euro lower. thiskeep thinking about because it is a bit exaggerated. we are coming a long way off. 18 months ago the european -- the euro was 140. makey honestly, will it such a big difference if the euro is not at 113 and it is at 108? i find it a bit ridiculous frankly to believe that the central bank believes they can fine-tune the exchange rate that much. caroline: you mentioned the euro. at fallingto see

below 110 considerably. we had a strategist on yesterday who has been one of the most accurate forecasters on the dollar and he differs. his name is henrique alvarez. i like to listen to what he said. we expect the dollar to reach parity with the euro at some point in the second quarter in the spring of next year. be next leg down will prompted by further discussions of yet another expansion in qe. betty: i guess it all depends on what your base case scenario is for growth next year. i think -- first of all, growth has been ok so far. in 2015 in the eurozone. and i think it's going to be largely ok in the next year. the issue i have with this argument about the monetary policy divergence is that at

some point we need to -- it cannot be that the euro keeps on falling and we can attribute it to the monetary policy divergence. bere must the -- there must a one to one of policy divergence to an exchange rate in the euro. i think the fundamental case for the euro to diverge at parity or below is not there. betty: there might be some argument for that. his call was that the dollar is going to strengthen considerably. i know you are more tempered. theirjust came out with outlook and there are discussions about the fed rate policy. hikesee maybe four rate from here until 2017. is that your scenario as well? year there will be three rate hikes and an

in 2017.l two to three but there is another issue. and that is how much of that is already in the price of the dollar. for example if you take real rate differentials on the trade weight, what you will see is that in order to justify the dollar at current levels or even higher levels, you just need to do a very aggressive hiking by the fed, which personally i don't think is going to happen. want to throw another central-bank into the mix here. will china stimulate? so much depends on global growth from what china does. do you see the forceful nature they are talking about coming true? of theink china is one central banks where there is scope for them in terms of reducing interest rates. moment, at least

for the first quarter of 2016, they will probably sit back and see how the weakening of the exchange rate -- which is going to start panning out in the economy. there have been signs of stabilization in china. if you ask me whether these guys are going to ease, it's a toss of a coin. it's definitely one of these central banks which are far more likely than others to ease. i still think they may be satisfied so far with the progression of how far the exchange rate has moved and the economic data has stabilized so far. caroline: thank you very much. i wish you a very festive period. vasileios gkionakis. let's check in on u.s. equities. actually coming

back from those existing home sales numbers. abigail doolittle has more on this rebound in the nasdaq. the shares are actually down today in reaction to the company's announcement that it is acquiring knowledge fire -- solid fire. that puts them solidly in the flash market. i did speak with senior analysts at da davidson. they are bullish. not much has to go right here to have the stock work. turning to apple. part of the reason the markets may be turning around. investor expectations around the

march guide may finally be too bearish. betty: thank you, abigail doolittle. it is a battle of the charts, next. it is the season to think of potentially all the good investments you didn't make this year. i have just the chart of regret for you, coming up next. ♪

betty: you are watching bloomberg markets european close. i'm here with caroline hyde in london. time for bloomberg flash. apple is speaking out against a proposed u.k. surveillance law. proponents of the investigatory powers bill say it would strengthen law enforcement's ability to investigate potential crime. the measure would let the government view the internet browsing history of u.k. citizens. apple says threats to national security don't justify weakening privacy and putting the data out of hundreds of millions of users at risk. to pull a is being investigated for its link to a new spate of illnesses in three more states. five people in kansas, north dakota, and oklahoma have become sick from an e. coli strain with

a rare dna fingerprint. all reported eating at a chipotle in the days before their illnesses began. chipotle is already reeling from outbreaks of e. coli and norovirus. the stock has been downgraded. a mentals ordered evaluation of sumner redstone. ex-girlfriend says he can't make decisions for himself. she was in charge of his care until october when she was kicked out of his house. he controls both cbs and viacom. caroline: we have to get to what has been an explosive story on deutsche bank out today. lender said tost $10 flagged a total of

billion in trade that may not have been vetted for money laundering related to its russian operation. it's an incredible story. u.s. prosecutors were reported to be looking into whether deutsche bank's handling of it -- may have violated anti-money-laundering rules. the big factor deciding the ultimate punishment for the german bank. i want to bring in keri geiger. you have been busy lately. keri: i have. betty: tell us exactly what they found. bank got a tip off from the russian central bank that they may have had some problematic accounts. so they took a really close look at the russian operations and they uncovered a sickly in two parts, a $6 billion mirror trade. that's where basically you can in moscow inbuy

rubles and it's instantaneously in dollars and ends up in london. it's a great way to move money in and out of a country. they are totally legal. mutual funds and large investors use them. to skirtbe used capital controls or move money without being detected. secondly they found an billion in trades which were not mirror trades but look like they were largely one-way trades that were also part of this suspicious group. with theseing issue trades is they may not have been scrutinized as carefully as they should have been. they: so in response to prior finding -- they shut their moscow operations. keri: they significantly wound down. they do have some presence there. they have a program or they are doing increased vetting of new clients.

the bank is taking this very seriously. they are cooperating with the investigation and so forth. the interesting thing is a lot of this was uncovered by the bank itself. they went in and looks. obviously no bank wants to go find $10 million in trades that weren't vetted properly. seem to be taking responsibility. they are taking action. what about the u.s. regulators? sinceas been going on october 2014? that is where the big issue for deutsche bank and other banks on wall street getting looked at for similar types of issues is -- once you have prosecutors looking into this, then you can go through the process where you may actually have to plead guilty to something, you might have to settle. we've seen a number of multibillion dollar fines with banks on wall street over various infractions and putting sanctions violations and interest rate rigging.

it's a serious issue facing any bank once you have prosecutors involved. and the upside, looking at where you have money-laundering concerns, what other countries are at risk? what countries could be thinking, i don't exactly know what's going on? a problem of having a really large global bank. when you are expanding into emerging markets and they don't have the same recording and compliance requirements you do in the u.s., yet u.s. requirements will apply to that, it gets very difficult for banks to keep up with what's necessary so they can stay out of trouble with regulators. great story, keri geiger. and you very much. -- thank you very much. my favorite part of the day. it's war. betty: that's right. it is time for our global battle of the charts, where we take a

look at the most telling charts of the day and what they mean for investors. of what'd you miss is here. >> we have weak numbers out of switzerland in their watch category. line down over 5% here. exports to hong kong. there's quite a collection. of swisswealthy buyers watches. when things slow down in hong kong, swiss watch exports decline as well. this chart goes back 10 years. you can really see the link. betty: is currency the issue? the anticorruption stuff

has hit a lot of the very wealthy in hong kong. taking aal slowdown bite out of people who buy expensive swiss watches. he's talking about buying watches. what about you? caroline: it's tough. everybody loves a bit of luxury. i'm going to try to one of him. i've got tech. and i've got regret. what on earth should you have owned in 2015? what would have given you a 1366% return? finger paint cards. and smartphones. suddenly we see technology being desired. we see phenomenal growth. company helps with all these fingerprint cards.

what i love about this chart is this green line and yellow line are second and third. they're up 250%. it looks pathetic when you put it next to fingerprint cards. there's also a gaming company. betty: fascinating. investing in new technology and maybe not buying as much in some of these older luxury goods. my relatives are from hong kong. i was born in hong kong. i know how important watches are. if you go on the streets in hong kong, there is a watch store on every corner. today. you get the win caroline, your winning streak is over. [laughter] caroline: i will keep my competitive thing going. betty: what have you got coming up in europe tomorrow?

caroline: after a third day of losses, we will be looking at where stocks head. it's all going to be about the future of opec. this is where volatility has been. opec's latest outlook will be out tomorrow. we will hear about production expectation changes. and u.k. french gdp figures come out tomorrow. much to be digesting. the pretty quiet on streets, but volume is down 30%. a down day for european stocks. and will i win battle of the charts? that's the key question. have a great afternoon. ♪

betty: it is 12:00 in new york, 5:00 in london, and 1:00 a.m. in hong kong. welcome to bloomberg markets. ♪

betty: good afternoon. i'm alix steel. here's what we are watching at this hour. the u.s. economy continues to grow, buoyed by healthy consumer spending. but investors don't like everything about the latest gdp numbers. oil prices trying to recover from a volatile start to the week. we will talk to one analyst who sees some bright spots. the biggestlim is loser among the world's richest people. have you shed about $20 billion in wealth this year. -- how he shed about $20 billion in wealth this year. let's go to ramy inocencio. ramy: we are adding on to gains that we saw from yesterday. markets shrugging off the fall we