anna: the president elect names chair reince priebus and stephen bannon to his cabinet. eu leaders promised to cooperate with president elect trump. by they vow to stand international agreements, such as easing sanctions with iran.

a very warm welcome to bloomberg daybreak. i'm anna edwards, alongside yousef. manus cranny is with us, over in dubai. manus, let's take a moment to break through some earnings that have just been released. manus: let's get you those earnings. nine months adjusted net income, hat came in 227 million euros. the nine-month operating result is 1.1 2 billion euros. the estimate here was for 22.18 billion euros. remember, this is a company that

is trying to focus more on cost cutting. before the announcement, the stock was down 2.67%. seems the fiscal year conventional power operating profit is about flat. rwe profit falls on the power price slump and mrs. the isses the estimates. emily: just in case any whereors were wondering, their investors buying into the infrastructure inflation story out of the u.s.? with a have a change of heart? -- would they have a change of heart? no, the dollar is going higher and the u.s. bond yields are on the rise. manus, we see the 30 year bond yield raising above 30% for the first time since january, picking up on this infrastructure inflation story

from the end of last week. manus: it depends how front -loaded that is. let's talk about the risk radar. that is the question for the marketplace. equities are dropping, as you can see at the top there. that is the third day in a row that it has declined. the ringgit hits a nine month low. you can see little bit of a turnaround. the bank in relation will take measures to prohibit the facilitation -- the bank in malaysia will take measures to prohibit the facilitation. kurdo must be telling abe to come over and have a rather large glass of scoth. -- glass of scotch. tekuroda is talking about potentially disruptive moves.

what happens to the transpacific partnership? we are hitting seven-week lows on oil. anna, you are right. breaking over that magical level , in terms of yield, over 3%. that builds up this discussion between equity markets and bond markets, in terms of yield. do not forget, there is an option this week. there is an inflation-based option in the bond market, the japanese government bond market. and u.s. treasuries, not one bond analyst got that call right. where do we go next on the inflation trade? that is what we will debate. in the meantime, haidi has your bloomberg first word. reporter: good morning. the new zealand dollar has fallen after a powerful earthquake that killed two people and traded widespread damage. the magnitude 7.5 earthquake

struck just after midnight. it is being followed by dozens of aftershocks, one a magnitude of 6.8. china's economy held ground last month following new measures to boost property markets in two dozen major cities. industrial production growth grew 1% in october. retail sales climbed 10%, but where shy by an estimate of 10.7%. japan's economy expanded with a rebound in exports, compensating for weak spending. 2.2%.ew by however, private consumption grew just .1%. business spending went unchanged. meanwhile, the japanese prime minister has the transpacific icultership is in a "diff

situation with the election of donald trump." he wants to discuss the thinking of the president-elect when it comes to free trade. south korea's president will meet with the country's main opposition tomorrow to find a solution to a scandal, that has triggered the biggest protest in decades on saturday. korea's leader will be questioned by prosecutors in office. the u.k. prime minister will give her first speech on foreign policy since taking office. this will be her first alice's of donal analysis of donald trump's victory. she will argue that change is in the air, and it is the job of politicians to respond to voters who are unhappy with shifts in society. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. stories on there bloomberg at top .

manus: we have a lot of data coming out of china and japan. let's see how the markets are holding up. reporter: well, a little bit of a mixed picture here asia. the shanghai composite is tracking higher, up by .25%. we can see movement coming through with industrial players. this, of course, as the china the economy is still showing signs of stabilization. japan close higher, 1.7%, leading the gains in the region today. the third quarter gdp came through better than expected, 2.2% year on year. and of course, this dollar strength story as well. yen give a big boost to a export stocks. these emerging markets are still very much under pressure and if

you look at the regional index, excluding japan, it is down quite significantly today. emerging market currencies are being sold off. and you have got basic materials and also financial stocks in every sector in that region or index being sold off today. just having a look at the currency markets, the yen continuing to weaken. saying speaking today, they are paying very close attention to this fx market. at the same time, we had the weakest numbers from the pboc fror the yuan since september of 2009. itsyuan is down by 0.25%, third quarter of losses. so, quite a bit of weakness in currencies, but japan and china are looking quite good in the equities space. anna: let's turn to all things

american now. donald trump has announced two senior appointments to his white house staff, handing roles to those who helped steal last week's win. now joined out of new york. give us an idea of trump's latest picks for his team. andou need a chief of staff chief strategist. the chief of staff went priebus and the chief strategist went for stephen ban non. the trump campaign said they will be equal partners as they transition into the white house. with these side-by-side appointments, it is clear the trump camp is trying to grab all of the gop. the people who really put trump in the white house, versus the gop establishment.

bannon used to be the chairman wing website. iebus is classical establishment. he is very good friends with paul ryan. so, he is a clear leader in the gop camp. exactly how will this materialize in the white house? it is still being discussed. says mp aide sas bann bannon will be the chief strategist. but really, the chief of staff is seen as a cabinet-ranked position. it leads negotiations with congress or external parties. that is seen as the president elect's lead confidant. bannon's role will be like what karl rove was to george w. bush

, for what john podesta was to president obama. manus: when we look at trump's communication with the u.s. citizens over the weekend, it varied. he has been quite prolific on twitter. give us a sense of where we started the weekend and where we have ended it, in terms of understanding the president elect. >> does not look like he will hold back from twitter anymore. he used this applet to immediately speak to the public, even sometimes -- he has used this app to immediately speak to the public, sometimes even saying something and then going back to change it. this week he gave his first television interview to "60 minutes." he is bring down the rhetoric slightly. first, we have the wall only mexican border. it is supposed to be a massive

wall. dea has been kicked around the republican congress and he said, maybe we could do fencing. this was brought up. so, slightly turning that rhetoric down. and then clearly turning the rhetoric down on obamacare. actually, he does not seem to hate all of it. he made that clear in "60 minutes." because itp: yes, happens to be one of the strongest assets. also, with the children living with their parents foreign extended period. it adds cost, but it is something we will try to keep. reporter: clearly, obamacare is something he really campaigned on. the gop wants to get rid of it, but he i saying he might take inches the aspects -- he might pick and choose the aspects he likes. manus: joining us now is alex

dryden from jpmorgan as a management. the topck up where strategist has been determined to be the chief of staff. markets are scrambling for the tiniest little bit of information that could be indicative of policy. in the is a good step right direction, but we still need a lot of clarity around the personnel and policies that trump will try to implement once he steps into the oval office. we have painfully little detail about the trade negotiations, and whether or not he will pull out of trade deals with neighbors, whether we will seek a to the corporation tax and other tax cuts, and what fiscal policy stimulus he plans to get done. there will be a lot more policy in the next few days. caroline: a painfully little detail, but it did not seem to matter. he used the infrastructure word

a couple of times during the acceptance speech and it was enough to spark this. we saw the move in the dollar index and the 10 year. all kinds of assets are on the move as the result of a short speech. >> he touched on the buzzword in the speech and that was enough to send markets humming. i think this is a little bit overdone. infrastructure spending is not something you just turn on today and you feel the impact tomorrow. te still need to get it approved by a conservative congress. so, we do not actually know how big this project will be. we do not know when it will be coming online. the u.s. economy is not in a position to absorbed this infrastructure spending. people have been thrown back to the 1930's for a comparison, saying we need old-school stimulus to get the economy

going again. back then we had double-digit unemployment. we are now running with unemployment close to 5%, close to full employment. if you want to build bridges and roads, and cities, you need to have somebody to pick up a shovel and put it in the ground. fews: that might include a immigrants into the united states of america. looking at this,. this is the president and performance of the s&p 500. it has lasted longer than anything on average. the fed is holding back in terms of hiking. there is a great line in this story, which goes, get your bear market out of the way. what could turn this demand off? could it be three hikes from the fed next year on the prospect of

inflation? >> you could see more interest rate hkeikes than are currently being priced in. the fed is saying two interest rate hikes next year. he market is barely pricing in one. we are seeing wage growth come through, we are seeing oil creep back up. many of donald trump's policies would be stimulative to the economy. that could force the fed to move many more times than the market is expecting right now. manus: specifically, you talk about bond yields. we just saw the u.s. 30 year treasury across the 3% mark. will not be the end of it? pimco put out a notice saying, it is starting to bottom out. >> it depends when people are getting attracted back into the bond markets. 0 year creeping

back up, people who were sitting hands, you might see people rotating back out of that, thinking they could find a reasonably attractive yield in a world where we have 1/3 of developed property. dryden.ank you, alex let's take a look at the entire week. today, euro-finance week is underway. tomorrow, mark carney testifies before the u.k. treasury committee. on wednesday, said presidents bullard, kashkari, and harker speak at different events. on thursday, shinzo abe meets with donald trump.

manus? , domesticing up in october. steady is there a reason to be concerned about the world's's second-largest economy? playing the trump card. eu foreign ministers say they look forward to a strong partnership with the next u.s. administration, but there are red lines are iran and russia. we go to brussels for a closer look. madeu.k.'s boot maker big money during the trump presidency. this is bloomberg. ♪

anna: a very warm welcome back. this is not europe, this is hong kong. 1.5%.ng seng is down by

.3%.pacific, down by juliette saly has the bloomberg business flash. reporter: u.k. businesses have delayed or canceled investments w. with more than 40% of the company scaling back. that is according to studies from the center for economic and business research. have beenecutives reluctant to follow through on spending plans because of a plunge in the pound and a lack 's tlarity on the u.k. relationship with the eu. donald trump might be good for the lending market. s helping topound i fuel demand.

deal could value as much as $8 million, depending on the structure for the agreement. representatives for novartis and c eal declined to omment. manus: let's cross over to the china story, where the economy has held its ground. we also had the industrial production figures, which rose 6.1% in october from a year earlier, dismissing estimates. estimate.the is alex dryden from j.p. morgan asset management. this whole narrative of domestic demand picking up the baton for chinese economic growth, to the numbers support that? -- do the numbers support that?

>> it is never going to be easy to shrink the economy's dependency on infrastructure spending and trade and move this over to a more consume steady c. fairlystill seeing decent numbers coming through if you look at the big picture in china. manus: alex, there is a great piece written, that says china does not want the job that donald trump wants. and they have a weapon called the yuan. would the tariffs really matter to china? >> china is trying to move their jobs and consumers away from the towar theing base

ds the jobs you were talking about. we will continue to debate the currencies for quite some time. when it comes to the currency, we know the direction of travel. we know where the currency is going to go. isever, what we do not know how much it will take for us to get to that destination, and we do not know what that final destination is. every time the currency continues to weaken, and it is at is lowest level in six years, that through a lot of uncertainty into the mix. -- that threw a lot of uncertainty into the mix. anna: i want to get your thoughts on more broadly, the emerging market space. we have a chart here that highlights the local currency bond return index. also, currency volatility up at the top for emerging markets, it is on the rise, but not to the extent of what we saw during the yuan devaluation, or the dollar surge. how big will this get?

and could that put the fed off, knot in december, but next year? >> when it comes to any asset class around the world, trump making it into the white house means the most for emerging markets. when i am looking at developed markets, i know the congress can check on tax cut that infrastructure spending. when it comes to independent markets, things that impact them are trade negotiations, two areas ofxpertise the president has a lot of experience with. eastern europe stands to lose out. you might see a more expansionist russia taking to the fold. that changes the dimo dynamics . southeast asia will get quit hard hard. dryen, staying with

us. manus: corporation, that is the name of the game. eu prime ministers agree to work with the u.s. president elect. we haead to brussels. this is bloomberg. ♪

>> welcome back. you are looking at a live shot of the imperial palace here. gdp expanded more than forecast and th. up .1%. a new edition of daybreak is available on your mobile. we are seeing what are some of the stories making this edition. the cover story is donald trump he faceso-do list and

a tough task. names.e have heard a few china has fresh data showing the , following the measures. retail sales climbed. are focusingy, we on the week ahead. we have the euro area industrial output and gdp figures from italy and germany in the eurozone and this is a big one. it is u.k. inflation data. continuetrump trades and they are at key levels. the mexican peso is jumping.

adviser says that there could be a softer approach. good day to you. >> good day to you. $1.2 trilliond wiped off of bonds. .he yield has been up the 10 year is at the highest since january. the bloomberg dollar index has been tracking these in yields and it hit a 9-month high. the japanese yen is off. pesoid mention the mexican is up. we generally see a lot of

currencies punished and there is some nuance and complexity in the markets. i just wanted to show this chart. you look at the white line and yield advantage coming down. stocks are heading for their lowest close since july. we want to show you what is happening in this commodity space and you can see the jump in copper. goldman sachs says that prices thehave risen, despite eadingory and they are to the biggest three-day loss.

>> we have a second quarter and beat on the second quarter. it will pay a second half dividend. was 358 analf income there are interesting numbers for the program. union policyopean chief says that they want a strong relationship with donald trump and the incoming government. discuss futureo ties in the u.s.. ministers agreed to stand by international agreements that trump has credit -- has

questioned, including the nuclear deal with iran. >> i have stated this that this is not bilateral. this is multilateral and endorsed by the security council resolution. it is a european interest and guarantee thed to agreement is implemented in full for 10 years. is a joining us now bloomberg bureau chief. what are the biggest concerns that the ministers have? support that they shrum, but they list things that they are suspicious he will disagree with them on. they pledged to cooperate with trump. that is what you would want to

be doing with the president. time, some of the campaign rhetoric was very disturbing and the nuclear deal is one of those. the climate change of the big international deal to fight international climate change is another and we have his relationship with russia and how that goes forward. all of these things are worrying the foreign ministers in brussels. >> indeed. look at the victory and i wonder if this is an ironic moment where it europe unifies and it galvanizes europe? -- galvanizes europe. >> you could see that happening.

there is a sense that the european union needs to come together to negotiate with this u.s.. -- u.s. europe whoeaders in feel closer to trump. in hungary, they did not come to the meeting and boris johnson did not come, either. he said that he did not think it was necessary and there is no reason to be whingeing about trump. there is an uncertainty that still surrounds the administration and the extent he will follow through. let's go back to the global markets strategist. how do you think things

evolved? is the market waking up to a real possibility? >> i see it as a political storm and it moved over to the atlantic. it is now coming back and we have countries that represent 41% of the eu gdp and it does not include events like the italian referendum and the swiss renegotiating treaties. there is a lot of things in the air and it is difficult to get a clear view of equities. >> we have numbers hitting the bloomberg terminal. announceding maker

they filed for chapter 11 bankruptcy protection and this story has been a long time in the making. they suggested that this is being prepared for the business and the turnaround plan did not and all it would seem of that headache, keep an eye on that. let's go back to you on the question of europe and how much you are buying into the pound the sterlingre is recovery that we saw and the by theeems transfixed

argument that it is good for the u.k. and it could give a stronger hand in the brexit talks. >> i am skeptical and i think there is a question of the trump trade deals and it is difficult to be drawing meaningful investment conclusions. i think they have found a bottom itinst the u.s. dollar and is probably where it should be trading and will be trading until we get the clarity. >> do we need to see these bills approved by houses of parliament ? will that delay things? see you and the team have the knowledge on the markets and a thing that caught my eye was that return for the banks. you have deutsche bank and

credit suisse taking it home. trump triesand, if to roll back on any of dodd-frank, is this what is driving the banks higher? it ishink that some of having to do with that and we are seeing a deregulation that would take pressure off of the theing sector, except for triangle of trouble. we have negative interest rates and overregulation. changes to the dynamic help the profit margin and my opinion is that the banks are relatively stable and they are just not very profitable.

>> i have to jump in the here. hashe bond trajectory, it arrived with a slightly better yield curve. >> the net interest margin is helping out and we are seeing a bit of volatility. anything with that, you see the revenues creep up and the trading revenues are up. mainly, the products have more volatility coming through the treasury market. how do you trade the least

events? i would be looking more towards the united states. i know there are questions over donald trump and policies he would be looking to implement. i would prefer it, at this point. >> he will stay with us on the program. >> iran boosts output. we will have more on this. there is some assembly required, as donald trump names key posts. we will discuss. >> foreign ministers pledged to discuss the incoming administration. we will get into this conversation.

this is bloomberg.

>> in certain areas, i would. in certain areas, the wall is more appropriate. there could be some fencing. don't do it. it is terrible. i am bringing this country together. >> they are harassing latinos and muslims. >> i am saddened to hear that. ." ay, "stop it i will say to the cameras. >> about obama care, when you replace it, are you going to make sure that people with pre-existing conditions are going to be covered? >> yes. also, for the children living

with parents. we are going to keep that. i have never commented on this, i think i have to take one dollar a year. i do not even know what it is. do you know what the salary is? i am not taking it. donald trump speaks to cbs and u.s. futures have not changed their minds. we are seeing them go higher. futures are up. let's go to bloomberg business. >> thank you very much. u.k. businesses have delayed or canceled moves to leave the european union. this is according to a study according to economics and business research.

executives have been reluctant to follow through on spending plans and there is a lack of clarity over the future relationship with the european union. be good for the london housing market. victory couldtion bring a return of international investors. pound is of the helping to fuel demand. according to people familiar with this matter, it could rally a million dollars, depending on the structure of the agreement. shrinking to about 1/10 of its size, after it returned after the bankruptcy. they are either stranded or seized. that is your bloomberg business

flash. >> thank you very much. i have decided to give in to a little bit of this with the opec production and what they have to do to get into this market. relentlessve is to global supply and the market is trading down and iran keeps pumping, adding barrels to the system. the fracking is back and there is more than may. a beautiful peace talks about the potential for donald trump is the best friend of oil. if he tries to tamper with the agreement with iran, he could this.

and, when yous look at this surge, this resplendent surge of commodities, oil has not caught it. >> it has been trending upwards and there is this idea that opec would strike a deal to cap production and it had little, in the way of details. nobody was willing to cap production. you need countries to agree. outside of this space, we have likea big rally in areas copper and it is interesting that a lot of this is coing out of the united states and in europe. used moree economy

than the u.s. did in the 20th century and they are the driver of the commodities market. >> it helps, but is not enough to keep this rally going. >> what is happening in the currency markets and the rise for the first time since 2010 and, if you are buying these commodities, they are getting more expensive and it will be an issue. keeping in on on this, china completes the infrastructure plan in 10 months. thep calls this infrastructure plan that is second to none, except for china . >> if you ignore china and look

at the u.s. -- i do not believe that his infrastructure plan will make it through congress in an unfunded form. they are not going to just allow this for the construction of a wall or bridges. >> that is a risk. >> it makes sense. however, the rally has come a long way and it is starting to look a little overdrawn. >> we have seen incredible aretility and these moves considered to be excessive and not sustainable. actual and tangible policy. which commodity will you put your money into? in theuld look at gold markets. ,t used to be a safe haven area

instead, gold is the area of opportunity and i think it is interesting to look at. >> let's get it all together. the dollar is at a high and the oil price and the gold price are inflation protections. if the dollar is rising, what will it do to the commodity? you have rising interest rates. i will not bore everyone, but there is a cost of carriage with commodities. this is not a one-way trade. >> i think it is more complicated and we have been seeing the commodity markets with the almost synchronized swan dive in the commodities space, whether gold or

livestock. seeing aw going to be string of performances in certain areas of opportunity, like gold. there is potential in a short span of time. i think this will start to splinter. , with theting time risk mentality accompanied by andle are considering gold investors to say to keep an i on the swiss franc. it has this unwind and thetimes been a sign of nervousness.

gotten people have m onsh about equities and the cautious side, waiting for charity -- clarity on the trump presidency. answer my questions and i can get on the excited side. >> thank you. >> i do not think you can get more excited or exciting than the week we have had. newpresident elect made two appointments and we have all of the details and the implications of it. stay tuned. ♪

>> trump's west wing, naming bannon to the staff. steady as she goes. the asset investments remained resilient. european red lines. leaders promised to cooperate to hold up but val agreements, like easing sanctions with iran.

>> welcome to bloomberg daybreak. edwards.g anna ande have them breaking now .he result be 650,000 ounces. of 2016 and the details are just trickling through with this business. 133% so far this year. this is before the earnings announcement and they announced

they would be moving on the purchase.y-z >> let's get to futures. theet to asia and asia-pacific is down and it ands like we will be moving at the start of the trading day. let's get you. you have the european market update and you look at the futures and the emerging markets and it has been three days where we have lost 9%.

the question you have to ask yourself is versus the emerging market trade. they are talking about the volatility and the transpacific partnership, which could be in peril. this is all going quite nicely story.s is the strength pushinge market be moves? the discordant have the bank saying that they want to make sure they did not deliver before the end convention and i asked the question if there will be one there.

marketo over to the bond and you have a real big move done and a 10 by next yearant a risk and il is want to borrow in the mortgage market. undoing of mr. clinton was back in 1994. >> thank you. i will pick it up here. we have a line out from samsung. for a billion dollars it has been down so far this year.

in at $112 came in cash. the new zealand dollar has fallen after the powerful earthquake. the magnitude 7.5 struck after midnight, north of christchurch. schools and many businesses are closed in christchurch and wellington. >> new measures to cool property markets in cities. rolled and it's

is an investment increase in the first 10 months of the year. exports is a rebound in the medianw versus estimate. however, the private consumption grew and shinzo abe big knowledge the transpacific partnership is in a difficult situation and he wants to .iscuss the thinking >> a quick reminder that you can find more stories at the top. let's check the market action. >> i want to start with the

chinese renminbi. we have seen this go past through the dollar for the first time since it was pegged to the greenback. through inves come the currency space and the shanghai composite closes higher and it showed a stabilization andy in the chinese economy numbersre beats on gdp this is the emerging market isex this year and it happening to sell off and the

over the last week and you have a lot of what and there isxports a wake session here in hong kong and the chinese stocks are at a with the search for yield continuing. >> i will pick it up from here. madee u.s. president has we haveppointments and the chief of staff and the chief strategist named. the latter was the chief executive and he brought a far .ight voice

talk me through what we have here. we have a chief of staff and a old-fashioned gop centrism. >> this is what they are trying to do, trying to span the appointments to appeal to the right and they came out to vote for him. gop got in line with the ad bannon brings controversial right-wing voice to the white house that many are questioning. chair sincethe rnc 2011 and he is very good friends

with paul ryan. classic gop leader. bannonmp camp says that will be in charge of the big picture. are keen to know how that will materialize. the trump camp says they will be equals and we will not know that until we see them in the white house. >> investors are looking for clues and any sort of clue on policy. >> you know, we heard him dialback some rhetoric that he got elected on and he gave a and oneon interview thing that stood out was that he liked certain aspects of obama care, like pre-existing

conditions and young americans being able to stay on health care plans. those are things he wants to keep. with the mexican border, he said that a fence would do. >> for certain areas, i would. wall isain areas, the more appropriate. there could be some fencing. members, we, gang have a lot of people and we got to get them out of the country or incarcerate them. they are here illegally. >> donald trump talked to cbs there. with his appointments and policies, you could see him keep part of the rhetoric and dial some of it back to get the greater republican party on board. >> thank you.

bob parker is a senior adviser at credit suisse. it is great to have you on this program. we just heard about key appointments and there is euphoria across assets. are you buying this? policy is trump going to hold on? >> it is a significant development with the jump in treasury yields from where we are today. there is a higher probability wet it will get extended and could be looking at a yield of 2.5%. this was a significant development. why did we have a big move? there is an inflection point in

the outlook for inflation and and fiscal monetary policy. whether it is a cut in tax or an increase in infrastructure spending. policy ithat fiscal going to increase and if leigh should will rise. consequently, we have had that effect. some people suggest the more investors are tempted to come in to the bond market. what about the dollar? how much do you buy into this?

this is a big move. there is a mix with monetary policies and it is all positive for the u.s. dollar. there is a focus on the and there is ask focus on the problems we could there is aope and it isconclusion and inevitable that we have an expansion of fiscal policy and a framework in europe, which means that we will have the policy impasse somewhere. it is negative for european growth. there is political upheaval

you believe in this and buy into this? >> the simple answer is that have been going sideways. there is an outperformance and an underperformance. as you correctly say, the

earnings outlook is not positive and, if i am right with the u.s. march,y yields by next that clearly has to do with the global equity markets. think, for the next 2-3 years, we are stuck trading around current levels. >> up next, theresa may prepares for her next speech. this?ll she respond to

>> you are looking at a live shot of berlin. the euro dollar is just under one half a percent. a gorgeous sunrise. who knew that there was a sunshine outside of dubai? i thought that i had it all. >> thank you. canceledstors have investments since voting to lead the european union. -- is according there is a plunge in the pound and a lack of clarity with the future relationships. donald trump may be good for the housing markets. spurn the return and

the slide is helping to fuel demand. maker,. generic drug according to people familiar with the matter, could have a deal with as much is a billion dollars. the representatives declined to comment. sizehas shrunk to 1/10 a -- of its size after the filing. this is your bloomberg is this flash. >> thank you very much. the u.k. prime minister will give her first major speech on foreign policy since taking office. this will be the first analysis of the trump victory and she

argued that change is in the air and this is the job of politicians. they are unhappy with shifts in society. noise inll sorts of the office. not sure where it is all coming from. theresa may talks about being the vanguard and i am looking at and the spreads are beginning to rise. is this the next big market to move? is this what we should be looking at in the risk horizon? are that i would be concerned if he loses the skeptical asd i am to whether or not he will resign

referendums in the would lead to a widening with basis points and i am less concerned about the spanish risk and i continue to be impressed with the state of the spanish economy. the answer to your question is that the ecb continues to do quantitative easing and it means that we are probably not going to get a major widening of spreads. what we concern ourselves with tapers the ecb quantitative easing program. let's say 50 billion a month will have an impact.

>> talk to me about the infrastructure and you have expertise in this area. is there with investors and why many regions are trying to pass that on. and theave disconnects asset allocation intentions by the long-term investors, whether it is sovereign and funds. there is a clear increase and demand for infrastructure assets. you have to price in the look atct and you can the string of infrastructure deals over the last six months and the pricing is elevated. if you look at the new , thestructure building

investors do not have the fortite to take on the risk the new projects and that is where we have the disconnects. >> you have subpar growth and positive patches. thef we are right and target was the end of 2016, i againwe will see the euro against the u.s. dollar and exporters will really benefit from the weakness in the euro. this is the area and the european consumer consumption will remain stagnant. large industrial companies is an area to focus on. >> you touched on the dollar

if there is more pressure to do more to catch up with the u.s. euphoria going into christmas. >> to rehearse the arguments for the stronger dollar, the interest rate differentials by basisd of march, with the points and treasury yields i , that treasury raise rates will the dollar.derpin >> thank you. we appreciate your time. bob parker is a senior advisor at credit suisse. a quick look at futures here suggests that we will be stronger at the start of the trading day. wondering if other investors

have changed their mind about being bullish on equities. it does not look like it. more than 1% in some cases. .e have updates that will do it for us. this is bloomberg.

quirks you are watching "bloomberg markets." i am guy johnson. what are we watching this monday morning? the trunk team starts to take shape. president-elect names rnc chair reince priebus as chief of staff, and right-wing media owner as chief strategist. which man will have donald trump's ear? xi jinpingan