communities and and adjacent miller will serve as director of communications. and president trump says he is sticking with his campaign mantra after a supporter suggested otherwise. he tweeted, somebody incorrectly stated he was no longer using the phrase. that is newt gingrich. advisor that told npr that trump disclaims the popular campaign slogan. and the majority of voters want a new democratic presidential candidate in 2020, that is according to a usa today survey. 66% of voters most excited about a new candidate, about 44 of democrats and independents were excited about bernie sanders. that compares to 43% for joe biden. meanwhile, 62% said hillary clinton should not run again in 2020. and a lack of security is being

investigated as a possible factor in the mexico fireworks market explosion. officials say some of the stalls may have been too crowded, at least 35 people are dead and dozens more wounded. authorities say the death cold still could rise and badly burned children are being treated in galveston, texas. global news, 24 hours a day, powered by more than 2600 journalists in more than one to 20 countries. this is bloomberg. ♪ scarlet: live from bloomberg headquarters in new york. i'm scarlet fu. joe: and i'm joe weisenthal. scarlet: stocks are retreating with indexes recovering from

all-time highs. joe: the question is, "what'd you miss?" scarlet: the italian government may have to rescue monte dei paschi after they dropped their efforts to bring in capital. we will take a look at why this could be trouble for bond holders. and weighing in on potential changes for banking regulations could lead to large returns for wall street. thein a special sit down, jpmorgan ceo, jamie dimon talking about detroit's revival and his views on the incoming administration. we will review that interview, next. let's get you started on where the major indexes stand as we go toward the close. abigail doolittle is standing by. abigail: we are looking at declines going into the close. the nasdaq and the dow are lower and closer to the lows of the dave van horn is i'm a very small -- than the highs, very small losses.

we have the dow on pace for the first today decline since -- first today decline since the election. her first is the 10 year yield having a first weekly decline fed it comes in a big quarter for the 10 year yield. here is a chart of the yield, up 93 basis points, the biggest move on a quarter ever, tremendous strength after the election with investors thinking that the donald trump administration could be good for growth and there could be changes for the fed, so very interesting. this could help explain today's five-year, $5 billion tip option, we go into the bloomberg . we are taking a look, this shows us the history of the five-year option and we see it is covering a measure of strength, the highest level since april 2014.

these are inflation protected treasury instruments, so they basically protect against the threat of inflation. some investors seeing this with yields rising. and inflation could be on the horizon. we have another great chart from bloomberg, this suggesting that those could be overdone. five-yearite, inflation swap, a very forward look at those inflation expectations, and then the 10 year yield in blue. historically, these have shown that the 10 year yield traded up , then back down following the swaps. expectations are there, but it appears they could be starting to diminish going ahead into the future. scarlet: good stuff. thank you. , themonte dei paschi world's oldest lender, has abandoned plans, making a state

rescue likely. joining us on the phone is the bloomberg managing editor for finance and investing. thank you for joining us. what is the latest? guest: we are getting incremental news every hour. as you pointed out, the bank has confirmed they are abandoning plans to raise funds privately from the market. that means planning a restructure, the bank getting rid of bad loans, having bondholders swap them into equity, and equity money from equity funds from investors, so really the focus shifting to the government, which we understand is close to putting the final touches on a decrease that would theecree the message of government stepping in. scarlet: the state rescue is

likely. it is a matter of time before we hear from the government? guest: yes. it is not entirely clear when it will be. over the next few hours or a day , but the plan will give a sense for the kind of money that the government is lining up and could give clues as to the kind of hit some of the bank shareholders and bondholders will take my because under the bondholders must share part of the pain and burden. a lossuld possibly mean for households that have bought into that bank debt. joe: we've heard about the european rules preventing bailout, but to clarify what you said, it does allow for the government to come in, but there must be a hit on the part of the bondholders? guest: that is correct. typically it must be accompanied by restructuring plans for the

bank, they will probably need to look at business and think about what the long-term strategy will be to make it viable. and it would be losses for bondholders and shareholders, heavily diluted by the injunction. it needs to be ratified by the european commission and they need to validate that the plan will not -- competition benefits for the bank. joe: how much concern is there on the part of the italian treasury on taking, essentially putting the balance sheet on the ideningroles -- w significantly over germany, throughout this saga. is there concern about essentially confidence in the state balance sheet as it takes a more active role in propping up the banking system? guest: at the moment, it does not appear to have so much concern. the request went through parliament, it went through

parliament pretty smoothly. of course, what we will be looking at is how these companies, which could include other banks, will be managed in a situation where they are owned by the government. what kind of form that will take and how quickly the government will return them to private ownership. scarlet: and it is not a huge surprise, this was the most honorable -- vulnerable lender over the summer. after the ecb told him to clean up the balance sheet and they tried, is there able for the ecb as we look at the rest of italy's banks? guest: of course, the ecb came in as a regulator a couple of years ago and they have gone through the books of the bank and the lenders, looking at it closely and they put pressure on the industry, particularly in italy, to clean up. they want to resort the banks --

restore the banks health. it has slowed down the economic recovery in the country. the ecb has taken an active role. joe: does the government hope by getting this resolved, that it will be able to be a more active participant in stimulating the economy, getting lending again and health return economy to health -- help return the economy to health? guest: that is the ultimate objective. the detailed will be important, how these banks do it and is a restructuring. there has been talk about the need for consolidation, for example, and the laws the former prime minister pushed through to make the competent lenders turn those into companies. it has not led to consolidation yet. some of those gains that could restore the possibility coming

to the consolidation, which will potentially be part of what we see later on. scarlet: do we know what will happen to the ceo? his job was to crisscross the glove and look for investors to come up with the capital and he did not in that regard. guest: that is one question that we will have the answer to hopefully in the next few days, whether they will have the current management, or maybe it will need to be reconfirmed. we do not know yet. li wasrse, murali -- morel looking at the backing of the treasury at the time. it is possible he could stay on, it is just too early to tell. joe: thank you for joining us. scarlet: we will stay with banks, more breaking news. barclays responding to the u.s. justice department, which is suing the bank for deceiving investors who purchased mortgage-backed securities. they say they intend to seek dismissal of the doj claims.

barclays intending to seek dismissal of the claims that the bank had deceived investors that purchase mortgage-backed securities in the wake of the financial crisis. we will monitor this as the afternoon goes on. joe: coming up, we will hear from a ceo as part of our interview with the chairman of jpmorgan. he will tell us why midsized banks -- companies are first skier after dolphins victory. -- donald trump's victory. ♪

♪ joe: "what'd you miss?" our exclusive interview with brian moynihan from the boston office. david westin asked him about the u.s. economy, specifically if he

has seen a difference in the economy with customers, rather than the rally based around hope. >> bank of america having a decent sized customer base and to seeing $50 billion spending growth every year and growing faster, over the latter half of the year, those are good things. that means the economy is in good shape. and it is making progress. the difference after the election has been on the business side, the enthusiasm that the world is our oyster, whatever phrase you want to use, the enthusiasm for midsized companies they feel like there is more that will be done and they so better about the prospects of a regulatory environment in their businesses. they feel better about the possibility of demand. that will take time to come through, but instantaneously the consumer confidence went up and if so does the business

confidence. when you think about midsized companies, you and i, we can decide to do something or not do something, build a factory or so, and when we feel better, we will do it. that means things happen. people were hesitating and now i feel like, i just feel like people are saying, let's try it. >> do you see it in midsized companies, the midsized lending? >> we are seeing it grow. drawing more on our lines, putting the money to work. it will follow through because six weeks since the election and the timeframe is short, but people forget how much attitude is important for that group of companies. for a big company, we must always be going forward and every day we must figure out how to make more money, get more efficient, generate more revenue, take more expense out and apply more technology. midsized companies can make

decisions different way because they are privately held and when they are excited, that is good for america. >> part of your job deception is a macro economist. >> more a risk manager. >> as you look at risk, what are you anticipating in terms of the economy under donald trump? what do we know and what don't we know? what are the questions in your mind? >> way of the number one research team in the world for six years. >> congratulations. growth should be around 2% next year, which is better than this year. so that is in increase. and it would be a step up. so the fundamental belief of that has not changed a lot since the election. i think we believe the economy and the u.s. will grow and the economy in the world and it is on an upswing. it picked up, then fell off this

year and we think it is not picking up. it has been handled by the markets and by people predicting outcomes, which is interesting. the brexit, the accounting referendum, the french elections, the u.s. election, all of that stuff people thought, if this happens there will be huge disruption. the market disruptive then came back and said, life goes on. there is tremendous momentum and capability behind us. so the question is, with donald companiesection, the are talking harder, you see these going on. and the gas business, it is coming up. belief of our the clients that we talked to and the regulatory burden, it will come down and help do things more quickly. and so, all of that they believe

is good. there are other serious concerns, labor is trickier than people think. getting the right labor at the right place and time, it is tricky for people. inflation andage part of it is the right jobs, and a lot of wage pressure, so i think we will be fine, but we needed to be a lot of work to major that people are trained. missile defense, the big difference that happened is in the enthusiasm. if it falls through, it will be interesting. has notresearch team taken their gdp growth numbers up in response to donald. have the markets overreacted? they have reacted as if gdp is going to grow faster. >> this is one of those questions you need to always ask, they took it down a little repatriation is going to happen? it is an interesting viewpoint. i'm not sure that it will be

interesting to see how they think about it going for -- going forward. news can be positive, but it actually freezes people. they want to see what the tax reform might say, because they could be losing in advantage by doing something now. there is always uncertainty. solid u.s.ill be a economy and world economy and the risk factors are going on because the market reaction to the u.s. election. and to brexit, it has been behind us. it is not ahead of us. there's going to be another election or possible outcome. but i think it is very constructive. they have not raised them, because it is based on real items and trajectory and the confidence is rising and there'll be more demand and activity, you will see it going on. you can see them keep it in the present level, would be my guess. >> some people have said the markets have taken the good possibilities out of what we

have heard from donald trump, and not really pricing in the unintended consequences or bad consequences. where are you on that? what are some of the consequences we are not thinking through? >> i'm not sure you can say any presidential candidate or elected president does not have the same problem, which is there is a series of things prioritized, tax reform, the repatriation, immigration reform, the affordable care act and things like that that people are focused on. now you need to get them down. that is the trickier element. the alignment of the house and presidency will help, but that is the real trick. and these get harder when you get done for the past -- down to the brass tacks. the market enthusiasm is my they will at least try. we will see the follow-through. joe: that was part of david weston's interview with the ceo

of bank of america. scarlet: as we said earlier, the doj is suing barclays. barclays has said they will seek dismissal of the claims and they have rejected these claims. more on this developing story, this is bloomberg.

scarlet: barclays being sued by the u.s. department justice for deceiving investors. the doj said more than half of the $31 billion underlying the securities ended in default. barclays responded saying that they reject the claims and intent to seek dismissal of them. alman.g us is yo this was a surprise. what is different this time? guest: it was a big shock, they almost always settle.

typically, especially with the mortgage cases and the mortgage crisis that we went through in 2009 with all of these blowing up, they have been settling. they have been settling them one by one and paying a lot of money in most of the cases. the u.s. banks have almost all settled, bank of america probably paid more than everybody else, the total fines near $7 billion. some of the europeans have settled. there are a handful that have not, such as deutsche bank. the starting point was high, but then there are negotiations. joe: do we have a sense of the sticking point? was it price, do they think the government's case is weak, what is the reasoning for barclays? >> we do not know about the price as much as we know about deutsche bank, that came out at the beginning, about $40 billion

for the price tag. that is asking price. then there was debate and deutsche bank did not want to say that. they are still negotiating. with this case, we do not hear the starting price, but we know that the bank does not want to pay more than $2 billion, so it must be way above that. maybe they start with $10 billion and they cannot come to the middle ground where that could be or maybe the bank was adamant. how the cases are different and why this bank feels like they can win when others are settling, it is hard to tell. typically, thanks do not settle -- banks do not settle because they think they are right, they settled because it is so costly. and they want to go for certainty. joe: is there any possibility that they want to take this into a donald trump led doj? >> that is likely.

i thought about that when i saw it go across the screen. there is a new administration, which people think will be more bank friendly and bank stocks have been rising because donald trump has talked about the regulation and other things, so the department of justice is not as aggressive, maybe they think they will not pursue the lawsuit. it could be part of the equation. scarlet: maybe the doj was acting this way as a way to pressure barclays to come to the negotiation table and resolve it sooner rather than later. >> it could be. there are a few weeks left. scarlet: thank you. thank you so much on this breaking news. barclays seeking dismissal of the doj lawsuit, alleging that barclays deceived those letters that are just mortgage backed securities. take a look at the major indexes. four minutes until the close credit we do have a decline, so no record high. it has been a good trading day

overall as they get ready for the holiday weekend. from new york, this is bloomberg.

♪ scarlet: moments away from the closing bell, u.s. stocks

pulling back, trying to ease as we go into the holidays. scarlet: i'm scarlet fu. joe: on joe weisenthal. we want to welcome viewers who are alive on twitter. you can watch the closing bell coverage every weekday. scarlet: we begin with the market minutes, seven out of 11 major groups down, so as a month -- might guess, we are sagging into the close with a white trading. it did not seem like anything really -- prices. joe: it was not big action today. the only thing really moving markets was donald trump tweeting again. we have one right here where he mentioned the united states was greatly strengthened and will expand nuclear capability. until such time as the world come to a consensus on nukes.

it actually moved uranium. scarlet: content. when you look at ura, it quickly turned positive. it can go down .5%, but it did pair the losses. and uranium resources, uranium energy corp., all going higher. joe: a huge move. scarlet: if you look at the s&p 500 and terms of sectors, check out this out of bloomberg. four out of the 11 industry groups rose. you have health care, utilities, maybe a move into those defensive things like telecom, but that has been its own thingsy recently with that might be changed for the sector. and retailers and homebuilders, materials and textures -- tech

lares, where the leading ggers. joe: real quickly, looking at government bonds, another quiet day. we see the yields in the u.s. totally unchanged on the short end and on the 10 year yields, up. despite the economic data this morning, which was over all good, not a lot of action. scarlet: fairly muted trading. start with the euro, it did rise after the european central bank was cautioned not to wait a long to raise rates. but that was brief and the euro-dollar rate was around 1.05. and looking at revision for the court coming in higher than expected, but then again fizzling out. you can see how the dollar do not have that much momentum versus the pound, as well. joe: and on commodities, taking a look, we have the only real

mover today was copper. that was on news about brazil stepping up production of coffee. otherwise, like everything else, not a lot of volatility anywhere. crude oil and gold hardly were moving. scarlet: those are the market minutes. we want to take a dive into the bloomberg. you can find all of our charts using the function at the bottom of the screen. we are starting to see a pickup in manufacturing sentiment, the latest surveys from philadelphia and new york show optimism for future orders, those writing. you will see this at the end of the chart. whether it is the empire state or philly, the new orders outlook, this white line is at a 17 year high. the red line, the empire state new orders at a two-year high.

joe: you know who else is feeling good? republicans. scarlet: yes. joe: feeling good about the economy. i am looking at the consumer comfort index and it is great because it breaks down the sentiment about the economy by party. and the way the republicans feel about the economy is at its highest level since 2008. zoom in, you can see it. scarlet: there is a junk. joe: it shows how partisan affiliation has an effect on one's view of the economy. it may not be irrational. you probably believe republican policies will be better if you are a republican, but it is very striking. democrats have come down. and it is striking how much their sentiment has changed. scarlet: how pronounced it is. joe: here to talk about the data and what is ahead for the new year, we have the chief u.s.

economist for bloomberg intelligence, and bloomberg's fx strategic. survey data is surging, whether it is consumer comfort, the expectation components, everything where they asked people how they are doing, is it going to translate in the coming months to heart activity picking up? the critical question. as we look at manufacturing surveys that scarlet had on the screen, we see expectations for the orders moving higher and cap x plans moving higher. the employment components have been on the south side, that is where the rubber meets the road. it is great to feel optimistic, but money is where your mouth is when it comes to hiring new workers. this will be a test for the economy in the first quarter, because i do not think euphoria can hold up if we are looking at

the 10th it economic -- tepid economic gain. scarlet: we have seen the euphoria come off a little bit. the dollar not making those strong gains that they had been. >> we have a little momentum going into the next year. there is a tendency for the dollar to slow down, to peak. and trading down substantially. talking to the traders, muammar gaddafi -- the words are apathy and leave me alone. they want to get into the holiday weekend. joe: do where it things happen -- weird things happen over the next few days? what does history tell us? >> there is a whoosh that can happen in the markets at this time. especially now when traders step in and fill the gaps. now with machine driven

algorithms, and traders not being able to take positions, there is not as much liquidity that can have. next week will be primed for the opportunity. scarlet: in the meantime, the dramatic move has been in the dollar, moving to the strong side over the last couple weeks since the election. at what point do we presume the stronger dollar will really show up in the data, show up in earnings and take us down? >> one place it shows of is in the new export orders components. i have been watching for it to show up and it has not, so that tight lagally it is a time. we have seen dollar depreciation since the summer and i have been waiting for it to take off, that has not happened yet. we should be keeping eyes on it. this is a fed that is sensitive

to moves in the dollar, janet yellen, paying close attention to the currency. it led them to delay liftoff, although it back to march of back tor -- all the way march of last year. and it has led them to go more slowly. joe: from time to time, good news could be bad news. it could cause people to believe that the pace of hikes could go faster, which is theoretically bad for the market. this -- are we close to that? or are we closer to goldilocks data? >> i think we need to see a rewriting of expectations for growth and if we are looking at next year and people already anticipating 2.5% of real economic gains, i do not think the good news will be bad news, as you say. if it looks like we are getting

around 3.5% growth and we will have a flareup of pressure as a result, that will change the way the market is reacting. as of now, even after the strong third-quarter numbers, we are less than 2% growth, which is what really matters for the inflation outlook. scarlet: good context. as we make for good news to be interpreted in the u.s. economy, with the european central bank and bank of japan in accommodating mode my that is -- mode, that is nothing that said intooved -- fed has moved that zone. i was still looking at values as good news overseas -- bad news as good news overseas? >> what traders look at is a 4% move in the dollar, translating to 25 basis points. if the dollar continues on the trend, even more aggressively

into 2017, you might want to step back some of the rate hikes, because they will be priced in with the dollar. joe: outside of the fed, there is other policy in the world, fiscal policy and changes on trade policy and taxation. what are you looking as the big whates for next year as congress can do to reshape the economy? >> as we look at the first 100 days, there will be deregulation issues that will help specific sectors, but in terms of moving the needle, i do not forget having a big effect. i am watching for the timing of the implementation of trum pnomics. there are things coming down the pipe, will they be retroactive to the start of the year or will negotiations proceed and take so long that they will say, let's

start at the beginning of the county are for 2018 -- calendar year for 2018? infrastructure spending will probably come around october 1, so as we think about donald trump's economics, this is more of a 2018story, unless they do things that are retroactive. but you do not do that when you are not in economic crisis, so there is luxury of time in this case. joe: thank you. thank you, carl. scarlet: coming up, are we looking at a reagan administration in the stock market? we have a chart that shows history could be repeating itself and not in the best of ways. this is bloomberg.

♪ was good to the first word news. a state department official says to u.s. citizens are among people injured in the attack on the christmas market in berlin. 12 people were killed and the berlin market reopened with extra security today. andy german minister confirming -- and a german minister confirming that the suspect's fingerprints were found in the truck. they are offering a reward leading to his arrest. and a cleric is condemning the killing of russia's envoy to turkey. they also deny accusations that his movement was behind the attack. the ambassador was murdered on monday in turkey, and the turkish president has implicated -- in the killing, accusing his movement as having ties to the gun man. and the obama administration is officially ending a post 9/11

education system for immigrant men who come mostly from muslim countries. the decision comes at a time after donald trump's suggestions that he could be in muslims from the united states. they have not used the programs that 2011. global news, 24 hours a day, powered by more than 2600 journalists in over 120 countries. this is bloomberg. scarlet: "what'd you miss?" the tramp rally is showing similar -- trump rally is showing similarities to ronald reagan's rally in the 1980's. take a look. in 2016, we are looking at a rally post trump the victory, but will it be short-lived or continue? joe: joining us right now, the

cohead of market strategy at cantor fitzgerald. >> we do not think it will continue in the immediate term. the question i always get, will it continue into january 1? joe: what about six months from now? >> we don't think so. we do not think the impact will be quick enough for great enough to actually change the fundamentals all that much. right now, the rally is about sentiment rather than reality. scarlet: you are not a buyer of this story and you see the dollar as a huge drag and you do not see the current growth and inflation initiative really playing out. why are people so eager to jump on it? >> because it is a seductive narrative. we want to believe things are going to get better and we have had a lackluster recovery for years. the market has done well, but the fact -- fed has been

accommodated. we have not had a great main street recovery and people want to come around to the fact that we will get one. joe: this is the part confusing me, we have had an incredible market rally starting in 2009, over seven years old, so it is weird that after 7.5 years, we are getting so bullish. where have you been? not you, all of these people. >> we try to key off the credit cycle. it was very easy to be bullish in 2014, the credit market was looking great and earnings were growing. 2015 mother was a shift and we were more mutual credit and 2016, we were more bearish. all of the conditions are there for us to be very cautious. that is to say, lending

conditions are tightening. and with those long officer surveys -- loan officer surveys, there have been tighter feddards, and now we have a that is raising rates, very slowly and in a measured way. the fact of the matter is, we have tighter financial conditions going forward. scarlet: have treasury yields been rising unjustifiably? >> yes. scarlet: cannot this be the election narrative, because they were doing it before the election. before had been moving the election. we have been focused on the andationship between the -- aren't 10 year. when you think about the major actors, we have the fed, now the major actor is the ecb. that is omo's on the long end of the curve. in fed stopped doing that

2014. recently, they announced a very dovish go forward strategy. yields the bones -- bund come down, that anchors u.s. treasuries and it makes sense. if you are a pension fund manager and you can purchase treasuries at 2.5% and the bund only give you 30 basis points, which would you rather own? .ou would rather own treasuries right now, we do a dislocation analysis, one of our most dislocated relationships is that going back to 2014, treasury rates are way too high relative to the yield. we think this will come from treasury rates coming down, rather than the german rates raising. joe: you are comparing treasuries to treasuries, showing how much has gone across

the curve since the election. it is funny, because here is another thing -- theme, higher yields. where do you think they are going? where do you see the 10 year heading? >> not where they were. i think they were around 1.36 earlier in the year, we are looking at 1.2%. i am not in the 3% camp, because i think it does take fundamental progress and inflation that we will not get paid scarlet, you mentioned -- get. scarlet, you mentioned the dollar. how can we talk about the theme, itthing -- does not resonate with me. joe: very refreshing to hear another view. scarlet: everybody has bought into it. joe: they are clustering around 3%. scarlet: we are talking about donald trump's posturing on

china, calling them a currency manipulator, you say that has an impact, because china has been selling treasuries in anticipation of that and it is driving yield higher. >> as you mentioned, rates began to rise long before donald trump coming into office, that was andnd two things, the bund china. they have been selling treasuries for some time and now it has accelerated around the election bid and the way that the two-year -- election. and away the two-year moves, we think that is a factor that is helping to lift the long end of of the curve.-- o f scarlet: wendy you see things falling apart -- when you see things falling apart?

>> i wish i had an answer. we have talked about reagan redux and every analogy will fail at some point. it will become clear to investors at some point that valuations are not coming down and growth is not exhilarating to the extent people think it is. and financial conditions are tighter. how long does that take to go through the euphoria of the new president that is pro-business? i'm not sure. if i had to venture a guess it would be during the first quarter and perhaps within a month or so. joe: we will have you back and see how it goes. peter cecchini, thank you very much. coming up, when this celebrity's weight goes down, this stock goes up. do you know the answer? we will tell you after this. this is bloomberg.

♪ scarlet: on scarlet fu. "what'd you miss?" beijing suffering another smoke-filled summer. you can use the function at the bottom of the screen for this chart. it is measuring air quality in china and we have included different cities, so not just beijing. beijing is the white line, shanghai is the green line. it does not matter which city you are looking at, you notice a pattern. pollution is an issue in the winter and you can see it goes up every year, going into hazardous levels, with red shading here. last december, the issued a red pollution other. they did it -- alert. they did it again this month. it does cause social unrest and it may have more pollution related deaths than any other

country. and foreign companies have a hard time attracting talent, because who wants to live in that when you can go to singapore, for instance. it is an issue. they need to look at whether they will pursue growth or keep a lid on air pollution. joe: awesome we can chart that. scarlet: it goes back to 2013, the end of 2012. joe: another thing we can chart is the relationship between shares of weight watchers and news of oprah winfrey gaining or losing weight. she took a stake in weight watchers and the idea was to promote the company and it would cause the stock to surge. today came the news that the process she lost -- that oprah winfrey lost 40 pounds and now you can see the effect, the 20%. that 20% -- up

a reminder that she has been promoting the company and if you are looking at this as evidence that the weight watchers system can help people, then there you go. scarlet: her track record with her weight is it is very up and down. joe: if you can zoom out, you can see in october 2015, when it was announced that she took stake and the stock surged, but ultimately it has not done too much for the stock. scarlet: it is still higher than where it was. joe: it is an interesting relationship. scarlet: thank you for putting that together. coming up, we will talk to the jpmorgan ceo and what you think about business regulations. our conversation with him in next. this is bloomberg.

>> let's get to bloomberg first word news. a statement by the syrian armed forces. the northern city of aleppo has returned to government control, ending pay for your rental hold. the army has established security after the last rebels evacuated. the recapture of aleppo represents a momentous victory for president bashar al-assad, and a crushing defeat for syria's opposition. the ancient city has been divided into government and rebel parts and's 2012. security a u.n. council criticizing israeli settlements in the west bank

delayed according to the u.n. liaison committee office. donald trump called the resolution unfair to israel, saying it puts them in a poor negotiating position. vetoed. has historically resolutions that has been hostile toward israel. chancellor angela merkel said that she is proud of the german people's levelheaded response to the berlin truck attack. she arrived at the police office for an update on the investigation. local foreign policy has come under further attack as she prepares to run for a fourth consecutive term. germany took in more than one million refugees in 2015, most of them from syria and iraq. president-elect donald trump is suggesting the u.s. must greatly strengthen and expand its nuclear capability. he tweeted that "the u.s. must bolster its arsenal."

during the campaign, trump suggested that the world would be better off if other countries including japan and south korea had nuclear capabilities. global news 24 hours a day powered by 2600 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: let's get a recap of today's market action, or lack of action. u.s. stocks saluting into the close. -- swooning into the close. looking at industry groups, just a lot of back and forth. no one is excited to take up new positions. joe: a lot of shakeup in various asset classes. and yet another day of waiting for down 20,000. what is your message -- donald trump promised a crackdown on illegal immigrants

during his campaign. since she has softened his stance, but his policies can have an impact on business in the country. bloomberg businessweek editor megan murphy sat down with jamie dimon and asked about the rhetoric in the run-up to the elections, and how he expects american immigration policy to change. jamie: the rhetoric was terrible in the election, i go to -- if lgbt, weack, jewish, are going to support you in that diversity just like we did before. in the fact that you see the rhetoric, it seems to have gone away. about immigration, donald trump has said if you break the law, we will deport you. can the 11 million undocumented, that's the current policy of the united states. president obama deported 2.8 million people.

alwaysiness route has supported integration for that very reason. it is a pro-jobs, progrowth argument. get people argue when you rid of immigration, it is not that they don't like immigrants. sometimes they are more afraid of that american life is changing. you can be multicultural, but still support the american way of life. lincoln, we are here to rededicate ourselves to this nation, our can see of liberty is dedicated to the notion that allman are created equal. this is the only nation that is an idea, not a tribe. a a lot of people want to make sure that doesn't change. some people confuse multicultural that somehow we are going to change, that we won't tolerate different opinions or free press.

you can support that in the multicultural. -- that and be multicultural. europe,you travel in this is a deep phenomenon. we see it in france and the u.k. do you think this is a temporary phenomenon? do you think it is a generational phenomenon? do you think it will weed its self-doubt, or is it a more permanent movement on people re-drawing- people national borders in what has been decades of disruption in their lives? jamie: they were completely different forces for brexit. somewhere into immigration, -- anti-immigration, some were for open and free trade. i think if you go to europe, there is the same frustration on

income inequality, lost jobs. if you go to parts of europe, and 35people between 21 are not working. is that a sustainable thing if you have another generation of that? there is a legitimate frustration. a look of it is government policy. america,you saw in they want a wrecking ball want to these governments. the want change. they want something different from what they have seen. we want things to be better. we need real facts and analysis and detail to make that happen. cuba,t venezuela, argentina. something about europe, keep in

mind with this disruption, it had since world war ii, peace. there are benefits that people are reaping that they may be forget about. it is important to have peace in europe too. scarlet: megan murphy asked jamie dimon how he sees donald trump's back on immigration playing out over years. >> we did not need tarp. we did not lose much. how much do you think we lost in nine quarters after the crisis? we we made $20 billion. we bought bear stearns and saved 30,000 jobs. we helped governments, cities, banks, hospitals. i understand the concept. the american public saw a disaster. generally it was wall street and washington. they have the right to say, we

want a safe and sound banking system that does not take down my economy. that does not mean therefore all these rules and regulations are good. that is not accurate. a lot of the things in dodd-frank has nothing to do with the crisis. they were just democrats who put things that they felt like. it has a name of a senator on it, that is a bad part. barney frank agreed on some things with me about what should be in there. it is perfectly reasonable for people to recalibrate, re-think it. folks, we have not solved the housing market and mortgages. because we have not solved the

issue, which is among seven others areanks and afraid to take mortgages. time the bankruptcy was legitimate. there was nothing wrong with them. not one case which is a they were a bad person. they deserve a second chance. i would look at reducing credit available in the system. i don't want to bore you with the details. dodd-frank is in the bible. me, chuck schumer said to if we recalibrate and resynchronize, we can accomplish our goals. it is perfectly reasonable to see where you can do better as opposed to a knee-jerk reaction where everything put in place is good.

>> you have moved up in jp morgan. we now have a dominant for labor secretary that has quite from about against raising the minimum wage. jamie: i don't think so. what he said is that the government should be give verbal about raising its minimum wage. it should be a decision made at the local level. a club of businesses -- california and new york can afford $15. other states probably can't. i am not against states raising it thoughtfully. i am not in favor of the federal government doing it and imposing real hardships. if you can afford it, raise it. share the wealth a little bit. i told those at j.p. morgan, we are worried more about our lower paid people that are higher paid people. that will help

small business. by, you're to get not a bad person, that is how you survived. you will have less attrition. you can afford more benefits overtime. joe: that was bloomberg businessweek's megan murphy with jamie dimon last week. you can catch the full interview on bloomberg businessweek debrief. a conversation with jamie dimon tonight at 9:00 p.m. eastern only on bloomberg tv. scarlet: a longtime supporter on trump's twitting silo and on rex tillerson as nominee for secretary of state. this is bloomberg. ♪

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joe: longtime doldrums supporter and colony capital founder leaving the donald trump inaugural committee. he spoke with bloomberg and was weets whether trump's t were too reactionary, rather thoughtful introspection. >> i can assure you one thing. this president elect does nothing based on instantaneous

temperament. before he tweets or reacts, he has a group of april who have the expertise around him to advise him on the history of that statement. they can say whether he should tweet it or not. he is probably one of the most open to various points of view if you look at his choices in the cabinet. he encourages debate. i think you have a safe and competent set of hands. we are learning a different communication style. that style is transitioning from campaign to presidency. with thelso shocked communication style in a campaign. the training of that should not be interpreted as spontaneous or not well considered. he is a very thoughtful man. he's not going to do anything about. -- anything abrupt.

>> let's start with his pick of rex tillerson to be secretary of state. we have been talking about russia and the nuclear arsenal. much has been made of tillerson's connections to the russian president. when you look at the foreign policy brief, will rush of the highest on the agenda? tom: personally rex tillerson is one of the best picks possible for the position. let me give you the preface. if i were going on a safari in africa, and have lots of choices on who to lead me through the jungle, i would pick someone who has been through the jungle 1000 times. that would be the number one qualification. program the criticism of rex is that he knows most of the world leaders. he knows putin. he has dealt with the arabs in energy and oil, and he has

relationships. when you move the site potential conflicts of interest, which will be handled by a brilliant senate confirmation process, you have someone who has the cultural adaptability running a bigger organization and the state department. what he has run is bigger than the state department. i think the warrior himself is perfectly sculpted for the job. i think the relationship with putin, is that good or bad? they might begin, it has to be a good thing. -- in my opinion, it has to be a good thing. someone that has experience with them, that understands the history of russian, that understands the ideological components of russia, can only benefit us. in the middle east, for

instance, we have to come to some alliance with them to find peace in syria. that dialogue is not based on his point of view. that will be digested by congress primarily. the president will present a vision, and congress will agree or not a great. out in that jungle, you could not have a better athlete than rex tillerson leaving a foreign service of provision in a bureaucracy that he knows and understands. >> we talked about the newness of his diplomacy style. can rex tillerson expect there will be messaging from the president that can run counter to what he is pursuing? something like rick perry, who will have to deal with the issue of nuclear weapons. you will find it will be terribly unified. -- firste first tax

asks of these president was to unite the constituencies that was never-trump. already heuencies has at hand. you need to incorporate all of those points of view. meansringing -- that bringing the advisors who are better than him in those individual disciplines. that has been his task, right? he has hired the best architect, the best contractor, the best sculptors, and orchestrated them together. it hasn't been his vision alone. it has been a beautiful melange. you will see him build symphonies, not built his personal point of view. capitalt was the colony

founder and chairman tom barrack . scarlet: what you need to look out for in 2017. this is bloomberg. ♪

scarlet: "what'd you miss?" bloomberg intelligence has released its 2017 outlook, and we look at what you can't miss in different sectors. we look at onshore and offshore drilling. joining us is analyst andrew cosgrove. give us your best at what analysts should watch for 2017. andrew: the focus this year in the oilfield services some sector is u.s. onshore it has been like that in previous recoveries. typically land drillers like

patterson have been the winners. frack's and stocks like fairmont central were the winners this year. as you go into next year, there are beaten down sectors that have been out of favor. they include offshore drillers. if you get some sustainable oil price next year, that is something for some sector to look at. joe: what are the key regulatory things to watch now that we have a change in administration? what policy moves could have an impact on those drillers? andrew: at least from here in the u.s., there is not too much in the near-term. if you continue to open up places for u.s. onshore, potentially more natural gas development. you have seen the back and of the natural gas curve shift because of trump wedding more

drilling happen. from an offshore point, nothing changes. most of the collagen change and has been in the gulf -- most of the concentration has been in the gulf of mexico. the stock of banning offshore drilling was not in the near-term horizon. scarlet: what about oil prices? opec agreed to reduce production. the big issue is whether we will see compliance to those rules. what impact does it have on the drillers? andrew: 2017 was characterized band.to 50, and that we are looking at a jump from 50 to 60. we were modeling somewhere around a 75% compliance rate, even if production reaches 33 million barrels. ticket inventory drawdown in the

second quarter progressing through the third quarter. it gets a little bit hazy through the back half of the year. they will have to keep production low. as 2018 rolls on, there are risks of a surplus emerging if they ramp up to where they are now. the narrative is more or less constructive outside of something zogenix factors -- of exogenous factors, like saudi arabia or kuwait increasing production from their zones. joe: coming up, what you need to know for tomorrow's treating day. this is bloomberg. ♪

scarlet: breaking news from the cboe, edward tilly will take on as chair and ceo. william brodsky, the chairman

will be stepping down. edward tilly will take on as chairman and ceo. brodsky,, susan phillips, and even martin will all be stepping down. in terms of coming up tomorrow, vladimir putin's annual news conference in tomorrow starts at 4:00 a.m. eastern. that was supposed to happen this theing, but the funeral for turkey russian ambassador took place. 10:00me sales tomorrow at a.m. eastern time. joe: that is all for "what'd you miss?." thanks for watching.

>> you are watching "bloomberg technology." syria says it's strategic northern city of aleppo has returned to government control, ending a four-year rebel hold over the city.

the army says it reestablished security after effectuating civilians from the east of the city. it represents a momentous victory for president bashar al-assad. president-elect donald trump suggests the military must "greatly strengthened and expanded nuclear capability." he sent out a tweet saying that the u.s. must bolster its arsenal until the world comes to its senses regarding nukes. he named sean spicer as u.s. press secretary. jason miller will serve as director of communications. trump's campaign manager kellyanne conway will serve as counselor. a vote on the yuan security council resolution -- u.n. security council resolution criticizing israeli expansion. donald trump caed