in the bank you need to have chilling dollars at a loss as america's casual positive you know you have to have most of the population thinking the exact opposite running on the spinning wheel trying to get cash flow positive for real like they think that they can't have any debts or o.e.d. money because otherwise they're some how a loser might not have a model for this is called a casino so most of the population in america lives and jumps to see no good leg ok they've got the casino where they are deeply in debt they think that the pay that off so they go to the casino they get deeper into debt but that just goes to the sharks and the mafia and jamie dimon what they should structure their debt and sell it on the wholesale market used a cash flow to go in finance and build a casino and then get other people to come in and pay your debt for you yes and right off the big tax losses on the depreciating asset that is the building allegedly so so however it trumps theory of i won't be here is that he's expecting a second term and that

it is all about the u.s. dollar and what then interest rates mean for the u.s. dollar. very big question. have thiss year would long period where the fed had been raising interest rates and emerging markets had been able to shrug it off. if we see more fed increases next year as the fed trajectory has suggested, that em turmoil may spread to be a big thing for 2019 as well. brexit, issues in europe have bulls and bears see these issues playing out? malcolm: there are too many in the air. i don't know who could call brexit right day to day at the moment. there is the other european slowdowntaly and the many are expecting across the eurozone. will the ecb ever get to normalize its policies because it looks like we might be slowing just as it was meant to be exiting some of its more extreme policies. the same could be said for japan with the effort to reinflate the economy. there are still throwing money at the economy hoping to break that deflationary mindset. across the world there are so many bulls in the air. the markets are so big these days, 20-30 years ago global ma

the dollar would strengthen some of the risk assets. t e.m., we always talk about dollar, dollar, dollar. you talk about em currencies that are sensitive to euro weakness, and that leads you to pick certain em currencies over others. tell us a bit about that, your preferred em currencies for getting the most alpha, bearing that in mind? on themy colleague ethics strategy side, we looked at the g10 currencies. and you can block them in terms of characteristics. some trade for the risk environment, some that trade oil. obviously, some that trade for your dollar. those currencies in the european space, generally, when you have got declining euro-dollar, they tend to underperform in the em world. currencies like that. back to view, linking what your same with regard to euro-dollar, we have got euro-dollar going to a new low in q1 next year. they will not be the place to play the emerging-market recovery, but there might be some places in latin america, for example. manus: thank you, very much, chris turner, sharing your thoughts with us, hea

the u.s. dollar, up one third of a percent. the bloomberg dollar index at 105. vid: thank you, kathleen. australia just getting underway. we are making our way through the alphabet. -- we arecations called higher, but 20 points there. 2.5, roughlyg at a 2.5, 3% based on fair value pop on the nikkei. about 20,000 is what we are looking at for that index. up 0.8%.ures the fx markets, a big headline about an hour back, a u.s. team is set to be traveling to china for trade talks in early january. that is a bloomberg exclusive on the website. higher on the aussie dollar from the cash close in sydney yesterday. dollar-yen trading at the very high-end. dollar-korea, 11.25. consumer confidence back up above 97. we are looking at gains across the asia-pacific. that's a quick look at markets. lots of other things happening in the world to help you get caught up. your first word news. ed: president trump expressed confidence in treasury secretary steve mnuchin and the federal reserve, moving to calm markets amid reports he discussed firing the fed chairman. he called mnuchi

a cable it has support from the dollar leg. dollar weakness, cable does ok. wn to the vote. there are the three scenarios of brexit. referendum, does theresa may survive, general election? sterling heads higher. slimal brexit, a possibility. only happens if the government once it -- wants it. there are people who talk about legal certainty. i think it is unlikely. what about general elections? i don't think the tories will want that. no conference vote will probably fail. ory vote this deal through you get a second referendum. right now, we are all treating everything with the same probability. nejra: cable ends the year where? euro-dollar going higher, we are talking about 140-150. nejra: bullish on cable. great to have you with me this morning. that is it for "daybreak europe." , tunee traveling to work in to bloomberg radio. live on your mobile device. inill be joining you there just over 30 minutes. this is bloomberg. ♪ good morning. we are live from our europe in headquarters here in the city of london. i am anna edwards. stocks putting in a mixed perform

the last 48 hours. on thei am focusing dollar. i put in the bloomberg dollar index. today is whether the fed should be listening to what happened to the dollar this week. it is heading for its worst week. what does the dollar tell us fed? the it has not been a good week. it has not been a good week for european equities. interesting that without divergence in european core yields against the 10-year treasury yield. yield movesbund higher. we just that interesting news about easing measures from china, boosting tax cuts, easier monetary policy. we will deftly have an international perspective in the next hour. this is the high-yield etf, the retail response in distress paper. this is coming on at the end of september. these are what are called cases. these are really elegant. at standardk deviation, which is basically the size of the move. this is 3.8 standard deviations. deviation isandard the rule of thumb. standard deviations is where you start to use the p-wor d. get thererting to with three .8 standard deviations on the high-yield etf. nejra: 5:00 a.m. all about

the dollar has gone up a lot this year. s in better shape than nearly everybody else is. but it is rolling over that will be the story of next year >> it's also yield play as well. in this environment where other central banks are turning dovish, the hunt for yields continues. that's where you find it right now. >> for sure. we're taking yields off the highs again. i think the yield story is still solid for the first quarter. >> all right, kit. thank you very much for joining us kit juckes from societe gener e generale. >>> leaders have been gathering for the european council roundtable we'll leave you with some pictures of that also coming up, asian stocks are sinking as china retail sales growth falls to its worst level in 15 years. more on that after the break there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 c

is the dollar overrun? that is the mood for the market.f you get a hike from the fed, do you want to be positioned to set out the dollar? see re looking at the next n -- -- ntse up. relief.e bit of the world index is also there. we are in contraction territory in the world. of this morning, in theted to buy the dip market because of markets are overpricing. good morning. how are you doing? nejra: i am doing well. it was, the lowest since april. at one point, underperformance in health care, particularly, and a lot of tech stocks. banks in a bear market. s&p futures bounceback, up. a bad debt on friday for european and asian equities and could see a bit of a bounceback today. the 10 year yield, we saw a drop. 2.8 nine a handle. the fed is an focus. the market is preparing for a dovish hike. if we get anything else and not a change to the dot plot, you could see more curve flattening. a loss of about 2.7%. when you see concerns over supply current a check of the markets in asia. juliette saly has more. boosted by the uptick in you as futures

meanwhile, we are the dollar weaker against the yen.e saw it again just once in the past 10 sessions, that yen firmly been. japanese equities dropped into a bear market earlier in the 10 year yield down to basis points. so we are seeing money move into those safe haven assets. crude, we saw a drop below $50 a barrel. , somebouncing back positive sounds from russia in terms of another opec meeting. down 3/10 of a percent. yvonne man in hong kong has more on the markets. good to see you. >> good to see you, naral. -- nejra. a stunning reversal on wall street, but japan is the clear outperform or. as much as 5% earlier this morning. theselly has been oversold conditions that some say have liked to this surge here today. some are saying that perhaps the biggest rally is going to last. constantly giving up again that these games we are seeing are a perhaps more technical rebound something that changed. contracted for the first time since 2015. we're really seeing the effects of slowing growth. taking a look at some movers, russo here in hong

the dollar share is fairly proper. >> good stuff. urn peter coy of bloomberg businessweek. futures recovering as trade tensions simmer in the background. more on what i am watching. this is bloomberg. -- jpmorgan had a note that talked about what investors need to know going into 2019 on hedging. they wrote, markets are in a state of flux at the moment of market in liquidity exasperating market moves to address this and thisct our portfolio from volatility headwind. we recommend a range of options structures across asset classes that would benefit from a rise in volatility. let's ask an expert. joining me is amy was silverman -- amy wu silverman. you are who i call when i want to know how to hedge. >> the first thing i would say is the irony is nobody ever asks us about hedging until we see a month like october. then all of a sudden the questions come in. the second thing i would say is, the you look at s&p, relative cheapness of put options, they are very cheap. that is a function of the fact that we have gone down so much. i call it

we expect the u.s. dollar to weaken will help the aussie dollar rise. t the aussie dollar to head back towards $.80 towards the end of the year. we think global growth is able to stabilize this year. we get fiscal uncertainty and maybe the aussie gains ground later in the year. juliette: just very quickly i have a chart showing essentially company profits growing faster than wages. we had the jobs number a couple weeks ago where it essentially it was mainly driven by people getting halftime jobs. at what point you think wages catch up to what we're seeing from company profits, and therefore boost consumer spending? just very quickly. tony: yes. labor markets continues to strengthen. we need to see some improvement in the services sector. it will be slow growing over the course of the year. on technology, construction, we expect wages back towards 2.5% but it will be gradual. juliette: all right. thank you very much, tony morriss. have a great new year. next, a look at what is in store for equity markets in the year ahead after a painful 2018. this is blo

how does the euro-dollar look to you? think it could shop around for several more months, probably because while the fed sounds more dovish, economic data hasn't fallen off a cliff. it's the equities market hit, not the data. matt: this is interesting. a lot of people have started to come out and agree with donald trump. they think the fed made a policy error. doesn't someone you think that. kit: not yet, no. i was trying to think this morning, but this is more like 1998 when the equity market fell. the fed cut rates, the economy when gangbusters. then we had a recession. how much should we pay attention to markets when some bits of the equity market have gotten over hot? i don't know. the broader challenge is this, how much of this year's growth is borrowed from the future because it was just largely a function of a fiscal sugar rush that's now over? matt: that's a great question, one that investors are contemplating, as well as jay powell. kit: the more is temporary, the more it's borrowed, sure the euro went down and t

the. five billion dollars. in that mood and twenty five percent of supply of like wayne this means that if basis custodial mechanisms are somehow hacked twenty five percent of the entire light coin money supply which is four hundred twenty five million dollars worth would be in the hands of the hacker it also means that a significant number of users are not in control of their own private keys diminishing the value of using a crypto currency in the first place the money may as well be sitting in pay pal so this is an interesting topic especially now with the anniversary and the movement to have people take delivery of their keys the private key initiative as a way to thwart not only the risk factor but the derivatives risk of wall street using their naked short sells and other derivative says to manipulate the price and you could point that there is a lot of risk to this market but you know when we started covering big coin the entire crypto market in toto was maybe five million dollars that was it that was a to

that could limit the dollar. ng on it not having such a great year, but we are reasonably upbeat. shery: add the fact trade tensions between the u.s. and china are easing, and it means further downside pressure on the ust? -- u.s.d.? >> we have had a bounce in the aussie, kiwi, everything except the dollar, yen has weakened against the dollar, but it is a sharp response. i guess the asx market has been mixed. the aussie hasn't gone on with you have tods, but regard it as good news. at --only time, a 60 day extension to come to agreement on the intellectual property, which is a difficult topic for china to address to the u.s. satisfaction, as we saw from that report that was very negative. it could be a postponement. in the near term it has been taken as relief for risk currencies, asian currencies. yuan seeingffshore a significant gain. after november it was a sideways trade for the offshore yuan. this chart showing volatility is still there, implied option volatility, pretty elevated against real-life volatility.

i think the dollar -- the next big move on the dollar i've been saying this for a long time. it has a lot to do with the deficits, the dollar core relates very well with the size of the twin deficits the dollar goes down and i think that the dollar could be under siege. there's no way that we would have the dollar at this level if we didn't have the global reserve currency status. china has been making moves definitely to try to come into that club. they've been buying oil futures in their own currency this year for the first time and got up to double digits. that's a mechanism to show you're of that stature there was an official at the ecb. i can't remember who he was but he was saying we want the euro to be currency good luck with that one. i think what i've been talking about the last few months remains an important theme and that is the outperformance of the united states stock market was truly almost historically unique it topped out january 26th and then they all fell together, the u.s. and the world, into may and then a very strange thing happened, the u.s. stock market

how do you know when the dollar has peaked? fact everyone wants a fed pause, dollar could still rally, rates could still go higher. we just look forward. rishaad: you did do three months afterwards. [laughter] pedro: we tend to look into operating reasons. if the u.s. of economy is surprising the world in terms of growth, and this relative game has been a no go for the rest of the world. data surprisingly upside consistently, european markets, disappointing. we are seeing the u.s. economy slowing. growth to 2.4% next year. the exit rate for next year will be 1.9%, which will probably be close to trend. i think the operating reasons for the dollar to continue to get stronger are fading as we look into next year. the other half is interest-rate differentials for the fed. jpmorgan holding non-consensus view for two -- for 2019. some of those, we are calling the broad dollar to be flash. rishaad: you come from south america. let's get a sense of what is going on there. three big stories, venezuela imploding, argentina, lots of polit

assets and the dollar. e are going to seem to quarter and coming year-end, and month and for 2018 is the potential for a large dollar by going through the market. if that happens it will see a runoff in e.m.. portfolio managers have been putting on that position, and they will start the year in the red. vonnie: would you be comfortable with recommending that daniel? >> i agree with vince. it's a dangerous trade into a massive maturity ward -- war over the u.s. dollar. the debt in the u.s. market could pile up into the u.s. dollar. there were perceptions of the dollar would be low in interest rates would be low and it's a dangerous position. emerging markets have fallen are verylly, but they far away from the corrections that we have seen historically in a bear market for emerging markets. and those maturities that we in u.s. dollar debt and local currency will be refinanced at higher rates than what we are seeing. and impactsiquidity on equity important. 2018 as a revisit parenthesis, we need to go back to r

i don't think the dollar will continue to rise. i think that is a general view on the dollar. talking about emerging markets. what do you do with the more immediate markets linked to china? luca: it is difficult to say because if you look at a country like taiwan or korea, they are very dependent on china but are also competing with china. cyclical.ery you need to expect acceleration of growth. that is led for us, the chinese economy is actually more attractive than other parts of the region. isncine: going back to iran, that dependent on which way the elections go? seeing think we are south africa moving very slowly in the right direction. we have to be patient. i think there is good value and i really believe this is a story , coulduld be very potentially be a surprise for next year. francine: thank you so much. downfall. dramatic . began 2018 on a high, allegations of corruption and money laundering have wiped half of its valuation off. we discuss that next. this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." let's get straight to

in crypto as part of an upgrade it was worried would take a toll on the market quote the five billion dollar number represents five percent of all because eight percent of the total supply of ether and twenty five percent of all light coin so coin base didn't announce this before they did it partly because they were afraid hackers weren't trying to somehow get inside it and steal that but also they were afraid that it was going to cause. market to crash like that somehow they people would be able to see their wallet because it is open it's an open ledger so people can see these huge movements of coins. it only cost like a dollar to move that five billion dollars in big coin but the interesting thing is that jackson palmer who does this excellent series of you know crypto analysis on his you tube channel he looked at this and pointed out something that's really important to look at and think about what is it coin and why you should hold it he said for those wondering so what about this five billion dollars of bitcoin that moves on twenty five percent a supply of like coin this means that if b

us understand where the dollar goes. i ask you that through the prism of the fed. as they were this year? u.s. dollar,f the we believe it will start to fit. some swing back to emerging markets. are going to be a lot of versions, especially when u.s. markets are not doing so well. as we have seen over the last few days. asian markets will be markets.sh and their they are likely to mention, to rely on how conditions are and how uncertain global conditions are going to be. >> we are going to be seeing a on. which is going to carry being more hawkish. is going to bec going in the other direction. what do you make of that? divergence play out? >> the main difference between is china is china committed to meeting its growth target. 6-6ng sure it is between .5%. overall, we expect them to continue make adjustments. also fiscal policy. asn though it will not be broad-based as a week ago. important will be whether these measures reach the target audience. pmi. much stronger for the large carpets but not so much for the smaller corporate spirit the stimulus and cuts, they ha

the problem is, you've got to deal with the dollar. ive a lot of our investment themes, everything you just mentioned, currencies, et cetera. we think those areas are cheap but remember, if our economy -- let's sail the fed pauses, china just stays still and we don't have to deal with the differation, money could still flow here and not withstanding what the central bank is doing that could make the dollar stronger. >> my one wild card is whether we become, whether the market becomes more focused on the fiscal position of the united states and the return of the trillion dollars deficit. it was always looming out there in 2018. it didn't manifest in terms of the market because you've seen rates move lower. i just wonder how that's going to impact something like the credibility of the u.s. dollar. the dollar long-term has been in a secular, bear, down turn. >> if you really want to dial it back decades. >> as the world goes to other currencies, it had a little pop this year along the way but i think the deficit question is lingering out t

i could be wrong and you could be very bearish on the dollar. mber three, we've had a huge selloff in the u.s. if the numbers are right, the u.s. is trading 15 times next year's earnings. actually, not an expensive market anymore. so all of those things make me think that this big emerging-market trade is going to turn out -- i'm not saying it's going to be a disaster, but probably less good than anticipated. 2018's been a low bar. mark matthews, a lot more to talk about with you. things have picked up a little bit. set for japan, basically at session highs. use futures also pointing slight -- u.s. futures also pointing slightly higher. we'll have much more with mark matthews, talking about heads of the fed. mr. powell faces a barrage of tweets. how does this all proceed in 2019? kathleen: later, the top tech trends in 2019 from e-commerce to the new digital economy, all coming up on daybreak asia. this is bloomberg. ♪ david: welcome back. you're watching daybreak asia. i'm david ingles and hong kong. kathleen: and i'm kathleen hays in new york.

the key driver will be the dollar. coming off that tightening acceleration and shifts to easing, that is good for gold because it is bad for the dollar. mike: -- taylor: i have one more terminal chart, stepping back into the technical. 200 day moving average. what is the significant of gold trading right at that line? mike: the significance is back at that level, but also this period here below the 200 day moving average is the longest day below that mean since the day grass in 2013, which means it is ripe to get back above. that will be a pretty significant indicator. what you see for the whole chart is it is stuck in a fairly narrow range. this is the narrowest for 36 months since 1999. in the far left, this is a distribution of price. we call this a bullish pea pattern. it is stuck in the middle and likely to extend higher. it is going to need some kind of fundamental reason to go back down, like a strong dollar or stock market bounced and decline, which seems unlikely. taylor: all things bloomberg commodities. we co

his shop biggest as far in the world he gives the u.s. dollar to eighteen to twenty four months then sees a thirty percent fall comparing it to the turkish lira this is a bridgewater right dahlia all your thoughts well i'm pretty negative on the dollar i think that you know people are going to when they have a panic people run to the u.s. dollar is that's a trade to do but if you think about. you know what i've been saying for a number of years is you're going to get the emerging countries like russia china and india that will come up with a currency that's based on exchangeable commodities like oil copper or silver and gold not backed by a printing press it's on fire because it's absolutely worthless and people will say take your feet dollars and shove them because they're really not going to have any value i mean when you see pieces of art trading near what seven hundred million i mean this is rampant inflation and now you're seeing a global collapse in property prices so it took a longer period of time to realize what's going to happen but ev

in that case, the u.s. dollarill -- again because -- you buy it in order to protect your portfolio think is of concerns of economic growth. we could switch from one status to the next one. regarding concerns in terms of economic growth. it's very difficult to be absolutely clear-cut regarding the next trend because of it. nejra: but we will watch those dynamics. they will stay with us. coming up, carlos ghosn faces christmas behind bars. he's been arrested for breach of trust. we're live in tokyo. when you're traveling to work, tune in on bloomberg's dab digital radio. this is bloomberg. ♪ nejra: 6:19 a.m. in london. let's check in on the markets. a weaker session in asia following the u.s. yesterday. the nasdaq closed just chart of a bear market. is the dollar given the ultimate rebuke to the fed? it's headed for its worst week in 10 months. the vix hit 30 yesterday, closing at 28, so volatility big and high in these markets. wti bounces back, but we see losses of about 9%. equities will open lower, too. japanese

what about the dollar? more on currency moves, bring in our research director at the jerome levy forecasting -- the research director at the jerome levy forecasting center. >> i think the market was already in a position about digesting a lot of things. when you look at this year, the rest of the world, emerging markets, europe, they have all been taking. they are catching up to the earnings outlook which is being downgrade and the broader economic outlook being downgraded for next year? volatility. so the significant outperformance for particularly em after underperforming the first nine months of the year. is there some fundamental change in dynamic you see here? >> not in the long-term, but in short-term, e.m. is down so much for the year and the u.s. is catching up to it. romaine: strong dollars. as was the story for most of the year. the dollar has weakened a little bit or flatlined a little bit. as we get into 2019 and the trade picture changes or progresses to some degree, is that story over? do we g

>> the market wants to sell risk and dollars. the best ways is to sell dollar-yen. not just because of japan. because of where we are in the cycle. u.s. data at the highs. that must come down. good news. opportunity to fade. we had dollar strength on the back. it was not as dovish as people thought. within a few hours, that was reversed. we have substantial long dollar position built up. in risk off, dollar goes well. we are not in that cycle. we are talking about slowdown, growth above zero and when we go below their, recession territory, things change. that is when dollar does well. if you want to short the dollar, but you have a slowdown, do not do it above everything. dollar-in is clear. -- dollar-yen is clear. if it is a recession, trade works well. i would be short rather than long at this part of the cycle. guy: can i ask you about your level of conviction in trades you are proposing? people are saying, i want to see january and february before making conviction calls for 2019. are you in that camp? jordan: a lot of shops put out there trades in december. we h

the aussie dollar falling reasonably steeply. the markets now with sophie kamaruddin. sophie: as you pointed out we are seeing that decline and the aussie dollar heading towards a 73 handle against the greenback. popping earlier your on chinese officials commenting on trade talks with the u.s. saying the trade meeting was successful and china will look to implement items agreed to. that support being wiped out in the wake of the australian gdp numbers coming in lower than forecast. aussie shares also on the back foot, extending the kleins. the lowest -- extending declines. today banks are among the biggest drags. this, as bonds are rallying. we have ahead of the aussie gdp we had more bull flattening of the aussie 310 year he curve. quite a bit of pessimism coming through when it comes to aussie assets. taking a look at what this means for the market, let's look at japanese stocks. earlier we saw a brief pairing of losses. both losing more than 1%. this, after tokyo shares wiped out $133 billion market value tuesday. seeing decli

the day. just down .3%. topix likewise. -- dollarg making a comeback against the yen, just shy of 1.113. some of those movers, mitsubishi gas on the way down as it is said to be reducing its stake in a saudi company, selling that stake. that is what we have. nissan, we have been reporting on that as well. the break is upon us. ♪ break is upon us. ♪ kong, 1:299 in hong in sydney. leading figures in washington classified cia briefing has convince them that the crown prince of saudi arabia played a role in the killing of jamal khashoggi. bob corker said that if a jury were to consider the case against the prince, it would convict him of murder went and half an hour. he said riyadh must accept responsibility for the killing. >> whether he directed or not, i ,hink he did, he owns it because it was an agency that he directed the carried it out. they have shown no ownership of this issue whatsoever, and it is just inappropriate. iran has threatened to close the straight of hormuz if the u.s. shuts off oil exports. he said no crude will leav

the dollar in 2019. ise, which currencies when in that situation? despite the uncertainties we are seeing in the eurozone, i think you have to come back to the fact that the current account surplus status of the eurozone has a benefit. you go back to those traditional risk off currencies, and we're back towards the japanese yen. we haven't talked about the and today, but i think it's interesting looking at some of the components, you can actually argue there is a fundamental case, which is better than many in the market are receiving, as well as a potentially risk off scenario, which will help to precipitate a much stronger yen for the course of 2019 as well. stronger yen by us. i'm going to give it and take it to asia. i want your thoughts on the indian rupee. we have a new r.b.i. governor in place. with all of that in mind, is there any reason to be positive on the rupee from here? oil prices might be one. jeremy: you took that word right out of my mouth. that is one of the obvious factors in terms of t

crude war that is going on the dollar troubles waged against china but as well it is also part of the sanctions the. initiated against iran on november fifth now. that eight countries had waivers on his. and china was to be one of those countries so by arresting many in one jew and. now can they you know did this at the behest of you know. and now the united states is seeking extradition of million went to the u.s. now she is the chief financial officer. for i and also the daughter of the founding c.e.o. of so i think they're trying to indicate that can. china even though it may have an additional waiver with regards to buy oil from iran the united states is going to penalize it in other areas such as in the telecom industry this is a i think is trying to ratchet the tension with china. to miss when jews credit she has indicated that she does not want this to be too public she is trying to keep this below the political radar hoping that this situation can be resolved between the two governments however given the she was arrested at the behest of the united states in men who were it do

the dollar is down 0.3% this morning. we have been asking how many rate hikes can the markets withstand? mark: the really big answer comes from the oil market. oil markets are falling at this pace, it is a deflationary impulse. it is cheaper energy for many companies, it is falling so fast it is worrying. and it is negative on the u.s. economy now that it is an export. growth next year will hold up ok. i do not think equities will struggle with a couple of rate hikes. there may not be rate harks is there is no inflation with oil markets falling rapidly. it all comes down to the view on oil in your outlook. matt: i am looking at the italy-germany spreads, and we have come in substantially. a far cryking at 259, from the 400 we were approaching when italy remained defiant. eu and rome day agree on a 2.5% budget deficit? mark: i think today is the day we get a headline, what it will be i do not know. we have seen this steam for the next -- for the last couple of weeks. as we discussed previously, italy's that problem will ris

this is the dollar spot index. the stoxx 600 in europe, selling wesettling down, 3.1% as work our way through the auction process. this is "bloomberg." ♪ is "bloomberg." ♪ seeing theare selloff continue. the s&p 500 is at 2635. 64 points lower. the dow is down 2.6% right now. the nasdaq index bounced a little, but still down 1.8%. lots of treasury buying. the tenure is up -- the 10 year is up. some yen thing as well. to discuss all of the factors that are pushing all of these asset classes around, we're joined by sean donlon in washington, d.c. taking thisstors thursday to sell everything? last tuesdaypicked in the month of november and they picked the number of october -- october. a complete repositioning and repricing and rethinking of both the valuations in this market and, quite frankly, the valuations of the economy both here and abroad. vonnie: is there anything the president could tweet on trade or relations with china, even though we got that development from this morning that makes it unlikely, that might s

with the gluck at the dollar index is down 5/10 of a percent. donald trump recently tweeting that the fed does not understand a strong dollar and trade wars. we have currency climbing on that news. let's switch up the boards. seven of 11 s&p sectors are in their territory. energy leading the way down more than 30% from the highs this year. some of the movers as well. money moving out of defense stock household products, we have procter & gamble. its lowest level in two months. kimberly-clark, behind kleenex could and huggies. it dropped today more than any full-day drop since may 31 as well as couric. down more than 5%. these defense stocks are really taking a hit. as well as tech, facebook a little brighter today. of more than 1%. of salt, of course. 41% since its july all-time high. today, downng hit 1%. raising some low closes down within 5% earlier in the session. this is the wall street journal says the sec has asked amazon as few companies provide digital revenue disclosures. perspective and breakdown. thank you. adding to that worry, presi

the dollar it not been up 8%, the dollar would be up 20%. somewhat unchanged on the year, but still a safe haven assets depends on how much bonds were. on the year, the yield is still higher. mike mcglone, thank you great coming to us from bloomberg intelligence. let's check in on first word news. trump ispresident doubling down his decision to withdraw u.s. forces in syria. residence at his efforts is not what he calls never-ending war shouldn't come as a surprise because he campaigned on the issue. aftereets coming is public and senator lindsey graham said the president may be open to changing his. strategy. -- his syria strategy. jong-un wants to resolve the nuclear impasse with the u.s., according to a spokesman for south korean president moon jae-in. there is increased by just -- skepticism that came is willing to with the -- willing to dismantle the nuclear armaments. xi jinping is urging self-reliance and a time when changestry chases unseen in 100 years. a u.s. delegation heading to beijing next week the resumption of trade negotiati

it is weaker by almost 1.5%, no to the key we dollar. .s.x. are weaker what we saw in the u.s. with the big selloff there that i think every financial stock was down in the united states. its most in surging eight weeks, the aussie dollar 7339, shery.o shery: we're looking forward to those gdp numbers out of as well and take a look at futures across asia. seeing nikkei futures falling and the japanese yen holding steady, but in the session, we had seen it strengthen the most in a couple of weeks. fact, the japanese yen rading at around 112, in fact, strengthening the most since july. that's going to hurt those in japanese stock markets. kospi futures also down 1.2%, of had lots of news out of south korea including gdp c.p.i. out of there and numbers as well. e're keeping a close eye on what happens there. well.se is down 1.4% as e saw chinese shares fluctuate between losses. hang seng rebounding after session..7% in the last right now it doesn't look good of 1%. open, down .6 we could see a lot of pressure for asian markets when they open. and

that might be waiting on the dollar, the dollar index is weaker. you don't normally see such dollar trading and of course, brexit. weighing potentially on the dollar with a little bounce in some of those currencies. then there is the rate question. let's get to taylor riggs. taylor: we are prepared to hear from the federal reserve around 2:00 p.m. or so. interesting,ery putting off this support level of about 2.80 we hit in august. really interesting to see what happens here. reports earlier saying that if -- fed cuts its guidance really interesting to see how rate markets will be responding. i want to take a look back at equities and financials because they were getting a downgrade from the analysts over at atlantic securities. higher,ear yields are but they are cutting their forecast on jpmorgan, offering the least upside potential. wells fargo saying that fixed trading will be lower than expected and that it will only be slightly offset by higher equities trading going into next year. financials getting a boost today along with the overall market