#btv 5533. i never forget the number. my vote goes to sophia.my vote goes to sophia as well. i get so excited by things like that. that was the european close. this is bloomberg. ♪ vonnie: it is noon in new york. david: welcome to "bloomberg markets." we are covering stories from chicago to new york and moscow this hour. will up, robert kaplan join us with his reaction to today's jobs report. donaldresident-elect trump is expected to receive an intelligence briefing this hour. a $2.5 million bugatti for half the price. where you can get this bargain. abigail: the rally ball is flip-flopping action earlier, small gains and losses for the major averages. the dow and s&p 500 are all nicely higher. the dow is within 50 points

#btv 5352, financials have done well. up from 28%.u go into the be tk bank index, you will see that it has come off. down some 3.5%. we also had morgan stanley in the spotlight. they were up significantly before the open on their earnings and felt with the group, as well. morgan stanley told us they are optimistic about 2017 bond trading, revenues surged by more than double. bank, talk about deutsche they completed a seven to -- a $7.2 billion settlement. the ceput out a noe, this has been a painful process for .eutsche ba they officially did it today. plus dollars, 4 billion dollars will be relief to homeowners. the ceo says hopefully deutsche bank puts this behind them. plus>> thank you. the dollar fell heavily across the board on tuesday with sterling leading the charge against it. of's bring in john, head asset management. perfect time to have you here to talk about the dollar move. you don't typically hear presidents or president-elect's talking about currency. is this a big deal? >> as we know, donald trump is quite off-the-cuff

we have a report showing this. 5574.s g #btv -- i have blown off the diamond for a while.y, it is beating the s&p. the space you see, almost all over the s&p is from goldman sachs. this brings into account how the dow is weighted. with about the weight indexing. it is price weighted. if the stock is trading at a high price it gets a high weighti 8.4%ng. , a monster weighting. is goldman is the 15th biggest company with a .4% weighting. take apple, the biggest in the s&p 500. in the dow jones it is the ninth biggest because it is only 140 dollars a share. that is nonsensical. this goes back to when the dow was invented in 1896. when you look at how it was done, they wanted something to measure the market. it wasn't meant to be investable. if you go back to when dia was insepted in the 1990's, s&p since thethe 1970's. it is doing quite good over multiple time periods. of the dow.ew fan applico: is the flow increasing into the diamond? flow grow by 3 billion, 28% increase in assets. on a percentage basis, the rate of flows is bigger in the doubt etf. : the question you are be

we do not have dow 20,000, but we have the bloomberg, g #btv 2026. that the dow will not make 20,000. last week, and analysts said he did not think it would have been. says shest at btig just -- would see it next week. this is a reversal out of the up trend from the election, which is typically bearish. there is the all-time record high. with the up trend reversal, is adjusts that it will break to .he downside it will be interesting to see. one market today pretty molto -- volatile is the 10 year yield. after some of the bank earnings reports, we solved on selloff with the tenured degree -- with the 10 year yield off. as for the banks, bank of america, jpmorgan, and wells fargo all trading higher. jpmorganth noting that and bank of america have already engaged in their conference calls. wells fargo's upcoming, and i know our julie hyman has been on those calls with great insight. today'st's get more on big bank earnings and what it means. joining us in london, michael moore. julie has been listening in on the jpmorgan conference call. what was the ta

btv 86. the fear gaugee for the s&p 500. in white come a gauge of currency volatility. in purple, we have a bond volatility gauge. but the volatility for bonds and currencies are much higher. in the recent gains, the bond volatility is continuing to pick up a little bit. those are the foundational asset classes. it may suggest stock investors are slow to catch up and we could see some volatility ahead for stocks to the downside. doubt 20,000, one of the reasons behind the strength and lots of deal activity. today, lots of deal activity. actelion and johnson & johnson, johnson & johnson is buying the european biotech company for $30 billion. they are trying to move into the rare disease space. they will take actelion's drug to the next level. actelion rising 20%. as for one deal that could happen, verizon and charter communications. some sort considering of combination with charter communications. we see charter communications up in a big way, having its best day since february of 2013. bryson down a little bit. -- verizon down a little bit. this would create a large tel

donald trump election and tech was the last shoe to drop and now it is occurring and you can check this btvnnie: i am scared but going with something you talked about earlier, minus more colorful and illustrative of what you're talking about. mark: hang on. vonnie: industrial outputs and how the move in tandem with industrial profits. as we had the recession in producer prices, profits decline and these are industrial profits, very volatile. they were just down, the one thing you could say about them and i have this resurgence over the last four months to produce a price indexed which locally -- likely for chinese consumers is not feeding out to the component of things. this buildup of prices on the producer side, and that may bode well for industrial. mining profits up by about 10% in the last quarter. other industrials such as -- i have it written down -- minor profits up 21% and raw materials were up about 10%. that is your look forward. mark: where can we find that chart? vonnie: 1882. vonnie: -- mark: you are usually so good at playing to the judge but she shed her chart was more liter

our viewers and clients can pull this up on their bloomberg, #btv 566 seven. of the passenger numbers that come in every month. at the bottom of the chart is the year on your changes. you can see how the growth is not as aggressive as it used to be. thatwill help you unlock and make that next jump to get back to the kind of ambitious numbers that you have then keen on sticking with? >> mostly it will be expansion of facilities, improvement of passenger flows through existing facilities, and improvements in levels of service. competitive business, we areour traffic, so investing heavily, not just in capacity expansion, but and the quality of service our customers receive when they come through dubai international, but long term obviously investments in airport expansion will be a major factor. by the end of q3 this year, we will have expanded the capacity from 7 million passengers at the moment to something around the there isn mark, so major had room for expansion there, and that is before we get to stage two by the next decade. shery: can you give us a break

this is g #btv 5556.he recent intraday volatility we have seen after donald trump press conference call the other day. some are wondering if the trump trade is over. it has been shifting and for some time. we see be in full games and that is considered to be the trump trade rally. the bonds sold off and that is the other piece of the trump rally. we have gold which had been training lower, but now it's higher. there was a bit of an inflection point right around the time where the fed raised rates. beginning of for down weeks for the 10 year yield, the longest such streak of that move for the 10 year yield since july. a little bit of an inflection point, perhaps suggesting the volatility we are seeing in bonds could move over to stocks soon. vonnie: thank you for all of that. let's get more insight in today's bank earnings and what they will mean. i'm joined by julie hyman and our finance reporter. julie, let's begin with you. you are listening on the calls and her the executives and analysts. what was you

g #btv 1537.t these the lows of the intraday ranges away from down 20,000. we are about 253 points away 20,000.n 20,000 -- dow there was a big move down in the morning, it's not really showing here. but dow 20,000 is largely out of mind. this is confirmed when you take a look at a haven. you have the vet for the fear gave shooting up 5.5%. vix or the fear index shooting up 5.5%. on the year, 11 of the 16 trading days, that is another radar screen haven, suggesting some investors are looking for a safe haven. all of this is confirmed by the bloomberg -- the u.s. 10 year , waitingwn about .6% on the bloomberg dollar index down three days in a row. that uncertainty around trump the you have been talking about. vonnie: another .6% lower. abigail doolittle, thank you. courtney has more from the newsroom. courtney: president trump is profiting tax cuts, regulation cuts, and what he calls a major board tax. he spoke of breakfast meeting with business leaders. trump: we're going to be cutting taxes massively. andboth the middle class for companies. that is massively

pick up with organic growth to help the velocity of money climb back up. 5u can see my chart at g #btv it is so hard, by the thinnest whisker in the world, i am going to say abigail. i have you know, i think to agree with you, mark, even though many economists say the velocity of money is not what it used to be in terms of an indicator. it was, at one time, the only indicator you would look at to see what the fed is going to do, but now with the difficulties in the markets, structural changes in liquidity and so forth, it might not be as much of an indicator. dani, i have to say you are a close runner-up because the data is extraordinarily interesting, particularly after the dow hit 20,000. we have a winner. mark: brilliant. well done. two fantastic shots. let's check out what is happening at the white house -- charts. this out what is happening at the white house. the president. to resell a-- theresaarriving a. there will be a press conference later. this is hugely significant for the president and the prime minister. theresa may is aiming to get a trade deal. signthey cannot negotiat

g #btv 5646. dr. barton i or should say, i trust your judgment implicitly.looked at the data, but i'm afraid you cannot write a prescription. there's a flaw in your argument. i think we did have a lot of fun today. that was your reward today. i'm going to give today's chart of the day crown. to emma chandra. mark: well done. vonnie: "bloomberg markets" continues. ♪ vonnie: it is noon in new york and 1:00 a.m. in hong kong. david: i and david gura. welcome to "bloomberg markets." ♪ david: from bloomberg world headquarters in new york, we will take you from mexico city to washington and london in the next hour. here are top stories we're following this afternoon. the dow jones industrial average climbed past 20,000 for the first time. stocks around the world extend the rally. interview with the cio that will center on global market risks under the new administration. in politics, president donald trump plans to act on two of the most fundamental and controversial elements of his presence will campaign, building a wall on the border with mexico and tightening i

g #btv five --at i do not know if it is possible for you to pull it up? hold on, it is coming.bigail: the chart we will take a look at is the s&p 500 information-technology space. it is a one-year chart and we see it as well above the average, or the orange da line,sh 10% above the moving average. we see our side recently hit 70. is moving down. the last few times that happened, at least one time we saw a pullback. the last time it happened, we still had consolidated trades. it will be interesting to see whether or not we had that trading ahead. or some sort of a bearish streak. a lot of watching to do in the future as far as these sectors and the market, joe and scarlet. yet another busy day in washington. democrats sought to delay confirmations by skipping schedules of those on treasury and health secretary. a new push to block the attorney general nominee jeff sessions. let's get to bloomberg's chief washington correspondent on capitol hill. thank you for joining us. what is the next step, democrats employing a tactic to stall nominations, where does it go from here? >> the

let's jump into the bloomberg and look at one of our btv 240.s, that is the rate falling, but look atts,ite line shows you wages, benefits, definitely on an uptrend. the most important one is that turquoise line. that is average hourly earnings year-over-year. that is wages and rose to 2.9% from 2.5%, the fastest rate since june 2009. this would support that fed consensus view that there will be three rate hikes in 2017. robert kaplan spoke to michael mckee in chicago on friday and said 2017 hikes are getting all the more appropriate. he did not say how many, but maybe he is leaning towards three. let's listen. >> the thing we will be debating as the year goes on is the rate at which we should be removing accommodation, but the sep they in december and gives you a sense of where we are and my views. >> rob kaplan also said he sees the economy rapidly approaching for employment. there are at least three fed bank presidents who publicly said they are in the three-rate-hike campanale. this is a more hawkish tilt. the number of jobs and that friday report fell shy of forecast, was that a

this is btv 86, a great chart. .e have the fix around stocks in purple, they have the bond volatilityex and in white, the currency volatility index are we see the volatility is starting to be elevated. these are foundational asset classes, to the tale of stocks. the volatility increasing there may suggest stocks could follow suit at some point soon. finally, out of the election, we are looking at financials on top but year to date, and interesting shift. energy on bottom and today, on the trump comments that the drug companies are getting away with murder, we have seen health care take a dip. it is now the best sector this year, tech. we see whether the trump trade will stay in place or whether we see a reversal. scarlet: thank you. let's turn to the big political story today, trump's first press conference since he was elected. the author of trump nation, the art of being the donald, published in 2005 and prompted a $5 billion lawsuit to donald trump. i did not pay a dime. it was more than i got but i did not have to pay anything in that case. >> that is good. headlineour number one

#btv 5310.ook at g doubt 20,000 is the second 1000 point gain. it is the second longest doubling for the dow in history, back here between 625 and 1250. it has taken about 18 years since alton thousand since dow 10,000. as for the s&p 500, it's not all about the dow. what the s&p 500 has done relative to the last 10 presidents over the first 100 days has mainly been pretty bullish. seven out of the last 10 times, the first 100 days for new president in office, it has resulted in games. perhaps this bodes well for president trump and we will see an extension of the trump trade. we do have earning winners like boeing. all these companies beat estimates. upgraded shares of seagate well there are multiple levers to pull going forward. rockwell automation beat by 21%. they also raised the midpoint earnings above the consistenc cs estimate. boeing beat earnings by 4.6%. he was a little bit worried about guidance, but with the stock up, it seems investors are looking past that. confirming all the strength and the risk on activity we are seeing from the

btv 5096. this goes back to 1960. they are pretty correlated.nes represent when the three indexes had hit new record highs at the same time. some real bullish action here for u.s. stocks. as for what's really helping the and goldmanand visa trading higher. goldman sachs and be seconding health as rates and yields rise today -- goldman sachs and visa being helped as rates and yields rise today. the vix is down 4%. gold is trading lower while the yen -- dollar-yen is trading higher. the dollar gaining against the yen with the having its worst december 2014. oliver: let's get the first word news. news.ey: breaking three people are dead and many others wounded in a shooting at fort lauderdale international airport. airport officials confirm there is an ongoing incident in the terminal two baggage claim area. nine people were shot and a suspect is in custody. more details on this story as they become available. china is prepared to step up its scrutiny of u.s. companies if president-elect trump takes measures against chinese goods. suggesting include

this is btv 2026, it does not reflect conn's work.g uptrend on this complacency. willhart suggests this dissolve to the downside. thisquickly, supporting risk on day, we have it trading lower, the 10 year yield higher. thedollar is rally against yen as a currency trades down. scarlet and oliver. oliver: interesting. sometimes, a lot, he was right on down 20 k. thank you. scarlet: let's get a check on the headline this afternoon. president trump says his administration is bringing manufacturing back to the u.s. the president met with ceo's is a general motors, ford. we have many other plants. you are not being singled out. -- a lot of plans for a lot of different items. bigley.ppening saidesident said -- trump the writing tory climate is now out of control. willirector james comey keep his job and said president trump has asked him to stay on and he agreed. during the campaign, mr. trump harshly criticized the fbi for not bringing criminal charges against hillary clinton for her use of a personal email server. trump said he has not mak

is optimism, but also earning optimism and there may be reason to be optimistic. 822,we look at g # btv this is a eight year chart for the s&p 500. negative, we are looking at earnings recession. around 2001 there was a brief recession. had interestingly, we have a very minor earnings recession over the year -- last year or year and a half. there is indication we may be rising. as for some earnings movers today, for some winners we are looking at a mixed bag. sherwin-williams, united rentals, and united rentals -- requiring rentals for 965 million dollars -- $965 million. behr says they posted a very strong quarter and they are positive on guidance and the valspar deal. we have invesco, both of these companies missed. invesco beat in revenues, but the picture is zero. -- assets under management dropped by $5 billion. of the stock is trading down and franklin resources trading down and sympathy report tomorrow before or after the bell they report tomorrow. right now the picture is not looking great. finally, back into the bloomberg and the s&pbtv 4087 500 is in blue. in green and red is

this is btv 5291. we have the s&p 500 energy index care last year, it was the best sector.is will rose in 2016. its best year since 2009. that has left the energy sector in overbought decisions. when it hit the seven day level, that is considered to be an overbought level. continued will see weakness ahead for the energy sector off today's weakness. scarlet: good stuff. after closing at record highs, we have seen consolidation track the biggest companies. the dow moving either way. the s&p 500 lower while the nasdaq is extending gains to make another all-time high. david is joining us, the .hairman and ceo company oversees $1.3 trillion in assets. it is quite a bit of money. trying to consider whether this is a head fake or something more justified, you are looking at many things. corporate growth and corporate investment. we have seen companies borrow a lot of money to fund buybacks and dividend growth. is that a good sign, is this something we will continue to see? is an important time for all of us who are long-term investors to risk that on whether we have a short-term

when we hop into the bloomberg 83, this at g # btv 56 is a six-month chart of dow transports and thein ofe and since the end november the dow transports and the dow have been consolidating in a range for the -- in a range. it looks like a bearish double top. it would be confirmed if transports drop a load 9000 -- drop below 9000. the reason this would matter is we see the dow is following the dow transports and suggest we could see a decline for the doubt itself. dragging on the dow, we are looking at goldman sachs trading lower in sympathy with a drop in yields and we have caterpillar lower on the news the company is shifting headquarters toward chicago. nike is down in sympathy from the awful forecast from under armour and apple down .4% ahead of the december quarterly report. what investors will be looking at is revenues. will they put up $77.3 billion in revenue? this would represent the first quarterly growth since december of 20 15 the revenue dropped. it caused the stock to be volatile. when we look at this chart, it suggests investors are more complacent about this upcoming q

this is g #btv 4228. we saw that natural gas put in a cross from the 50 day moving average.ire step in and take control of the market. time this happened in 2012, natural gas had really big gains. this may suggest that today is a bit of a pause in the big rally for natural gas and that 2017 could again be very good to natural gas. jonathan: abigail, thank you very much. top ofup at the next the hour, what is coming up? mark: tom keene will be talking --ut the urijah groups eurasia group outlook for 2017. .o cousin of mine of course, larry summers o as well. we will be joined at the top of the 4:00 p.m. our european time and looking forward to chatting with him. manufacturing here in the u k rising edit at its fastest pace. and then we will be joined by the nyse to discuss the company's separation from xerox. year for of the yo me. can't wait to get started. jonathan: mark barton is having a good time. david: he is having a very happy new year over there. we are that breaking news throughout the program today when donald trump took to twitter and said that general motors shou

really take a look at and other chart within the bloomberg, g # me, g # btv 4228, a five-year chart ofal gas, last year around june, this is when the moving average moves up to the 300 day moving average, talking about loss of buying momentum. the last time this happened in 2012, the gains ahead, more than 100% gains for natural gas. decline for natural gas may be a pause as opposed to a reversal like last year. vonnie: interesting. thank you for that. david: kicking off the new year and talk about the trump administration and what it will do it a republican congress, but there is another institution with something to say about where the u.s. economy is headed. reserve.he federal to give us an outlook and 2017, we are joined by michael mckee. thes start with how much fed's job has been complicated by the election of donald trump. janet yellen alluding at the last press conference about the fact that there may be stimulus down the line. they go into the air saying we will have three rate increases by the end of 2017 but they could have more or less because they do not know what donald t