"it used to be that what was called the cdu also really was the cdu. this is no longer the case. we have thrown many christian democratic principles overboard." merkel is up to the challenge. she has been voted in as party chair for another two years and wants to be elected chancellor once again. "our heart beats for germany and for europe, and for this we must work. for this we must inspire people come each and every one, if possible. that is what i stand for, and i ask for your confidence for this." merkel said she knows the upcoming federal election campaign will be no walk in the park. but the result of today's cdu party conference should make it a lot easier. brent: our political correspondent has been at the party conference today. here is her take on what the german chancellor had to say today. reporter: so now it is official. german chancellor angela merkel will once again be leading her cdu party into the upcoming election campaign. as any delegates here will tell you, they support her in principle, but come and there is a big but, because angela merkel's open-door polic

how is the cdu going to work with donald trump?lections might not have been what a lot of people in europe expected, but this is democracy. the american people have decided that mr. trump will be the 45th president, and i believe we are very interested in continuing transatlantic relations. the european union, its member states and the united its are very close partners. haveed the americans to our own security in europe, we are interested in having good traits contacts. i think the message which all european leaders sent out was, we would like to continue our transatlantic friendship on the basis of our common values. now it is up to the american administration to decide if they want to continue the cooperation with us or not. to goif the u.s. decides more ports isolationist policies, is it going to be important for germany to build up its own military power? >> the european union's, the americans and canadians are allies in nato. we know the security the european -- americans provide us and europe is one of the pillars of global

the cdu will have a problem from the left as well. are a lot of concerns that the ultra left party, which used to be the communist would band together with the green party and the socialist party to form a coalition to beat the cdu. they don't just have to worry about the right. the right wing isn't really as much as a problem as those three parties to the left will be for the ruling cdu party in germany. thank you for the analysis. anna: he will be there throughout the proceedings. still in the studio, peter is here. he talked about the broad political scene in europe. what theso focusing on ecb is going to do about the sluggish level of inflation in the eurozone. chart, which shows the european cpi and german 10 year breakeven. , lookssure of inflation to be moving in the right direction. peter: draghi must be encouraged by those charts. i think we have to temper expectations. monetary policy globally is not supposed to be the primary stimulus of growth. is there is providing conditions for growth. that is what they are doing. if yo

the cdu is also very concerned about a balanced budget.y had one for three years in a row and one of their pledges is to keep that, a sort of typical cdu party concerned. interesting when you have negative interest rates that you are that worried about a balanced budget. julie: to come back to the immigration issue, is the sort of a preview of what we will see for the next six months now? will merkel, a little bit more to the right --, a little bit more to the right and are there any indications that that strategy might work for her? that are still nine or 10 months really until the election, but i think you're right. i think this is a preview of what we are going to see. and this country at least, the right-wing populist party, the doesn't have the kind of momentum that the five-star movement has in italy or marine le pen has in france or donald trump had in the u.s.. this country still has a history that is painful, for which a lot of germans feel responsible. you do not have quite as strong presence on the right. arever, when you do, th

just this tuesday we have had a member of the cdu, a regional politicianan, the interior minister of the german state, in the eastern germany, saying, "we must state that we are in a state of war. some people here cannot see that." so a pretty thinly veil the attack at german politicians and their stance on immigration. angelamerkel herself -- merkel has been taken to task by members of the public, members of her own party, over her stance on refugees. recently her party held a convention when she was carried cdu,as the leader of the by a lesser percentage than in the past. she is under pressure to make some changes, and she has been shifting her stance. .ngela merkel has backtracked she says that never again will germany allow the same quantity of refugees into the country as it did in 2015, saying that was a one-off situation for exceptional circumstances. she has also tried to strike a harder tone on immigrants, calling for a ban on the rail, saying it was not consistent with german values, and trying to strike a harder tone to become more in tune perhaps with public fears, fears

germany, the cdu party has begun their convention today.miller has grabbed a lawmaker and he has him standing by now. matt: i am here with the head of the cdu. it's the most populist state in germany. you have an election coming up in may. chancellor merkel said this would be a difficult year for elections. why is it so difficult? >> the last election in 2013 was a debate about some issues. there was not an aggressive party outside the parliament. now we have a left-wing party and a right-wing party attacking the political of -- the middle of the political scenery. and you have the debate between the parties. and you have the question will we have a coalition red red green? .o one knows what will follow you had almost one million refugees coming into the country. angela merkel said she wants to for bid the wearing of a full face veil. is that an attempt to outflank the right? >> a liberal open society shows faith. the other message is people who can still have support. those who come for other reasons, they have to leave the country. now we

--this cd you are part tied she said the cdu will attempt to out law the wearing of full faced bales.our policy is not something she is talking about in the same way that she did a year ago. she recognizes people in the public are concerned. were these four unrelated incidents over the summer that really unsettled people and her party has taken the hit in the polls. it has bounced back a bit in recent weeks, but she is very aware of the concern that is there in the german public. guy: can i ask a more basic , it was, which is flagged by security authorities, the christmas markets were a .ikely target how much blame will be pointed at the security services in germany not doing enough to protect the people at the market? that is definitely a very good question. theread flagged that and have been quite a few arrests in germany of recent weeks of people they said were suspected terrorists or people they suspect are planning something. the questions will be unfolding this, how did they miss given that they knew there was something in the works, suggesting that venue in any way that -- what

one of their pledges is to keep partys a typical cdu concern.ng at a time when you have negative interest rates to be that worried about a balanced budget. >> there were protests at the u.k. supreme court as judges heard the government's appeal against a lawsuit which is attempting to force it to pass a new law before officially starting britain's exit from the european union. the government, which lost in the lower court last month, is trying to avoid that to start the process in march. francine: what are the chances of the supreme court overturning what we heard from the high court? >> i think the chances are slim that the supreme court will overturn the high court ruling. francine: do we believe them when they say this is a purely legal case, not political? jo: yes, the case will be decided on the legality and the correct procedure to trigger article 50. tom: how is the prime minister going? is the honeymoon over? how is she doing going into the new year? >> in relation to brexit, i think she has a couple of concerns. until a month ago, the b

as a matter of fact, chancellor angela merkel's center right group, the cdu/csu have a shopping listy'd like to push through the bundeslag that includes more video surveillance and reregistering with iris scans and fingerprints all of the asylum seekers. they'd like the entire eu to register in that way all of the immigrants coming into europe. imagine what a job that would be. and also, there are some 550 considered terror threats, people who are terror threats, in germany, and the cdu/csu would like to put electronic ankle bracelets on every single one of them. >> thank you so much. >>> north korean leader kim jong un has a major and ominous new year's resolution. he wants his country to finish developing nuclear weapons in 2017. a diplomat who recently defected made the revelation saying there is not enough money in the world to convince the ruthless leader to give up his nuclear weapon ambitions. bringing in cnn correspondent barbara starr. what can the u.s. and incoming president trump do about this if anything? >> very little, jake. that's the assessment right now. it was sever

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. >> as the cdu-csu, we will heighten pressure following the christmas break.e will introduce vital new information as quickly as possible. >> it is not appropriate to tie political demands given the information we have available right now. we do not know in detail what happened. >> in this respect, i don't want to speculate on what implications this might have. should the tunisian proved to be the assailant. reporter: one new security measure that has been agreed to is margaret -- video surveillance and cameras for police officers. >> this is a vigil, but it is nothing more than a demonstration against the german chancellor, calling for her to step down. they were fast to start the debate about the political fallout from this terrible terrorist attack in germany, but it is not alone. more questions are being asked from within the chancellor's own political camp. the csu was to change policy on migration here in germany. the debates on this have just begun. brent: that was outside the chancellor's office. she will join me later to talk about the demonstration w

we have had prominent politicians from both the cdu and spd, the two ruling parties, calling it a terroristttack and announcing it as horrific and cowardly. i should point out that although the alternative from the afd right-wing populist party has said the blood is on angela , this is nots such a prominent party in germany. they don't have the kind of populist power that you've seen, for example, sweeping across england and the u.k. a moreh they have had surprisingly strong voice than onlookers would have expected a couple years ago. manus: matt, this is one of those defining moments, isn't it, in terms of how this plays out with merkel's rivals in a big election-year for her. fuelis just going to add to the backlash against her open-door policy, potentially. matt: absolutely. when we were reporting on whether or not angela merkel would run for a fourth term, one of the biggest concerns, even from within her own party, was that you would have some kind of terrorist attack or incident from these refugees for whom she is responsible in being in germany. although theye, have said the driver w

the cdu party is in coalition with the other party that would be comparable to republicans and democrats. you do have a right wing party, but it is not present in the federal honest talk. it doesn't have positions in german congress. it has a small part in state elections. they immediately said there is blood on merkel's hands, this is because of her refugee policy. you've heard the same thing from poland and other countries that have not followed the same open door policy as angela merkel. the opposition really isn't very strong. mark: we will speak to you later. matt miller reporting from berlin. julie? julie: turning to turkey, the attack in berlin coming within hours of the assassination of the russian ambassador to turkey in ankara here that fueling the global uncertainty that turkey central-bank warned about following a surprise rate decision. let's bring in constantine from istanbul. we have this rate decision where rates are kept on hold. it was somewhat surprising to the market. it seems on the one hand that the central bank is faced with the following lire, and on the other han

cdu and csu sister party making more and more comments about the problem of migration and linking it to merkel's chancellorship. becoming difficult for her to do this. her response to this has been remarkably measured. refused to go down the road of fear and anxiety which is exploitedly them and members of the coalition. >> reporter: thank you very much. john we'll be watching how merkel reacts to that. so far yes, taken a very calm approach to this. let's see how she reacts in the coming days. >> thanks. also to dominick thomas in berlin. talk about the manhunt. security expert, former member of israel's counterterrorism unit. we understand that law enforcement can't track everyone. but failed asylum seeker, links, under surveillance because thought planning a burglary to raise financing for weapons. could have been anyone, just a face in the crowd. this guy has red flags all over him. >> this isn't just a face in the crowd. clearly somebody german authorities looking at. and not just germany, interpol in europe is where it's strongest. so many countries across europe. for them to c

. >> and we saw yesterday that her cabinet, which is dominated by her cdu and has other parties in itroved video surveillance for public places and other measures aimed at addressing this issue. do you think it will be enough? >> to be fair, the measures approved yesterday go back to an initiative that was started way in the fall, way ahead of monday's attack. i'm sure there's going to be more demands for tougher security. one thing i'm expecting to happen. >> the 16 states. >> 16 states and about 40 security agencies in germany alone. to give you an example, the city of breamen which counts for its own state with 670,000 people has its own domestic security agency, and there will be a new discussion about do we need that many security agencies and how well do they communicate? >> and getting some of the measures passed could be problematic. this morning i read in the newspaper here that the mayor of this area is a social democrat. they're in the grand coalition, and he's saying this video surveillance thing, we have to discuss this. and i also talked to a cvu member who is pointing a

. >> the head of the csu, the sister party to merkel's cdu saying after the attack we have to look again have to re-examine the refugee policy. how will that change? >> this is interesting because you are seeing it in other areas of europe with the french elections coming up, dutch elections coming up. so there's a general europe-wide move to the right and to the far right and to discussing these kinds of questions. however, what chancellor merkel has been careful to do to disassociate terror with migration. but obviously it is a difficult case to make given the fact that the primary suspect in this particular case is somebody who entered germany precisely through those lines. >> thank you very much. we will talk more later about that. let's look more at the internal politics of this. we are talking to kai whittaker via skype. a member of the christian democratic union party. can you hear me? >> good morning. >> good morning. let's talk more about internal politics. we saw just yesterday mama dam merkel's cabinet has approved two things, banning the face veils for public employees and al

the social democrats getting together with the green and left to beat the cdu and take over power fromhat is a typical issue of the media of germany. it is fascinating to a certain extent. in my eyes, it is not very likely. not to say it is definitely unlikely that such a coalition would be established. why? the half of the sanctions through these parties, they would not agree. so, i don't think this will really happen, looking at the german election for next year. guy: who will be, do you think, the candidates who will most challenge angela merkel? so do you think would be the best person to step up? >> that is the $100,000 question. nobody knows. but whenever the chairman of the social democratic party will challenge angela merkel, he will be the candidate because he has the first vote as the chairman of the party. but whatever he says, "i will retreat from such running as a candidate," i think the current president of the european parliament will be my favorite. red-red-gou think a reen coalition would prove strong enough to counter russia in a time when donald trump seems to be alm

her political party the cdu sort of the eequivalent of the republicans is much more likely to take athe polls than she is personally. bill, we talk a lot about angela merkel. people don't understand who she is. she is the daughter of a lutheran pastor from the old east germany where being a devout christian really cost you. she takes very seriously christ's admonition to help the distressed. the problem is in this case distressed are pair barians who want to destroy our civillation. >> you have to understand who she is. >> let me challenge you on that, okay? >> sure. >> if mrs. merkel were so interested in helping the distressed why doesn't shy help the u.s.a. in afghanistan or in iraq or in syria? the generals loathe to do anything. loathe. they won't help. they have the most powerful country on the continent. i'm thought sure i'm buying that, you know she is so concerned about suffering people. i haven't seen it? >> i think she is. germans, look, we fought the germans twice. i'm not so worried about passivist germans to tell you the truth. they have helped us in places like afghani

not winning enough votes for the alternative germany entering parliament to take votes away from the cdule. we are on a ten to hope about future political fate. let's show you the live pictures coming through from the market. the investigation continuing and the debris remaining as it was as a result of the attack. but we are hearing according to the federation of festival organisers in berlin, the christmas market will reopen tomorrow, just three days after the attack. all other christmas markets in berlin opened today. all the markets were closed in berlin in remembrance of the victims. but it seems the market that was attacked is going to reopen tomorrow. there has been heightened security at christmas markets across the country, as you would expect. concrete blocks are being put in front of entrances and there is a much higher presence of armed police. resulting from what has happened in berlin, security being stepped up elsewhere as well, including here at the changing of the guard at buckingham palace. that is the scene where the forensic investigation continues amid those reports

party conference yesterday she received less than 90% of the delegate votes. ,he deputy chairman of the cdu what he had to say about the support for angela merkel. >> i find the 90% that she approximately received a good result. we have had in the last year, among us in the party, very active and critical discussions. you could sense that at the party conference. one among the 1000 delegates, one in 10 said, i am not sure about the policy, 90% is a good result. it's strengthening the chancellor. matt: really was not a great result. she has always gotten more than 90% since sehe has been sitting. the only time she got lower was in 2000, before she was elected. what do you think about her candidacy, this continuity that she is trying to project, and the fight against populism out of germany? >> i think it is obviously very critical because germany is a core country for the euro area and european union. the continuity she represents will be important for the market. i think in the very near term, since the italian referendum is behind us, and we will the weather there is an election, the best

terribly easy to check the identity of all of the refugees flowing into germany and now the leading cduarty has tried to stem the flow of refugees into turned and indeed around, really, its policy on the refugees but the manhunt well continue. this will be really the focus for now what the german police investigation. finding out who did this and why. manus: thank you that was matt miller joining us from berlin. the markets in asia. well, use of, a much better day across the region. we put a lot of those geopolitical tensions aside and buying into equities as we round up the end of the calendar year. . raise chinese equity rebounding. upside coming through in hong kong, about 6/10 of 1% with casinos leading the game you have seen a close lower by one third of 1%. we've seen the yen strength in about one quarter of 1% against the dollar in late afternoon trade. high today.onth that was as numeral was named as one of its top picks. and other carmakers as well. a stray had a standout session, up 4/10 of 1%. about that 5600 point level which made australian stock at off high. highs we have

not winning enough votes for the alternative germany to enter parliament, to take votes away from the cduel impossible. we are on a ten about her future political fight. thank you. and one of his final moves to protect the environment before leaving power, president obama. .. new offshore oil drilling in the arctic, and off much of the atlantic seaboard. the incoming trump administration favours more drilling and more use of fossil fuels, but mr obama invoked a law from the 19505 which will be difficult for the incoming president to reverse. peter bowes has been following this story. well, it is a widely—used provision in the law that he is invoking to take this action, a provision that gives the president the power to withdraw federal waters from new oil—and—gas drilling. now, this is a joint action with canada, the prime minister therejustin trudeau has made a long—term commitment to protect the arctic from drilling. president obama has said that it is the arctic‘s unique ecosystem that is really behind this decision. the risk of damage from a spill, the high cost of working in this rem

stephanie highchoolers cdu exriment steph? >> reporter:?g yave aeenar you see the walking downhe kowy ar to their celphones what w h ife took those phones away? oneoren minutes, ihere my start to freak t. >> for me, getting that little buzz is like anenine rush. >> reporter: these are tengrade. class. but let's see, it seems a rule made to be broken. >> ieed you to put that away. ph away. >> reporter: before we came, we asked the students to track their phone usage. listen to the totals for a single day. >> 6:38. >> 4:26. >> i'm over nine hours. that was just on monday. >> reporter: the class just watched "screen agers," a documentary that explores teens' devices. the producers conducted a little experiment. would these students give up their phones for a week? >> there's no way. no way. >> reporter: but with some arm-twisting, nine, brave students agree. here were the ground rules. no smartphones. no gaming. lab tops for schoolwork only. and no social media. >> i think i can do it. i'm not that scared. >> i will probably suffer a lot. >> h

they are taking advantage of this to fight against the cdu but they are not a political threat federally matt miller on the scene of last night attack. thank you very much. for more analysis, let's bring , with uss lichfield here on set in london. will the german people blame angela merkel? >> not a majority of them. her popularity levels are quite high, and obviously they will understand that this might be related to the migration crisis but if you look at the details of german public opinion, many understand the position angela merkel took. i think there will be a very loud minority saying -- >> after bataclan, french authorities put soldiers on the steep -- on the streets. can we expect a different response in the way germans look at this? >> i think it will be quite similar. germany has already taken preemptive measures to deal with the terror threat, especially due to surveillance. i don't think they will go any further so the policy response you will see is quite mild and a kin to what you describe. perhaps, more checks on the border. i don't think much more. guy: how will that pla

10 minutes, angela merkel the chancellor of germany, makes her clearest call yet to delegates on the cdunot appropriate here, and sometimes one has the impression that people who have already been living in germany for a long time needed immigration course." it is very clear that countries in europe have different bans. for example, france bans all religious attributes. the headscarf is completely different. in some cases it is encouraged. tom: francine lacqua, thank you so much. francine, a number of days here in rome. much more coming up across bloomberg radio and bloomberg television. mario gabelli will join us on the value of the equity markets. we will do that on bloomberg radio. do not forget, "bloomberg daybreak" on bloomberg television. from rome and new york, this is bloomberg. ♪ jonathan: good morning and welcome to bloomberg daybreak. i'm jonathan ferro david westin and alix steel. a single digit on the s&p 500. some outperformance on the d ax. onto bti.own .9% -- on wti. alix: can the bank raise the capital it means to cover -- it needs to cover its bad loans? increased tensi

the germany government to take these people live and give them asylum, it is a real problem for the cdu you have seen the right-wing party, come out and say there is blood on angela merkel's hands and you have seen politicians from other countries, one of the leading party members from thisd this morning said proves that they were right not to let immigrants in, and that policies were a problem. david: beyond that, when these sorts of tragedies policies wera occur, it is not long before people ask where were our security forces, why couldn't we intercept that? is it the beginning of that line of questioning over there? matt: also the point has to be made that we still don't really know who did this. the police did take one suspect into custody. we are starting to see reports they may have taken the wrong guy into custody and that the perpetrator may still be at large. that is one of the main problems. the problem that you pointed out, where was the protection to begin with? when you go to these christmas markets, there is a strong police presence. you do see police standing around with