more thoughts from nick nelson when we come back on " bloomberg daybreak europe." happy new year. hear what hsbc's douglas flint sees in store for the economy. more from our exclusive interview with him. this is bloomberg. ♪ >> europe is in a sad place. low growth, it broken banking system. the essential point is that 80% of lending comes by banks. a complete inverse to the u.s. there is some real sense of resolve to go early in italy to solve the banking issues. the president of morgan stanley speaking with bloomberg about europe. let's get to the bloomberg business flash. chelon was offered 27 -- 27i billion dollars. sanofi. in talks with the move sets up a potential bidding war. shares soared in sydney trading after the opening. does fargo has failed to for the second time to persuade regulators that it could unwind its business without wreaking havoc on the broader financial system. the lender is banned from buying non-bank companies are setting up international units. if wells fargo does not come up with an acceptable so-called living will buy april, assets in

this is daybreak, europe. 1:49 in the morning. this is the futures. the dow hitting another record level in trading yesterday despite all the attention around the italy story. let's get the business flash for you. a counter bid for challenging a move by u.s. health care giant johnson & johnson. they say the french drugmaker is working with advisers as it weighs out options. a representative declined to actelion couldn't be reached. according to bloomberg estimates, the metropolitan west fund run by pimco managers is now number one with $79.4 billion in assets as of december 2. the pimco fund fell after it lost 2.6% and investors old out about $2 billion. the de facto head of central group became the focus of a public grilling of the south korean tycoons. lawmakers directed vast majority of questions during a parliamentary hearing over a scandal that may cost the countries president her job. the vice-chairman of samson electronics denied donations in return for political favors. has signed upimes more than 200,000 new digital subscribers in the fourth

a very warm welcome, everybody ," "bloomberg daybreak: europe our flagship daybreak show. i'm anna edwards. manus: i'm manus cranny. we have the dollar as long as long can be in the white line. this morning, the dollar dips ever so slightly. has it hit a speed bump? it is set to be given back. the stock market is careening ahead. the dollar this morning seems that little bit unsettled. these are the white line you have got, the long positions in the dollar are the highest since january, 19th of this year. anna: strongest rally in the dollar since 2008. as evidenced here in the blue. the geopolitical sense right in the center of things. let us put the risk radar up and show everybody where you are in the few moving parts. the dollar remains topical. 117.31. losing out, the yen is one of the big gainers. the last of the g-7 policy meetings taking place tomorrow, theng an extra dimension to yen story. manus: our guest geoffrey yu could be the g2. could it be when the u.s. ti ghtens? ringgit, which almost continues unabated. weakest level its since 1998. it has lost 6% of its

this is bloomberg daybreak: europe. 1:51 a.m. in new york.it to be fairly flat at the start of the trading day. when will the dow jones get 20,000. a great story on the bloomberg this morning. the dow jones and the nikkei racing to get there first. let us talk about politics. specifically around the u.k. theresa may wants an early deal on what the exit from the european union means for citizens. fight the hardt brexiteers according to our next guest. have a lot to talk about. good morning. we want to talk about brexit and corporate governance. let us talk about the latest business flow. she has gone to brussels to talk about an early deal about eu citizens living here and british citizens living in the rest of europe. it seems unlikely that is going to be seen as possible. >> this is very fluid. it was a wake-up call for mrs. may. there is an important constituency that could vote remain in key toric constituencies and the south of england and london. she has begun to notice that she has to look after the 48% as well as the 52%. this is about

. ♪ anna: a very warm welcome to bloomberg daybreak europe, our flagship morning show.'m joined by use of who is over into dachshund joined by yusuf who is over in dubai. yusuf: what caught my attention this morning, we are still in a low bond you'll situation after the holidays and people still struggling to get back. concerns are being set andifically between bonds inare up 235 basis points that spread. very mind this is from 167 basis points back in november. ofis of course an indication the lack of consensus among analysts when it comes to how european core yields are going to evolve in 2017. there is of course the scenario for lower longer-term yields and flatter curves supported by the low inflation expectation and rising political risk and they -- bond scarcity. that's what keeps it interesting and very tense. anna: as we head toward the end of the year. let's show where we are on various asset classes overnight. .3%.sci asia-pacific up this is the first time we've seen an increase in seven days for the msci asia-pacific. mayans are low, for example in then, the

again.t slumps welcome to daybreak europe. our flagship morning show.e and edwards in london. is given the handover we got from the session, a very mixed picture. if you take a look at what happened in european equity markets we're still missing a lot of the traditional volumes in terms -- you can see calls are lower. even more so the case for the dax. a mixed fiction -- picture. what are we looking at in terms of data? show me the data. nationwide giving the numbers for the past month. 4.5% prices rising according to nationwide and 0.8% on the month according to nationwide. you have other data on the housing market. about tepid growth in 2017. let's have a look at the risk radar. i see some big moves coming after the dollar-yen. the yen extending its gains 116 is where we trade. and that is something that is having an impact on equity markets over in asia. we see the msci asia-pacific up led the nikkei is down by 1.3% and the topix is lower. closer to heart is what is happening in terms of crude prices. we're looking ahead to the eia data. expected lat

imf shift despite her can -- convictions. >> welcome to bloomberg daybreak europe.morning show from the city of london, i am manus cranny. anna: welcome. a look at the futures to see where we are expected to open. the asian equities section fairly weak. geopolitical concerns at the heart of things. the assassination of the russian passenger -- ambassador to turkey. chinese seizing and returning a u.s. naval drum, still putting geopolitical politics at the heart of things at the end of the year. manus: the counterbalance to that is the commentary from janet yellen talking about the strongest job market for graduates in a decade. upgrading the review of the economy by one step. how does that translate politics versus economics? politics is there with initial reaction in the yen and bond market. viewers whor our tuned in earlier. i was talking specifically about the attack in the turkey with the russian ambassador being attacked -- assassinated last night. forget, aleppo some of those were the comments about -- out of turkey. continuing ton move a little weaker. this a

this is "daybreak: europe." the56 is the euro against dollar.ll talk about parity in just a moment. let's get to the bloomberg business flash. reporter: amundi has agreed to purchase the pioneer global asset management from unicredit, paying 3.5 billion euros in cash. the purchase of pioneer, which oversees 222 billion euros in assets, will make the company the eighth largest asset management. 80% stake inan the operation has enterprise value of $2 billion, including debt. the transaction is expected to be completed in the first half of next year. 21st century fox and sky executive worked over the weekend to nail down the terms deal.2 billound pound rupert murdoch and his son have been intimately involved in the decision. some issues remain under discussion. that is a bloomberg business flash. manus: thank you. that was the very latest top story. italy's prime minister, paolo gentiloni, is joining a list of proposed ministers after he was given a mandate to form a new government. he told the country's president he will serve it back to him as so

a very warm welcome to bloomberg daybreak europe, right here in london. manus. we are back together again. i'm back from the desert. let's talk about the aussie dollar. you mentioned it in the headlines, this is the second worst since 1991. the question for the markets is this, is this a flip or a trend? we had the election, brexit, a number of different factors going on. and down the aussie dollar went. question for the markets is this, will the rva look through its week data and hold back, or will they cut rates? there's a 75% probability they will look to the data and weight. anna: interesting how the conversation in data is turning should bel asset -- fiscal. that the conversation we've had in europe a lot. this is one of only four contractions the australians have witnessed in 25 years, just show how rare it is. variousen overnight on asset classes, the msci asia-pacific, despite and because of the weakness in the gdp data out of australia, we have oil in there as well, down by .3%. slide to below $51 and down by 1.7% yesterday. it,s: if you think about $1.

that is it for daybreak: europe. as is bloomberg. ♪ ♪ >> good morning.omberg markets. your first trade of the session coming up. i am guy johnson. copenhagen, today in getting cozy. we will get to him in a moment. let's talk about the headlines and what we need to know this morning. raise 13 plans to billion euros in its deepest ever overhaul to boost capital. what price will investors demand?

welcome to "bloomberg daybreak: europe." it is our flagship morning show. i'm manus cranny. i'm anna edwards. let's recap one of the big stories we have been covering overnight, which concerns glencore and its talks with ro snet. glencore is confirming it is in final stage talks on rosnet. in talks for a 19.5% rosnet stake. this is an announcement made by president putin. glencore dealmaking seems to be back. we have seen the rosnet shares opening up in russia and jumping 4.9% on the back of that sale. manus: it is interesting to see, glencore taking more of a substantial position in a russian company at a time when we still have sanctions in place. the interesting thing will be who arranged the deal. the bankswhere there involved? manus: we have asia marching higher in global equities are adding $2 trillion to the equity market over the last month. the bond markets have lost $2 trillion. that is the biggest loss ever in one month for global equity markets. one of the debates we will have with our next guest is europe, relative to the united states of america, is about 16% c

. ♪ welcome to bloomberg daybreak europe, our flagship morning show. manus cranny who is in london. manus: a very good day to you. ust could not get there. the consequences are some faded glory in the equity markets. this is how it european equity markets are opening. we have fresh reports coming from italy at the moment that there may be a deal to be done, that you may see the government step in and take 50% of capacity. from --e press reports the italian government could approve to deal -- a deal to rescue them. you have never had it so good. , the euro stocks 50 up 7% more than double the u.s. counterparts. are the world investors wary of the u.s.? and perhaps a little more proclivity for european equity markets. we are down across the market. in the city early of london at christmas. nothing better than a long lunch. trade, the dollar-yen point that out for you. 117, barely above the flat line. you will see that the dollar rally may have reached a crescendo. 118 points. lower fortures are the dow jones. within a few whiskers of the 20,000 mark and

a very warm welcome to "bloomberg daybreak: europe," our flagship morning show from here in london. i am anna edwards. , that is howel-din much was wiped off global bond markets in the month of november, so no doubt about it. global drought was being felt by investors in november and that continues this morning. the biggest increase in yields since 2009. we have the long-term picture. are we really at the end of this 30 year bond bull market? it was it is simple but a powerful story going back to 1985. you can pull it up on your bloomberg. is this the inflection point? how much further does this bond drought had to go? feeds intoon trade this theme. we saw that go up by nine basis points. the highest close since july this year. anna: you mentioned the reflation theme. let us bring it up the risk radar and show everyone where we are on that oil story. opec confounding the skeptics. $50 perwti above barrel. brent crude at $52.54. a 10 month low, stronger u.s. , inflation expectations, weighing on gold. yousef: knowing what is theening with dollar-yen, appointed percent. goldman sachs

he joins us now on "daybreak europe."ou so much for being with us, peter. >> good evening, manus . manus: the left hand side of the butcher scale. on the right hand side of course i have interest rates. ok? so which is a going to trump which? excuse the pun. is it going to be politics that drives yields higher? >> no. manus: lower, excuse me. >> i think optimism, particularly on the inflation front is going to be something of a q 1 story and then i think we really start getting focused on the geopolitics once -- not only trump being in the start of his tenure but also we have the french election coming up. i see more -- a scope for more optimism first in the early part of the quarter. an energy price and a drive in inflation that we're going to see and i think that is going to get the markets quite excited. i think we're going to have some upward pressure on yields and pressure on yield curves but then i think we're going to realize all right, this is as good as it was going to get. actually for the eurozone in particular

"daybreak for europe." be a touch weaker at the start of trade. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. guy: welcome to bloomberg markets. this is the european open. your first trade o

you will see that first on daybreak europe from 2 p.m. hong kong time, 1:00 a.m.e watching in new york. this weekend, you can hear the co2 jamie dimon in conversation with bloomberg's business week. check out her scheduled to see the lineup. that is it from us. down to several market opens. to watch.s the one we did see a bounce back yesterday but futures could continue on the declines. the rest of the region looking not much better. we have more next. this is bloomberg. ♪ david: did you feel that there was a glass ceiling? >> terrible people that said to me, i do not think a black person could ever be ceo. david: september 11, tragedy occurred not far from here. >> i cared a great deal about them and their families. do you ever leave home without her american express card? when i am at home it is always with me. >> will you fix your time, please? david:

this is bloomberg "daybreak" europe. it is 2:30. the hang seng up 1.3%. asia pacific is up by .25% this morning. "daybreak" is now available on bloomberg and on your mobile. let's take a look at some of the stories that have made it into today's edition. the u.s. retail taluating against russ for for meddling in the presidential election. president obama has imposed sanctions and expold 35 russian operate is. a report with evidence linking cyberattacks to vladimir putin's ervices. yousef ? yousef: a jump in the euro and swiss frank. traders with caught off guard when the currency jumped 1.6% in the asian morning trade before aring those gains. anna: finally "daybreak" focuses on a deep chill to come in 2017. a deep freeze is about to descend on north america and europe and asia. brutal ogists say the cold will hit the u.s. and queand russia bearing the brunt on the other side of the globe. yousef: let's pick up on the story over the offshore yuan. it traded fairly flat. yesterday china said it will dilute the weight of the dollar in its trade-weighted fore

. >> "bloomberg daybreak: europe it is -- >> it is a signal to the rest of europe, all of europe, andhe european union. matt: still with us is kevin gaynor. kevin, do you see this as a turning point, that you know, a pro-european candidate can win, and it is maybe not all about right-wing populist movements sweeping all over the continent? >> no, in short. i think this is the limit to populism. in a core european state, we very much have the memories. i think the extreme right wing will struggle to get into power, even in places like austria, that have a record of sk irting. france is a slightly different 'sory because marine le pen agenda has shifted to more social policies, like benefit giveaways. she is polling very well up in the northeast of the country, on the border with germany. re thats a risk the because she has moved away from some of the more flowery rhetoric, i have heard it that ideas,d copping trump's she could do very well. i think there is a natural limit in places, certainly in europe, to these more extreme positions. the populous migration surrounds economic exhaust

"bloomberg daybreak: europe he has -- >> the company has worked for much. he is very well regarded. participation of exxon is very welcome. sayingflores-quiroga, tillerson is a friend of mexico. he will be the first oil administer and second from texas. guy: thank you very much, indeed. she seems to be camped out pretty permanently. we will have the nigerian oil minister live in london and will be joining the surveillance team at 9:30 a.m. more insight into what is happening inside opec, inside t he oil market and the relationship that exists. let's bring our guest into the conversation now. how much lower has oil got to go? >> i am a cynic. look at your chart over there, the u.s. rate count. christmasint h the period, anything can happen. looking further down the line into 2017 and beyond, why would this agreement work? the only way it will work is if the saudi's will be absolutely determined and will take a great deal of pain, a disproportionate amount of pain. i am not convinced they will do that. their finances are nine trouble. up toir shirsts add more than miller the dollars,

daybreak: europe. this is bloomberg. ♪ ♪ francine: a tale of three hikes. hawkish forturns 2017.e giant leap for the dollar. the u.s. currency moves to a 10 month -- 10 month high. bridget balancing act. mark carney walks the line between growth and inflation. how does the eu make policy in the dark? i am francine lacqua in london. a great show lined up as we break cap -- down what we learned about the futures of u.s. rates.

daybreak europe, the flagship show. i am manus cranny.hope is that china will continue to reflate with donald trump rhetorically. what you have got is the numbers coming out of china, with bull markets returning to italy. "momentum continue. the nikkei has undone all of its losses. just keep in mind, you have got the dax going through more of an opening rotation than the rest. we have london up, paris and will wait and see how frankfurt settles on the open. a slightly stronger open. let us have a look at the risk radar because the bowls are back s are back inl town. undoubtedly, it is this. s&p futures up 0.5%. you are hitting another record. option traders are long called options. that is a record high. a new record high for the index. more than 900,000 contracts. that has happened only on 10 occasions since 2004. every time that has happened, up another 3%. of another 6% within a year. are we in the middle of another on the u.s. -- lag equity trade? opec and non-opec get-together. how are they going to come up with cuts for non-opec mem

that is it for daybreak: europe. daybreak open is next.s is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. hey, drop a beat.flix? ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked ♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. ♪ >> welcome to bl

. ♪ ♪ >> this is daybreak europe. let's get the bloomberg business flash. here's juliette saly.kswagen has reached a billion dollar agreement with automakers in u.s.. they will buy back body, porsche, and vw vehicles. the accord covers some luxury models going back to 2009 and is another significant piece revealed of vw process cheating on the emissions control. coca-cola beverages africa, $3.1 billion. the companies have agreed for the world's largest soft drink maker to buy interest in bottling operations and five andcan nations and to central america. shows fell in extended trading after extended quarter profit fell short of analyst estimates. thus says the operator of the biggest air carrier boosting investments in its ground carrier this is. nike has presence of the quarter results. saving concerns that the world's largest sports brand is losing ground to competitors such as under armour. profits were $.50 a share in the end of november compared with the 43 sent average of analyst projection. sales grew 6% to $8.2 million. deutsche bank gearing up asia equity derivatives bu

join me on bloomberg radio, daybreak europe. we are live. it is decision day. it is qe day.coming up. this is bloomberg. ♪ ♪ francine: all they want for christmas is qe. the ecb mates -- meets. a tapered timeline. and longer buy. the crimea tries to quit again. how long before the italian job is someone else's. forces to my and $11 million stake. surveillance,erg i am francine lacqua in london. we have a great show today. we bring you an exclusive interview

you can join me on radio daybreak europe. happy new year.rg. ♪ francine: out in the cold. obama imposes sanctions on top russian officials as the u.s. strikes back for election interference. oil's first yearly gain in three years, after an opec supply cut. the last trading day of the year. and a glitch in the markets. the euro surges 1.6% against the dollar as an algorithm generates a rush of orders. this is "bloomberg surveillance." it is always the end of t

. ♪ manus: you are welcome to bloomberg's daybreak europe, are flagship morning show in london.ood morning, i manus cranny. all eyes will be on the bond and equity markets, and the currency market. the world wakes up to its third political dislocation in as many as six months. brexit, trump, matteo renzi. what happens next in the bond markets will be critical for the policy of the european central bank. this is italian market calm before the potential political and market storm. paul krugman is trying to gain a possible euro prices. what you have is 10 year government bond yields, the best rally in as many months. we've rallied nearly 20 basis points. the spread against germany widens, with action down now 160 basis points. will we retest those wide areas? the risk premium for holding italy, of what happens next, of who is the next leader of italy, is what's going to play out in global markets over the next couple days. talk dei paschi, let's about the risk radar -- how have global markets taken on this new political risk? one has to say that global markets are becoming perhaps

tune in to radio's "daybreak europe."is bloomberg. ♪ francine: it is the first global oil cut deal in 15 years. crude is jumping to the highest since july 2015 after saudi arabia signaled it is ready to cut output more than earlier agreed. non-opec countries pledged to pump less next year. bloomberg spoke to the energy minister of russia. as far as prices are concerned, we try to stay away from forecasting these prices. if the markets decide them, it is quite unpredictable most of the time. what i can tell you is the current price level is satisfactory to us as a country. russia is not a member of opec and doesn't have any plans to join the cartel, but russia is ready to enhance its ties and cooperation with opec countries. francine: that was russia's energy minister, alexander novak. i'm pleased to welcome the petroleum minister for nigeria. thank you for joining us, as always. we value the time you give us. what is the situation overall? this is the first cut in 15 years. how can you be sure that no one over supplies, t

for more, tune into radio daybreak europe. bloomberg. ♪ ♪ francine: this is bloomberg "surveillance." -- u.s.-china relationship the seizing of an underwater american drone in the south china sea adds to recent tensions. let's get thoughts from jonathan fenby and geoffrey wu. tradeked briefly about wars and you were saying we do not know what donald trump is thinking. what does the appointment of peter navarro, you wrote many books on china, he thinks china is cheating the rest of the world because of their surplus, how will the chinese take it? take peterf you navarro fa's fight, it is war with china, he has been given a big job but one of a number of people there advising. it is significant, the most clearest signal we have had from donald trump that he will deliver on some of those campaign promises about china. we half his national security advisor, michael flynn, who is known to believe that isis is a chinese creation. you have two advisors. francine: how do you take this if you are xi jinping? an opportunity for me to ha

for more, tune into radio "daybreak europe."his is bloomberg. ♪ mark: this is "bloomberg surveillance." scotland's first minister is threatening to hold a referendum to lead the u.k. unless they can stay in the e.u. single market, writing in "the financial times," nicola sturgeon says, it is the best option for scotland remains full membership of the e.u. as an independent member state. the ultimatum as pressure on theresa may as she draws up plans for brexit. still with us, simon french. pressure from all sides, within her party, within the remainders, within scotland, within the e.u. it is real pressure for theresa may as we approach the triggering of article 50. simon: looking at the 2017 timeline, that end and of march triggering of article 50, everyone is positioning themselves for how the government is going to lay out its preferred negotiating stance. nicola sturgeon in charge of the government in a country that voted in favor of remain. she wants the softest version of brexit. despite strong rhetoric, she is recognized t

for more, tune in radio's daybreak europe live from london.omberg. ♪ ♪ francine: this is bloomberg: surveillance. the swiss national bank has left -0.75%.sit rate on hold later today, we get the decision from the bank of england. let's speak to bloomberg's nejra cehic. boe.ch 20 two for the no change expected today? nejra: that's right. no change expected today. orn to the benchmark rate asset purchase target. what investors will focus on is any comments mark carney -- any comments that come out in a minute of this balancing act between supporting growth on one hand and controlling inflation on the other. that dilemma has been in the economic data we had this week. employment dropped for the first time in more than a year. on the other hand, inflation accelerating to its highest in more than two years. those expectations have been fueled by a weaker sterling. sterling, we have seen on a trade basis rise 6.5% from the last meeting, which was key. there was a shift from easing buyers to a neutral stance. intelligence is expecting the bank of eng

europe could mean for russia. makes hisr putin annual address. ♪ alix: this is "bloomberg daybreak." over in europe, the ftse picking up a bit of steam. relatively flat in the u.s. yes, we got better global pmi out of the eurozone as well as china, but you are still seeing weakness and oil keeps surging. brent up by $.70. 13% in the last two days. the story continues to be the massive selloff in the bond market. the dollar takes a positive mud down slightly from the nine-month high against the yen. david: houston, we have liftoff. after weeks of tensed negotiation's come opec agrees to its first oil production cut in eight years. the three largest oil producers put aside differences and non-opec russia agreed to unprecedented cuts to its own output. global bond meltdown. the 30-year-old bond bull market looks like it is ending with a bang. as global bonds suffered their worst slump ever last month. $1.7 trillion were lost. debt --rs look to dump tha bracing for swings. euro volatility is the highest since brexit ahead of austria's presidential election and the european central bank's

on daybreak americas, jonathan ferro asked him what are the biggest wrists to the global economy going forward. >> europeo get its act together. china has got to make a success of its reforms. it's important that u.s. growth takes an upward turn and acceleration in the year to come. julie: it's time now for our quick take. change down climate means cars and trucks that millions of than volkswagen diesel owners were surprised learned their engines past tests by cheating. that's not the only thing that can go wrong. the paris climate change records will increase pressure for cleaner vehicles, which have a quarter of the u.s. total. the pact came when they were rethinking the tax incentive that helps diesel claim a market share. new carsard calls for to average 54 miles per gallon. california's rules are followed by 10 other states. the push for cleaner cars original had nothing to do with climate change. in the 60's, the target was air pollution. in the 70's it was to decrease oil imports. the government wanted to help detroit's automakers develop a supercar. the breakthrough model was the victoria prius.

equities in europe treading water. ♪ jonathan: good morning and welcome to bloomberg daybreak. ork city. 30 minutes and seven seconds away. stocks go nowhere. equities flat in europe as well. boring, boring, boring. there is your guide right there. in the bond market, treasuries will have some price action. capital goods, an upside surprise. decent data out of the united states. yields of four basis points on the u.s. 10-year. a little bit over where we work an hour ago. $1.04. david: here is what you need to know. the banks weigh in. jamie dimon speaks out on the wave of populism and any for fundamental tax reform. bank of america leader brian moynihan seek new animal spirits in the boardroom. we hear from the leadership of the two largest banks in the country. monte dei paschi on the brink. the next that looks like it will be government intervention. -- it doesn't lucky is backing down. inamed carl icahn to head of his deregulation campaign. that is what you need to know at this hour. now over to abigail for movers. abigail: this does mean the dow 20,000 is at least in hitting

europe's biggest pay-tv business. this is bloomberg. ♪ watchingou are "daybreak asia". i am yvonne man. ramy: i am ramy inocencio.or deals in the works, boeing and a run, and the other in the media space. su keenan has more. -- boeing and iran, and the other in the meeting space. su keenan has more. tv, $14 fox and sky billion deal that would involve fox buying 61% of sky, murdoch's media empire on two continents. many have said that for rupert murdoch, who is still involved with fox, that he has wanted forever to own all of sky, and it has been a question of when, not if. according to sources, both murdoch and his son were closely involved in negotiations this weekend. a tentative deal was announced on friday, sky tv stock going up we, but the details are what were told took place over the weekend. executives are flying to london to continue to work on the deals. the key question according to those close to the matter is whether it will be an outright did or what is called a scheme of arrangement. has to do with the fact that in the u k, there may be difficulty getting shareholders of sky tv to buy into the deal

europe. this is bloomberg. ♪ alix: this is bloomberg daybreak.heck of the markets about an hour away from the open in the u.s. s&p futures around their highest of the session. the ftse holding on to some record gains as miners soar. the dollar continues to grind higher. the euro-dollar reaching 1.04 off the lows of the session. the dollar-yen up, in addition. dollar strength reigns true. can equities hold on to their gains? david: we turn back to europe any year with pop -- when populist voters changed policy across europe and the united states, the world ticky wealthiest people got richer. for more on this story is jacob kirkegaard. you are an expert on europe. here is more because of security ending -- immigration concerns than economic issues. how is it motivated in europe? -- theit is a mixture of general type of alienation from economic insecurity, the sort of fear of the loss of middle -- of the middle class and unemployment. the big driver in europe of populism is immigration. there is no doubt that this was probably the defining issue for

europe. when he goes it will be a big problem. vonnie: that was david rubenstein on bloomberg's daybreak america's.r rubenstein was actually r-a-lago meeting with president-elect donald trump. this came out earlier according to the spokesman sean spicer. there is mr. rubenstein leaving the presence of the president-elect. the uk's ftse 100 has risen more than one half a percent at close. this is thanks to mining, metal, energy companies, sending the ftse up 30 points to close at 7106, gaining .55%. as a reminder, u.s. secretary of state john kerry is speaking at the state department now on middle east peace. some of the headlines he is talking about, how it is a personal issue to him. both sides are moving toward a one state reality that most do not want. he said if the choice is one state that israel cannot be democratic and jewish. if the choice is a one state solution, israel cannot be democratic and dilution -- jewish. he says the status quo is leading toward one state and a perpetual occupationmr.. kerry: that is the outcome some are purposefully accelerating. let's be clear, settlement expans

europe. bonds a bit as well. this is bloomberg. ♪ jonathan: this is "bloomberg daybreak." let's get a check of the markets. points. a rally in europe. we are raced some of the gains from the session. switch of the board very quickly. yields come in 2 basis points. we have an aggressive rally on the bond market. what does that mean for the housing market? you the housing numbers right now and it is a significant downside surprise coming at a -18.7% for the month of november. that is housing starts. building permits dropped 4.7% month on month. the median estimate in that bloomberg survey was -1.6%. some revisions to the previous , there is a significant downside surprise on housing and building permits. david: as the yields go up and interest rates go up, you wonder how that is going to affect housing. jonathan: typically, mortgage rates rolled over. you would assume that would do something to building permits. , it hasberg pointed out not hit mortgage applications yet. david: we want to turn to health care, health care in the future a trump administration. one of those in the center of the health care chang

daybreak." west get a check of the markets. some resilience -- futures positive, equities gain across much of europe, with the exception of italys vote no on prime minister renzi. as we switch of the board, taman yields higher by 15 basis points. surprise surprise -- a no vote. euro is up by .4%. david: mr. renzi having struggles politically, but donald trump has done all right, and markets have taken that abrupt turn as the election. no asset classes reacted more strongly than bonds. sovereign yields up sharply over the past month, and trillions of dollars flowing out of debt worldwide. the question is whether it is time to take a second look. to answer that is david from cumberland advisors and michael mckee of bloomberg, joining us now. david, has a gone too far? >> yes. we are at 130%, 140% of treasury yields. we were a 85% or 90% for. high-grade immunities are now a gift to an investor in the u.s. who has a high tax bracket, even if the tax brackets go down under trump. david: what is your reaction to what's going on with the bond rout? >> well, it is based on hope that donald trump will be able to stimulate the economy en

daybreak." u.s. equity futures relatively soft, a bit of strength over in europe, the ftse losing its earlier gains, relatively flat. the dollar index at its highest level since 2003. the euro down 1%, the yen down .8%. part of that story is the backup .nd yield -- in yields gold continues to get beaten up off by 2.5%. vote of confidence, rising inflation and stronger employment led the fed to raise its benchmark rate 25 basis points for the first time in the year. janet yellen projects three more rate hikes next year. of the dollarme climbs to its highs level since 2003 in response to the fed's decision as the u.s. 10 year yield climbs its highest level in two years. the bank of england keeping its key interest rate at a record low, noting the pound recent appreciation may mean a slower uptake in inflation. oil prices trading around $51 a barrel this morning. what does and opec deal mean for u.s. shall companies? goldman sachs sees an additional 800,000 barrels a day coming online. i went to texas, the permian basin to visit pioneer natural resources, the top player in the region to see if incoming

europe. ♪ jonathan: from new york city, this is bloomberg daybreak.ide david westin. alix steel is away today. futures positive up 51 on the dow. positive six on the s&p 500. the stoxx 600 trading at 2016 highs. the dollar index the strongest 2002. david: here's what you need to know. christmas attack. a truck plows into a christmas market in the heart of berlin killing 12 people. angela merkel tells the nation we must assume it is terrorism. a german prosecutor says the suspect may not be the assailant and there may be several other attackers at large. kuroda stands pat. an upgrade to its outlook on the but keeping its yield curve and asset purchase program's unchanged. who were the winners and losers in the hedge fund world? what will it mean to have one of their own running the treasury department? now we go to abigail. abigail: we have some energy movers in the premarket. chesapeake energy is trading higher. the company has sold its shale for $465- acreage million. whiting petroleum trading higher after its credit rating was updated by s&p to a be

europe banks really need? is the fed ready for what is widely expected to be the first height of the year? we talk monetary policy with former ecb heads. for more, tune into radios daybreak london. this is bloomberg. ♪ ♪ mark: i mark barton in london. douglas flint helping guide europe's biggest bank through a -- new regulations over two decades as he prepares to step down next year. much to contend with, including the u.k. exit from the eu, president-elect donald trump's policies. francine lacqua sat down with douglas flint for an exclusive interview and asked if trump would deregulate wall street. i don't think there is any chance anywhere in the world of regulation going back to a light touch. no. that was not a good period. our biggest risk is our industry. you do not want a part of the world where people are able to do things with much less capital as is economically advisable. andt touch regulation competing who can have the lowest standards is bad for banking. i don't think it would happen. what we might see is some moderation of the reporting rules, which are onerous in of systems andty so on. there are multiple ways of reporting around the world. we haven't harm

europe. that is next. this is bloomberg. ♪ this is "bloomberg daybreak." ♪ alix: this is "bloomberg daybreak."emocratic party has voted to support the effort of paolo gentiloni. this is after the former minister was given a mandate to form the new government by the italian president. we're joined by our reporter from rome. what is the next procedure over the next what he four hours, seven days? >> for the moment, it is going very quickly by italian government crisis standards. as early as this afternoon, we expect paolo gentiloni, who has been given a mandate to form a government, to report back to the head of state. if it happened smoothly, then tuesday, possibly in the morning, we will have the swearing-in ceremony for gentiloni and his ministers. then we have government number 64 since the second world war. alix: an unbelievable number. what does he actually have to do? challenge is the economic ones with slow economic growth and italy. then he has the troubled banking sector, especially monte dei paschi, that headache. he has to try to do editorial reform ahead of early elections possible

daybreak. this is where we stand on the markets. you have volume extraordinarily light across europe. is stronger. yields are backing up here in the u.s.. it is a calm in the market. one area where there is not a lot of call right now has to do with china. take a look at the bloomberg here. this is the you wanted trading volume and the blue line is the spot. change ine the trading volume. more cap or outflow. how much of a risk is this? joining us is a strategist. it's good to see you. that is the question. how much will this play a role in the first quarter? >> thank you for having me on. i think this is probably trillion dollar question for next year. it depends on what does donald trump do once he is in power. we have seen all of the other elements coming together with a very anti-china pro tariff policy. all of these factors could put so much pressure on the dollar that the yuan could repay. -- this makes the risk increasing over the years. it feels like next year could be a tipping point. alix: what could that level be? how much worse can it get? the shoes you were in of the chin

europe, and this was even after matteo renzi's referenda did not go his way . -- joe:body cared nobody cared. nobody cared except for italian bank stocks. earlier on bloomberg daybreakhard, the former chief economist of the about the signals from italy's referendum results. >> it seems to me the signal from the results -- not the fact they did not win, but the 60/40 outcome signals deep issues in europe and italy in particular. >> the market is nowhere near where it was 2012. what would be the recipe, the circumstances where we would see a repeat of the european sovereign debt crisis we saw in 2012? isi think the form it takes there is again a lot of unhappiness. that is what we saw with the referendum. it's not only a lady. it's elsewhere as well. -- it's not only italy. slightly different reasons. there's a good chance you will get populist governments elected. in italy it's not an impossibility. other countries, it is not either. these countries will go with policies that do not make much sense, which worries markets. markets start putting a large price on sovereign bonds, and in some states, there is a crisis. the issue is how is it resolved? is it resolved thro

europe and the geopolitical risks in 2017. that is coming up next. for more, tune into "radio daybreakondon." ♪ mark: welcome back to "bloomberg surveillance." let's get more on russia and geopolitical risks. andrew would is with the russia and eurasia program at chatham house. he was formally -- formerly the british ambassador to russia. so many questions. liftthe u.s. or e.u. russian sanctions soon after donald trump becomes president? andrew: i think it is quite possible. i doubt whether they are going andse them in a drastic immediate way, but that will be the russian expectation, that they would. it will depend at least in part whether the then president chooses to make a trip around european capitals before going to moscow, or if he goes to of haste.some sort the difficulty for him though is, there is not really a bargain on offer from russia which would give anything in return for changing the sanctions regime. there is no prospect of the crimean war to resolve by that means. there is no real prospect of russian interference in eastern ukraine, which they deny any way, using bec

daybreak. i'm jonathan ferro. one hour 17 minutes away from the cash open. down by two points on a doubt. in europentinue. autos, basic resources, and banks higher. in the fx market, ahead head of the ecb decision tomorrow, one euro is $1.07. to price earlier from manufacturing in the united kingdom, cable right down to 126.12. jonathan: not what i expected. supply chains are so complex pricesays, the input emma when you input the goods you need to make the goods to export, they are surging. david: now let's talk about banks. there was one thing we knew this morning, and that is that they are doing well. this compares worldwide bank stocks with global stocks. you can see how well banks are doing. the question of why banks are doing so well may not be quite as clear. it may be for different reasons in different parts of the banking business. to help us sort. all is peter bain, president and ceo of all men. also with us is allison williams, a senior banking analyst. peter, i want to start with you. you have jamie dimon and brian monahan saying things are going pretty well for the big center money ban

daybreak. let's get you up to speed on the markets. futures positive on the dow. marginally. it 10 to 1%. yesterday, 26 points short. across europeding warmer on the dax in london and frankfurt. one asset class that has done anything is trans water. back to $1.04. the dollar yen is trading lower to $1.17. we retrace some of that move. the president-elect, as he prepares to take office, every republican president since world war ii has been in power during at least one recession. ," global economic advisor spoke with bloomberg earlier about whether the risks -- about where the risks lie. >> the first is that he overplays the protectionist card and he gets tough not on mexico on china and then you get a retaliation and a trade war. is second recession risk maybe towards the end of his first term. maybe that is the fiscal policy that he wants to implement in 2018 to 2019. then the fed may have to raise rates aggressively in 2019 and could create a recession in 2020 at the time of the next deal. jonathan: in boston, is megan greene, manual life asset manager. and story of recoveries cycles, they don't die of old age. they are often m

daybreak." i am jonathan ferro, alongside david westin and alix steel. in italy, it is political drama but without the market turmoil. futures positive. equities gaining across much of europee ecb is lower than expected. but the euro stronger. up against the dollar by a third of 1%. alix: the crushing defeat. renzi-- italy's matteo announcing his resignation. muted markets, the european stock gained after coming back from a 20 month high despite renzi'. and trump accused china of currency manipulation on twitter. david: let's go back to the italian referendum. we are going to milan. dan, the first question -- we know what happened. the referendum went

europe's relationship with the world. president-elect and donald trump -- resident elect donald trump and china, as well. this is bloomberg. ♪ . jonathan: this is "bloomberg daybreakmarkets. futures are up. the s&p 500 as well. banks underperforming in today's session in outperforming for the month. the decemberor loans. the fx market, the euro is weaker. a stronger dollar across much of the g 10 space. yields are down by 4 basis points at 255. david: what you needed to know. the china-trump dance. american atan drone. trump said they can keep it. markets react to the geopolitical uncertainty. you are fired. barclays about the tech 5000 clients to say they do not do enough business to stay. big oil on the march. dhabi. a deal with abu on the news.ly that is what you need to know. now, u.s.-china relations lead the nose. while president-elect trump source out how he is going to confront china, brussels is looking for closer ties to the middle kingdom especially with trade. let's go to berlin with a matt miller when he is with vice-president for jobs, growth, investment and competitiveness, jyrki katainen. matt: thank you for joining us. trump'sirst ask, donald move

europe and australia. the main game in town is about trading value for shareholders. jonathan: we have to leave it there. thank you very much. alix: this is bloomberg daybreak.'m alix steel. here's what you need to know. hanging in the balance. monte paschi. can it raise the capital to cover its bad loans? their meeting with the ecb officials. china's flagship newspaper urging its country's leaders to calmn caught among -- among donald trump's unpredictable foreign policy. oil falling from a 16 month high. aluminum and copper leaving metals lower after a group called the rally irrational. that's what you need to know. jonathan: under performance of basic resources in the european equities. one of the biggest gaining sectors in europe. the dow at all time highs yesterday. earlier on it was about dollar weakness. we had this dollar strength. the cable rate did kiss a two month high. treasuries go nowhere. more on the story out of italy we've got francine lacqua out of rome standing by with an important guest. good morning. morning. good i think the situation for now has moved on to politics. sources told me that monte paschi officials are meeting with the ecb.