mariot, we are awaiting draghi.ready have the details, the broad idea of what he is going to say in frank for. let us hear from the man. he is coming up next. this is bloomberg. ♪ guy: 8:23 a.m. in london. we are awaiting the arrival of mario draghi who will be with us shortly we think. let us talk about what is happening with the dollar having implications around the world. we have talked about japan and europe. i have a great chart for you. let me show you this one. 4933. dollar index in the blue. take a look at these crossing. a brutal move. particularly for those who for the last six months have been saying that bm is the way to go -- saying that em is the way to go. good morning. >> there is a bit more to go on this chart particularly if fiscal policy is going to be looser than originally planned. as chairman yellen suggested yesterday. that would lead to a tighter fed than what has been priced in already. guy: when we think about what the fed can do -- how far would it ultimately go? wants has indicated she to

let's talk about draghi. ecb president mario draghi struck a dovish tone in frankfurt. he outlined how inflation needed to be self sustaining before accommodative policies could be unwound. speaking at the euro finance week he reiterated his rational. >> the recovery remains highly reliant on financing conditions that in turn depend on continued monetary support. >> five mondays until christmas, james bitterfil joins us now. let's talk about draghi. he said a sustained rise in inflation needs unprecedented financing conditions and at the same time said stimulus withdrawal. in my mind that means continued qe. >> a few years ago he talked about well anchored inflation expectations. you could hardly say that's the case since august of this year. break evens have been rising p rapid rapidly. so he may want to wait longer before he wants to act, he should be getting pressure from the bundesbank to act somehow. early next year maybe we start to get some mentions about tapering. perhaps a bit too premature to say in

ecb mario draghi -- ecb president mario draghi said they are relying on support. >> besides the geopolitical that remain prevalent, there are three factors that warrant caution. the defensibility of euro banks, weakness of inflation dynamics, and dependence of the recovery on our monetary policy. mark: joining us from his firms outlook got trump. ahead of the election the prediction was if trump gold rises and bond yields fall. the opposite has happened. many investors have been trumped. where do we go from here? one of the surprises is that the markets have not been looking at short-term issues and predictability. the markets have gone to the longer term and the five-year mandate. the growth outlook and how to , withr growth president-elect trump, this has huge consequences on the growth assets and equities at the expense of bonds. mark: what are the implications inflation,, growth? alain: i think the starting point is the growth outlook. when you have potentially a combination of tax cuts, infrastructure spending, and the -- of my party 2018, youon, that in person witht one more growth and

mario draghi speaking ahead of the ecb's december 8 meeting.ook at where european markets ended the day. the stocks 600 gaining for a second day and european stocks having their first monthly gain and three. that werergy stocks outperforming. no surprise, given what we have seen with the oil price. let's take a check on that as we gainingbti and brent after this historic agreement to cut output by opec. more than 8%. if we look at what's happening in the fx market, a bit of a stronger dollar story today. sterling, unchanged and a weaker euro. if you look at bond yields, 10 headingasury yield higher in europe tracking higher along with it. this is bloomberg. ♪ >> it is noon in new york at 5:00 p.m. in london. i'm vonnie quinn. david: i'm david gura. welcome to bloomberg markets. ♪ david: from bloomberg's world headquarters in new york, we are covering washington and new york. opec quenches the deal to cut , rising over 8%. the next u.s. treasury secretary, we will did -- dig into the latest. ♪ hyman joins us now with the latest. markets are movi

mario draghi says government needs to step up reforms while he maintains monetary stimulus.gainstrbyn warns brexit. the u.k. labor party leader says pulling out of the singles market would be devastating. we bring you that this hour. ♪ >> welcome to bloomberg daybreak. in london. edwards.ed by anna internet: lots of breaking news. president-elect donald trump saying he will ditch the transpacific partnership his first day in office. trumponomics having an impact in market. for big indices in the united states going to record highs. breaking news. kingfisher. you to third-quarter sales coming up on 3 billion pounds. total 6.9 billion pounds. sales.on the total solid third-quarter performance. uping the u.k. pumped sales 3.5% yesterday. remember, this is a stock that has risen 12.2% so far this year. index.ormed the retail we talked to 23 analysts. five have a by 11 hold. confident inmains the ability to deliver the plan. bear in mind a lot of the analysts have voiced their concerns about pressure coming through from france in terms of sales. again, kingfisher confident they w

. >> in european central bank resident mario draghi said more urgent is needed.e pledged to maintain the stimulus.ney he spoke to the european parliament in strasbourg. japan has lifted tsunami alerts after the earthquake. urging residents to flee to higher ground. five residents injured. some bullet train services suspended. operations normal mostly. and a coach fired. coming under pressure after two painful losses in the opening qualifying matches for the 2018 world cup. in a statement they said quote the growth of the team left us convinced we need to go in a different direction. global news 24 hours a day powered by more than 2600 journalists and analysts in more 200 countries. imagine that. ask president-elect donald trump outlininged a video executive actions that his quote administration can take on day one. these include scrapping old regulations, including some on energy and getting rid of the transpacific partnership. >> on regulation i will formulate a role that says that for every one new regulation, too old regulations must be eliminated. so importan

. >> mario draghi speaking at a conference in frankfurt this morning. the ecb president says the central bank will focus on whether a recovery in eurozone inflation can sustain itself even if its monetary stimulus is withdrawn. >> we remain committed to preserving the very substantial degree of monetary accommodation which is necessary to secure a sustained convergence of inflation towards a level below but close to 2% over the medium term. we cannot yet drop our guard. >> draghi says he sees a significant degree of uncertainty for the economy. >>> elon musk is one step closer to merging his two companies. share holders voted 85% in favor of merging tesla and solarcity. the $2.1 billion stock offer could create or would create one firm that sells emissions-free cars and rooftop solar panels to power them. musk says the deal will be completed within the next couple of dales, critics say it's essentially tesla bailing out solarcity. but musk said the solar panel firm would not way on the bottom line. >>> sales force i'm third quarter revenue rising 20% on

mario draghi: the economy is recovering.mployment has grown by more troughmillion since it's in 2015. the recovery has become more grown based with less difference in economic performance across countries. mark: he added that monetary policy is the key ingredient in european union's recovery and accommodation will continue in the medium-term. deutsche bank chief executive says it may be the ecb's that are hurting volumes that affect credit risk. during a panel at the same event, and he said it is imperative that they expand credit, especially for the financial sector. : they need to be strong, plenty have shown that growth is successful economically when credit is expanding. we have a set of forces of raising against the banking system at the moment, which militates exit strength and undermines the ability to foster economic growth. mark: deutsche bank chief executive john cryan from euro finance week in frankfurt. still ahead, investors have been adopting and america's first strategy since the u.s. election. we will take st

matt: we're going to hear from mario draghi later.he uncertainty of things like migration, brexit, donald trump changed your outlook? >> as you said, uncertainty , significantly increased old certainties are at least being questioned. will the western world be more inward looking or will it continue as outward looking as it has been. will the function of multinational institutions be as it has been for the past decades. what are the implications for trade? therefore what are the implications for monetary policies. very many uncertainties and what investors built like and the economy doesn't like is uncertainty. we will never get to certainty. anything we can do over the next half year over 2017 to increase certainty is growth positive. matt champion thanks so much for your time. appreciate it. head of economic finance for the euro group. yousef: let's get straight into that conversation as well here on the set. how concerned are you about the fragility of the eurozone? we have a quite a few elections coming up. political risks. politi

i wanted to see on the mario draghi side how he would handle political risk.th wrote this in a bloomberg gadfly piece. learned one thing from lehman brothers it is how important it is to keep money markets functioning in times of tumult. draghi may already be planning to relax current procedures -- the simple solution would be to accept cash -- but he is at risk of being too late. are you worried about the technicalities? that their man of -- may not be enough bonds. are you worrying that they are talking of tapering to soon and risk comes back on? first of all, if ecb is aware of the scarcity problems. the problems that marcus seems to be referring to as collateral. the brexit period where the period right after it, european markets were very resilient so it seemed to work well at that point but that does not mean that next time around like in the italian banking crisis, it well. it will. the big question is december and when will they perhaps announced that they will reduce purchases? with unemployment falling and falling, inflation is starting to pick up. e

draghi. he said, we would not curtail bond purchases. particularly in focus. how much of this is political risk? thate key to understanding is not to look at yields on their own. it is to look at the spread comparison. compared to the u.s., germany. french spreads. atari and yields are heading higher. that is to a large degree political risk. sense have been going up since the fraca. this is primarily about political risk. what happens on december 4. we are talking about something dramatic in politics. fine detailot of and what happens. saying, overall in terms of the european union, that is not necessarily on the table. >> there is one extreme outcome. it is far more about going to uncertainty, the kind we used to see three 2000. amazing how short people's memory can be. you are staying with us. highlights.e of the let's look at that. thek friday, the start of shopping season. consumer confidence out of france. wholesaletime, u.s. do.ntory data also, looking at japan. another drop in prices leaves a long way from his inflation target. then will we hear back f

draghi and european exporters. longer-term perspective if we see a hillary clinton when -- win. you have a divided government, how difficult does that make policymaking in the united states and how much does the long-term trajectory for the u.s. economy matchup? carsten: a phenomenon we also see in europe. making politics is becoming harder and to find a coalition, an agreement is getting harder because populism has polarized both sides of the society. that is hard to -- you have a majority for brexit and a tiny minority against brexit and how do you balance these interests? how do you unify a society and economy? that is putting tension on politics and making implementing policy extremely difficult. guy: how would the united states a fiscal push? if you look at the economics and the best way of making this work, if you were advising either candidate, what would you be saying to them? is --n: what you could do if you look at the business cycle in the u.s., it is quite mature and you could extend the business cycle

draghi suggested that the central bank would decide to continue its monetary easing policy at its final needing of the year. >> our monetary policy meeting in december will assess the various options that would allow the governing council to preserve the very substantial degree of monetary accommodation necessary to secure the sustained convergence of inflation towards levels below or close to 2% over the medium term. >>> now, italy's finance minister has sought to reassure investors ahead of the company's referendum. he said it's natural that markets are confounded by the pressure governments are facing. he said the state of the italian banks are well known as the sector suffered steep losses yesterday again, per share. these particular banks are not worth all that much. bmps worth the most that you were looking at. take that into consideration when you look at the percentage changes. >>> and south korea's president, park guen-hye, has asked parliament for a way to come up with her to relinquish her power and shorten her tomorrow amid the country's deepening political crisis. chery kan

mario draghi watching it all.on the program, paul. we have seen janet yellen go in front of congress. walk me through the process, the atmosphere that will come up against mr. president draghi later on. >> this is nominally about the ecb's annual report. it is likely not to be about that at all. what it's going to mean in the european parliament and draghirg is that will give an opening statement and policymakers will give their opinions and he will do a final wrapup toward the end which amounts in some ways to a closing statement as well. the issue, one of the issues will be what does the ecb do in the current geopolitical and economic environments. alix: mario draghi has been burned by this in the past. the market expects to much and want of getting burned. how careful is he going to be looking ahead to the next ecb meeting? paul: very careful you would imagine the message from the ecb has been pretty consistent. the message that the euro area prospect and him at the best economic recovery is continued support.

to get draghi's measure, the deflation from five years hence. i think mr.raghi has a potential problem. i think a couple of things were interesting. growth being strongest and other indicators that,ting elements of average input prices were at a five-year high. this is in tandem with what we are seeing elsewhere. it is picking up and inflation is turning around and this is why bond yields are going up. that will take time as the unemployment rate in the eurozone is 10%. there's a lot of work to be done improving the eurozone labor market. time might not be on his side and he's faced criticism from mayany and the ecb program create financial instability. the collateral squeeze and the ecb having to lend bonds rather than buy them, i think the consensus view that december will see a six-month extension could prove wrong. i think there will be pressure with inflation picking up. euro-dollar parity? guest: i've got that down as a forecast. away.ot that far getting to parity is within the margin of error, but it's all about the dollar. that could be much more of

draghi talks about financial fragmentation, they have kept the lid on what is happening. talking market reactions, what would be the spread in that scenario? much of that is predicated on what happens in the italian referendum. get over some of these geopolitical events. elections in france and germany. that landscape, it is difficult to see the ecb allowing bond yields to go much higher. in the short-term, can they go higher? they can't. we will be watching very carefully the outcome of the referendum. anna: what about the divergence from policy and fed policy? if we see the ecb moving to it lookse program, increasingly as if they are on a different page, how will that play out? the mosts one of interesting things we have seen happen. the u.s. economy going down a different route. one of the benefits, low yields will\/\ -- keep the cap. they will put a lot of pressure on the euro and the yen. guy: do you think the ecb will appreciate a steeper yield curve? help thelso does is financials out? ened yield curve would be tolerated and welcomed. we have seen them take advanta

mario draghi neatly summed up -- these are the effects of a hard brexit.: of course he does not know. wayne: what we would see from a u.k. perspective going into a is something mark carney reference a few weeks ago is the cliff, that level of uncertainty. we have a route to market all of a sudden. that route is stopped. what would you do if you are running a business and had export segments you are selling into? invariably, you would try to maintain your market share even with a tariff imposed. pricing strategy helps hopefully with the currency as well. one of route to maintain momentum from a domestic perspective. we would expect to see they'll tightening. -- belt tightening. it is a shock to the economy. we don't know. --t: are we still expecting everyone says we expect to see it. we are five-month on, must have a year on from the brexit vote. are you seeing that uncertainty really hurt the u.k. economy. are you seeing hard numbers, not expectations or surveys, but actual hard economic numbers that show brexit has really been a horrible thing for the u.k

or is mario draghi getting an easier ride?hange over the next of months is the base effect oil prices. the oil price could jump. the base effect is going to be considerable at some point. the reason that is important is when you look at the inflation target, before the prices, there is no correlation. since then, they have been incredibly closely correlated. prices,ments in energy they are setting the mood music behind inflation. to the lack of wage rises coming through, core inflation is not moving in the eurozone. until that happens, we will be unlikely to see much of a wage hike. bond yields, what is really important is that people were talking about a posse of assets ty of assets. it looks like the pool of assets is going to dry up, but that is no longer the case. the ability to buy assets is unimpaired. francine: there are a couple of houses that are calling for euro-dollar parity. we have these calls every 18 months. we going to the parity? stephen: we don't have that call. we don't have that call. when you look at it fr

if you take what mario draghi said, there is some regulation and has gone a bit far.back a bit. pared backngs can be a bit. rates have moved up nicely. they can start to lend, leads to inflation, greater velocity in the system. on september 21. now, we are kicking fiscal into --h gear in anticipation of if you drop the corporate tax rate from what it does to their cash flow means you can borrow more. there's a lot of things that play their part -- at play there . jon: rick rieder and yalman onaran. the opening bell up next on "bloomberg daybreak." dow futures up 14, s&p 500 futures up two points. the record high in the premarket. -- equity market. yields at 19 basis points -- treasury did print a year-to-date high on the 10 year . -- euro-dollar the declines. -- euro-dollar declines. ♪ seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like

we will hear from mario draghi in less than an hour.does it lie within his power and the ecb to help the situation, or has it shifted over to physical the way it has done in the united states? alessio: the ecb cannot solve all the problems. monetary policy cannot solve problems related to structural inefficiencies in the real economy. what they can do is to make sure that the supply of credit is .nlimited and present they are working towards making sure that the transition -- transmission mechanisms are in place. more than that they cannot do. to tension has shifted fiscal policy. that is true and the u.s. we have been talking about this for over a year in europe as well. this is what i was referring to. when you have such a heavy election calendar and it is all the synchronized between countries, you don't have the ability to have a synchronized wave of fiscal stimulus, which in europe means reduced austerity. we are not talking about crazy fiscal stimulus at work. julie: when you look at the investing landscape in europe, is there any

he has done what draghi has asked the markets to do, take plateiscal policy off our .his is monetary policy in effect. we had a plunge and now rates are above where they were before the election. how do you think the fed is going to approach this? fiscal stimulus is what central bankers have been asking for for a long time. it has driven expectations up. will the fed feel like it needs to hike a little faster than it otherwise would have? >> they will approach it very cautiously. don't look for any radical shift when the markets to suggest and policymakers indicate we will get a rate increase. nothing donald trump has said during the campaign has yet become policy. >> i feel like we have to hammer that point home, one, and two, there were many conflicting on the campaign. >> tighten the sausage at the end. the process of making the sausage -- who knows what going to come out the other end? that is what policymakers will focus on. in december, we will get the famous forecasts. expectations are we will continue to show very shallow rate increases, maybe two next year. an

draghi said this morning kind of surprised me.they're going -- the economies in europe need support for yet a number of years. not now, not next week, not six months. for a number of years. that's a long-term rate policy right there. they have to be as far as their economy goes fairly pleased with what's going on. >> so parity. >> it is looking as if it's possible. i would not have thought so but with what we've seen, the markets have all lined up on the line here. >> so emerging market currencies. boy. so poor mexico. mexico raises interest rates yesterday by 50 basis points and the mexican peso falls anyway. would you buy that though? to me i think that thing has gotten hammered so much. do you buy the pay toe? >> not yet. >> when? >> i would wait until the emerging market currencies see a turn. emerging market currencies have a problem because you're looking at weak economic growth around the world. if, however, the u.s. starts to pick up regardless of whether it's sustainable from spending, that looks much better for the emerg

mario draghi will be speaking to the european parliament.'s a lot of talk about whether he is going to extend -- extend qe. kathleen: he says euro area and recovery depends. are going to be talking about a lot of this -- the italian referendum. the prime minister, according to the latest survey, they cannot pull ahead for december 4 but suggest the no vote is winning. that would be not so good and would cause the government to fall because of the fact he has pushed it so hard. saying first brexit, then donald trump, next, italy? the markets are watching and certainly global bond markets are. yvonne: thank you so much. shares of crown resorts falling 1.5% after reports that 16 arrested inve been china over alleged gambling related crimes. let's get to paul allen joining us live from sydney. what do we know on this now? paul: there are three australians caught up and one of them is the head of the international vip program. all of these employees were rounded up and rates on crown resorts offices in china. they have been detained all this time

mario draghi likeened the u.s. election result to the brexit vote and he said both events would likely have a long term impact that's difficult to assess at this stage. >>> luxury stocks are seeing losses. the slump in watch exports continued in the move october just to give you a little more detail. they were down in nominal terms. a steep drop because of the anti-corruption drive by the chinese government. shipments to hong kong were down 21%. shipments to the u.s. were down 16%. and in hong kong, it's worth noting there's a lot of unsold inventory that needs be marked down and analysts this morning were pretty surprised about the weak numbers. one saying that watch makers they've voluntarily exported less in october in order not to build up more stock at retailers. i guess kind of makes sense. it does. why do we still see such disappointing numbers? >> i'm not sure. they have been disappointing for quite some time. worth noting earlier this month we saw the controlling shareholder do away with the ceo rule and a

ecb chief mario draghi is said to keep pushing his super loose monetary policy.hat is in europe, but what will happen in the u.s.? will donald trump make things easier for u.s. banks? >> trump had engaged in anti-wall street rhetoric quite a bit before the elections without saying exactly what he would do other than dialing back regulation. dialing back regulation like.-frank -- like dodd-frank is not is it to do. the expectation of most bankers is that the status quo probably will be held, which is already a good thing compared to if bernie sanders or elizabeth warren had come in. they would probably have been a lot more restrictive. also what we have to observe is that banks have become more risk-averse, so i think the status quo will probably remain in that is also important with regard to global coordination with regard to regulatory arbitrage, so europeans are ramping up their regulations. >> we're going to take a short break. do stay with us. >> welcome back. you are with "dw news" in berlin. president obama has said elwell to europe after his final tour of

thisine: because of program, however, that takes the question if it forces draghi's hand.hat i am seeing. i want to notice the 10 year. spread between france and some of the other countries is really quite wide and expects to get worse because of that risk. michael: we are joined now by gideo rn rose. the latest issue "the power of populism." still with us is bill lee. how do you explain that the power of populism is? towill have francois fillon, the extent that he is a populist. hashis something that fundamentally changed in the world? housing crisis,usin that thee thought assets that were uncorrelated turned out to be correlated. we are seeing something like that in terms of domestic politics. we used to think country x this, then country z this, but we've seen a rise of populism and a desire to tell existing institutions to go jump in a lake. that has played out in country after country. the question we have in terms of evaluating trends now is, places we thought were immune to this have proven to be complete be volatile brexit, trump, now we don't know what we're missi

to cut 30,000 jobs including 23,000 in germany at a conference in frankford, ecb president mario draghithdrawing qe depends on a sustainable inflation increase. bracing for a trump presidency, draghi also spoke out about scaling back bank regulation. >>> and president obama wrapping up his european trip meeting with eu leaders in berlin. he urged them to continue close cooperation with the u.s. during it will incoming trump administration. the leaders also agreed to maintain sanctions against russia for its intervention in ukraine. >>> one week away from black friday and still no air pods. so what should we expect from apple as we kick off the holiday season? joining us now, joanna stern, "wall street journal" personal tech columnist and farhad nanjou, "new york times" tech columnist. joanna, you're here at post 9. >> and he left his air pods at home, i guess. this is my q tip and my dental floss. neither of those in san francisco. >> the holidays are tough, joanna, and i believe it was the i-mac, apple had some trouble with delivering. i don't remember if it was last year or two years

in an address to the eu parliament, ecb president draghi said growth is recovering, debt is sustainablebut politics a big topic of focus, as it always is in europe. elections in austria and the referendum in italy. >> yes, can't wait for this weekend. >>> when we come back, an inside look how one company is looking to secure the billions of dollars spent on cyber monday. a cnbc exclusive with the president of first data is next. as we go to break, coming off the record highs we saw last week. s&p is back to 2205 more "squawk alley" continues in a moment. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley >>> hello, everybody, an update on this breaking news situation at ohio state university, where a shelter in place was put in place a little bit more than an hour ago. an active shooter bulletin was tweeted out by ohio state university. we have just been

joe: earlier in the show, matt joked that overnight, trump has accomplished what mario draghi and janet not been able to accomplish in years, which is to get investors to think inflation is coming. trump istation is spending, fiscal stimulus. >> that is something that fed officials have been talking about for a long time this year. "we need more help. we cannot do this all on our own. it is time for structural fiscal policies to take the baton and ift the outlook." it's fascinating because that is what we are seeing in markets today after the election result. if you look at the curve and pinpoint exactly what is going on, it looks like the probability of hitting in laois and above 1% or maybe above 2% has been going up, but the has not beenf 3% going up as much. markets are really seeing this sort of development that apparently is going to allow the fed to hit its inflation target but not necessarily cause runaway inflation. joe: so what are the expectations with regard to tightening? in the immediate aftermath of the vote last night, we saw markets collapse and they have basically reco

investors are also keeping an eye out for remarks by ecb president mario draghi as he addresses the european parliament in shas party later -- in strasbourg later this monday. genie: we will try to get back to that later in the day. for the moment, let's check out the press review. we have a corresponding with us to take a look at what the international papers are saying today per lots of focus today on france's first round of its center-right primary. >> that's right, a surprise winner, francois fillon, somewhat of a dark horse in the first primary election held by the conservatives in france. let's take you through some of those headlines. "liberation," the french meaning -- the left leaning french paper, says "francois takes off." a very defeated sarkozy there. the fillon calls in tsunami wave. 4 million people turned out to vote. genie: i do not know how many people outside france are familiar with francois fillon. how have the international papers been reporting on this? >> there is huge focus on sarkozy's defeat, they be even more than francois fillon's first victory. fillon, the belgi

the director of the european central bank, mario draghi, hinted at a possible extension of the quantitativeing program. >> the focus should be on newementation, not on design. regulatory measures should be implemented in a balanced way, that ensures a level playing field, globally. and while marginal adjustments are possible, there should be no rolling back on what has been decided. >> we also received a revised from the finance industry and it has not been revised upwards. the finance minister announced on the radio this morning that the economy is expected to grow by 1.4% in 2016. they maintained this will not negatively affect the unemployment rate. the decision to withdraw 85% of india's currency has been wreaking havoc. long lines at banks and huge inconvenience. farmers and the poor are hard-hit. india's rural economy mostly runs on cash, meaning the government's snap decision to pull 80 5% of the currency out of circulation has been disastrous. are a lot of problems. we don't have cash. and we can't buy anything with the old notes. no one takes the old notes. there is a huge rush at

mario draghi to get a unanimous decision, it is the most likely outcome.et, she is staying with us. janet henry, hsbc global chief economist. here's headlines with emma chandra. emma: the present of turkey is threatening to reopen the borders and flood europe with millions of migrants. reacting to a vote in the european parliament when lawmakers called on the eu to spend turkey's membership talks. turkey is feeding more than 3 million refugees. further, hees will let them leave for europe. fires have caused thousands of people to flee homes. hardest hit was the city of haifa. israeli officials said the been arson and 13 people have been arrested. the prime minister of hungry says he will no longer be considered a black sheep in the eyes of washington. he says that president-elect donald trump has invited him to visit. in july, he became the first leader to publicly back then candidate chart. president obama shunned him during his two terms and criticized him for you rubbing democracy. global news toy for hours a day powered by 2600 journalists in more than

people draghi newspaper stands into the streets, smashing electrical boxes with baseball bats. one guy trying to light a tree on fire. hours ago, this message from police. portland police bureau. jummy: everyone at that demonstration, arrested. it was at that point the police busted out the tear gas to break up the grounds. the second night in a row in california, protesters shut down highways in oakland. you can see them there blocking traffic in both directions. in new york, just as active, marching and gathering to vent their frustration over the election results. i'm going to keep following the story and will bring you the latest as a comes into the newsroom. larry: sam sweeney is parked outside trump international hotel this morning. security there still tight? tell you about a shift change that we just saw. before we had a lot of private security, but down here at the end now you can see these are all easy police officers were now in charge of protecting the trump hotel. a little lesson one dozen police cars, we haven't seen what's on the side yet. they continue to look d

while mario draghi adds the euro area will vote with resilience. more on brexit this hour from the eu trade minister. crude oil trading above $47 a barrel. iraq must decide to cooperate with opec this week. they had to -- we had to vienna for an update -- head to vienna with an update. six incomer from strategist on if there's any end in sight. wherehave a look at european equities are trading right now. just under 30 minutes to the close. what was the longest-running weekly gain since july, three weeks for the stoxx 600 has come to an end. we are seeing losses pretty much across the board. greece down more than 3%. down one point 8%. we are seeing the euro stoxx 50 down, germany's dax down as well. sterling has dipped below 124 today. down 5/10 of a percent on the pound. in fixed income markets it was a good 10 year yields the german 10 year yield down five basis points. we see yields move down in the core in france and germany if we look at the bond market. a lot of movement in commodities as well. i will get to oil in just a moment. we are seein

maria draghi presents the ecb's annual report. edal ofw, the middle freedom ceremony. on wednesday, the u.k. chancellor philip hammond makes his statement. and the u.s. equity and bond market are closed for they've given. then, friday is the start of the holiday shopping season. manus: trading places after the election of donald trump in the united states. is china now positioning itself for the champion of free trade? whippinwe bring you all the mov. chancellor philip hammond delivers his first statement. we get the views of britain's biggest lobby group. and finally, building a team. u.s. president-elect donald trump met with candidates for the roles of treasury and defense secretary this weekend. we take a closer look at his options and what it means for the market. stay tuned. this is bloomberg. ♪ manus: it is just 10:20 in two dubai. in hong kong, it is 1:20. now, let's get to the business flash with juliette saly, standing by. juliette: manus, pretty dull in hong kong. cyber security giant symantec is purchasing lifelock for $2.3 billion. lifelock is also being p

while mario draghi adds the euro area will vote with resilience. hour from the eu trade minister. crude oil trading above $47 a barrel. iraq must decide to cooperate with opec this week. they had to -- we had to vienna for an update -- head to vienna with an update. six il hear from

this chart which you cannot see, mario draghi's favorite gauge, five-year inflationary rate, which is%. it has come off record lows in one .2%. expectation arising around the world on the back of the trump victory. they were rising thereafter. is it warm rented, michael? should expectations be rising? -- is it warranted, michael? michael: we do not think so. it is overdone in terms of the u.s. inflation has already been on policy push trump's the risk it goes further. in europe, still plenty of slack and the ecb has a lot of -- a lot to do. is aink the move in europe bit overdone unlike the moves in the u k and the u.s. are treasuries, themselves, oversold at the moment? achael: we have called about 50 basis point to selloff in the 10 year point if trump got elected. that is about what happened because we think the markets should be prices that not only higher inflation but higher inflation risk premium and real rate. we have gotten is that and we think will stabilize and arranged around these levels. vonnie: what about treasury security? a look into my bloomberg and you can see there

one of the biggest concerns draghi has is that core inflation is not picking up.man inflation numbers today, they were weaker in november than october. we are not getting the traction for inflation and that is something that will keep the ecb in an accommodative mode. vonnie: we can get weaker sterling and weaker euro and weaker dollar, can we? >> i think we could see, it depends on the pairs you are looking at, dollar-yen to me is the one that perhaps has room for downsize on the dollar. stirling is interesting because we have a lot of bad news priced into the town. -- pound. the prognosis is uncertain politically. we could see the pound doing quite well against the dollar but more so against the euro which is facing big political headwinds. i am not sure we see the headwinds in the price of the euro yet. nejra: it is interesting you talk about the pound versus the euro, i have been asking people are you shorting sterling or long the pound versus the euro? today, we see sterling right now, what are we, 124.99, below 124 yesterday. what are the dynamics? today, mo

but based on what mario draghi didn't say the last press conference, based on what we've heard from othergovernment council members in the meantime, i certainly fear that we are heading towards a change in ecb policy stance going forward, and that's when the lead to some volatility in the markets. earlier, he said if the ecb doesn't stand, we could see really big moves. what kind of moves and we talking about? mr. athey: with italy already trading, closing in over 200 overabundant -- over bund already, and with the ecb sounding hawkish, would it surprise me if italy traded 100 wider than it is right now? i don't the get wood. does it selloff because there's or there'suying, pressure in the periphery. it's difficult to come up with a solid base case. it's been flattening because of the hunt for yield and the ecb bond buying. as an awful lot of different moving parts and some are pointing in the same direction and other those maybe not. italy and spain have been a big beneficiary of the policies. nejra: on treasuries, looked a lot of that widening spread itween treasuries and bund, suggests

what signal would it send to markets if mario draghi had announced changes?i think if you had announced something more meaningful, that would have suggested that the impact of the k decision to the leave the eu was already being felt in the european economy. you rate decision comes down in line with expectations, read and financing rate is zero, and deposit rate -40 basis points, and marginal facility is unchanged at 0.25%. the ecb says qe will run throughout march of 2015 or beyond. what do you make of that? >> the fact there is little volatility in the market is allowing him breathing space. he wants to keep his powder dry. jonathan: as we await this ecb rate decision, the major estimate is for rates to remain unchanged and a company unchanged with a deposit rate -40 and margin lending activity staying at 0.25%. no big surprise. what they did not discuss is the extension of qe beyond march. they didn't discuss that horizon at all. they did not discuss tapering or quantitative easing, leaving the market wondering what did they discuss and that in that meetin

and i think that's why -- >> andy, mario draghi has done everything including the kitchen sink. change the balance sheets of these banks, does it? >> no, it doesn't, rick, but i think he's going to try to figure out ways to allow the banks to make money in an environment of low to negative interest rates and that hasn't happened as of this point in time. >> well, faux fix is result and wider spreads, i imagine that the u.s. markets remain stable with even higher rates against those weak counterparts. thank you for taking the time, andy. now we're going back to sara. >> all right, rick, thank you. when we return, mobile shopping hitting a record. we'll speak to the ceo of bonobos, how he's planning on keeping up with online shopping this season. much more ahead on "squawk on the street." stay with us. >>> after a record number of consumers shopped online versus in store on black friday, what kind of business model should retailers be opting for at this point? joining us now is the founder and ceo of bonobos, men's retailer, e-tailer. andy dunn, welcome. >> thanks for having me. >

nejra: european central bank president mario draghi said more urgent action from governments is needed to address the structural weaknesses of the euro area. also pledged to maintain the ecb monetary stimulus. he spoke to the european parliament in strasbourg. japan has lifted all tsunami magnitude 7.4 earthquake off the coast of fukushima. warnings were issued widely, urging residents to flee for higher ground. five people have been reported injured and some bullet train services were suspended, but otherwise the region was operating as normal. go for news powered by more than 2600 journalists and analysts in more than 120 countries. thank you. this is your data check. this is what we are seeing. i want to show you gold and some of the equity indexes. we did not see a record hyper indexes in the u.s. zero point00 gaining 5%. i also want to show you yen.ar- this is a picture for crude oil. 48.50. the video message, president-elect donald trump has spelled out six areas he intends to act on his first day in office. he started with trade and his intention to withdraw from the transpacifi

heard from mario draghi earlier. he said the recovery isn't strong enough to deliver.ent story the markets are making in the u.s. level of monetary support to be a key ingredient for the economic outlook of the coming years. downan see assets are 0.2%. this is bloomberg. ♪ francine: president-elect trump is going to meet with mitt romney. will he healed the republican rift? the dollar looks back for a 1990's record. investors bet on the policy divergent. city, heads in the bankers are softening their warnings that brexit will force relocation from london. we continue our continuation with gina miller. this is bloomberg surveillance. tom keene is ready to pack his bags and leave. tom: the dollar is moving. i've got to go home. it's interesting to see, we are looking for white smoke emanating from the tower. we haven't seen it so far. governor romney of massachusetts is front and center. francine: talk to me about the pageantry to get people to come to come tower. tom: i live right by there. it's a huge deal. one of the conversations of the week, there was a massive effe

mar y mario draghi, he promised if asked to he'll buy securities, investors are buying them first. what they're selling, selling bunds and even to some extent coming in and buying some bonds. look at one week -- excuse me, intraday bunds versus the italian. you see the way that spread is coming down? that's also something to pay attention to. and finally, how does all this play in with the dollar index, rates are giving it up. mid-november chart of the dollar index, the 8 session, we closed 101 or higher. we're flight right now. these are all key levels you need to watch them and pay attention to draghi in italy and guess, what, "power lunch," of course, will return in two minutes. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement i

there is still draghi standing behind the eurozone. is clearly the risk of some tension building in the eurozone. "risk,"when you say define that risk for me. ron,mart money got brexit got the u.s. elections -- got brexit wrong, got the u.s. elections wrong. playing for the same agenda. yousef: do you see the populist taking over? >> that remains to be seen because elections need to be held. partially on an anti-european agenda. let's face it, europe is not very popular as a project. that appeals to a larger part of the public and that is the agenda they are running on. anna: what kind of success is he going to have? >> he has been there for a long time so he is not a newcomer. he has an appeal. in the netherlands, you have to form a coalition government and he will find it very hard. even if he gets a strong part of the vote. . am not that overly concerned i am more concerned about italy coming up first and then france. anna: what about austria and germany? you do not see the populist faction as much of a shock as france, for example,

janet yellen, mario draghi, they have told policy-makers, hey, the next time a recession rolls around, the next time you have a problem, don't look to us, it's fiscal policy. the gridlock you get today you might not like it so much in the next year and they can't come up with the fiscal simmelkjatimulu need. >> we say political uncertainty has been building and building over the last few months. it obviously peaked really over the last week when you saw a lot of machinations in the campaigns, when you take a step back and that political uncertainty dissipates, you can look at the global liquidity outlook. it's growing. services up close to 55. liquidity conditions are changing quite rapidly, we will turn our attention to the rates. wily the we will go up in december. so as we take a step back, the markets are put in a position with that outpush, they're selective. this political uncertainty will dispay. >> let me ask you this, why if clinton wins shoond you fade the rally? >> i seen some suggestions that you should. >> if 23 take a look back at where growth is in the u.s., growth is i

the bond buying program that was introduced by president draghi was largely the reason the financialhings have changed. back then the story was about financial markets pushing a country out of the eurozone project. now we are talking about an electorate bush in a count out of the eurozone project. that's a big change. pushing a country out of the eurozone project. that's a big change. the threats of the eurozone project is not coming from financial markets, it's coming from the electorate. do you not see that as a threat? >> i think you are right of course. the resilience of the technical part and economic part of the project has now to cope with this populist move and protectionist move for that we see in all advanced economies. say that theto overall political stress that we had at the moment of the crisis was also very grave. take greece. a very strong was position to adjustment. it was a very strong position to the so-called conditionality which was coming from the imf and the european friends. still the people of greece very clearly said we don't want to lose our own belonging t

what does it mean for mario draghi?s he need to pressure brussels and juncker to do their bidding? >> i think he's tried his best. he's done everything he can on monetary. is he running out of road? he knows he is. one there. we really need some sort of coordination on a fiscal approach in europe. do you worry about the italian referendum? >> very much. the opposition in this are all anti-euro. lindsay is starting to make the understandable thing, i will resign, government will collapse -- francine: he's a technical administration. renzi was never really voted in. onlynetheless, that is the likely upside for italy in that sense. attempt having one last to see if he can win, but the polls are not in his favor. that is quite a scary thought. francine: we haven't had polls for a wild, but something we need to keep an on. marcus ashworth from bloomberg gadfly. check out his piece. dark days for the euro. stay with "surveillance." plenty coming up. the new republican front runner in france pledges to shrink the state. theres

have political risk and we will talk about the italian referendum, the french election, and mario draghio keep these bond yields artificially low so you can't see that risk, it would be unwise, i would imagine, to unwind that safety blanket. mark: i think there is interesting potential around this question. francine: the dollar has been there for a while. ewen: the reasonable lending figures, an economy which is not exactly in a disastrous stage in northern europe, whether that starts to get -- mark: that, to my mind, is the most important switch of the pendulum. not whether the fed does two or three next year now because the fed has already -- francine: what are you expecting them to do, the ecb? mark: i think they will probably stay where they are and they will try to do nothing and december and then the market will say, why are you doing nothing? francine: but the banks. are they worried about the banks? ewen: i think they are worried about the banks. ,he facts they keep repeating how bad with the banks be if we had not done what we did? mark: the banking industry needs to sort itself