francine: was that for the launch of the app? jean paul: yeah. francine: fantastic.paul: i wanted to share with the board the fantastic progress. it is amazing. red., pure i know i don't have any on. >> it is like amy winehouse. francine: this is amazing because you have to change your research and development. how much cost goes on digital products? say paul: difficult to because it is everywhere in every brand in every division, but now more in terms of media, one third of media we do now goes on digital. 7% roughly of sales in e-commerce that we do for digital. it is growing 30% a year, so there is a shift happening, which is extremely fast and strong. thatine: the company invented the platinum blonde is constantly innovating and developing new products as consumer demand changes. in paris, scientists have studied 7000 types of hair and are experimenting with 3-d printing. the hope is to one day help people suffering from hair loss. has already created fake skin to avoid testing products on animals and invented a uv patch to monitor exposure to sun rays. threeaul:

francine: is europe great?: it has challenges because there is no fiscal union, nothing holds as together in terms of a policy standpoint but i think the europe has seen the worst in terms of jumping into all sorts of directions. it seems like sentiment is more integrating. francine: you don't think we can come back? that we somehow forget the concerns of populism in europe and it comes back uglier in five years? joe: i am very encouraged, first of all that people are saying hmm, people stood up and went to vote. because they saw that things were not going their way. this was what was the most encouraging thing to me. it is time to take it into hand. that is quite positive, honestly. francine: how do you see china? joe: china, hmm. the chinese way is to typically sit down and smiled. look what happens. today, in the western world having not yet fully straightened out what we all mean by what we say kind of, the chinese say, hey, if there is no western leader anymore in global trade and things like that, then wh

francine: not bad. jean paul: not bad. francine: tell me about your success in china.s it through distribution, ads, through celebrities? what is the attraction? jean paul: the reason for the success is always the same. it is number one quality. for all our brands our absolute priority is the quality and safety of our products, and it is something the chinese respect a lot. it is very important for them. number one, innovation. innovation is extremely important. it is an industry where you have to innovate a lot. more than 15% of our products every year our new in order to keep innovation flowing very strongly. of course it is the imagery of the brands like giorgio armani and l'oreal paris, it is beautiful imagery, and chinese consumers are very sensitive to that. they like it. francine: is the u.s. a tough market? jean paul: the u.s. this year is a bit tougher, a bit softer, certainly softer than china, but it depends. last year, the u.s. was very good. so every year, it is funny, because every year the market roughly globally is more or less growing at 4%, but it is

francine: is he demanding?e is demanding, yes, he is demanding, but no more than he is on himself. he has coined this phrase that we all have to be students of the market. that there is no excuse for anybody at blackrock not to be a daily student of the market. and i think that shapes the culture very much at blackrock. this relentless kind of never be satisfied, always remember that the world moves on, you have to learn every single day. so we have a lot of initiatives around internal programs and academy, where we really force everybody and encourage everybody to kind of live that motto. if people can't do that or don't want to do that, then they are in the wrong place at blackrock. so the culture that he carries very much runs throughout the firm. francine: what's the question you get asked most internally, and by your clients? philipp: well, you often get asked, what's it like to work with larry? philipp: but i think on substance for a long time since the crisis, it was about the future of europe. and then

francine: will europe stay together? philipp: yes. francine: you are a firm european believer.s world of globalization, the only way for europe to be influential today is to have a strong common voice. francine: so when you decided to resign, how difficult a decision was that? january 9, 2012. philipp: it was tough. i loved being a central banker. serving the central bank, my country, is certainly the greatest privilege i've ever had professionally. but ultimately, public service is not about yourself. it is about the institution you serve, the people you serve, or the country you serve. and in that context, it was the right decision because it needed, the circumstances were such that credibility was of the utmost importance, and the best way to preserve the full range of action for the central bank, remember in a difficult environment, this was more or less the tail end of the crisis, things were uncertain. the euro crisis was still in full bloom. it was very, very important that there were no questions around the leadership, so it was the right thing to do for the institution

francine: is he demanding?is demanding, yes, he is demanding, but no more than he is on himself. he has coined this phrase that we all have to be students of the market. that there is no excuse for anybody at blackrock not to be a daily student of the market. and i think that shapes the culture very much at blackrock. of never beess kind satisfied, always know that the that the world moves on, you have to learn every single day. so we have a lot of initiatives around internal programs and academy, where we really force everybody and encourage everybody to kind of live that motto. if people can't do that or don't want to do that, then they are in the wrong place at like blackrock. so the culture that he carries very much runs throughout the firm. francine: what's the question you get asked most internally, and by your clients? philipp: well, you often get asked, what's it like to work with larry? [laughter] philipp: but i think on substance for a long time since the crisis, it was about the future of europe. and

francine: thank you so much.etti: thank you. ♪ ♪ lord king: it is difficult to exaggerate the severity and importance of these events. not since the beginning of the first world war has our banking system been so close to collapse. francine: mervyn king was at the epicenter of the biggest exercise in crisis management in modern financial history. he was in charge of the bank of england in 2007 when the credit crunch struck, responding by slashing interest rates to near zero and pumping billions of pounds into the economy. join

francine: thank you so much.derico: thank you. ♪ . . . ♪ narrator: this is "bloomberg pursuits," where we show you how to live your best life and spend your money well. today, we take you for a drive in a ferrari. hannah: this is the perfect ferrari for those who love to drive. narrator: we take you into one of the world's most innovative light-design studios. plus, "pursuits'" ultimate holiday gift guide. >> today we will be showcasing items from action sports to home decor.

francine: thank you.man of bloomberg lp is also a senior independent, nonexecutive director at glencore. we want to make things clear for everyone watching david herro. stays with us. if you have any questions, you are free to do it. and puto tv questions to ask david herro using the id underneath the video screen. this is bloomberg. ♪ ♪ this isine: bloomberg surveillance. >> payoffs on the wasted the ponzi scheme. the company will send out checks million.$584 so far, victims have received more than $11 billion. half of those will have the covered the entire amount invested. weak holiday sales made caused toys arrest to close at least 100 stores in the u.s. u.s. sales have fallen in the chain by about 15% this christmas shopping season. toys "r" us filed for bankruptcy in september.the biggest u.s. pension fund is trying to reduce its risk. california's state employees pension fund is boosting their fund 28%. some say it now may not be the best time to risk exposure to stock because of tax reform. th

francine: nothing at all?o: i know that doesn't sound good, but i think we really have the best business model for luxury. because we are full control of the supply chain. and the brands, they want control, they control prices, service, they control the prestige and this business is about prestige. so if you have a fragmented supply chain, i think you lose control and the brands would lose control and it doesn't work. so for this specific category and this specific industry, i think we have the best business model. if i get frustrated -- sometimes i get frustrated, the only thing i get frustrated about is speed. because you know, i am an entrepreneur that is passionate about speed. i am always driving and trying to push everybody with this sense of urgency, that is part of my job. francine: federico, thank you so much. federico: thank you so much. ♪ ♪ francine: joe kaeser is a rare breed of chief executive who has dedicated his entire professional life to a single company. he was a young business graduate when

i'm francine -- i'm francine lacqua here in london.s is what i'm thinking on the markets: a little bit of an upswing when it comes to european stocks. significant moves earlier on. data points in a straily a disappointed investors. i'm looking at this litmus test to see if it is a risk on risk. 166.7 -- 112.67. we sit downhour, with the rbs chairman. howard davis will talk exit and the ranking landscape. later on, we will speak to the deutsche bank chief economist, david for kurtz-landau -- folkertz-landua. nejra: theresa may is expected to propose -- two simin another proposal for brexit. reporters were told yesterday that quote, having consulted with the people of london, she wants to come back with some tests. european officials are said to be flexible over a deadline, as they appear to seem talks move on to trade. trump'st donald decision to recognize jerusalem as israel's capital has prompted condemnation from global leaders, and protest in the middle east, raising concerns -- raise move could new violence. it is time to officiall

francine?t hearing again from them saying that position progress was important and a necessary step. this is something a little more forward in terms of reconciliation and the town in the last 10 days has stopped. i know you probably have a currency question. tom: you mentioned earlier a weaker dollar. fold in the distinction between cable sterling dollar and eurosterling. obviously it's a eurosterling discussion, but how does unicredit parse those two united kingdom currency pairs? vasileios: very good question. i think it's fair to say that we have a more bullish view on the euro relative to sterling. overall we see sterling gravitating higher than 90. we do not think the levels are of parity or there about largely because of the brexit premium. i think there are two main mentions. first is the political and economic dimension. from a political and economic perspective, i've serious doubts that we will see the end of it by the end of 2020. from it asset price perspective and the sterling pers

die, francine? -- guy, francine? francine: thank you. on climate change. if that is speaking on climate change their radically, we want to talk about the financing of climate change. joining us from paris this morning is the chief investment thank you for joining us. when you try to convince him in your investors that it is a good idea investing in green, what you need more and 2018 to make it possible? >> we have taken a major aitiative and announcing major green bond fund dedicated to green bonds in the emerging market space with imc world bank. private,is to unlock trending towards climate-related products. the problem is very simple, actually. lowhe one end, you have the yielding securities. on the other hand, you need investment. we have two problems to solve. one is the capacity to invest in the emerging space, specifically to manage risks attached emerging markets. the second is the capacity to invest in cross structure projects, question of assets insurance it originates in. and to basically bring the best of two worlds, this par

♪ francine: he has been dubbed the geek of chic.e is a tech entrepreneur in the world of luxury fashion, founding the online retailer yoox as an online marketplace. 15 years later, he merged it with its biggest competitor net-a-porter, creating the biggest online shopping giant. joining me on "leaders with lacqua" is federico marchetti. thank you for joining me and speaking to bloomberg. fashion or tech entrepreneur, what are you? marchetti: i am 50/50. i think it was my advantage. i look at fashion from a nerd point of view and technology from a business point of view. i try to find a link between the web, fashion, and luxury. lacqua: do you only work for yourself, or that you have revolutionized the way that we do things? marchetti: tech and fashion entrepreneur -- i liked the feeling that i was building something from scratch. i started with no money. my family is a very normal family from the northeast of italy. i really -- i feel like i am a builder. i am not an entrepreneur. i am not someone who is building and selling, like i

francine: what will it take?e see everything moving on these kind of negotiations blow by blow, have an impact on pound. what will it take to move the bond market? see what we are likely to now is questioned whether the u.k. economy can bounce back a little bit in the new year with the additional certainty that this progress creates. so can the bank of england's hike slightly earlier than expected? for my part, it looked to me like the u.k. economy has been overly negatively affected by uncertainty so far. i am not expecting much of a bounce. because sterling is rallying, that means we are going to get lower inflation next year. bank of england may have to be balancing the opposite problem which is growth picking up. inflation heading well below target. it will be interesting to see what they do their. -- they do there. what would move the market there is if you get a big bounce in consumer and business confidence. that is the thing to watch. i'm not so convinced. we need to west pmi's. francine: we haven't heard

francine: is europe great?as challenges because there is no fiscal union, nothing holds as together in terms of a policy standpoint but i think the europe has seen the worst in terms of jumping into all sorts of directions. it seems like sentiment is more integrating. francine: you don't think we can come back? that we somehow forget the concerns of populism in europe and it comes back uglier in five years? joe: i am very encouraged, first of all that people are saying hmm, people stood up and went to vote. because they saw that things were not going their way. this was what was the most encouraging thing to me. it is time to take it into hand. that is quite positive, honestly. francine: how do you see china? joe: china, hmm. the chinese way is to typically sit down and smiled. look what happens. today, in the western world having not yet fully straightened out what we all of, thewhat we say kind chinese say, hey, if there is no western leader anymore in global trade and things like that, then why don't we do t

francine: i'm looking at cable. your chims shopping, come to london, do it here, and fly back, in all two days. a good christmas top. charles, isabelle stays with us, and charles, thank you so much. in the meantime, you can also look at tom and i using tv go, so just log on to tv go and then ask isabelle some currency questions or christmas shopping. tom is pretty good on christmas shopping, especially when it comes to european brands. log on to tv go. this is bloomberg. ♪ >> this is "bloomberg surveillance." let's get the bloomberg business flash. one of the largest railroads in the u.s. was caught in the midst of a revolution by the death of its c.e.o. hunter harrison died on saturday. in less than a year, he added almost $17 billion in value with cost cuts and scheduling changes. he'll be replaced on an interim basis by jim foot, who arrived less than two months ago. in toronto, the police homicide unit has taken over the investigation into the death of a pharmaceutical billionaire and his wife. authorities say t

francine: will europe stay together? philipp: yes. francine: you are a firm european believer.p: in this world of globalization, the only way for europe to be influential today is to have a strong common voice. francine: so when you decided to resign, how difficult of the decision was that? january 9, 2012. philipp: it was tough. i loved being a central banker. serving the central bank, my country, is certainly the greatest privilege i've ever had professionally. but ultimately, public service is not about yourself. it is about the institution you serve, the people you serve, or the country you serve. and in that context, it was the right decision. because it needed, the circumstances were such where utmostlity was of the importance, and the best way to preserve the full range of actions in a difficult environment, remember, this was the tail end of the crisis, things were uncertain. the euro crisis was still in full bloom. it was very, very important that there were no questions around the leadership, so it was the right thing to do for the institution. it was the right thing

francine. francine: thank you so much.n to another store just another story. .arly put them on -- puigdemont the result is they blow to the spanish prime minister after he placed direct rule over the region to stop them from declaring independence. maria, this doesn't mean we are closer to independence, it just means the situation will make investors nervous. they need to find a solution. the idea of independence is no clear. it doesn't give puigdemont on whether the next president happens to be, he is getting ready to make the announcement. they have a mandate that is not any stronger than it was before. the party managed to hang on to its majority of the loss both seats. if you look at the actual winner on the ballot, pretty vocal about staying in spain. they had a great night and one many votes. it doesn't mean independence is any closer we are going to get a cabinet parliament that is going to be very messy. the parliament is going to be controlled by pro-independent party. looks like we are going to get a long the all

francine?f investing, something we're going to look at here as we go into the end of the year and frankly into 2018. i want to bring up the bloomberg era. this is a chart that philip looks at every single day. this is the equity report. more important for blackrock to look at fixed information in short paper. this is the single digit markets we're in. sarcastic.'m being the s&p down. we can slam this thing into swiss fraungs. delothse that now. you can see it up in the corner. moves from 17% down to 13%. do you just assume dr. hildebrand regression to the mean, reversion to the mean rather, just assume like every other series we come back to normal in 2018? >> what matters for investors is the long-term. and if you look at that question, what is key is where interest rates will ultimately settle. i think most reasonable observers assume today still and i would put myself in that camp, we will be in a longer environment for sometime. i don't think we'll see any extreme formor secular stagnation

francine: will the u.s.d do they have an interest in speaking with one voice? will you ever see an agreement between russia, opec, and the u.s. shale producers? edward: i doubt it. shale producers are leading major companies that are fearful of competition among them will ruin the profit margins they generate. these are cockroach companies. they multiply and cannot be killed off and keep coming back with new dna in them. but we are seeing now is the u.s. playing a much dramatically greater role in price determination than has ever been the case. the u.s. is the major exporter and importer of oil in the world . the u.s. is the largest exporter of natural gas liquids and petroleum products like gasoline and diesel. it overtook russia a couple years ago. the margin, the u.s. is also exporting an incremental barrel of oil, so it has become a competitor of opec. tom: take your microeconomics and diplomacy that you learned, and give me a window into weight -- late next year. what is the determinant, the distinctio

francine: how do you explain brexit?king: so it looked as if there was a propaganda campaign going on. ♪ for the governor of the bank of england, sir mervyn king. francine: in 2013, mervyn king stepped down as governor of the bank of england. after a decade at the helm, he helped steer the economy out of a financial storm, but he did not stop sounding warnings that the world faced a new crisis unless there was reform in the financial sector. where do you think the next crisis lies? lord king: i would guess, if i had to, it would be in the area of higher amounts of debt, because the amount of debt in the world today is larger than it was years ago. i think the risk is that there will be some defaults around the world, which will not look coordinated or related, but actually they will have knock-on effects and lead other people to default. and i think once that happens, you may find that the banking system once again looks maybe overleveraged or undercapitalized because the losses that they will take as a result of these d

this is bloomberg. ♪ francine: this is "bloomberg surveillance." i'm francine lacqua.e bloomberg business flash. sebastian: cvs is buying aetna, creating a giant that will have interest in everything from insurance to local pharmacies. cvs will pay two thirds in cash and the rest in stocks. the day before the two were reported to be in negotiations. -- has agreed to by general cable in a deal that expands the italian's precedence in north and south america. they will pay $30 a share in cash. that represents a premium of 81% to the closing place of july 14. rio tinto has named a german, reinforcing a drive for higher returns. director andhe previously director at anglo american. -- is stepping down after taking a the same position at bb group. walt disney has renewed forussions over a path 20th century fox. disney joins companies looking to buy a piece of them are not family empire. facebook is to 800 new staff in london, expanding its headquarters. the jobs to be recorded over the the numberill bring of staff working for the social network in the u.k. to 2300. companie

francine: can you estimate?> i think we can easily grow 30% per year for many years to come. 2% ofbonds remain only averages in china. in -- number in china is .till way too low francine: is this one of the priorities? why is green finance at the heart of what you are trying to do? >> the origin of the idea that is that the private sector has to finance the majority of the green projects. we were estimating that a fortune in renminbi was needed to invest in the green space including environmental remediation, green buildings, to green transportation and so on, but the government can only provide 10% of financing. capitalwhy mobilizing becomes key. francine: is china doubling up on financing because the trump administration is pulling out of the agreement or would it have been the same either way? >> in a think the u.s. e-cig decision to withdraw from paris has much impact on us. we are driven by the government policy division to build a green policy, green finance system. at the grassroots level, there are lots

tom keene and francine lacqua have the day off. francine has been busy.real, is on a mission to transform its business, boasting a portfolio of 34 international brands. it is heavily investing in e-commerce. the ceo talks about the company's secret to success and how demand in china is growing. here is a taste of the show francine lacqua began by asking what sells at the moment. >> this year, luxury. this year, luxury has been booming everywhere. mostly with chinese consumers. chinese consumers are fantastic. they love beauty, they love luxury, they love our brands and their business with chinese consumers everywhere has been booming. not only in china, because they are everywhere. they are in china, they are in hong kong, japan, they are even in london. >> have you had to adapt to the chinese market? >> yes, the products we sell not for all brands. the luxury brands are the same over the world. for our brands like l'oreal, maybelline of the products that we sell in china are made and formulated in china, by our chinese labs. >> because of regulations? >>

as d-j terrell and his mom, francine, look through old photos, they both agree - he has come a long waylaced him in the terrells' lives."he prayed for a family like this, and when i heard that i knew that he was the right child because i had been praying for a child that would fit into our family."as a child, d-j had been in seven foster homes, and attended nine different schools.when he was in fifth grade, francine and her then-husband took him into their home, along with their older daughter jasmine.now, as a junior in high school, d-j and his family just celebrated the one-year anniversary of his official adoption. "christmas is a warm feeling. i don't need to worry about if i'm getting loved. i get love all the time. i'm finally part of the family. no matter what happens, i'm always gonna be with them, ya know?"he's one of the lucky ones.a clinician from the agency that guided him and his family through foster care and adoption...says there are 60 thousand kids in california who are in the foster system waiting for adoption, or at least some form of permanency. the holidays can be a

i'm francine -- i'm francine lacqua here in london.e markets: a little bit of an upswing when it comes to european stocks. significa

francine: you have done more than any other central bank governor to try to get inflation up. spoke six months ago, you went outside the toolbox. are you still confident that you can achieve 2%? there's no doubt? even if yen goes higher? >> as i said, our forecast in the sense that we would reach 2% target around fiscal 2018 is based on the exemption that the exchange rates would not move, and so on and so forth. so that exchange rate appreciates, of course timing , could be slightly delayed, and if exchange rates depreciate, the timing could be earlier than otherwise. but the basic trend is toward 2% in a gradual amount. -- a gradual manner, reflecting the improving environment. francine: so would it be fair, governor, to say that at the moment you could either ease or lighten? >> i think at this stage we would maintain the current regulatory monetary policy stance. rishaad: when the world's central bankers came to jackson hole in august, the federal reserve in the european central bank were both looking ahead to tightening. itsfed planning to reduce balance sheet, and the ec

as d-j terrell and his mom, francine, look through old photos, they both agree - he has come a long wayoster system first placed him in the terrells' lives."he prayed for a family like this, and when i heard that i knew that he was the right child because i had been praying for a child that would fit into our family."as a child, d-j had been in seven foster homes, and attended nine different schools.when he was in fifth grade, francine and her then-husband took him into their home, along with their older daughter jasmine.now, as a junior in high school, d-j and his family just celebrated the one-year anniversary of his official adoption. "christmas is a warm feeling. i don't need to worry about if i'm getting loved. i get love all the time. i'm finally part of the family. no matter what happens, i'm always gonna be with them, ya know?"he's one of the lucky ones.a clinician from the agency that guided him and his family through foster care and adoption...says there are 60 thousand kids in california who are in the foster system waiting for adoption, or at least some form of permanency. t

as d-j terrell and his mom, francine, look through old photos, they both agree - he has come a long wayter system first placed him in the terrells' lives."he prayed for a family like this, and when i heard that i knew that he was the right child because i had been praying for a child that would fit into our family."as a child, d-j had been in seven foster homes, and attended nine different schools.when he was in fifth grade, francine and her then-husband took him into their home, along with their older daughter jasmine.now, as a junior in high school, d-j and his family just celebrated the one-year anniversary of his official adoption. "christmas is a warm feeling. i don't need to worry about if i'm getting loved. i get love all the time. i'm finally part of the family. no matter what happens, i'm always gonna be with them, ya know?"he's one of the lucky ones.a clinician from the agency that guided him and his family through foster care and adoption...says there are 60 thousand kids in california who are in the foster system waiting for adoption, or at least some form of permanency. the

and when he walked over to rip he said i keep seeing him having sex with francine and francine's on topthe lazy. that show. larry has this cans sophisticated level of patheticness. >> actually, larry, you and i have something in common. >> yes, yes, we do. a lot of people don't know that alec and i -- well, he dated my ex-wife francine. >> no. i was referring to our charity work with multiple sclerosis. >> i know. >> people would say he's a fool. i didn't think he was a fool. i thought he was terribly needy. >> let's take a commercial break. >> i was there for about five years and everything i learned about story telling i mainly learned from being around gary. and he used to say that "the larry sanders show" is about a group of people who love each other but show business gets in the way. >> that was the secret. the characters were all seeking love. they're just covering it because it's not safe. >> what's wrong? >> nothing. nothing. it's not you. it's just -- >> it's safe to have an audience and you just -- there's only so much of yourself that they can reject. >> maybe we should watc

nejra cehic and for francine lacqua. a special election but a special election as you know it which is been hugely contentious. he is outside of the alabama state capital. this is the building that jefferson davis was it not graded front of an 1851. kurt -- kevin cirilli joins us. kevin, i want to know the buzz this election day morning. i read it all last night. it is usually fluid. what is the single thing you are focused on? khiem: good morning. it is going to come -- kevin call it is going to come down to turn out. in a state that has never voted for democratic senator indicates. bannonre act by steve and they are focusing on getting up to the rural vote as much as they can. this vote here in alabama with pulse set to open in under two hours. lawmakers, business leaders as well as athletes and media elite have really dealt with the fallout of an ongoing sexual harassment and sexual misconduct cases that are really capturing the attention of american culture. barkley showed up in support of mr. jones last night. this

francine: trade talks. e.u. leaders set to give the go ahead. we're live in brussels. approving the g.o.p tax plan. is overhaul really at risk? and disney's offer for fox should face anti-trust scrutiny. welcome to "surveillance." i'm nejra cehic in london. we're checking a third day of declines for european equities. the the stoxx 600 down .7%. the bloomberg dollar index on track for its first weekly loss in a month. the dollar weaker against yen. the b.o.j. pushing for more stimulus. we'll talk about that more throughout the show and the new zealand dollar best performer in this session on the announcement of a new central bank governor. perhaps that might not hold up with some of the data we're going to get next week but that's how we're looking in today's session. coming up today on "surveillance," we talk "surveillance" and get a take on markets later on in the morning. first let's get the first word news. greenbrussels, giving the light for brexit talks to move on to the next stage. they have complied with their conditions over a future trade deal. diplomats warn

tom, andejra, francine, happy new year.ng of the u.s. open and we could see another positive day, the last trading day of 2017. on the european markets, the ftse up 19, the cap up 19 -- down -- have a good trip to a happy and prosperous 2018, to you and everybody. nejra: thank you, carol. it has been great. ♪ alix: we made it. happy new year. the dollar is down in the yield curve goes nowhere. companies tax scramble, that compensation. apple apologizes for software updates to the iphone 6, saying it did not shorten the life of the product. david: welcome to bloomberg daybreak. we made it almost. alix: we're really close. david: it's the last trading day of the year. alix: we appreciate it. cashe 2.5 hours to the futures are higher by .8%. is 119. dollar we are looking at the best year since 2003. the 10 year yield is 242. there is a little bit of buying on the margin and crude is stronger.

i am francine lacqua. a lot

i am francine lacqua here in london. let's check in on your markets.

up next, "surveillance" with francine lacqua. she will be joined by richard noted.under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. or a little internet machine? [ phone rings ] it makes you wonder. shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. choose by the gig or unlimited. and ask how to get a $200 prepaid card when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. francine: reform in the u.s. it's another snag. do the republicans have enough senators? the biggest

matt rollings introduced me to francine in 1984. viktor krauss, he's played bass with me since 1994. buckweed's played steel with me since 1993. - what is the secret to keeping a band like that and the personalities that you just described together? - you know, they're all solo artists. they're all solo artist, and i'm just grateful that, that they wanna, they kinda put aside what they normally do for a couple of months every summer and come on the road with me, and i'm just, i think it's just because we're friends and because those earlier recordings were part of the beginning for all of us, really. - well, and honestly, they left a mark as they say, right, i mean the fact is those earlier recordings are not just anybody's earlier recordings. they left an imprint on a lot of people, and when they think about you, they think first about those early recordings, it's had some longevity to it. - well thank you, thank you. - and you're good with that. - well, i'm just grateful to, you know, there's not a bigger privilege in the world th

a guy johnson is in for francine lacqua.lowup in brussels yesterday and in washington, tax reform in markets modestly on the move. our first word news, here is taylor riggs. taylor: president trump has been handed a major victory. they will let his travel ban take effect while legal challenges go forward. the u.s. will be able to restrict entry from -- by people from 6 muslim majority countries. -- financial support behind roy moore. that comes after president trump endorsed him for next week's special election. several women have accused him of sexual misconduct. there's a changing of the guard at one of the euro area's key political bodies. thee will be a new head of region's finance minister group. to makeve the ability the euro area grow and for a longer period of time. we will make the reforms needed. taylor: the euro area finance ministers group has turned into . of the closely watched groups president trump tweeted they should look at what 401(k)s have done since the election. fidelity says the average balance of acco

tracy: that was bloomberg's francine lacqua speaking to nigel farage.uddy of a relationship, are things started to sour between the u.s. and saudi arabia? next. this is bloomberg. ♪ is this a phone? or a little internet machine? [ phone rings ] it makes you wonder. shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. choose by the gig or unlimited. and ask how to get a $200 prepaid card when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. tracy: you are watching bloomberg markets: middle east. let's check in now on the first word headlines from around the world. there have been more violent clashes in jerusalem after president trump declared it to be the capital of israel. arab league has blasted the decision and an emergency meeting in cairo, foreign ministers they would seek a un security council resolution stating that the m

francine is shopping at harrods.xplain to our global audience why the prime minister keeps losing senior ministers? lots of reasons. you could link this one with the fallon one. it is interesting that she is going to poland. if she makes friends, does she lose one on the other side? tom: we have to see. what the first word news. is taking a house victory lap after the white house passed a landform text bill. this bill cuts the corporate tax rate from 35%. two thirds of americans believe the measure was written to help the wealthy. congress is coming down to the wire on a spending bill. they are set to vote on a regulary bare-bones measure. in australia, a driver rammed into pedestrians on the street. police believe it was a deliberate act although they don't know the motive. theresa may receives her eq charm offensive today. she tries to win were friends before the brexit trade talks start in march. greenestigation found made misleading statements about pornography found on his computer a decade ago. global news, 24

francine: mifid, i know we talked a little bit the last time i came over about the pricing structure, do you think ultimately will be the winners and losers? >> i wish i knew. [laughter] best, i am our painfully aware of questions i don't know the answer to. i talked to people who should know, and what i can tell you is they don't know. we're not going to try for fixed income research anymore, and it 's a complex situation that will evolve, so i think we probably have to come back to it in the coming months. nejra: that was tidjane thiam, . let's talk more about mifid and the man behind mifid ii, chairman of the european market authority, and his profile has been elevated from once obscure bureaucrat to one of the most important voices in the regulation space. but just how is he feeling a month ahead of the mifid ii deadline? joining us, the reporters who profiled him. welcome. great profile in the latest issue. two trips to paris to do this interview, and it is a good one. it's interesting, we focused on him in the first issue of this show, and you describe him as serene. i would say