chairman of hsbc asking him what he expects to see in 2017.is good for banking business in the sense that people think carefully about what they need to hedge and how they should position themselves and what kind of contingency facilities they need badon the other hand, it is for economics to the extent it slows down people making holdingnt decisions and back on strategic options because they do not quite know what will happen next. anna: let's get back to nick nelson, still with us here in the studio. we talked about your picks about the things you like, energy, for example. i'm drawn to one of the statements in your report. 2017 will be the first copper year for european etf's -- proper year for european etf's. nick: if you look at the last six years the bottom up consensus numbers, earnings growth started at eight to 15% and every year finishes at zero or negative. the average downgrade was 12 percentage points. if you look at that consensus are up atr 2017, they 13%. the average downgrade has been 12% so if you extrapolate that suggests no

hsbc plans on beefing up its presence in asia.nt-elect donald trump already spared with china, and the policies could be of particular concern to hsbc. in my conversation with shared douglas flint, i asked him if he sees trade wars and 2017. mr. flint: i think we will see a lot of dialogue as to how the benefits of globalization should be shared, particularly around how intellectual property is rewarded. we're in a situation with three major trading zones in the world -- europe, the united states, and the asia -- where it is so intertwined that it's difficult to see that you could have a trade war without massively impacting your own country and the investors and your friends able to get goods and services from the other part of the world that are extremely good value, so it is a double-sided coin. francine: you believe the u.s. and china are both fully aware of that? mr. flint: absolutely fully aware. francine: there's not a risk in your eyes that something happens between donald trump and the president of china in 2017? mr. flin

hsbc plans on beefing up its presence in asia.nt-elect donald trump has already spared with china, and his policies could be of particular concern to hsbc. in my conversation with shared douglas flint, i asked him if he sees trade wars and 2017. mr. flint: i think we will see a lot of dialogue as to how the benefits of globalization should be shared, particularly around how intellectual property is rewarded. we're in a situation with three major trading zones in the world -- europe, the united states, and asia -- where it is so intertwined that it's difficult to see that you could have a trade war without massively impacting your own country and the investors and your friends able to get goods and services from the other part of the world that are extremely good value, so it is a double-sided coin. francine: you believe the u.s. and china are both fully aware of that? mr. flint: absolutely fully aware. francine: there's not a risk in your eyes that something happens between donald trump and the president of china in 2017? mr. flin

hsbc is europe's largest bank with more than 235,000 employees across 71 countries.ouglas flint is the bank's chairman, a role he has held for six years. he's helped guide the bank during its economic realities and this year's rise of populism has brought a raft of new political realities. in an exclusive interview, i sat down with douglas flint and asked how he would rate 2016. mr. flint: very interesting year. a lot of things were unexpected. we have achieved a lot of things in 2016. we finalized our decision at the beginning of the year. pretty turbulent market so the -- at the beginning of the year, then things quiet down a bit, and we have these two unexpected political events, the brexit referendum, we had the presidential election of the united states, which produced results that were not expected. that led to some volatility and uncertainty a great deal of thinking about what the implications would be, but we closed 2016 with both those events being factored in better than expected. so it has been a very interesting year. lots of surprises, but i think one of

hsbc plans on beefing up its presence in asia.-elect donald trump has already sparred with china, and his policies could be of particular concern to hsbc. now in my conversation with , douglas flint, i asked him if trade wars in 2017? douglas: i think we will see a lot of dialogue as to how the benefits of globalization should be shared, particularly in a world where it is less about where you manufacture and where the intellectual property is and how that is rewarded. i don't think we will see a major trade war, because we're in a situation with three major trading sounds in the world -- europe, the united states, and asia -- they are so intertwined that it's difficult to see that you can have a trade war without massively impacting your own invested thereve and your consumers who are able , to get goods and services from the other part of the world that are extremely good value, so it is a double-sided coin. francine: you believe the u.s. and china are both fully aware of that? douglas: absolutely fully aware of that, yes. franc

♪ francine: hsbc is europe's largest bank with more than 235,000 employees across 71 countries.ouglas flint is the bank chairman, a role he has held for six years. he's helped guide the bank during its economic realities and this year's wave of populism has brought a raft of new realities. i sat down with him and how he would rate -- asked how he would rate 2016. mr. flint very interesting year. so theturbulent market beginning of the year, things quiet down a bit, and we have these two unexpected political events, the brexit referendum in the presidential election in the united states, which produce results that were not expected. that led to some volatility and uncertainty in the thinking about what the implications would he, but we closed 2016 beingoth those events factored in better than expected. so it has been a very interesting year. lots of supplies is, but one of the great things was how well markets and institutions of the marketscope. was there a sense of not being able to trust the polls and not knowing what his next? mr. flint: we're sort of leaving the honeymoon pe

coming up we will bring our interview with the chairman of hsbc. find out what he thinks about bank elevation -- consolidation in europe. u.s. rate hike a foregone conclusion and are there still trades to be done? all that still to come. we are 18 minutes from the market open. this is bloomberg. ♪ matt: welcome back to the european market open. 15 minutes to go before we see equity markets start to trade. looks like they may move to the downside this morning after a pretty decent day yesterday. let's get the bloomberg business flash. is in talkstelion with another party after johnson & johnson and it talks for a deal. it was worth over $27 billion for the drugmaker. it is now in talks with sanofi. clothingorld's biggest retailer is reporting higher revenue. consortium including kkr and morgan stanley has offered 5.5 billion u.s. dollars. the move sets up a potential bidding war with tatts corp holding. failed for the explantime this year to to regulate or's that he could unwind its business without wreaking havoc on the broader financial system. th

the hsbc chairman. as much as 150 million dollars and higher 4000 people in the region, he weighed in on what worries him about china. china is,he issue in an economy of that size and complexity, can you make the transitional change from a heavy industry infrastructure economy to axport, consumer driven technology savvy , research and development economy smoothly? the transition is underway. big steps are being taken. heavy restructuring is under way. the population is supporting the transition. that is reflected in political risk -- support. it is a massive undertaking to transition the economy. , the researche side, the consumer side, the tech side, is going very strongly. and the chinese are beginning to economieslower wage in the same way that other businesses use to invest in china. they are going into vietnam, myanmar, africa and replicating what they went through in other countries. voting infrastructure to create trade flows, trade corridors. when you are trying to do something ambitious, you wo

. >> and hsbc chairman says china is managing change extraordinarily well. he tells us what he thinks of trump policies. >> indeed, that's going to be tracking markets, front and center, we have the whole federal reserve issue to be dealt with in the next 24 hours. >> there's a 100% expectation that there will be a rate hike, it's about what is going to happen in 2017. they say two rate hikes coming up. >> we can dive into it and see what we've got right now. the next rate hike possibly being as soon as february there as well. 86% chance of that happening after this one which is nearly a 100% probability of the high taking place there. fed pretty much front and center. >> seems like it's going to be normalizing. we are 30 minutes from open in china and hong kong. singapore, taiwan, just coming online. heidi, how are the markets looking? >> we're looking a little bit mixed at the moment. tokyo shares falling into the red, extending losses over the last couple of minutes down by a quarter of one percent. we do have a slightly stronger situation happening at th

and documents disclosed by deutsche bank provide smoking gun proof that lenders, including ubs, hsbc,nd the bank of nova scotia, rigged the silver market. plaintiffs submitted a filing yesterday, eight months after german banks summit a lawsuit over claims that the manipulative gold anselmo prices. every that it is -- representatives of the banks did not immediately respond to the emails. guy: thank you very much. monte paschi has asked for more time from the ecb to complete the 5 billion euro capital raising plan to january 20. this is as it struggles to attract new investors. moody's has changed the italian credit from negative to stable. chart to nice little show you this morning. this is something that has crept up on us. this is the italian bull market. the raging bull, not lamborghini, but the ftse. we have taken ourselves all the way back to the brexit levels. in terms a big moves, of the actual point, but that is a 20% move. steve jakobson, please explain to me how italian assets have bounced post this referendum. as far as i can tell, italy remains within an economic and poli

julia weighing from hsbc. u.s.ks jumping the most in a month, setting fresh records and speculation the ecb will extend its asset buying program, the s&p and dow climbing to all-time highs. oil dropped back below $50 in new york. that sparked a retreat into industrial metals, gold and the yen on the up, and some investors remain cautious. the night they knocked it down i thousand points, i went and bought stock that night. i thought that was crazy. i think now the markets are ahead of themselves. so i'm not going to sit run out and buy stocks today because i think it has run a little ahead of where it may be should be. rishaad: the philippine president says donald trump wants what he calls had relations with the united states fixed when he takes office. by ties have been strained the philippines pivot to china and russia and he has called for american forces to leave. bridges withilt the trump came after falling out with the obama administration. we should fix are bad relations. we just said something good here. ,

morgan chase is faced with the line share of the fine. 114 million pave euros and hsbc 300 million.he commission claims that traders from the different banks would work together to distort the rate. >> on days when traders receive ,oney calculated on the basis there was an interest of high rates. on days when a traitor need to pay, he would want to have a low rate. down thedirect impact line for mortgages, households, and businesses. jpmorgan as well as the other two banks explained they are not at fault. >> we do not engage in any wrongdoing with respect to the euro board benchmark. we will continue to vigorously defend our position against these allegations. >> it's the latest episode in the invested get -- investigation into manipulation. in 2013, for banks including deutsche bank reached a record settlement of 1.5 billion euros over accusations of rigging. banks did see their shares rise this wednesday. the marriage european indices rose and head of thursday's meeting of the european central bank. italian banking sector has been rising on expectations of a bailout. the dax rose

despite the market shot, shares of hsbc are up 20%.lacqua spoke to hsbc chairman douglas flint in an exclusive interview and she asked him about the market resiliency in 2016. douglas: you saw the markets react very well to individual institution events in 2016, and i think one of the extraordinary features of the referendum in june was that people went to bed that night with the markets, the commentators, the pollsters, all predicting one result, woke up in the morning, and it was a different outcome. market volumes were six times normal. huge volatility. banking stocks, predominately based in europe with european customer bases suffered 20%, 30% declines. commodity prices went all over the place, and everything worked. everything settled. all the traits could be executed. there was liquidity to do everything. you stand back and you say there is a unique system that hasn't built that has been able to withstand -- that has been built that was able to withstand something that was really unprintable. it gives you confidence a system is m

representatives of ubs, hsbc, and nova scotia bank did not immediately respond to emails.sia has sold an 11 billion dollars stake in its largest oil --uce it to glencore [inaudible] they will share a 19.5 percent stake. the sale is a triumph for president by mayor potent who announced the deal on state television personally. deutsche bank employees may have manipulated internal indexes as part of an allegedly fraudulent losses.o help conceal to comment declined beyond an october statement that said the lender intended to [indiscernible] [indiscernible] accepting wechat pay. customers will be able to complete purchases with a scan of their phone. it is embracing the cashless mobile payments. manus: thank you. australia's third-quarter gdp did not make a great reading for investors. with the economy shrinking pie .5 of percent. the biggest contraction since 2008. this comes after the rba left the cash rate [inaudible] for more, we are joined by the finance minister joining us from berlin where he is visiting. isnk you for joining us, great to have you on the program. to what

and hsbc was in a strong enough position it announced a share buyback, which also helped.taking so long for the bad banks to turn things around? particularly because of the second interest rate increase from the fed? part of it is the interest rate picture. even though the u.s. has been raising interest rates, you still have negative rates across much of europe. that is a big part of it. the capital rules are still being ironed out years later. the bar keeps getting raised for banks' capital. and they were slower to implement some of the changes u.s. banks made immediately after the crisis, whether it was raising capital or starting to cut the size of their staff. a few of the banks have only table oncome to the that front. deutsche bank and credit suisse announced new plans the last couple of years. they are kind of behind the curve on that front. it is definitely taking longer, and it does not seem to be ending anytime soon. ofnie: is there any danger neither country will crop up with problems? we have been talking about monte dei paschi the last couple of weeks, but spa

sources say they want a margin of 220, to 222 basis points while hsbc proposed 180, plus 14 in fees.ncludes a $2 billion conventiona trench and a $1 billion like facility. dramatic fire has destroyed much of an apartment block on dubai's island. sayreports from the scene the fire they have been put out in a penthouse atop the 14 story tower before reigniting later. it spread rapidly in strong wind, engulfing much of the building, which is part of the oceana palm flight authority. authorities say it was evacuated quickly and no one was injured. tracy: let's stick with the region. a hack against saudi arabia central-bank, transportation ministry, and the agency which runs the airports has highlighted flaws in middle east cyber security. now --ave bush joins us let's start with the most recent attack. what do we know about it? walk us through it. will, this -- well, this happened a couple weeks ago and targeted a few thousand computers at the minister of transport, the central bank, and the authority that runs airports. we don't know much about the attack, but what we do know is that it

we'll stay on top of their story. >> thanks. >>> we didn't hear back from pnc or hsbc. the banks did offer to pay for storage and relocation services willing comparable to drunk driving. >> st that the headline of a new aaa study. the report shows drivers who miss between one to two hours of the recommended seven hours of sleep a night nearly double their risk for a crash. karen roberts knows the consequences all too well. she fell asleep behind the wheels nearly 30 years ago and suffered a severe brain injury. >> i had to learn to walk and talk and feed myself and dress myself and everythi reduce your risk of becoming drowsy behind the wheel. if you're on a long i have trip, the group suggestion suggests you stop every two hours. >>> a big pat on the back for the mclane high school band. recognizing the band program for its award winning season. they won the u.s. band state that county leaders take the time to recognize the students hard work. >> marching band and music in general is an activity that pushes students to be better today than we were yesterday. and genera

hsbc has embarked on a share buyback program but it shares lifting in line with the overall strength in financials. actually holding at its highest level since august 2015. good movement coming through from retail stocks and despite a bit of a shaky start, the shanghai composite also of by .4%. pushing theg in nikkei higher by .7% on the close. interesting to watch the bond market because it's been -- you were talking about those comments coming through from the boj. are seeing yields a little lower on the 10-year note in japan but similarly in australia, quite a bit of weakness coming through on the 10-year note. anna: thank you very much, juliet, in hong kong. a quick look at the markets there. the most influential 2016 event is taking place today in abu dhabi. we have a big name in the oil markets. : a lot of oil traders still catching their breath after that historic meeting on november 20. let's get some perspective on that with the minister of energy for the united arab emirates. thanks for joining us on the program. exciting times, i can see the positive energy. you were optim

hsbc to raise hiring in the pearl delta. hsbc launches a credit card business and china on monday.l news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you for that. the a tying prime minister matteo renzi a it set to resign after losing his referendum on constitutional reform. falling to its lowest level since 2015. bring inright, let's our rome bureau chief. what happened here? it was meant to be on a knife edge, but the no campaign seem to have convinced it time electorate? >> that's right. people were frustrated. there are a lot of issues in italy, part read this global ,ovement for change, populism partly issues in italy, unemployment, frustration, the economy is not growing, and matteo renzi made it about himself and said he would resign, and people overwhelmingly turned out to vote. it was high turnout, and people voted against him. haidi: what happens from here? >> some now he needs to go today to see the president. the president will have to appoint a prime minister, who will have to form a gove

hsbc sparked controversy over its support for lgbt writes.part of a campaign called celebrate pride and unity, they gave a rainbow colored makeover to the two lions that guard its hong kong office. anti-gay rights groups have launched a petition against the artwork saying it was against the traditional family values. strong praise from some who say it is helping raise awareness of the need for equal rights. they do look rather festive. >> standing out in the gray of the banking sector in general. thank you, kate moody. ço#qÑ 12/06/16 12/06/16 [captioning made possible by democracy now!] amy: from pacifica, this is democracy now! >> when donald trump talks about makiking the country g great ag, for many people, it was not that great and quite the opposite. amy: today, a democracy now! special. noam chomsky, harry belafonte, patti smith, danny glover, and juan gonzalez and more gathering at the historic riverside church in new york city to look back at the first 20 years of democracy

i wonder if what we are seeing is money rotating out of hsbc. it earlier with ubs as well earlier. have people are saying we been hiding out in hsbc, we can start rotating some of that money around and putting it back to work in the likes of the names of deutsche. matt: very interesting to see that rotation and we will continue to keep an eye on these things -- banks, because what a fascinating day of news for the financial sector. also in the political sphere, our geo political sphere, 24 hour's and trump land is a long time. he was back on twitter weighing in on some key issues. first in reference to a you and resolution that would have ruled israeli settlements in the west bank illegal under international law. , thedent-elect tweeted resolution being considered at the united nations security council regarding israel should be vetoed. then four hours later, another tweet. the united states must greatly strengthen and expand its suchar capability until time as the world comes to its senses regarding new. -- nukes. based on the excessive cost of

let's get more from the global profit at hsbc.romt news coming the united states in terms of the cabinet positions that are filling up. probably doesn't keep you very optimistic in terms of that global trade growth or help it be resilient and continue. >> the first thing i would say, when people think about trade coming think about physical goods being shipped. what we've seen in the last 15 years and expect to see in the next 15 years is actually trading services getting more important and growing. a lot of it is technology and demographics. the growing consumer class and businesses buying and selling, which is not just about cost. in the short-term, there is reason to be cautious at the outlook, but if you take a medium-term view, we are bullish about the outlook for trade and about the role services will play in driving that. pick up on that. i read the report and went back and read it again. if i'm an engineer in france, i don't have a very rosy picture according to this. i need to be thinking more dynamically in terms of serv

along with hsbc and credit agricole, they're facing persecution.n, deutsche bank was fined more than 4 billion euros. the banks will appeal. host: donald trump has announced a major new investment from a japanese company. guest: it is to invest $50 billion in the united states with the hopes of creating 15,000 jobs. the money will go toward text firms -- tech firms and startups. in the past, they have clash with american regulators over bands over its plans to buy t-mobile. the company ceos making the investment as a result of donald trump election. he met donald trump on tuesday. >> ladies and gemma, this is from softbank of japan. he has just agreed to invest $50 billion in the united states and 50,000 jobs. he is one of the great men of industry, so i just want to thank you. celebrate his to new job. we were talking about it. , in i said, as i celebrate will commit because he has a lot of deregulation. the united states will become great again. host: next now to a record fine over drug prices in the u.k.. pharmaceutical giant pfizer has been ord

hsbc is europe's largest bank with more than 235,000 employees across 71 countries.nt is the bank's chairman, a role he has held for six years. he's helped guide the bank during its economic realities and this year's rise of populism has brought a raft of new political realities. in an exclusive interview, i sat down with douglas flint and asked how he would rate 2016. mr. flint: very interesting year. a lot of things were unexpected. we have achieved a lot of things

. ♪ francine: hsbc is europe's largest bank with more than 235,000 employees across 71 countries.nt is the bank chairman, a role he has held for six years. he's helped guide the bank during its economic realities and this year's wave of populism has brought a raft of new realities. i sat down with him and how he would rate

tom: let's sum up what we have ofrned with daragh maher hsbc. we go to governor carney. i will suggest he does not cadence, orcertain unofficially with the hsbc. if you were to speak with governor carney, what would be the coefficient that gets you to weal sterling? and cabinet.its he would like us to be right. tom: why question like that is important. daragh: a weaker currency is stimulative. not see that coming. you have a weaker sterling, and you don't sell u.k. assets, you are buying them. deficit current account for the united kingdom, goods and services. goods and services is not the story. it is the flows towards a greater deficit. if you have consumer spending, falling off of a cliff because of inflation or people are feeling uneasy, it doesn't help anyone. if you are mark carney, how do you look to the next 12 months? daragh: you have to anticipate the rise in inflation sterling will generate. we are in a weird point in the u.k. nothing has changed. that is why consumers are spending. it is next year when the squeeze happens, that is wh

agricole,nd credit their statement were stronger given the hsbc fine was lower. this may not be the end of the story. there may be some appeals. scarlet: the ecb is leaving it a far as it range unchanged. leaving its refinancing rate unchanged at 0%. the ecb will buy $80 billion of your -- euros until march. does say the outlook becomes less favorable, they will increase the programs. is this a dovish take? >> good question. 60 is less than a deep. i see this as tapering to the extent that it is open-ended if there is some dovish elements to it. they have put in language in there to increase the run rate, increase the duration. literally draw the has turned towards the exit. move,it more as a hawkish confidence on their side that they are reaching a goal. average inflation rate, they are forecasting to 2014. i really see this as backing away a little bit from there 2% target. 1.5% is the new 2%. >> the ecb has refused italian time.'s request for >> the question is why? >> the ecb did not see any moretage in asking for time. the plan has been in the cards for a lo

chairmanear from hsbc on facing the banking industry in the u.k.the government negotiates the terms of the brexit. here's a look at shares over the past year. they are gaining up 19%, in london, trading in the last year. one of the banks doing better, you could say. a gain of about 1/10 of 1%. this is bloomberg. ♪ vonnie: let's get back to your's banking sector and the challenges posed by the brexit vote. earlier this month, francine lacqua sat down with douglas flint. she asked him what the bank wanted. >> the option you think might happen, the sooner you think , which meansity , tocan discard the options make sure for our clients and that they can begin their fares and to business as usual. the sooner we could get to an element of clarity. >> we know they had been working on some kind of a transitional agreement. >> when he think of the regulatory forms we have been, when reforms are finalized, there is usually a two-year time implementation. collecting information that is required and so on, it is that is as significant as changing the relations

hsbc will step up hiring in china next week despite the slowing economy.increased the number of retail inks in the delta area by 57% and the pace of hiring may in theate as it expands manufacturing hubs. it launches a credit card business in china on monday having one bank regulatory approval to issue cards itself. isry: indian prime minister cracking down on black money and it has sparked an investigation into two declarations totaling more than $31 billion. a family of four told the government that it had evaded a would make them wealthier than india's richest man. betty: renzi looks to lose the constitutional referendum that he has staked his job on. italians are joining the global backlash against establishment politics. andrew, great to have you with us. what do you think exactly is going to happen? it looks all but certain that outcome in is the this referendum. what do you think will happen to the prime minister and to the interim government? .ndrew: good morning excellent to see that the italians have not forgotten mussolini and hitler's and have r

morgan, hsbc, is it a positive that we're almost done there? we are almost done? >> i think so.ew administration, you're going to get a new attorney general here in the u.s. and there's some thought out there that he's going to be less interested in going after financial firms as this current administration has been. david: one thing i don't get is the divergence. the u.s. vs. europe. a lot of the factors are not equally applicable on each side of the atlantic. most people i talk to when we talk about deregulation is expected to affect smaller banks than the larger ones. >> that's a very interesting point on the large and the small banks you probably will see more deregulation applied to the smaller banks but going forward, he path-of-the trajectory of additional regulation looks less onerous for the large banks and combine that with the favorable interest rate outlook and you get some upside for the large cap financial as well. europe is a different story. europe is not going to benefit by as much because frankly, they haven't cleaned out their balance sheet as much as the u.s.

hsbc says that is because headline sales are not growing enough.ra demand that you get can be accommodated with existing capacity. our bloomberg intelligence teams are telling us that our concerns about demography and volatile commodity prices. much with the analysis on the impact of the tankan survey. in the meantime, vladimir putin visiting japan. both sides have said they want closer economic relations. talks may be overshadowed by a territorial dispute dating back to world war ii. our next guest one of the leading business figures involved in the two-way tie. joining us is the executive director of the russian-japanese business council. what needs to be accomplisheded on this trip? good morning. we expect lots of good improvement this week. this is the culmination of a business season for russian and japanese companies. to restore economic relations and find common ground to get a very different and sometimes .nusual areas not just traditional like energy and interest of her, but health care. agriculture, food processing. and many others. betty

a reclusive interview with hsbc worries howwhat most in this period of uncertainty.m new york with equities and all-time high, the dow on the seven-day winning streak and the countdown toward the first rate hike of 2016. this is bloomberg. emma: here in the hewlett-packard enterprise greenroom. coming up -- steven englander. jonathan: shares of hsbc have climbed 23% and avoiding the worst of the post-brexit stocks slide. europe's largest bank faces questions on the transition and what it means for business and trade. bloomberg francine lacqua second down with the douglas flint for an interview and asked what .orried how most about brexit -- him a most about brexit. mr. flint: you saw the markets reacted very well to events in 2016. one of the extraordinary features of the referendum in june was people went to bed that night with the markets, the condor tech. commentators, posters, vote makers predicting results and waking up in the morning and it was a different outcome. market volumes were six times normal, huge volatility and banking stocks predominately based in e

we heard from hsbc on this, the data should give confidence the policymakers to hold a tight grip onarkets. possibly further curbs going forward on that front. there are concerns from others that we are not seeing enough leveraging and rebalancing. there is too much being propped up by the old sections of the economy. boc tonalysts expect the p gradually tighten as a result of this stronger data. angie: it has to get control of its external pressures, the strong u.s. dollar driving capital outflows, i continues to be a concern for china. this has implications as well. what are the details? tom: it has been a record shopping spree for china and twice 16. around $234 billion worth of a deal emanating from china. it was almost three every single day. that has prompted policymakers with concern that this is exacerbating capital outflows. we have heard policymakers will now veto most deals over the $10 billion mark. they will also likely bar post properties deals. anything over the $1 billion mark is likely to be axed as well. this is when we see increasing opposition to these deals like

jpmorgan and credit agricole, their statement were stronger given the hsbc fine was lower. this may not be the end of the story. there may be some appeals. scarlet: the ecb is leaving it a far as it range unchanged. it is also leaving its refinancing rate unchanged at 0%. the ecb will buy $80 billion of euros until march. david: and then they cut it to 60 and keep going. alix: ecb does say the outlook becomes less favorable, they will increase the programs. is this a dovish take? or a hawkish views? >> good question. 60 is less than 80. i see this as tapering to the extent that it is open-ended if there is some dovish elements to it. they have put in language in there to increase the run rate, increase the duration. clearly, mario draghi has turned the qe towards the exit by cutting the run rate down. i see it more as a hawkish move, confidence on their side that they are reaching a goal. although what we look at the average inflation rate, they are forecasting to 2014. i really see this as backing away a little bit from there 2% target. 1.5% is the new 2%. david the ecb ha

bearish landers bank says 107 next year and hsbc was -- says 110. amazing day that was for the good or for the bad. julie: i love that chart. as for here in the u.s., very little movement as people gear up for the holidays and we have the drop in trading volume. let's take a look at the year instead. we only have one trading week left. we have seen this rally in u.s. stocks. it has taken the s&p 10.5% higher and the dow 14% higher and the nasdaq about 9% higher with gains coming in the wake of the election as we have had zig's and zags. and what has powered us? not you would have predicted. if you look at the bloomberg and 10, you see energy is in the top spot with a 25% gain and financials up 21%. the two groups that have been losers, real estate and health care. 2017 brings.what let's check in on first word news. courtney donohoe has more. courtney: the prime minister of malta says the hijackers of the plane surrenders and were taken into custody. officials say the man had a handgun and hand grenade and a second gun was found on the plane. the man

obviously, jpmorgan and agricole , their statements are little stronger given hsbc find much lower --ed much lower. julie: i want to ask you about italian banks as well. the latest there as we await what looks like it is going to be the resignation of matteo renzi today. so what is the latest on that? >> there seems to be some optimism in the market about the potential for the state to step in. there has been reporting that the state has a plan in place theirpossible stepping in -- stepping in and the markets seem to be rallying around the italian banks which are basically up. it is more optimistic than it felt two days ago but this story has a lot of twists in it. >> we will be here to tell you all about it. michael is telling us all about what is happening among banks. julie: investor mark mobius give some perspective on the u.s. dollar. mark: live from london, i am mark barton. counting you down to the european close, six minutes away. julie: i am julie hyman. templeton emerging markets -- emerging markets group says the currency has surged to the highest in more than a decade. ask

they continued sort of chatting in this manner with the deutsche bank trader as he moved first to hsbchen standard charter after that. >> other consequences for the individuals involved? do we know, for example, if they still have their jobs? >> we don't have the identities confirmed on a lot of the people yet. it all the tens how their employment agreements are with the banks. they have to get their own counsel. it really all depends on how the case works out. it's a $30ark: billion per year market, the -- tradingting market, christian. why has it long been suspected of being rigged? christian: christian: -- inistian: suspicions started the run-up to the financial crisis, 2000 eight. silver is often called the poor man's gold, because the price entry point is much lower. you get a lot of retail investors using it as a defensive mechanism the same way bigger investors would use it. startedthe price really coming off because of the financial crisis and people expecting it to go up. that is when you first started getting allegations of them manipulation. given the small size of the marke

get my money out of hsbc without paying a penalty? no.american it was easy to set up a bank account. the regulatory issues are much and steep in the u.k. broader europe. i assume that is because people travel a lot cross-border. how would you describe it? >> the government has done a great deal to encourage a lot of .hese companies the regulatory hurdles are much less so in the u.k. and other areas of europe that you would see in the u.s., but the dynamic they have, at what point do they get too lenient? they're crowdfunding is very much encouraged. in a startup but now they are trying to rain that back in because the regulator there is saying that some of the companies are not delivering on what they said they would. u.s. has more strict approach and crowdfunding has not taken off in the same sort of way. they also have not had the kind of problems you have begun to see in the u.k. so it is a balance. emily: with brexit will more walls go up, we'll -- will things get more difficult or will they stay as seamless as they are right now? car

risks and regulation, an exclusive interview, hsbc's chairman tells bloomberg he doesn't see u.s.ct donald trump rolling back regulations. >> our biggest risk is our industry. where perceived as a part of the world where people are able to -- were all exposed to each other,

>> i think some of the british ones, barclays and hsbc they are slightly better financial position not as good as the u.s. ones. but i think the european ones essentially national champions and that includes italy and they are going to be supported through any financing of support that's needed, and i think probably in the strongest position to take advantage of this pick up in yields. >> i'm not smart enough to see-through the end of this rally in terms of what's the switching position to move from and into. do you have any idea? what happens once we've run through this trump run or end of year run or we know what the fed is doing run whatever you want to call it. >> the bigger picture is inflationary pressures around the world. so i think that will reassert. to so extent the devaluations we're seeing, 100% talking earlier about currencies we're seeing this in malaysia, philippines, egypt, a lot of countries getting trashed. there's still pressure for devaluation from china and india. i think as we see more of that break out globally i think we'll see the disinflationary pressure reas

obviously, jpmorgan and credit agricole, their statement were perhaps stronger giving hsbc's fine wasower. so this may not be the end of the story. there may be some appeals. the ecb is leaving its deposit facility rate unchanged. no surprise. it is also leaving its refinancing rate unchanged at 0%. the ecb will buy 80 billion euros of assets until march. >> they will keep going until april. then they will go at 60 billion euros until december. alix: the ecb does say if the outlook becomes less favorable, they will increase the programs. is this a dovish take? or a hawkish ease? >> good question. 60 is certainly less than i see 80. this as tapering to the extent that it is open-ended if there is some dovish elements to it. they have put in language in there to increase the run rate, increase the duration. if the situation deteriorates. clearly, draghi has turned this towards the exit by cutting the run rate down. i see it more as a hawkish move. you know, confidence on their side that they are reaching a goal. although we look at the average inflation rate. they are forecasting to 201

hsbc's around 50% greater. still one of the top ten banks in the world. do you fear we will see ramifications in terms of contagion from the bad loans and high debt levels we're dealing with? >> i think it's receding. i think there was so much concern around deutsche bank in september, they had 500 billion of deposits, 2 00 billion liquidity. still a strong balance sheet, the problem was their capital situation. most of the larger banks can now cope with what's hitting them in terms of some of the litigation. it's taken a long time compared to u.s. banks, but they are step by step getting away from what occurred during the crisis. i guess i'm more sanguine about it. >> looking at deutsche bank shares at the moment, investors relieved but still some serious tasks to be take be by management. what does john cryan have to do straight off the bat in the new year to convince investors there's further upside to the stock? >> first, he has to tell them what he's doing in terms of the rest of the negotiation around commodity trading, et cetera. obviously these ar

>> certainly the -- among the highest we have, hsbc in the uk, globally diversified bank, which is clearly important operations in asia pacific and u.s. then we have sort of ubs in switzerland, which is obviously going ahead of the path for the financial crisis, and the two large french global investment banks, bmps paribas and socgen. >> what do you make of them joining on the late against the ecb? some say when you talk about the cdc, it doesn't affect them as much as other french lenders? are they trying to send a message to the ecb or is it bigger than that? >> we are following, but we can see both sides of the story. it's not for us to express judgment as to how certain exposures would be treated. we observe our credit developments evolving and reflecting in the ratings. >> what will it take in order for your outlook to go from stable to improved to strong? >> the key weakness for the global investment banks is the profitability. we think many of them will not be able to deliver profitability below cost of capital in 2017. so improvement in profitabilities on a sustainable basis. stro

>> global banks, if you think about some banks in the uk, like hsbc, that has a balance sheet in dollars, but also some banks active in the u.s., typically the large commercial banks like bnp, social general, and maybe deutsche bank. >> and those are some of the top gainers today. let's talk in more detail about the situation in italy. highway optimistic are you that bmps can get this resolved by year-end? >> they went high early in order to pitch their industry plan as early as last july. when you look at what unicredit announced on tuesday, it seems like monte dei paschi could get away with less capital, a bit mpls to offload. as we say in italian, [ speaking foreign language ] and they could benefit stepping back and how they could optimize their transacti transaction. >> you'll have to give us the italian translation on that one. do you have a preferred bank? >> unicredit. i have been impressed by the scale of changes and transformation that the new french paratrooper is taking to the country. >> it is expensive. we are talking about a serious sum there. you think he can deliver? >>

fred newman from hsbc joins us. good to have you with us. what's behind this improvement in the latest batch of chinese data? >> well, particularly on the import side, it is partly the increase in commodity prices. remember, we had a big rally in commodity prices over the course of the month. that shows up in the import numbers. in addition to that, make no mistake, there's a genuine increase in demand in china. still largely construction based sucking in goods. on the export side, a pick up of shipments to the u.s. and europe. but shipments to emerging markets weak from china. >> we read into the data as saying that a modest recovery still is on track for developmedeveloped markets. >> the strength is coming or strengths, quote unquote, out of g3 markets, europe, the u.s., to some extent japan. the question is how long can this be sustained? on the one hand you have protectionist impulses that might emerge next year. on the other hand, all of this might be short-term noise coming through an electronics mini cycle. as soon as that wears off,