mr. carney: there will be changes to reforms where appropriate. y: governor carney entering the final question in the bank of england press conference that is being conducted on the road in the city of london, addressing the issues of stability surrounding the u.k. financial sector, the u.k. banks in particular and the stress tests that have been carried out. rbs have taken immediate action concernsith the surrounding its business, but nevertheless, stock has come under pressure this morning. the governor appointing hissing or at the global risks rather than domestic, which is interesting, surrounding the financial sector and maybe also highlighting the fact that london, the city of london, is an important aspect of the way capital is raised in europe. effectively, london is the investment banker for the whole of europe including the eurozone of course. that is check in on the market to see how things are looking right now. as you can see at the moment, european headline indexes have risen so we have the 600 up, the ftse writing as well and the dax

mr. carney? oh, just about a man in dublin, as to whether he was alive or dead. mr. grady was backing his word with $100 gold. right? i'd be delighted to get it, but make sure you're ready with the money to pay me up when i get back. which way you betting, mr. grady, that the man's alive or dead? he's dead. oh? what makes you so sure? when a man's dead, he's dead. sounds reasonable. mr. grady, if you're in some kind of trouble... oh, no. what gave you that idea? oh, just that mr. carney seems pretty sure that the man's still alive. he's dead. well, i gotta get back to wooster. he's fixed me my favorite dish for supper. good night. a man's stomach was not created to be abused by such food as this. it's not too bad. well, not for you... but then, you've gone and found yourself a fair colleen, and sweet as the morning's dew on the roses of kilkenny she is, too. let me give you a small morsel of advice if you aim to marry the girl. i've said nothing of that. but sure there's a glint in your eye says it for you. aye, i can see the same thing in hers, too. but that's the d

mr. carney today for the tone. back to you guys. >> jeff, just a quick question on this high court ruling in terms of whether a parliamentary vote will be needed to invoke article 50 or not, is there much focus on that in london? is that expected to go the government's way? >> reporter: it's huge, to borrow a phrase from one of your presidential candidates. clearly, wilfred, the markets are watching it very, very closely. because as you pointed out, there are in parliament lots of mps who would rather we hadn't gone down the brexit route. and they will all want their say if they get the opportunity to vote on this. now, i don't think anybody's saying that even if parliament gets the final say, it means that they won't follow the will of the people, as expressed in the referendum, but it does mean it could make it much harder for the government to pursue the hard brexit option. back to you. >> jeff, great stuff. thanks very much for that. the pound up 0.2% this morning, bank of england coming at 8:00 and brexit cour

mr. carney will have to outline to the committee including the critics on the committee today.se different variables are going to cause him headaches. we will see inflation ticking higher. and it will be interesting to see how the bank can look through those criteria. anna: looking for a modest giveaway around infrastructure? >> that is the underlying message. we have seen that globally and we have seen fiscal policy work in tandem with monetary policy. i think the u.k. will follow that route. anna: thank you very much. here mate will stay with us here on daybreak. siemens is serving up its industrial basis. how does the group feel about the incoming president donald trump? all of that is coming up here on daybreak. this is bloomberg. ♪ yousef: welcome back. you are looking at a live shot from tokyo. the imperial palace. dollar-yen currently trading lower. 0.3%. the 10 year bond yield has risen to zero for the first time in the globalmonths as asset classes continue that rotation off the back of donald trump winning the election. it is still not over. what is also ongoing is a

mr. carney had to turn around and go another direction? geoffrey: we doubt that at this point.t is a really asymmetric case. there is the uncertainty of the outlook. but like any self-respecting central banker will tell you, we are case specific. so i think that is the appropriate case be boe will go. they probably don't want to make a judgment about that. talk about data. pmi numbers came out today and they were pretty good. getting a boost from the weaker sterling. when does this turn? and all the good data becomes bad data? geoffrey: it is interesting to note the manufacturing side of things. this sector was actually in contraction with services. again, sweden and switzerland will become the powerhouse in the near future. probably not. so the boe will still be in the uncertainty mode up ahead. uncertaintygreater in the third of the sector, especially in financial services, there may be additional issues. andhey will be vigilant careful about talking about the downside too much right now given the politics we have seen. david: but we are talking about a long way off. what hap

mr. mark carney. they don't know what is going on a less certain than what they were before.tor interest that sort of uncertainty? we have to look forward and chart the route over the next two years. the questions left unanswered is what the bank continue with qe in 2017? will inflation made their levels, or will they overshoot? thoseswer to both of ts, and answer to gil holds the answer to what you do with currency. it is a basic assumption that growth at some point is going to roll over. the bank of england the knowledge the consumer is looking their way through this. gp -- what of gdp does not roll over? what if things hold up fine? >> the narrative is like this -- for the economy to rollover, will incomes have to declined. inflation is going to rise. oversupply in the labor market means wages will not rise in nominal terms. of the national research published a 4% inflation forecast for the end of next year. that is predicated on wages rising. think it is very unlikely wages will rise that much. that is because of oversupply. secondly, the pass-through from currency weakne

these are live pictures of mark carney testifying in parliament. mr.e the key question is, will it tolerate? there is no precise number on why inflation is moving. we will cover that and much more. this is bloomberg. ♪ is off. rout i look at the mexican peso coming in stronger. peso-dollar-yen, 1.0824. is: coming up shortly, it bloomberg daybreak: americas. i am looking forward to your conversation with sean claude tree shea. trichet.ean-claude as well as gary stern. kelly,we will have david was jpmorgan. the rush to enthusiasm is underestimated the enthusiasm coming from the trump residency. a lot more coming up, but that is a little taste. tom: robert skidelsky is with us. eswar prasad from cornell joins us this morning. us withld have you help the institution known as the imf, you have recently worked at the imf. can they come to the rescue, and currently, can they come to the rescue of non-emerging markets like italy? are they prepared italy -- are they prepared mentally to do that? eswar: the more fundamental question is the imf coming into the co

mr. rafferty who is a state senator there pretty big in that race. >> we're following a race in the first state delaware is electing a new governor tonight this between democrat john carney colin benini. >> they're projecting john carney's win. john markel was of course term limited. fox 29's brian satin is live in wilmington. >> reporter: no doubt a happy crowd here. the party is under way much double tree here in wilmington as we pan around you you can see the crowd. we're hearing local democratic leaders speaking. democrat john carney the projected winner. so by the way is hillary clinton here in the state beating colin bonini carney is a congressman a three term congressman decided to run for governor after beau biden died. you may recall that biden was planning to run but instead carney did and it appears he is the projected winner here. he actually ran for governor back in 2008 against jack markell, didn't win but the second time is the charm. we are also awaiting results from the congressional race. there is a congressional seat up for grabs lisa blunt rochester could become in her first bid for elected out of the first african-american and the first woman in cong