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

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

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

mr. draghi as well. up next, policy and politics.ll this election mean for the federal reserve, and central banks around the world? this is bloomberg. ♪ guy: what does the u.s. election mean for the federal reserve and federal banks around the world? what we saw yesterday was the euro-dollar. this morning, it has priced back in, and you can see that on this chart. maybe what this is signaling is that maybe yesterday's move was a little bit too much. maybe the markets overly priced this clinton story, and today they are feeling a little bit more cautious. people might be taking the opposite position, mabye getting their hedges back into position. steven saywell is still with us. is that the correct interpretation here, steve? are we looking at the situation where the market is not prepared, given recent history, offl ty to take its foot the pedal when it comes to the hedge story? >> that is the correct interpretation, i think. that was a dramatic move yesterday. as i said already, maybe that was the market reaction yesterday. followin

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

mr. draghi: it still relies on the continuation of the current unprecedented financing conditions.this reason that we preservingitted to the very substantial degree of monetary accommodation. capturing this divergent story, it is not just the fx market, it is also the bond market. i can show you this on the bloomberg right now. it is the spread between treasuries in bonds. this spread is the widest it has been in decades. will yields continue to stretch out and will spreads continue to blowout? does the dollar strength stop that from happening? david: all of that money is going to be sucked out of europe jonathan:. it is a big issue for policymakers over at the federal reserve. the bond market is moving on potential prospects for fiscal stimulus. if you are a policy maker, can you make it forecast on where it should be? apparently we do not have that sound, but we do have a guest. rates and that of affect strategy who joins us now from london. we are just talking about the bond market and the big spreads. the widest in several decades. wider. think it can go the treasury said offic

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

mr. president draghi later on. >> this is nominally about the ecb's annual report.n the european parliament and draghirg is that will give an opening statement and policymakers will give their opinions and he will do a final wrapup toward the end which amounts in some ways to a closing statement as well. the issue, one of the issues will be what does the ecb do in the current geopolitical and economic environments. alix: mario draghi has been burned by this in the past. the market expects to much and want of getting burned. how careful is he going to be looking ahead to the next ecb meeting? paul: very careful you would imagine the message from the ecb has been pretty consistent. the message that the euro area prospect and him at the best economic recovery is continued support. that does suggest there will be extension of the current qe program past march, the currently scheduled end date. it will be decided until december 8. the market does expect something like that. therefore the ecb has to take that into account jon:. great to get your insight head of this event

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

schauble speaking at 3:00, draghi comments, which you were just talking about, and just now, mr. wideman is starting to speak about his idea of monetary policy. let me recap the latest of what mario draghi was saying. for him, he was quite dovish, quite optimistic that -- not optimistic, he was concentrating on the fact that despite the recovery we're seeing in the eurozone, this recovery is so contingent on the monetary policy the ecb has in place we cannot talk about a self-sustained economic recovery. having said that, he addressed as well this year is the first time that european gdp has reached pre-crisis financial crisis levels. it took the economy so many years, 7 1/2 years to recover from that shock. on another note, the big thing is people are talking about brachial plexus, the whole development would mean for frankfurt, and whether a lot of other bankers are coming, financial institutions are coming with their headquarters. yesterday i also spoke to the economy minister of that region of hesson, where we are located now, about what he thinks brexit will mean for frankfur

mr. kuroda himself has talked about 0.9% wage increase, which may look small, but it is a bigger increase than janet yellen or mario draghit. we have a bullish sign for mr. .uroda at the boj if you can extend that to the rest of the economy, yes, the framework is pretty strong going into next year for some kind of sustained rally. betty: thank you so much are joining us. ryan fowler from tokyo. and the man at the head of hong kong's oldest register company, the ceo of hong kong hotels discusses room for growth in the current economic scenario. ♪ ♪ shery: this is daybreak asia. betty: a quick check of the ,atest is this flash headlines reports from japan to the bill for cleaning up the fukushima nuclear plant could be more than $175 billion. the nikkei news site estimates from the industry department, which combines cost of accommodation and decommissioning the nuclear reactors. they were devastated by the powerful earthquake in march 2011. the new earthquake did not cause any new damage. shery: taking on ge and siemens for a bigger share of the health care solutions market. the company manufacturers scanners and take tick

mr. bullard. the amazing decline of the euro against the dollar is really something to behold. every day, it continues to drop further. you know this has to be draghi'snd. he did say the economic position of europe over the past year has undoubtedly increased or improved i should say. on the other hand, there are still a lot of things he is worried about. nonperforming loans is one. the ceobe talking with of deutsche bank and other bank executives. theill also be speaking to st. louis fed president, jim bullard. we will also speak to him at noon. interesting to put the question of the dollar to him and some of mario draghi's comment and what he thinks about the strength or weakness of european banks. guy: i really cannot wait for that conversation. the fed firmly in focus with what yellen had to say yesterday. matt will speak to james bullard later today. next, it is surveillance here on bloomberg television. jonathan ferro and i will be on bloomberg radio kicking around the story. james bullard, coming up. this is bloomberg. ♪ seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the