take you, nick nelson. joining us here on bloomberg daybreak.me, we will continue to date into the story of political risk. the italian prime minister's plan to reshape the senate could cost him his job. we are live in rome ahead of sunday's referendum to get you all the details you need to know. this is bloomberg. ♪ ♪ yousef: hits; 18 in london and 2:8 team in new york. futures caught slightly lower. off the back of stocks falling from their all-time highs, tech shares plunged. that overshadowed the rally we energythe bank and shares. also the weaker dollar one of the key aims to watch off the political anxiety that has risen around the european mainland. its crossover to the business flash. grosseran investor bill says he is buying the postelection stock rally or the prospects for growth driving it. he says it is misguided. donald trump also being criticized by mexico's richest man. he says americans have more to worry about than mexicans under trump. the president-elect could cost the u.s. its place as the world leader. >> if he is going to c

. >>> joining us now is head of european equity strategy from ubs nick nelson. thank you for joining us. we've been through fixed income, looking at the dollar, of course we want your view on equities. what is your reaction to the fed decision? i think it was clearly a move that was fully priced by looking at the futures markets. the move on the dots that people seem to focus on dramatically from two to three hikes next year may have unnerved some people. we're still thinking we'll get two hikes next year rather than three. there's a risk that it's quicker. from this level, i think it's okay. we're starting from very, very low interest rates, even bond yields, despite the back up to 250 on the ten-year and u.s. treasury, these are low level of yields. for the time being i don't think they worry equities. that could change if it tightens more. >> you're sticking to your forecast of two hikes next year. >> yes. >> how does that play out for european equities? until the pare back on equity last night. many have been stunned. europe seems to be missing out on the pa

anna: let's get back to nick nelson, still with us here in the studio. 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 nothing again but we think you will get honest growth. returns and the stock space rub up against the reflation story we have been talking about in the bond markets? you are noting the link between, the concerns about two little inflation previously in equity markets. you: if you look at europe and japan, these are countries that could do with more inflation. lationok at the trumpf story that may help with the domestic economy. japan nikkei would be bigger

and has taught at new york university in the city university of nick, and craig nelson, his become is called "pearl harbor from infamy to --" he also rote rocket men, the first men of the moon, and all authorize of the first heroes, the extraordinary story of the doolittle raid. eri, who were the major players in japan leading up to pearl harbor. >> there's a half and it's quite -- it's a handful. i it's ironic you asked the question because i thought all the japanese counterpart countries like germany, italy, or mrs., the uk, they have famous figures, key statesmen. i think the problem with japan was that they really didn't have effective leaders. they had a handful of fairly ineffective leaders who, by the sheer force of their weak personalities, remained in power. and i think the utmost example is hirohito. >> host: emperor. >> he basically -- outside of the real decisionmaking process, because he is not really supposed to interfere with politics. he did feel he had a veto power, but he was reluctant to use it, according to his post war confession. >> host: could he have stopped pe

nelson, the host and enthusiast is going for. >> can i take a picture of you two? >> reporter: folks call him mr. holiday. he certainly has st. nick's spirit. >> you like candy canes? there you go. >> i live for christmas lights, and i'm so pleased they do this every year. >> reporter: and every year the theme changes. brainstorming begins around september, and this year the theme is designed around nelson's dog. >> welcome to our bone in santa's dog park. >> really cool. >> reporter: often people leave thank you notes and gifts like the one left by an 8-year-old boy. >> do you know how much little kids who walk by love your decorations? what more could someone ask for? >> reporter: during the offseason it takes a garage and basement to house it all. >> it's all orgad any doubt, it's a professional operation that gets pricey. >> our electric bill goes up about 400%. >> reporter: you can see the glow from the moon. really. okay, not really, but still, it's a sight to be seen, but that's not what mr. holiday is looking at. >> merry christmas. >> reporter: he's looking at the faces. >> i have lived a good life because i know that i put