do you agree with the u.k.'ambassador to the e.u., that these negotiations could take a decade. >> i don't know if i'm specific to anything that ivan said. i do agree if you look at the complexity, the fact that you have to investigate the article 50 exit and the future relationship, it's unlikely you can do the second of those within a 2-year time frame. and hence the focus on the interim arrangements that people, including the chancellor said may be necessary for a smooth transition for the end of the exit to the establishes of a long-term relationship. that is a tricky thing, and one of the things that we learnt more about. >> do you think there's a danger for the government. that this is all-consuming, taking up every minute of everyone's day, and they could take their eye off the ball with other issues. >> the government was elected in 2015 with a manifesto that it wanted to deliver. since then we have a new prime minister. and lots of those things are not brexit related and will never be effected by the fa

all options remain open for the u.k. chancellor at the moment. but the u.k. has been criticized by some here in , including one who said a smooth process for brexit cannot happen at the moment is the u.k. -- if the u.k. does not change its attitude. mark: this meeting being by italy. a little but for greece, it was supposed to be a major breakthrough. are the new measures agreed sufficient when it comes to greece? little too may be a late for greece, according to one imf official, who says the measuresm debt relief are not enough for the imf to get involved. the spanish finance minister also said the statement on greece was not really conclusive. what was concluded last night was to waive the coupon penalty of around 200 million euros. these are short-term menus -- these are short-term moves. the second bailout review was supposed to be finished by now, but there are still a couple of sticking points, especially on labor reform. and greece first needs to finish this second bailout review in order for the imf to get involved and then to reach the next step, wh

i want the u.k. to be the great meritocracy of the world and a fundamental part of this is ensuring that all young people get the best start in life. i'm determined to build a ,ountry that works for everyone and ensure that young people can go as far as their talent shows, regardless of their background. the u.k. youth from it is a wonderfully inclusive example of democracy in action. you are drawn from all different backgrounds and represents the breath and diversity of our society today. this opportunity is one you can use to build the skills you need to succeed in life. i been part of today's events, you are already on the path to making positive change. is point you make today valuable and it's important that we listen to you. i am further you have a fantastic -- i hope you have a fantastic day. [applause] >> thank you for that. thanks to the prime minister for her support, which is extremely important to the u.k. youth parliament. , order. the youth parliament will now consider the first motion o

it is the u.k. pressing for action inside the united nation security council over kidd with the two most recent emergency u.n. security council meetings with those we called the most recent of those yesterday and i'm sure the honorable lady will know there have been fixed resolutions vetoed by russia. the most recent vetoed by china. we are continuing to work with the united nations. but there is a solution that works on the ground that has to be a solution that has bought into by other countries than it has to be as aleutian russia is going to buy into as well as the regime. >> thank you, mr. speaker. i received a message from neck. actually with a text message from our honorable friend at grantham and stamford. the avoidance of doubt this is one text message he's willing to be read in public. mr. speaker, making a swift return, nothing matters more to our honorable friend than ensuring around-the-clock emergency services are restored to his local hospital and grandson. will my right honorable frien

the u.k. from the european union. hosted by the brookings institution, this is 90 minutes. >> good morning, everyone. thank you for joining us today to talk about cities in the age of brexit and trump. we are joined by two people who are well positioned to both interpret what has happened, and really give us guidance. mayor ofuel is the chicago, the nation's third us -- third-largest city. as everyone knows, he was formerly chief of staff for president obama. he occupied a high-ranking position in congress, a national leader in other words who has gone local. tristram hunt is a labor member of parliament. he is a preeminent urban historian. his books on victorian cities are must reads. he is a local list who has gone national. there's a lot to talk about. >> two ships passing in the dark. >> for those in the audience there are index cards on your chair. when you want to asking question -- when you want to ask a question please write it down. for those watching on the webcast, please use the #m

that's the warning today from u.k. lawmakers. a house of lords committee report that unless negotiations are prismatic, jobs could go to wall street. during the last parliamentary hurdle to confirm his position as italian prime minister. he won a vote of confidence in the senate. the upper house voted to back his government following last week's resignation of his predecessor, matteo renzi. deployingars to be weapons systems on all seven of the reefs it has built in the sub china sea. the asian maritime transparency initiative, the installations call into question a pledge made by china's president not to militarize the disputed islands. day innews 24 hours a more than 120 countries. you can find more stories on the bloomberg. i'm angie lau. this is bloomberg. asianlet's see how the markets are performing right now. juliet has details of everything that is happening. equity markets didn't much like what we heard from the fed yesterday. they didn't like it in the united states or over in asia. that's true. we've seen most asian mar

the u.k. prime minister is speaking before the liaison committee saying exit missionary is working well and the u.k. will meet the article 50 timetable. julie: shares are falling for a second day. they are said to be not luring investors. hour, we will be speaking to the blackberry ceo about his temper his latest earnings. they are boosting the profit forecast as the shift to software looks to be paying off. let's have a look at where european equities are trading. we're 30 minutes away from the end of the two-day session. despite theising geopolitical setbacks we have last 24europe in the hours. the stoxx 600 is the highest level since december last year. look at all of the currencies sliding against the dollar today. the euro is down. we have mixed performance in the sovereign bond market. there hasn't been a flight to safety because we are seeing yields rise in another market. lloyds egg story today, the banking group here in the u.k. is buying mbna credit card business for 1.9 billion pound

francine: on june 23 the u.k. ted to leave the european union and shocked some and thrilled others and rattled currency and financial markets. here is a look at how bloomberg television covered this landmark event in global business. >> we are waking up to a whole new reality. it is brexit. >> these guys have been trading since 8:00 p.m. last night and they started to see ticks down in cable and futures and ticks down in u.s. futures. it accelerated at 2:00 a.m. after it started coming out that the leave camp was getting more than the remain. >> financials will be absolutely front and center this morning. >> david cameron is making an announcement he will not depart straight away but the next three months. i'm trying to work out which is the more significant events, the fact that article 50 will not be traded instantly but three months before the next prime minister does it. francine: stocks are plunging and the pound at a 45 year low and break away from the 50 and a little bit of retrace having to do with the safe

what do we know about what countries would welcome the u.k. s a limit to what liam fox can negotiate in the eu. he is obviously keen to get out of the customs union and start lining things up, but certainly, talks are already underway. to some extent, philip hammond was in seoul this week, argentina, not exactly a long time british ally, the falkland islands, but for the most part, this rhetoric -- we are going to have to wait for it well. but an interesting development in the u.s. last night, talking in the media, larry kudlow, a commentator, speaking earlier in the week, talking about the importance of donald trump striking a free-trade deal with the british early on in his presidency. if that goes, that is a really big win. francine: is it likely? are you in contact with the government? mark: i know in number of the ministers working around this area. i think the usa-u.k. potential deal is want to really look at. that could be a game changer, right? i suspect there will not be a single day where a new trade deal is set. i suspect it will be

>> this week on "defense news," interviews with top defense leaders in the u.k. from the prestigious national defense for a. welcome to "defense news." this episode, we bring to you our reporting from december 3 reagan national defense forum, a one-day isn't drawing top leadership from the pentagon and defense industry and for the first time this year, the international community. how did you shape an agenda with top military brass and industry executives at a time when so much in the defense market remains uncertain? i asked a member of the reagan national defense forum executive committee to share this year's priorities. >> this was going to be a month after the pre so it was clear early on that we would focus this forum on the state of the transition, the first 100 days of the next administration. >> does that create more challenges? at least from the start, were people reluctant to participate? >> challenges and opportunities. there was concern we did not quite know who would be there, but we have over 600 people here -- republicans, democrats, people from con

the u.k. eme court begins the seeing of the government's case of holding a vote in parliament on the country's you exit. we will talk brexit options. this is bloomberg. ♪ manus: 6:30 a.m. in london, 1:30 in new york. euro-dollar, the dollar is stronger, so if you are getting ready for your holidays in europe, good luck to you. euro is down by nearly 1%. daybreak is available on your bloomberg, on your mobile. let's take a look at the top stories make today's vision. the top story is about matteo renzi, who resigned this as the italian prime minister, standing down after losing the referendum for a constitutional change. the vote threatened renewed political and financial turmoil for europe, and that certainly seems to be the sentiment. we see how the bond markets and the banks reacted, with the first flush of trade today at 8:00 a.m. in london for the cash equity market. next up is the rising dollar, where the money flows on the back of this. it's a political shakedown, whatever you want to cal

stephanie: the u.k., one of the reasons you would be positive about u.k. t is because of the rest of the world, the commodity cycles seem to be you haveng, the fact this somewhat stronger picture in emerging market economies and a stronger global picture. that's still benefits most of the ftse 100, the big companies that dominate the u.k. index and you could continue to see that, obviously the pound is important for how that translates into returns for anyone buying from non-sterling but overall you could be positive about u.k. large-cap and still be pretty concerned about what is going on in the u.k. economies, the opposite of the last few years where you have the ftse underperforming at the u.k. economy not doing too well. francine: thank you. stephanie flanders and steven saywell, bnp, global head of fx strategy, stay with us. stay with us for the latest on the ratewe will renew decision live at 7:00 in new york. thomas burnett. -- jordan. ♪ ♪ is bloombergs "surveillance." national to the swiss bank, a negative deposit rate on hold and a place to interve

the u.k. has voted to leave the eu. >> is a the time the government stops running away from the looming threats of jobs and businesses in this country and the living standards of noise of people. >> i am optimistic about the prospect here. >> newly talking about two experts about what we know now and what the present future holds. leave it or not, there have been other subjects debated at westminster. who is to blame for humanitarian disasters in syria. >> i think we are deceiving ourselves in this parliament. if we believe that we have no responsibility to what has happened in syria. and on a more personal note, and had he moves colors to tears when she tells them that she was raped. >> it was quite and i remain that fear,prised that horror as i realized that i couldn't escape. they have taken over debates at westminster, the exit from the eu. it was as dramatic as it was unexpected, ushering a new era in politics. in the immediate aftermath, a -- it caused david cameron to resign and after a

the coastal zones in the u.k. also felt strongly that they were being left behind by the kind of economic progress. alongside those more obvious, rural, smaller town areas. for the labour party, again what brexit did was exacerbate this sense of disconnection from those smaller market towns and more provincial areas. and we had been losing them for some time. and this accelerated the process. i do think geography is important, but the spatial elements of it in the u.k. is slightly different. mr. emanuel: two things i would say, before you going to whirl-urban there is suburban. , that is very politically promising because a suburban vote moves up towards a progressive vision. rural and urban are if you look at the 2006, and 2008 when we took back the house senate, the problem is in real estate politically is in the suburban area. the key as an observation is what policies cross-pollinate between our strength, urban with a dialogue and integration of this, used to be urban-suburban. it's now urban rural. a, they're

., the possibility of u.k. is he inspiring confidence in markets? jean: he has a difficult job to perform right now. obviously, if you want something where you don't have -- managing the brexit is truly a difficult task to perform. for markets, what is even more important is what is going to happen with the economy and not just with the central banks. his responsibility is, in my to give a sense that central banks are not going to overreact to a short-term fact. -- factor. ,he danger for central banks with regards to inflation him a -- inflation, would be to make looklicy mistake and not through the temporary impact of some elements such as currency depreciation oil price rising. guy: sidebar question. what are you hearing in paris? you expect to be joined i a lot of bankers over the next few years? what are people chatting about? that it is clear in paris there is a lot of effort in paris -- not just paris, but to pick upnd berlin, some pieces. guy: will it happen? jean: remember a few years ago, there were tal

what will it take for the u.k. to adopt an ethical foreign policy -- [commotion] as the right honorable gentleman knows, intervention in yemen is a u.n. intervention. as i've said previously, where there are allegations of reaches of humanitarian law, we require those to be properly investigated. we do have a relationship with saudi arabia. the security of the gulf is important to us. i would also remind the gentleman that saudi intelligence and counterterrorism links -- the intelligence we get from saudi arabia has saved tensely hundreds of lives in the u.k. constituents has had to move to residential care because no carers could be found to support her in her home. she is part of a crisis in social care that is about an adequate funding and the shortfall in our valued workforce. i'm looking forward to hearing what the immediate further support will be provided, but isn't it time that rather than having confrontational dialogue about social care funding that all parties work together for a sustainable, long-term so

stated that the u.k. s the strongest with 1.6% growth which i think surprised many people, particularly after the brexit vote. the fall in sterling that we have seen i think obviously does present some opportunities for some of our industrial-based expoferts. one of the questions that people -- exports. one of the question people put against that, the economy is quite weak and there is not much to trade into. i think generally speaking the weakness of the sterling is presenting a bit of an opportunity. yousef: how is the b.o.e. going to deal with all of this? what ario expecting from the central bank as the political uncertainty prevails? >> i can't see us raising rates any time soon in the u.k.. certainly in the u.s. we're going to see some more raises later in the year but i don't think that they are going to do much in interprets of raising rates in the short term in the u.k. anna: we talked about this report and they were talking about the challenges the u.k. economy faces. i'm fascinated biette. we ha

a new report suggests the u.k. market could feel the strain next year the midst brexit uncertainty and oil is on itsup with wti set to have first rain in several years. -- its first gain in several years. a few seconds to go until the start of the european equity trading day. asia trading has been fairly flat. a decent sized move around the euro. 1.6% higher for the euro against the dollar at one point or in the asian trading session though they were covered some of the lost ground against the dollar. all-time highs. for the ftse 100. we have more on what you need to watch this morning. could not quite get there yesterday on the stoxx 600. more or less flat. edging to the downside. rain and chills up 0.3%. rally.taining the then, lessumes still than half of the 30 day average. looking at the ftse. closing at another record yesterday. up 0.2%. poised to to be one of the best annual gainers. the best year for the index 2000 13.nce here it is compared to the ftse in dollar terms and euro terms. both of those come at a

the u.k. is in europe, so at the moment it is equivalent. the u.k. s left europe, and over time moves away from thinkan regulation, i unlikely but possible. the u.s. could change its regulation and you've now got three systems when you had one. the fragmentation of the global framework i think would be expensive for our customers and it would be systemically riskier than bringing everything together in the way that it has been done successfully since 2008. anna: you can catch the full interview on saturday at two: 30 p.m. london time. a lot more to come throughout the day from that interview here on bloomberg television. david is still here with us from jpmorgan asset management. there's still a lot of conversation about all trump and what it means to bank regulation. very topical for the european banking sector which still has problems so many years after the financial crisis. david: besides all this national stuff, there are discussions of just had ad they meeting in south america where they were trying to hash out exactly the kind of models they sh

the u.k. is still waiting for a decision from its supreme court on whether or not the brexit process first needs to be approved by parliament. there will be less than 18 months to negotiate. once again, that is short. by march 17, as per minister theresa may said that she would, it is safe to say that the negotiations could start a few weeks later, and an article 50 agreement be reached by october 18. genie: we have been talking about the rise of populism at nationalism across europe in recent months. a movement is out as symbolized in the u.k. with the brexit vote to leave the e.u. since that vote, there has been a rise in hate crimes in the u.k., more than 40% in one month alone following brexit. that, thecombat british government has put in a hate campaignanti- in called "better than isis." on trial, the first member of uganda's beautiful -- group chargedutal with crimes against humanity. >> as a 10-year-old boy, dominic ongwen was abducted as a child. he was forced to fight against ugandan

this marks the beginning of u.k. parliament week, a program of events and activities which connects people with the united kingdom parliament. over 250, there are activities and events taking place across the u.k. by issues today were chosen the annual maker marked ballot. the british youth council reported that once again, the number of votes has increased with 978,216 young people

immigration to the u.k. currently run something over 300,000 per year, split roughly 50/50 between e.u. and non- e.u. immigration. slightly more from outside. the immigration policy is going to change as a result of us leaving the european union. what is the policy objective of the change that we will make? it is still to reduce that immigration to tens of thousands rather than 300,000 plus? >> i can do, my task is to bring the decision home is at work for us to exercise the decision. i draw your attention to the comments by the prime minister and the secretary said that he is still there but they have also warned it's not going to happen overnight in my own view of this is a said earlier is ill be exercised in the national interest which means it will not be suddenly denying university nobel laureates going there are denying businesses the ability to transfer managers from tokyo or berlin, or wherever. and it doesn't involve shutting down -- >> is it a reasonable expectation on behalf of the public that the

we see this a lot in europe not just in the u.k. with the brexit vote but we've seen it in other countries. and i think that may have been an element here in the united states. sharyl: is this the beginning of a big sea change or europe falling apart as a union? david o'sullivan: i don't think we are falling apart at all. we were very disappointed by the vote in the u.k. i won't hide from you the fact that we were saddened at that decision of the british people that they want to leave the european union. we respect it, it's a democratic decision. we think it will have damaging consequences for the u.k. for the rest of us but of course this is the decision and we will now work our way through this to try and find the least damaging way of doing this. so people are often very critical of the european union i grant you. i like to say sometimes that brussels is held in about as much respect in europe as washington sometimes is in the rest of the united states. people like to groan but people also understand it brings many benefits and i

what we have today in the u.k. is essentially a very left wing left party, a right wing right party, and the center that has collapsed. tony: yes. i know that there is a tendency to say that the reason why the defeats are happening should relate to those who achieve the victory. [laughter] but i actually think, what i worked on this i worked with president clinton here, and we europe.oes around but what's very important, i always say this because people say we can't go back to the third way type of politics. i say distinguished policies which are good for one time with a philosophy that, in fact, is good for most kinds. and i think it is good for this time. what we had at that point and in my view, at the center has to be captured is we the center, forward momentum. we were the changemakers, right? we were not the guardians of the status quo. you said austria was an exception but it's an exception , in the sense that the green party candidate beat the kind of neo-nazi candidate or the far right candidate. it's not a

in terms of where you see the u.k. y heading at the moment , obviously there are various threats to follow. there's the legal challenges taking place as the role of parliament in all of this, were getting closer to the end of march when we are likely to see a little bit more detail about what it is theresa may's government wants to achieve from the brexit conversations. >> there's a realization that the key negotiations will be with germany and angela merkel with the german elections coming up next october. there will not be any big breakthroughs early on and it may await some u.s. intervention from the trump administration, a more general grand bargain. that's all very hazy. , the confidence surveys are reflecting a combination of first of all, the general À la kaz improved and that's important to the u.k. anna: what is the trump role that you see? >> i think the deal between the u.k. in europe is going to need u.s. facilitation. the u.s. will come in as they done in the past as an enabler germany agreeing eventually t

the rest. an analysis at 8:50 a.m. u.k. time. s bloomberg. ♪ matt: welcome back to the european market open. i'm matt miller in berlin. guy johnson in london. let us take a look at the market here. we have got the ftse, i guess, gaining. can you call that gaining? really, unchanged. the dax in germany unchanged. the cac is down 0.2%. movement there. the stoxx 600, not moving much at all either. really, very little change in markets. 15 minutes into the open, guy. the storiesne of that has dominated the ftse 100 this year, and it is interesting to see. we are actually getting up to the point where even in euros, positiveend up in territory, firmly up in pounds. the brexit story responsible for that. he brexit transition phase is the neat thing we are talk about. theresa may has signaled she support an adjustment period. told a parliamentary committee she will make a speech earlier in the new year, giving new details of her apart for negotiations. >> i said the government would treat you article 50 before the end of march next year.

so, supreme court judges or justices here in the u.k. estioning some of the legal theories behind the challenge to the u.k. governments brexit plan. part of the final say the greece a holder referendum. it is taking place in parliament. now from westminster is bloomberg's tim ross. what is this debate about in parliament? does it change anything? byfirstly, it is an attempt theresa may's opponents to get her or her government to spell out in more detail -- any detail -- what exactly they want to get out of brexit. that is the number one thing. the second thing is that theresa may has said "ok, i can come up with a plan and i will tell you what the plan is." but in exchange for that, she is challenging her opponents to sign up for her timetable. which, as we know, is for her to trigger article 50. that's by the end of march next year, so that is the key thing that is going to be voted on later on in parliament today. mark: how much of a climbdown is this for theresa may? how much is she going to reveal to those who want more revealed on he

the outlook with the european economy, how the u.k. it. -- it is national and guy: guy: where will the real volatility be? >> in the rates market, a high euro interest-rate, almost invariably, since the u.s. do llar is still the global minting, volatility in the euro rate almost invariably flows over into the sterling rate and asian rate. what happens in the united states is probably the most important question. yes,nswer, in my opinion, but not immediately. growth hasductivity still got some way to improve yet. , think we are going towards the end of next year, i think we will the inflation begin to kick off. guy: do you worry about -- there are positives the market is pricing in, in terms of trump. the negatives could be there as well. do you worry that we will head to a world where trading is more difficult? that again, welcome back into all of this and become part of the narrative as well. >> it's true. trump has represented quite a protectionist agenda in his frederick before the election. -- agenda in his rhetoric before the elect

is promising to do it, the u.k. [inaudible] your administration going to do question mark we hear the story about the rebalancing of your economy. what are you supposed to do in terms of infrastructure spending, should it continue to rebalance. would you give up the balanced budget in the near term? guest: we have got a very significant infrastructure investment program in place. to the tune of $50 billion. we are focused on significant investing and enhancing economic structure. these are always under review and we can -- we're looking at investorn bid our -- investment by partnering with the private sector. remains on getting the budget back into balance as soon a sensible time cable and certainly that has not changed. anna: your budget could look you fiscally constrained if factor in commodity prices whether it is coal or iron or. are you about to factor those into your budget to give your government a little bit more room to maneuver? have a budget update in the week before christmas. all of these decisions are b

the regulatory issues are much and steep in the u.k. broader europe. 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? caroline: it depends on how [inaudible] governments are. a lot of companies have been looking to go into the u.k. weekly. it is very

. >> in november, more than 300 members of the u.k.'s is 11-18 gathered in the british house of commons for their annual debate. students discussed five topics that would be considered for the national campaign. during this part of the debate, how to deal with racism and religious discrimination in the u.k. and around the world. this is just over 30 minutes. [applause] >> thank you. i hope you enjoyed lunch. it is great to have you back. order. order. the youth parliament will now consider the fourth motion of the day. tackling racism and religious discrimination, particularly against people who are muslim or jewish. the full-motion is printed on the order paper. to move the motion, a call from army welfare services germany -- [applause] thank you, mr. speaker. human rights, many people on a daily basis are denied human rights. but why? why as humans we feel it is acceptable to torture a man or woman because of the color of their skin or their religious beliefs? in today's society, it is unbelievable that racism and religious discrimina

dollar but not the british pound. at u.k. 10 year yield is 130, germany's 10 year yield at 21 basis points and unchanged. the spread between the german bunds and the u.s. yield is widening. the italian 10 year yield added on about another 50 basis points . 90 minutes into the u.s. trading day so let's get the latest from abigail doolittle. abigail: after gains and records yesterday from u.s. stocks, we have the major u.s. averages all trading lower. seems like a firm directional cue to the downside. the dow is down the least but doubt 20,000 has the much happened. the s&p and 5000 -- the s&p and nasdaq down. pace for its on worst day since december 12, so a little bit of a bearish streak for u.s. stocks. take a look at sectors, my team and i saw something we have not seen for quite a while. on the bloomberg imap function, equity index, we see all read. we cannot remember the last time we saw this since the trumpet trade and the big rally. we have tech, the second worst of the sectors trading lower. the worst percentage perfo

the only -- very mobile heavy in the u.k. ayed their opportunism to go jumping across the border and starting to set up in the u.k. so quickly before they get a clear steer on the wave regulation will work. i think at the moment for the eu , in berlin fin tech and paris and amsterdam, they're looking with an -- within their own eu at the moment. the ecb is the regulator for the whole of the eu. they're able to get one banking license and move with all the countries within it. it is how we are trying to regulate with the u.k. regulator and not really knowing how easy it's going to be to do business across the border. emily: adam, this is the first time we've seen you in person since you moved to london. a lot of people do not expect brexit. after silicon valley, how does the european tech scene compare? adam: it is much smaller. of thing is, there is a lot buzz and attention happening in california, and a great deal of attention is in asia. i feel like europe, it is sort of watching the planes go by and waiting. a lot of intere

the u.s. and u.k. mesh it does not always follow. the u.s. and u.k. are often in think. in the u.s., earlier than we are seeing happening in the u.k.. the u.k. has peculiarities at the moment with the referendum that just happened. any uncertainty was generated by that. the u.s. has its securely are these as well with the election of trump. we'll see property yields across the u.k., slightly lower in the u.s.. as that gap gets eroded between the treasury' an the u.s. yield, you start to see pressure andaluesies -- treasuries the u.s. yield, you start to see pressure on values. 5% on talking down about average. expectations for next year, they will fall a similar amount when you look at the consensus view at the moment. matt: russell, we talk a lot about uncertainty in the markets, but isn't there some level of certainty since the referendum? i mean, we do know, don't we written is not going to have the unfettered access to the single's market that it had in the past? willll: certainly, there be a change relationship i suppose with that you and it is the project that we d

secretary and also dutch finance minister which means investors season a little on the prospect of the u.k. retaining some preferential access to the eu. seen sterling hit its strongest since the 11th today. year treasury yields move higher again after the worst month for u.s. treasury in seven years in november. you see 10 year yields in germany. generally, moving up to the global bond rout. in commodities, brent hit its highest yesterday on the opec deal. $53.88 per barrel at the moment. if we look at what is happening in the sector breakdown, you are seeing red and he much across the board except energy stocks up 1.9% at the moment, on the higher oil price. as we look ahead to the italian referendum, the austrian referendum vote, what you are -- jumping to its highest since exit. julie: we are seeing a mixed dow tradingeen the at a record in the nasdaq down nearly 1%. traditional industrial old companies, the s&p caught in the middle. groups on the move to explain what is going on here. information technology is down almost 2%. we are seeing some weakness in apple. a report said the com

the u.k. prime minister draw the plans for quitting the e.u.. nicola sturgeon will detail proposals for a new arrangement to enable her country to remain inside the single market after brexit, even after the best even if the london government pulled out. with abuelationship dhabi, switching $2.2 billion of its own shares for a stake in one of the emirates' oil concessions. bob dudley told bloomberg he sees kind of growth next year following more than two years of an oil slump. conditions have turned around this month after opec and 11 other nations agreed to cut oil production for the first time in 15 years. >> i think we are going to remain very disciplined about the capital we spend, the project we select. it is time for bp to start growing. we have worked through so many difficulties in the u.s. that i think the company is well positioned for growth to the end of the decade. haidi: china's overheated property market continues to fall in november. prices including government-subsidized housin

the housing market has underperformed the rest of the u.k. ces in london rose this year. across the country housing .rices were up for like 5% in london in the south of england more people have found themselves priced out of the market. that is your bloomberg business flash. francine: president obama called afterccessor donald trump he accused him of hobbling the transition with roadblocks. traded low as john kerry blame over the middle east peace process. let's bring in jim who led our coverage of european crisis over the last decade. also with us is still john wraith. there is a lot being played out on twitter. how much do we know about face-to-face, or phone call to phone call, the donald trump obama relationship is like, and should we care best of my -- should we care? >> the obama administration will be around for a few more weeks, then we have the trump administration which has a different relationship with israel. betweeneen contentious netanyahu and obama. that will change over the next few weeks. francine: what do we know about what w

if you look at the u.k. t, that is all about fx we are sitting here today and in the state of guessing about what trump is going to do. there is a lot of talk on the campaign and different talk over the course of fixing the cabinet . it will be january when we get a sense of what his real initial ideas are that he is focusing on . you will not really know what happens to the market until we have some sense of an agenda. sitting here today, i think the best estimate is that the last five or six years has been characterized by a complete consensus between governments and central banks within countries and across the globe. everybody basically has been following the same playbook. the mixture of first brexit, trump, italy, certainly some of the other moves in europe suggests we might see a situation where the consensus breaks down. that will be good for some markets and bad for other markets. we might get a breakdown in the high correlations we have had, and we might get it quite interest -- a quite interesting

that would have left the u.k. citizens high and dry. >> she has been wrong for weeks now and she would see stop and when is she going to get a grip and criminal damage and her name. and the right honorable gentleman's area is going to be 2.7 billion pounds and increasing by 2021. it's this government putting more money in the service and the labor party and labor party that says more money is irresponsible. >> it contains many a successful industry strategy. great schools. skilled work force. strong infrastructure being surrounded. >> my honorable friend is absolutely right in relation to the development of jobs and the strong economy of the future. we will be developing the industrial strategy. that's an important part of the governments plan for the future. that is looking to issues like infrastructure and skills and ensuring that we can build on the best and encourage the growth we need for the economy of the future and the part of the country that my honorable friend represents will be an important part of that

francine: the u.k. ime minister has agreed to reveal more details of her plans for brexit, but has challenged lawmakers to back her proposed timetable for withdrawal from the european union. that will be debated in the house of commons later. theresa may is currently in the -- says trade is high on her list of priorities. prime minister many: i will be talking about trade opportunities in the future, this is about britain here and now, increasing trade leave theies when we european union. i am ambitious of what we can achieve in terms of the deal we have with the european union, but also the opportunities there are around the rest of the world for us to do trade. francine: matthew beesley isderson equity investors still with us. we do not know what kind of brexit we are looking at. matthew: it is a problem. what we have been doing is being very shy toward u.k.-exposed companies. francine: insurers? matthew: banks, media companies. it is a very uncertain world. markets are discounting mechanisms, so there

you will probably have completed you looking at the u.k. llion in , announcing day one constraints going out of the company -- country. it's the strategic news for china going ahead. people seem to be more bullish about trump than the others based on what they are telling us. you mentioned -- alix: you mentioned regulation is a risk. big thing the one that everyone is talking about his potential corporate tax creation. if those companies are allowed to bring money back into the country, something that they have had to pay huge taxes on, causing a wave of deals, and they can make that money back you would imagine that they would probably be more having .&a with more share buybacks if you are a u.s. company looking at the rest of the world you are going to say that now that the tax angle is off the table, i'm going to assume this deal only if it makes a lot of strategic sense. will see themf we as active on global m&a. david: i wonder if you might have more international deals and fewer international deals. whether it is china, u.s. of the u.k

it kept the u.k. o the japanese government and business groups are asking companies to let workers finish on the last friday of every month. the goal is to curb excessive work hours and to get people to spend money. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries, i am taylor riggs. this is bloomberg. francine? michael? michael: may i just point out, taylor, this is the last friday of the month. we should all go. taylor: we should all go shop. who cannotr those leave early as the trading books moved to the united states, here's where we are. futures point to a higher open. it is the last trading day of 2016, so get your books in order. not a lot of movement in the bond market, but we have a rebound in oil. fran mentioned the flash cash. fact not having just in a -- the u.s. on the and russia do a tit-for-tat real palliation -- a tit-for-tat retaliation. dow futures -- if you are going to get to doubt 20000 and 2016, you do not have much longer t

governments will move quickly once the u.k. triggers the withdrawal. the u.k. cluded from all meetings where the other 27 nations debate a strategy. people in venezuela are rushing to deposit bank notes or dumping their cash savings altogether. the president is invalidating the largest bills because of what he calls an attack on the country plus the quiddity. -- country's liquidity. his political foes are smuggling currency out of the country. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. tom: thank you so much. let's get right to this. bonds,eck, equities, currencies, commodities. a lift in futures after another day of equity gains. oil elevated. on to the next screen. we will be doing our fed coverage tomorrow. there is the dow, 19,800, on the way to 20,000. euro-swissie is important. dollar index at 101. francine: there is a little bit of movement on what we saw with oil after the iea report. i wanted to show you the european stocks, gaining a touch. look at the pound

[applause] >> my name is [indiscernible] coming to china from the u.k. a few years ago, my life has been changed greatly. living in a democracy, i've been they aware of and support voting rights, but i do not agree with the motion of voting the eight that lowering the age to 16. that young people need to vote to make a political impact. here are the right ways for us to participate in politics. the brilliant work done by us, the grid it -- the british youth parliament, is a great example. although many of us could vote in the general election, we have other ways of making are mark. we have a real impact on government. and we can campaign to make positive changes for everyone in the country. on the other hand, i'm very embarrassed to say, people between the ages of 18 and 24 have consistently been the group with the lowest turnout in past elections and even the european union referendum, which will have massive impacts on young people. it would be irrational of us to lower the voting age given the apathy of young voters, clearly it's a democratic deficit h

the u.k. decision to leave the european union and election of donald trump exposed a deep, geographic divide in our two countries. in the u.k., london, the u.k.'s economic engine chose to remain in the e.u. while a white slot a secondary -- while a wide swath of secondary cities chose to leave. in the united states, hillary clinton carried less than 500 counties, but those counties represent 64% of economic output of this country. there are 3000 counties, if anyone wants to take a test. there are clear conclusions to draw here. globalization has not just fueled income inequality, but has fueled spatial inequality. our two countries and throughout the world, major cities have become the engines of national economies in the centers of trouble -- global trade and investment. but growth has not been shared widely both within these places and across the nation's. and thenomic balance free movement of labor and capital represented and offended our national politics. we'll talk about three things toda

things like that can easily be happening in the u.k.. it fulfilled a caps on forward or be afraid of potential for disruption. the person doing wrong. i think it is so important that what skin, matter you are, the meta-what village knew believe in, that we all stand together in unity. mitchell people that they can treat us that way. [applause] john: thank you very much indeed. now what about london? i would like to talk to the young person in the back row, the second person standing. yes, indeed, thank you. 2016.is yet, soon, 123,944 young people want to tackle racial discrimination. does not -- does that not not say enough? religious hate crime thad cochran up by 34%. it is 2016 and i am standing here asking you to vote for a campaign that should have then achieved years ago. we have done so much in the past year but we have so much want to achieve. yes, maybe we won't achieve everything about racial determination. but we can at least try, no one to feel afraid to walk down the streets because of the color of their skin or a hit job. if

the u.k. join our european partners and starting a more ethical foreign policy on both sides of arabia in yemen? >> a minister. >> thank you, mr. speaker. the right honorable gentleman later this afternoon this is not an issue discussed as european council. he did focus on the issues i mentioned in a statement. he talks about climate security and political parties. maintaining their security is a matter of individual and how they undertake that appeared he refers the turkish government will be starting tomorrow. i assured her that we will look the scottish government bringing forward. they been looking at their priorities. we been encouraging the administration to look at priorities so they can be taken into account and there is already one in place to discuss these. they will be meeting in early january with my right honorable friend the secretary of state for the european union and there will be a further session in january. this is normally once a year at bat, but we are increasing the numbe

. >> businesses and the u.k. vernment might need to adjust to living the eu to smooth the way the solution. that is what prime minister theresa may told lawmakers. in what she calls her transition land. we need to get these results of the people can move onto the relationship they have with the united kingdom and i think there is a willingness there on that basis. anna: the chief economic advisor says the trump rally is not just about implementing domestic policies. he has the united states -- he says they have a better stance of a determining -- enduring if they can urge other countries. he also encourages resisting the threat to the government market. >> it would ignore all sorts of political issues. part of the reason the markets are reacting so well is we are getting disruption in the united states that seems to be positive because we are going to unleash action.ional you're also getting construction elsewhere that is not so positive. anna: a lifeline for junk bonds in china. companies already grappling with m