the u.s. dollar. went 21%lian real higher on the south african rand and some of the asian currencies are doing well. the canadian dollar appreciated 3% as well. the british pound was the laggards of this year, down almost 70%. the mexican peso as well -- down almost 17%. we also had safety trades. many strategists say there is much more there. this is the 12 month outlook. it's the final trading day in the u.s.. abigail doolittle has your market news. looking at small the kleins for u.s. stocks on --se last day of trading small declines for u.s. stocks on the last day of trading. the dow is on pace for his first weekly decline since the election. it's a little bit of a bearish streak at the end of 2016. the last five days has seen relatively little action. the s&p 500 looks dramatic but you can see the move down of of 1%. we have the biggest drop of the 1% 500 at about 8/10 of since october 11 this year but relatively quiet overall with volume down. all theth noting averages are nicely higher o

so these are things that the u.s. has been talking with the russians behind the scenes for quite a while. that has been going on literally for years but it has been getting much worse than the last year so a lot of this was kind of percolating beneath the surface and you note in that statement that the administration says they told the russians, they raised this to them numerous times but privately and apparently they say it didn't have much response and so they're making it very public and getting as close to president putin as they can. these are -- maybe the individuals are not known to people widely but their positions are and the gru and the fsb are very close because after all president putin used to be the head of ifsb in germany. >> general hertling, what are your concerns about u.s. operatives, u.s. personnel on the ground in russia and what this means for them. >> great concerns, frederica. let me coin afraid for you that's well known in the cyber community but not well known by the american public and that's

the u.s. year. abigail doolittle has been here all year and is here with the latest. abigail: looking at the kleins for the major averages on this last day of the 2016 year for stock. nasdaq tradingnd lower. for the dow, s&p, and nasdaq, this is the first three-day decline since the election, if losses continue. the nasdaq on performing -- underperforming the most. the russell 2000 also down about 4/10 of 1%. the dow on pace for a weekly , its first since the election. interesting to see some shifts as a big rally from the election. for 2016, the averages on the year, looking at lots of green. s&p,ains for the dow, nasdaq, and the russell 2000. the russell 2000 up 20% three at if you recall earlier in the year, the nasdaq was nearly in a bear market. the russell 2000 was in a formal bear market. onk about a huge turnaround the year as investors gain confidence after the brexit vote, after the election, and the dow being helped by united health, caterpillar, chevron, and goldman sachs. looking a

at the moment i think the u.s. ething we , even ife exposed to it is quite far already. still seemsfocus sensible, and i like the technicals within the u.s. credit markets. i think we will see less net issuance out of the investment grade market, and if you look at the technicals in terms of the lack of refinancing risk in the i believe i had on this program something yesterday that we checked out. less than 10% of u.s. high-yield is being rolled over in the next two years. the question for me i think still remains emerging markets. how much will this january 20 affect the mix? i personally do not think it will affect the debt markets that much. i think local currency debt is one of my clear out performers of next year. us --g question is on in dmf. -- emf. francine: in white is the one we look at every day, in pounds and it was at a record yesterday. in blue is the ftse 100 in u.s. dollars and it has been underperforming, and this is in euros. this is not equities going up. ons is basically if you bet the pound the

is the u.s. really going to sit back under president trump and except that germany is running the current account surpluses. strong dollara against the euro but not against the yen. yusuf: in a time not so long ago, we had the dollar strength consideration in -- of the fed minutes. is, the fed has to take into consideration next year. to what extent is the dollar strength going to be a distraction for plans by the fed to continue to normalize monetary policy. >> i don't see the fed illicitly taking the currency into consideration, especially given this upturn in inflation. when were talking about the fed, we do have to consider who is going to be the next leader of the fed beyond janet yellen. we may see a key appointment in that as soon as the middle of the year. the currency factor is not going to be dominant or anything near as prominent as it was earlier last year. the key focus will be inflation which is going above target and of course the economy and the overall market, and the biggest unce

it is fine to attack the u.s. stand but it is unclear where the trunk administration's policy on israel and the middle east is. you have a defense secretary that has one view, and ambassador to israel has another, and rex tillerson as secretary of state and we do not know what his view is. vonnie: the iran sanctions obviously come into play here, because whatever approach is taken to those is going to really dictate what the israeli policy is. correct, and the obama administration has time and again said the iran nuclear deal was meant to protect israel from any kind of aggression, and the israelis feel that it was complete capitulation to iran. any change in that is going to be viewed very carefully by people in the middle east and elsewhere. vonnie: what will history view the obama legacy in the middle east as being, at least as it purports to israel and any kind of settlement? marty: you cannot divorce the middle east from everything else that is going on around the world. i think obama himself has conceded that

this, after the u.s. claim of interference in the presidential election and harassment of u.s. diplomats overseas. vladamir putin, of course, a former russian intelligence officer, well acquainted with the so-called illegals program, putting agents into u.s. society. >> the fact that they would continue to do that, to establish these american legends and cover stories for these people trying to pose as americans in the united states shows how serious they are. >> reporter: but the u.s. has also been caught in the act. in 2013, ryan fogle, a political secretary at the u.s. embassy in moscow, was arrested. the russians claim they caught him with wigs, dark glasses, and cash trying to recruit a russian agent. fogle was expelled. it was never clear if he was set up by the russians. earlier this year, a u.s. diplomat was tackled and beaten by a uniformed russian police officer as he tried to enter the american embassy in moscow. >> it was unpro-poked and endangered the safety of our employee. >> reporter: and jim, that latest incident, the u.s. wound up expelling two russian diplomat

in some ways in the u.s. but then there is no real indian interest if you'd ask me and pushing pakistan in china further into each other's arms to challenge the indian rights. >> i think think the way it's viewed and i think it's accurate is that pakistan and china are in a pretty tight race and i don't think india is effectively making that embrace. it's hard for it to be tighter than it is or has been for a long time. the pakistan china relationship has independent history. was the famous all weather friendship. pakistan and china have recently stepped up support for pakistan in the un on other issues. i don't think india is in fact worried about this in terms of china be in or russia being pushed closer. that's a very live debate. not just pakistan but china, russia because of u.s. policy. but nobody but nobody in india thinks getting closer to the u.s., because pakistan in china are already so close that is not seen as something to do. >> so we talked to the audience and take questions but before that let

the u.s. and german bond yields hit the highest level in 16 years after the fed projects three rate hikes next year. >>> european banks rally, but the euro comes under significant pressure after the fomc projection sends the dollar to a 14-year high. >>> edf shares sink to the bottom of the stoxx 600 after lowering its earnings forecast for 2017. >>> nbc news reports that russian president vladimir putin was personally involved in the campaign to disrupt the election and divide american allies by undermining the u.s. as a credible global leader. >>> good morning. welcome to "street signs." big day with global markets reacting to the fed decision. in europe a decision coming from the norwegian central bank. the expectations going into the decision were for the rates to remain unchanged. that's the decision from the norges bank today. rates unchanged at 0.5%. the dollar just a quarter percent weaker. interesting that we continue to see the dollar index moving higher overnight after the fed expect

the u.s. tossing out some 35 russian intelligence operatives and closing down a pair of russian compounds in new york and near here in washington, d.c. president says all americans should be alarmed by russian's actions. but president-elect donald trump is brushing off questions about pay-back for russia's hacking and meddling. he is telling reporters it's time to, quote, get on with our lives. also tonight, cnn has learned the u.s. military is aware of isis leader abu bakr al baghdadi's recent movements. will the military catch up to him before president obama leaves office? we'll discuss the breaking news with a member of the house foreign affairs committee. that's republican congressman ted yoho and our correspondents, analysts and guests have full coverage of the top stories. >>> cnn's athena jones is in hawaii where president obama is doing more than vacationing. tell us more, athena, about what you are hearing about the retaliatory steps against russia. >> reporter: hi, jim. the white hou

the u.s. markets notorious list and says it is not happy about that. this is the second hour of a brake asia coming to you live from bloomberg. anyre glad we are not on notorious list. i am betty liu and we will be digging deeper into that alibaba story. --king about the dow 27 20,000 that we are not reaching quite yet. we will see of the rally will last until next year. >> some have said it has gone far too fast. the open most thoughts are off except for seeing some weakness. you guys were talking about 20,000. the two major indices that people have been talking about waya good part of the past five years. first 18,000, 16 then 18. i has reached 20,000 several times. that is falling short over the past few months or so. that is your level right now, 19,000 -- 19,400. korean index is seeing some green. asia is managing to buck those losses that we saw in europe into the u.s. volumes are light. when it comes to the foreign markets, to currencies i'm , 69 u.s. cents roughly speaking. it is all ab

i am looking at the u.s. dollar's strength going up. i can pull up the chart for you, you can pull it up on your bloomberg, as well. this is the story of the dollar index. 23 of 36 over the last trading day. if you look at a three month basis, 7.5% in gains. 17.70 6 -- that is the year of u.s. independents, of course. how much will the u.s. dollar have to run from here, given a lot of this is still dependent on whether or not trump will actually fulfill his pledges, in terms of fiscal policy? what you looking at, angie? angie: it is a good question and i want to follow up on it. dive into my bloomberg right now. as we see, perhaps the markets predicting the dollars rally against the yen may stall. whether donald trump the u.s.ble to boost economy. that white line, the s&p 500. the blue is the treasury 10 year yield. against thee u.s. japanese yen. we are seeing some drops today. in fact, that is what is weighing on tokyo. let's do a quick check of asian markets. trading has been going on for 20 minutes. let's look at how things are farin

the u.s. army corps of engineers corps of engineers said it would deny the company to permit a name for the $4 billion project and also dollars project and also called for full environmental review and reevaluation of whether the pipeline's route should be altered. >> now to the latest on the trunk transition as the search for secretary of state experience p. kellyanne conway says trump will have additional interviews this week. the new names that have surfaced include exxon ceo brett stiller senator jon huntsman, former u.s. ambassador to china and governor of utah. the development comes as they continue to debate if the child should go to gop presidential nominee mitt romney. conway has criticized karami for sharply attacking term during the campaign was asked if the criticism was appropriate. listing. >> i turn it around and ask if it was her pray for governor romney to stick his neck out so far in attacking donald trump. never walking back in encouraging people to support the nominee once m

if the u.s. loses the able, are we not leaving the space open for china even if they're not ready yet to capture more of that and perhaps the you power were issue should e laps? >> okay. let me take up a couple of threads before i get to the crisis management question. the first is on the restraint and escalation, so this might be an up poplar vurks but i don't think that india broke out of the mold of the restraints. at the end of the day they decided that the cost of it outweighed the benefits. they showed the political gains without much cohearse effects and i don't think that they're testing the threshold that much in the actual actions and then the public statements that came after it are more pushing that, and to me that seems like restraint for the most part held and then it was an operation and so held and so i just don't think we sort of push that bounds yet. on the crisis manage. do we, does the united states if it tries to punish and foreclose on levers of influence in a crisis, potenti

the u.s. election. the u.s. is expected to retaliate with expanded sanctions, diplomatic measures and later covert actions. the upcoming announcement is already putting the kremlin on defense. russia warning it will respond to any hostile new steps. but president-elect trump, who takes office in just 22 days, doesn't seem too worried about the idea of a foreign adversary hacking into the election, instead writing it off as sour grapes. standing next to boxing promoter don king at the mar-a-lago resort, the president-elect says it's time to "get on with our lives." imthe prom tu news conference is hard to hear but we have some titled it for you. >> i think we ought to get on with our lives. i think computers have complicated lives very grately. the whole age of computer has made writ nobody knows kpa wh s going on. we have speed, we have other things but i'm not sure you have the kind of security you need. but i have not spoke within the senators and i certainly will be over a period of time. >>

it is the case that the u.s. pposed these israeli settlements but, at the same time, it has protected israel and the u.n. against these condemning resolutions. why the shift? >> well, look, first of all, it's bipartisan tradition to opposed settlements, as you mentioned. there have been many resolutions in the past under bipartisan administrations that address the arab-israeli conflict. we addressed a conflict that addressed resolutions in the settlements and we've had failed peace processes, and the pace of failed construction, and this is the most pro settlement in history, the currenty government in plates. we believe a two-state nation would be put at risk and would be bad for israel and its security and that's why the president took the position he did. >> woodruff: it looks like a parting shot at israel on the part of president obama. >> well, look, we have a record that we'll put up next to anybody in terms of support to israel. we just conclude add $38 billion ten year m.o.u. with respect to their security

steve, we'll deal with the u.s. role in all this in a moment, but should this be the last straw for the u.n.? doesn't it do more harm to the u.s. and allies than good? >> this is a perfect opportunity to throw down the market. we've withdrawn from organizations like unesco part of the u.n. in the past. we should withdrew from various other organizations in the u.n. that wouldn't have any treaty violations and we've got to send the message out there. we're not going to be a patsy for these things in the future. by the way, just for the record, part of the u.n. is the international monetary fund. another subject for another time but also destructive organization. we shouldn't be using taxpayer dollars to undermine our own interests. >> bruce, let's talk money for a second. we spent $3 billion a year on a united nations the u.s. does. a quarter of the budget. voluntary contributions the last demanded to know how much that was from the u.s. was it 2010. $7.69 billion not insignificant. >> yeah. i don't think there's anyt

back to the u.s. jobs report. bloomberg.r look, my hiring picks up with employers adding 178,000 jobs. the unemployment rate hit a nine year low with four point x percent. -- 4.6 percent. does this give fans the green light to raise rates this month? el-erian weighed in earlier. courage is the fed to hike in december if it needed more encouragement. the only thing that would hold it back would be a disastrous european follow-up to the election. otherwise, domestically, this encourages the fed to hike. importantly, it does not make the fed change its mind about the path of future rates. that is why the market response is so subdued. vonnie: joining us is another bloomberg columnist, betsey stevenson. and also the former chief economist at the labor department. explain the 4.6% unemployment rate to us, even as the participation rate went down .1%. why did we get such a drop in unemployment? betsey: we did see a great drop in unemployment. is you dig into the numbers, you can see that participation went up, so did emp

the u.s. chose to abstain from any vote. david lee miller has more. >> reporter: the meet having the security council still taking police. a live picture of the security couple. this an historic day the first time in nearly four decades the united states did not use its veto power to stop a u.n. resolution addressing the issue of israeli settlements in the west bank east jerusalem. before the vote the united states would not disclose publicly but many israelis did fear there was going to be what they referred to as some type of obama december surprise. the relationship between president obama and prime minister netanyahu has been very strained over the last few years, and many feared consequences that could be what happened here. samantha power, the u.n. ambassador, spoke before the council after the vote, she said that what took place was not to diminish support for israel. she explained the roping behind why the u.s. -- the reason 'king why the us did which was abstain during the vote. >> the

the u.s. ng sweeping sanctions on russia for the election hack. which included expelling about three dozen russian diplomats. so these are new pictures now from dulles international airport outside of washington, d.c. a plane which we believe will be carrying the expelled russian officials back to moscow. the officials have to leave by noon sunday. our team is covering this story from all angles. we begin with cnn's polo sandov sandoval. a spokesman for the utility company in vermont calling this an attempt to infiltrate utility systems. >> we would be dealing with a much different outcome had the power grid that's run by this utility grid been compromised. which we're told according to the company, burlington, electric did not happen. here's what we understand did happen yesterday. that utility company was told by the u.s. government, by the department of homeland security to take a closer look at their network security. they didn't in fact notice grisly step, which is a malicious software. th

i'm looking at the u.s. ures, many of these indices are moving in the same direction, some are not. the oil lanes doing a little bit better. overnight moving 4.9%. is this something you start moving trade round? michael: something we look at for trading. the sector that gets the most influence, u.s. high-yield credit. the best place to play it's because of the amount of energy producers in that index. from a valuation perspective we are worried about the u.s. credit high-yields have been performing. are all there, a triptych, what caught my eye is the movement. 1.1 -- 1.5% over the next couple days. it is actually beginning to rise. we have not seen them like this since 2002. are we being beguiled by the stock rally? delete we should be paying more attention to the press? michael: if you look at the vix overtime, very low levels historically. your chance at the next move being an apartment is greater than the lower move index. that's essentially what we are starting to see play out. particularly wary of is th

the u.s. ection campaign. >>> new hope for people in east aleppo. rebels say they've reached another evacuation agreement. this after the previous one fell apart. >>> plus, venezuela's economic woes grow deeper as people run low on usable cash. >>> live from cnn world headquarters in atlanta, welcome. to our viewers here in the united states and around the world. i'm george howell. >> i'm natalie allen. "cnn newsroom" starts right now. >>> it is 4:00 a.m. on the u.s. east coast. the u.s. president barack obama says that russian cyberattacks stopped during the u.s. presidential campaign. this only after he saw the russian leader at the g-20 summit and told him to "cut it out. ." >> that's a quote. at the final news conference of the year, president obama said there's no doubt the kremlin was behind the breach of the dnc's e-mail server. he said he warned of serious consequences if the hacking continued. >> based on uniform intelligence assessments, the russians were responsible for hacking the d

the u.s. rate hike, maybe the u.s. can absorb it appropriately, it is for the u.s. onomy, but with the dollar as the most powerful reserve currency and everything priced in dollars around the world, including emerging market debt, can the rest of the word handle it? we're starting to see moves in the currencies lower, in the stock markets, not as extreme as this time last year, but that will be a major question in terms of stability of global markets. >> china and hong kong are great examples of this. europe and japan are benefiting because they like the weaker yen and yuan, china has this issue of artificially propping up its currency for so long, the weakness against the dollar is something they have to fight aggressively. it's encouraging to see how europe has responded. they shrugged this off, partly because of the euro, clearly hong kong and china are examples that we have to watch. >> the u.s. market has taken it in stride. yesterday we hit levels that we have not seen since back in 2003. that's going to hurt multinational earnings. we will hear from nike, fede

the u.s. election. a sfrons president-elect donald trump. runs up against his own deadline to restore order after his high profile withdrawal of 86% of the nation's currency. and a computer-generated order with a surge against the dollar before pairing gains. that is trump dollar gone too far? to very warm welcome bloomberg day break. i'm anna edwards. let's talk about some of the extraordinary price action that we're seeing in this environment with regard to the euro this morning or in the middle of the trading day in asia. >> extraordinary is the key word in all of this. you would have missed out on a 1.6% spike on the dollar. take a look at what we're seeing here. even pulled it back on four trade -- full trading days. 1.6%. we spoke to some of the foreign exchange traders out there. they said you have algo rhythmic letters snow building a. that snapped out the liquidity that was there around the turn of the year. bear in mind some of the traders had to move in there and take losses to cover

for hacking the 2016 u.s. election. >> the intelligence that i've seen gives me great confidence in their assessment that the russians carried out this hack. the hack of the dnc. and the hack of the john podesta. not much happens in russia without vladmir putin. >> reporter: the cia and fbi agree as to why. director john brennan telling the cia work force that quote, there is strong consensus among us on the scope nature and intent of russian interference in our presidential election. u.s. intelligence and law enforcement assess that moscow had multiple possible motives. undermine confidence in the vote. weaken hillary clinton. and help donald trump. the president said he delivered a stern warning to putin at the g-20 summit in china in sgl september. >> i felt the most effective way to insure that that didn't happen was to talk to him directly. and tell him to cut it out and there were going to be serious consequences if he didn't. >> reporter: u.s. officials say that russia's hacking of u.s. political organiz

and the u.s. really cannot at least today substitute for that huge vast global network that we're able to tap into. and pretty uniquely tap into frankly, among nations. there's also the nontraditional spheres in the military sense, certainly intelligence as i said is one that crosses over and things like governance capacity, to build out long-term institutal capacity and countries and places like jordan where we want to make sure there's security over the long term requires investment in not just military capability but institutions of government. that's true in a variety of other locations. local knowledge, culture, language, thinking about something like the french and their role in north africa, say for mali, there's a unique advantage that a military ally can provide where the u.s. doesn't have the depth of experience and aptitude. areas where there's border crossing threats, i mean this is self-evident that the world as we look at in the future will have more and more of these, from the securi

the inaction by the u.s. ttlem t settlements in the west bank and jerusalem. we saw prime minister benjamin netanyahu summon ambassadors from china and france and angola and egypt. even summoning the ambassador from the u.s. to israel. what ramifications does this have? clearly he did not wait until trump came into office. obviously where he is standing after his tweet things will change come january 20th in the u.n. what are the ramifications of what benjamin netanyahu is doing on the world stage? >> one of the biggest ramifications this is appears to be the end of the potential collaborations with the prime minister and president obama. regardless of what was said in november, we only have one president at a time. the current president is barack obama. it seems prime minister benjamin netanyahu is finished working with him and putting his sights on the trump administration to support policies that benefit the israeli government. >> do you agree what critics are saying this is president obama's parting shot o

the u.s. vetoed. 2014, another similar resolution to the one passed on friday. the u.s. blocked the vote without using the veto power. recently in the last resolution we know the u.s. unfortunately was involved with the resolution. at the security council the u.s. is a pen holder on every resolution regarding israel and the middle east. you can ask other ambassadors who sit at the security council. no one would have supported such a resolution without the support of the united states. even ambassadors approached me before the vote and told me we wanted to abstain but the minute we saw what the u.s. was doing and got the signal we would support the resolution. >> to be clear and i'm going off what you are saying, do you believe secretary kerry is lying to your government and lying to the american people? >> i don know what to tell you about that. i can only tell you the facts. if the u.s. wasot supporting this resolution it wouldn't have passed. that's a fact. we have seen it in the security council in the past. how many times in the u.n. people are trying to gang up again

the attack, the u.s. vernment became concerned it could be implicated in possible war crimes in yemen is a bit support for the saudi led coalition air campaign. back in may, washington blocked the sale of munitions due to similar concerns. relations between the u.s. and saudi arabia have been strained since the iran nuclear deal. despite the white house announcing restrictions on some kinds of munitions, the u.s. has made record arms sales to saudi arabia during the obama administration. washington also continues to support the kingdom, military training and intelligence sharing. richelle: that stay with saudi arabia and bring in peter salisbury, a senior research fellow with a north african peace program. thank you very much for joining i here on "france 24." as mentioned before that previous report, the saudi king sent a warning to foreign countries he accuses of interfering in yemen. who was the saudi king referring to when he made that statement? peter: i think it's pretty clear that he was talking abo

maybe the u.s. i can't. but they feel that they will be in the middle if there is any back-and-forth in terms of retaliation are measures between the two countries. finally, i would say like everyone in the trade community, they are waiting to see who will be on the trade team and not just at the most senior level, but the deputy levels and other officials. what i want in my remaining minutes as he talked a little about tpp and how it asian countries are responding to president-elect trump's recent announcement that the u.s. will withdraw from tpp kind of on day one of the administration. there is a lot of concern. the tpp countries feel they did a lot of heavy lifting. they spent a lot of political capital responding to u.s. priorities in the negotiations. and so, right now they feel that the u.s. is not living up to what they had hoped for. i will say a number of tpp countries are still going forward with the ratification process. most recently japan passed tpp in their diet. and as someone who spent a lot

in 2014, 23,000 cubans entered the u.s. in 2016, that number more than illegal entries via mexico by people from pakistan, which some consider a state sponsor of terrorism. the border patrol took in 31 pakistanis in 2014, but more than 300 this year. the number of pakistanis, specifically, has gone up according to these numbers to 214 to fiscal year 2016 gone up 935%. is that cause for concern? rep. cuellar: it is because people from different parts of the world, africa, middle east, realizing that all you have to do is get to the southern border of the united states and there's a process there, you can claim a legal defense and you just get to come in. i mean, people, the smuggling organizations know exactly what they're doing. sharyl: a lot of people say these poor people come to the u.s. for hope, they need refuge. why should we turn anybody away? rep. cuellar: you know, we're a very generous country, a very giving country, and i wish we could save the world, but unfortunately, we can't save the world and people are comin

the u.s. are packing their bags and heading home after president obama slaps russia with sanctions as payback for meddling in the u.s. election and closed two luxury russian-owned retreats. caroline has more. >> the malware was found on a company laptop after the department of homeland security shared the code. fortunately the infected laptop wasn't connected to the power grid system. senator patrick leahy says the russians were trying to access utilities to potentially manipulate the grid and shut it down in the middle of wenter and calls it a direct threat. as punishment for the larger hacking scandal, russian diplomats and their families have one day left before they've been ordered to leave. one compound in long island and another in maryland look like beautiful vacation homes with tennis courts and sailing, but the obama administration says they were used for much more than that, including intelligence gathering against the u.s. diplomats in san francisco are also getting kicked out of the

julie:, the u.s. retaliates against russia for cyber attacks and that interfered with the 2016 election, and russia responding in a conference call. a spokesperson for the kremlin saying that russia regrets obama's decision on new sanctions, and that russia has no alternative but proportional response -- in other was, some sort of retaliation of its own. the pressure reaction, says the spokesman, will create "discomfort" for the united states. we will have much more perspective on this evolving situation, and have the latest of elements from washington next. this is bloomberg. ♪ the obama administration has retaliated against russia's cyber active involvement in the u.s. elections. president obama said the data theft and disclosure activities could have only been directed by the highest levels of the russian government. moreover, i'll double mats have expensive unacceptable level of harassment in moscow by russian security services and police over the last year. onma has imposed sanctions top officials

the u.s. department of states. and final senior vice president is hicks, henry kiss sinjer, hee previously, principle deputy under secretary policy, the department of defense and also served as deputy and secretary of defense, the strategy plans to enforce it. we've got a terrific line up and look forward to hearing it. >> okay. we're still using the hand mike. thank you, congratulations on launching this project. we'll do it in extremely timely, given events around the world and transition we have here at home, i -- as you mentioned, john henry is not here, with all the senior vice presidents here we had to hide him in undisclosed location. let me talk about our allies in the asia pacific region, generally, because of the rise of china, north korean nuclear threat, the return of 19th, 20th century gee wroe politics, there's a clarity of thoughts about alliances in asia and about alliances from asia that has generally made the alliances stronger over the past few years. but still there are big

the u.s. dollar. we get a glimpse of some of those moves, the nikkei down by 1.3%. following weakness in the u.s. as well where we saw the s&p under pressure, down by .8 of a percent. 2.3%. the dow falling yesterday as well by more than 100 points further away from that 20,000 mark. u.s. futures looking sluggish -- fairly flat, i should say. the japanese yen is on the move as well. of ahe end up by .8 percent. looking -- some nervousness creeping in as we head toward the end of the year. word news.he first u.s.-israel he have reached another low after john kerry and prime minister benjamin netanyahu traded them over the stalled middle east process. john kerry said his policies were running a solution to the israeli conflict increasingly out of race -- reach. coalition is the most right wing in israeli history with an agenda driven by the most extreme members. >> is really's do not need to be lectured about the importance of peace by foreign leaders. israel's hand has been extended and peace to

the u.s. equity markets come in dollar terms. so it is just beginning to find some buzz coming through. it is not about u.k. economy per se, most of the time. there are a lot of resources countries in their. -- in there. francine: you are bearish on the ftse 250. focus on the ftse 100. what is priced in? i know there is pound weakness. but actually are we -- as kit is saying, are we assuming we will not get the worst for brexit, whereas we don't know? is ack: i do not know it fair assumption. the worst, probably not. we are moving, the pendulum, on the soft side of things. parliamentary vote is looking possible. it may not even happen in q1 the way theresa may was thinking it would definitely happen. byould not be surprised anything that softens or delays triggering. it is probably good news for risk assets. kit: which i think tells us something about the mindset. i would say anything that delays means even more uncertainty for even longer. we are a bit complacent. but we can be complacent for

a complete inverse to the u.s. ome real sense of resolve to go early in italy to solve the banking issues. the president of morgan stanley speaking with bloomberg about europe. let's get to the bloomberg business flash. chelon was offered 27 -- 27i billion dollars. sanofi. in talks with the move sets up a potential bidding war. shares soared in sydney trading after the opening. does fargo has failed to for the second time to persuade regulators that it could unwind its business without wreaking havoc on the broader financial system. the lender is banned from buying non-bank companies are setting up international units. if wells fargo does not come up with an acceptable so-called living will buy april, assets in broker area will be cap. anna: let's talk about the outlook for next year. chairman of hsbc asking him what he expects to see in 2017. respects 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 contingen

it was symbolic that the u.s. ained from voting against the resolution for israeli settlements, what do they have to lose now? this is obama's legacy. this was part of his package so i'm not surprised to hear this rhetoric at the end of his presidency. >> great stuff. thank you very much for joining us. >>> the founder of oneweb will be on "squawk box" at 7:40 a.m. talking about the decision to bring jobs to the u.s. announced by president-elect trump last night. >>> in corporate news, we've been watching shares of nvidia which soared more than 230% this year. site drawn research's andrew left argues the stock is not worth the current valuation. he joined fast money last night. >> i want to know what has changed in the past two weeks? >> left is shorting the stock. >> down a lot after hours. >>> time now for our top trending stories. hollywood remembering debbie reynolds after her sudden passing yesterday. just one day after the death of her daughter, carrie fisher. reynolds, one of the biggest stars in the '50s an

the border between the u.s. and mexico is over 3000 kilometers long and one of the most patrolled in the world. getting across is already pretty tough. and if u.s. president-elect donald trump fulfills his election promise, a towering wall will soon be erected along much of the frontier. in 2014, 486,000 migrants managed to get into the u.s., many of them without valid documents. but if trump has his way, stricter border controls and mass deportations could soon become a reality. >> it'll be complicated, but not impossible. i think i'm going to jump. i've got to get over the border fast before trump gets into office. >> only a few hundred meters separate luis martinez from his dream of a life in the u.s. he's desperate to get over this fortified fence. he's already travelled 4000 kilometers. after setting off from guatemala, he made his way up through mexico and finally reached the u.s. border at tijuana. >> it's very dangerous in guatemala. there are lots of criminal gangs who threaten you even when you've done

coming up, israel's ambassador to the u.s. l be in "the situation room" here with me to respond to the u.n.'s vote on israeli settlements and the very public disagreement between the obama administration and the israeli prime minister netanyahu. >>> and new details how the u.s. intends to retaliate against russia for its meddling in the presidential election. [vo] quickbooks introduces jeanette. and her new business: i do, to go. jeanette was excellent at marrying people. but had trouble getting paid. not a good time, jeanette. even worse. now i'm uncomfortable. but here's the good news, jeanette got quickbooks. send that invoice, jeanette. looks like they viewed it. and, ta-da! paid twice as fast. oh, she's an efficient officiant. way to grow, jeanette. get paid twice as fast. visit quickbooks-dot-com. >>> happening now, breaking news. secretary of state john kerry defends president obama's middle east policy, warning israel and president-elect trump they're heading down a perilous path. tonight, israel is firing back, deliver

the u.s. orchestrated the united nations security council vote that condemned the continued construction of settlements in the west bank in east jerusalem, u.s. firing back claiming that we did not orchestrate the vote. moments ago, tweets from the president elect. he said, quote, we cannot continue to let israel be treated with such total disdain and disrespect, they used to have a great friend in the u.s., but not anymore. the beginning of the end was the hardball iran deal and now this, specifying the un deal, stay strong israel, january 20th is fast approaching. israeli embassador to the united nations is here was, this morning embassador, good to see you. >> good morning, good to be here. >> mr. trump just said, stray strong, israel, what are you concerned that the secretary of state may say an hour from now? >> we are a strong democracy, we will continue to be strong and prevail the shameful resolution passed last friday. we are waiting to see secretary kerry's approach in the speech. we

jessica, the u.s. has a tradition of blocking anti- israel moves at the united nations, but it seems this time israel was not sure it could count on washington. jessica: that's quite right. it was looking as though the united states might actually abstain this time. and that would've been a real break from the past. since the united nations was founded, i think the u.s. has vetoed about 30 resolutions regarding israel and the palestinians. and another dozen or so regarding israel and lebanon or israel and syria. andlast veto was in 2011, that was on a resolution condemning the construction of settlements. the u.s. used its veto then and there was another similar one in 2013. and then the u.s. did not need it, becauset -- veto it did not get enough support within the security council. had this gone ahead, this vote, which had now been canceled, and had theit, u.s. abstained, that would've been a huge break from the past and very bad news for israel, because traditionally, the united states has been the d

if the u.s. and russia, who each have about 5,000 weapons in their active stockpile, say they need more weapons, well, how about china, who has about 200, 250? do they need more? what about india? what about pakistan? that's why this tweet and the follow-up statement today, let there be an arms race, is so worrying, so not the kind of statement you want to make. ronald reagan never said something like this. he said a nuclear war cannot be won and must never be fought. the exact opposite of the message donald trump is putting out today. >> barbara starr, we all know there's always a great deal of reaction to what donald trump puts on twitter and often there's overreaction, to be fair, to what donald trump puts on twitter. when he talks about greatly strengthening and expanding the nuclear capabilities, now, before he talked about an arms race, modernizing the nation's nuclear force is something that's going on right now. it's something president obama is committed to. modernizing means in some case

that is going to be particularr taken over essentially by the u.s. government. >> reporter: in washington the russian embassy in northwest is also affected by the u.s. sanction. the president ordered dozens of diplomats from here and san francisco to leave the country within 72 hours. it wa much of the day except for some cars coming and going. around back, the residences for diplomats and staffers live as some prepare to leave the u.s. >> the obama administration thinks that this hacking of the dnc, this interference in the u.s. elections was done at the highest levels.

the u.s. kicks out russians accused of spying and slap sanctions on the kremlin's intelligence agencies. >> it is all because of the alleged hacking that interfered with the 2016 election. we will take a closer look at how they pulled it off. >>> plus a cease-fire agreement in effect in syria. and this time diplomats and analysts are optimistic it just may last. >> that would be very important. we are obviously monitoring live from cnn headquarters here in atlanta welcome to our viewers here in the united states and around the world. i'm george howell. >> i'm natalie allen. this is cnn newsroom. >>> russia is at the center of two major stories here in the waning days of 2016. >> it is presently 10:00 a.m. in moscow. we are still monitoring for any new reaction. this of course after the united states slapped russia with unprecedented new sanctions, punishment for its alleged interference in the 2016 election. >> in syria, it's 9:00 a.m., and we are keeping a close eye on a nationwide cease-fire.

the u.s. ambassador to the u.n. said the u.s. was not abandoning israel, even though the u.s.traditionally wielded its veto to protect the jewish state. >> our vote today is fully in line with the bipartisan history of how american presidents have approached both the issue and the role of this body. >> reporter: president obama has long held the settlements were an obstacle to peace. with the vote today in the waning days of obama's presidency was seen by some as a parting shot against the israeli prime minister, who at times has clashed with mr. obama. after the resolution passed, president-elect donald trump tweeted "as to the u.n., things will be different after january 20th." israel's u.n. ambassador said in a statement he expected his country's "greatest ally to act in accordance with the values we share and that they would have vetoed this disgraceful resolution." and he said he hopes the trump administration will be more sympathetic. the vote brought to head a standoff between the current and future presidents over middle east peace. it was initially played after a dipl

friendship means the u.s. must accept any policy regardless of our own interests, our own positions, our own words, our own principles. >> reporter: israel says it has proof washington secretly orchestrated the vote, and would show it to president-elect donald trump when he takes off in a few weeks. >> we have uncontestable evidence that the united states organized, advanced, and brought this resolution. >> reporter: kerry denied the claims, and framed the vote as an effort to save israel from a policy that threatened its future as a jewish state. >> we reject the criticism that this vote abandons israel. on the contrary, it is not this resolution that is isolating israel, it is the permanent policy of settlement construction that risks making peace impossible. virtually every country in the world other than israel opposes settlements. >> reporter: in his four years as secretary of state, a deal between israelis and palestinians as escaped kerry. but in a recent interview with cnn, he rejected the idea that he

meeting, of course, we know that the u.s. s the intelligence and surveillance means to help, but there is no sign of that yet. maybe one thing i could point out is there has been a claim of responsibility from isis as we have reported. claim mentions specifically germany's role in the war on the anti-isis campaign. you see that there is connection there that will certainly be part of the investigation. your time thisr morning. i know you were here all day yesterday and you probably will all day today into christmas covering this story for us. stay with us. michael metcalf from state street global markets. the market did not budge yesterday. we did not even have a red open after this what can only be seen as horrible news, geopolitically, even beyond the human tragedy but for europe, for angela merkel, for germany. why do we take these things so lightly in the investment community? it is a tragedy and i we taking it lightly. in terms of the market reaction, i think the very sad thing is we have had several shocks like and we ar

they believe that the u.s. has been supporting organizations inside russia that are anti-putin, that tried to meddle with their elections and they also view the panama papers that exposed some of russia's richest people and where they were hiding their money, they think the u.s. was behind it. so they think they're acting in response to things we were doing. >> fascinating material. the president of the united states very blunt, i thought, how does he see the cyber attack wrapping up his eight-year legacy as president? you covered him from the beginning. >> i think like every outgoing president, they're very aware of how the reputation is shaping up, and i do think we saw that reflected this kind of concern that he would be wrapped in this today, and how he tried in small ways to attend to that. we saw him at multiple times weave in once he was talking about defending the handling of the that, coming out and saying what i did, my part in this, i thought i did well and would not do it again. no regrets there. if