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

we asked the u.k. chancellor here in brussels whether the u.k.ent would consider paying into the e.u. budget in order to keep access to the single market. here is the reply. >> we want to keep all options open. we are going into a negotiation. we are prepared to discuss any structure with our european partners. in the end, we will only do a deal if it is an written -- in britain's interests. we would look at the costs. and we would decide whether that was a good deal or not. all options remain open for the u.k. chancellor at the moment. but the u.k. attitude 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 span

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 frie

-u.k. spread. it is at a 25 year high. the u.k.s own path even if that is a neutral one sitting in between the u.s. and the ecb? implicit have seen tightening in the u.k. because the exchange rate has recovered a little bit in the last few weeks. the 10 year bond yields have also gone up. to that extent, that is already something happening to slow the economy a little bit. but the quantity -- quantitative easing program is still quite a huge, the corporate buying program will run until sometime and we had an interest rate cut. we have a lot of stimulating policies running. i think that given the uncertainty that we have around brexit, it is difficult to see the bank of england doing very much for some time. it is unlikely to want to tighten the qe program right here and now. in that sense, i think the exchange rate will do whatever it has to do for now. anna: be a shocking server perhaps. let's talk about asset management. expect in global equity markets and a time when thefed is hiking, even in last tightening cycle we saw the s&p

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

the u.k.reme 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 ca

., 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 ta

the u.k.t 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 #

it is the u.k. that has been pressing for action in the united nations security council, working with the french. the two most recent un security council meetings were those we call for, the most recent yesterday. as i am sure you know, there have been six un security council resolutions which have been vetoed by russia, the most recent also vetoed by china. we are continuing to work with the united nations to get a solution that works on the ground. it has to be a solution that is bought into by other countries and it has to be a solution that russia is going to buy into. >> other than getting rid of his tumor and making a swift return to this place, nothing matters more to my honorable friend then -- ensuring around-the-clock services are restored to his hospital in grantham. in short, the passionate views of his constituents are heard. people in this rural area they will always have access to safe emergency care for them and their families. sure theof all, i am thoughts on the whole house are wit

>> my view is the prospects for the u.k. outside the u.k. are incredibly bright.he risks of staying in our are incredibly serious. >> we have had four budgets the last year and everyone of them the forecasts have been wrong. why on earth would there be a recession? francine: investors pull out money. this is what the government -- i'm not making this up. this is what the government has pointed to. this is what mark carney is pointing to. >> a nice impartial man. francine: do you think dave cameron regrets calling the referendum ? >> i think some close to him regret it. i think he this it is something you have to deal with and i have some sympathy with that. >> they are set to leave the e.u. following a vote on the membership june 23 next week. which number shouldn't we believe and which numbers shouldn't we? >> it seems pretty clear the numbers have moved toward leaving. we are now looking in the internet polls around 48.5 to remain and 51.5 for leave. so not a large movement but clearly there. francine: the u.k. is still digesting the news of the labor m.p. jo co

on the u.k. they may have to come up but they will not do it in order to punish the u.k.hing i would say is it is an interest of the european union as well as an interest of the u.k. to keep good, as as smooth, as tight as possible. losing london as a financial center is not only a problem for london, it is a problem for europe as well. in any case, in london, have a terrible good financial system that is working for the europe. this is more difficult going forward. promoting to new york, frank for, or paris, one would think you would at least have the transition. at least. francine: what is the one thing we will find out in the next six months? will we be any wiser but what kind of brexit we are looking at? francesco: well, we have to. we have to. it would be incredible that one year after the referendum, we are still totally in the dark. it ising that seems i -- slowly moving. i think the idea now that you , an interimperiod period after the u.k. would have left is gaining ground, and as you said, if you follow that poll, only 33% of the brits want a hard brexit, a real

can the u.k. of audit? our associate editor asked michael fallon, secretary of defense for the u.k. >> this is a 10-year equipment program, as you said, to modernize our forces and get them the planes and ships and equipment that they need. we plan it over 10 years. it is probably financed over those 10 years. obviously, we take some precautions. >> are you looking at this planning is kind of a worst-case scenario as if the exchange rate drops a certain amount, you will have to start cutting by a certain amount? >> it's too early to start speculating exactly where sterling will end up. the referendum was only a few months ago, and already, there's some signs the sterling has increased in value against the euro, for example. we certainly take precautions against fluctuations in currency. >> amo industrial-based issues here is the question of if the u.k. should be getting more back from u.s. contractors. forward, is there a target percentage of how much you would like to see from the u.s. coming back to the u

u.k., ecb?the central bank's recently, still too early, we have an economic situation, if it improves in europe, we depend on european situations, all decisions that help the european economy to grow, to be stronger, that is something that is beneficial for switzerland. matt: thank you, we appreciate your time. tom keene, back to you. tom: as he speaks we see the a 1.0ollar breakdown to 475. we will continue with stephanie flanders and steven saywell. i want to speak to them about what the pros watch in switzerland, euros-swiss, a most interesting description of the tensions in europe. peso,n, wow, philippines 50. this is bloomberg. ♪ ♪ this is what it is about, smart church and smart guest. stephanie flanders jpmorgan and steven saywell with francine in london. we heard mr. miller speak with mr. jordan. an historic moment, massive swiss franc strength. against an irresponsible europe, the red trend is the management of euro-swiss and steven saywell , this blue curve, i would suggest is -- sugge

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 poun

however for u.k. sterling investors, because of the weakness of the dollar, the moves have been so strong people should perhaps stand back a little bit and maybe wait for a correction if they are thinking of buying in at these levels and be patient. that doesn't mean that clients should own them from here? anna: is trump going to set the tone? yesterday we played a great interview with jamie dimon. we could see some big changes under trump, couldn't we? >> we could see some big changes and he has talked about them. i think some of the dodd frank rules that were put in place were too strong. bear in mind that trump has got to get the banks to work and be able to lend and operate efficiently and with trust. i think we're now getting to that stage where people trust banks again after trust had fallen away with them dramatically. also the point about what trump is trying to achieve is get infrastructure spending. he needs the banks to partake in this. yousef: charles, give us some more context here. you'r

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

it is more complicated in a u.k.-context because scotland europe northern ireland voted to stay in europe, wales and by quiet market, england, voted to leave. it seems to me the outcome is to think about culturally, how we bring these metropolitan rural areas together more, to think about how we challenge inequality, and how the nature of inequality has been distributed. losehistorian, i never sight of the fact that going back to rome, the contempt for urban, cosmopolitan elite, and rural, virtue versus urban immorality has always been there. this could be another turn of the cycle. mr. katz: are the two of us immoral? mr. emanuel: right back to rome. mr. katz: give us your take on our election, and whether what tristram says applies to our complicated system. mr. emanuel: there is similar data. the biggest place to bring people together, a place where the divide occurs, is education. and educational opportunities. if you want to create, not just purposes, but unification purposes, so people do not balkanized into co

the u.k.. one quarter of the entire .opulation we have barely any influence over the decisions that affect our futures. young people are faced with so many problems. discrimination, and a list just goes on. we are not actually beginning bs being given the chance to. i am not if it apathetic. we care deeply about social causes and when given the opportunity, and people can do great things. only 19 years old, look at what this man achieved. we all have the potential for greatness. but currently, it has been counterbalanced by disillusionment. that is not ok. we need to engage young people. out toians need to reach us and give us a chance to be part of the decision-making. as well as this, little education -- political education should be important. that will help improve our democracy. it is the power of the people, i did people. it is inclusive, not divisive. old, male,ses young, female, able, disabled. all the glorious diversity in between. it is only by ensuring that we all have our first day

is better than the u.k. is. we've got to get our universities which have had such an outlook and done it incredibly successfully. that level of disengagement and uninterest in their interlands is remarkable. and you can have world universities of the most terrible schooling systems around them. and the traditional academic response where we run universities. this is all different. but i think you can do more. >> i'm going to champion in chicago, our universities are incredibly invested in the success of the city. and i can't say enough. i meet with each of the presidents. they all have a relationship with a specific high school. i. t. i'll spent technologies. northwestern and duh paul have a recollection with lake view high school. they're invested at columbia. you go through every one of them, have a high school, they're not just like a volunteer program. it's part of their education. vie -- viola would have. i don't know what's going on in engelland. i would take two corporations out. give me another universit

the bank of england although it seems to talk down the u.k. economy, the u.k. outlook is not ,hat leak in the continue to be to have accommodative monetary policy. is that what is helping us in europe? talk about at what pace the fed will remove accommodation in the u.s. but elsewhere am a we had this from the boj earlier in the week. we know what the ecb -- it is fairly clear. they may be asking questions about the bank of england's her. in general i think it is pretty policynt that monetary will stay extremely accommodative outside the u.s. and we are back to a very familiar market theme which is policy divergence and we know does tot's with that the dollar and potentially some of the financial market reactions as well. talking about what the fed's balance sheet would look like at the end of 2017. his 2017 the year that the conversations surrounding the fed starting to reduce its balance sheet goes mainstream? guest: yes. there was a very interesting comment over the weekend from one of the fed speakers about that. it triggered the conversation. and it is a r

the u.k. is in europe, so at the moment it is equivalent. the u.k.as 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 s

a management of u.k. politics, but did not simply rubber u.k., but tried to set a new type in the political center. before i start the questions, i want to start with a protocol question -- our american friends in the audience often have a mistaken impression that brits are very status conscious and very formal and public because "dowton all watched abby." [laughter] there is nothing that shock to british audience more. do you want to be america today and the mr. prime minister, or do you want the british and be tony? or we can take a vote on it? office,en i first left people would always addresses prime minister. and the british media had a field day with this saying this guy has left the job. [laughter] this.have to scrap then i cannot hear the word prime minister. [laughter] we are officially divided by common language. explain thisyou series of asked -- the series of extraordinarily, political upset? if we ignore austria for a moment, they sure has been a truly shocking, and frankly mr. blair: could c

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

the latest critique has concerns that the u.k.ot put in place resources to deal with such a large task. may has said she will trigger article 50 by the end of march. this may be more fallout from the brexit vote. itons are holding onto their cash. personal deposits grew at an annual rate of 4.8% in november. approvals for home loans fell 9% from a year earlier. search teams have now recovered the second flight recorder from that military jet that crashed into the black sea. investigators will use two devices to find out why it plunged into the water moments after takeoff from sochi. all 92 people on board were killed. that seemsade a move to challenge president-elect donald trump. they have deployed their only aircraft carrier to control the disputed south china sea. it is accompanied by five other warships. trump antagonized chinese government's comments on trade and taiwan. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am erik johnson and this is bloomberg. vonnie: thanks

u.k., u.k. the manufacturing output unexpectedly contracting. falling in the last month.is in october. pharmaceutical slumping, the .9% drop comparing forecasts of a .2% increase. the biggest decline since february. fallingal production 1.3 percent, driven by a slide into oil and gas. the danger does highlight the lopsided nature of the economy. since reichs it the economy -- brexit, along with construction and services, the economy grew by .5% in the third order. despite today's contraction, the economy looks in pretty good shape post-brexit. julie: let's look at u.s. stocks where we are not seeing much movement. the dow is trading on a closing basis with any game we see today. the s&p earlier touched a record and the nasdaq continues to lag today. splitgain, through the within the groups within the various indices, looking across assets, oil is the notable mover in the wake of that report that showed a big drawdown. saw a build in inventories in oklahoma. all of that is contributing to the decline in oil prices. the dollar is down 2/10 of 1% so we are not seeing the inv

and u.k. mesh it does not always follow. the u.s. and u.k. are often in think.g 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

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

that would have left u.k. citizens high and dry. i know the prime minister had a happy breach to read out she has been wrong on the national health service for weeks now. if she came to the hospital, she would see services closed. she was the patients worried. she would see stuff to moralize. when is she going to get a grip on people who are committing criminal damage to the service in her name? mr. speaker: prime minister. prime minister may: nearly 30 nursesctors and 950 more , compared to 2010. this year, the clinical commissioning group will be getting an increase of funding. the health funding is going to be this year, 2.7 billion pounds. 2020,ill be increasing by 2021. it is this government that is putting more money into the national health service. said the labour party who that more money to the nhs would be responsible. >> it contains many of the elements of a success feel industrial test successful industrial field. manufacturing and creative industries are being surrounded by world-class facilities. would the prime minis

/u.k. relations. but given that the u.k. government dedicated resources, understanding the u.k./u.s. position on both the trump and clinton campaigns, can she also confirm that we'll be dedicating resources to understanding not just dwomping parties, but also -- governing parties, but also potentially governing parties in the e.u. in order to help our renegotiation process? >> prime minister. >> i'd say to my honorable friend that, of course, we are in discussions with a number of people to insure that we understand the approach that is being taken in other member states by various parties. it's not just about political parties though, it's also about understanding business and other interests in the member states that we're negotiating with so that we can -- that will make it better, us better able to come to a deal that not only is good for the united kingdom, but actually, as i've said, is the deal that we want. i think if it's good for the u.k., it will be good for the e.u. as well. >> mr. david -- [inaudible] >> does my right honorable friend agree that the government's pri

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 housi

moore, me now is michael who covered u.k. banks for bloomberg news.s through the numbers and the latest. michael: credit suisse last year late out a major restructuring, the bank cutting thousands of jobs. this is the latest part of that. they have the investor day next week in which some analysts are expecting more cost-cutting, going even further than they have gone so far. this is part of the theme of european banks in particular getting smaller. the trading environment picked up in the third quarter but over the last few years it has been significantly down. cost-cutting across the board has been dramatic. rbs has shrunk their investment bank, but given the news yesterday that they failed the bank of england stress tests, they have got to do more as well. is will abig question cost-cutting the enough to turn the banks around? particularly rbs, the question is profitability. will this be enough? >> not on its own. get to a hoping to scenario where there are fewer players in every line of his. he will focus on the things they are good at and get a l

and u.k.ntiestablishment movement creates an atmosphere where it is very difficult for finance ministers and politicians to implement the necessary reforms. the ecb needs the politicians. matt: we did not get a chance to talk about banking profitability, but i am sure we will have ample time for that. thank you for your time. thank you, joerg kraemer. back to you. anna: matt miller, in frankfurt. joerg kraemer will be on bloomberg radio at 9:45 with guy johnson for more on that ecb meeting. manus: we will have ful l coverage of the european central bank meeting. and then you can follow the meeting on your bloomberg at top . anna: how is the domestic picture looking? manus: and a bang or a whimper? can the ecb president mario draghi give the year can economy one more shot in the arm? they get into that conversation. stake inncore takes a rosnet, marking a dealmaking come back for the ceo. we take a look in the next hour of "daybreak." this is bloomberg. ♪ manus: welcome back to "daybreak."

it kept the u.k.ro 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

u.k. prime minister has agreed to reveal more details of her plans for brexit, but at the same time, theresa may challenged lawmakers to back her proposed timetable for withdrawing from the european union. she objected to the wording of an opposition party andn objection -- opposition party motion that will be debated today. resident elect donald trump has offered the post of u.s. governor of china to an iowa governor, a long time friend of the chinese president. that is according to three people close to the matter. the decision comes at a time of heightened tensions with china after trump on friday abandoned almost four decades of diplomatic protocol by speaking directly with the leader of taiwan, which beijing considers a rogue province. google news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. what we areis is looking at in the markets. nara -- nejra was talking about the fallen australian dollar. thanks for telling eq

the u.k. economy and focus now because optimism among chief financial officers among u.k.s is the strongest in months. nine in 10 say they face high levels of uncertainty. a study was compiled from a survey of 119 cfos. joining me on the phone is ian stewart, chief u.k. economist to take us through the details here. good to have you on the program once again. cfos entering 2017 in better spirits. safety say there is coming up a load base. big fall ina very confidence in this survey in the wake of the referendum and it has been -- it was weakening, which was taking place in germany and brexit was a real big shock. an interesting moment in terms of confidence. we now see a strong bounce back confidence that is much closer to normal non-recessionary levels. i think part of the reason for this is that the early fears of an immediate and very negative reaction to brexit had just not been fulfilled. the economy has remained ys'output and compani growth has run. companies' output growth has run. anna: how will that be expressed in terms of businesses putting their hands in their

u.k. stocks hit a record high.itive about their outlooks than they have been in 18 months. i'm francine lacqua in london. michael mckee is in new york. we are looking at foreign policy. we are looking at politics in europe. it is going to be a very interesting year. it is going to be an interesting month ahead because in the united states, we seem to have two presidents, one who is elected and one who seems to be trying to insert himself into all the decisions. a lot going on in the u.s. michael: wouldn't it be great --francine: wouldn't it be great if president obama started tweeting all the time on january 21? in italy, the prime minister talked about migrants and a wide range of other topics. he held an end of the year news conference. you are looking at live photos. he has been in office a little more than two weeks. he said italy dealt with the migrant crisis with little help from the eu. president-elect donald trump says the u.s. should move on, sanction russia for interfering in the u.s. presidential electio

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

if it does, the u.k. is out. the u.k. and the eu want a deal. matt: got it.thank you very much in brussels. a fantastic profile on michel barnier. check it out on bloomberg.com. still with us is scott thiel, deputy fixed income cio at black rock. do you think the fixed income market is anticipating that all these things will go smoothly and happen within the set schedule? >> it is a pretty aggressive timeframe to get the negotiations underway shortly. and that two year time frame is very tight. i would agree with that assessment. i am concerned about how quickly u.k. can trigger those negotiations and if it is in the best interest of the nation to do that within the timeframe theresa may has set forward. obviously, it is important that the bank of england moves to a neutral status in terms of its monetary policy. also, the british pound has repriced dramatically. it touched at 1.20, and has moved higher. i think partly on next that there are expectations of a better outcome. that we are invested in the british pound, but we use optional strategies to take of

not brexit or u.k. specific, but you are starting to see expectations stay up in the u.k..ay to move. are certainly seeing emergence in the u.s. dollar in the pound sterling. what about the relationship between the u.k. on the one hand and europe on the other? adam: fair trade deficit is not the end of the world, but if they are going to be leaving in trade terms, that's likely to get worse for a few years. so, the pound on fundamentals really needs to adjust more against the euro in the sense that it is inclined to help make up for that bilateral trade deficit. it is also, more importantly, the overall trade deficit is just a reality of the bigger part of their trade with the u.s.. to me, sterling, you have to believe in them worrying not just about the dollar. sterling, even more so, we have to look at the euro sterling rate more than the u.s. sterling table. finally, adam, let me be unfair to you. let me help you to advise theresa may for a moment. as we have been talking about, we don't know much about her negotiation strategy. if you were to speak to her right now and

time, u.k. mortgage approvals and three hours later, the general rates decision from the bank of canada. slumpshe aussie dollar as gdp reveals the biggest downside surprise in two years. manus: the sunny could -- the senate could approve the budget clearing the way for renzi. this is bloomberg. 2:20 in the afternoon. all ships are rising ahead of the european central bank meeting. a glorious stayed there. let's have a look at the business flash. >> airbus has been selected by the canadian government to replace its search and rescue planes. according to people familiar with the situation, the deal is estimated at $2.6 billion u.s.. they said the deal is set to be announced tomorrow. questionsn referred to the government while the canadian defense ministry declined to confirm or deny the story. they did not immediately respond to requests for comment. to get investors to back the lender. considering options including a limited form of state help as well as an extension of an ecb deadline to comple

in terms of where you see the u.k.ry 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

governments will move quickly once the u.k. triggers the withdrawal. the u.k.xcluded 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 poun

that coming as well as u.k.se prices from halifax saying it could only eat out modest -- eek out modest gains. they are still undervalued. we are watching bp, down by .4% today after by will with -- will lworths gaso stations. anna: breaking news from spain. retail sales numbers coming through from the spanish economy. seasonably adjusted sales rise by 3.3% in november retail sales by 4% from a year earlier. just pulled up the spanish retail sales data series on the chart, shows the gradual recovery from 2015. of course, the broader spanish story around the spanish economy, a little bit more positive. that takes us nicely into our next conversation. if you are anticipating a tranquil you're the head -- year ahead, you should think again. 2017 starting with a bang in the trump'sdonald inauguration. joining us now to talk about the outlook for 2017, david powell. still with us on set. chris wyllie. great to have you on the program. let us start with donald trump and the impact of the presidency. there is a lot we

the only -- very mobile heavy in the u.k.layed 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 inter

a very important sector for the u.k.. we want to keep all of our options open. and the u.k.ll its options open with the eu and he wants brexit negotiations with flexibility. one could say that is having one's cake and eating it. that is the chancellor, this is bloomberg. ♪ ♪ matt: welcome back to the european market open. cduin essen, germany, the conference alongside manus cranny in london. if you are more the glass half empty kite, we have to list for you. 2017, the bloomberg's pessimistic eye covers everything from social breakdown in the u.s. to the defeat of angela merkel in them moment. just as much potential for chaos as last year. these are predictions that show you what your social media newsfeed could look like if everything goes wrong. you can check it out on our bloomberg website. manus, you have been scrolling through as well. manus: i have indeed. i will go straight to the top. simon is our guest host. umplandia, he rescinds orders, you get public outbursts. -exit, california goes against trump. what are your clients worried about the most in 2017? simon: 100 o

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 tod

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 numb

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

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