cluse, topless with ubs as you look at the market. you looks with ubs as at the market.as an ability to help trump over or overheateinflate the u.s. and global economy, is that a risk? reinhard: we have been pointing out that over u.s. monetary policy there are quite some question mark because it would change. we do expect in december in a couple of days the fed will come with the next interest rate hike . we expect another 50 over the course of next year, but the composition of the federal reserve vote is going to change. we think overall there is a case for the normalization in u.s. monetary policy to continue in a way that will not create massive challenges for the u.s. economy. francine: do you think fiscal spending in the u.s. will force europe's hand in delivering fiscal spending? reinhard: we get that question very often now where we see a game changing fiscal push in europe. on the one hand, we should expect that fiscal policy is likely to stay moderately accommodative because the heavy lifting lies behind, because the ecb helps governments with lower interest ra

and documents disclosed by deutsche bank provide smoking gun proof that lenders, including ubs, hsbc,nd the bank of nova scotia, rigged the silver market. plaintiffs submitted a filing yesterday, eight months after german banks summit a lawsuit over claims that the manipulative gold anselmo prices. every that it is -- representatives of the banks did not immediately respond to the emails. guy: thank you very much. monte paschi has asked for more time from the ecb to complete the 5 billion euro capital raising plan to january 20. this is as it struggles to attract new investors. moody's has changed the italian credit from negative to stable. chart to nice little show you this morning. this is something that has crept up on us. this is the italian bull market. the raging bull, not lamborghini, but the ftse. we have taken ourselves all the way back to the brexit levels. in terms a big moves, of the actual point, but that is a 20% move. steve jakobson, please explain to me how italian assets have bounced post this referendum. as far as i can tell, italy remains within an economic and poli

euro-dollar according to ubs, they say the dollar rally is going to peter out next year.hey want to be long the euro, they favor being overvalued the euro against the dollar. 112 in the next three months or you anna [inaudible] journalists are mentioning it. will mario draghi use that word? here is where we are. 1.0772. they are likely done with rate cuts. manus: in the past month, a great number, go to your -- search for trump on your bloomberg and $2 trillion comes up. that is what has been added to global equities. and $2ia-pacific up trillion lost in the bond markets. that is the biggest loss ever on record for a month in the bond markets and you have got that, they are gathering again. 49.90. thesewe are stronger on asian equity markets. and touching new records. state seeing a euphoric and that seems to describe what is going on in markets since trump's victory. angie: perhaps this is what is supporting it. angie lau here with your headlines. china's exports rose last month, sapping -- snapping a losing streak. shipments increased euro .1% from a year earlier compar

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geoffrey yu from ubs. thank you both for coming on.i buy less bonds but i will buy them for longer. dovishy: there must be a component in that it into it, and the conclusion is it supports a risk, and normally you would not associate given the effective tapering with something that supports risk. francine: markets were a bit wobbly yesterday. theme trying to figure out. sure we focus on political risk? davide: i think we need the combination of the three. i think the ecb, in short, is genius because on the one side, is still giving another nine months of basically central-bank easing, which is important given the political risks, but at the -- how caneducing giving you less than $100 in 10 years time the deflationary. thane will have less money you have today, and as a result, they save more than they invest. i think what he has achieved is balance, which is, in my view, perfect. tom: i want to look at the ambiguities that we saw yesterday, and this has been caught by a lot of people. mark gilbert wrote this up. geoffrey yu, we talked

jonathan fenby and geoffrey yu from ubs.will be joined by michael and we will talk to jp morgan's asset manager. ♪ francine: china's capital grants, liquidity fears loom in the second-largest economy as .hina is the big 2017 risk on hold after a turbulent year, europeans market draw breath ahead of 2017, commodity producers -- gold shakes off the trumps love. oil optimism, crude trace their a 17 month high ahead of a plant opec cut in january, is the cartel back? this is bloomberg surveillance. dayse these quieter because there is a lot going on in china and something big happening next week, a great way to take a breath and paused and reflect on the risk and opportunities for 2017. time this year we were optimistic and then china burst into the news in early january and changed everybody's mind. it will be an interesting time. francine: we will get more on the market shortly but first straight to the first word news. turkey and russia have agreed on a cease-fire plan for syria. the crews would begin tomorrow between rebels

>> this is what ubs wealth put out today, which is what we have been seeing from the yen bulls.here forecast was for 98, and they had to mitigate that to 105. just because the rally and dollar-yen has surprised a lot of people, how forceful it has been, but there is a split in the market. the bulls, the yen bulls still see things like donald trump's protectionist stance coming to the four, perhaps his promise of won't reform, stimulus, live up to what the market is pricing in now. perhaps two rate hikes next year from the fed, not three. we have seen time and time again where the fed has not lived up how fastomise of it was raising rates, so all those things are in the yen bull camp. the yen bears, if we don't see that protectionism come on strongly, than the idea that u.s. treasury yields could keep rising while the boj keeps jgb yields anchored. that will continue to drive dollar-yen higher. people like for example short-term i think 120 among bears is seen as a risk. numbers closethe or the recent 13 year high that we saw for dollar-yen previously. yousef: thanks, kevin. let'

one of them was ubs, which was dismissed out of the case in october.he plaintiffs are now heading back. mark: who is the hammer? >> i wish i knew. we might find out eventually. that's the trader who used some of the most colorful language in these chats with the main deutsche bank trader whose chats were produced. >> there is also a glimpse therebetween that deutsche bank trader and one that started at another bank? christian: that's right, it's about a five-year relationship. at least that's what's disclosed .he records they continued sort of chatting in this manner with the deutsche bank trader as he moved first to hsbc and then standard charter after that. >> other consequences for the individuals involved? do we know, for example, if they still have their jobs? >> we don't have the identities confirmed on a lot of the people yet. it all the tens how their employment agreements are with the banks. they have to get their own counsel. it really all depends on how the case works out. it's a $30ark: billion per year market, the -- tradingting market, ch

were the first of the big tech companies to take er self driving cars yet ub beat them to the road.hy has it taken so long? response is they have sort of a self driving car. what google is aspiring to is fully driverless. there is no steering wheel or brake pedals. you press a button, it has 100% economy. they are moving toward that but it is still several years away. about thewere talking inventor of the self driving car. take a listen to what he had to say about the competition in this arena for google particularly when it comes to ube >> others have beenr. vocal and it came in a way that could drive us empty from one customer to the next. he owns many customers but if sameone could offer the services for less he would be in trouble. emily: you have the traditional automakers investing heavily in this area. what is google differentiating? google has a very profitable search business and -- uhe carmakers and over google, they can afford to play the long game. -- the hasformer ceo been turnover in the business. the previous lasted a couple of fears. wrote a big piece in business wee

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

always good to get your thoughts, especially on a monday morning ahead of the trading week of ubs.a minute left, what are you watching today? >> i think to see if the market can continue up this week, generally, of course the dollar and the bond yields have softened a little bit from where they were post fed meeting. does that give markets a little more of a positive spur? >> i'm going to watch your area of the banks because it's really been goldman sachs help lead the charge of the dow in the outperformance. can we hit 20,000? futures are positive, which means we are on guard for it. >> we are definitely on guard. cnbc will have it covered all day. "squawk box" is next. >>> good morning. the dow 20,000 is within reach heading into the final trading week before the holidays. u.s. equity futures again pointing to a higher open on wall street. >>> the trump transition. today 538 electors gather in state capitals to make donald trump's presidential victory official. the latest from the transition team straight ahead. >>> and "star wars" spinoff "rogue one" logging the second best dece

i looked up hatch a meanwhile on youtube ub. >> she is very direct of watching youtube videos that have anything to do with opening up surprises with toys t. element of surprise is what they really enjoy. >> reporter: lucky for some parents, not all kids want a hatch a mole. does that look like a fun toy for you? >> yeah, but it's for girls. >> it's for girls only you think? >> yeah zpli like legos. >> a computer. >> a lego creator set. >> here it is, here is the hatchimal. this is it in the egg. i think we can hear it. i think we woke it up? they're noisy little critters. when the eyes move around, it tells you different things. it can be sick, cold, angry, it can have the hiccups. >> is it going to hold the kids' interest? in there the little girl we spoke to says she has one, she does still play with it. she said can you teach it games. you have to hold onto it and love on it. you have to sort of -- >> kind of leak a furby? >> yes, it has life stages, a baby, a toddler and a kid. you hear it doing different things t. eyes light up. it goes through different emotions. it makes motions

with alexei, you can play music and order from domino's or ube.st expensive devices to stream video from netflix, amazon, hulu and hbo and other services. take to the skies with this 40 dollar propelled drone that comes with replacement blades and relative easy to fly but can be tough to control in windy weather. >>> here is another look at this morning' top stories. it's clear unclear that caused the fire in an oakland warehouse that killed 36 people last week. the cause of the fire remains a mystery but the official are looking at whether a refrigerator or another appliance was involved. officials do not believe the fire was deliberately set. >>> president-elect donald trump continued his thank you tour in north carolina last night and vowing to fight terrorism. mr. trump formally announced his choice for secretary of defense, james mattis and he is ordering they cancel an order with boeing. he calls the price tag ridiculous. >>> coming up after your local news on "cbs this morning," foulout with trump's battle with boeing. plus, we will go to p

next nelson at ubs. still the come.weekend, you can catch the exclusive interview, france lacqua's a -- francine 2:30 p.m. and on sunday 2:30 p.m. and on sunday at 5 p.m. as well. that is it for "daybreak europe markets." it is fed day. we will see what janet yellen had to say. this is bloomberg. ♪ generosity is its own form of power. you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. guy: good morning. welcome to bloomberg markets the european open. i am guy johnson alongside matt miller who is in berlin this morning. what are we watching? take a hike. the market is ready for the fed to rai

surprise even ,,,, "play" on a 5 game road tri soul shake...jay z, former r terrell owens... ...sta ubs rock n >>> nba, warriors went to l.a., and press play on a five game road trip. stars came out to watch the doves rock 'n' roll. steph curry inside, 15 point lead at the clippers. second time no three pointers. clippers got some ridiculous shots off. crawford, oh, my. working around. look at the setup for kevin durant. warriors rolled 115-98, that's seven straight wins over the clippers. >>> honored with a baseball hall of fame. so many great calls. fan favorite with the raiders, and the holy roller against the chargers in 1978. >> grabbing the ball, it is ruled a fumble. recovered in the end zone. scoring on the most unbelievable, absolutely impossible dream of a play. madden is on the field. he wants to know if it's real. they said yes. get your big butt out of here! he does. [ laughter ] great years behind the mic. part of five bay area titles in his career. king passed away in 2005. >>> got some love off the ice, out -- ottawa eric carl proposed to his girlfriend with the ring on

not ub crediblebly common for the waterspouts to move on shore. that was a big one. >> krystal: they've had rough weather. everyone's best wishes to them and hope they're able to clean up and stay safe during all this active weather. here at home things are quiet today. this is the time-lapse look from the red rock visitor's center. so far this morning a mix of sun and clouds. head throughout the early morning hours and start to get into the afternoon. the temperatures? it was in the 30's in many locations this morning in the las vegas valley. mostly staying above freezing. looking at mid-50s downtown. green valley 54. summerlin coming in at 54. winds though not an issue right now. it's pretty quiet out there. that's going to change. this is a look at the satellite radar. we have been seeing a mix of sun and clouds throughout the day. this is going to bring very gusty winds. we're looking at winds tonight to about 25 miles an hour. gusts to 35 miles per hour tomorrow. see all the areas shaded in tan? that is a wind advisory for tomorrow. begins at

there's also tea from the neighboring city of ube, and a sightseeing pamphlet. putin is expected to reach nagat oran o on nuthursday amp. prime minister abe will greet him at the hotel. the two leaders are expected to have talks in the evening that will last until nighttime. kurando tago, nhk world, nagato. >>> all right. japan and russia have spent more than seven decades without a peace treaty. leaders have been discussing settling the territorial issue. here's a look back on how that's being played out. >> reporter: japan calls the four islands the northern territories and maintains they have an inherent part of its territory. ru russia says they became part of their country as a consequence of war. in the final year of world war ii the former -- the japanese government says it was a violation of a neutrality pact. soviet leader joseph stalin annexed the islands and deported 17,000 japanese. a decade later, japan and russia resumed diplomatic relations, but the islands remained a sticking point and leaders agreed to continue talks on signing a peace treaty. i

the tournament, mrs krkic‘s were saying these are the best 11 players as a team across the year, the ub at the's recent thrashing in india did not factor, which perhaps six planes alastair cook's says as captain, no place in that team for virat kohli, which didn't call down well in india. quinton de kock is the one—day cricketer of the year. with football and cricket, i want to finish with this, so incredible pictures from a big wave event in portugal, these are some of the biggest waves that were either taken on or taken on and then come on people not getting the end of their rights, these are pictures from an eventin rights, these are pictures from an event in nazario weigl for big waves. the biggest wave ever surfed was in this place, a0 feet waves this time around and as you can see, not just this time around and as you can see, notjust some this time around and as you can see, not just some great this time around and as you can see, notjust some great rides but some significant wipe—outs as well. by the way, jamie mitchell won, so congratulations to him. stay with us on outside sou

. >> and they're looking at the costs now and saying, ub, i can't afford -- you know, i can't afford to do that. i don't have that much financing, i can't afford to make a return that i want. >>reporter: tom vacar, ktvu fox 2 news. >> and because of the high cost of construction in the bay area, about 100 large-scale building projects that had already been planned and approved are now on hold. >>> time is now 4:25. a san jose man convicted in a deadly dui crash was sentenced to six years in prison. police say 20-year-old carlos vialabos had a blood alcohol level of.20 just before christmas of last year when his car hit several other cars. the driver of one of those cars, 36-year-old carlos enrique torres was killed. rialabos pled guilty to all charges. yesterday in court he said he was sorry. the widow told the court that vialabos does not know the pain of not being able to say good- bye. >> this has been very hard on them. obviously he has a young daughter, she's only 5 years old. it's been very difficult for her and very difficult for his widow. >> prosecutors were pushing for a 10

alix: thank you so much, geoffrey yu of ubs wealth management. much shares ofp eli lilly down more than 19% this year come along with much of the rest of the sector. with a new ceo taking the reins, will the pharma giant see a better year in 2017? an exclusive interview with dave ricks. ♪ alix: this is "bloomberg daybreak." futures relatively flat, the dax up .6%, the ftse .1%.er the boe leaving the bond buying program unchanged. the u.s. dollar index at a 13 year high. you can see that expressed in 119, inchingp 1%, towards that 120 level, unbelievable move. that jibes with the bond selloff we continue to see, u.k. 10-year gilts -- real yields backing up, gold gets hit come off by over 3%. david: it wasn't that long ago we were talking about less than 100. alix: the 99 on that brexit night. david: let's turn to drew armstrong. drew has an exquisite interview with the incoming president and ceo of eli lilly, dave ricks. drew: david come a nice for you to come on and join us this morning. walk us through a little bit about what's in the guidance h

how much more could it go -- ubs has a $60 call for oil. take a look at the bloomberg.is the dollar/ ruble. we have seen the ruble come back. i have inverted it so you can see the rally. we have not seen the ruble rally as much with oil as we would have thought. does that mean we have emerging markets looking to price in and opec deal, or are they moving on something totally different? geoff: they are two separate questions. one of the reasons we like russian equities is partly because of the oil price call. what the oil price call will do in printable is feedthrough a better economy through an improved budget situation, provide more fiscal stability. i guess the markets are saying let's see if that comes through, and let's see if they opec deal holds. we like russia a lot. ultimately, the ruble goes 360, $60,d 85, -- through toward 85. david: how much of this is geopolitics, how much is fundamentals? is there competition between the head winds the rising dollar, for example, and on the other hand, improving fundamentals? before the election we heard about improving fun

chief down with executives at the ubs global media and communications conference in new york, startings moonves of cbs. youo accomplish everything would like cbs to accomplish, can you do it without owning some distribution? do you need to have an ownership interest in some of these distribution platforms? >> i don't think so necessarily. we are small when you compare us to disney or comcast. premium content company. our job is to do great content for cbs, showtime, late-night sports, etc.. if we do that, they will pay us for what we are offering and we do not need to be in distribution. >> at&t said they needed time warner, so they went and bought the thing. at some point, you have distributors saying we need choose cbs. we don't want to do a license deal. we want to buy you. >> i'm sure there are distributors who want to do that. we are a controlled company, so that is more difficult, but i can imagine people out there, especially when you see at&t paying a lot of money for time warner, that a company like ours would be very valuable in the open market. we have seen a really astonish

not the only lender to have breached regulations, ubs, standard chartered, they have all been named, at least six different jurisdictions involved from singapore to switzerland to u.s. and to hong kong. rishaad: right, thank you for that. come. more to china is determined to become a soccer star and continues to sign big names. rishaad: can they afford it? what is hot and what is not in 2017. we will be discussing investment strategy with peak asset management. ♪ rishaad: a quick check of the latest business flash headlines as nintendo shares on the move following the slump in new york despite a record run for super mario. the download is the fastest and app store history. super mario is currently only available on apple devices and in 140 countries. the $10 fee to unlock new levels is too steep, and some reviews less than glowing. tdk will buy a company in vensense $1.3 billion. malaise is state-owned energy companies to study two oil fields and iran, signing a memorandum of understanding, joining others and exploring iran's deposits after sanctions were eased in january. return toe

that was julian emanuel at ubs. so much to include in 2017.t's for sure. coming up in the next hour, "bloomberg" with vonnie quinn. vonnie: giving an eye on the top headlines of the day, -- keeping an eye on the top headlines of the day. i'm sure that it's not a also, jobs that he is talking about and getting those inventories at 11 a.m. eastern from the energy administration. that will be an interesting one to watch, considering oil will be dropping for the first time in many sessions. some of our guests today include the coverage of fedex, we will be asking about the outlook for , helped by season e-commerce even when retail is suffering. , the ceo of nyse palace fitness is going to be there in honor of their sponsoring the times square in new york new year's eve event once again. judgment free? analysts are not judgment free, they are positive on the change. david: coming up, our key takeaways. words for has strong the u.k. prime minister. this is bloomberg. ♪ david: this is bloomberg. i'm david westin. the key take away from the program to

oliver: coming up, we will take you back to the ubs media conference where our guest is mark thompsonw york times co. -- "new york times." ♪ oliver: the "new york times" covers the headlines but it has been in the headlines during this election season, drawing angry threats of lawsuits from donald trump, who visited the paper last month for meetings with officials, including ceo mark thompson whose standing by at the ubs lowball conference with bloomberg's david weston. david: we are joined by mark thompson from the new york times. let's talk about this election in this specific sense. a lot of people benefited in the aftermath -- the equity markets way up and the dollar is stronger. how did the "new york times" do? are 20% up since election day. the biggest thing by far as we have seen a really astonishing surge in subscriptions, instantly digital subscriptions, but on the print front as well. people's willingness to pay for the kind of journalism we do which we think of as being accurate, thoughtful and livered without fear or favor. that would appear there is a public appetite for

. >> right now ub beer and lift getting a boost.ng apps at theç airport but not such a good deal for airport passengers. if you want to catch a ride $4 in fees plus the fare and there's that. >> no matter how often you fly you can't beat mother nature. winter weather can cause thousands flights to be cancelled. there are tricks of the trade. and jamie, joins us founder of the forward cabinet and member of frequent traveller university. good to see you. tip number one. ç avoid flying into wintry place and that sort of sounds obvious, but there is more to it, right? >> yes, many of us have connections in chicago and detroit and new york. they are prone this time of year for winter weather and snow, sleet and connect in miami, charlotte and salt lake city and los angeles. places who don't have an obvious chance of weather. you will have a better chance of getting on time to your disastation. >> don't fly out the last night of the night. and find out where incoming aircraft is coming from. and lounge access is your friend and know bac

ubs, standard charter, falcon bank crowd to have committed breaches as well. investigations happening around the world. from singapore to switzerland. at least six different jurisdictions involved. we have not heard the end of it. >> thank you. cashing in on india's cash crisis. we talk about the opportunities in india. will talk about a potential in emerging market real estate. our guest will be here in a moment. this is bloomberg. ♪ >> this is daybreak asia. of the a quick check business flash headlines. googles a timeless vehicle unit is talking to honda about putting self trimming technology into the automakers cars. hondaal can be struck, would be the second partner after fiat chrysler. toeral motors and ford try reach an agreement but talks stalled. how to had announced plans to sell a ton was cars sometimes around 2020. is in talkst-elect over air force one. he told the tycoon the replacement job can be done for less than $4 billion. met them at his resort in palm beach, florida. arcade said they will try to bring the program down. he had said the budge

we sat down with chief executives at the ubs global media and communications conference in new york,g with les moonves of cbs. >> to accomplish everything you would like cbs to accomplish, can you do it without owning some distribution? we have seen how disney is doing it. do you need to have an ownership interest in some of these distribution platforms? >> i don't think so necessarily. we are small when you compare us to disney or comcast. we are a premium content company. our job is to do great content for cbs, showtime, late-night sports, etc. if we do that, they will pay us for what we are offering and we do not need to be in distribution. >> at&t said they needed time warner, so they went and bought the thing. at some point, you have distributors saying we need choose cbs. we don't want to do a license deal. we want to buy you. >> i'm sure there are distributors who want to do that. we are a controlled company, so that is more difficult, but i can imagine people out there, especially when you see at&t paying a lot of money for time warner, that a company like ours would be very

liz: robert wolf, 32 advisors founder around ceo, former head of ubs america. fabulous guy.re 15 1/2 minutes before the closing bell rings. transports getting hammered down 86 points in part because some of those defense names are pulling it down. is the president-elect too quick to attack those names and to quick to dismiss russia's hacking claims? republican congressional leaders standing with intelligence community leaders after trump's attacks on their findings. we'll get cyber response ceo joseph loomis's take on the fallout. and wait till you hear what the former cia spokesperson had to say about donald trump. you got to hear that one. that is on "countdown" next. huddles,bright lights, competition and games played. at td ameritrade we believe the best investments are the ones that matter most to you. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and ta-da, paid twice as fast! see how at quickbooks-dot-com. attention homeowners age sixty-two and older. one reve

quited: it is serendipitous you are on the set, because ubs came out with a that property sales may slowarply next year. we are already seeing that, that is the point. the fed hike and the stamp duty, but even longer-term, there are issues that investors have pointed out, affordability. rishaad: exactly, they don't see any room in china to have an interest rate cut next year either, so there we go. haidi: more things to worry about. rishaad: as if there was not enough already. haidi: thank you so much for that. let's get a check of business flash headlines. rishaad: lufthansa agrees to some demands. the german carrier proposing a 4.4% raise plus $21,000 bonus per private while dropping a demand for concessions on benefits. shares down after more than 4000 flights canceled. haidi: gopro swinging the acts as it struggles with new cameras and drones, cutting 15% of its workforce and shutting down its entertainment division, a signal that the company is narrow ring its focus. wall street has long been skeptical of their plans to build a media empire. shares have lost half their value this ye

stocks tracking gains in the u.s. , theng us from singapore head of asia-pacific equity and credit at ubsealth management. great to have you. you mentioned about these records, the dow rallying more than 300 points, bonds also up. it seems like there's a lot of pressure on mario draghi on this one once again. what if we get another disappointment that we saw in december 2015, it is not seem like we are setting up for that disappointment right now. howard: starting with the u.s. perhaps, we have [indiscernible] as compared to the first half where we saw earnings decrease drag by oil and other factors. the third quarter was evidently the first one since a while since -- that we see earnings growth positive year on year and that trend will accelerate. -- 2016omparing i-16 and next year followed by 8%. what the market does right now is to start pricing in and anticipate that better momentum and earnings. i think it is quite logical for the market here to follow the future ending trend upwards. yvonne: i you surprised by these impressive moves we have seen overnight? nine --ot exactly had head

>> for me a no vote makes markets are ub -- unwinding a little bit.ew that would hit the banking and financial institutions would unwind markets that we have seen. of course, they rallied so strongly. they do have some kind of correction in them, of course, but i think it's that woor that the euro could be here. we have to lock at financial institutions. the shares have done well since donald trump have come in but this is worrying for him. nicole: james hughes, thank you so much for join joining us this morning. yes or no. thanks. lauren: coming up for the first time in 16 months tiger woods is back on the golf course and he started out hot shen struggled but still upbeat. >> it was nice. it felt good to have that -- that adrenaline in the system again. lauren: we will have highlights. the dallas cowboys hold off the minnesota vikings for the 11th straight win but another another controversial ending, we will tell you more about it. right now at 5:50 dow down 31 and nasdaq 25. you're watching fbn:am, first look at morning markets and breaking news ,l

ub -- you know, paula, the line no parent should have to bury a child, that proved to be too much fors. her son speaking to abc news about his mother's final moments. we'll look at the intense and complicated relationship between mother and daughter. >>> the new lawsuit over the jonbenet ramsey documentty. documentary, the brother is suing nbc for claiming he had a part in the case. >> thanks paula. >> reporter: we have and accident out wees because of icy conditions. in king of prussia it's wet, i would watch it on the ramp. on mass transit, a modified weekday schedule on the buses and trolleys. >> reporter: radar showing the rain pushing in, there is blue highlighted it changes every time we look at it. up into reading an indication of sleet up here, that's mixing into allentown, as well. be careful heading out, even if it looks like rain, a concern for freezing rain in urban centers, i-95 north, the farther north you go you have sleet and snow. the temperatures are pushing above freezing up north, in rural areas in between the airports, a concern for freeze-up on roads this morning

rotation back into asked the ubs head em. >> it has been rough since the u.s.he data this morning. we have underperformed the developed markets by 900 basis points, 9%, if you like, since the u.s. election. most of that occurred in the weeks immediately after that. we argued to investors that they should think about getting back .o em we think that is the right call to make. very hards it will be for the new administration to really get the u.s. economy growing strongly in the near term. we think there could be some disappointments there. we have not raised the u.s. growth forecast postelection it that translates him in our view, to a bond market where the yields don't go up anymore from your and trend a little lower. all of those are decent liquidity conditions for emerging markets. it is not really a growth story in em, frankly. maybe everyone has gotten carried away with the excitement about the u.s. economy and, therefore, too worried about the bond markets and bullish about the dollar. david w.: you went there, the dollar. how critical is a weakening dolla

instead of wednesday bible study...brenna freeman and her chile "felt like i needed to be hiers wanted ube" the racine woman's pastor, mark "he was ffigure to my kids" but wednesday evening, church members learning their pastor had passed away. struck by a car while collecting recyclables wednesday morning. he was flown to froedtert where he died. "you expect your pastor to be here and not to be taken away in some tragic accident" gates meaning so much to so many. racine mayor john dickert calling him a "highly respected and dedicated employee" "a deeply faithful and caring pastor" also reminding people to slow down. a similar message from fellow sanitation workers at a vigil on washington avenu " we out here every day trying to do the job for the community just slow down" now...a void for the people of christ chapel. know him as more than just their but hope. "53:41 in a way this is gods ultimate healing. hes home" the cause of this crash remains under investigation. police are looking for any witnesses to come forward with information. if you know something call the brad thanks brittany

you want to tell us why ub here? >> i am here to support donald trump and do what we can to give him support. >> what are you packing? >> .45. i never travel without it. my family tree, i discovered a woman named marianne gaspard. i became curious where in africa she was from. so i took the ancestry dna test to find out more about my african roots. ancestry really helped me fill in a lot of details. generosity is its oyou can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. >>> . squierks another big week for president-elect trump. the countdown to the swaerk in is on. i spoke to former speaker

joining us now to discuss this is paul donovan from ubs wealth management. has the backdrop, rising stocks, bond yields and the dollar changed the outlook for what janet yellen will say and what the others will forecast this . this afternoon? >> i don't think it changed it terribly much. the fed is for now run by economists. the economists are going to be looking at the economic fundamentals. the economic fundamentals is you have an economy running well, so that dictates rising rates now and next year. the movements in the dollar and bond markets so far are probably not big enough to change the fed's perceptions of the risks. >> given quite a lot of expectations are baked in at this stage, could one of the surprises be president-elect trump's reaction to any decision the fed makes? do you think he's likely to comment on the fed does? >> tweeter in chief. >> the risk of a tweet is something new. we have not had to worry about this before. yes. this is relevant. in the >>> good morning.the past we had that meant trump has been hawkish on monetary policy. i thi

we talked about that with the head of ubs emerging-market strategy. >> invested rough since the u.s. we have underperformed the development -- developed markets by 900 basis points, 9%, if you like, since the u.s. election. most of the record in the week immediately after that. we argued it to investors that they should start thinking about rotating back to em. we still think that is the right call to make. the argument here is our view is it will be very hard for the new administration to really get the u.s. economy growing strongly in the near term. the could be some disappointments there. we have not raised the u.s. gross -- growth forecast since election to 2.4%. marketanslates to a bond where the yields don't go up from here and the dollar that tends to weaken from here. all of those are decent liquidity conditions for emerging markets. it is not really a growth story and em. everyone has gotten carried away with the examined by the u.s. economy. too worried about the bond markets and to bullish about the dollar. >> you went there, the dollar. how critical is the weakening dolla

then we have sort of ubs in switzerland, which is obviously going ahead of the path for the financial crisis, and the two large french global investment banks, bmps paribas and socgen. >> what do you make of them joining on the late against the ecb? some say when you talk about the cdc, it doesn't affect them as much as other french lenders? are they trying to send a message to the ecb or is it bigger than that? >> we are following, but we can see both sides of the story. it's not for us to express judgment as to how certain exposures would be treated. we observe our credit developments evolving and reflecting in the ratings. >> what will it take in order for your outlook to go from stable to improved to strong? >> the key weakness for the global investment banks is the profitability. we think many of them will not be able to deliver profitability below cost of capital in 2017. so improvement in profitabilities on a sustainable basis. stronger controls of risk management, allowing them to control the risk management banking part of the business and continued demand for banking product

let's bring in director of floor operations at ubs art cashin. right. >> what is happening at those levels where we're being turned away? >> well, i think what happens is once you stop, the first time we ran into the rate hike. and once you set thaup that kinf resistance -- i know i've gone this far before but i can't seem to get past it, so a lot of it is psychological rather than technical. but that makes it work anyway. >> how long do you expect that to last? i mean, does history give you any clue? >> well, not specifically to those numbers, but let us hope that we don't have as much trouble with dow 20,000 as we did with dow 10,000, because we punched above it and then pulled back and then it took a while to get back above it again. in fact, dow 10,000 was such a struggle that we crossed that line 67 times before we finally got above it and stayed above it. >> march 29, 1999 was the first time, height of the tech boom. and then of course the bubble. and it's been a bumpy ride in between then. the bubble burst, the financial crisis happened in

ubs director of floor operations is going to give us his market outlook next.ear what he thinks will take us past that important psychological mark. more "squawk alley" in just a moment. is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. >>> good morning, everyone. i'm sue herrera. berlin's christmas marketplace reopening this morning two days after a truck attack that killed 12 and injured 48 more. there was no advisable increase security measures and a vendor at the market site said she was surprised by the high number of visitors immediately after the attack. >>> a syrian girl whose tet from eastern aleppo captured the world's attention turkish president erdogan. they were evacuated to safety on monday. >>> the charlotte city council voting to repeal its anti-discrimination law in an emergency meeting this morning the council voted 7-2 to repeal h

joe terranova, the brothers najarian, aaron brown is here as well, the head of macro investments with ubs o'connor. the eve of the final trading day of 2016 seeing a modest move for the major averages lower today. there's the dow down nearly 20. s&p and the nasdaq following suit. so, doc, is it time to take some profits? >> well -- >> is the market telling you over the last couple of days that now is the time to take something off the table? >> no. i mean, you've run out of one of the necessary drivers to send the market higher and that is obviously trading volumes. dried up. we've all said it the last two weeks. that's not anything new. i don't think the fact we're going to turn the calendar page is anything new either, judge, except that, perhaps, and i think it's overblown, people who delayed sales if they all of a sudden like jim has alleged decide to make those sales early in the first couple of weeks of next year, yeah, that could cause a little water fall. i think it will be little. i don't think it will be -- >> look at the underpinnings of this rally since election day. what's it

when i was at ubs, we did not do business with those countries that were sanctions and those that werectioned we did. that's how a public company has to act. >> shouldn't there be a greater moral good, a greater moral call regardless of commerce and bottom lines and dollars? >> well the answer is yes and they're working with the u.s. government who was part of this deal. they're also using no bank financing. it's not adds if they're being finance bdd by the u.s. if president-elect trump decides to go differently like he did in that speech, that's one thing. but the secretary of defense that he's talking about, general mattis said it's unluke lick wi going to reverse the deal. >> boeing is one of the things that trump used when it came to united technologies and carrier. when you do a lot of business with the u.s. government you have more leverage. do you think it happens with boeing? >> i think he has the leverage he needs. he needs to e are are impose the sanctions. airbus is not going to come in and do this because they have 10% american made products. the treasury department said th

here with his 2016 outlook is a portfolio manager from ubs, glad to have you here on this last tradinge year. you say you have to be long. even with this tremendous rally we've seen this month this quarter and for the year. >> you have to be long if that fits in your risk profile. we're in a moment of enormous opportunity, enormous change. with enormous opportunity comes risk. if you have the risk profile to be aggressive here. it may make sense to be very long. you have a situation where you have a president who has unlocked the animal spirits. >> what does that mean? >> this is not a fuzzy concept, it talks about how if you have enthusiasm in the economy, if you have people who are excited about spending money, excited about investing, it can change how you analyze data. how you plug numbers into a valuation model. stan fisher, the vice chairman of the federal reserve talked about animal spirits in october before the election. he talked about how the fact that people are enthusiastic can, indeed, create a positive economy. >> it's interesting you mention peoples risk profiles here. d

you have coach, ralph lauren, struggling by ube i can iquity. >> i think guy's point was, there's going to be a place, there was obviously a place to buy these stocks a few months ago. if you think about the headwinds and think about where we are on trends, we'll be waiting to see where holiday sales are. >> you said maybe a short zone. what would you look to short? >> you could go the momentum on nordstrom's if you want to short that. amazon closing below 750 would pique bk's interest. then i would think about shorting amazon. >> bank of america just upgraded mastercard. they just raised their price target to 120. that stock was up today within 2% of its all-time high. to me, the secular changes for mastercard and visa still work. >> let's still with the mall, despite the selloff, our next guest says there are still names to buy, liz dunn has covered retail for years, liz, good to see you. >> good to see you too. >> two names that are not in the department store space, the frequently-hated department store space, one is cosmetics and one is sportswear. >> alta and foot locker look inte

ubs says a double digit rally could be ahead and later on cnbc do not miss valiant ceo joe papa today at 3:00 eastern. the closing bell with kelly evans, a cnbc exclusive. >>> welcome back to "the halftime report." white house press secretary is briefing reporters as we speak here at the white house. josh earnest saying the fbi is investigating the yahoo! hack. yahoo! announcing as many as a billion user accounts may have been affected in a previously undisclosed hacking attack. ramifications for government leaders here in washington. there could be a significant number of government officials whose personal accounts have been access the by whoever it was who perpetrated the hack. the fbi is investigating. >> yahoo! shares down more than 5% on the news today. we are joined now with a new investment strategy. good to see you again. >> likewise. >> a smile on your face this time. the last time were you cautious, concerned about the market. trump gets elected and now we're going to make america great again. you've changed your whole outlook? >> we have. >> just based on the election of d