in europe. to ignore and cut ties the europe would say to cut ties to all these people. europe and turkey sit in the same boat. if you try to destabilize turkey or if turkey tries to destabilize or ignore europe, it will be the same boat. for both sides, if they want or not, they are -- there will always be a need to cooperate. on which level is another question. this has to be figured out. but right now, i think i agree with mr. thurmann. it is time to be more honest, and also to realize that turkey is a vigilant democracy, so there has been things in turkey that the reaction might be , theeaction, but remember reunification in germany -- nobody was killed, no tanks were on the street, hundreds of thousands of people -- also in my family, i'm married to a german woman, and my father-in-law was pulled out of the army and my mother-in-law was put out of her job. nobody died. similar --n was not it was actually worse than in germany. now you see in turkey, hundreds of people have died. countrysitu

but he had a great sense in his -- thatfe that europe the united states was not going to go to europe and make it a wonderful place. ofhad a sense of the limits what american power can do as a government. that does not mean you should avoid humanitarian work. he would and did support that. that was not a government action. >> kind of like get back on your feet, and we are gone. want us --e did not he even said in 1917, that it was a necessity. , but hei am a quaker did not want the united states inenter world war i alliances with anyone. he thought the european powers would try to manipulate us into their systems of all alliances. it is interesting, woodrow wilson referred to the ouratriots in the war as associated powers. he did not like to use the word the allies. we were associated with them. had a desire for american detachment from what is perceived as old europe. hoover stall of close the kind of rivalries and tensions that occurred after the war, and so -- he was really annoyed at many of them. the overriding purpose he had was to save the children, save the people, give beyond

one outcome in central europe was a massive political clamp down in eastern europe. gone were are the nice coalition governments or attempts at free elections or anything like this. these were simply stamped out. foreign minister mazerik mysteriously fell out of his window. we now have evidence he was murdered and many others were arrested and killed as well. and terror swept over central europe between 1948 and '56 in czechoslovakia alone, over 100,000 people were arrested, imprisoned, tortured, executed. 422 concentration camps were opened up in czechoslovakia, and around 12,000 people a year were sent for example to work in the uranium mines. so stalin dropped any pretense of holding free elections and the countries of central/eastern europe were firmly behind the iron curtain where they'd remain until the collapse of communism. now the allies had to decide what to do with germany. and given stalin's behavior, they now started to turn away any -- again, any thought of compromise with stalin was really going out the window at this point. in january 1947, the britis

so i feel it in europe. i also feel it in the united states. >> in europe trump is truly and deeply problematic it is an identity crisis issue. because you know trump support in europe and the people trump will support are theetion populists, it is fileel forage who campaigned for him it is willedders on the freedom party from the netherlands. it is marine lapen, those are the deepest enemies of these establishments. >> rose: they are the people donald trump relates to. >> is supporting. and assuming that-- . >> rose: with. >> it has gone both ways. we've seen that. we have seen it in tweets in her campaign stops. and if there is indeed not just an end of the confrontation between the u.s. and russia, but if that becomes warmer, that is a significant-- and trump has given every reason to believe he has intention to at least try that out, that becomes a serious problem for nato, a problem for poland, for the baltic states. so the transatlantic relationship which is really the underpinning of this, of history

will the wave of populism continue to roll across europe? i will talk to france's presidential candidate emanuel macron. in europe, the far right-wing did not materialize but renzi lost after a failure of referendum that he staked his political career on. in 2017, both france and germany go to the polls to elect their leaders. in both nations, populism is on the upswing. partially embolden in part by trump. i had a chance to sit down with a candidate for the presidency in france's upcoming elections. the economy called europe's biggest populist danger. listen in. pleasure to have you on. >> we are looking at what is happening in europe. you are living it. what do you think is going on when you look at the italian vote? in france you've had mr. fillon do well. is this a wave of right-wing populism that is continuing? >> no. first of all, i would not have compared the different countries and the different trends you mentioned. mr. fillon is a classical rightist. he's not an extremist and he's a very respectful man and nothing comparable with w

that the voters in europe want. a reformed europe, they still want higher levels of unemployment, problems with growth, what type of europe will people who support the project, when those elections, or will people who want to rip up the project and cause more tension in europe and possibly split up the european union, will they win? it is going to be a fascinating year. we are going to wrap it up, but let's put the cards on the table. could we see a european shock like we have seen brexit, and the election of donald trump? all the polls, i know we have to be very careful, all the polls suggest not, but at the end of 2017, what might be described as the establishment parties have re... put themselves back at the centre of europe. the european project is incredibly important to the european governments, at the end of 2017, at the polls suggest, that they will look more victorious than those who want to break up the european union. one thing we learnt this year was don't listen to the polls! thank you for your time thi

it is -- >> it is a signal to the rest of europe, all of europe, and the european union. matt: still with us is kevin gaynor. kevin, do you see this as a turning point, that you know, a pro-european candidate can win, and it is maybe not all about right-wing populist movements sweeping all over the continent? >> no, in short. i think this is the limit to populism. in a core european state, we very much have the memories. i think the extreme right wing will struggle to get into power, even in places like austria, that have a record of sk irting. france is a slightly different 'sory because marine le pen agenda has shifted to more social policies, like benefit giveaways. she is polling very well up in the northeast of the country, on the border with germany. re thats a risk the because she has moved away from some of the more flowery rhetoric, i have heard it that ideas,d copping trump's she could do very well. i think there is a natural limit in places, certainly in europe, to these more extreme positions. the populous migration surrounds economic exhaustion and flatlining

why talk to europe at all? recently, a european politician said all european nations are nations but not all of them realize that. i don't agree with this idea because you have great nations in europe. i don't want to mention anybody unless i offend anybody and we treat them as such. whatever europe does inside itself, how they build their relationships with each other, it is not about business. you know better than myself that they have sovereign nations with a small infrastructure or a quasi-federal state. there are two concepts. like i said elsewhere, the number of provisions of that are mandatory for all the countries make up more decisions made than what the supreme council in the soviet union. i don't know whether it is good or bad for europe. it is not up for us to decide that. it is up to you. yes, there are differences about migrants, the migrant crisis. other things. again, it is up to europeans themselves to decide about that. there are certain countries in europe who object to the current migrant po

the essential point about continental europe is that 80% of lending in continental europe is a complete inverse of the u.s.. what i have picked up is that there is some real sense of resolve, particularly in italy, to solve the banking issues. what is us talk about happening in europe and whether it is a sad place for a fixed income point of view. mark nash, anything in europe that is attractive right now? we have seen the spread buying out across the atlantic. we are seeing pretty much everything else blowing out as well on the periphery. what is the right trade to make in europe? mark: i think you have to be resembling negative to bonds in europe. europe, just like the u.s., either a fiscal stimulus, and that is not going to happen, so what the european central bank has done essentially is they know their recovery is weak. they have we rose, core inflation is incredibly low. instead, they have done a boj innocence. support --rates to the boj in a sense. if fixed rates. hopefully they can benefit off the positive growth coming out of the u.s.. what they have done is they have looked to

well, in britain, across europe and in the united states it has been a tumultuous year. the brexit vote, donald trump's victory, political turmoil in france, italy and elsewhere. all have shown countries divided within themselves. scotland, post—industrial areas of northern england and the prosperous parts of london at times appeared to regard each other as incomprehensible. trump and clinton voters often seemed to belong notjust to different states but different visions of the united states. how significant has 2016 been in terms of these major political events? the deep social and cultural divisions between so—called populist movements and their critics. i mean, that has been the story of most of the big democracies. really big divisions, hasn't it? yes, and your word, incomprehensible... clinton's word, despicable might be more to the point. deplorable. i beg your pardon. and irredeemable, that was a particularly awful word to use. there is something in common in all these, the populist movements in europe, and the divisions in america. and that is a sense that a

focus on europe, focus on asia. the national security council of is incorporated after korea, about 1951 that will dominate our policy. even in the reagan era there is still a consensus about containing the soviet union. it is on the methodology. also, there are signs of dissolution of the soviet union. it kind of reduces some of the impetus. arguably, you know, the antainment grand strategy is fromtisan policy arguably about the late 1940's until the walls go down. bipartisan approach to foreign policy which is pretty amazing considering the state we find each other in today. that would be my take on it. alex: a slightly, slightly different point but interesting to see the popular responses in europe over those decades and perceptions of the soviet union. in thee parts of europe 1980's a reassessment of the cold war, the americans were put into the light of being much more the aggressors that if stalin hadn't been so bad, you talk there is a lot of about disarmament and how the united states handled it. so that ver

he had a troubled time in europe. he was not authorized to be in europe at all. german authorities tried to deport him, but did not have the right paper work. it sounds like a lot of gaps here that show real concerning problems for authorities getting hands on guys like this. >> good morning, christine. that is right. you have two problems here. one is that each of these countries in europe has been too slow to really get up to speed with intelligence cooperation and homeland security systems and other processes that allow them to communicate basic information they collected. they have a lot of a haystack and it is hard to find a needle in a haystack. this is one problem. in the end, you cannot surveil every suspect. you cannot keep track every person who has been through the system. i think the debate is in europe and here in the united states, how do you leverage relationships with communities in all of these countries to help you not only keep track, but be a trip-wire first warning system when people like this start to do things that indicate they may prepare

earnings in europe, are expected to grow by 12.5% next year. europe had a good growth year. currency hedge -- if you had any mind at all, you might be concerned. have a look at this. markets are the calmest if we get to the nex rest of the mont. markets in europe are the calmest ever. the stocks is trading at a level we have not seen since 2014. we are looking at the calmest talk market on record -- stock market on record. does that mean you want to buy some protection, does that mean you want to be in an unprotected way? when it comes to the u.k., the gulping market is just starting to -- the gilt market is just starting to get underway. u.k. five to 10 year inflation expectations heading 3%, the highest since 314. what does that do to your bond market exposure? -- since 2014. what does that do to your bond market exposure? the great big reflation party trade. i'm off to the big radio party. let us get your stocks to watch with nejra cehic. >> it is a great radio party. the stocks and looking at today, nice moves starting with the health care set your and chilean sanofi.n a

about year for europe. the continent strained to absorb near-record numbers of immigrants arriving from the middle east and africa. also, britain voted to exit the european union. and a new populist movement is threatening to bring more of the same brand of political change as we've seen here with the election of donald trump. we sat with the e.u. ambassador to the u.s. david o'sullivan and began the conversation with immigration. on the immigration situation, in the u.k., and europe, when we hear things reported in the united states, i think there are views. two one of them is that the gates have been opened and have welcomed people who are in desperate conditions and it's added a great deal of diversity to the e.u. and it's been a wonderful thing. on the other hand, i think there's a view that people are running amok, there are you know increases in crime because of this and people are endangered. what's the truth? david o'sullivan: well, i think it's much more the former and much less the later. i mean i

if it ceases to be a habit, and the nationstates of europe, the great geography of europe map ofath, a very thin the european union, if that starts to go on, the spaniards start to think about spanish interests primarily, and perhaps even more importantly, the germans start to allow themselves to think in terms of what is their real national interest, then the geography, the political geography, is threatened. and equally,, and i don't want to get involved in the u.s. election campaign, but i have to say this. i find it deeply disturbing that one of the two candidates has actually questioned the fundamental commitment that binds nato together, which is that every nation has to come to the defense of any nation attacked within the alliance. speaking in terms of it is something you have to consider on its merits, what the record of that particular country is, same kind of thinking. if we lose this habit of a recognition of mutual dependence and mutual alliance, then i think it could be very bad. what is my hope? my hope is we won't go down that route. when people really understand what

the combined victories of brexit and donald trump are felt across europe. the christmas markets of prague are a glittering symbol of a remarkable transformation. from decades of dictatorship and stagnation to one of the fastest—growing economies in europe. the czech republic's wealth has more than quadrupled in a generation. it is only 27 years since the people who overthrew soviet—backed communism in what came to be known as the velvet revolution. somewhere in this crowd of a00,000 is a much younger than me. reporting those tumultuous events. as news filtered out of the changes from the dark suburban building where the central committee were meeting in crisis, we were with the crowd... there are clearly distinct crowds forming now in the square, one in front of me, chanting slogans that have become familiar over the last week... flags of the czech republic are being raised all round. and the grandeur of the national museum in front of me, lit up in the night sky. it was a really thrilling thing to stand here beneath that balcony and watch an entire nat

he was able to have the americans do a lot for europe. as he perceived america, he thought america had built into it, thanks to what he called opportunity and social mobility and neighborly will -- neighborliness, built into the american experience was a community experience, and he saw that through community chest and the red cross and other entities. he tended to rely on those organizations existing, networks of philanthropy and volunteerism. he saw the volunteer spirit as part of the american heritage, so in 1927 when the mississippi river flooded which was the greatest natural disaster in american history at that time, at least 600,000 people were displaced from their homes in arkansas, louisiana and the lower south. calvin coolidge set up a government committee to work with the red cross. hoover was on that committee, and hoover became head of the efforts. for several months, hoover, who was secretary of commerce under calvin coolidge, he organized that relief effort for the mississippi river. he went down there and organized committ

francine: you were mentioning europe and the fact you are more concerned about the economies of europe. is there anything politicians can do to stave off -- i don't know if you want to call it a wave of populism or being more angerch or placate folder -- voter anger? mr. flint: i'm not a politician or social scientist, but it does seem to me that people react badly to uncertainty in their own position. they want to believe that the future will give them more opportunities to be able to do more for their families. their kids will have a better life than they have had and so on and so forth, and i think that means giving some confidence to populations about the kind of work that will be available in the future. i mean, we are entering a time of enormous technological change, where technology will transform many of the industries , particularly service industries, that have been less touched than manufacturing. that will have a big impact on the job market, so what will governments do to reassure people that they will invest in the retraining, the rehabilitation of people whose jobs are g

the weaknesses in europe also stem from the unsolved problem in the middle east. putin is causing ever more refugees to be shipped and migrate to other parts of europe which would increase instability in the west. actually, it leads onto the last question as to whether or not there is a cold war in europe? i do not see another. the west is far too weak to present a solid front that it used to have. it is struggling to come to terms with its own crisis. 2017 will not see the end of that. the case for a cold war. we discussed this before. for there being some kind of new cold war in this continent of ours, is ukraine, which you have pointed out is a matter of great sensitivity to russia. as you know, the baltic nations, sweden for example is reinforcing islands in the baltic that they withdrew troops from 25 years ago. it is doing extraordinary things. real sensitivities in the baltic states as well so how do you see the relations between putin and the west, particularly nato? relations between putin and the west will be terrible because nato is not only closing to

daniel: basically, low growth in europe is a problem now. down the line it will lead to lower employment. you will have problems with low consumer confidence, this kind of thing. you need to address the situations now, and there is a problem in europe that the tools are not harmonized compared to places like america or china, where they can basically start a business and make billions with your company inside the internal market before even considering going overseas. that is it the situation in new york -- that is not the situation in europe. >> germany and france are talking about setting up a billion-dollar fund. daniel: it is timely. i'm sorry, but it is absolutely timely. when you look at the biggest silicon valley firms, they are worth hundreds of billions of euros. you need investment in other places -- states like france and germany to invest in a digital infrastructure. increasing the speed of your internet connection, or whatever it takes with education, to make sure that wages go down and investments to the companies themselves ar

looking flat back -- across europe. the tax and the dac -- teh cac and the dac edging lower. -- a bid to improve corporate governance. mostlyestors, institutions. they want to put that to a vote at the next annual general meeting. the north well is looking to be sold. --ting the stock itself trading slightly lower at 0.2% lower. fiat is said to be developing an autonomous vehicle joining a lot of companies doing similar things. prototypedy have a vehicle on the road according to the report but it is unclear when they plan to deliver that to the market. the details of what you need to know on this final trading day of the year. let us have a look at some breaking news coming from spain. the inflation story. cpi, month on month for december up by 0.6% against the estimate of 0.2%. looking at the eu harmonized estimate. 0.1%. the year on year number is also stronger than expected. 1.5% dpi year on year in december. the numbers are similar if you look at the eu harmonized number. stronger than expected inflation story comin

four minutes away from the start of trading in europe. markets on this side of the atlantic up by 0.1. that is the fair value on my bloomberg. the market opened next. this is bloomberg. ♪ guy: good morning. i and the city of london. matt miller is back in berlin. we are moments away from the start of european trading. matt: park impeach. will korea's parliament take the president of power over the influence-peddling scandal. and inflation nation. china's factory prices jumped. it is this filtering through to consumers and the rest of the world? plus, what did draghi deliver yesterday? investors deliver the meaning of the word paper. we will bring you analysis. guy: thanks you -- thanks very much indeed. european equities are mildly positive. the dax may be a little softer. a flat opening prospect. we continue to watch the european banking sector as we continue to see the curve steepening up here in europe. let's take it the market open and show you what is happening, in terms of where the lines are going. 100, a mildlyse positive start.

there's going to be a lot going on in europe in the next month. and austria, of course, did not set the trend this way. >> before you go, i did want to ask that. what future do you think lies ahead for austria under the leadership of van der bellen? >> i mean, you have to take into consideration that the austrian president is much more of a representative figure. the government takes the important decisions and in opinion polls for the parliamentary election, the freedom party ranks clear, number one. so the government better get started now and set the reform process in motion. there are lots of things to do. the refugee crisis, high taxation, rising unemployment and people want answers because they're not happy. there's a big discontest with the governmentairee performance. we have a decision for the president but the next parliamentary election are going to be very interesting. as i said, government better get started. >> thank you so much for joining us and bringing us your perspective on this. we do appreciate it there in vienna where it is 9

and america may have on europe. reporter: in prague the christmas markets are a symbol of a transition. a dictatorship and poverty to one of the fastest growing economies in the eu the country's wealth has quadrupled in a generation. the anti-communist revolutions of 1989 changed the shape of europe. watching as they gave voice to the continent. it was thrilling to stand beneath that balcony and watch an entire nation take control of its destiny. it wasn't just democratic transition. at the heart of the revolution was the idea they were returning their country to the heart of europe. is it still so? some argue that having taken control of their national destiny from moscow, the former communist states gave it away to brussels. independence,of it is a joke. they wanted to be integrated. unified. the role of the national government is rather limited. most of the decisions come from brussels, not from prague. this is not independence. former communist bloc has its own rust belt. this steel factory collapsed under marke

it is europe wide. as you remember just in the hours after the attack several of the far right more populist leaders in the netherlands, marine la pen in france and even nigel verage in britain came out to attack the open door policy that chancellor merkel announced. now they have turned on their heels and they are using the death of amri and his fleeing throughout europe to beat not only the immtion policy but the european union project itself. we have heard tweets from right wing populist leaders saying that the european union allowed for this man to not only just move from place to place, but to escape authorities for so long because of this open border agreement. back to you. >> matt bradley in berlin. claudio in rome. >>> we have an update on amri. nbc news confirming that he was on the u.s. no-fly list. in fact, one official we spoke with is aware of contacts between amri and known isis members in europe and is investigating whether the attack could have been directed by isis rather than just insp

you're looking at europe's most wa nted you're looking at europe's most wanted man, anis amri, the main, the only suspect in the investigation into an attack which shattered germany. prosecutors warn he may be armed, dangerous and they're offering a 100,000 euros —— reward. translation: there is a new suspect, we are searching for him. we will keep investigating every lead. we issue a warning —— issued a warning at midnight for the suspect‘s arrest. we are learning more about the 24—year—old tunisian. he arrived in germany last year and was refused asylu m germany last year and was refused asylum but granted temporary leave to stay. the security services admit he was known to them are considered a threat because of his links to one of germany's most notorious to islamist networks. he will be hard to find. he used six different names and three nationalities. translation: this person attracted the attention of several security services in germany through his contact with a radical islamists. the hijacked lorries yielding grim evidence. documents leading to the suspect and dn

europe. it is one of the largest economies in the eurozone. it is a country with strong institutions. they will have to deal with the economic situation in italy. the reaction to markets are pretty relaxed. solution andasy italy urgently needs a government capable of acting. they fulfilled their under 3%.s to deficit the situation is better today than it was two years ago. mark: take a look at where european equity markets are trading. what a day it has been. stocks fell and they shrugged off the news of the italian no vote. stoxx 600 up by .6%. i have a look at what's happening in the currency. the euro initially following -- falling 1.5% against the dollar. with the bond board. on will see the yields europe's main bond markets rising. seeing thee we are big impact of the no vote in italy. the italian 10 year yield. the close is five minutes away. this is bloomberg. ♪ london, this is the european close. stocks finishing up today, investors shrugging off the italian no vote. constitutional

germany is europe's centre of gravity now. pianos from this factory sell around the world because they are among the best in the world, and that is germany's economic strength. the pursuit of unity in europe has been germany's way of turning the page on its own dark past. the eu has been germany's act of contrition and of redemption. the pianist, saleem ashkar, is a palestinian, now settled in berlin. what i do see is a country here that has been traumatised by its past and, as a result, has become extremely thoughtful about politics. in a way, germany has used its traumatic past for the good. it is now a very, what do we say in german, very awaken. it's not sleepwalking anywhere or careful, very careful of sleepwalking. 2016 has given germany a new responsibility, one it did not seek — how to lead in europe without rousing the ghosts of german domination in europe. germans are incredibly neurotic about world leadership or even about european leadership. they don't like to think of themselves really having a foreign policy.

the difficult one to predict is europe because you have so many elections. there's all this discussion around brexit and whether that encourages activity to take advantage of conditions that exists today or if people react to what they see the landscape going forward. francine: are you concerned u.s. may stoke inflation worldwide? mr. flint: there are those who would argue that is a good in, so theoretically, it should. again, interest rates should begin to rise, and there are many ways these kind of interest rates rose because zero or 0% policy rates have no flexibility, and you begin to get a risk curve again and the savers begin to see some reward for their savings. you can argue either side, and economists do. francine: you are of course a lot more concerned about the economies of europe. is there anything politicians can do to stave off -- i don't know if you want to call it a wave of populism or being more in touch with voter angst -- let's call it that. mr. flint: i'm not a politician or a social scientist, but it does seem to me that people react bad

manus: the question that comes slap innd is another europe. is the western social backlash just beginning? is that the most critical risk for 2017? mike: there's always risk. i think you have to put yourself in the shoes of an individual. in the united states today, one in six blue-collar workers has dropped out of the workforce. the only country that has a higher percentage is italy. so there is many similarities today. the fear of "what is my job in the future?" when you see driverless cars and trucks in the united states today, the number one job in many states is "driver." so for a consumer and another business seeing this, it is different than a family. it is driving for ups or as a taxi driver, or even a forklift driver, in computerized warehouses today. manus: you were talking about anderless truck drivers what the jobs were in 1970 and now. vision, as you look at the world. changet big set piece of in economies and markets. mike: well, i think the next change here is how are we going to create jobs? the majorityy, if do not feel they h

it, it would not be good for europe. jonathan: europe has been crisis and financial we have seen more political ago.entation than 45 years -- four or five years ago. when we will -- when will we have number stations about re-denomination? greater thing to talk about is whether or not europe and leaders can come together and come up with something that makes sense. the theory of the eu and the ecb and of the euro is that europe would be better off of everything works together and is more coordinated. despite these devices, the euro, eu, ecb, europe does not seem to be working together. we need the leaders in europe to get together and recognize that they have a potential crisis and have to be more cooperative, recognizing italy cannot do everything that the ecb and eu rules require. if germany and others do not relent to bits, them will be bigger problems in europe. david: there was brexit and complaining that leaders were not really elected. one is really for reforming brussels. is there move in -- movement towards recla

>> it looks like more trouble for europe. we have to get a handle on this and we have to find the command and control center of isis.

and each of those elections will be a big test about the kind of europe that the voters in europe want. a reformed europe, high levels of unemployment, problems with growth. what type of europe will people who support the project, windows elections, or will people who want to rip up the project and cause more tension in europe and possibly split up the eu, will they wind? it will be a fascinating year. but the cards on the table, could we see a european shock like we have seen brexit and the election of donald trump? we need to be careful, the pull suggests not, but at the end of 2017, what might be described as the establishment parties have put themselves back at the centre of europe —— the pulls. the european project is incredibly important european government and at the end of 2017, it is suggested they will look more victorious than knows what that one to split up the eu. one thing we learned this year it was do not listen to the pollsters! happy new year! the uk's decision to leave the european union certainly surprised global markets, but investors didn't need to wait long b

♪ francine: hsbc is europe's largest bank with more than 235,000 employees across 71 countries. douglas flint is the bank chairman, a role he has held for six years. he's helped guide the bank during its economic realities and this year's wave of populism has brought a raft of new realities. i sat down with him and how he would rate -- asked how he would rate 2016. mr. flint very interesting year. so theturbulent market beginning of the year, things quiet down a bit, and we have these two unexpected political events, the brexit referendum in the presidential election in the united states, which produce results that were not expected. that led to some volatility and uncertainty in the thinking about what the implications would he, but we closed 2016 beingoth those events factored in better than expected. so it has been a very interesting year. lots of supplies is, but one of the great things was how well markets and institutions of the marketscope. was there a sense of not being able to trust the polls and not knowing what his next? mr. flint: we're sort of leaving the honeymoon

europe, me talk about tony. we are trading at one of the biggest spreads that we have seen for quite some time. i have a chart that shows this. if the u.s. is looking europelly expensive, is looking tactically cheap? tony: i would not say that. the u.s. is not expensive when you look at the level of inflation and interest rates. it is fair, not expensive. but to answer the question directly -- our call would be, given the global economic activity, e.m. over dm emerging markets and europe over the u.s., based partially on evaluation discrepancy -- the monitor that -- the monetary stimulus that is happening out of the ecb and the bank of england by buying corporate debt -- is not like you are buying 10 basis points -- you are directly injecting money into the private sector by these two central banks buying corporate debt. it has had a very stimulating effect that most people did not expect. i think that is the reason you want to be looking at europe versus the u.s. bob: if the u.s. does proceed to deregulate, per

europe dries into it later. the us is much more, the american economy has to accommodate and so somehow they are flexible markets in europe and we don't have decal and monetary policy as you have in the us. and we know that in fact i'm doing work now showing the very complementary immunity between on the one hand structural reforms at the labor market and on the other hand macro policies in terms of that we have spoken this way but if you look at the growth of monetary policy what you learn is the trade following the recession is at these levels and you look at the effect it has on the growth of ours, you can see the growth of facts are much bigger in systems that are more liberalized. this very thing, france over the past year we had low interest rates. we had low euro and we had low price per volume. we have grown very fast and you can have very rigid markets. you can have all the macroeconomic policy you want . in that respect, it's the price that where the solution is to have a more macroeconomic policy in e