julie: i am julie hyman. this is bloomberg markets. china is pushing back against an accusation by donald trump that it stole a u.s. naval drone. in a tweet, trump said "we should tell china we don't want the drone they stole back, let them keep it." aging doesn't like the word "stole." joining us now is bloomberg's policy reporter. next, thank you for speaking with us. we did hear that response from china it was a relatively muted response. why is that? why hasn't china been more outspoken? >> you are seeing a situation where china wants to sort of play it cautious and steady until president-elect donald trump actually takes office. they understand that we have one president at a time and they will deal with the obama administration on issues of policy and what is actually happening and they are giving donald trump a little bit of a pass when it comes to his statements now. it would be a much different story once he actually takes office. actuallying president starts to challenge some of china's core interests in the south china sea a

julie: i am julie hyman, in for vonnie quinn. mark: business leaders are meeting for the milken institute's summit. manus cranny is standing by with michael milken, chairman of the milken institute. thank you. has had 40day sessions. welcome to bloomberg. great to have you with us. mike: it's mike. i'm not old enough to be a "mister." manus: three major upsets in the world. brexit. trump. and "re-xit." matteo renzi's exit. very fewre are surprises. what has occurred here was building for a number of years. the promise of finance and the promise of capital is to create opportunities for your citizens. median united states' income is lower today in 2016 that it was in 1999. the same in italy. there's a commonality between many of these issues you are seeing here. forink the need and search what is my career in the future, what is my job in the future, seen,s my future is being particularly in europe, the united states, japan, korea, and many countries around the world. aroundone can then turn donald trump saying he will make americ

skyline, i'm julie hyman. mark: chilly but beautiful. i am mark barton. this is "bloomberg markets" on bloomberg television. more from our newsroom in new york. agencyu.n. humanitarian says the syrian government send 20ed plans to staffers to monitor evacuations from aleppo. they will depart as soon as possible. 25,000 people have been removed from the city. for evacuation. the human human rights chief tots philippine authorities investigate the president for murder after he claimed to have killed people in the past. the chief wants to probe into the 6000 killings committed during his anti-drug crackdown. mayident elect donald trump face i financial loss if he sells his hotel. he would help both sides of the lease for the trump international hotel washington, d.c. that opened in september. for the organization to get back the investment, a buyer would have to pay $800,000 per room. it is unclear if the property could attract a bid that high. one third of americans say russia influenced the u.s. elections accor

this is bloomberg. ♪ ♪ julie: i am julie hyman. this is "bloomberg markets." amk: and live from london i mark barton. the latest on the u.k.'s move toward brexit as the appeals hearing wraps up. they argued they are giving the prime minister the authority to leave the e.u. without parliament approval would "crucify human rights." joining us is patrick, scottish, welsh always a ramping up the pressure today. what were they arguing? : first and foremost they were saying they were not here to try to block brexit or stall it, but clarifying points constitutionally. we heard richard gordon, the may would bethat crucifying human rights without approval from parliament first. 4 come to a conclusion, we will not know the outcome until january. where do we stand after four days of intense hearing? justices doled out a healthy amount of skepticism for everyone. lord knew berger said the referendum act was at legislation back in parliament, did it concede power to the people then? they said it was a joint effort when we joined the european union itself between parliament

julie: i'm julie hyman. this is bloomberg markets. donald trump has gone after china again on twitter. us if it did china ask was ok to devalue their currency , heavily tax our products going into their country? we are joined by bloomberg's international government executive editor john. this tweet was in response to criticism of trump for taking a call from taiwan's president. china has had the one child policy for decades now. there has been a lot of talk about how big a diplomatic brouhaha this will set off. president yet. what do we make of all of this? >> that's a very important point to make. they could have chosen to express alarm and outrage at what president-elect trump tweeted. very much the word out of beijing is that he is not president yet and perhaps he is being badly advised. they are doing everything they can right now. julie: this is pretty much in line with what trump promised going into the election. that he would sort of speak truth to power. hard to find folks outside of china who defend

julie: i am julie hyman. this is the european close. president-elect donald trump says the newest air force one order should be canceled. he spoke this morning at trump tower in new york. : the plan is completely out of control. it is going to be over $4 billion and i think it is ridiculous. i think boeing is doing a little bit of a number. we want them to make a lot of money but not that much. julie: boeing has responded saying, we look forward to working with the u.s. air force on subsequent phases of the program, allowing us to deliver the best plane to the president for the best value to the american taxpayer. rick plus who covers boeing is with us. give us a little bit of the background. there obviously is an air force one in existence, and what is the status of the order for the next one? rick: the existing air force one planes are nearing the end of their 30 year life span so it is time to get a couple of new ones. boeing has already signed a deal to bid the new -- build the new ones. they are under a $170 million contract right

julie: from bloomberg world headquarters in new york, china julie hyman. -- i am julie hyman. mark: saudi arabia giving its first detailed look at a long-term budget plan. they have been hammered by falling crude prices and deficit standing at 11.5% of gdp. seriese implementing a of unpopular austerity measures. riad, what is the big take away? >> the big take away if they think they can get the budget deficit down to a surplus as early possibly as 2019. there may scenario think it will be 2020. they are hoping to achieve this by not necessarily reducing spending, which they are focused on this year, by increasing revenue from the nonoil sector and from an increase in oil prices. mark: on the sector front, who is going to benefit from this budget? riad: we had austerity this year. contractors were not being paid on time. they said to have paid those bills. they cut back on subsidies so the consumer, the saudi citizen has less money to spend in the quebec on spending. as theyctation is implement support programs and as they have now paid the s in a set period, you can expect co

. ♪ julie: i'm julie hyman. mark: i am mark barton. counting down to the european close, 13 minutes away from the wednesday equity session. let's get back to the markets. european stocks in the red today, they reach their highest levels of 2016 yesterday. let's head over to the head of global asset allocation. he joins us from paris. thank you for joining us today. trumpfh further has this lation trade got to go? i would say at least until january 20. the end of the year is the moment am playing, all the ones just a few in -- days of by year end. i would expect some kind of pause on the equities and the yield going up on bonds. mark: do you think it has overextended this rally in equities? have the economic policy which would confirm to exit some measures, which would lose the economic activity in real terms, but also in nominal erms. that means nominal gdp growth might have to go faster than expected. you the correspondents, if you catch the corporate tax rate from 25% to 30%, this would boost corporate earnings by 8%. 15%,u see it fr

julie: i am julie hyman, this is "bloomberg daybreak." discussing rates since the first time with the u.s. election. we will little doubt, be closely watching to see how they view the impact of a donald trump presidency. joining us now is thomas costerg . one of the top-rated forecasters on the u.s. economy. thank you for coming in. obviously, not a lot of suspense here about the fed meeting this week in terms of what they are going to do. but could there be any surprises? not just at the meeting but what they could indicate going forward? are you bracing yourself or anything unexpected? thomas: the fed is a happy camper right now. now, they will deliver what is expected. however, there are a few risks when you think about the donald trump spending plan and the other is whether it will move more than two rate hikes next year. i think that is what we will get from wednesday. gives typically, the said a data dependent caveat. is it most likely that in terms of the trunk fiscal spending plan, of which we don't have many details, that they wi

julie: i am julie hyman. this is "bloomberg markets." is,sche bank in the cross this time with a high-profile client, at least currently. president-elect donald trump. at whatoined for a look germany's biggest bank is going to do to rework their nearly 300 million dollars in loans to mr. trump ahead of his inoculation next month. they have had a long-standing business relationship. a contentious one. what is the current status of it and what are the loans for? >> there for donald's various projects, golf courses, the hotel in washington, which is obviously in the news a lot, so these are bona fide big term projects -- big trunk projects. he has been a client of deutsche bank are many years and deutsche bank has continued to work with him, even as other banks have not worked with him quite as closely. the issue now that deutsche bank -- has one ofr the clients elected as president of the united states, it brings up interesting questions on how do you manage the fact that the president of the united states is going to be owing money to one

julie: i am julie hyman. this is "bloomberg markets." in his newest book, "the undoing project," michael lewis writes about a shift in sports, medicine and government with two psychologist. let's talk to tom keene that michael lewis. tom: [indiscernible] absolutely courageous. this is the early lead there 2017, so we will jump into next year. twice this book important? -- why is this book important? michael lewis doesn't need another important book but this is important for two reasons. he has brought so i put of the foundational ideas of economics and has really brought to life one of the great losses of economics, and that is one. congratulations. when you wrote this and brought it to life, it is pouring, game. , the haverhill economics, but -- behavioral -- it is boring, game economics, behavioral, so what did you have to do? to do spectacular characters with a tumultuous, romantic kind of -- theythere were points hated each other. michael: the story has a shape of a love story, so it was emotional, part of the secret to the ability t

i am mark barton with julie hyman. two industry groups rose today, oil and gas on the non-opec deal in vienna over the weekend. utilities, the others all declined. it's the third decline in six days. sinceggest weekly gain january 201512 oil stocks rose on the back of that opec deal. sinces for the first time april 2015. the oil and gas index fell to the lowest since 2003 on january 20. it has rebounded by 40%. let's get to some of the individual corporate stories. gains,he biggest ever it's also a record high as well. pioneere agreed to buy global for 3.5 billion euros. will do is accelerate its growth in the u.s. and in europe. 22the way, this overseas billion euros in assets. eightl be the number asset manager in the world. the chief executive said he wants to be a european competitor to lack rock in the u.s.. shares are up by 5.4%. i want to come back to this that broke on a friday. did century fox tabled this for sky, the satellite broadcaster. up.es shot this is a today chart. now, nine pounds 73, -- so saythis w

julie: i am julie hyman. templeton emerging markets -- emerging markets group says the currency has surged to the highest in more than a decade. asked what a donald trump presidency would mean for the currency? >> i think in the short-term the dollar isn't getting stronger but in the longer term, i think the heavy spending that he is going to bark on, not only in infrastructure but defense, will result in people starting to think that maybe this dollar shouldn't be as strong as it is now. we are probably going to see a weaker dollar. julie: in the wake of the brexit vote, mobius says politicians and central banks need to wake up to political risks around the world. >> i think they are beginning to realize that their policies are not working. they have been pushing on the strings, so to speak. be evening systems have to given up. they cannot continue them. europe see japan and moving in the direction that the u.s. is moving. julie: that was mark mobius of templeton emerging markets group. mark: we are heading

julie hyman is here with the latest. julie: we are not seeing much movement ahead of the fed announcement. you sent to ta did one even there is a hundred percent probability they will raise rates, and even though there is not suspense about the rate decision, there is suspense about the commentary and the speculation the president elect could be tweeting around the fed meeting. the dow, yesterday, getting within 50 points of 20,000, is pulling back by 34.5 at the moment. the s&p little changed to the, in the green, but little change. you see a little bit of granular, push and pull on the market. energy stocks are the worst performers. you see oil pullback. a.m. ventories, 10:30 there could be volatility around that. financials are down. along with real estate stocks, health care and consumer staples behaving better. individual stocks holding that gains include general motors. china earlier today saying they will raise a tax on small cars that would curb an incentive for the auto industry. also the g.m. joint venture in i

julie: from new york, i am julie hyman. shares of blackberry are higher today. they boosted their earnings outlook and they have a profit in the third quarter. caroline hyde is standing by in san francisco with the blackberry ceo. caroline: i am joined by john chen, the chief executive of blackberry. the pivot is on. you are moving from hardware to software. is this sustainable? can it go above 70%? normal growing software company can do better than 70%. it will take us a while to get there. caroline: how about the revenue growth? you said that was going to be about 30% on track. 30 percent growth for the next year? john: no. now the numbers are getting pretty big. i think the market is growing about 15% next year. we are committed to grow faster than the market area we are comfortable about that. caroline: anglo marco always used a blackberry because of the security in offered. you seen a pickup in demand? actually, in a certain way the answer is yes. discussion,of people trying to get their arms around security and cyber security. mobility is one of the bigges

julie: i am julie hyman. this is "bloomberg markets." ceo of coca-cola announcing plans to step down. >> we have shares soaring on this news. they're up 2% on the news that james quincey will be replacing muhtar kent as the ceo. we did reach out to a bloomberg intelligence analysts, who says that this is a natural progression. james quincey has been groomed for this position. 65%,s of coca-cola are up and on the year it is a different story. decline.bit of the it is modest on the year. can shea told us there are a couple of different reasons for this, one is right here. revenues declining over the last couple years. it appears investors are not going to tolerate this as much. coca-cola derives 75% of its business from out of the u.s., and it is getting clobbered by a rising dollar. declining as sales consumers are less interested in sugary drinks. it will be interested to -- interesting to see what the company does in 2017 and 2018 to turn those sales around. mark: thank you. it has been a big week or new etf launches. from funds that tr

julie: i am julie hyman. it is time for the bloomberg business flash, a look at some of the biggest stories right now. general motors will close five factories next month. the factory could close anywhere from one to three weeks, just over 10,000 workers will be idled. plants in michigan, ohio, kansas, and kentucky. italy considering a measure to boost public debt. the plan would apply to a number of bank lenders, which means to $1 billionaschi, would be extended to banks should monte dei paschi fail. lawmakers are meeting this evening. sony pictures is looking to take a bite out of apple's itunes in italy. chile.s a 5% stake in some of the biggest investors on the video-on-demand platform include paramount, viacom, and one of brothers. u.k.,has extended to the germany, poland, and australia. that is your bloomberg business flash of it. oliver: china is pushing back -- flash update. oliver: china is pushing back on the assumption that it stole a naval thrown. donald trump tweeted "we should sell china that we

julie: i'm julie hyman. ramy: condo construction is proliferating in manhattan and that is creating stiffer competition for buyers. it is all about fewer restrictions and more amenities. with more, talk us through the sales numbers first. the rise of the condo and the fall of the co-op. >> everything is falling on the luxury side. but when you drill down to the numbers, co-ops have been falling more. costs.% from luxury let's specify about $4 million. people with $4 million for more to spend our gravitating to condos. happening? s that oshrat: choice. so many larger condos happening and not enough buyers. condos are essentially offering the luxury product that is newer with more amenities and fewer restrictions. you don't have to go and submit your entire financial history in .ront of a board may reject you they said other terms, like how much your dog can, how much cash you need to have in the bank. you can do it without the intrusiveness. ramy: how much of it is a question about liquidity? when you want to

. ♪ julie: live from london and new york, i am julie hyman. mark: i am mark barton. this is "bloomberg markets" on bloomberg television. bad, bad day for european banks. joining me to shout all about it is chris jeffery, strategist at elgin and which has more than $1 trillion in assets under management. thanks for joining us today. the italian parliament today on publice motion debt for 20 billion euros. bloomberg is running a story saying that italian banks have the 52-billion euro whole and the balance sheets. how much for capital do you believe italian banks need? chris: we think the 52 billion number is a little on the high side but not wildly inaccurate. what does it mean for a time gdp? %.number on the order of 2-3 this is not an insurmountable amount of money on the national level. in spain it was roughly twice as big. this has been a frustrating thing thinking about the italian banking issue, the amount of money from the time government -- mark: navigating it is the biggest -- once again, the eu standing in the way of resolving the banking issue that has been

julie: and from new york i am julie hyman. mark: breaking news from the trump personnel choices. cohenn sachs ceo gary said to be the president-elect's choice to head the national council. how is this going to impact goldman? joining us is the u.k. financial team leader. start with michael. talk about draining the swamp. is gary cohen, top of the nec, draining the swamp? trump likes to pick people with goldman ties. he had a long career originally from ohio. he has never been afraid to say what he thinks about the economy. i think it does have some strong opinions. >> what sort of hold does that leave? michael: there has been a list of potential successors. the fear was because lloyd blankfein has left as ceo, no one could move up. you had the three vice-chairman -- chairmanr retire. there are a number of positions people can move up to. julie: who is the next generation? potentialbe the contenders for his position? erik: lloyd doesn't seem to be going anywhere, but this could precipitate a bigger shakeup of the gold that shakeup of goldman sachs paid it could give the board rece

i'm julie hyman. mark: and i mark barton -- and rton.ark ba rates unchanged ahead of next week's fed decision. we will hear from the central bank's governor. julie: iran is getting ready to sign its first oil deal since sanctions were eased earlier this year. mark: and a closer look at taiwan following president-elect donald trump's conversation with the elected leader. why the united nations does not recognize it as a country. centraln india, the bank kept interest rates unchanged before a possible increase in u.s. borrowing costs. the reserve bank of india is also meeting to see the impact of the government's decision to ban 86% of the currency that is in circulation. here is the central bank governor on that decision. >> efficient outcomes in september and october as well as the latest projections for q4, 2016-2017, indicates this stance. you may recall that, in october, the trajectory took hedges on inflation towards 5% by march, 2017, with risks to the upside. mark: iran is about to sign its firs

julie: i'm julie hyman. withil: the charts deal when will tightening with the possibility of the fed tightening hurt stocks. going higher with the threat of tightening hurting stocks. we first take a look at g#btv. surpriseberg economic index and white was down your lows, basically telling us the economy was somewhat on shaky have -- shaky ground. we see the s&p 500 and that economic surprise climbing higher, telling us the economy is doing better than analysts and strategists were thinking. perhaps that tells us the economy and stocks can handle rates going higher, that's what we do have a little bit of this dichotomy. take a look of the next chart, which shows in slow cycles, it's the second slow cycle the painful for stocks. possibly this wednesday, with with a lag, that could be what we're looking at. and finally, when was it a little long-term chart the gives great perspective in terms of yield and stocks, we see the s&p 500 has really shot to the record highs. the seems to have supported s&p 500 perhap

. ♪ julie: i'm julie hyman. it's been a year of diverging central-bank policies, bank of japan focuses on its yield curve, the european central bank maintains an expansionary policy and the federal reserve just announced a more hawkish plan for this coming year. a global strategist sat down with "what'd you miss?" yesterday to elaborate on how this will play out in 2017. we asked him why he sees japan as a relative -- relatively positive picture. >> i think what is behind this is a big global inventory liquidation. we saw it in the u.s., it was global. when inventories are coming down you will see weakness in production. you saw a lot of weakness in industrial production during the first half of the year. you saw it in china, in japan. we've now seen over the last 4, 5 months that particularly purchasing managers index is for the manufacturing sectors have all picked back up into the 52, 53, 55 range, which suggests there's a rebound taking place. we've seen that in the pmi readings in the manufacturing sector o

this is number. -- this is bloomberg. ♪ julie: live from london and new york, i'm julie hyman. mark: i'm mark barton. five minutes until the end of the monday session. there is plenty of global reaction to italian prime minister renzi's resignation. bloomberg television caught up with some of the most notable leaders in the eu. a strong primes minister who led important reforms economically, politically, socially. i'm confident italy has the means to address this situation. shouldn't analyze the referendum other than a referendum on constitutional reform. question about a europe they are fiercely in favor of the european construction and want to italy in 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

this is bloomberg. ♪ ♪ with i am mark barton julie hyman. this is the european close on "bloomberg markets." theresa may facing a monumental task extricating the kingdom from the e.u. orchestrating new trade deals at a time of geopolitical and economic uncertainty. there are rumblings in her own a circle that the team is going about it the wrong way. is misstalk about it o'donnell. thatthink the problem is people are not giving them the benefit of the doubt, they thought maybe this was a new form of government or more old-fashioned and less collegiate. the problem is, what has transpired since is that her two seem to be regulating access to the prime minister that such an extent that even members of their own cabinet are afraid of either expressing their views openly, putting even simple policies through and the talk has now become that theresa may herself may be increasingly unaware, also -- of the rumblings in the background and of the fact that people are dissatisfied and frustrated. is this leading to policy mistakes that have had to be

julie: live from bloomberg world headquarters in new york, i am julie hyman. joe: i am joe weisenthal. oliver: i am oliver renick. the question is, what did you miss? scarlet: risk assets -- julie: risk assets appear to be taking a breather. oil retreating from its highest close in 17 months. treasury is extending gains after a strong auction. sears ceo eddie lampert is opening his wallet yet again to help keep the struggle retailer in business. he is offering a $200 million lifeline, but that amount could grow to as much as half $1 billion. the u.s. retaliates against russian interference with the 2016 election. the obama administration announcing changes against russian officials and expelling 35 operatives from the u.s.. we will have the latest developments from washington, as well as from moscow. we're now getting some headlines from a russian conference call saying the russian reaction will create discomfort for the u.s., and that russia regrets over obama's decision on the sanctions. he also says -- the spokesperson there -- the kremlin spokesperson, the

. ♪ mark: i am mark barton along with julie hyman. we are watching oil today trading at $51 a barrel. the speculation of production boost from shale production output will counter the first cut from opec. we are just about to get --ustry data from the u.s. what are we expecting? julie: expecting a drawdown and that is what is happening. a drop of 2.4 million barrels in the weekly inventory barrel. is nearly double. gasoline inventories climbing 3.4 million barrels. desolate inventory barrels climbing. so that could potentially counterbalance some of the effects of that drop that we are seeing overall in inventories. we will keep watching the price of oil but at the moment, we are seeing this close to the low of the session. oil prices are down for the second straight day. i don't know if we have a look at what oil is doing in the wake of this. 50.36. or so.n the barrel so we are watching that closely. so in terms of other breaking news that we are getting, cbs reporting that donald trump has -- the third general selected by donald tru

julie hyman is here with the latest. julie? julie: it is interesting that we have seen this resilience in the markets now in the wake of the italian referendum. i will dig into that more at around 1:40. in the meantime, the nasdaq is rallying the most after falling the most last week. the dow has of course been the big winner ever since the election here. we have got a sort of similar pattern today. energy and financials. here's the dow in the wake of the election, up by about 5%. we have seen some large-cap companies doing well, small caps also performing well. if you look at the biggest winners by market cap, and losers at the election, it's an interesting and telling list. jpmorgan has gained $41 billion to rise to a new record. berkshire hathaway, ge, exxon mobil on the winner's list as well. losers, tech has done poorly in this time. , $20e, facebook, amazon million in market cap with johnson & johnson, microsoft, and apple on the list as health care has been perceived to be a performing well in the wake of the election. b

julie hyman, thank you very much. time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. standard chartered is considering doubling for its legal basins of the european union. that is after britain does the former process of withdrawing. haveank has then said to approached irish officials about a subsidiary and getting a license to operate across the eu. standard chartered is also talking to german regulators about frankfurt. itsrning from chipotle -- loss is focused on customer service, according to the co-ceo, who says deteriorating performance has slowed lines and undermined a former strength. chipotle is struggling to bounce back from last year's e. coli outbreak. u2 tells the music industry that we are not the bad guys. have been onutive the offensive against youtube, a choosing the site of letting music to enrich itself while giving little back to the musicians themselves. that is the bloomberg business flash. luke ellis says markets are looking for what happ

julie: and i'm julie hyman. let's get the latest from the markets. >> one of the big stories from today is still water mining is being acquired for $2.2 billion, this as we're starting to see a recycle of m&a for the miners. and we take a look at a bloomberg world mining index. we see this year just a huge gain up nearly 46% on the year as we have seen a rebound in many of the commodities. it has been a good year, but just in perspective, the miners have really outperformed. gb-tv. a look at we see down here on the bottom, that's the bloomberg commodity index up about 12% on the year. but the mining index in white outperforming, against up about 46%. a good year for the commodities but a great year for the mining stocks. now one reason recently that we have had gold coming under pressure is the dollar. we see the inverse relationship when we take a look at the chart here. and there we have the dollar rising and gold dropping. gold is still higher on the year, but the big question is whether or not gold can rebou

let's go over to julie hyman and get a check. julie: we have a broad downdraft in commodity markets. oil is the exception today. it's been bouncing around, has flirted with losses over the course of the session. a bit moment, closing i higher, up .3%. we had some new numbers coming iea saying the opec production cuts will diminish supply. we are seeing gold and silver continue to sell up ahead of the fed meeting. copper is also down as we see a reversal of the recent postelection trade. --are watching energy stocks despite the bouncing around between gains and losses in oil prices come energy stocks have been holding up well pretty consistently throughout the day. up 1.4%, one of the best performing groups in the s&p 500 today. , we got the opec and non-opec member agreements. now -- up about 7% now. we are watching chinese production as well. priceseen a rebound in and a rebound in chinese output. china is the second largest buyer of oil in the globe. we are announcing that output rebound from the seven-year low. now seeing that

julie: i'm julie hyman. oliver: we are 30 mins away from the u.s. ande: a quiet trade day that's following the holiday read -- holiday weekend. oliver: the question is what did you miss? upmajor averages giving earlier gains in the dow has been flirting with 20,000. tech stocks like apple and amazon listing the nasdaq to another record. brian moynihan after simply years of consolidation. there is more to come. -- gloomy before donald trump one and out the market is up. we will examine that claim. let's take a look at where the major averages stand. -- abigail doolittle is standing by. abigail: we have stocks rising. the dow 20,000 -- the dow is .bout 50 points quiet tire trading. we have met -- record highs both on intraday basis, the all-time high, on pace for a record close. the s&p 500 had been there earlier. the s&p 500 is not on pace or a record. bloomberg commodity index is up 1.5%, having its best day this month. since thenning streak end of august. one point it million barrels per day starting this sunday. we, and itengthened looks like ther

anchor: i'm julie hyman. scarlet: you can watch our closing bell coverage of every weekday from 4:00 to 5:00 p.m. eastern. we begin with our market minutes. a record close here for the dow jones industrial average and the nasdaq comp is it. 11 major groups in the s&p 500 rising. in terms of economic data, no scheduled events. there was no specific catalyst for us to continue this rally. julie: volume is down. people are wafer the holidays -- are away for the holidays already. it is on relatively low volume. scarlet: if you look up the sector breakdown, this is grouped ranked returns. no clear divide between cyclicals or defensive, certainly among the winners. telecoms, which is typically a defensive set are also gaining ground here. also gaining ground here. your consumer staples and health care, but is health care really a defensive these days? julie: there is not a lot of rhyme or reason. scarlet: what we do see thematically is the continued drag lower in the vix. it is holding below 12 at the moment. 11.54

this is bloomberg. ♪ julie: this is bloomberg daybreak. i am julie hyman. a check of the markets, looking at equities. almost unchanged for the u.s. in terms of futures. down 10, s&p 500 down one point five and ftse is lower but pared losses, down about two thirds of 1%. the dollar still down versus the japanese yen about .1 of 1% and the euro selling off versus the dollar by the same amount. crude is lower but pared some losses and we are seeing a little buying in the treasury market with the 10 year yield down to basis points. our morningll go to meeting, where we here at key banks are looking at now. the bloomberg dollar index had the best month on record after donald trump's upset the three. the index is poised for its first weekly loss in a month as traders shift focus to today's u.s. job data and sunday's italian referendum. with thisrd is back and joining us from new york, brad bechtel, jeffries foreign-exchange strategist. welcome, brad. tell us about the dollar because it is softening today. is this temporary or is there a turnaround coming? brad:

this is bloomberg. ♪ julie: i'm julie hyman. "what'd you miss?" let's dive into the bloomberg and you can find all the following charts using the function as a bottom of the screen. speaking of something you probably missed, this is on the watert authority. everyone is watching this all day. julie: this has to do with flint, michigan, and the spreads were looking at here on these bonds. the five your car on these bonds maturing in 2033. we have actually seen a tightening. what does all this mean? new criminale seen charges recently stemming from this that, the bondholders don't appear to be concerned. they scene the spread tighten since this happened, rather than widen out. there's an interesting disconnect between the headlines and the investment in what we are seeing. venezuela.inds me of speaking of surprises, let's talk about oil. put in perspective what a crazy year it was for oil, going back to january and february, near $25 aling down barrel at one point in february. it just seemed like this was the total in, then it rebounded. then in june

m julie hyman "bloombergme to markets." we are covering stories out of san francisco come in, argentina and israel. the nasdaq hits a new intraday record as the dow tries once again to get closer to 20,000. we will look into why the trump rally has no signs of stopping. case-shiller index finds another 5% gain in october while in national home price in next posts its biggest gain since 2014. trumpsident-elect prepares to take up this, what will his impact beyond the renewable energy industry? we will hear from todd becker. in two hours.lose let's check on where stocks are trading with abigail doolittle. we have a little more movement today. abigail: we are looking at gains today, looking at the nasdaq, and all-time intraday high on the day come also on pace to close any record high. 500 had been on pace to close at a record high earlier but is off of that market just -- mark just slightly. technology helping the s&p 500. the dow is the laggard and off of the highest. early this morning, the dow had just below 20,000. if it

julie: and i'm julie hyman. scarlet: welcome to viewers who are on twitter. you can watch closing bell covered every weekday. we begin with the market minute, sleepy in terms of equities and how they are performing today. we wanted to a couple of sectors that i will begin with european banks. they are in the news, one making headlines. they are paying a combined $12.5 billion to uncle sam. and we see italian banks gaining after the italian government agreed to put 20 billion euros into their veins. bloombergeck on the to give you a sense of how quiet it was today. this is the dow jones industrial average and what we saw today, 30 point move. that is timing. it is the lowest ranges since december 2013. if you want to see or get a sense of houston -- of how thin trading was, so far we have this blue horizontal line, a swing if you can call it that. 30 points. julie: can we acknowledge that amazing fun -- pun. scarlet: in terms of weekly performance when you are looking at gains all around. this is the seventh straight weekly gain. the longest stretch since 2014

. ♪ julie: i am julie hyman. mark: this is your global business report. follow from the brexit report may be overblown as the private sector growth -- if u.k. climbs to its highest level in a year. julie: finland's nokia suing the maker for infringing on several patents. look at how president trump could undo years of financial regulation. chile: a measure of private sector growth has climbed to its highest level in a year, flying in the face of concerns about brexit. the index was helped by a strong performance in manufacturing, the best i more than two years. retail activity slowed slightly. from five in july just after the eu referendum. promisedald trump has to dismantle the dodd-frank law in an exclusive here in bloomberg. said we should not get rid of it but amended. it is a real question of, are we over engineering a solution to his double question him a witches not have our capital invest in prince will risk. markets.tate it ended negotiations with a $22 billion drugmaker. nokia is suing apple, saying the iphone may infringe set -- infringe severa

. >> i'm julie hyman. joe: i'm joe weisenthal. >> and we are minutes away from the end of the year. >> the final trading day of 2016. the s&p 500 and nasdaq ready for their best performance since 2014. energy, the biggest winner. and still the best year for them 2013. joe: "what'd you miss?" lower andcks -- going we would take a look at some of the best and worst performing assets this year. it has been a wild 24 hours for the ruble following the announcement of u.s. sanctions and the russian nonresponse, but now the currency is going to have it strongest year against the dollar. and the question that will not go away, can the euro and in a vicious experiment -- ambitious experiment survived? the region is facing more political headwind in 2017. julie: taking a look at where the major averages stand as we go toward the close, not just for the trading session, but for the year. abigail doolittle is standing by. abigail: we are going into the final 30 minutes of trading for 2016, the dow, nasdaq and s&p 500

let's go to julie hyman for her chart of the day. julie: i'm looking at charts of the date. we examine the dollar rising ripple effect throughout different types of markets, different assets, segments of the economy. this has been a big topic of discussion in the wake of the election as we have already seen a strengthening dollar. it looks like the year-over-year change in u.s. tourism on the white line and then the bloomberg dollar index on the blueline. we have seen a waning of the year-over-year change in tourism, the red line denotes zero. the drop below it last quarter means there was an actual drop in tourism. interestingly, even though the chinese currency is one that has weakened against the u.s. dollar, we haven't seen a drop in chinese tourism, in part, because the economy there is still strengthening. that has been one area where we have seen this manifest. another area is within small caps. the fact that small-cap stocks have performed better since the election their large caps. you typically tend to see a high correlation between all stocks. the russell 2000 and

let's go to julie hyman for charts of the day. are talking about sentiment as we head towards the end of the year and the sentiment seems to be overwhelmingly going in a single direction -- that is up. we have seen optimism in the stock market with stocks near record highs. this is a measure of the outlook for stocks. this is our survey of strategists that we do on a monthly basis. we update every time the strategist updates the forecast. this looks of the past several years and the gap between the highest and lowest forecast of folks we survey on wall street. i should point out, first of all, that all the strategists are looking at the s&p 500 to be higher year. the gap between the highest and the lowest is only 200 points. we have been doing this since 2007. that is the smallest to get we have seen in the history of doing this survey, or compiling the survey numbers into a forecast. the average forecast for next year, 2356. the highest way 500 from jonathan called. the lowest is 2300, from a number of different forecasters. a di

julie hyman has the latest. julie: don't think we are going to get a rate increase tomorrow. stocks hit record once again. just a focus in on the dow in particular, it is now setting the 13th high since the election. this is the 16th record close since the election. we have been within 130 points of 20,000 today. this move was 35 calendars, 24 trading days. thentially, this could be quickest 1000 point move ever in the dow if we do hit 20,000. we are watching it. that may have happened too quickly. this is 3505 on the bloomberg. this is basically a momentum indicator for anything you look at, the it stocks or an index. this goes back 20 years. we are seeing the dow by this measure as the most oversold it has been in 20 years. it's just an indicator of the rapidity of the move we have seen in the dow. one of the things that is also holding back gains today in addition to this assessment of whether stocks of gone too far too fast is what we see happening in the commodity market. we see some week this in some of the commodities and commodity related stocks are in a three of the

julie hyman is standing by. julie: stocks are not much changed, which is not terribly

julie hyman is here with the latest. julie: and what is another mixed day. we see another similar pattern with the dow higher, touching a record high on a closing basis of the nasdaq trading sharply lower with the s&p hovering in the middle. oil continues to be part of the story. we see

let's head to julie hyman with a look at auto stocks. julie: we got the november auto sales for automakers that sell cars in the u.s., and they are largely better than estimated, in part because of higher subsidies and incentives that the automakers are offering to customers. general motors sales are up 10%. incentives topped $10,000 on some silverado pickups and suburban suvs. suvs were a strong area in general, for ford as well. it sales were up 1.5%. that 5.1% gain far above the half a percent gain that analysts had been anticipating. the one outlier was the a chrysler, sales down by 14%. of the estimate was for a drop of 9%. also looking at the ripple affected -- among other types of auto stocks. auto parts are trading higher, from delphi to lear. if you look at companies like autonation, for example, we see some gains, there. thank you, for that. now we want to get to our next entry, the mexican peso tumbling against the dollar. this amend -- amid news that -- during is with more is bloomberg's economics editor, michael mckee. micha

julie hyman is here with the latest. julie: and what is another mixed day. we see another similar pattern with the dow higher, touching a record high on a closing basis of the nasdaq trading sharply lower with the s&p hovering in the middle. oil continues to be part of the story. we see prices rise for the second straight session, closer to $52 a barrel. by 4.5%, a two day gain is the biggest since january. that is powering higher energy companies. we are still seeing lags in other areas. interesting news from caterpillar, presenting at a credit squeeze -- credit suisse conference. talking about oil, saying that oil volatility made it hard to predict what customers will do and that the gains have not been sent -- substantial enough to affect spending decisions. the company saying that forecasts next year are too optimistic although caterpillar did say it is somewhat optimistic when it comes to infrastructure spending and other presumed measures of the new administrator -- administration. caterpillar is still struggling on a number of different fronts around

julie hyman? >> junk bonds are also doing quite well this year even before the election. donald trump can take credit for this rally that we have seen re. high-yield debt has returned this year but if you are looking at specifically energy high-yield debt that is larger. it fell also steeply last year. at is theis looks energy high-yield's, specifically high-yield energy bonds. they bought them with oil bonds and since then they have collectively rallied 37%. then, the blue line is looking at the high-yield index, excluding energy. it has also risen but not nearly as much. finally, the investment-grade index has shown a flat return so far this year. this has really outperformed. bank of america says we will see a for-5% return on high-yield's overall. that is specifically still overweight energy. news boston from bloomberg wrote about the return for high yields and other bonds. vonnie: this breaks my heart has taylor, that was an amazing presentation but i am going to award the prize to julie because you are reading my mind. we prepared this chart for one of the second ti

let's go to julie hyman. is bloomberge intelligence's eric velti address. there was an etf conference at bloomberg yesterday. i was there, you were there. there were interesting things to come out of the conference called etf in depth. let's go through some of the highlights, what you thought were the highlights. some of them i was therefore, some i'm just. blackrock said etf's are replacing futures and swaps because investment ranks are shrinking. what an interesting comment. a earthshaking. etf's are thought of as replacing mutual funds. they will take into a 50 billion dollars this year. active mutual funds will only lose 200 billion dollars, maybe $250 billion. they will trade $20 trillion this year, one third of all doesy trading or where this money and volume come from? big institutions used use features and swaps to do things to manage their portfolio, to adjust or equity ties cash. now they are using etf's. the regulations have eight banks less interested in holding risk on their balance sheets. etf's have told him a lot of when investment banks use

this is bloomberg ♪ julie: live from new york, i'm julie hyman. mark: and i'm mark barton. this is the european close on "bloomberg markets." let's turn our attention to brexit. scotland will hold a new referendum on independence from the u.k. unless the country is able to retain access to the european single market. that is according to scotland's first minister nicola sturgeon, ultimatumentered her in a commentary piece. theresa may a short sturgeon she will look at the proposal. we are joined by the bloomberg news editor rodney jefferson. what do we know about sturgeon's plans? rodney: we know that scotland set out very clearly in june after the brexit vote that it was not going to accept the result. scotland.f for every region of scotland voted to remain in the european union. the thing we are waiting for is to find out what they will say about policies such as immigration. would there be a border? also, with trade. how do you keep access to the single market if your biggest trading partner has just left it? that will hopefully be laid out. mark: what sort of arrangemen

joining us now is julie hyman. julie: i will be picking up the ball along with mark barton on that 20 k watch. we will have continuing coverage of the events in germany as well as in turkey. more on the outlook for 2017. we will be talking to julian of the equity and derivative strategy as well as david kelly at j.p. morgan asset management about their outlook for next year. both of them are relatively optimistic. we'll get the details on why they are feeling that way. jonathan: that's coming up at the top of the hour. much more with mohamed el-erian. pimco saying increase your cash holdings. we will debate that next. this is bloomberg. ♪ david: this is bloomberg. i'm david weston. both nike and fedex are set to announce their earnings today. the worst performer in the dow so far this year. the countdown toward dow 20 k. we're about 22 minutes into the session. the high prints in today's 1998 six.s it reminded me to go and an amazon search. still available on amazon. also down 40,000. june 26, 1990 nine. we are g