Angeles. It is time to get to the markets. We are 30 minutes into the trading session. Abigail doolittle is here. Abigail we are looking at a relatively bullish start. The dow is now higher for a six day in a row, putting it at another alltime high. The s p 500 moved down fractional yesterday, so we dont have a record high yet. The nasdaq since late november, but bullish action. And a man thinks we are going to continue to gain right into the end of the year on two factors, the possibility of future and cast into the u. S. On tax reform that could come back in the form of dividends, plus buybacks, then earnings. He thinks 2018 will be very strong. It now into the bloomberg, seeing what is setting up from a short perspective, bearish bets on the market. This is 5568. The put open interest on the s p 500 ultrashort etf. But is a very spent on the s p 500 that is a bearish bet. The calls are going skyhigh, the business investment, investors are bearish on the s p 500, Retail Investors and hedge funds using this vehicle. They dont know if it is being used as a hedge against the markets or if it is an outright bearish bet. Time will tell. Ets get a look at the movers disney and 21st century fox, we have disney and 21st century fox climbing on the 52 billion deal where disney is buying some of the fox assets including sky along with fx and other assets. Then we have viacom and lions gate. Lions gate, there could be speculation some of these smaller film deals could be in foxsfter 21st century film studio going to disney. On the day, the company cutting 14,000 jobs, also suspending the dividend and turnaround, up 15 . They beat sales in a big way. The backlog is very impressive, then look at this, pier 1 imports down 30 , the worst day since a big earnings miss. Big decline. Bank it has been a central theft today, the bank of england, the Swedish National bank, the ecb, and i will throw in turkey as well, down for a third day. Lets talk about sterling. This is the intraday chart, midday was the central decision. It is just a bit lower, down 1 today 0. 1 today. Future rate increases will be gradual, that is why you see sterling, a bit, though pricing still signaling the next rate hike in november next year. The voting was unanimous. They have been talking about it since february this year. Some significant events in the last month, both of which could be positive, the budget and brexit talks, Prime Minister may going to brussels today. Hopefully we will learn more to move forward. Suffered a house of commons defeat last year. This is the euro against the dollar. The dollar the announcement came after 12 45, the euro went up, now it is up. The ecb policy is unchecked, it raised its forecast for next always significant at 1. 7 . Is that sufficient progress towards fulfilling its 2 inflation or the next few quarters . This is the spread in yields between the italian entering your german tenyear coming down over the year, coming down a little today. We are seeing a move into periphery bonds today. We saw yielded italy rise yields in italy rise about speculation with the election. That has concerned with political turbulence. This is the 10 year over the last year. Looks like quite a switch, the spread falling to 3. 4 on december 8. Back in april, it was 2. 31 . 1. 47 is where we are today. That is the market. Lets hear directly now from the bankers in their own words. The strong cyclical momentum in the syndicate been significant reduction give ground for greater confidence inflation will converge towards our inflation. What we see, the first Interest Rate increase will take place probably at the end of next year. Longtermium to pressure is unchanged and very low. Forecast,cb inflation we assume unchanged, shorter Interest Rates behind this inflation forecasts. I consider it an important priority to make sure inflation does not chronically undershoot the 2 objective, and i want to see it move up to 2 . We have paul gordon who leads the Central Banks team. Lets get to that forecast for 2020. That does not show concrete confidence in the ecbs ability to reach its inflation goal. Now, increasing competency but more confident and two months ago as mario draghi said in this press conference is not by the definition price stability. He wants under 2 . 81. 8 . But in the numbers there is some reason for optimism, core inflation excluding energy and food seeing a 1 in 2020. Lately we are seeing a gap between headline inflation and core inflation. That seems to be fading away over time. That is one reason why this is there, but he is coming back slowly. Mark forward guidance, the policy has been discussed in the wake of the big change in policy at the last meeting. Did we get any hints how the ecb might change its communication in the pivotal year that seems to be 2018 . Barely. The governing council seems to have cap their meeting short. There are a few topics that were not discuss which included the makeup of the qe next year. He did expect the Interest Rate will be more important for guidance going through 2018. On one level, that is selfevident, which may happen towards the end of next year. You have to look at something else, Interest Rates will be the key. But he is the sign of a gradual move away from these extraordinary crisis measures. Ef paul qe gets cut in half next year. Is there any sign this is baked in . The reduction was announced in october. This is well priced into the market. The fact the ecb did not make any changes whatsoever to that means you would not expect market reaction, which they did not. When i was looking for the euro 2017 inflation number, it fluctuated quite a lot after the decision and the conference. We have spoken a lot, then you got the answer of the Janet Yellens successor will be. What about mario draghi . With this forecast, he will be well gone by the time inflation ever get to the 2 target. Who might take over, and what will they do . We ask this all the time, and they swear they are not talking about it or it is too early. The gossip goes on behind the scenes. It is too early to make a decision. Given this is the gift of politicians is the prostrating that goes on. There are a lot of senior political positions that have to be negotiated. That is one factor. Another will be what kind of euro area economy we have in october 2019 when mario draghi steps down. If you are tightening by then, the bundesbank, germany is the biggest economy in the area, may even right kind of person, but nothing is guaranteed. Mark we had that wonderful story about the banks that , maybe the or them ecb will raise rates next year because of inflation, Financial Stability concerns. I am throwing a difficult one at you, but you wonder if they might change their view given todays events. Yeah. We will have to wait and see what they come out with. But their argument was the pressures will mount through 2018, and the ecb will be forced to change its Monetary Policy stance. They were talking about the end of 2018, so not too much to slip into 2019. But they were clearly pushing back against that kind of thinking today. Mark thanks a lot, good job telling us everything we needed to know about that. Reporting from thing for. From frankfurt. Vonnie emma chandra has first word news. Accusations that president have loaded with russia hurt the u. S. Political system. He said the claims against President Trump happen brought by political opponents to underline undermine his legitimacy. Janet yellen is not buying republican claims tax overhaul will lead to Stronger Economic growth. She said policymakers expect the cuts to have a modest and mostly shortterm effect. She went on to say that if he went to 4 growth it would be challenging. British Prime Minister theresa may has suffered a serious brexit diffie at the hands of her own party. Low motors lawmakers voted to. Ey change key legislation that raises questions whether may and get enough support for her vision of brexit. She is going to brussels for approve the it to breakthrough in talks she celebrity last night. In saudi arabia the government has unveiled a 19 billion Stimulus Program for private sector growth. It will be used to support Housing Construction and waivers to small businesses. The ministers tell bloomberg the government hopes the plan will create jobs. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am emma chandra. This is bloomberg. Vonnie futures in focus, the u. S. Dollar and gold both had a higher. This is bloomberg. Bloombergsrom headquarters in london, i am mark barton. Vonnie this is Bloomberg Markets. Time for futures and focus. We are looking at gold and the fomc meeting. Joining us is the Vice President at sinai hedge. Reacting they would be to bullish news, but if you take the fed out, we got a big drawdown in inventories and a big build in gasoline inventories, so why shouldnt oil be on the decline . Big gas inventories, it does make sense, but overall opec is producing low beyond be set levels. Eia stocks fell 1. 1 million barrels, now 40. 2 where we were last year, but we are still about 48 million above the fiveyear average, but markets. Ot reaction to the News InternationalEnergy Administration predicting increased u. S. Production will create a global oil surplus in the first half of 2018. That is what is weighing on the market. We had a large your record fund largeosition a very fund long position. Some people are heading for the door. If you look at the chart, there is a head and shoulders formation topic, potentially setting up. That is concerning here. 5580,eed to hold otherwise you can see a short downdraft. It comes to 5510, but 50 to 50 which is my target, that is what i am looking at. Resistance is near those highs. Vonnie i want to ask about gold, but we saw a sellout with cryptocurrencies. With the fomc we saw a nice rebound. Why is that . We have been under pressure coming into the fomc announcement, and it was as expected. We have gotten very oversold, so we needed the technical bounce. The language the fed is using really kind of indicating they are looking at three rate hikes for 2018 rather than for. The market had been expecting for rate hikes, so that is giving us an idea maybe the fed will not be as aggressive raising rates, so gold is behind in interest. Dollar, thethe dollar came down on that news as well. That also brings some buying interest into the gold market. Vonnie thank you so much, ted seifer from the hedge company. Mark time for a look at the business stories in the news right now. Airbus over boeing, Delta Airlines has agreed to buy 108 321 liners. They have a value of the 7 billion. Delta has committed to buying the boeing 737. Shares soaring today for this is really drugmaker, eliminated by 14,000 jobs after 25 of its workforce the company is struggling with 35 billion in debt. That is your latest Bloomberg Business flash. Coming up on Bloomberg Markets ahead, we look at disneyfox megadeal. How it will impact foxs quest to take control of sky. This is bloomberg. Vonnie this is Bloomberg Markets. I am vonnie quinn in new york. Mark at the European Headquarters in london, i am mark barton. Facing another make, disney buying most of the assets of fox. Will the deal be approved by regulators, what does it mean for foxs plan to take control of sky . Bob iger announced the government hurdles. Acknowledged the government hurdles. It will take some time. We think the proposition here is very proconsumer. Mark lets bring in media main in london. There have been media deals reported. Sky shares falling. What is going on, why . You would have thought on the data they would have gone up, but there is some concern whether disney is in the long term committed to buying all of sky because there was a statement they made to the Takeover Panel in the u. K. Today which was they dont think they are obliged to buy skype. Sky. Given when it comes to media deals, the next question is always about regulatory bodies and will the deal get through. Will this get past the regulators . It does have significant hurdles. We talked about the distribution angle, and the studios, but one area regulators will look at is the fox networks and the consolidation there. All of the regional sports. They have rights to the nfl, baseball, hockey. There are some considerations, and you can tell the companies are worried about this somewhat because of the break of these isls if regulators block it 2. 5 billion disney has to pay. Vonnie what is the overarching strategy for disney here . I can see what fox was trying to do and how beneficial it would be for rupert murdoch. With disney there are many different ways it is good strategy wise from hulu to the andios and theme parks theaters. What is the overarching strategy . We have a story on the terminal talking about disney becoming the walmart of hollywood. They are looking at distribution and international assets, sky being one and india, being important. This is about them bulking up in scale. Vonnie men what about direct to consumer, because they both have tech, they were both inching their way higher in a vast scale, does this help them in terms of the hulu assets, and how does comcast work . You have got netflix and amazon spending massively on comcast, and they are going direct to consumer. That is why fox is doing this deal because they know they cannot compete, and that is why it is important to see how disney plays this. They may have a better idea. Mark on the regulatory front and regulation round, given the fox takeover of sky was being looked at. Now disney is sort of behind fox potentially, is it more likely to go through . Some say with disney in the background, the u. K. Government might think it is ok to let fox buy sky. They dont have the necessary influence, but the election process will continue. Fox will have to buy skype. There is a long military progress that has to happen before disney can complete this deal. The u. K. Government has to deal with what is in front of it, fox still buying sky. Mark what is the scenario for the disney, fox deal is it was finalized today, what happens to James Murdoch . Some suggesting he was a potential replacement for bob iger. How is that . In the interesting statements from both fox and disney, no mention of James Murdoch despite him being the ceo of fox. How does someone take a senior position at disney, but no word. People think he might be in reserve as the regulatory process goes through because he is controversial. It might be wise to keep you in the background. Mark thank you. The media reporter and our media deal reporter. Dubbed then has been fixer in washington, and we will be talking taxes and more. This is bloomberg. From bloomberg World Headquarters in new york, i am vonnie quinn. Mark here from the city of london, i mark barton. Lets check on the first word news. Emma chandra has more from new york. , the International Energy agency says it will not be a happy new year for opec and its allies. The cartel has been trying to dry up the oil glut. New supplies from u. S. Shale may grow faster than demand next year. A surprise move from chinas central bank. They on expect elite raised for an costs borrowing costs. They lose to the rate in open Market Operations on its mediumterm Lending Facility by five basis points. It was a strong start to the Holiday Shopping season in the u. S. Retail sales rose that are than expected a tense of 1 in november. When you factor out results from car dealers, the increase was 1 . Retail categories showed gains. Of theon, senior members royal family and Prime Minister attended a Memorial Service for victims of the Grenfell Tower fire. People atd some 1500 st. Pauls cathedral. It has been six months since the fire engulfed the tower block. The blaze killed 71 people. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Vonnie it looked like the tax overhaul could be back in jeopardy. Senator Susan Collins and marco rubio have criticized the plan to cut taxes for the countrys top earners. Together their opposition to kill the bill. Joining us from washington with the latest is laura davidson, bloomberg congressional tax reporter. Marco rubio is the wildcard here. Explain why marco rubio is now objecting. Laura he feels strongly the Child Tax Credit should be refundable, a credit with people if they dont have an imf Tax Liability gets extra money in their pockets. Back when the bill was on the senate floor he added an amendment that would make it refundable and increased Corporate Tax rate to 21 . Leadership squashed the idea, but now we ended up in a place for the corporate rate is at 21 but for different reasons. Forower the top rate individuals data 37 from 38. 5 . He is quite upset and saying we can raise the corporate rate for high earners but we can do it for the Child Tax Credit . Yesterday he was meeting with leaders in the senate and complaining this was unacceptable and his vote might be squishy if this if he does activity once. Mark what about Susan Collins . Laura she is concerned on a couple of different issues. She doesnt want to see too much go to the wealthy. She wants to see the estate tax not fully go away. She wants to see the top rate for runners not come down too much. She also is concerned about the health care piece. The bill has the individual mandate repeal in it, which would basically remove the requirement for individuals who have Health Insurance to pay a fee. She agreed on the condition they would vote on an Alexander Murray plan that would stabilize Health Insurance markets. The house is not really on board with this idea. This could fall apart and it would cost her votes. Vonnie if either the senators dont get what they want, will they vote no . Do they really want to go against the party on this . Laura they are withholding your final decision. They say we want to see the final bill, everything in totality. If both were to say no, it is likely bob corker of tennessee could also be a no. Hes concerned about deficit issues that have not been addressed. If all three standard ground, the bill could fail. That is unlikely at this point but we will see how negotiations over the next 24 hours ago. We expect to see a plan and get the Conference Committee sign off on the final report, which cant be amended after that. Vonnie laura davidson, thank you. For more lets bring in jim served as White House Deputy chief of staff under president obama and Campaign Manager for obamas 2012 reelection. Among lots of other work is done in europe and here in the united they. From everything you know about politics, how deals get done, does the tax overhaul happen . It would happen today or tomorrow to get a scoring and be sent to the president. Jim i was chief of staff to the chairman syntax Committee Chairman of the Senate Tax Committee in a long time. There is always a couple of holdout senators, always somebody who wants something different. I would be stunned of the bill does not get done. I think you would see this what leaders do in the end via senators with problems. They have to lose all three of those members your reporter was just talking about and i think its unlikely. Vonnie i want to ask you about the impact of alabama. Gop andesult for the for everybody else. What happens now . Does the gop have to change its strategy for the midterms . Jim it is not an isolated event. They just lost the new jersey governors race, they lost the virginia governors race which is the most important swing state in the country, and they just lost a seat were no democrat had won a senate race in 25 years. Three very clear examples that something is going wrong here. I think what they will have to do is start the distance themselves in the president. He saw trumps numbers yesterday, 32 . The lowest a president has been since Richard Nixon and 1970s. If they dont figure out something, they will have a Midterm Election that we will not see forget. Nie what would you advise what would you do for the Senate Elections coming up . Does legislation need to get past, even if its unpopular . Jim you are exactly right. They have to do something. Donald trump has been president for a year and have no significant legislative achievement, which is why in the end it will do whatever it takes the past this tax bill. The first thing they have to do is get some big wins. The second is seen by part seem bipartisan for a second. What voters want why doug jones one in alabama if they want middleoftheroad politicians to work with both sides. So far they are not seeing that. There are opportunities for that. Infrastructure reform is a bipartisan issue. Trump says he will tackle that next year. That could be very helical. That got very helpful. They have to find a way to get trumps Approval Ratings back up. It is in the low 30s, it does not matter how good the candidates are, they will go down. Mark theresa may, the Prime Minister, suffered a big defeat yesterday in the house of commons. Mps voting for a meaningful say on the brexit outcome. Spell it out for me. Has this lesson the chances of a hard brexit or not . Jim i knew you were going to ask you this. The right question to ask. Last nights boat was disappointing. I advised the Prime Minister and i think she is doing exactly what she has to do. Her speech in florence last week was an incredibly important moment here. We finally have real clarity on the first art of this. What happened last night will make it more difficult but it will not change the outcome. The outcome is the country has decided it will leave exit. Brexit. She will get it done but it will be more difficult. In the end result will be the same. Mark how do you foresee the next stage of talks . Yes, she is clearly disappointed but she had a major breakthrough last friday when the eu said they were going to move ahead to the next round of talks. That should be rubberstamped tomorrow. How difficult a process do you foresee the trade part of the negotiations . Can a deal come out of this that satisfies both parties . Jim it will have to. I think this is the more difficult piece. It will be very difficult to satisfy all the various concerns here. In the end you saw this is merkel say there are outstanding issues mrs. Merkel say there are outstanding issues. Both sides have to get to yes. We need a definite time and we need to get this done. It last night make it more difficult . Yes, but you have parties on both sides that understand this will get done. I think you will see some quick moving. It is in both sides best interests to move quickly, especially after he got last weeks decision about what the cost is. Now you have a Prime Minister and an eu that want to move here. It does no one any political benefit to drag this thing out. Mark you have worked with Prime Minister theresa may. Some thought keeping the brexiteers in check was difficult, but yesterday proved remainerse of the that are also proving a difficult group to satisfy. Will may still be Prime Minister when this is done and dusted in march 2019 . Jim absolutely. What is clear is she has a mandate to do this and the difficult decisions she will have to make, if youre an aspiring Prime Minister, you dont want to make those decisions. She is the right person for the job than she will be there in 2019. Vonnie jim, strategist for decades. What is steve bannon thinking today . Is his strategy in jeopardy following roy moore, or does he double down with what hes trying to do for the midterms . Jim first of all hes an incompetent hack. Screw of all, you cant this up worse than they have screwed this up. They nominated the most unpopular and worst general election candidate in my lifetime. He double down and triple down on it. I understand he has a political ideology, but you will do real damage to your party in this is what you continue to do. As a democrat i hope he sticks around and does ever that he can because he is being incredibly helpful to the Democratic Party. Vonnie what is the democratic be . Y strategy going to it does not see the democrats are all the unified either. Jim i think we are unified. The great thing about donald trump is he unify the Democratic Party against him. One thing we have to do, the next step is we have way more enthusiastic voters that you have seen in all three elections in, including alabama. The thing we have not yet done is lay out a clear Economic Vision for where we want to take this country. Vonnie where does the vision line . . S it lay jim its a vision that unites the party and look at the average voters in the swing states and says, how do we make your life better . We are having to fight about should it be left or right . The fight should be does this make people lives better . If youre sitting in ohio, wisconsin and minnesota, does this materially change your life and make it better . It does not should it should not be about middle versus left. It should be about how we make peoples lives better. Everything we do that we have one president ial elections and when we did not do it we lost. Im not interested in the ideology of the fight and doesnt make people lives better. Vonnie thanks to jim messina, ceo of the messina group. Mark our stock of the hour. It is cutting 14,000 jobs. Why investors like the move. It is up by 14 . This is bloomberg. Mark from the city of london, i mark barton. Vonnie this is Bloomberg Markets. It is time for the stock of the hour. Soaring in tel aviv and the u. S. , shares of the Israeli Pharmaceutical Company teva. The Company Announced it is cutting 14,000 jobs. Abigail doolittle joins us to abigail last week we reported on the idea that would be cutting a number of jobs. The company has targeted cutting costs by 1. 5 billion to 2 billion. That is the first step. If you take a look at their sales growth, it has been on the decline for one of the big drugs for ms. The sales growth it has been dropping. This is a way to fight that drop. They are having challenges around generic pricing. We have this turnaround plant in play. Ceonew relatively new making good on what hes talking about doing. The shares are having a pretty positive reaction to the fact they are doing what they said they would do. Mark abigail, you love analyzing charts. This one stands out. Why is that . Abigail i love charts and i like this chart because it does stand out. A oneyear5750, chart. You see this big downtrend. Down 75 from 2015. We see in the area here for we have the blue markings, a bit of a stall. The sellers are getting tired. The buyers are tepidly stepping in. This from a technical standpoint is called the indoors inverse head and shoulders pattern. Push thisers can years convincingly about what above 20, they can close the gap and go higher. We now have the crosscutting pieces of the plant and place. The ceo is a Specialty Drug expert. At some point in the future if they talk about they are going to start rebuilding the already pipeline for growth, that could be something that could get investors excited for the longterm and perhaps the stock could recover some of those big losses. Abigail, thank you for that stock of the hour. Teva pharmaceuticals. Mark time for the Bloomberg Business flash. Cohen waseeks steve again start managing other peoples money. Plans aredge fund making investors wary. According to people familiar with the matter,s new fund would lock up capital for one to three years. Clients would be able to draw their money only by paying an extra fee. Is saudi led blockade showing up of the Financial Results of the countrys flagship airlines. Bloomberg spoke with the chief executive of qatar airways. Were still getting a profit warning. As a matter of fact we will have a negative year. Recently our bottom line. As a passenger numbers are concerned, we are hoping we will be close to the number of passengers we carried preblockade. Mark the saudis, uae, fall rain and egypt cut links with qatar in june. They claim the back extremist groups. It denies it. That is the latest Bloomberg Business flash. Vonnie we are watching shares of twitter. They are higher by about 5. 5 having gained 7. 3 intraday. The biggest move in many months. The shares in the past year have had similar or greater gains. They continue to rise the next day. It is not a thickly clear by the shares are rising so much. I want to point out Bloomberg News is among twitters video partners. Still ahead, succeeding sergio ermotti. He has any right hand man. This is bloomberg. Vonnie live from the york, im vonnie quinn. Mark this is Bloomberg Markets. A promotion at ubs is raising speculation over who will lead. Best will be the banks wealth unit. The quick rise has blessing look like a popular successor to chief executive sergio ermotti. Lets bring in our financial reporter. Just a simple question, just remind us about what that actually happened today. Pretty interesting story yesterday at night here in zurich. The head of ubss Wealth Management unit has been stepping down. We reported yesterday on ubs was having its christmas party, the biggest unit this is quite a significant move, he was succeeded by martin blessing. He joined ubs last year. He was heading the swiss unit. The reshuffle was kind of accompanied by other changes of the executive board. A new chief operating officer and also a new head of the swiss unit. This was yesterday raising further speculation about who will be the next ceo down the road. This is what we are understanding as of now that blessing is largely to be seen as a top candidate for the job. Not so much experience with Wealth Management, but wellregarded within the bank. This is what we have an understanding so far. Mark what is going on with swiss Private Banking right now . We had musical chairs. What is behind all this sudden movement . You know zurich. This other movement announced a couple of weeks ago, the ceo stepped down and now there is speculation that he might be a possible candidate. We have not had anything confirmed. He could be a good fit for the job. It will be more speculation. On the other hand, they say they stage and at this we have not said this is just an interim solution. We have no reason at this point in time to speculate further. Mark great job. See you soon. Bloombergs finance reporter in zurich. Changes at the top and swiss banking. Coming up, following stocks. Less than 35 minutes away from the thursdays session. It has been a day dominated by central bank moves. Bank of england, European Central bank, the Swiss National bank, the norwegian central bank. Stocks are lower today. Parse comments from draghi. Sterling down against the dollar. We have to raise Interest Rates and bureau trading lower against euro trading lower against the pound. 35 minutes away from the end of thursdays session. This is bloomberg. York,it is 11 00 in new midnight in hong kong. 30 minutes left in the trading day in europe. From the brady European Headquarters in the city of london, im mark barton. Vonnie this is the european close on Bloomberg Markets. Mark here are the top stories from the bloomberg and around the world. Another year of solid returns for investors. Pimco says barring a zombie apocalypse, the good times should keep rolling. Will hear from disney is about to become a bigger force in hollywood. It is reaching a 52 billion deal that takes over fox assets. What is that mean for the future of moviemaking . Vladimir Putin Holding his annual news conference. Has the that this Business Climate changed in russia . We speak