Not a 3 or 4 economy. Maybe this dollar should not be as strong as it is now. Scarlet and opec has a deal to curb oil production, but they have got a good deal more to do. Were looking to do better. We are hoping to be able to get to scarlet it is all straight ahead on bloomberg best. Hello and welcome. Im scarlet fu. This is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. The week began with change at the top in italy after voters rejected their Prime Ministers proposal for political reform. Italian Prime Minister matteo renzi says he would quit in the early hours of this morning after losing a referendum. He called to push constitutional changes. I think the expectation that the result of this referendum would have a disruptive impact on italy and possibly even on the eurozone were grossly exaggerated, frankly. It was not comparable to the brexit referendum or even to the vote in the united states, which were indeed signaling much more fundamental political change. What would you be asking of the new government of italy . Basically that the new government must actually continue the process of reform, no doubt. We have significant public debt. It is probably today not in such a difficult situation as in 1, because you not forget because do not forget. 50 of the debt was in the hand of international investors. It is not so huge like in 2011 , but they have to continue the process of reform. And to add a reform on the recovery, that absolutely must be completed. President elect donald trump turning up the heat on boeing. In a tweet, donald trump said boeing is building a brandnew 747 air force one for future president s. Costs are out of control. More than 4 billion. Cancel order. What might have brought this about . Why did donald trump tweet this this morning and where did this 4 billion come from . I am not sure where the 4 billion came from. Lets get this out of the way first. Where this may have come from, why this is front in mind for donald trump, could be a Washington Post article published last night that talked about 125 billion worth of administrative lets call it waste at the pentagon, which is a large portion of the defense budget, which is 600 billion. I think this is interesting. Donald trump, he is returning to some of the campaign discussion he had about getting rid of waste at the pentagon. So it will not just be boeing that will be in the crosshairs on that. There is a whole defense establishment and a lot more money and other programs that could be saved. Scarlet softbanks ceo Masayoshi Son visited the trump tower today. Donald trump has now tweeted that Masayoshi Son has agreed to invest 50 billion in the u. S. Towards businesses and 50,000 new jobs. Then he went on to make a comment about how he would never have done this if the trump ticket not won the election. We do not have the details. He pointed to deregulation as being behind this. The deregulation expected under a trump administration. But we do not really know what the whole backstory here is. He is trying to say that the act his is taking with just very election is going to create jobs and new investment in the u. S. Economy, and he is trying to show cause and effect. Mark big stories out of the Banking Sector today. The eu has find j. P. Morgan chase a total of 521 million for collusion. The e. U. Says the banks conspired to rig the arrival rate. Meanwhile, more cost cuts coming at credit suisse. Playing to cut an additional 1 billion in expenses. How may times will mr. Thiam have to adjust his turnaround plan . This is number two. Yes. He laid it out in october 2015 and came back in march with more aggressive cuts. Here again, saying the markets are not exactly cooperating with our push to increase revenue, so we are going to have to be more aggressive on the cost cuts. Mark thiam, if he has more time, will he be a burden will he be able to deliver more on cost costs than worrying about Revenue Growth . Michael i think you have some skepticism from the outset when they laid out this plan a year ago. Some analysts saying they were looking at optimistic growth assumptions here, and you are seeing the bank come back on those and walk back on those a little bit given the market environment. We also had headlines that there is a settlement in the fixing probe. How are those fines how do they measure up with what is expected . How severe are they . Michael the fines are not the biggest we have seen, but they certainly are of reasonable size. The banks have said that they may appeal these. They may fight these. Obviously, jpmorgan and credit agricole, their statement were perhaps stronger giving hsbcs fine was lower. So this may not be the end of the story. There may be some appeals. The ecb is leaving its deposit facility rate unchanged. Negative. 4 , no surprise. It is also leaving its refinancing rate unchanged at 0 . The ecb will buy 80 billion euros of assets a month until march. They will keep going until april. Then they will go at 60 billion euros until december. Alix the ecb does say if the outlook becomes less favorable, they will increase the programs and qe will run longer if needed. Is this a dovish take . Or a hawkish ease . Good question. 60 is certainly less than 80. I see this as tapering to the extent that it is open ended. Yes, there is some dovish elements to it. They have put in language in there to increase the run rate, increase the duration. If the situation deteriorates. Clearly, draghi has turned this super tank qe towards the exit by cutting the run rate down. I see it more as a hawkish move. You know, confidence on their side that they are reaching a reaching their goals. Although we look at the average inflation rates that they are forecasting to 2014. It is only 2. 5 . I really see this as backing away a little bit from their 2 target. 1. 5 is the new 2 . The ecb is said to refuse italian bank monte dei paschis request for more time to recapitalize. Shares plunged. Jonathan the question everyone asking is why . Alessandro we can imagine the ecb did not see any advantage in giving monte dei paschi more time. The recapitalization plan has been in the cards for a long time. Private investors have not stepped up. There is not a huge likelihood actually a very small likelihood someone will step in and the next 20 days, given the instability there is right now in italy. Which is very difficult if it will clear by the 20th of january. Italian officials telling bloomberg the government is finalizing a decree law for the rescue of the bank. Bondholders will be affected and the measure, shares of the bank tumbling today. The italian government, this caretaker government, if you will, is moving quite rapidly after the decision by the ecb not to grant the Bank Additional time to put together this capital increase. So they are trying to put together a decree, obviously, that would have to be approved by the italian government. That would essentially provide a rescue for the bank. We do not have a lot of details yet. We do know that obviously, bondholders of the bank are going to be affected. Presumably, the Government Strategy is to soften the potential blow for retail investors. Some of whom have claimed that they were not provided sufficient information to make their Investment Choices in the past in buying securities. We do not, however, know the mechanism that italy is going to use to try and engineer this rescue. Scarlet still ahead on bloomberg best, much more on Global Politics with developments rocking governments from austria to new zealand. Plus, markets seem to like the prospect of a donald Trump Presidency. Some prominent investors tell us how long they think the honeymoon will last. And up next, more of the weeks top business stories. Vladimir putin cuts and big oil deal with glencore. It is starting to chip away at the notion that russia is isolated. Scarlet this is bloomberg. Scarlet this is bloomberg best. I am scarlet fu. Lets continue our global tour of the weeks top business stories with yet another tweet from donald trump that struck a nerve in beijing. Donald trump has taken on china via social media, hitting back at criticism of his decision to take a phone call from the president of taiwan. He has been hitting back at china over what he sees as the devaluation of the yuan, what he sees as taxes on u. S. Imports to china and over the south china sea. U. N. Ve seen the offshore versus the dollar traded slightly lower following these tweets. The question really is whether this is more empty rhetoric from trump or whether he will be taking a more confrontational line with china. Very much the word out of beijing is he is not president yet. And also there is a sense that perhaps that he has been badly advised. They are doing everything they can to play this out. Does this show the need for president elect donald trump to nominate a secretary of state as soon as possible who can, a, advise him and, b, explain his thinking to foreign governments . John that is a very good question. I think yes on the one hand. People are keen for him to appoint a secretary of state, someone who can decode trump for the rest of the world. Then the question that comes from that is even if you did get an articulate secretary of state, the question would still be out there to what extent could you believe what the secretary of state says . You have the trade balance widening out in october, coming at 42. 6 billion. In fact, the september revision was revised slightly better at 36. 2 billion. But that trade deficit continuing to widen. There seems to be an escalation between china in the one hand and the Incoming Trump administration on the other. Yesterday, china came up more powerfully. Is this escalating . Probably not. They are probably feeling each other out like two boxers at the beginning of a match, trying to see where the others strengths and weaknesses lie. Interestingly, yesterday, we were talking about how trump had the whole idea of china manipulating currency backwards. Trying to manipulate it stronger, not weaker. Look at what happened in the trade data today. Our trade balance with china is actually lower on a yearoveryear basis. This is the first time in many years this has happened. I have a chart that shows we are starting to see the trade balance go in the other direction. And the American People have that in mind. Politically, it is a good move for him. Economically, it doesnt square with the facts right now. The stock link connecting hong kong and shenzhen finally giving direct investors access to more than 800 chinese stocks. From a Foreign Investors perspective, shenzhen is the story of growth. If we look at next years growth expectations, we are expecting the average citizen to grow about 20 , versus shanghai roughly flat. That really drives the momentum for the stock. Definitely, there is more of a small cap, which probably a foreign investor would shy away. I guess the most significant change is really the removal of the overall quota. That quota, initially, was put there because there was a pilot, and there was not a clear certainty as to whether it would work, whether it would create unintended consequences. I think the removal of the quota is really the manifestation of a great confidence that this program is going to be great, not only for investors to be able to trade freely and easily, but at the same time allow the Risk Management to work. French Drugmaker Sanofi is reportedly preparing a bid for switzerlands actelion, potentially challenging a move by by u. S. Healthcare giant Johnson Johnson to acquire europes largest biotechnology firm. Why would sanofi be stepping in now . It seemed like Johnson Johnson was far along in the process to actelion. Ian we think this is the case. We obviously report this kind of thing 10 days ago. We think those two companies are still in discussion. I think potential buyers, sanofi the most obvious, are trying to line up around the edges trying to work out, does this fall apart . Potentially does actelion say j j,have spoke with the looked at what they had to offer and it is not quite what we want, and they will see if other people want to bid. 250 is the news that Bloomberg News says that j j is going to pay. Who can pay more . What is the knockout figure . Its a good question. I dont know there is a knockout figure. There is this unusual set of circumstances where you do not know. Is it about money . Is it something completely different, like him keeping a portion of r d or him deciding that he loves the company and will keep it and no one will buy it for any price . The u. S. High court upheld an insidertrading conviction. It is a ruling that will make it easier for prosecutors to bring cases against people on wall street. Lets start with what the court decided. What were they asked to decide on and how did they rule . The issue was whether somebody can be convicted of Insider Trading when the insider, the person who provided the tip, did not get anything of value for it. Whether the insider was just giving it to a friend or relative as a gift, that was enough to support a trading conviction. The Supreme Court said yes, it is. David what does this mean for regulators and prosecutors to go after those they think are guilty of Insider Trading . It wont revive any cases where courts have thrown out convictions, such as in the newman case. But certainly, it puts the law back to where a lot of people thought it was, at least in one key aspect. It will help revive a crackdown. At ts boss defends his companys 85 billion deal for time warner. He says it will challenge cable and hasten the development of 5g networks. Stephenson testified today before a Senate Judiciary subcommittee on competition. For your constituents, we believe the benefits are substantial. David what power does the subcommittee have . They could raise issues or concerns that the regulators might get into, but the reality is this is more of a show. It is a little theater, if you will. I do not think anyone in the market really believes this is going to get blocked, despite what thencandidate trump said in october, that hes going to block this deal. Ive talked to the bankers and lawyers and the people around this deal. I talked to the investors. None of them really feel like this is going to get blocked. I would say it is a 80 , 90 likelihood it is going to go through. That is how they view this. Chinas exports rebounded in november. Demand held up. That boosted competitiveness. And surprise numbers. The one to focus on is 0. 1 . It does not sound too glamorous. That is the export number increase for november year on year. The reason it is important is it compares to a drop of 7. 3 the previous month in october. Prior to that, exports were down 10 . So that 0. 1 is looking very healthy indeed. It is a sign the Global Economy is healing. We have had a really weak period for industrial production. Of course, china stands at the center of the worlds factory system. It is a sign that things are looking better. Russia sells an 11 billion stake in its Largest Oil Producer rosneft to glencore. Vladimir putin went on national tv to tout the deal as one of the largest acquisitions in the oil and gas sector in the world in 2016. What is in it for russia . What is in it for glencore . I think in terms of glencore, what is important to remember is this is a company that was founded on this kind of trading, to some extent. In recent years, it has lost out on pole position, so this is a big signal for glencore that it now owns russian oil. Or at least the International Trading of russian oil. For russia itself, it is obviously a huge win for them in terms of getting Big International names back into the sector. It gives them an injection of Foreign Exchange to the point where they do not have to sell off the ruble. And it is starting to chip away at this notion that russia is isolated. These are really big names to have on your side. Scarlet this is bloomberg best. Im scarlet fu. Oil prices began the week at a 16month high after opec members made a deal to curb production. But the rally stalled on the report that output rose in november to record levels, as well as doubts that nonopec nations would agree to the cuts. Bloombergs yousef gamal eldin spoke to officials from several opec countries about challenges ahead in exclusive interviews at the most influential summit in abu dhabi. Yousef if Oil Prices Continue to decline, would opec act again . Minister al mazrouei i think it is premature to answer that question. We have studied the level of production cuts needed for the market recovery. I think it will be enough to achieve the market balance. If we remove the 1. 8 Million Barrels per day, i dont think the market will stay at the lows of the average of the 2016. If we truly achieve the 1. 8 Million Barrels. Yousef are you confident russia is going to deliver its part of the promise . Minister al mazrouei we are very confident. Yousef if you look at the track record, it has not been very accurate. Minister al mazrouei i think, historically, we have not done what we have done. So opecs position to lead the market first, to balance. And then react when the market is about to balance. This is also a new phenomenon. So i think were looking at a new world. We are looking at a new dynamic. Yousef this is a scenario that you probably dont really want to have to deal with. You make this move, take oil out of the system, demand is weaker, shale recovers faster, oil price comes back down. Does opec flex its muscle even further and followup with further cuts . Minister ibe kachikwu it is hard to predict. We are looking at six months outlook position. Lets see what happens. Nothing too dramatic is going to happen in six months. Yousef have you seen what has happened in november . Minister ibe kachikwu but that is a lot of hedging. In terms of real effect, youre going to have some of that in shale. If all of us continue to focus on the issue, which is cutting the volume, expanding pricing, working collaboratively with nonopec members, we will get there. It is not as predictable as it used to be. We are going to just keep watching the envelope as we we are going to go. Yousef what is that going to do to your outlook for oil price in the first half of 2017 . It is around 55 . Minister ibe kachikwu we are hoping to do better. Were hoping to get towards 60 towards the later part of quarter one. The momentum we have seen today keeps up and if parties remain disciplined to the cause they have committed. Scarlet coming up on bloomberg best, a look back at an eventful week in Global Politics. Plus, some renowned investors look ahead to a donald Trump Presidency and what it could mean for financial markets. The three industries you would expect Immediate Reaction would be the financial sector, the defense sector, and the bioscience sector. Scarlet this is bloomberg. Guy i understand that Donald TrumpsTransition Team has requested that you and the president elect hold a conversation shortly. When is not going to happen and what do you expect to talk to him about . President schneideramman it is going to happen within the next couple of days. And the message from my side will be, my dear president elect, please think about the small and midsized countries of this globe. Markets, and an open market philosophy based in the wto as an opportunity. And i hope that trump will realize the opportunity to discuss about the need of the smaller and the might of the future economies. I am looking forward to speaking to him. Scarlet that was switzerlands president johann schneideramman speaking with guy johnson about donald trump. We discuss the outlook for Global Financial markets in a donald Trump Presidency. The weeks since have seen a surge in equities and a stronger dollar. Bill gross doesnt think the markets are getting everything right when it comes to the longerterm picture. Bill what they are getting wrong in the longer term is there are a lot of negatives in terms of antiglobalization policy. Many of them are antitrade, to a certain extent. Many of them promote a strong dollar, which sounds good, but ultimately puts u. S. Corporations at a disadvantage. This negatives, as opposed to positives, and none of it will come to fruition with a hundred percent with 100 probability. Of course, the devil remains in the details. What would cause the market to reassess and start pricing in the longterm negative effects of that stronger dollar, for instance . What would be the catalyst . Bill i dont think anything in the shortterm, right . Because he has not even been sworn in. That takes place in january. I think perhaps some statements by some of his appointees in the cabinet, perhaps something that the market interprets negatively in terms of capital, but for the moment, smooth sailing. I would say, though, that we sailed upwards in terms of in the green by 5 , 6 , 7 on most stocks in the market, and one could argue that much of the positives have been built in. I think, for instance, that their claims for 3 or 4 real growth are facetious. Specious. The old standard, which was 10 or 20 years ago, is really being affected by structural factors that cant be dismissed. Im looking for a 2 economy, not a 3 or 4 economy to the extent investors begin to agree with me, then perhaps there their expectations for Profit Growth are diminished to some extent. Luke the last 5, 6 years have been characterized by a complete consensus between governments and central banks, within countries and across the globe. Everybody has been following the same playbook, the same set of policies. And the mixture of first to brexit, now trump, maybe italy, certainly other moves in europe, suggests a situation where the consensus might break down. The consensus breaking down would be good for some markets and bad for other markets. And we might get a break down in high correlations we have had. And we might get Something Interesting in the active management environment. So when you look at the broad asset classes, which one would benefit from a breakdown in correlation . Luke you have to look at it regionally rather than particularly by asset class. Clearly, if trump comes up with a set of policies that are cutting tax rates aggressively in the u. S. , increasing tariffs into the u. S. , that are about getting people to repatriate cash in the u. S. , about making it easier for privatesector infrastructure building, i would say that Public Sector infrastructure always takes too long to matter in the year. All of those things would be bullish u. S. Equities, are there steepening in the further steepening in the yield curve, bullish for the u. S. Dollar. You have been quite positive on the donald trump victory. You are saying he is down to earth, saying he will bring the American Economy back to its feet. Doesnt that imply a stronger dollar, even if he goes on a fiscal spending spree . How is he going to weaken the dollar . We are at record highs on the bloomberg dollar index. I think, yes, in the short term, the dollar will get stronger. But in the mediumtolongerterm, i think the heavy spending that he will embark on, and spending not only on infrastructure, but also defense, will result in people starting to think that maybe this dollar should not be as strong as it is now. And we will probably see a weaker dollar. Of course, you must remember that trumps objective is to help american industry. When does that mean . It means they have to export. In order to export, you need a competitive dollar. I think down the road we will see a weaker dollar. Do you think donald trump has overpromised and is there a risk of under delivery . Mike well, one person is not capable of delivering. You have to be able to lead to make that happen. I think the reaction to the markets is first, in the united states, that it is over. After two years, there is just a relief that it is over, so that is your first reaction. I think the other reaction is giving more freedom to the companies. And so the three industries where you would expect Immediate Reaction would be the financial sector, defense sector, and bioscience sector. And all those have moved a great deal in just a few weeks. Tell me your view and vision as you look at the world, travel the world, the next big set piece of change in economies and markets. Mike i think the next change here is how are we going to create jobs. In a democracy, if the majority do not feel they have a future, there will be a change in government, so we have a reeducation, a substantial reeducation effort in front of us in making sure peoples skills match the jobs of the future, and sometimes you get these imbalances. There is not any major industry today in the world that isnt undergoing some disruption, starting with agriculture. The Media Business was also a focus of conversation this week. David weston sat down with chief executives at the ubs global media and Communications Conference in new york, starting with les moonves of cbs. David to accomplish everything you would like cbs to accomplish, can you do it without owning some distribution . We have seen how disney is trying to force distribution over the top. Do you need to have an ownership interest in some of these distribution platforms . Les i dont think so necessarily. We are small when you compare us to disney or comcast. We are primarily a premium content company. Our job is to do great content for cbs, showtime, the cw, latenight sports, etc. If we do that, all of the distributors will meet us. They will pay us for what we are offering. And we do not necessarily need to be in distribution. David for example, at t said they needed time warner, so they went and bought the thing. At some point, you have distributors saying we need you, cbs, so badly we dont want to do a license deal. We want to buy you. Les im sure there are distributors who want to do that right away. As you know, we are a controlled company, so that is more difficult, but i can imagine there are plenty of people out there, especially when you see at t paying a lot of money for time warner, that a company like ours would be very valuable in the open market. Mark we have seen a really astonishing surge in subscriptions, particularly digital subscriptions, and good news on the print front as well. Not just headline audiences, but people willing to pay for the kind of journalism we do, which we like to think of as accurate, thoughtful, delivered without fear or favor. It would appear the public appetite for that has grown. David can you quantify that a bit . Mark we have seen 10 times as many net subscribers as the same week previous year. We guided the market to 100,000 net subscribers, so more than twice as many as q4 last year, well over 200,000 already and we are nowhere near the end of the quarter. david this comes amidst an overall trend. Will you be adding Digital Subscribers for some years now . Mark and the rate has been accelerating. Normally with the subscription model, you would expect an initial growth spurt, followed by plateauing. We have actually seen a rather attractive curve, where it has been accelerating for essentially two years now, and our belief now, knowing what we know and thinking about our opportunity in america and around the world, is we can grow substantially further. I dont think it is unrealistic to imagine 10 million digital Digital Subscribers or more, ultimately. Scarlet you are watching bloomberg best. I am scarlet fu. Matteo renzis resignation as Prime Minister of italy was one of many important Political Developments around the world this week. Lets begin our roundup with unexpected news that moved markets in new zealand. The new Zealand Dollar has fallen after the countrys Prime Minister, john key, announced his surprise resignation a short time ago. Why is he quitting . It was a bolt out of the blue. It was. He gave a number of reasons. Family reasons being one of the reasons he gave, saying its time to spend more time at home, but he also says he has nothing left in the tank after eight years, and a good leader knows when it is time to go, and it is time to go. But he has a long history of success, john key. He was the former head of Global Exchange for merrill lynch. Along with bill english, he has made new zealands economy one of the fastest in the world and saw the country through the financial crisis and devastating earthquakes. As you can see, the new Zealand Dollar sank on the news, everybody caught by surprise. John key going out on his own terms and on top. European populism has been an issue across many countries, many different elections. That rightwing populist movement has suffered a setback with Alexander Van der bellen set to be austrias next president. He is a green party backed candidate, running as an independent. He defeated the Freedom Party is Freedom Partys norbert hofer. Do you see this as a turning point . That a proeuropean candidate can win, and maybe it is not all about rightwing populist movements sweeping over the continent . No, in short. I think this is the limit to populism in a core european state. It is very much around memories of the 1930s and 1940s. I think the extreme right wing are going to struggle to get into power, even in places like austria that have a record of skirting with that. What about france . France is a slightly different story. Because Marine Le Pens agenda has shifted, actually, towards more social policies like Larger Consumer tax giveaways and benefit giveaways. I think there is a risk, that because she has moved away from the more flowery rhetoric, if i can put it that way, and copying some of trumps electoral strategies that she could do very well in the second poll. The french Prime Minister, manuel valls, has confirmed he will run for the presidency next year. He will resign as Prime Minister today in order to prepare for the tworound primary in january. The current president ial front runners are Marine Le Pen and the republican, francois fillon. Valls vowed to unite the left. Can he . Can he unite the left in a way that takes on the right . Unfortunately, probably not. He cannot unite the left because there is a hard left in france. The question is whether he will be the candidate for the socialists. He has a good chance. In one way, i find it reassuring that at least the sort of leading candidate of the centerleft is a reformer. As we have on the centerright, also a reformer. France seems to be yearning for reform, but the centerleft field seems to be splintered. Valls and then the independent, probably the centerleft does not have much of a chance to make it into the final runoff off of the president ial election anyway. Mark german chancellor Angela Merkel was reelected as the Christian Democratic Union chairwoman with 89. 5 support as the delegates. It is the lowest level support she has received in her chancellorship. At thein Germany National convention. Matt it is not a great result for her. I mean, to get less than 90 for the First Time Since she has been a sitting chancellor at a time when she has absolutely no opponent is a very poor result. On the other hand, she is trying to flank out to the right and try and appease members of her party who are very angry about her decision to let in so many refugees. She definitely rolled back her opendoor immigration policy. She also went on record as saying she does not think that muslim women should be allowed to wear a full face veil. She also talked about Corporate Tax dodgers that germans have long seen as a problem. Going to other places to do business. Obviously, there was that story about the e. U. Telling the irish how to deal with their tax policy. The germans are concerned they are losing a lot of money. And the cdu is concerned about a balanced budget. They had one for three years in a row. One of their pledges is to keep that as a typical cdu party concern. It is interesting at a time when you have negative Interest Rates to be that worried about a balanced budget. There were protests at the u. K. Supreme court as judges heard the governments appeal against a lawsuit which is attempting to force it to pass a new law before officially starting britains exit from the european union. The government, which lost in the lower court last month, is trying to avoid that to start the process in march. Francine what are the chances of the Supreme Court overturning what we heard from the high court . Jo i think the chances are slim that the Supreme Court will overturn the high court ruling. Francine do we believe them when they say this is a purely legal case, not political . Do we believe them . Jo yes, the case will be decided on the legality and the correct procedure to trigger article 50. Tom how is the Prime Minister going . Doing . Is the honeymoon over . Thats what we call it in america. How is she doing going into the new year . Jo in relation to brexit, i think she has a couple of concerns. Until a month ago, the brexit story was entirely hers. She controlled the narrative when she said brexit means brexit and she has the power to trigger article 50. A month ago, that changed with the high court decision. I think it is likely to change again when the u. K. Supreme court rules, so there is a counter narrative building up. We will see a different vision of how brexit can be achieved. We then have a question of where we end up. Where it cant be the status quo. I also do not think the socalled hard brexit is possible. There has to be some shifting of ground and some compromise. And we do not know, as of yet, what that compromise will look like. South koreas parliament has voted in favor of impeaching President Park. What does this exactly mean for the presidency . It means that the president , park geunhye, will be or has been suspended from duties, and Prime Minister hwang kyoahn takes over as interim leader of the country. Park geunhye has said she respects the voice of the parliament and the people. The motion goes to the constitutional court, and six out of nine judges need to approve the motion to go forward. If that happens and they have 180 days to do that if that happens, president ial elections will be held within 60 days. This whole process, if you take it out to the end, could take as much as eight months, but much think it will be much shorter than that. But if it gets thrown out by the constitutional court, we could see President Park geunhye come back, and we could also see once again a big swelling of public anger towards park geunhye and really what we see at the heart of the matter which is what they see as the very close ties between big business and government and the anger it has fueled in the country. This is rrg go on the bloomberg. You have bond proxies like utilities, telecoms, are in the lower lefthand quadrant there in the lagging quadrant. They have been prized for defensive features and dividend payouts. Investors have not been buying those. Theyre looking at cyclical stocks. Deutsche bank says anyone who has not bought six calls have cyclicals have probably missed their timing. Matt we have a function here that shows a possible reaction to the euro, or a range of reactions you could look for in the euro after the ecb decision tomorrow. This is the ecmi screen on the bloomberg. You can put any asset class into this yellow box here, and then see what the range of possible movements will be after the decision. The green line is the upper bound average over the last year, the red line is the lower bound average over the last year. Scarlet there are roughly 30,000 functions on the bloomberg, and we always enjoy showing you our favorites. Maybe they will become your favorite. Here is another function you will find useful. It is quic. It will take you to our quick takes. You can get asked, contact content, and insight into timely topics. Here is a quick take that explores the recent phenomenon of fake news. Of pretty crazy idea. Manyat was one of the quick takes on bloomberg. You can also find him at bloomberg. Com, as long as as well as the other news and analysis. That does it for bloomberg best this week. Thanks for watching. Im scarlet fu. This is bloomberg. Doing the deal, Oil Producers agree to historic reduction cuts with saudi arabia willing to do quote, whatever it takes. A changing of the guard in new zealand. Ill english is to be the new Prime Minister. Decades of diplomacy may be changed with donald trump saying the one china policy must be tied to trade. The president elect pick for secretary of state may stumble ties to the kremlin. This is daybreak asia