Nie abigail little Abigail Doolittle is here with us. We have the dow and s p trading down. The nasdaq is slightly in the green. Helping the nasdaq today is technology. This is the top sector within the s p 500 index. Worst sector in helping explain why the dow and s p are lower, energy. This is the big drag. We see what is behind this decline in the energy sector. Snapping a threeday winning streak, some of this could be speculation on drilling activity. Something that some investors and strategists thought could happen for some time. We are looking at a small risk off for the financial markets. The gauge showing there is a little less complacency. Theave the dollar versus yen. Themele bit of a risk off. It did not happen on friday. To thatcame close marketing. The factresting is technician on friday afternoon told Bloomberg News he thinks the dow will not hit 20,000. Mark we will see if he is correct. Volatility fell here for five consecutive days. The stoxx 600 is down. Is an index that has been rallying. 10 days of gains. If we finish tomorrow higher, that will be the best run ever, nine days of record highs. The pound is a big factor when constituents. Se hopes lifting commodities as well. Look at today. That was the october 11th low when the pound against the dollar fell. It is all about the dollar. In our interview today or she said she has not moved towards a hard brexit thet the comments government struggles to distance itself from the brexit chat. Are down to a 10 week low. Itsds is slowly losing shackles. Has cut its stake. Now owns 6. 3 . In 2000 eight, slowly, the government getting rid of lloyds. First lets check on word news. The war veteran accused of killing five people in Fort Lauderdale makes his First Court Appearance today. If convicted, santee ago has spoken to he faces the Death Penalty if convicted. Police have arrested nine people after an attack by a palestinian truck driver. He killed four people. A spokesperson says five detained are the relatives. Boris johnson is looking to build ties to the Incoming Trump administration. He traveled to washington to talk with congressional leaders. Commuters had to find other ways to get to work after underground workers went on a strike. Global news 24 hours a day powered by more than 2600 journalists and analysts. Vonnie the Chevrolet Bolt was named car of the year at the north American Auto show taking place in detroit. Mark weston talked to mary mary barra. Asked what she expects from the president elect. A we are looking for it to ,trengthen the country strengthen business performance. Also looking for reform. Made people need to understand, this is a complex business. Those were decisions made a few years ago. It is also complex in terms of the supply chain. Would it help gm or hurt gm . It depends on how the world set is put together. Our strategy is to build where we sell. Contenthe highest eu in of all the manufacturers. We have a lot of jobs here. Make sure itto recognizes the investment we have made in this country. Where does that project sit now within gm . Everyone is announcing some sort of autonomous adventure. We feel good about where we are. We have vehicles getting realworld experience. It is not just about miles traveled. It is about experiencing the different situations. A lot of things that come into the roadway. Our vehicles are learning a lot. You will see Significant Movement from us this year. You talked about changing the model where you are selling cars to provide a service. We believe it will start and typevice, in a rideshare of environment. In todays business, we are excited about what we launched with cadillac. We have an opportunity for people who want to drive that the series car on the weekend but need the functionality of an escalade. 2016 could not possibly match that, in fact, it need it. Can you beat the record again . We think we will have another strong year. At general motors, we are looking at continuing to improve. Carrie that into 2017 on top of traverse and terrain. You have to have great product. You also have to have the money and be willing to part with it. What are the ones most important to you . Is it wages . Look all of the trends, we at the indicators. One topic discussed is wages. Numbers came in on friday. You are a big employer. Are you seeing wages go up . They are going up as expected. Important we manage that and understand where we fit. That ofud of the fact the 100,000 jobs, we have good paying jobs that allow people to live a good life. That was mary barra. U. S. Prosecutors are planning to charge volkswagen executives based in germany over the d so cheating scandal. A person familiar with the declined to specify when those charges may be filed, told bloomberg the charges are being prepared. Schmidt, isman, mr. Conspiracy and violation of the Clean Air Act has been arrested in miami. This is bloomberg. This is bloomberg markets. Lets head to the markets desk. Lots of activity in the retail space. Losing activity as you can see. Urban outfitters and five below are both lower. Urban outfitters down about 1 . Talked about Gross Margins of being under pressure. The biggest loser is five below, down 4. 5 . Down that much. This after the Company Raised the fullyear view. They kept comps sales the same and left the high and of the earning range the haiyan d of the earning range the same. End of the earning range the same. This is a longerterm chart of lululemon. Lots of volatility and uncertainty. Death crosses. Dip down 15 . A another one that led to a 30 decline. They put in a death cross recently last year, suggesting we could see more declines for lululemon. Vonnie thank you. Mark, what do you have . Mark a big day for autos in europe. Moneyhrysler will invest into making new jeep models. Trump praised the move, but these models had been planned, many had been awaiting where they would be built. Could impact the expansion plan. More on the trump squeeze ahead. Toyota the latest target of trump tweets. This is bloomberg. Is bloomberg markets. Donald trump took aim at toyota on twitter, saying there is no way they can build a plant in for theo build corollas u. S. Without paying a border tax. It is a special guest, the president of north america toyota. We will get to the corolla question, but first the camry. There is an empty stage without a camry. We are going to unveil the eighth generation of camry. It is an important vehicle for us. Why is it so important for you . There has been a shift towards light purpose. 2. 5 million midsized cars were sold last year. David huge volume, but it is not as profitable. It depends on the vehicle. David you made news with the president elect with the plant to build corollas in mexico. Thee build corollas in u. S. , in mississippi. We made decisions six years ago to realign our manufacturing footprint in the u. S. We can build razr fours in 4s in canada. A division where you build the suvs and trucks in the United States and more of the compact cars down in mexico . There are some that want to build the small cars and others want to build more fullsize vehicles. There are two ways to go on that. It is closer to mississippi. In the case of mississippi, it is a fiveyearold plants. They mature over time. It is too early to add complexity to that. It made sense for us. This decision was made five or six years ago. David it is important for companies to be on the good side of the administration. Your plans in investing in mexico . We are a small player in mexico. Only 5 comes from mexico. To move into mexico. We will have to take a look. We understand what the president wants to do. We agree with the president that we want to make america strong, have good paying jobs, a good economy. Eventually, that helps my business. Is, it isf the matter difficult to look at mexico in an isolated area. We have been in this country 60 years. We have invested 22 billion in that time period. We arenext five years, investing another 10 million an hour plants. New headquarters going into texas, into new a taunus vehicles. Autonomousnew vehicles. Reforming Corporate Tax is important, going from 35 to 15 , 20 , or 25 , that brings people in. We do best when we have Consumer Confidence and relatively low interest rates. Are att rates historically low levels, creeping up a little, but still historically well. Isis knowing what the future and making sure the standards and regulations we have are in concert with what consumers are demanding. David if you gave up some on the trade side, is there a deal to be made . I dont know. We understand where he wants to go. As we look at future investments, we understand what he is telling us. This was an investment made six years ago. It is difficult to turn it around because it is one piece of a puzzle as we look at suppliers and where we have our plants in north america. David you need to get ready for this new announcement. Thank you so much. Back to you. Westin, thank you. Still ahead, an exclusive. Rview with keep an eye on stocks moving in the United States. Down 2 10 of a percent. The nasdaq is up about 1 10 of 1 . Elsewhere, a little bit of buying this morning. We have had three weeks of buying in the treasury markets. There is lots going on in europe. Mark the ftse, 10 days of gains. Eight have propelled the ftse to a record high, just under an hour to go before the end of the session. We are in london. We are up in london. Vonnie live from bloomberg world headquarters. Markets. Loomberg i am a vonnie quinn. Mark and i and mark parker. Lets go to first word news with emma chandra. Korean leader kim jongun says that the missiles the missile is in the final stage of development. A new poll shows that more than half of americans view president obama favorably as he leaves the office. Merrick is said they view him aboutbly and that only 37 viewed him unfavorably. The family is trying to rain afterin spending shortfall due to oil prices. Millionsars who stole of dollars of jewelry from Kim Kardashian have been arrested. Authorities say they forced their way into the home she was staying at in october, and they tied her up before stealing visuals. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. I am in the charter. This is bloomberg. I am emma chandra. This is bloomberg. Bloomberg spoke with the chairman at the ubs conference in shanghai. We have a strong interest in increasing our footprint and presence in china. We have said that we will increase our headcount here over the years to come. We want to build a long run, steady presence in china. That is part of our strategy. We do like partnering with local partners. It is all about shifting everything. The talks are still ongoing. What do you think of the expansion plans as far as the Capital Markets . China is still the Fastest Growing economy around the globe. It is the largest growing wealth market. We are the number one wealth manager globally. China for us fits very well into our strategy. Investment banking and wealth we are going what to try to bring it to the market here. We have heard a lot in recent weeks about increased capital control being implement it by policymakers here as they try and slow capital outflows. Is that having any impact on your business . Some of the big european firms are struggling to pay dividends, for example. How is it affecting you hear . You here . So far, we have had no problems. China is open enough. The capital account is being liberalized. Throughonomy has gone that at some point of development. And has to be a slow process. You cannot just open it up without any controls in place. That happens in stages. It is a controlled process. The authorities so far have been doing a good job in the process. I think they are committed to continuing that journey. What we are seeing is a controlled journey. I think it is good they do that in a controlled and steady fashion. Capital outflows is definitely a concern for china in 2017, also the enormous load of corporate debt. Structural and balances and what is happening with the yuan. What do you think are the key risks for china in 2017 . The first big thing is the leadership that is changing. What kind of policies that will be formulated. The current centralbank leadership has been in control for very long. They have the longest serving central bank governor. I remember he was there when i joined in 2004. He was still there when i left in 2011, and he is still there today. A prettyhave followed steady course of opening up and becoming a part of the international community. Requires china to be a part of the international community. Given some of the capital controls, the yuan has certainly taken a step back. I think you will see that these processes are never smooth or a straight line. There are always setbacks. There are periods when things go s whered there are period things move in a more rocky way. As Political Uncertainty is rising if you look at the United States, you could expect a totally different china policy, and that is a risk for u. S. China relationships and Global Financial relations. I think you are going to see more risk in the Global Economy and we have seen in recent years. That is going to shape markets and economics much more than it has in the past. Mark vonnie . Ahead, exclusive interview to address a number of the deals under the microscope including apple. This is bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn in new york. Mark and i am mark barton in london. The sticker has raised concern about the deal. She is the competition commissioner. She has famously targeted apple last year and facebook last month. Best david gura david gura is in london with an exclusive interview. David let me ask you first about the dupont merger considering all this divergence in the agrochemical space. What needs to happen to ensure continued competition in the agrochemical space . As you say, it is a very concentrated sector already. What we are looking at is the very obvious. Farmers need to still have choice. They need to have choice of see ds and products to help them fight worms or fungus or whatever is challenging their crops. These are the things we are looking at. Merger ise of the still very open. We had have the hearing just today. Prized thesaid you investigation. What have you learned in the past couple of months . All, even though these companies are in a similar or overlapping markets, the mergers are different in their nature in terms of what markets they address and the emerging companies. One is very focused on the Chinese Markets and wants to improve the products in the markets. To that degree, it raises a question of innovation and how to make that happen in the chinese market. That comes one thing into contact with the dupont merger where innovation is in important thing as well. Is thatre seeing farmers need innovation as well with some of these products. That is going to be one of the things we talk about with the companys looking forward. David bloomberg has reported extensively on china mergers outside of mainland china. Is that a concern to you . It depends very much on the company. We do Merger Control on a casebycase basis. If we see there is an issue that will damage competition in the european markets, then we will raise concerns. To some degree, that might happen. To some degree, it might not happen. It all depends on the case and the companies in question. You addressednth, facebook and its merger with whatsapp. You said that information could be shared between the two entities. Are you concerned that the commission had all the information it needed to have when it determined is that merger should go through . I consider this a very important issue. We cannot do our job if we do not get the right information. Thatoncern we have here is facebook did not give us the right information during the merger procedures. That, of course, is a huge problem. The full not told story, we will not be able to take the right position and enable competition on the other side of each merger. That is why this is so important as a take for the entire Business Community we will probablys best we will pollute we will police our procedures to make sure we get the right information. As best aso that possible in the short deadlines we work in. David you have been looking at google as well. How satisfied are you with what the company had to say . We just got the last part, so we are in the process of analyzing it. It is too early to say what will be our final decision. We are in the process of going through it. T is very substantial there is a lot of data to go through. Now, we do have the working materials and the answers from google on the cases in question. David you have seen the rise in populism as we all have. What does that mean for you in your office in looking at competition in general . It is very important that people see we do our best to do the job ahead of us. To make sure that citizens are not being cheated in the marketplace. That is this is do not agree on businesses do not agree on prices in the back market, but products,compete with prices, services that they can offer customers. For every citizen, it is important to see that the authorities do their job to service the citizens. Where the individual might be too small, but together we can do something good for making our societys work. In that respect, i think it is important what we do. David we have seen the photograph of you with the treasury secretary. It seems you have a good the relationship with antitrust officials in the United States. Do you expect the relationship to continue beyond generate 20 . January 20 . I have not met with anyone from the incoming administration. You are right to say we do have a strong, working relationship. I think on the level of case handlers and senior management, there is now a very strong knowledge about how beneficial it is when we have the necessary waivers from businesses to be allowed to work together. That we can Share Analysis and come together to talk over the phone or have video conferences in order to get the analysis right. I think that is very strong and very practical. I think that is one of the best tokens of the appreciation for how the corporation can be. David how pivotal do you see case being apple to your office . It has made you better known in Silicon Valley. How do you make the relationship better between yourself and Tech Companies in Silicon Valley . Have, of course, try to make it absolutely clear that we have no issue against any company. What we are aiming at is behavior. For instance, the thing that happens if one company, or a group of companies, are getting favored that is not available to other companies. That on levels the Playing Field unlevels the Playing Field. It disables competition. That is the issue. I do not think that as a company i do not you are think that, as a company when you are in a competitive environment, how can you improve ve of your competitor having benefits that are not open to yourself . Work in favor we of the Business Community to enable competition. David in a few months, you will be looking at a bank case. What does the Italian Government have to show you to give you the sense that this is a good plan . Before we are obliged to see , it shouldring plan allow for a viable bank on the other side of the recapitalization. It depends very much on it the bank in question. We are only in the very early days. Here, of course, it is the detail that counts. That. L start working on it will probably take a couple of months or maybe slightly more before the Restructuring Plan is in place. Also because it is the main work of the management of the bank. In the Exchange Space, i know you have raised some concerns on the london stock exchange. What is your concern about consolidation in the Exchange Space . In the market, you have very high barriers of entry. It is where competition is very important in order to make sure you get the right prices on a number of different products when it comes to clearing. We are in discussion now with the companies. It still remains to be seen what will be the outcome of this case. David thank you so much for your time. Mark david, a great interview. A fascinating interview, as well. She certainly has her plate full. Vonnie, a big day over there. Speaking of the donald trump administration, it is a big day for the resident elect. He is meeting with Mitch Mcconnell right now in trump tower. He will also be meeting today with alibaba chairman. He will also meet with some other executives. In other news, bob dole will serve as vice chair of the president ial transition team. The former gop president ial asinee and senator works now a lobbyist for the taiwanese government. Controversialhat call between donald trump and taiwan that did not exactly please china. This is bloomberg. Vonnie this is bloomberg markets. I am a vonnie quinn in new york. Mark and i am mark barton in london. Prime minister theresa may says the company the country is more likely to pursue an exit out of the eu that prioritizes immigration control. We have heard that sales have actually and if it from the shortterm decline. It is a complex situation that will take a long time. We did get some benefit from the