Nejra we do have a look at where european equities are trading right now, just under 30 minutes to the equity close. Up, ian get my Bloomberg Ted to show you gm g. M. N. Seeing the euro stoxx 50 in terms of eurozone stocks, 0. 8 to the highs level in a year. Erased the 2016 drop. You can see gains across a lot of the indices here, spain up. 9 , gains and greece, austria, norway in the fx space, what youre seeing is a little bit of a pause in the postfed dollar rally. Thats translating a little bit of a higher start 12433. Weve seen the euro had higher today as well. Yields, if you look at the core tracking 10 year treasury yields lower. Up some sevenr basis points. A bit of a mixed picture in the fixed income space. In commodities, brent crude up 1. 6 , and if we take a look to see how this is translating into the stoxx 600, europes equity benchmark is up for a second day heading for this highest close in almost a year, set for a second weekly gain as well, up. 4 intraday at the moment. I take a look at the imap to show you how different sectors are performing, no surprise that Energy Stocks are leading again up 1. 2 with those higher crude prices and we are seeing a pretty broadbased rally in terms of the Industry Groups. One of the stocks were very much focusing on today on m a news is actelion, the best performer on the stoxx 600 up 11 intraday or thereabouts of almost 16 over two days. This after people with knowledge of the matter said that sanofi is in talks to acquire the swiss drugmaker in a deal that could be announced as soon as next week. As we were just talking about, actelion has been a target many times. We want to see if this goes through. The stock rally today nonetheless. Finally, the eurodollar. Of euro snapping three day losses versus the dollar, where it was earlier. Looks like were edging back into the red or perhaps we are flat. But yesterday, we saw was it dropped to a 13 year low. We have got some lower volumes going into the weekend on eurodollar and unicredit and Deutsche Bank are maintaining their bearish call on the currency. Games for u. S. Stocks, the dow, s p 500 and nasdaq all trading higher. Moments ago, we were flirting with record highs. Had bothnd the nasdaq been on pace for record closes, but that is simply not the case right now. We will be watching to see whether those records can be regained, especially whether or not the dow does climb towards 20,000. Its worth noting on this quadruple witching day, we have volume 40 higher than normal rate be prepared for volatility. It could certainly come. As for stocks, looking at department shares trading lower, including nordstroms, macys, and kohls. Nordstrom was downgraded to underweight from neutral and jpmorgan. The analyst is bearish after management meetings, not a good sign, saying they are hurled ahead for growth, after the stock was up 50 over the last six months. That weakness does appear to be weighing on macys and cold. And kohls. We have the twoyear, the 10 year, and the 30 year. We have the bloomberg dollar index year, the twoyear is the only bond right now that is actually rallying. This is represented by that drop in yield, whereas we have the 10 year and the 30 year continuing to selloff a little as rates and yields to move higher. One expiration could be the fact that the shorthanded tends to be more sensitive to fed moves. We have the fed raising rates and the twoyear yield yesterday hit a sevenday high sevenyear high. When we take a look at a great chart in the bloomberg, this is g btv 5366. In blue we have a 10 year yield on the white we have s p 500 dividend yield. Right now, was he the 10 year yield far more attractive than the s p 500 dividend yield, basically at 60 basis points a better beat by the 10 year yield suggesting that stocks have some competition hear from bonds. It could pressure stocks to some degree. We had an options guest yesterday that suggested that this very situation, the fact that the 10 year yield is more attractive than the s p 500 dividend yield could be a pressuring situation for stocks into the new year. Fascinating how things are changed just in the past few days. The question of whether its a longterm change or just a shortterm reaction. Abigail doolittle, thank you. Lets check in on the bloomberg first word news. Courtney donohoe has more. Valleyy president obama to retaliate against russia for interfering in the u. S. Elections. The cia concluded russia intervened in the elections specifically to help donald trump. Told npr the u. S. Will respond at a time of its own choosing. He says some of the response will be publicized and some of it may not be. President obama will hold a News Conference today, at 2 15 p. M. Eastern here on bloomberg tv and radio. Meanwhile, russian president Vladimir Putin says it is time to end the pingpong over islands russia seized from japan at the end of world war ii. Vladimir putin and shinzo abe agreed to start talks. It kept the two countries from signing a formal peace treaty for seven decades. The evacuation of aleppo has been suspended. About 8000 people left on buses and ambulances before the process broke down. Syrian state media says rebels were trying to smuggle weapons out of aleppo. Activists say progovernment militias have blocked the passage out of town. It is a red alert for inclusion in beijing today, the highest warning level. Its the first time its been issued this year. Under the alert, beijing will cut some Industrial Production in the number of cars on the roads will be limited. Schools are allowed to shut down if they want. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im courtney donohoe, as is bloomberg. Nejra lets get back to the markets. Its been a big week for investors with decisions from the fed and the boe. Stocks in both the u. S. And europe are heading for weekly gains with the stoxx 600 on track for its highest close in almost here. Joining us now from Rbc Capital Markets in london is peter schaffrik, a global macro strategist. Great to have you. Thanks for joining us. Weve been talking about how much further this rally in stocks has to go. Whats your view . Mr. Schaffrik we generally are fairly optimistic for a number of reasons. You were talking about bond markets versus stock markets earlier in the program. Let me just highlight one thing that we are looking at. It really depends not on why bonds are going up and whether or not this is positive for the equity markets are not. If you have something we had for the last six week where inflation executions are going up, thats ultimately should be a positive environment for the stock market as well. Particularly if the fed is not super aggressive. That weave something had for a brief moment in time after the fed meeting, where real yields are going up, that could be a more pressuring environment for the stock market. Ultimately how the to hang together depends a great deal on why bond yields are rising. But also, we think theres more room to go in the stock markets. You are looking at the u. S. Versus the rest of the world, are you favoring the u. S. Stock market over asia or europe . Mr. Schaffrik certainly over europe. One of the things thats very clear in europe particularly over the next six months or so is that we have a whole host of homemade problems, ranging from brexit to Political Uncertainty hanging over the euro area. And indeed, even though their shortterm indicators that seem to be decent, the mediumterm growth out of the euro area is not that great. Certainly, compared to the euro area we favor the u. S. Definitely. Vonnie looking at the u. S. Versus europe, i have the chart that is the bond gap. Something you have been looking at with the treasuries and bond spread. Widening on divergent policy. Hear what you are seeing is a difference in the yield curve as well, if you look at the bond yield curve, you are seeing a steepening, where as with the treasury yield curve, you are seeing a flattening. How you see this continuing into 2017 . Mr. Schaffrik if i start with the european over the bond curve, it seems very hard for the bond curve in an environment where yields are going up, driven by the u. S. , the european bond curve cannot stephen. The ecb has cemented the short end. Its most likely shifting the qe purchases further down the curve. Theres less purchase further up the curve, which means the curve almost certainly going to stephen. In the u. S. , the jury is still out. We have seen some steepening of the u. S. Curve as well. I would like to come back to what i said earlier. As long as the breakevens are rising in the fed is not going to be super aggressive, we might actually have a chance for the u. S. Curve to steepen a little bit in absolute terms, maybe not relevant to europe. If that picture changes, we get a more aggressive fed tightening being priced into the market, i think its a different story. Then we think the front end will become the most dominant rival of the market. Vonnie you post the question what is moving the bond market . Is it inflation excitations are growth expectations . On must have some thesis that. Obviously, both to a certain extent. What is your base case . Mr. Schaffrik i want to correct a little bit. Im not saying its either growth or inflation excitations. What im asking myself, what im challenging everyone to think about is, we have to look at why market yields are going up three is a real Interest Rates, which i think are driven to a large degree also by the expectation of how strongly the fed my move, or is it Inflation Expectations . Normally, the to go closely handinhand. We have from 2014 up until recently, it was predominantly driven by Inflation Expectations which went down to record lows. Is a reversal of that, were the predominant driver is inflation expectation. Reversale an ongoing and normalization of inflation expectation, i think this is a relatively positive environment for risky assets. Thats what we expect. If that is changing, we have to rethink that thesis. Its not growth versus inflation, is probably both, growth that driving inflation and inflation excitations. The question of how strongly will Central Banks go against that . Vonnie lets take a look at bets on the dollar, if you look at 2112 on the bloomberg, the better quite high. 103,ollar index topping where the euro and again make up the bulk of it. How far can this reflation trade and to go . The Dollar Strength is also part of that. Mr. Schaffrik it certainly is. I would caution that the easy solution which is Dollar Strength ultimately brings down Inflation Expectations or even growth in the u. S. , first of all, our Research Shows that at the end of the day, the u. S. Economy is a relatively closed economy. Secondly, in contrast to previous occasions, and the emerging markets which are still under pressure are less under pressure than that used to be. And with the new administration seems to be proposing is some countermeasures. Through tax cuts and all of that can help the stock market perform. All of that ultimately helps the economy. As long as wages are growing, which seems to be the case, we have a relatively decent output for Inflation Expectations and growth for the u. S. Ahead. Vonnie our thanks to peter schaffrik. Nejra thanks to peter schaffrik, global macrophages at Rbc Capital Markets. Up, russia has a warning for next year. Putinn president vladimir tries to improve economic ties with japan. What he accomplished. This is bloomberg. Vonnie live from new york and london, on vonnie quinn. Nejra and im nejra cehic, this is the european close on bloomberg markets. Less than 15 minutes to go to the end of equity trading. Now we turn to the latest on the russian economy. The nations central bank keeping its key Interest Rate at 10 for now, but warning there is room for limited easing next year. At the same time the russian president Vladimir Putin travel to tokyo to push for better relations with japan. Bloomberg news government editor Tony Halperin joins us from the moscow euro. I was injured in this central bank decision, because i did interview them earlier this year. When we got the last sign in september, it was very much a question of moderately tight policy, a hawkish hold, if you like. Have we seen a shift here, and is it because of inflation actually falling faster towards the target than previously expected . Tony not really. Shes very much projecting a message of steady as it goes, really. Trying to convince markets of the bank of russias very serious about reaching it inflation targets. Unprecedented pledge in september to have no further rate cuts this year. Shes made good on her word there. And she indicated that theres limited room in the first half of 2017 for further integrate cuts. The objective being to convince markets and analysts that the bank of russia will reach the 4 inflation target by the end of next year. Shes very much trying to project an image of certainty and steadfastness. She doesnt want any surprises, she was to convince everybody to the bank of russia will do what it says and meet its goals. Nejra earlier we talked with the ceo of carlsberg about his outlook for russia. Lets listen in to what he had to say. Everything that will encourage Consumer Confidence will help us. In russia, you see the decline of the market is bottoming out a bit. 4 or 5 for the decline in 2017, but it has a real cause in terms of the models. Trading, bubble on that will have an impact, but we are confident about the value and the further margin element of the market for next year. Tony, im wondering what your take is on this. Do we see signs that the russian economy is improving . Where you areds sitting. If you are russian consumer, you are still feeling the pain and you dont see much evidence that the horizon is getting any brighter for you. The governor did say the russias economy would return next year. During the longest recession for two decades. She saw pretty anemic growth of less than 1 next year and perhaps as much as 2 in 2018, 2019. The russian consumer sitting at home counting the rubles, its still going to be a time of bill tightening. Heree i have a chart thats fascinating. Mapping inflation against the main Interest Rates, this is what weve been talking about with the central bank. It looks like last year, the Interest Rate was coming down stepbystep and inflation then came down. Than maybe further wouldve thought from a couple of Interest Rates cuts. Its continuing to drop in the Interest Rate is staying the same. At what point will we meet the goals for inflation and where will the Interest Rate be . Tony well, i think the bank of russia has kept rates high because it wants to show it serious about meeting the target. Track toarget and on meet the end your target for this year, and it has the stated goal of a 4 inflation rate at the end of 2017. Shes also try to influence inflation expectation, not only the actual number itself, the peoples feelings about how inflation will fall in the year ahead. As your chart shows come inflation has been falling faster than expected. Thats due in part to her determination to keep rates high. Briefly, did Vladimir Putin and shinzo abe make any breakthrough in the territorial dispute over these islands . Tony they didnt, they reached an agreement for Economic Cooperation on the islands between them in areas like fishing and medical supplies. There was a notable warmth in veryiscussion, they seem serious about trying to find a resolution to this problem that plagues the relations for 70 years. Nejra thanks for tony help in. Ash halpin vonnie when denmarks finance minister is eu budget after brexit. Thats next. This is bloomberg. From london, i nejra cehic counting down to the european close. We are five minutes away. Vonnie in new york, on vonnie quinn. Time for the look of the biggest business stories in the news right now. Its obvious i at wells fargo says the number one goal now is to rebuild trust following the fake account scandal. Kennedy banking head merrimac admits the bank has plenty of work ahead of us. Retail customers opened fewer checking accounts compared to a year ago. Admittedber, the Bank Employees opened as many as 2 million fraudulent accounts. Deutsche bank agreed to pay 37 million after misleading customers about trading platforms. Federal and new york state regulars say Deutsche Bank will admit to violating security goals by failing to address known technical problems with its proprietary banking model. That is your Bloomberg Business flash for this hour. Denmarks finance ministers Kristian Jensen says Member States wont be paying for the gap left by the u. K. He spoke with us in copenhagen. I want the u. K. To have the closest connection to the rest of the u. S. As possible. But you cant have the obligations and the benefits separately. If you want the benefit of being close to the eu, there are obligations you need to follow. As a freeothing lunch, not even for a country like britain, whos been one of the biggest allies for many years. Nejra he also touted denmarks economic success built on free trade. Denmark is one of the countries proving that you can still the wave of populism and you can defend the free open market and be a champion of free trade. Denmark is one of those countries who have benefited tremendously from open markets. Nejra that was a Kristian Jensen. Lets take a look at where european markets are trading as we head to the close in just about four minutes. The stoxx 600 up. 2 , up for a second day heading for the highest close in a year. And set for a second weekly gain. The q 100 unchanged, that we all see strength in the dax and in currency markets, a little bit of a fallback in the dollar. As is bloomberg. 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Stocks finishing up the day in european trading. Take you through all of the Market Action today. Im starting on gnn cross asset as i always do so you can see the big picture. Broadbased rally along the european indices. The eurostoxx 50 erased its 2016 drop today. And at one point hit its highest level in a year. Were seeing a second day of gains for european stocks. A pause in the dollar rally. 104. 51. , 105 gains in the swiss frank as well. In the fixed income space we have been seeing call yields attracting leverage. Italys 10 year up six basis points. A bit of a mixed picture. In the commodity space brent crude holding up. 55 spot 12 a barrel. If you look at the stock 600, were up. 2 intraday. This was heading for the highest close in a year. Well check after this to see if it hit that. Its on its second weekly gain. Looking at how different sectors are performing here, looking at the i mack function. Not surprised Energy Stocks are leading the rally with that gain in the crude price. More Industry Groups gain rather than declining. Financial underperforming somewhat, off by. 4. Perhaps part of that is down to some of the bond yields heading lower. Looking at one stock we have been focusing on in particular, the best performer today on the stock 600. Up some 11 intraday, up 16 over two days. People with knowledge in the matter saying they are in advanced stalks to aguirre this swiss drug maker in a deal that could be announced as soon as next week. Finally, i wanted to show you the stoxx 600, were on a second day of gains heading toward a weekly gain. Look at this how its playing catchup. I told you earlier the eurostock 50 erased its drop. The stoxx 600 is yet to get there. Will it be able to catch up with the s p with asian stocks, even with the ftse 100. Vonnie im looking at cmm go which concentrates on the united states. You can see its had a reversal in the last hour. Were seeing stocks turn around and indices turning to negative. Particularly the nasdaq. Large cap decks weighing on the nasdaq. The s p about. 1 . If we move to currencies, there has been a move in the dollar in the last hour. Dollar weaker after just days and days of Dollar Strength. There is a report that china has seized an unmanned, unmanned vehicle in International Waters and that the u. S. Has demanded it back. There is speculation this may be impacting the market when it comes to risk. Dollaryen that big drop happening there for the dollar getting weaker. Look at the mexican peso. It. t checked in on lelele mexico did make efforts to change that. Well talk about that with Richard Jones in london. Still trading at 2043. That is weaker mexican peso today. Look at this for the ue juan. Well see 7 before the year is out. The twoyear yields 1. 24 . Check in on the bloomberg first. More on those reports that we were talking to you you just mentioned. China has seized a u. S. Unmanned underwater vehicle in the south china sea. Report comes from reuters which sites the u. S. Official. The incident reportedly took place in International Waters. The u. S. Has demanded that china return the vehicle. In the last couple years china has boosted its military president ence in the china sea. Auditors say they have concerns about greece. Pushing through expenses social programs and they say thats threatened the bailout thats kept greece in the euroarea. In berlin, the cherman chancellor met with sip preyots and says greece has her support although the decisions will be made by others. I want to say that this isnt the place where decisions will be made. This is in the good hands of the three institutions and the eurogroup. But certainly it will also play a role in our talks and how the greek Prime Minister sees the situation. Those institutions are the e. C. B. , i. M. F. , and european commission. Switzerland may have solved its imgration dispute. It would give locals a head start on filling job openings. The measure side steps quotas and those would have led to a deeper dispute that could have cost switzerland crucial trade deals with the e. U. A warning from mario draghi, he told european leaders that explosive politics pose a risk. According to an e. U. Official familiar with the meeting. He did say that conditions have improved everywhere in the region compared with the start of the year. Global news 24 hours a day powered by more than 2,600 journalists and analysts in more than 120 countries. Nejra currency and bond markets are settling down somewhat after a dramatic week when the Federal Reserve unveiled a tight up policy path in 2017. Joining us now to review the week that was in f. X. And rates is Richard Jones, bloomberg f. X. And rate strategist. Richard, where do you want to start . Richard you have to start with the fed because they raised rates this week which wasnt a surprise. I think they were a little bit more hawkish than everybody expected. So the dollar got a bit of a bum from that. U. S. Yields was higher. But realistically looking into 2017, i think its still too if you rewind back one year ago from now, the end of 2015, the fed was just raised rates and said they would raise them four times in 2016. We only had one rate rise. And yields have been considerably lower than i think a lot of people thought they were going to be for most of the year. We have had a trump bump in yields and the dollar since he was elected. But realistically i think its still all to play. The fed is calling for three hikes next year, its still probably a little bit more hawkish than what the market is pricing. Nejra if we look at the twoyear, because i know you warranted to highlight this, this is the most sensitive, we did see it go up on the decision quite significantly. Seeing it come down a little bit today, what do you see looking at this going beyond 2016 into 2017 . Of course we can back this out as well. Richard i think beyond the sort of now until the end of the year i think well probably see profit taking positions squaring being the come nancy. The end of 2017, were really going to need to see specifics from the Trump Administration in terms of what they are going to do on the fiscal side. Is there going to be an awful lot more spending . How are the deficit hawks in Congress Going to react . I think those details will be a big driver of fed policy. If you look at the chart we have up there now which goes back 40 years, were still very, very low levels notwithstanding the rise that we have seen since president elect trump won the election in november. Nejra richard, were not going quite as far back with my chart but were going back a good 20 years. It seems as though the italian 10year yield is approaching levels of core maybe not germany, but the rest of the core, 1. 87 . Is this thanks to e. C. B. . Can mario draghi rest easy . Richard the great thing about this chart, vonnie, going back 20 or 30 years of data there, and even with the recent rise that we have seen in italian yields from the lowest levels that we saw in the summer, were still historically a very, very low levels. And this, i think, is something that is really important to the e. C. B. Is keep a lid on periphery yields and thats why i think they cut rates this year. They have been very acome dayive. They have chosen to extend q. E. Toward the end of next year. And i think one of the key motivations for this is to keep those periphery yields capped. Italy is a great case in point. Vonnie there are many flies in the ointnant, not the least the italian banks, and also the u. S. And potential fiscal policy which could spur some more inflation and a stronger dollar, so what would be a potential path for mario draghi on italy if all of the above happened . Richard i think certainly concerns about the italian banks would be something that would probably get him to lean a little bit more devilishly. Inflation rising is something at the, c. B. E. C. B. Would welcome. What the e. C. B. Is looking for is a rise in core inflation in europe. Thats still an awful lot below target. Its at 0. 8 . Thats less than half where the e. C. B. Wants it to be. I think given all those dynamics, they probably still lean towards being slightly more accommodative in 2017. Well have to see how those economic and the other realities in italy pan out. Vonnie on the bank of england, richard, we had pol policy unchanged as was expected. What was surprising is what they said on inflation. Seeing a stronger trade weighted sterling. I want to take you to the twoyear guilt yield which you wanted to highlight here. Whats interesting is this looks different in the picture for the 10year yield. We didnt see a steep drop off in the 10year yield back in june and it recovered a lot since. Richard the twoyear yield is like in the u. S. Is very sensitive to monetary policy. The bank of eng lapd having cut rates in august, i think taking different tone yesterday than people thought they would, it is keeping a cap on these twoyear deeleds. Yields. It it really does show you how low those current yields are historically. Thats no different to the u. S. No different to italy or anywhere else. I think Going Forward even though the market is sort of thinking the next move will be a hike, given what the bank said yesterday, i could see the bank being on hold for a considerable period of time. Nejra interesting because the historic low yields generally in the u. S. , the u. K. , and elsewhere is what a lot of people site as a cite as a reason for those yields going higher. Richard jones, thank you so much. Coming up in the battle of the charts, even though european stock volatility has plunged since the referendum. Loading up on protection against next years potential turmoil. We have a chart to prove t this is bloomberg. Nejra live from london and new nejra and vonnie. Its time now for our global battle of the charts. It does have an equity focus. Here well look at some of the most telling charts of the day and what they mean for investors. We have two special guests going against one another today. Kicking things off is oliver in new york. What have you got . Oliver it is a stock focus. Its also a bat of a stock reporter competition here. Sofia and i going head to head. Im looking whats happening in the u. S. Market right now. In particular explaining everything. Heres the top penalty here. Were looking at two things. The white line is an Investor Sentiment survey. Its not the best thing out there. Decent way to gauge sentiment. You see the green box, this is since the election. Its jumping up just going crazy. We know that much. Then we look whats happening in terms of the flows. The purple bar behind is the spy equity flows. Were looking at big jumps here the past couple weeks. We had a huge inflow right after the election. A another couple big weeks. Investors feeling good about stocks. What are they buying . Thats whats answered in the bottom panel. Im looking right now a ratio of value to russell 1,000 value index versus the growth index. When this number goes up as the index goes up, people are buying value stock. Thats whats been happening. They are on the a tear. Up about 10 since the election. Basically what people are doing, they are using this opportunity, they are putting money to work, and going to buy stock they think are good value. Ash tag btv. Nejra i want to turn to sofia in london for your debut on this. Sofia my chart is a little bit more bearish than olivers the. Here we have the y line is showing the v stocks index a gauge of volatility, expected volatility on the eurostocks 50. And the blue line is futures. What investors expect the gauge will do in the next specifically in the next four months. If we think about the next four months, that is april. Thats exactly when the French Election happens. What i want to show you now is here volatility has actually fallen to a twoyear low in europe. Its crazy if you think how this year has been. You look here. This is brexit, this is china worries, its been a raisey year. Now were at a twoyear low. It might not stay that way. Expectations are it will rise. Volume has been very high on index futures. The record, nejra, it hasnt even even brexit month in june it wasnt this high. Clearly investors are positioning for maybe a surprise next year. Nejra you can see sofias chart on the bloomberg at g hash tag btv 3351. Heres my assessment. Oliver i love you said your chart explains everything. I dont know that you can get a better tease than that for your chart. I love you show it exactly what investors are buying. I think sofia marginally, is the winner, shes looking forward to what we might see. Oliver i sense regional bias. Sofia youre just jealous. Nejra thank you sofia and oliver. Great charts both of you. Next on bloomberg markets, Hotel Booking site, trivago, makes its public debut in u. S. Trading. Well seek with c. E. O. Rolf schroemgens live from the nasdaq floor next. This is bloomberg. Nejra live from london and new york, im vonnie quinn. Nejra this is the european close on bloomberg markets. Time now for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Italys struggling bank has been given another chance to avoid a government bailout. The bank can now extend a debt equity swap in a last ditch effort to raise 5. 2 billion. If it succeeds, they can bundle about 30 million of bad loan into securities and sell them to investors. Vonnie the british antitrust regulator may fine drug bt maker activist by raising costs of the tablets. They have been accused of charging unfair prices. They were acquired earlier this year by tether. The company hasnt commented. Thats the latest business slash. Vonnie . Vonnie nejra, exspeeda german Hotel Booking site. Trivago, is making its debut as a public company. The shares have begun trading this morning. Lets head over to the nasdaq for bloomberg i. P. O. Reporter, alex, is standing by with the c. E. O. Alex im here with rolf schroemgens, c. E. O. Oftry vaco of trivago at nasdaq. You did prissure listing below the range you were marketing to investors versus 13 to 15. How are you feeling about your i. P. O. Today . Mr. Schroemgens im happy were here. Were listed and i think its not super important where the stock is it trading. Whats important is we list it. Well see the development over the years. And trivago is never about the big show. Its about Continuous Development and learning. So i think thats important for us. Being here and well see where the stock is trading in a year or five years. Alex when you talk about Continuous Development and learning, looking at your financial, the majority of your revenue does go back into advertising and not necessarily to r d. Where are you looking to continue to expand and does that change over time . Mr. Schroemgens i think we offer investors a lot into r d and still growing our r d spend about 70 , 80 year to year. Were heavily investing into r d of course, our main focus not main focus but spending is advertising. It doesnt mean that advertising is without a lot of r d. Because what were doing were looking at this were looking at it anta litically. Anna litically. Were trying to learn and improve over ty. Alex when you look at the travel booking space it is crowded. You have your majority shareholder, price line, kayak, how do you differentiate trivago from the rest of the competitors . Mr. Schroemgens thats why you dont book at trivago. Were just a search. We would never go into booking. We want to be a tool for consumers. Consumers can use to get a great over view of the market. We would never sell them something. Thats a huge difference. Most of the players trying to get into that space, they think they have to do the booking themself. We think we have to be independent. Alex when you look at some of the new folks coming in, you have airbnb who are allowing people to search and find things. Yes there is booking, but it seems to be ink frinking on your templet how do you feel about that . Mr. Schroemgens i think airbnb is perfect for us. I understand its like booking is concerned because they are going in the same space. For us they are opening up a huge inventory. Basically rooms which were not bookable before, they opened that up. They make them bookable. People can find them in the future, find them on trivago, that wasnt a possibility before. Any player in there and really ntracting step by step, we welcome this. Alex did you get a lot of revenue from exspeeda, that relationship . Are there other potential partners out there youre going after to boost sales . Mr. Schroemgens for us its not about winning sales. Winning another customer. For us we have a marketplace. Marketplace at the end is by bidding, who gets the share. Who doesnt. For us its important we have lots of players in the marketplace. And thats not only the priceline and expedia of the world, but also the hotels. We invite hotels to show up with their own rates in our rate search so we dont book for them. But they can show up with their rates in our rate search and do their advertising on trivago themselves. Alex you are one last of the tech i. P. O. s in a slow year for a listing. What were you hearing from investors . What are they looking for in terms of a good investment these days . Mr. Schroemgens i think we got positive feed beak from investors. We combine size, growth, grown like 90 for the last five years, and profitability. That is a very good combination. Ill see stock is trading in the future. I feel positive. Alex 7. 2 . Thank you for being here with me on listing day. Vonnie, back to you. Vonnie all right, alex. Thanks. Good luck to trivago. Vonnie, take a look where european markets ended the day. Nejra closing at a oneyear high. There you can see it up. 3 . Gains pretty much across the board. Lets switch up the board and look at f. X. Markets. A little bit of a pause in the dollar rally has had an impact on euro. You can see them both heading higher. And looking at the fixed income space and what were seeing there, were seeing a divergence between the core and periphery. You can see the 10 year yield down five basis points. We have seen yield head higher in the periphery up. Up five basis points on the 10year italian yield. The core tracking whats happening in treasury markets. Thats it for the european close. This is bloomberg. Its noon in new york. 5 00 p. M. In london. And 1 00 a. M. In hong dong im vonnie quinn. [captioning made possible by bloomberg television] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] david were covering stories from houston to washington and geneva this hour. Heres what were watching. Donald trump rally is making history with the dow recording the biggest fiveweek jump any new president has seen since 1900. We have a chart you cannot miss. The u. S. Will take action in response to russian cyberattacks intended to interfere with the election. The president elect continues to dismiss the claims of foreign interference. And super bowl 51 will be here before you know it. Well have a guide how to get to houston if you are willing to fork over the cash. We look at the markets. After early gains and with the major averages flirting with record highs, were now looking at mixed and choppy trading right here. Ever the dow s p 500 lighter. Some could reflect quadruple