A hire winning streak since january of 2010. Read about even, unchanged. We will see how things are changed. Less than the bill from last week. We have the opec and the nonopec supply cut starting this sunday of 1. 8 Million Barrels per day. U. S. , weerages in the are looking at small the kleins pyramid ravages had been slipping between small gains and losses on the day, halloween a serious pullback yesterday with the s p 500. It was their worst pullback since 2011. A little hesitant with the nasdaq lacking the most. , not a lot ofrs action either. Sometimes they trade higher when oil is lower. Vix, a little bit of its complacency may be leaving the market. The vix higher for another day in a row after touching near record recently. Stemcells time highs. Take a look at btv 4350. The chart may suggest the new year could start off with a bang. The chart we are looking in, this is 4350. We have the vix and white and the s p 500, and we see when they tentative urge, they reconversion. Earlier this year, the vix higher on the macro and then the s p 500 fell. And now we have record highs. There could be surprises that suggests we could see that higher in the new year. Thanks to abigail doolittle. We are looking at european stocks. Away, the 600es down. 5 . Percent,wn one point which will bring the drop to 1. 9 for the year so far. See how it ends up. Two points on the record high. We should remind viewers that the dax in germany is taking on as well, down about one third of 1 . 25 minutes for the close down. 4 . Take a look at currencies here the british pound versus u. S. Dollar is trading on the session 12234 yard we will head into the end of the year that way. A little euro strength today here that has been the story over the past few weeks, but it is today. At euro stronger trading 8571. Lets look at some bonds earlier. Appears to continue to be the case with the 10 year yield, 1. 2 yield down, now about it basis points on the session. 17 basisar yield, points and a little bit of a drop for the germany and the 10 year yield of 1. 33 . Time now to check in on first word news. More from the newsroom, taylor. Taylor a ceasefire on the Syrian Civil War will take effect at midnight on local time. It backs the Syrian Government and turkey, putting forth most of the rebel forces. The agreement aims the way for the end of the conflict. The Trump Administration could join the Peace Process once he takes office. In russia, there is an indication the clash of military transport plane was not an act of terrorism. An official says an Analysis Shows there was no explosion on board. The plane crashed in shortly after takeoff. All 92 people on board were killed. A routine stop over in the u. S. By the president of the taiwan is taking added significance. Taiwan says a transit in the u. S. Next month on her way to central america, no details of her u. S. Stock has been announced. China is urging them not to let them pass through. President elect donald trump angered china by speaking with the taiwanese leader of the phone and he later question questioned the one china policy. According to the new Bloomberg Consumer comfort index, the gauge cooled slightly christmas week but is still in line with other measures of confidence surging since donald trump was elected president. Republicans, high income individuals, and homeowners. Global news 20 but 25 hours a day in more than 120 countries. This is bloomberg. Vonnie thank you. This years political upheavals fors the mergers ahead 2017. China and the policies of president elect donald trump among the biggest topics. That is the conclusion of the bloomberg deals reporter. Join a set of perfect time because we are getting news about johnson johnson, some of the top concerns of all investors going into 2017. Yes. Everyone is looking of the political changes. A lot of people said Donald Trumps nomination could be good in the u. S. It is not at as positive on brexit. Talkingady had leaders strategy,u. K. Leaders we know from American Companies in the past, you have china that is so active. Restraintsot capital. How much will currency dictate the really bottom line . Because you will be transferring one to the other with deals. Fluctuations if you just look at brexit, it has helped companies. Bid, most of its earnings are outside the u. K. That will probably have an impact on these but not a lot. Especially if you look at what might come in the u. S. From taxes, u. S. Companies will bring that money back to the states. They will not look at things like currencies. Probably they will do a deal only if it makes strategic sense. The timing could change based on the currency. The sectors and industries might be rife for more deal spirit we saw a lot of deals this year. Cap in the Telecom Space to all of this could be a final year of the administration . That. E is definitely there is consolidation. That is the case in europe when youre talking about the health care sector. The biggest deal possibly that dot plots was from the health care sector. Pfizer allegan. That plays into what dealmakers are saying that victim a Day Companies will be slightly more careful when they go and try to do those deals. Another sector we probably seen more activity in his oil and gas. Have finally gone up, these are the sectors people have an saying her years and years. As well. Ssibly vonnie what are the possible outcomes . That will probably be left by Chinese Companies being less active, keep in mind the Companies Japanese and they, they paid up got a lot of acquisition plans. That will probably feel more am a day from the u. S. Companies and the u. S. Might become more attractive with possibly the exception of china given what we have seen. Is there a dollar level at which we will just not see any deals . A tough question. Mega crossdo not see commodities, we will see these within continents. The u. S. Or is health care, within the confidence or deals within regions, that will possibly still continue. It might take a slight hit, definitely. Vonnie more headlines, a report regarding johnson and johnson, a story for a while, it is set to be negotiating a deal that wiring the Technology Company that would separate the commercialized portfolio. According to the report, the structure would allow them to look acquired a carry on with a cash offer of 260 u. S. Dollars per share. Stocks are not moving hugely off the back of these reports. Beinglar gain is now erased with trading. Is this something that has already been discussed and is it a possibility . It is something we have addressed well in our stories. I do not think it is much of a surprise. Trystal has seen a lot of twists and turns. Back, table. Hey are now just waiting they do not want to it anymore. They are waiting to see the final out come and that will next few be within the weeks. The deal continues to surprise us. Vonnie thank you. That is our am and dave are order in london. Will the u. S. Dollar continue its climb in the new year . This is bloomberg. Vonnie time now for a look at some of the biggest business stories in the news right now. Shares of sears are rising after the retailer lined up 200 million in credits. The money is coming from efl investments. An attempt to make the company profitable. Benefits fell in the u. S. For the third time in last month. Down by 265,000 last week. 300 495 straight weeks. The longest streak since 1970. On cars isrategy paying off. It is on track for a roughly 40 increase in sales of electric vehicles. Hybrids are expected to make up more than half of these sales at in of the decade. That is your Bloomberg Business flash for the hour. China has diluted the role of the u. S. Dollar. It has added 11 currencies to the baskets, all as officials look to project stability for the one. 6. 4 it hit an 18 year high and could continue to the new year. Is a consensus that dollars is higher certainly the end of the year, there are very good reasons many are bullish on this point. The trend is likely to extend in 2017 and there is a risk that if anything, we might see a more rapid dollar appreciation and a greater stint than many in the market anticipate. The reason they have laid it on the side is i think we will see a shift in terms of market focus toward politics away from focusing on natural banks and as we enter an era of politics with a fiscal push in the u. S. And reductions in terms of regulation under the trump these willion, probably be favorable for the u. S. Economy. It has been supported for asset prices so far. The risk in this environment is the late stage fiscal thrush in the economic cycle, that we might see more fed tightening. Now it is support for the environment and the dollar. Toee talk about the policy version tightening, and everyone else going the other way. Do you think renewed expectations have gone too far . In 2016, they were forecasting four hikes. We only got one. There is a lot of uncertainty as to the Lasting Impact of the potential changes in u. S. Policy that we will see. We will have to wait and see how it plays out but i think the fed will be relatively measured in terms of this assessed as it waits to see how it plays out. Many other countries just are to participate in terms of rises we are seeing in u. S. Yields. Widening will exert upward pressure on the dollar. You look at the countries where the next move may be a hike and maybe relatively soon, i think it is pretty small. Youre talking about new zealand new zealand. On want to look at another that has been in the opposite , the pound. I want to throw up a chart to show how terrible the year has been for the currency. The slowest annual average since 1985, securely after brexit happened. Will it be another bleak year one does that turnaround for the currency . I am not sure it will be quite as bleak a year as it was once the case. I think the risk is baited for the downside of the pound. More economice bite from the brexit decision, that this may herald the next lower in terms of this. Timing. Difficult is the it has probably been less severe than many investors anticipated. , i amwe see more evidence i lookhat would be at the politics across europe as a whole and i inc. Politics is probably a more pressing issue for europe itself of this white. In the wake of recent terror attacks, that will be be a continued focus on Market Attention for the issue. Parityo will go below versus the dollar relatively soon. He joined us from singapore. Chairmanear from hsbc on facing the Banking Industry in the u. K. As the government negotiates the terms of the brexit. Heres a look at shares over the past year. They are gaining up 19 , in london, trading in the last year. One of the banks doing better, you could say. A gain of about 1 10 of 1 . This is bloomberg. Vonnie lets get back to yours Banking Sector and the challenges posed by the brexit vote. Earlier this month, Francine Lacqua sat down with Douglas Flint. She asked him what the bank wanted. The option you think might happen, the sooner you think , which meansity , tocan discard the options make sure for our clients and that they can begin their fares and to business as usual. The sooner we could get to an element of clarity. We know they had been working on some kind of a transitional agreement. When he think of the regulatory forms we have been, when reforms are finalized, there is usually a twoyear time implementation. Collecting information that is required and so on, it is that is as significant as changing the relationship with your, that you can say on day zero, we are moving from that system and day one, you can accommodate everything that has changed. That is some transition. In terms of planning, if there is not a believe that there will be a time of suspicion, plant the fact that there may be none. Classy have not done any assurances that it is a transition a phase they are planning for . No one has clarified that that everyone recognizes the importance of making sure arrangements on both sides of the equation are smooth for customers. We are a reflection of what is happening with our customers. Customers find things awkward and ugly and that will affect Economic Activity and that is good for the economist. It is an everyones interest making sure this is as smooth as possible. That was Douglas Flint speaking with Francine Lacqua. We had toward thclose of the stoxx 600 here down. 5 or that would bring it down from 1. 9 . Ftse 100 is not doing anything today, happy with its record. Estate utilities in real , the sectors really bring it higher. They are being weighed down by financials today. Vonnie this is the european i am vonnie quinn. Lets take you through all of the Market Action beginning with the stoxx 600 down another. 4 which brings the decline to 1. 8 or the year. Up 1 10 of 1 today as the number 45 point began with with 100. For the ftse down. 3 , drive lower by financials for the most part. Lets have a look at global macro movers. You can see the same indicators there. The british pound trading at 13234. Currency traders might have rested up for the year. In terms of yields, sovereign bonds are coming off a little bit and portugal as well as finland and the netherlands. They are seeing money coming in in france and sweden. Yield, jim and 10 year yield a 17 basis points today. Numbers in the u. S. Not making a difference, crews have been higher. Pretty much unchanged at 6634 per barrel. Here is abigail doolittle. Abigail not a lot of action but ever sodo have is down slightly. See, a veryou can modest decline, but this seems to put the dow 20,000 along with recognized. Since october8. 1 11. Movemarkets pick up and more back to the bearish direction we saw yesterday. The day is still young. Something for the year is very interesting happening. Look at 5464, annual ranges for the s p 500. Surprisingly, we have weakness at the beginning of the year. This year, the biggest range since to thousand eight, pretty amazed. If effect hundred of about 10 . At the beginning of the year, the nasdaq close to the bear market, the s p 500 had been in corrective territory. But everything we saw with again has given away on pace for of 10 . Winners and losers on the year, starting with winners, we are looking at nvidia, up two point 8 year on year. Strength for their business, one higher, natural gas is up more than 8 of the year. Of having a good of the year 99 as gold is on pace to finish up 8 on the year for its best year since 2011. To take a look at a couple losers on the year, health tripions for solar advisor, down about 75 hit by its business. Trip advisor down 45 of the year as it continues to try and stage a turnaround. Not so far this year. One day to go. Thank you. We have breaking news, potentially exploring a sale of the company. We know it plans to kickoff a formal option next month with six possible bidders in mind according to a person familiar with that situation. The maker has been facing pressure to find an acquirer that could help improve profit margins. But the big move came yesterday up 23 in yesterdays trading. Is after investors pushed the company la month to find an acquirer. That seems to be gaining steam. Clearly, getting a voice at the company. Taylor riggs has more, taylor. Taylor a menace been released after prosecutors determined he was not linked to a truck attack. They stuck document had been in contact in the attack which killed 12 people. The suspect was shot and killed by police in italy. Russia and turkey has broken a truce in syria and they want the u. S. To join Peace Process. Most ambitious yet in a russian and turkish it to solve the conflict. The u. S. Can join in onestop Trump Takes Office next month. Tensions between china and japan are rising again. Minister visited a controversial war shrine. Japanese wartime atrocities in asia since world war ii. They are not happy to you and the name taiwan to it de facto embassy. ,n the u. K. Labor park leader Jeremy Corbyn is accusing theresa may of being like can have king henry the eighth. Said it would be extraordinary if they has to vote on an agreement. News 24 hours a day tom by more than 26 journalists and analysts in one and 120 countries. This is bloomberg. Vonnie lets take a deeper look. How the next year will shape up. Russia and other emerging markets, the chief markets economist joined bloomberg surveillance this morning and discussed we will see another taper tantrum like it in 2013. Painful ises it so it seems to come out of nowhere. The ideare focused on that this is easy my that lasted forever. Purchase would be tapered, we had this reaction in emerging markets. I think investors are tuned to the idea that borrower costs are going up. External of all that vulnerabilities has come a long way since 2013, an awful lot since 1990 and 2001 we had a string of these. Economies,f emerging i would put her get top of the list. India, 20, that has come a long way. Most of their challenges are domestic. Up thisl go in and pull trade pierces 2014 when sanctions were imposed after the crimea situation, the rueful got. The ruble got hurt we starting to see it come back down again. No reaction to the idea of additional u. S. Sanctions. Have the russians whether the storm . I think they are weathering the storm. Whether they have is a different question altogether. Tempting to look at the chart and say a mark on the first batch and then a mark on Donald Trumps election, to say the currency weakened, the currencies come back. Story is what happens to oil prices. You get arlay crude, perfect 11 relationship to the issue is with the opec deal, oil is now back above 50, the ruble strengthened on the back of that. I do not think a stronger currency really helps russias economy. Given where oil is and the weak state of the russian industry and the fact that the russian demand and the economy is back, it needs a weaker currency to help get the economy going. Vonnie bloomberg surveillance also got the outlook on the u. S. From the chief economist at Wells Fargo Securities. In terms of tax policy, there may be some movement in the second half of 2017. Probably more the personal income tax side. A lot of chit us involved there and that would take a little longer cared for us, the Infrastructure Spending with respect to commodities probably takes longer. It will take a while to get the appropriations in place and to get the environmental regulations done. For us, more of a 2018 story than a 2017 three. You look at a rebound in commodities as francine was talk about, perhaps some help in the equity market and the u. K. , but this is a longerterm story. I do not think a lot of stimulus is coming in 2017. Wea look at 20 seem 2017, have strengthening data in the third and Fourth Quarter of the year. Do you raise your growth forecast irrespective of the new president . Only slightly. Do us, the recovery has to with Business Investment and structures and that is well p are we are not picking up the forecast very much. What theo see framework is for the economic decisionmaking. What is one thing being missed price on the markets p are you safe you do not get that much in 2017, do you think the market could say where it is or are they pricing the stimulus so they need a correction . Of judgmenta lot about how we move too much. What can we really get out of this . Clearly, we want to go for growth or the question is how much. The market is correcting now and adjusting for the realities that analysts like me and others are saying, it will take time to get legislation through. Incoming President Trump can propose, but congress has to dispose. Infrastructure spending will take a lot of time. Earlier, you saw with respect to taylor riggs, comments about trading laws with respect to china. It creates a lot of uncertainty. Money when do you think it will be a little less uncertain what President Trumps next movement will be once you get inaugurated on genuine 20th . January 20 . Do you give him three or four months so economists you and the markets have a better understanding of what the u. S. Is . Something from congress, particularly paul ryan, coming for than having some kind of a meeting or a desktop is with President Trump, simply indicating we have made an agreement and this will be our tax policy and spending policy going forward. Those are the meetings we are looking at to really give us a for good decisionmaking. We are otherwise simply guessing at this point. Chief economist at Wells Fargo Securities joining bloomberg surveillance earlier today. Coming up, Planet Fitness has seen its stock rise 46 in 2016. We hear from a ceo on how he plans to keep this up in 2017. This is bloomberg. Imie live from new york, vonnie quinn and this is the european close on bloomberg markets. Including a new gym membership as part of their twice 17 resolution, my next guest the ceo of plant fitness, he joins me now from the floor of the new york stock exchange. You will take over times square for the second year in a row on new years eve. Yes. January 1 is are on the corner here. We celebrate on the 31st. Good luck. Lets talk about the Planet Fitness. Year. E up for the how do you intend to keep it going through the next year . New years eve is the super bowl in my eyes. Helping the industry takeover new years eve, great for the winter months, it keeps the membership running. And that is great. How do you intend to keep your asck Stock Performance healthy as it is right now into 2017 . How much more of an expansion will you do next year . Sales,. Quarter, 10 our Marketing Strategy is thorough and dynamic. Toare marketing every month move off to the year honestly. Vonnie how many new gyms do you plan to open next year and where for the most part are you intending to expand . About 200 per year. There is not one geographic area. It is pretty much nationwide development. To 20e opening their 10th unit. Vonnie i will show viewers my bloomberg has if you look at the youinal, relative to peers, are trading richly, 47 times earnings. Some of your other peers are not as richly valued. Are you concerned at all about how investors are looking at this . No. I think they are starting to realize we are catering to 80 of the population that does not have a membership. We feel the rest of the industry is focused on getting fitter honestly. We are trying to get people off the couch and getting them healthy for the first time. Over 40 of members had never belonged to a gym in their life. The judgment free zone will really bring people in. Vonnie return on equity is 5 . Do you intend to expand . How do you intend on expanding that for investors . As long as we continue the growth strategy, we will continue to drive value back to shareholders. Vonnie what specifically what you do to keep you coming keep people coming back to your jim . Gyms are notoriously difficult to get people to keep going. Cleanliness is super important. That is one thing gyms are always getting beaten up about. We want to keep it fun. A lot of gyms can make it too seriously. Tootsie rolls on the counter for a free treat on the way out here we have pizza. You have worked out and you deserve a small treat, enjoy it with your members. Fill the camaraderie. So you want to come back. Vonnie the stock has a buy rating on it. Youre very wellregarded on your street. Judgment free. Yes. Give it a shot. Thank you. Time now for a look at some of the biggest is the stories in the news right now. South korea and japan socalled revenue,et players, expected to rise next year after three years of decline. For the first time in eight years, wanting that for London Housing market has underperformed. Home prices in london rose 3. 7 this year. More people found themselves priced out of the market. Key Financial Officers more optimistic heading into the new year. In the mist of uncertainty by brexit. The firm says on thursday, it is the new normal life. Bloomberg isatest this flash. Coming up, we have battle of the charts. Economist are arguing that even though the Unemployment Rate is below 5 , we are not quite near full employment. This is bloomberg. Vonnie time to take a look at some of the most compelling charts of the day and what it means for investors. You can access the chart always on bloomberg. Job stays quickly approaching something we have not been focusing on. I want to take a look at jobs day on friday. Stockaking this quarterly. People ask how can you create the Unemployment Rate is so low and we seem to be at full employment. We spoke with the chief and he says the rate is a misleader right now. In the is looking at blue line is the participation rate. If you can boost the particular participation rate, there is room to add jobs though people think were getting near full employment. I spoke with spoke with our economist and she says there are about 2 million jobs here we discouragedr those or still looking for jobs. Maybe about 1 would help. That is the number i will look at for next week. A quarterly basis. Im looking at a little bit of a different thing. Like to greg bands about, valuation. The pe ratio,d on adjusted seasonally made famous by robert shiller. On the blue line, i have the average ratio for the s p 500 appeared in the green, i have one standard deviation. It has been above the standard deviation for 42 months. You can say this is alarming. What happened last time we stretched above this before. It happened in 2000 followed by a crash. 2007, also followed by a crash. I do not want to give theres all the room to run here. If you have listened to this ratio and sold every time it one above the standard deviation, you would have lost out on the second longest all market in history. Something to Pay Attention to but perhaps we should take it with a grain of salt. Vonnie i love both of these charts. These are the questions we are all focused on and that we will not know the answer to for a long time. Am i right . Absolutely. Case, ii think in that could be here all day long try and decide which both have a lot to say about what is in store for the future. Unemployment,s one and done. Yours is 3891. If anyone else wants to take a differentve us a result, feel free and send us for now, that is my decision. Take a look at where european markets ended the day. We took a little off the most part. It was up. 2 . Companies that really made a difference today, and telecom leading the day leading the way despite financial striking. That is it for the european close here join us for a day of trading tomorrow. His bloomberg. This is bloomberg. Vonnie welcome to bloomberg markets. Oliver we will be covering stories from los angeles to damascus and taipei this hour. U. S. Stocks are fluctuating between gains and losses following their biggest slide into months yesterday. This happened as the dollar dropped and metals rally. Rallied. The American Congress is gearing up to appeal obamacare. But what is the plan for the 20 Million People who gained insurance doing during the health care law. That there mays be time for a baby boom in u. S. Oil. Abigail we are looking at the second twoday decline in the dow since the election