Into their bidding processes. A last goodbye from postnl as the board unanimously rejects a third and final offer from bpost sending the dutch mail group to the bottom of the stoxx 600. Good morning. We have a stram Central Bank Decision for you from the indian central bank, keeping its rate unchanged. Saying all six members in the Monetary Policy committee voted in favor of the decision to keep rates unchanged. That is a bit of a surprise. The market was looking for a 25 basis point cut to the rate for the rbi. In part because of the demonetization of the economy that sent shockwaves through the economy the last couple of days but also the impending fed hike. Lets look at the currency and how its faring against the u. S. Dollar. Its been under severe selling pressure in the past couple of weeks. Its not coming up, but well show you later on in the show. The central bank is saying the withdrawal of old notes to help temporarily reduce inflation by 10 to 15 basis points october to december, that was such a very kind of move where you pull the carpet out from under people. A big shock. Huge shock. They wanted to curb tax evasion and corruption in the state. About you see the you know, basically the videos of people standing in lines forever, to exchange the money at the banks. Crazy. You have 20 minutes, then your money is worthless. Looking at European Equity markets. There we go. The rupee, seeing it fall against the u. S. Dollar. Yeah. European equity markets this morning are higher, higher across the board up by a shy of a percent or so. Thats mirrored very much in our main European Forces with all of them trading in positive territory. We were called higher, and were hanging on to those gains, up with the dax, and looking at some sectors out there, seeing some green, basic resources, outs to, banks up by 2 . Credit suisse is the reason for that. And the italian banks. Who said buy italian banks. You said that. Only a couple days in. Best twoday run since 2012. I guess a lot of short covering. We dont have any news yet. No news. Again, i guess a basic argument i was discussing this at milken yesterday, i was at the milken event yesterday and talking to people about whether or not its too early to get in and buy the italian banks. Do you think italy will be a place with no banks or will they do something to try to rejig things, save things. By the looks of things, theyre here for the time being. Were two days in. Credit suisse has issued a gloomy outlook downgrading its profit targets for Asset Management and trading activity in asia pacific, the bank is also confirms its ahead of schedule when it comes to cutting jobs. It is aiming for an additional 1 billion swiss francs in savings by 2018. The group says given the unsupportive Market Conditions were facing the realization of other profit objective plan is now more geared to the delivery of cost reductions. When i spoke to Credit Suisse following the release of the banks Third Quarter numbers at the beginning of last month, they sounded confident about the bet on asia. We have outperformed everybody in asia, 160 billion in Asset Management and the key comment is the ability to grow the Wealth Management revenues, and the Investment Banking advisory revenue. Wealth management is up 14 p. Advisory and underwriting up 98 . Over 115 million. So these strategies are working well. Part of asia is under pressure, thats not surprising. Equities, volumes are doin between 13, 14 , numbers reflect that. For what is driving the longterm strategy, 76 of familyowned businesses are worth more than a billion in the world are in asia. So this focus on them has been very good. That was the ceo of Credit Suisse speaking to me at the beginning of november. Maybe even then he did hint at some weakness in the Investment Banking part of the asian business. By in large what were hearing there Credit Suisse today is no major surprise. People said since he announced the major overall in 2015, the targets for 2018 were way into ambitious and they would have to come down at some point. What analysts are saying this morning is the new targets are still above the consensus forecasts. Question is will they have to come down more than this . The job cuts as well. The 6,000 job cuts had been announced as well previously. Theres speculation we could be hearing about more jobs to come. There was a report out in one of the dailies. They are saying they cut more than what the target was at the beginning of december. 6,050 to be precise, and targeting 1 billion swiss francs in cost cuts, thats why the stock is trading higher. Shares have been on a roller coaster ride. They have fallen 40 since october 2015, but now theyre up some 40 from the july lows. At some point they were trading well below the 10 franc handle, now at 15. 08 this morning. That must be welcomed news for Credit Suisse management. I think they have felt misunderstood by the markets. Like you say, a lot of this was anticipated. Maybe its just confirmation that things are happening, investors are buying back into the stock. They had weakness in debt trading, slump in the equity business. Theyve not been focusing on Investment Banking but instead Wealth Management. Lets look at the currency markets. Steady for euro dollar and the dollar ahead of the ecb meeting tomorrow. Euro dollar up to 1. 0725. On monday we were not too far from the 1. 05 level. And the aussie dollar is under a bit of pressure, 0. 7436, down a third of a percent after gdp numbers came in below expectations. Lets get out to peter rosenstrieff, all eyes on the ecb. Will they or wont they taper. We think they will taper. We think going down to 60 billion and extend nothing december is most likely the move. Were seeing the data from the eurozone continuing to improve and expectations that the focus is purely on the medium term inflation outlook gives them wiggle room to push that further and further out. We think with the healthier economy draghi will take advantage of that and slow down the reliance on Monetary Policy and quantitative easing. If they taper, what does that mean for the markets and risk sentiment . Will we see a taper tantrum to the same extent weve seen in the u. S. . I dont think so. Well see a taper tantrum in the developed markets. The equity markets have been supported by very loose Monetary Policy. Its always been stabilized by the fact that the fed is heading towards normalization, the boj and ecb will continue to stay loose. Without that i think that the developed markets need some room to correct on the downside. Do you think theyll change their terms to the Program Given the shortage of bonds i keep hearing about . They keep running into supply issues. I think that they dont want to become the only player and crowd everybody out. Theyll continue to find ways of micro tuning policy, but in actuality pulling back and heading towards in slow steps towards that normalization idea. If we do see any signs of tapering, how much of a boost do you think that could give the euro . I think the story heading into 2017 has always been about the dollar and the fact that the only game in town was the fed raising Interest Rates, looking at u. S. Short end yield curve heading higher. If we start now having to price in higher rates in eurozone, i think it could give the euro significant boost and change the dialogue were hearing so far in the street. What would that mean for the dollar, even now the trump rally is fading out. If the ecb tapers, that would mean a further beginning to the end for the trump rally. The trump rally has been based on a thin underlying fundamental. Its a gentleman that has never had official policy mentioning the fact of infrastructure spending, about 1 trillion. All of a sudden the markets are buying defense, infrastructure trades. This is a thin trade in our book. You know, the fact its tapering now or the rally has slowed down significantly is not a surprise. If we have now value trades in the eurozone supported by higher yields, we could see a reversal of the euro dollars. What should the market be pricing in in terms of fed hikes next year . Currently pricing in two. Some people might say its underappreciating what the fed will do. Trump has the power to replace certain members on the fomc. Absolutely. Were basing a lot of this trump decisions on extreme amount of speculation. Hes never had to deal with Monetary Policy before. All of a sudden hes replacing janet yellen. I dont think hell go quickly into places that hes not very comfortable with. I suspect setting Monetary Policy in the u. S. Is one of those areas that hes not keen to go after. So were hearing its unlikely hell replace fed members any time soon. I suspect the fed will allow the u. S. Economy to continue to run hot as long as inflation doesnt spiral out of control. What were seeing by yields and break evens is that expectations for higher Interest Rates remain relatively subdued. So were looking for a rate hike of 25 basis points near the end of 2017. A very, very shallow normalization, even the total rate hikes in the u. S. Should probably only reach about 1. 5, nowhere near the that the market or the fed is sort of expressing. This dollar rally in our minds, barring a significant risk event in europe should start teetering out now. While were on the central banks, the australians, they saw gdp contracting in the Third Quarter for the first time in five years. Are all bets gone that the aussies will hike rates . I think the bets for the tighter Monetary Policy and the rbas is probably off the charts now. Again, were seeing commodities come back slowly. Were seeing a resurgence in china. I think things could turn around relatively quick. A lot of speculation in australia is based on the macro environment rather than the domestic conditions. I think things are turning around. The loose Liquidity Position starts filtering through, seeing growth in key areas, the u. S. , china, and that should benefit commodities in australia. Always good to see you. Thank you very much. Italy is reportedly preparing to take a 2 billion euro controlling stake in monte dei paschi siena. The government is planning to buy junior bonds to boost the stake to 40 making it the biggest shareholder by 4. As we were talking about the italian banks have seen a run over the last 24, 48 hours really with a lot of them closing substantially higher. Yesterday bmps up. What do i think . Is it too early to buy these italian banks . Streetsignseurope cnbc. You can tweet us directly, carolincnbc or louisabojesen. Is it conviction buying or short selling . To me it looks like short covering. 12 bounce for italian banks in two days when no news has been announced and theres still so many questions over the financial future of them though, again, theyre penny stocks, not worth a lot so that 12 , it is still 12 , but worth very, very little per share. And we have these unconfirmed reports of potentially the government could be looking to stump up cash as it were for bmps as well. Talking about the central banks. Coming up, the reserve bank of india leaving rates unchanged a closer look at the rupee reaction and much more on street signs. Well be back. Good morning. Welcome back. Youre still watching street signs. Sales growth are off the charts, those are the words of tim cook speaking about the success of the apple watch. The Research Firm idc paints a different picture saying watch sales were down by 71 in the Third Quarter. Data from another market source, slice intelligence, showed tepid sales in july and august but reveals a change in fortunes when the watch was updated in september. The apple watch was cooks first product when he took over the reins from steve jobs. Maybe it doesnt matter anymore. The facts dont have to match what we say. Hope not. Samsung shares hit a record high for the second straight session after the u. S. Supreme court ruled in its favor in a longrunning patent case with apple. The judge decided to throw out a previous decision that samsung should pay nearly 400 million in smartphone profits to apple due to copyright infringements on its design. The case will be sent back to the Appeals Court which will have so evaluate how much they will have to pay in damages. Indias Central Bank Left the key lending rate unchanged at 6. 25 . Pauline is in singapore and has more on the market reaction. Good morning to you. This is a big surprise, the rbi holding rates steady. Consensus was that it would cut 25 basis points from the Interest Rate in order to help alleviate some pain that a lot of citizens are feeling because of the demonetization drive. In fact, they decided to hold steady and the nifty is reacting, down 0. 4 . The bank index down. The rbi said it is prudent to look through the transitory factors like the withdrawal of the 500,000 rupee notes. They have a wide inflation range that theyre trying to hit between 2 to 6 . The rbi says it would like to hit 5 inflation between january and march of next year. Right now its around 4. 3 . So trying to get that inflation target up at the moment. Lets look at another surprise that came out in china. This was after the close. The shanghai composite ending up 0. 7 . After the market close we got reserve numbers from beijing. It shows that it fell more than expected in the month of november. Down to 0. 35 trillion, the lowest level since 2011. The pobc has been trying to stem the capital outflows. Reserves fell 69 billion for the month of november. We will see reaction to that perhaps tomorrow. All of this came out after the market close. The nikkei 225 up 0. 3 , as softbank surged up 6. 2 as ma Masayoshi Son said he would create 50,000 jobs in the u. S. Over the next few years. The big news is whthat the Interest Rates in india are holding steady. Citi traders orders exacerbated the fall of the pound to the left level in 31 years. The u. S. Bank responded that it managed the situation appropriately. Postnl has rejected the third and final offer from bpost. The board of the dutch post the company turned down the rivals bid citing concerns over the belgium governments 40 stake in the company and said the acquisition could have a negative impact on the companys resilience. A reported probe into the production of commercials in the United States has sent shares in wpp and publicis lower in european trade. The wall street journal said the u. S. Department of justice was investigating whether tenders for advertisement production were rigged to favor agencies over independent producers. Cnbc received no comment from publicis on the report. Well bring you updates as we get them. Let me bring you a note from the analyst that says while it does not expect any number changes on the back of this article it adds to the negative sentiment that has built up through the u. S. Advertisers trade body. Lets talk more about stock picking. Alexis dow joins us around the desk. We love your stock picks. Lets kick off with mexican real estate. Why do you like mexican real estate when trump is actually so negative on everything mexican . Thats the reason why were positive on it. The market is discounting a lot of macro bad news. I think theres the risk that trump will leave nafta and put some also some protectionist measure in the u. S. The market in mexico is pricing that in. You have the mexican market going down, the peso went down a lot. We believe you have opportunities because theres a risk that he might not be as aggressive as he says. So you look today for example, it has never been so cheap to manufacture in mexico due to the peso. During the recent history of the last ten years. If people say trump is pragmatic, he is pragmatic for u. S. Companies. In the u. S. You have wage pressure, you have a lot of people who are fighting for minimum wages as well. So, its not that easy. We believe the risk reward in real estate in mexico is interesting. You have the Largest Holding there, trading at a 50 discount towards u. S. Peers. Dividend yield of 8 . We think theres clear value there. You have little hotel chains, like hotel city which is really it is almost divided by two in the last year and a half. Its an industry facing a lot of consolidati consolidation, and thats benefiting from the lower pace so. So you still think mexico will suffer from trumps policies, but some of the stocks have suffered too much, and theres a bargaining opportunity. Its exactly the mirror position of what you were mentioning before about infrastructure in the u. S. Infrastructure in the u. S. Is basically the other way around, stocks price went through the roof, nothing has been done so far. Analysts are putting, like, steel industry, u. S. Steel earnings estimates doubled for next year, same in engineering construction, sentiment, aggregate, all of these stocks went through the roof. The risk reward is better in mexico. Youre positive in mexican real estate, you also are positive in mexican toll roads. At the same time youre short u. S. Pizza companies. Thats a funny hedge. Yes. Whats the Pizza Company deal . Infrastructure, toll roads in mexico, so the strategy is to go into defensive businesses, into risk country. Just running out of time. Papa johns and dominos . We think its way too expensive. Dominos pizza trading at 41 times pe, it has a lot of pressure coming from cheese, from commodity pressure coming up, from wages. Also more and more accident with delivery trucks, so maybe higher insurance costs. At the end of the day its a business that that has no barriers to entry, some analysts are pushing it by saying its a Technology Company because you can order it online. We think its basic. Even the mom and pop shop can have access to those. Youre the first person coming in here loving mexican stocks and shorting u. S. Pizza. And the first person to come in and talk about pizza. I like that, too. He didnt bring pizza. Next time. Thank you very much. We need to take a quick break. Check out World Markets live. You can also find us on twitter, carolincnbc or louisabojesen. Eforyx welcome back. Youre still watching street signs. Im carolin roth. Im louisa bojesen. Heres your headlines. Investors shrug off lower Asset Management targets from Credit Suisse, buying into the swiss banks increased cost savings plan. Italian banks also posting strong gains on a report the government is ready to take a majority stake in monte dei paschi siena, while the treasury says it will not tap eu funds. Commercial crunch. Shares of ad giants wpp and publicis slide after the doj reportedly announces a probe into their bidding processes. The reserve bank of india keeps its key lending rate on hold. Hi everybody. Welcome back. Just want to get you some data. The uk october industrial output do down, it was expected to increase. The industrial output level minus 1. 1 year on year. The october industrial output the biggest fall since 2013. They are saying that manufacturing has been hit by small falls in output across a range of sectors, and that upward revision to Third Quarter industrial output is too small to affect gdp growth, and that output has been affected by a sharp fall in oil due to a shutdown of the buzzard oil fields. So manufacturing outputs for october, minus 0. 4 . Looking at significant weakness from this set of data. However it does look like it could be a rone off due to the close of this oil field. Keeping in mind that the pmi data earlier this week for the uk was very upbeat. We have seen the vast majority of uk data being strong since we had the brexit referendum vote. The Services Data is the data that counts. The uk economy to a large extent depends on the Services Side of the economy. Lets look at sterling dollar, 1. 2617 down by 0. 5 on the day. Quite a big reaction to the data. Lets continue our look at the markets. Want to show you what u. S. Futures are doing. Theyre looking modestly higher. S p 500 seen up by a third of one point. The dow jones set to add 12 points. The nasdaq set to add 1. 7 points. This after yesterday markets were slightly higher. We saw a close for the dow, russell 2,000, narrow trading range. Moving on to the european markets, the dax is trading at a oneyear high. The european banking stocks are at an 11 month high because of Credit Suisse. Given its increased cost cutting plans, italian banks also on the best twoday run since 2011. There is this report out there saying that italys preparing to take a 2 billion euro controlling stake in bmps, thats why youre seeing shares moving to the upside, up by 7. 72 . Last but not least, heres a quick look at the currency markets. Again, very little change here today. Euro dollar fairly steady around the break even mark, 1. 0723. Dollar is trading higher against the japanese yen. Everyone is waiting for the ecb. Will they or wont they taper . Thats the big question. Pound sterling under pressure after the poor data. Angela merkel has been reelected as chairman of her Christian Democrats Party winning almost 90 of the 1,000 delegate vote. In her speech she vowed to bring a tougher stance to immigration and made her position on brexit clear. Translator we will not allow for cherry picking. The four basics freedoms have to be kept, Free Movement of people, goods, services and financial products, only then can there be access to the Common Market that has to be the rational for negotiations with great britain. Shes changing her rhetoric a bit towards immigration then. Yeah, shes toughening her stance on immigration, toughening her stance on her refugee policy by this example that she is calling for a ban on the full veil, thats a symbolic thing. There are only approximately 1,000 muslim women wearing a full veil in germany. But its a slight move to the right. Im joined by someone who knows that better than me, and also the implications of what Angela Merkel means for germany and the mood among democrats, thats the deputy chairman of the cdocs parliamentary group. Thank you very much for joining us. First question, how actually what do delegates think about her speech and what is the mood among delegates . Her speech was a complete speech. I guess she has tackled important subjects. At the end of the speech, it was very emotional for her because she tried to appeal to the party to stick together, to join her, and to support her. This is quite unusual for her, so we are looking forward to year 2017 which will be hard, but the party will be on her side. Internationally the fact that shes now calling for a ban on the full veil, the burqa, thats gotten attention. Does that mean shes moving to the right to regain voters . People in germany, were not as content with the policy over the last 12 months, we have to give answers, i guess the point is that were an open country, were welcoming, but we have to defend our culture. Has Angela Merkel suffered a lot from her open door policy . When it comes to the refugee crisis or can she actually deal with these damages . She has to work hard to convince Party Members as weve seen with the result of her election. Approximately 90 , this is weaker than the years before. But at the end of the day, the party sticks together and i guess round about 90 is not too bad. So we are in a good way. Talking about the others, its not only cdo members who are here who she has to convince, she needs to regain voters, so voters for the alternative for germany, the populist movement, how much of a threat is the afd . All the parties are a threat. Not only an issue in germany, the netherlands, the uk, even the United States. This is a globalized problem in the meanwhile. Giving answers is not only defending our position. One part of her speech was not regarded in this way, as it should have been. The part where she has spoken about the digital world, about the industry, and about the changes with emobility, with data and things like that. What we have to do is paint a picture of the future. The picture of the future is not only a picture of defending against migration, refugees, things like that, but to show the way how society, which deeply depends on its Industrial Base will go the next century. So the positive message is like key when it comes Angela Merkel. Is that what you mean . The positive message should be that we have solved a lot of problems regarding the migration issue and that we are looking to the future, were painting this picture and saying okay we have some ideas about a new modern society, about a new modern economy, and things like that. I guess this is where populist parties dont have any answer, because what they try do is defend the past, to tell the people, okay, we will rebuild the world as it has been 20 years ago, and i guess this is no alternative. Thank you very much. So, you see in germany theres a problem with the populist movement, but according to opinion polls, the potential vote percentage is roughly 20 for the afd. Thats sounding like a lot, but not as big as in other countries. With that, back to you. Thank you very much. The London Science Museum is opening a new mathematics gallery. Doesnt sound right to me. Sounds good. Like if you could get the kids involved early on. Adding, subtracting, why stuff makes sense. You learn all the stuff and you never use it your life. Is it the hope that the new wing will allow new interest in s. T. E. M. Subjects. It has attracted widespread interest from philanthropists, with David Harding with the largest donation. Nancy is there with mr. Harding. It may not sound exciting to you, but standing here this room is full of excitement. Its a gift coming from David Harding, who im pleased to say joins me now. David harding, ceo and founder of winton. Thank you for joining us. You have given the biggest donation to this Science Museum ever. Why is this project so important to you . Well, at winton capital we use mathematics very much, and what we do relies heavily on the use of mathematics. When the opportunity came up to associate ourselves with this new gallery and Science Museum, i seized it. Were pleased to be associated with it. You talked about the importance of mathematics to the uk economy. In the aftermath of brexit, are you concerned about the uk to draw on stem talent . I think mathematics is integral to all modern life and modern economy. Its more important than ever to make sure we have a strong stem base in this country and inspire and teach young people to pursue these difficult and challenging subjects, and even people are put off by their education. You donated and talked about opportunities for londons Financial Center in the aftermath of brexit. How do you rate the governments response in bringing about these op tooportunities so far . I want britain to do well, i want brexit to be a success, i wish theresa may good luck in making it work well. In the spirit of optimism im hopeful that we can turn it to our advantage and everyone can proceed happily and amicably together. Math is at the heart of your business model. Especially when it comes to trying to beat the market. Thats been more challenging this year for the hedge funds, and what have the Biggest Challenges been on returns . A big challenge for the whole Hedge Fund Industry is the era of Interest Rate oppression. Zero riskfree rates. Its tougher than it used to be for hedge funds to generate the returns that they advertise. Winton capital, one of our main things is trend following. This year theres been some trends, but mostly those trends have been reversed. Oil was going down, halfway through the year it starts to go up. Bond yields trending down, then from the middle of the career from more recently they start to go up. The trends have reversed. That doesnt allow us to make profits so weve made small losses, but this is part of our investment technique and longterm expectation. On the bond yields going higher, are we seeing a paradigm shift here . A new normal . I dont know. Luckily i dont have to have longterm views. When you say a new paradigm, you a are talking about a longterm thing. They adjust the positions gradually as things evolve. So we never get it too right, we never get it too wrong. We are agnostic to the longterm future. I feel the same things that everyone else feels when they read the news. Gosh, theres been a change, an upswelling nationalist economic sentiment, but i dont trust those feelings for the basis of my investment. Winton capital made its name in the 2008 final crisis, with 20 returns. Will you ever hit double digit returns again . We are much lower risk than in the old days. We did two years ago we made 14 , 15 a couple years ago. Because the oil slide. So we can still make double digit returns in the event of there being big moves in the world. Those big moves can be good or bad. Funny enough, we have a successful business in china, thats making 25 , 26 this year as a result of the huge rise in industrial commodities. Theres a big trend at the moment in rising industrial commodity prices. We see that in china but not the west. You touched on the populism effect when you look at whats happening this year in politics. Theres also a real antitrade sentiment in many corners of the world. Youve spoken before in your famous paper about making money through mass, adam smiths imperial model, why is that model going so wrong at the moment in terms of the political backlash surrounding it . Adam smiths basic idea is one thing that makes us live better off is the division of labor. Dividing labor up into specialized everybody concentrating on their specialty, everybody gains through that. Thats been proved right over 300 years. When do you it on a global level you run into conflicts between political systems globally and economic systems globally. So now were seeing the collision of two inconsistent systems, political and the economic. That played out over the coming decades. Does that concern you from an investor perspective . Will this make it more difficult to create higher returns Going Forward and could you give us a better idea of what youre expecting for the year ahead . Youre talking about part of the history of the world. Talking about the future history of the world. The future history is not determined i very much hope that we continue to enjoy global rising prosperity for everyone combined with political peace for everybody and just enough uncertainty and instability so that winton capital can make money as well. Thank you very much. That is David Harding, ceo and founder of winton, talking about the global change, different trends here, very focused on the political standpoint and for investors, here at the Science Museum i can tell you mathematics is all alive and well. Trying to inspire new hope for a new generation Going Forward. Have you ever used sign and cosigns since you had to learn about it in school . Sadly, i have not. It is giving closet geeks like me a new thought about really going back to those old math books. Its quite scary when you think about how much you forget over the years. You should come take a trip down here. Ill have to go check it out. I remember none of it. After years and years and years of math, none of it. She just outed herself, shes a closet geek. Coming up on street signs, investing on the back of trump. Well head out to tokyo for the latest on the president elects softbank announcement. Good morning, everybody. Welcome back. Youre still watching street signs. Japans softbank pledged to invest 50 billion in the u. S. In a meeting with president elect donald trump. Hi, yes. The deal was announced tuesday after mr. Trump mr. Softbanks ceo Masayoshi Son in a meeting that lasted 45 minutes. This is masa of softbank from japan. Hes just agreed to invest 50 billion in the United States and 50,000 jobs. Hes one of the great men of industry. So i just want to thank you. Thank you. The two men had never met before, and the meeting was arranged through a mutual friend. Softbanks son came out of the meeting saying it was a Great Success and revealed that the incoming president talked about promoting deregulation. Son said he believed the Trump Administration would take action to accelerate Economic Growth and that he is ready to invest aggressively in the u. S. Again. Details of the planned investment remain unclear but it will come through a fund that softbank will establish jointly with saudi arabias sovereign wealth fund. Softbank is best known as a mobile carrier in japan but has been investing heavily in Tech Companies overseas including the purchase of sprint in the u. S. Three years ago. The plan was to merge it with t mobile and hoping to take on larger rivals, but u. S. Regulators refused to authorize the deal. Son said deregulation in the telecommunications was not it on the agenda, but many suspect the merger under trump may go through. Softbank shares surged more than 6 today. Thank you very much for that. This deal was in place before, and donald trump is he just using this as another opportunity to celebrate a pr win . Am i misunderstanding something here . Seems it doesnt matter. Can take credit for whatever. Doesnt matter. Okay. The mrektd topresident elec twitter to urge the government to cancel its contract with boeing for the air force one plane. He tweeted boeing is building a brandnew 747 air force one for future president s, but costs are out of control, more than 4 billion. Cancel order. Boeing responded saying they only had a 170 Million Contract in building the future capabilities of air force one. The president elect introduced his nominee for secretary of defense, general james mattis in North Carolina. Steve handelsman has more. General mad dog mattis. Reporter thanking North Carolina for his win, donald trump went to fayetteville with his pick for defense secretary, retired marine general james mattis. Under his leadership, such an important position, we will rebuild our military and alliances, destroy terrorists, face our enemies head on and make america safe again. Im grateful for the opportunity. Ladies and gentlemen reporter earlier in new york, trump showed off the ceo of japans softbank. Hes just agreed to invest 50 billion in the United States and 50,000 jobs. Reporter trump charged a big u. S. Employer, boeing, whose ceo opposes trump trade policy is overcharging for new air force ones. 4 billion, cancel order trump tweeted. We want boeing to make money but not that much money. Reporter trump wants mattis to expand the u. S. Military that he left in 2013. Formatties to be confirmed, congress has to pass a waiver of a law that blocks military retirees from serving as secretary of defense for seven years. Im steve handelsman, nbc news, capitol hill. A quick look at european markets. The ftse 100 up by 1. 3 , despite poor manufacturing data. The dax higher to the tune of 1. 4 . The ftse mib also higher by more than 1 . Plenty of buying still in the banking stocks. U. S. Futures are indicating the type of session were seeing, 4 1 2 hours away in the states, we could be seeing a flat to slightly higher open. Thats it for today. See you tomorrow, same time, same place. Bye for now. Oryx good morning. Riding the rally, u. S. Stocks soar to record highs, and today Global Markets are jumping on hopes of more ecb stimulus. Washington watch. The ceos of at t and time warner heading to capitol hill to defend their deal. Well tell you what theyre expected to say straight ahead. And politics and twitter, jack dorsey says his social network is not responsible for Donald Trumps election. By adds its complicated. The twitter boss in his own words coming up. Its wednesday, december 7, 2016. Worldwide exchange begins right now