Receiving a 750 million takeover offer from a japanese conglomerate. Buying back shares in spreadbetter ig after changes to cfds. Can you do the banana song . I only know that one part. Gwen stefani does it a billion times better. European equity markets opening up on a relative flat note. Thats what were seeing at the moment. Slightly mixed markets for the european boerse. We have the ecb out of the way yesterday. We were doing the Rate Decision yesterday, looking at the markets afterwards, not holding ton that positive reaction today. And people probably repositioning now or thinking heading into the weekend that we have less than a week to go before the fed is upon us. The ftse mib and xetra dax off by a bit. The mib being dragged down by some banking stocks in italy. Lets recap the ecb, lower for longer. Thats the new asset purchase policy that the ecb introduced at the december meeting. The central bank trimmed its Bond Buying Program from 80 billion euros to 60 billion euros per month. It extended the length until december of 2017. Mario draghi insisted that the reduction in asset purchases should not be seen as tapering. First of all, the governing counsel is acting in a pragmatic and flexible way to risks that may materialize in this time. Second there is no question about tapering. Tapering has not been discussed today. Annette is in frankfurt. We had adis cushion about this yesterday about what constitutes tapering. Draghis definition is if you take the asset purchasing down to zero, and he said that is not what they talked about. Thats the case. When tapering came up first, i think never people heard about that word, taper. Its out of the barbershop, isnt it . I think what he really wants is not to use the word taper and also not to have market parties pants believe the ecb will unwind. He was stressing various times during the press conference that the ecb will stay in the market. They will keep on driving prices in the market. And that is probably longer also than 2017. I had to ask him why he is actually putting an end date to his program, as they have not reached the inflation target at their forecast horizon end in 2019. So take a listen of what he had to say there. Our program says it goes until the end of december 17 or beyond, and the Government Council seeing adjustment to inflation consistent. So it is in sense a openended. It is state contingent, we will say, rather than openended. So theres a clear bias between what the ecb is actually doing, trimming the monthly purchases, the flows, so to say, to 60 billion euro, at the same time they are telling us that the inflation forecast will not be reached at the end point of their forecast horizon. That is making a lot of people believe that actually there is a growing discontent to put it mildly inside the governing council for more additional stimulus. It was quite clear in the pass that the camp of the bundesbank was was growing and not getting smaller because people are starting to think that more stimulus is not actually helping the economy, and that the effect more stimulus is rather hurting, and that the benefits are smaller than the adverse effect. So it seems as if there is more of a political discomfort inside the governing cou inin ining co bundesbanks president has not voted in favor of the program we heard yesterday. So i think the bet is 2017 is the year we will see more of that happen, more discomfort inside the governing council. Back to you. Thank you very much. Lets bring in another voice, jeremy stretch, ed of fx strategy joins us. Do you want to weigh in on the semantics discussion . Was it tapering or not . If you look at the fx markets, they did not think it was, the bond markets thought it was. We are in an exercise of english language discussion to try to interpret one individual word and what the presumption of that is weve seen an extension of the bond buying but at a lower rate. Draghi would say were going back to 2016, so its not tapering, because its not taking the bond rate back to zero. The markets will assume even if the ecb is going to be pragmatic f we see the Recovery Process extend through 2017, as we get to autumn of next year, we will be talking about lower levels of bond purchases in 18, which will be much closer to a tearing debate. We are having this exercise in language discussion, ultimately we will see the euro remaining relatively cheap in the shortterm as markets consider this extra bond buying and expansion of the ecb Balance Sheet. So the consensus is the one deciding factor that will ultimately push us towards tapering, real tapering under Mario Draghis definition will be inflation. But for the 2019 forecast, 1. 7 , that was on the lower side of expectati expectations. That tells us the ecb will not be hitting that target. Could that target be changed if we look at the opec deal that was not included in the ecb forecast . Indeed. We are talking about 1. 7 , which is close but not at the 2 threshold. It is substantive enough to be near that target to suggest that the ebc is getting close. If you go through the mechanics of this and argue that perhaps the numbers are a tenth or two below the where the market would have expected, its not like having the assumption of Higher Oil Prices in the mix that does suggest that doct cpi will be c to that number. They talked about core inflation, another justification to maintain the dovish credentials that he was clearly trying to outline during that press briefing and keep the euro from appreciating the way it did on the headlines yesterday. This is the man who is the former head of the bank of italy. How much of this was political that they wanted to make sure that theres market support through the italian elections . I dont think its just italian elections. We have election risks throughout 2017. If we push reducing bond buying out towards the end of next year, we are almost pushing that bond the time pohorizon of the election, and you dont want to go into that with obvious discontent of the council. You dont want that to be out in the open, particularly in addition to additional discussion about bond purchases in the immediate run up to the german elections. Not just italy, though i think mr. Draghi will have to be mindful of some of the byproducts in terms of the pressure on the italian banks. We saw a steepening of the yield curve. Banks are loving it. Indeed. Thats one of the issues that perhaps Central Banks are looking at globally, trying to encourage an upwards sloping yield curve that provides some relief for the banking sector. If you want to try to relieve some of the stresses in the system, to provide the opportunities for banks to have better blaanking sheets. Running into the fed hike next week, i guess thats 100 priced in. Youre already assuming the fed hike. It is 100 ed in, isnt it. To what extent can the euro dollar fall based on that or is most of it baked into the cake . I think most of it is baked into the cake, but we could have a test into the 1. 05 area. May be tough in the shortterm ahead of the option expiries today to get through that level. If we see Michigan Sentiment number today pushing back higher, and thats suddenly the portent what is relatively good leading to sentiment, that may be seen as the euro dollar having another crack at 1. 05. Theres a risk of dollar longs being trimmed into next week. We saw that into last years december fed meeting. When you look at dollar longs back at levels we have not seen since january, there was a case for profit taking before the move. You say trimmed in the next week. How about next year . A number of our guests are talking about whether the dollar long position will continue through next year or whether that will have to reverse as well . I think we are too bullish or markets are getting too bullish in prospects of the dollar throughout 2017. The first half of the year will have the dollar having further traction. If we see the index up towards the 1. 05 threshold that will act as a head wind for the u. S. Recovery process. We will not see the rapid increase in long yields that some might suggest. It will be a case of the dollar having a good start to the year. If you see dollar yen blowing up towards 1. 20, that might cause some consternation in terms of the new administration. Thats giving a competitive advantage to other nations, which is not necessarily going to sit particularly well. Thank you very much. Have a good weekend. Jeremy stretch from cibc. Now, the ecbs decision to change the parameters of Quantitative Easing Program took some by surprise, one investor welcomed the news. She told cnbc the european Central Banks decision sends a positive signal to investors across the globe. I think that the ecbs decision is a good one for the activist community. It shows the support from the ecb and the image that europe has to the rest of the world. Europe is going to grow a little bit next year. Employment rates are going to continue to decrease overall in europe, even though they stay quite high. So it sends a positive message to the world that the main bank, the main regulator in europe is positive on the outcome, which actually enables them to taper back bond buys but extends the start tapering. Thats one interpretation. Others might say Central Banks have run out of territory. Theres no more road they can continue on. They have to pull back from the amount of stimulus. What interpretation does that give you . Thats one interpretation, its not ours. I think if they thought they needed to continue supporting europe, then they would have done so. And if they decided to start tapering, its because they have strong signals they should be doing so, meaning europe is going to start getting a bit better. Not much better, but at least a bit better. Central bank watchers will now be turning their attention stateside to the fed meeting next week. Former dallas fed president , Richard Fisher told cnbc that he does not think stock market enthusiasm will be dented by a rate hike next week. Take a listen. The markets is well discounted in the first increase. My personal view is theyre behind the curve. We need several to catch up. What really counts is what they do with the reinvestment of the system open market account portfolio. Theres 1. 1 trillion in rollovers occurring between now and 2019, that will help shape the yield curve. I dont think people are paying enough attention to that. As usual, get in touch. Nice to hear from you. Email address is streetsignseurope cnbc. Were live on twitter, either the show, you can tweet us directly. carolincnbc or louisabojesen. Coming up, well be live from seoul after a historic vote in south korea impeaches the scandalhit president. Latest details after the break. The South Korean Parliament voted to impeach President Park geunhye following a corruption scandal. Lets get over to chery kang. Now its over to the Constitutional Court. Thats right. So the Constitutional Court in south korea will be deciding the merit of the decision. It started out with a bizarre scandal surrounding the president. That led to a public uproar that led to weeks of massive protests in seoul and nationwide. And of course the National Assembly, the 300 members of the National Assembly voted on the impeachment motion this afternoon. And it was a yes. It was a go with impeachment. 234 members out of 300 National Assembly members voted yes to the idea. But like you said. The Constitutional Court will be reviewing the decision, whether its a just decision or not. Even if the Constitutional Court says yes, this is a just decision, the Political Uncertainty does not end there. South koreas Political Parties will have two months to put together a president ial election. That could potentially mean somewhat of a lastminute cramming to look for a president ial figure here. Because none of the parties have a clearly winning or clearly supported president ial figure at this point. And just looking at the shortterm future here, whats happening tonight is that the president who has been impeached by the National Assembly at least is going to be suspended in a few hours from now. The Prime Minister will be stepping in as acting president. And the Prime Minister is actually set to hold a Cabinet Meeting first thing. And then hold a national address. Potentially keep calling for order in south korea given the potential leadership vacuum in the country. Back to you. Thank you very much for that, chery. The italian president has started talks with Party Leaders to appoint a new government. He met with the speakers of both houses of parliament and with his predecessor. Meetings will continue throughout the day. They will wrap up tomorrow evening. But mattarella could be waiting until monday to make a final decision. Looking at the italian banks, theyre under pressure this morning. Reversing the gains we saw yesterday after the ecb decided to extend its Bond Buying Program until at least 2017. The ecb president was coy about reports that italy may help may get help from the european stability mechanism to recapitalize its banking sector. I must confess i know very, very little about this loan to italy for for the banking system. Let me give you article number 3. I dont want to read the whole thing. Its a complex thing. And it also shows i know very little about that. We have the head of uk banking practice from Simon Kushner with us. Mario draghi not wanting to say a whole lot about the esm, having been the Previous Bank of italy, too it may be in his interest not to get too involved at this early stage with regards to recapitalization of italian banks. How do you read it and the health of the italian banks, and how crucial is it that they become recapitalized sooner versus later . If i had to describe the situation, i would say its dark gray. It doesnt go black, because we have the tools and the institution to support us, but its a dangerous situation. There are shortterm problems, Everybody Knows that about nonperforming loans, 360 million, staggering percentage of loans. Its pretty dangerous. The resulting lack of capital. Its not only about monte dei paschi siena, also about unicredit looking for 13 billion, and also other major italian banks, which have not gone in default because they have been saved by other banks fund, called the atlanta fund. In the shortterm, its gray. Lets put it like that. If you look at the longterm situation, and as consultants, we are required to think about what will happen in the next five years. I believe the most important problem is the lack of profitability of the whole Banking Industry in italy. No matter what kind of kpi you look at, whether its roe or cost income ratio, the way you look at it, there is a dangerous situation. What do you think the best term scenario is . The best term scenario is in the next five years, small banks take into consideration in italy theres a major differentiation between large major Financial Institutions like unicredit but also loads of small banks. So i believe the small banks would go through major m a activity. They need to get synergies, get down costs, which is like more than 80 . Thats the situation that i see in that part. Regarding large banks, i believe they have gone through this cost slashing activity. They cut 3,000 branches in the last three years. Therefore i believe we should focus much more on the Revenue Optimization practices, pricing according to value they deliver to the customer and also i believe there could be a major shift should the Business Model of banks. With the lower for longer policy, making money out of this Simple Exchange between savings and interest, it will not provided relevant level of roe in the future. I believe they should put more effort into the fees aspect and try to get back the trust of customers. We seen plenty of consolidation within italy, but what about crosseuropean consolidation. Theres is also talk of a tie p tieup. Is this something that could materialize . Unicredit has been selling off a bunch of chunks in the last recent months. Talking about pioneer investments, the problem right now is capital. Nobody is willing to put capital into the banks because theyre not profitable in the first place. I wouldnt say major shift in this aspect in the next few months. We have to leave it there. Thank you very much. Thank you very much. We are going to go for a quick break. Logon to World Markets live, our blog which runs throughout the entire trading day. Well be back in two. [engine revving] is it a force of nature . Or a sales event . The season of audi sales ent is here. Au will cover your first tmonths lee yment sales ent is here. Auon selt models during g e ason of audi sales eve. Sales ent is here. Welcome back. Youre still watching street signs. Im carolin roth. Im louisa bojesen. Your headlines this morning. Lackluster start to the european trading day as the ecb effect fades with banking stocks amid the biggest losers in the turnaround. South korea votes to impeach its president , park geunhye, opening up a new chapter of uncertainty for the fourth largest economy. And fyffes goes bananas . Soaring more than 40 after receiving a 750 million takeover offer from a japanese conglomerate. Carl icahn telling cnbc he should have placed a bigger bet on the postelection rally saying fears over Donald Trumps presidency were nonsense. Hi everybody. Welcome back. Bananas i cant do it as well as you do. Hours of practice. Data just hitting our wires. Uk october goods trade balance, 9. 7 billion pounds, less than the anticipated 12 billion. September revised figure, minus 14 billion. The september deficit the biggest on record. Were also hearing the noneu goods balance, better than anticipated. Talking about total goods and as far ass trade balance revised to 14. 9 billion pounds sterling, smaller deficit than indicated earlier in the week. The ons is saying the revised Third Quarter trade data will not affect Third Quarter gdp growth rate. Thats the sterling effect. The depreciation of the sterling, thats filtering through to the bank of england inflation expectations. Theyre saying for the year ahead theyll rise to 2. 8 versus 2. 2 in august. For twohe two years ahead, i at 2. 5 . And for the next five years, its 3. 1 . Who thought we would get back to 3 in the uk, its the brexit and depreciation of the sterling effect. Talking about construction output being too small to affect Third Quarter gdp growth rates, too. A quick look at u. S. Futures. They closed out of fresh record highs. The s p 500 s p seen up by 4. 5 . The dow jones seen up by 416789 the nasdaq set to add four points. In European Equity markets, very timid trading. Mixed picture. Seeing some outperformance in the french market, the ftse 100 is up, some weakness in the xetra dax. The ecb effect has certainly faded. Also the banking stocks, which saw very nice rally on the extension of qe and the higher yield curve did rally yesterday. But theyre seeing profit taking this morning off by 0. 3 . In terms of the currency markets, a lot more quiet than what we saw yesterday. 106. 10 is where were at. Flat on the day. Yesterday euro dollar off 1. 3 on the back of the ecb. Having initially gone to 1. 0875. Yeah. So quite a bit of movement there. The head of developed europe economics at b of a Merrill Lynch joins us this morning. You put out a note where you talk about the euro area and the cost of wasted years, and how you did anticipate more quantitative easing in september. What is the cost of the wasted years . Im assuming youre measuring back to 08. The cost of wasted years is that we had sort of implicit deal between the various european institutions. We provide lots of support during that time. Every government we have has the time to sort out issues, go into structural reforming, then we had a twist, austerity was no longer absolutely on the forefront. So you could also get a bit of leeway to sweeten the deal for Structural Reforms with a bit of fiscal support. That was nice. But its drawing to a close. Thats the problem. It seems that on the merger side, even if we had an extension in qe, theres a lot of fatigue now coming from frankfurt. On the Structural Reforms, well, we have not seen that much actually lately. And on fiscal policy, were probably rediscovering some constraints. Some governments are dealing with fairly high deficits, as is the case in spain. In italy to some extent. All this nice arrangement, merger support will allow Structural Reforms, Domestic Support with fiscal loosening, all of this is drawing to a close and we have to ask whats next for the eurozone. Had mario draghi said the ec cant stand and do everything alone, the governments have to implement measurements as well. Are we going to be disappointed by growth from the eurozone over the course of 2017 . Was a twist in what the ecb did yesterday, so far the ecb was sending message to governments, please do something. But as long as those governments were not doing what the ecb wanted them to do, the ecb was always willing to do more. They were price takers. We would like governments to do that. Yesterday was different. We are not getting what we want from government is, and were trying to prod them by reducing the level of stimulus. Its becoming more disciplinarian from that point of view, theres an interesting change of tone. This morning theres a quote about theres a sense of warning to governments. Its interesting change of tone. On growth itself, its okay. We are probably above potentials, probably stay there next year. I would Say Something simple, we are one of the most open regions in the world. 30 of our gdp comes from exports. We need some sort of world demand. We very much depend on what the market is expecting from the u. S. To really materialize. Because in domestic demand with nice fiscal loosening we wont get an incremental push in 2017. Mob te monetary policies get fatigued. So we need to see positive traction throughout the u. S. Without creating havoc in the end. So we do need the trump effect to spill over into the eu. Thats what youre saying. Which effect will be the bigger one . Because the u. S. Is growing, will we see more demand for european exports or because of trade protectionism will europe falter . Exactly. Right now its the trump effected is the expectation of the stimulus with higher yields now. And we are actually getting some contagion from those higher yields from the u. S. We need to get stimulus. We need the spill overeffect from the u. S. Until now, for us, its not negative. We have higher Interest Rates without getting the reality of support right now. Surveys indicate that in europe probably increasingly people are ready to be a bit more optimistic, but needs to be delivered. Needs to materialize next year. You sit here, you present your forecast, but whats the chance that by middle of next year youll have to rip it up because of more unexpected political changes, and 2016 has seen plenty of that in terms of brexit and trump. Big political risks next year in the form of french dutch and french politics. 17 is probably going to be quite political as well. I would say we can also try to look at positive outcomes. If you look at the french situation, for instance, there is a chance or in a way this ehe election has never been that stark in terms of economic choices. There is a very clearly reformist agenda coming. There is a very left wing economic agenda coming from france. Who wins will have a strong bearing on the future. Assuming the polls are right and what we get is a lot of economic reforms, you could see some positivity coming from france which has not produced a lot of positivity lately. I want to be a bit hopeful about that one. One caveat is that the central right has this interesting manifesto on Structural Reforms but also hawkish on fiscal policy. Thats a key issue. In 2017 the fiscal push in europe is likely not to be that great. At a time when the Monetary Policy already seems to be reducing a bit the support. Its different from the u. S. The u. S. , yes, the fed is probably going to hike. But we can be reasonably sure that there is going to be a proper fiscal push. We dont have that in europe. Thats the big worry. Thank you very much for that. The Uk Supreme Court will decide whether Prime Minister theresa may can trigger brexit without a vote in parliament. The court finished a fourday deliberation after the government sought to appeal a highcourt ruling that they could not get a david davis says the uk will unlikely have access to a Single Market after brexit. This is according to a report from the ft citing a city of london representative. Davis added that he was not interested in creating a transitional brexit deal. Billionaire investor carl icahn said he made a mistake when he bought into the postelection dip. Mr. Icahn, who was an early supporter of donald trump, said he wishes he had placed an even bigger bet on the rally. Speaking to power lunch, icahn explains why he thinks the dows initial downward move was not warranted. There was no reason that everybody was saying, you know, if trump wins that everything will fall apart. Which is nonsense. Trump was coming along, lowering taxes. Going to get rid of regulatory. Its going to fall apart. A knee jerk reaction was a dow going down 1,000 points, which was completely, totally insane. President elect trump has named andy pudzer, the ceo of hardees chains, raising concerns among labor units. In a statement, pudzer argued that the right Government Policies can result in more jobs and better wages. Donald trump vowed to reduce environmental regulation at a rally in iowa. Steve handelsman has the latest. Thank you to the great, great people of iowa. Reporter donald trump in des moines. He trumpeted his pick of Governor Terry branstad as ambassador to china. Regulations, by the way, will be cut down to a fraction of what they are now. And believe it or not, environmentally youll be protected better and will have jobs. Reporter but democrats will fight scott pruitt, trumps pick for epa director. He will try to turn the epa into standing for every polluters ally. Reporter as Oklahoma Attorney general, pruitt sued epa supporting oil companies. Trump today reportedly tapped for labor secretary, andy puzder, a fast food ceo who opposes minimum wage hikes. Puzder, pruitt, obamacare opponent tom price going to hhs, School Voucher backer betsy devoss as education secretary. Democrats charge that trump team has one mission to dismantle and yundermine and destroy the agencies they hope to run. Reporter trump calls it keeping his pledge to drain the swamp. Democrats pledging to stop scott pruitt from taking over the epa are considering forcing all Senate Republicans to say publicly if they believe in global warming, which pruitt doubts. Im steve handelsman, nbc news, capitol hill. Even before ballots were cast in the election, financial pros made calls on what stocks to buy for a trump warehouse . But who got them right and wrong . Reporter its been a full month since election day in the u. S. , theres a clear reaction in the markets to Donald Trumps victory. Not everybody got it right. Most experts were wrong. We went back to the record to pick out a few examples of what market pros were advising if trump had won. The most common recommendation made was that equity mar wets were going to collapse. Barclays, citi, bank of america, s p, those are just some of the big brand name shops who were all on the wrong side of the stock market. Mark cuban directly said the market tanks on a trump win. Bmo markets specifically upgraded Consumer Staples after the election saying defensive names would do better in a trump world that sector lost all its 2016 gains in the four weeks after. Look at gold. Experts thought gold would rise, but we can see thats not true. Who was right . Carl icahn and thomas lee both said stocks would go up. Bill gross nailed it on bonds claiming yields would rise. Taleb said not to worry about a trump win. Jim cramer was right to focus on the stock of kansas city southern. At least for now its clear the experts in general did not see what was coming. They might have a chance to redeem themselves once january comes and trump actually takes office. Back to you. Hillary clinton made her first visit to capitol hill since losing the president ial election. At an event honoring the retiring Senate Majority leader, harry reid, clienten dnton disp sense of humor about her election loss. This is not exactly the speech at the capitol i hoped to be giving after the election. After a few weeks of taking selfies in the woods, i thought it would be a good idea to come out and im very grateful to harry for inge viting me to be part of this celebration. Secretary clinton used the occasion to talk about fake news, calling it a danger that must be confronted by congress and the private sector. Let me just mention briefly one threat in particular that should concern all americans, democrats, republicans, independents alike especially those who serve in our congress. The epidemic of malicious fake news and false propaganda that flooded social media over the past year, its now clear that socalled fake news can have realworld consequences. This isnt about politics or partisanship, lives are at risk. And still coming up on the show. Who let the dogs out. Tune in after the break to find out if the socalled dogs of dow strategy has paid off this year. Well be back in two. Hi everybody. Welcome back. Youre still watching street signs on cnbc. Chinas Economic Growth is said to be within a reasonability range but still faces overcapacity. They are concerned about the eus trade protectionism tendencies in the Steel Industry but added they are willing to work trade frictions through negotiations. The Chinese Government is considering a proposal to crack down on elicit outflows from macau. The new proposal would see macau have the amount of cash that China Union Pay card holders can withdraw from cash machines in the territory. The report sent casino stocks falling in early trade in asia. The dogs of the dow Investment Strategy rewarded adhe adheren adherence. Dom chu filed this report. Now is the time of the year when many investors look at the dogs of the dow. This is looking at the members of the dow and then taking the ten highest dividend yielding stock theres, buying them in equal amounts, holding them for the year and rebalancing them next year. This year theres been a huge outperformance of the dogs of the dow driven in part by a number of names. Caterpillar, construction equipment, big laggard last year. This year bouncing back in a big way. Oil and gas, chevron up 32 if you factor in the dividend payments. Ibm, a laggard for a few year in the dow, up 24 , walmart and merck, top five in terms of total return this year. If you look at the projected dogs of the dow, you have verizon, pfizer, chevron, cisco, ibm, exxon, cocacola, caterpillar, Procter Gamble and merck. We will see what happens at the end of the year. If you look at the projections for next year, analysts on average have some interesting targets. Theyre projecting if theyre correct pfizer as the biggest gainer among that Dow Jones Industrial average dogs set, up 23 . Merck by 13 , cocacola by 12 and after big runs this year maybe caterpillar and ibm giving back some of the gains. Analysts have not upped their price targets. As we talk about the dogs of the dow, those stocks would be the ones to watch if those analysts are correct. Dominic chu at the wall with your dogs of the dow. Dogs of the dow . Cats of street signs . Yeah. Chinas grand Chip Investment Fund dropped its take over bit for the german chipmaker, aixtron. The 670 million offer was already in doubt amid growing objections from regulators over the number of chinese takeovers of european firms. The ceo of Deutsche Boerse says the merger with the London Stock Exchange is far from being done. It is still subject to approval from antitrust regulators. The eu expressed concerns that the merger could curb competition. And fyffes shares are surging after agreeing to a 750 million takeover by sumitomo. Share holders of the Fruit Company will be getting cash as well as dividend. Sumitoma secured backing from 27 of Share Holders so far and expects to close the deal by the First Quarter of next year. A lot of people were optimistic about the m a sector in 2016, the slowdown never really materialized. Why do you think there is this resilience . As you remember back in october, i said it would not ab record year but 2016 would be a very good year. Looks like we will finish 2016 behind only 2015 and 2007. Not bad. Expecting 2017 to be a really strong year. In fact, i think it could be a record year in terms of deal volume. Maybe not value, because we will see smaller, more small deals. Always some mega deals, 2017 will be a great year. Why . The same reasons we talked about in october are still there. Ceos searching for growth, uneven geographic growth, and digital disruption driving deals of all types as Companies Deal with sector blurring. What about the ceos who have the fear of missing out because everyone is doing m a and they feel they need to jump on the bandwagon. You are seeing some extent of that . Standing still is not an option in todays world. But deals that are not creating value, we dont see that. Frankly companies have become much more skilled over the last five to six years. When you go back and turn the clock five years back, and you hear about statistics such as 70 of deals fail, its opposite now. Companies have gotten very astute as how they commercially assess deals, synergy planning, execution on capturing se ining synergies. Has the financing of deals changed . The financing of deals is constantly changing, and it varies by geography. You still see, you know, deals at a fairly high leverage rate being done, corporate financing deals based on Balance Sheet position. That will always be a moving r target. Do you anticipate more crossborder deals or less . Will that depend on the area of the world . Weve seen a lot of activity from china into the u. S. And europe. I believe we will continue to see a lot of crossborder deals. You spoke about china a few minutes ago. China will continue to be a big outbound acquirer. Make no mistake about it, the purpose, one of the main purposes that china really moves by is they want to be a leader in several key World Industries and theyll continue to do that. Well continue to see crossborder deals. Will regulation curb some of those . Sure. I do not expect a downtick. You think trump is good for m a . Because were also seeing the repatriation of overseas cash. That cash has to be put to work somehow. I think the early indications are that trump will be positive for m a. If you think back to the capital conference barometer we talked about in october, that survey was taken during a period of time when the election was very close. Too close to call. It was very optimistic, 57 of Companies Plan to do an acquisition, 75 of u. S. Companies plan to do an acquisition. I think relaxing regulation will be a factor. Sorry, we have to go. End of the show. Weekend is upon you. Upon all of us. Steve kruskos joining us from ernst and young. Thats it for today. Well see you very soon again. Good morning. Stocks soldier on. Five u. S. Benchmarks sit at alltime highs as the rally reaches nearly every corner of the markets. Oil prices continue to rally this morning on hopes of a production cut. And the trump transition. Another Business Leader tapped for a top job. The latest on the president elects appointments straight ahead. Its friday, december 9, 2016. Worldwide exchange begins right now. Good morning. Warm welcome to Worldwide Exchange on cnbc
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