Let us talk about some of the threads that draw some of the main stories together. Crude certainly one of them, and brought together iran. What happens when the iranians come back to the market . We see that concluding friday. We have the inflation story out of the euro, trying to figure out what the fed will do. We have been hearing from mr. Evans in chicago, his views about a rate cut. All of those coming about in a few days, a really climactic end to the way. Then the get to the payroll, the fed decision, an awful lot still to deal with. Eurozone inflation is still a big part, we will talk about that a lot over the next couple of hours. Lets get you up this be. Here is bloomberg first word. Nejra Facebook Ceo Mark Zuckerberg and his wife announced plans to donate nearly in of their 46 billion stocks to charity. They have become parents, announcing the donation of their first child. He plans to give away no more than 1 billion a year for the next three years, holding on to majority Voting Rights in the company. President says the fed meeting makes him nervous. He says left off will be later than others, and it could still be appropriate for the fund rate to under 1 by 2016. The dollar index fell, on speculation that the fed hike may be more gradual. Australia beat expectation, coming in higher on the quarter, driven by the fastest gain in exports since 2000. And it supports a Central Bank Decision to keep rates steady. Lu. Treasury secretary jack says he intends to make sure the dollar stays the leading reserve currency, speaking to bloomberg a day after the imf elevated the status,reserve currency he says the u. S. Will hold china to its commitment. Clear that we thought it was important that china meet all of the standards to be recognized as a currency that is special growing rights. The action, but we also had long, ongoing discussions with china about their currency practices. They have made commitments to us that they will not intervene in ways that are unfair. Those are important, and they know we will hold them to those commitments. That is your bloomberg first were greeted for more on the stories and others, had to bloomberg. Com. Guy what are the markets doing in asia . Juliette it has been a pretty choppy session in asia, singh the markets is closing in the rate. Korea down to the tune of three quarters of 1 . Lower, you can see australia closing a little bit weaker there. After that impressive gdp data that nejra was just talking about. Down in china, a third section of gains on the shanghai composite. Stocks, weal estate are seeing big gains in the real estate space. That is on regulation we may see the government come in and bolster the housing market, as we have been seeing home sales following. Here in hong kong, about two hours of trade left to go there, and i just want to show you some of the stocks in china that have been reacting to the fact that the smog that we are seeing in beijing hazarded to receive. These are companies that provide air purifiers, antipollution companies, and of course, big focus over the last couple of days with evolution in beijing at really unsustainable levels. We are seeing these stocks match demand for the companies, as well. Talking summer, you are about the oil price ahead of the opec meeting, we are seeing a lot of the emergingmarket currencies strengthen ahead of that. The Malaysian Ringgit is higher, holding against the dollar. Guy thank you very much, indeed. A choppy session in asia. The central bank is front and theer, while markets say Central Banks remain uncertain. Charles evans reiterated that he favors a later liftoff. Should we raise rates or not . I admit some nervousness about our upcoming decision. Before raising rates, i would prefer to have more confidence than i do today that inflation is in the beginning to head higher. Level of current low core inflation, some evidence of true, of word momentum and actual inflation would embolden that conference. It would be well before next year that a stronger dollar dissipates enough so be again to see some sustained upward movement in core inflation. Guy the view from the windy city, inflation not restricted just to the u. S. Bigas been Mario Draghis project. Out,one inflation is coming in days before expected action from the European Central bank. For more on the story, we are joined by mitsubishi european head of Global Market research, derek hoalpenny. David, levy start with you. We get the headline number, is that it anyway enough to move the dial when it comes to ecb thinking, what are they going to do . David not too much influence, the ecb is looking at the forecast of Monetary Policy that needs to rise in two years. And we already saw in september, the last round of forecast, that the twoyear figure was revised down from 2 to 1. 7 . And to a certain extent, those changes have artie justified the announcement for mario draghi that he will make tomorrow. Do derek, he said we must we can to raise inflation as quickly as possible. How aggressive you have to be . Suppose based on what the markets are thinking, i think they will go at a rate cut. Quantitative easing increase, we think 20 billion per month taking it to 1. 8 trillion, if you extend six months. And then we think maybe 20 basis points on the rate. Guy it was down to. 4 . Derek the ecb, they know what the markets are expecting. And i think they really focus quite a lot on Financial Market conditions. We have been told repeatedly that they are trying to avoid an unwanted tightening of Financial Market conditions. I find it very difficult to believe that come thursday evening, friday, we will be in a situation where yields are slightly higher. The euro was higher and equities are lower because the ecb has disappointed. Guy is there a danger the fed does less . I think most people now anticipate a fed rate hike. But we have seen reports that the atlanta fed has significantly cut forecast for the fourth quarter. Some evidence suggests that maybe the data points are turning up softer, maybe the fed , therefore in the language, is much more dovish. Is that the danger for mario draghi . Terms of the language, i think that is what is stabilizing the markets, reassuring the market. If you look at the yield curve in the u. S. , there is very little rise next year. So the expectation of what we call a dovish rate hike is very much in the market. David we do have a lot of mixed data. Index, im fed gdp not sure i put too much faith in that. That is more a coincidence that indicator. It doesnt seem to me to have much leading influence, and terms of where gdp would be in the fourth quarter. So i would not put too much emphasis on that. But the story is very clear. It has been clear for some time. We have the Manufacturing Sector in recession. And we have the Service Sector which is booming, certainly in terms of sumer spending in the u. S. The gross over the last quarters, since 2005, the auto sales figures are a case in point. Where the consumer is feeling pretty good. That is because of the jobs market. And ultimately, in terms of Monetary Policy, that is the most important determinant of the actions. Guy dave, the language is critical. What sort of language you think mario draghi uses . There is evidence in the eurozone that things are starting to get a little bit better, maybe not at the pace they were necessary like them to give. But you look at the lending data, there is a whole series of numbers coming through at the moment that are moving in the right direction. Is this kind of, is this it . Or is this still possible that we see more . How does mario draghi munich eight . Look at theu eurozone, gdp, inflation, broadly speaking, things unchanged since september, this changes being motivated by cyclicalok to a se session. They found it wanting because inflation has not returned to targets as quickly as they had originally hoped. Guy give me a sense of the inflation story. Is based around in becoming embedded, that this becomes the new normal, the consumer business everybody starts inflation to be as low as it is. How do they navigate, therefore, the next 12 months . The base effect drops out, and we see a shortterm inflation left, how do they navigate and communicate around that . When they know that potential, if oil is still where it is in a year, they find themselves once again in a difficult position. Say asthey will have to inflation rises, they will get their own forecast 1. 1 and 1. 7 the following year. Not rise sufficiently quickly, and that is what they have to say, the economy is getting better. It is typical of the recovery that is continuing. But not as quickly as it needs to in order to be a fair target. Guy david, thank you very much. Chief economist at bloomberg intelligence. Derek will stay with us. What are we watching for the rest of the day . Eurozone inflation out at 10 00 london time. We are going to hear from of course the fed officials today, janet yellen delivers this 5 30 5 25 to be precise this evening. Book onfed beige economic conditions. Before we do that, we will talk about Mark Zuckerberg, following the birth of his first child. More on that story, when we come back. Guy 6 15 in london. Get the Bloomberg Business flash. Nejra citigroup tends to leave its bonus group unchanged. This is according to a person briefed on the matter. A similar plan did not pan out last year. After saying it intended to keep the number flat, they cut total pay for some traders, a lackluster performance for the final year. Credit rating cut to jump by moodys on concern the bank will struggle to keep enough cash on hand. Aiming toian bank is boost liquidity in the wake of the arrest, and is looking to a poppin parking lot firm for cas. A billion dollars in around the funding that would value the company at 20 billion. This is according to a person with knowledge of the matter. Finance as chinas sector is going through sweeping changes after years of government control. And the u. S. Auto industry had the best november ever, exceeding 80 million for the third month in a row. It was a different story for volkswagen, though. They tumbled 25 amid the diesel emissions crisis. They are set to break their silence on the scandal the day, more than two months after the carmaker admitted to cheating on emissions test. For more on these stories and others, and to bloomberg. Com. Guy thank you very much, indeed. Mark zuckerberg and his wife have agreed they will give away virtually all of their the six in dollars in facebook shares. Still in their early 30s, theyre very early 30s, it set a new philanthropic benchmark. Caroline hyde has the details. What exactly did they say . Caroline the key take away . 99 of their wealth will go to better causes, education, health care, improving technology. This is what is being announced by not only Mark Zuckerberg but his wife, priscilla. They set up the initiative in an open letter, of course, on facebook to their daughter maxine. She was born last week. This is equivalent to 45 billion, that is the biggest foundation all at once in the whole of the world exceeding that of bill and melinda gates. We know that not all of the will begin at once. We will see less than 1 billion per year for the first three years, at least given away. Because Mark Zuckerberg of course still has a job to do. He is at the helm of facebook and needs to maintain Voting Rights. The facebook is saying, look, no more than 1 billion given away per year. But for a 31yearold, this is a new benchmark. As you say, Warren Buffett waited until he was 75 to give away most of his well. Bill gates, 45. And you have a man and his wife in this picture deciding to give away 99 of their wealth. They say it is important to wait weil you, their daughter, or are older. So as we say, health, education, we understand they have been doing much of this. They have been setting up a trauma unit in san francisco. A school in disadvantage areas of Silicon Valley. But you can actually see more than 45 billion in the longterm. 90 of analysts think that Facebook Stock is a buy. To this to get even more valuable. Guy that number is a moving target. Lets talk about yahoo . There is support floating around the company may be looking to break itself up, maybe to sell the internet business. Caroline i know. This is fascinating. Not such a bright story for Silicon Valley right now. Would sellsume they off the core business, not just alibaba. This is all after yahoo and Marissa Mayer, the head of the company, coming under more pressure from activist investors, star board value wrote a note saying to drop your plan as it stands. Alibaba, that is worth 130 billion. Do not do that. Instead, sell off your Main Business your main search and display advertising business, which is, get this, worth just 2 billion. In alibabastake which is worth more than 30 billion. Many believe that, yes, these two businesses need to be separated to really extract most of the value. Bgc saying spin them off, and maybe private equity would be interested in buying up this particular element of the business. The core business. But remember, orissa meyer Marissa Mayer losing to google. The chief marketing officer is going. And share value is gone down by more than a third this year, got. Clearly, this is a company under a lot of strain. Guy caroline, thank you very much indy. Interesting on the tax issue, as well. 45 billion, quite amazing. Faster thanexpanded forecasted in the third quarter, as exports surged against the greenback. Let us get to sydney, and speak to ian macdonald. Up. 9 in the quarter, which is amazing compared to the last quarter. Is there a downside to the story . Ian hi, guy. Yes, so it did finish quite strong. But as you notice, a lot of it had to do with exports. If you take away exports from the equation, domestic demand actually shrank by. 5 . It is the worst result on that score since the Global Financial crisis. It is an indication of the impact of the continuing slump in Mining Investments. Also, investment spending by government was very weak in the quarter. Again, take away those exports, it doesnt look quite as good a picture. Guy so, the obvious question that follows from that, i guess, is exports are up. Commodities are down, and china is slowing . How is that happening . Ian it is basically a function of the Mining Investment boom that we had. We had the Central Bank GovernorGlenn Stevens talking about the aftermath of the boom. One of the positives is that with all of the extra mines being constructed, australia is now shipping 2 million tons of iron ore every day. That is doubled from two years ago. The volumes are much larger, even price being down. They were quite weak in the Second Quarter due to the storms that basically stopped a lot of the shipping that went on. So the recovery in this quarter, it was always expected. Guy nice to see you. Thank you for your time. Ian macdonald out of sydney, meanwhile, the Australian Dollar rallying against its counterpart in the u. S. In november. It is the only winner in the 16 against the greenback last month. Let us join derek hap lpenny. Is the dollar beginning to fade . Events,n terms of big it is definitely an element of caution. It is still a fairly substantial long position of dollars. There is reluctance to add risk when you have such. Isis understandable, the dxy around 100. The same with the eurodollar in terms of the year to date low. Technically, there are big levels there, as well. The momentum has come away a little bit. And in terms of the Australian Dollar specifically, we have had a big shift in shortterm yields. And the big story there is that they seem to be suggesting we could be done. He has questioned the merits of cutting rates again. And we saw a big move in the twoyear swap rate in australia. Tht divergent story is hoping the dollar elsewhere. It is certainly the story in australia. Guy you talk to a lot of people. What is your sense of how the are navigating, how are they position for the next couple of weeks . How you trade that story, a huge number of event risks coming up. Derek the people ive spoken to, there are a lot of people who are flash and have no position. They will wait for the event to take place. The idea that the convergent story is going to go away after these couple of events take place, i think that is nonsense. That team has plenty more to run. Therefore, there is but give opportunities to get back into the tray. Guy why plenty more to run . We have a rough idea of what the ecb policy looks like, what the fed policy looks like. They will raise rates, be fairly dovish. Where do the risks lie . Derek on the u. S. Side, it could be one and done. There will be a weakening of the u. S. Dollar, and equally, i would say the risks are balance the other way, as well. In terms of what they were talking about inflation being too low, i think the underlying inflationis building in the u. S. I understand what he is saying. That could be a risk, as well. The base effect from crude turns around. If the economy continues to motor pretty well on the domestic side, then certainly the market will have to price in more than just barely two rate increases in 2016. Guy are we making the right assumptions on how they will raise rates, the actual numbers 2525 is it really that . Derek we need to be careful. We always talk about the price here, i do it as well. But we have to remember they are going to be lifting the range. And we do not know, the 25 basis point range, that is the rate they can go. One surprise of the market is that instead of assuming we step right in that range, maybe the es to adjusted for2. 5 basis points fo moving, what it should be lower. Gu you think that is the case . Erek perhaps in december or january, we could see Something Like that