Trade deal in regional history. Donald trump says the United States will withdraw from the Transpacific Partnership on his first day in office. The statement was included in a video outlining executive actions his administration can take on day one. Meanwhile, all four major u. S. Equity benchmarks climbed to record highs for the first time in 1999 as the market looked at odds of a december rate hike and it hit 100 . We focus on what the new white house will mean for investors in the tech space. As you get from minister reaches out to Business Leaders, we will bring you the latest on the brexit debate. First, lets great lets get to the first word news. Here is no stretch a hitch here is nejra cehic. On the whiteate house and policy changes. Trump says he will withdraw from the Transpacific Partnership, cancel restrictions on american energy, and get rid of old regulations. Will formulate a rule that says that for everyone new regulation, two old regulations must be eliminated. So important. U. K. New Labour Party LeaderJeremy Corbyn says Business Leaders and trade unions have expressed concern that britain is heading for a hard brexit. Corbyn warned over the impact of such a move. The idea of what i suppose would be called hard brexit, where you end up with a terrorist war between britain and europe, when much more than half of our trade is with europe, it would be very damaging indeed. Nejra European CentralBank President mario draghi said more urgent action from governments is needed to address the structural weaknesses of the euro area. Also pledged to maintain the ecb monetary stimulus. He spoke to the European Parliament in strasbourg. Japan has lifted all tsunami magnitude 7. 4 earthquake off the coast of fukushima. Warnings were issued widely, urging residents to flee for higher ground. Five people have been reported injured and some bullet Train Services were suspended, but otherwise the region was operating as normal. Go for news powered by more than 2600 journalists and analysts in more than 120 countries. Thank you. This is your data check. This is what we are seeing. I want to show you gold and some of the equity indexes. We did not see a record hyper indexes in the u. S. Zero point00 gaining 5 . I also want to show you yen. Ar this is a picture for crude oil. 48. 50. The video message, president elect donald trump has spelled out six areas he intends to act on his first day in office. He started with trade and his intention to withdraw from the Transpacific Partnership. Trump entree, i am going to issue our notification of intent to withdraw from the Transpacific Partnership, a potential disaster for our country. Instead, we will negotiate fair, bilateral trade deals that bring jobs and industry back onto american shores. The u. S. As president elect signaled his intention to walk away from the biggest regional trade agreement in history, what will it mean for the rest of the world . If get a global perspective with bloombergs asia economics correspondent and according. We also with our guests in a second. Is the breakdown of tpp mean for the regions economies . Is a negative. T it was already struggling to get across the line. Now, we have president elect trumps comments, somewhat a nail in the coffin. Some governments in this region put a lot of Political Capital into tpp when it was not especially popular at home. You only have to look at japans shinzo abe. He flew to new york last week to meet with the president elect. Im sure tpp was part of their conversations, not just japan, but countries like vietnam as well were hoping for this, because it would have brought down terrorists, barriers to internal markets it would have brought down tariffs. Is a sweeping tide against globalization. It is a real setback for trade in asia, and certainly for u. S. Interest in this part of the world. Francine if the u. S. Is retrenching from the influence it has had in the past, what does that mean for china . Can they really stepped it up . Enda there is an opportunity. Itis never as simple is not a simple case of china walking up and filling the gap. There is an opportunity. There has been a parallel trade conversation going on around that isg called or step led by the saudi and arabian nations plus china, india, and others. That does not include the u. S. The focus is naturally on the shift in negotiations, which is. Ind of a silver medal tpp it does not offer the same reduction in tariffs or breakdown of barriers to internal markets, but it is a massive regional trade deal, probably as good as these asian governments can hope for on a multilateral basis. The focus shifts to china, and chinas role in these talks around the process, and what can be delivered on the table. If those get across the line, it will be a master trade deal that does not include america, and that is certainly a negative. Francine thank you so much. Enda curran, our chief asia correspondent. Our guest is a global strategist. The other is chief International Economist at ing bank. Thank you for joining us. Tpp, i know we have had record highs on some of the u. S. Indexes. Market is sothe focused on the fact that it is going to reflate the economy. Are they discounting any damage from trade . I think the immediate action from the election was to look at the positives, to assume some of the things on trade which are negative for growth as well as positive for inflation, in the sense of pushing it higher, would be downplayed. Have heardt words we do not really support that very much. I still do not think that is going to outweigh the sense in markets that the Trump Program is a boost for growth, with a stronger dollar. I do not think it will derail the equity market. But it is a warning to us that there are two sides to this new administration, and its attempts to get jobs back home either he will be doing a variety of things. People are looking at how much stronger the dollar is than when he first said. That is not going to help them either. Francine the yields will not help with the funding either. You get how this trump trade could possibly turn out. Can it turn out ugly very quickly . Can. Lets turn straight back to the tpp. Remember that hillary cap Hillary Clinton also opposed this during the campaign. She said, i will oppose it after the presidency. The fact he has come out and said, we going to pull out of this he is not in place. Nothing has really changed on trade. Or haves the best market interpretation of this is something that might have happened may not happen, and we are back to where we were. Can it turn ugly . Absolutely, it can. Francine the problem, which some commentators are worried about, is that trump has made threats, saying he will punish china for alleges unfair trade practices, right . The chinese have so far ignored these. The rhetoric we have heard on the campaign trail, and what we are struggling to grasp right now is, what is he actually going to do . All of the candidates said a lot of things in the runup to this. What is he going to do . So far, we do not know. Who is going to be treasury secretary, who is going to be commerce secretary. Until we get some inkling of that, it is hard to know whether this really is the soft trump, the warm trump google talk a big game on trade but not deliver a lot, or whether he is going to go hard on this. Francine has he been cut the lisa far in terms of his appointments . Think. , i the first thing you get is a heard reaction by markets. A herd reaction by markets. You need to see something that makes that narrative if that is the right word nowadays change. We will have to see. Tpp has not happened yet. The bigger story for global trade were past the peak in global trade. We are moving to regional trade blocks. There will be an asian trade block, and the u. S. Is not going to be part of it. But the u. S. Will still be the worlds biggest importer. Francine i want to show you a chart in just a second. It shows some of the trade relationships. If i clicked on china, between the u. S. And china, the relationship in terms of trade is probably secondbest after canada and mexico. Juckes and rob carnell stay surveillance. Two weeks from france president ial election day. U. S. Equity benchmarks are at record highs. Reaction to donald trump. Plus, trade, trump, and brexit. Quitdministration plans to the tpp trade deal. Could open the way for peace for post do you trade deals with the u. K. . And immigration and world trade. What the new presidency will mean for investors in the technology sector. Francine this is bloomberg surveillance. Equities in europe higher as the rally from the u. S. Ripples through the global markets. Lets get to mark barton. Mark lets look at the big chart of the day, the chart showing the four major indexes hitting record highs yesterday for the First Time Since 1999. The s p 500, the white line. The dow, the blue line. The russell 2000, the red line. Donald trumps election fueling optimist him that he will cut taxes, boost Infrastructure Spending. Oil jumping on optimism opec will cut output. Lets get to the fed. The meeting is only a matter of minutes away. There is a 100 probability now the fed will hike rates in december, according to fed funds futures. That is a fascinating chart. We had a twoyear option yesterday during the highest beforeince 2009, fiveyear debt today. That is the twoyear yield versus expectations for a rate hike in december. Talking about oil, searching for a third day today. Opec members have made progress toward finalizing a deal to cut output, says the opec governor of libya. This is the price of oil, the white line. The blue channel is the level where opec wants to cut 32. 533. N to, opec production is the blue line. You have to cut it by at least a Million Barrels a day. Is that achievable . Resuming,llar rally moving toward an almost six months high on fading demand for safe assets, which boosted the yen after the earthquake struck japan. Francine mark barton with the what they dont Trump Presidency mainly in for the future. Trump is fueling market optimism. Over at societe generale, analysts have revised up gdp growth and inflation. We bring in kit juckes and rob carnell. Lets get back to the changing forecast in a second. Kit, it is all to do with equities. Playing outt, it is in equities. You play the donald Trump Presidency through equities. As beings perceived good for some sectors for finance, the drug companies, for example. Good overall more growth area , a little inflation. What is to worry about . Francine and this is something that you agree with . Yet changedave not your forecast. We are going through that process now. But the direction is a bit more growth, a bit more inflation, but not yet. We will have to wait for it. There is quite a cumbersome process putting together a budget in the u. S. It takes time. The market may run ahead of itself a little bit. We may have a slightly testy period through the summer where we wait for this to come out and it starts to impact activity. Francine is there a feeling that in certain aspects, the markets have just run too fast with this . You need to fund this. You need backing. But houses are republicans, you still have fiscal hawks such as paul ryan, and those yields changing tact is not helping with funding. Kit if he gets everything that he wants to get done, frankly, we will have significantly higher bond yields, significantly more inflation, and we will be on a bad path. You cannot overheat and economy. You would not want to overheat and economy with 5 unemployment. I think we are all right on treasury yields if they move up more slowly from here, toward 3 . A 3 10 year note yield 1999, they were a lot higher than that. They were i think at 10 briefly, in memory. Francine good memory. [laughter] so, 3 would not be the end of the world. It is the speed of adjustment. But yes, there will be a move in that direction. Francine this is the spread between the german 10 year and the u. S. Treasury 10 year. You can see the spread the widest since 1989. Is this just going to get wider . I am not going to turn around and say we are at 2. 06, that is the high. But to jump into another market, that is what has driven eurodollar. I think as far as the Interest Rate move, there is a lot priced into that, relatively, in rates already, relative growth, and what that means for the country. That is the currency move. Come here on, eurodollar i think is all about politics and not about relative risk. Francine do you agree . Rob the politics in europe does remain a bit of a break for quite some time. You were talking about this earlier in the program. There is a lot going on. You mentioned the French Election is the real story. What is the twoway race between pen going to look like . Is the gap big enough when we bear in mind how unhelpful polls have been . Got to take into account voter turnout and differential likely voter turnout in that election. Francine when you go back to equities, our equities really supported by strong earnings . If you look at some of the tpp or trade extra tariffs, it will hurt the supply chain of american companies. How faris a question of forward market can look. At the moment remember, we are coming into this with earnings picking up again after a period when they were falling. We have got a tailwind, and we are going to get a growth tailwind. We have a confidence tailwind. You have these sector stories. You have got a lot of things helping right now. The further you look forward into the future, the less that gets. I think we are going to have most of our jam today and less in six months. Enjoy it until christmas. Francine there you go, more marmalade. Kit juckes and rob carnell both stay with us. Up next, trump bows to scrap the tpp trade deal. Is this an opportunity for risk for postbrexit britain . Francine this is bloomberg surveillance. Lets talk about global trade, the incoming u. S. President elect, and the desire to focus on Bilateral Agreements instead of the tpp. Could this paved the way for a postbrexit deal . We get more from kit juckes and rob carnell. We are try to figure out whether a Trump Presidency means theresa may has more Bargaining Power, either because of security either the e. U. Needs her more or because you need a trading partner and that you could step in at any moment. Is there any trace of that . i suspect theresa may there is always a chance this side of the atlantic that the special relationship is a really important thing we can leverage. In the states, they go, what are you talking about . They do not take it that seriously. There is a hope, but i would not want to push this too far. We do not know how long this betbrexit world it could 10 years after her speech. Francine what are you expecting from the statement tomorrow . Kit from yesterday, not a great deal. Theresa may does not want to upset the cbi members any more than she is perceived to have done. She has softened her tone. That is just moved, i am sure. It would be odd for a Prime Minister to really be in opposition to cbi. She wants to make friends, if you like. Oftever the hardest version brexit is, we are trying to lean away from that, for a bunch of reasons now. We will get the numbers on the publicsector in a few minutes here in the u k they are not going well. Overeficit is, on a year year basis, falling to slowly. There is very little largess to give away. All the noises you are hearing are the token moves to try to make some Political Capital, that there is very little power behind it. Rob we actually do not need a great deal. Just know the data is ok. Then might save up some spending, the little they will have for next year, the actual budget. It could be looking a lot worse. Trump lastonald week, late last night many people would like to see nigel farage represent Great Britain as their ambassador to the United States. He would do a great job. What do you do with this . You are theresa may. She is probably on twitter, or one of her aides. Do you just ignore that . This is the president of the free world. We she came out and said, have a public ambassador already in the United States, which indeed we have. Francine no vacancies. Kit no vacancy right now. She will take it on board. There is a willingness for moore, that not much substance behind it, if you like. Francine it is very unusual to see a president elect weigh in on who should be ambassador to wear. Not a usualtrump is president. I cannot think we should expect usual from him. Francine thank you so much. Very diplomatically put. Kit juckes and rob carnell. Both stay with us. Up next, with a new policy agenda on immigration and world trade, what a Trump White House will mean for investors in the technology sector. Planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Francine this is bloomberg surveillance in london. Donald trump has released a video to date the people. Trump says he will withdraw from the Transpacific Partnership and cancel restrictions on american energy. Corbyn says Business Leaders and trade unions have expressed concern that britain is heading for a hard bridget. He had some harsh words for donald trump. The eye deal of a hard brexit between britain and europe when half of our trade with europe would be very damaging. Clear that it very absolutely and totally deplore the comments he made durin