Interesting to see what effect this has on the markets. We have about four days left for you to get your portfolio in order for the final close of the year. Francine i do not know what we do, whether you bet on policy at top you listen or these indices going higher populism or whether these indices go higher. Found one ofa has the flight recorders from the military plane that crashed in the black sea. All 92 people were killed. Officials say the crash was unlikely to have been caused by terrorism. President elect donald trump is questioning the effectiveness of the United Nations. In a tweet he wrote the yuan has Great Potential but has become a club for people to have a good time. Pledging to work for a ceasefire in syria. Turkish Authorities Say they betweenilitate contact the Syrian Government and the opposition to end the civil war. To seek a truce in syria and hold peace talks. In germany, a new poll shows they believe 50 believe Angela Merkel will be able to deal with the problems ahead. Merkel is running for a fourth term. Global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. Im taylor riggs. This is bloomberg. Michael thank you very much. Four days left to get your portfolio in order. Here is what the markets look like heading into those four days, with smp footers it s p futures lower, dow futures lower as well. Eurodollar is trading but rarely so. Crude oil, another day higher following last weeks winning streak. German twoyear yields are near their lows of the year. In chineserations as everybody waits for a seven handle. Dollarruble, if you are going to be Vladimir Putins friend the ruble will do well. In russia and futures, i will tell you about that in a minute. They are down today but up 14 since the election. Francine i like that we look at ruble, probably one of the most geopolitical interesting regions in the world for 2017. I did actually not put european stocks because the u. K. Market remains closed. Dollar rising against most of the major currencies. Oil, continuing its longest winning streak in four months. Gold, 1143, extending some of the games. I put toshiba, i know it is closed but we are putting a report to find out what happened. In a closed it lost 11 because of the nuclear unit posting losses. Michael here is what i was talking about, donald trump tweeting at since he was elected there is a new hope in the world. The stock market is up 10 , did not say what market he is referring to. If you look at the major three indexes in the United States, none of them is up 10 . Dow, you cannot see the number at that red arrow that it is 8 . The s p is up about 5 . Or the 10 ist up the russell 2000. Question is, is he a small cap guy . He is a small hands guy but is he a small cap guy . Francine i like that. Chart, this is the Baker Hughes Oil ranks. Rigs. S in blue you have wti, in purple brent. It was stuck in this range and opec decided to do something. The price of oil is still going oilrig the oil ri g also going up. Michael that may be the story of the year Going Forward, what happens with oil. Advisersined by capital manager Chuck Lieberman and Sharon Ohalloran. I want to start by thanking both of you for coming in on this holiday week, and ask you both question about the topic we cannot get away from, donald and twitter. There used to be a tradition in the United States that we had one president at a time. The president elect kept his mouth shut until he took office. What effect do you think this is having is this having on the world . Do you as an investor, chuck, pay any attention to this . , it is having an impact because all of a sudden we are seeing a policy agenda taking place before someone is actually in the position to implement that. That is confusing. You have a president that is in power who is closing out an agenda and passing legislation and so forth, and then you have someone coming in trying to push an agenda. Therefore we are not having what is called a smooth transition of power, and that is confusing the markets. Michael are you confused . Look no, you have to ahead. Clearly we do not know what trump will get from supporting and the like, but it is clear he will push into certain directions and the magnitude is unclear but the direction is very clear. There will be an increase in government spending, on infrastructure and perhaps on defense. There will be a lower tax structure on consumers and business. Obviously, that is positive for equity markets. Some of the regulations, we do not know which ones he will get through but whatever deregulation he gets is going to be very positive for those sectors of the market. Showed what my chart was a big rise after the election, and then it sort of flattened out. The gains have sort of flattened out. Did the market get a little ahead of itself since we do not know exactly what hes going to get . Chuck that is a judgment call. I suspect the markets have not gotten ahead of themselves and we will get a lot more than is currently built into the market. If you assume the tax rate on corporations goes from 35 to 25 , that is a 15 increase in after tax corporate profit. Stocks have gotten cheaper if trump in fact does get a tax cut of that magnitude, and he would like to get more. Sharon i think it is predominately just a balance from uncertainty over the election, and that is all you would have seen from whoever took office. What do we know for certain for 2017 . Are we going to see more populist movement . Sharon Public Movement francine populist, i do not know if you can hear me. Sharon yes, definitely we will see populist movement. The reflection on the russell was a very good notion of what is happening, Small Business moving. Even the reduction in the doporate tax, the corporates not pay the 35 on average so you will not see the full reduction of that advertised within any profit amortized with any profit. Yes, you should see more populist movement and you should see more realized in both Small Businesses, in the pushes towards different types of policies that are going to take theand there will be question is whether it goes to minimum wage or other types of policies. That is unclear in the populist types of movements. Francine if we brought in it out and you look at the world, br seem to suggest if we oaden it out you seem to suggest we will see a rise in equities but because 2016 was predictable unpredictable, are you not expecting 2017 to be even more unpredictable . Chuck we certainly have a lot of uncertainty and we do not know what he is going to push for. ,e has put out so many ideas and obviously you cannot get everything through congress instantly, so it will be him prioritizing what he wants and seeing how much democrats push back. I have already seen articles, including one on bloomberg, suggesting the democrats plan to push back pretty hard so it is unclear what will emerge. As an investor, you have to think about what the risks and probabilities are. It is easy to come together toward the idea there will be a lot more stimulus for Economic Growth between tax cuts of unknown magnitude, spending of unknown magnitude, the regulation of unknown magnitude. Base if they all are reinforcing one another, it promotes stronger Economic Growth. , sharon Chuck Lieberman ohalloran staying with us for the hour on bloomberg surveillance. John mccain saying that there is no doubt about russia hacking the u. S. Those are live pictures, he is speaking in estonia. Needsd more investigation to be made and has called for an independent commission to investigate. This is bloomberg. Francine this is bloomberg surveillance. Francine lacqua in london, Michael Mckee in new york. Lets get straight to the Bloomberg Business flash. Taylor toshiba could have a writedown of several billion dollars on u. S. Nuclear operations. They said they will disclose the impact on earnings as soon as possible. It has to do with the Westinghouse Electric unit. The companys president says he may reconsider the future of nuclear. Monte dei paschi needs about 9. 2 billion in capital. That is based on the results of a stress test. On friday the Italian Government said it would put as much as 21 billion into monte paschi and other banks. They failed in their plan to raise more than 5 billion from investors. That is your Bloomberg Business flash. Sticking with european banks. Francine we are, and we are talking about monte paschi. Lets get to Dan Liefgreen in milan. Alk to us about monte paschi once again halted. Are we expecting news in the coming days or do we need to wait until some sort of resolution . Think, given the holiday vacation period, i do not think we will have any major developments. The important thing here in the ecbs letter that the banks knowledge, number one was that it is indeed regarded as solvent. That is important to meet e. U. Rules about applying for aid under the socalled precautionary capitalization program. The other thing that was interesting is this larger than expected number of 8. 8 billion euros. The bank had been seeking only 5 billion in their Market Capital plan that failed, for example. Us first of all, are we looking at some kind of Government Intervention with the bailing in of creditors, who are basically italian families. The bundesbank president saying he should not once want some kind of hasty resolution. Do you think they will take their time and figure out another way of getting money to the bank . Dan i think they want to get this right, obviously, and they have to do it in unison to meet the e. U. Competition rules, and obviously to meet the ecbs rules as well. I think before they actually put in motion the request, they want to get the number straight. What the ecb is telling them is that while it is still solvent, they are concerned and made a specific reference in the letter , they are concerned about the liquidity level in the period between november 27 and december 21. Or has been a worsening situation and they have taken that into account in the numbers. Michael what happens under the plans being considered, to the junior bondholders, the bomb and popinvestors mom and investors who hold a lot of the debt . Dan clearly the governor government once to avoid wants to avoid that these retailers were get hurt. A number of proposals was to swap into new shares, or bonds that would be guaranteed by the government. Clearly, the last thing this government needs right now is to witha serious problem 40,000 customers at the bank. Michael Dan Liefgreen, thank you for joining us. We will continue to check in. The monte dei paschi rescue could take place over the next couple of days. We will keep you uptodate with the latest headlines as they come across. Trading halted at the bank. We will bring you more on our exclusive conversation with bank of america ceo Ryan Moynahan on his to do list. Michael good morning, i am Michael Mckee in new york with Francine Lacqua in london. The bank of america chairman and Ceo Brian Moynihan says most of the items on his to do list when he took over have now been completed. He spoke exclusively to david westin. Brian when i interviewed for the job in the latter part of 2009, i had a list, i literally had a list of all of the things that did not fit with the core franchise, consumer franchise, merchandising, and Capital Markets franchise. That came through a lot of the enterprises required. We needed to deal with overtime. I showed the board that, and the idea was if we took the risk out of those businesses, and took the capital and complexity out, you could tighten the company. We went from two points 2. 7 trillion in assets down to about 2. 2 trillion. We went from credit card operations in five or six countries down to one country. All of it was based on a basic principle that our basic Business Model was, all of our businesses operate in the United States and two are global. Large companies are global beings and we have to be there to serve them. I have that list done, it is done now. We are largely done with it, but it has taken a long time. When he flipped the other side when you flip the other side, it is illegal for us to buy depository institutions in the u. S. If you have more than 10 deposit you are not allowed to buy. It makes my life easier so i never have to worry about that. To grow the u. S. Business it has to be more organic, which is why we are opening branches in cities to round out the markets that we were not in. We have built new branches in places like new york, philadelphia. It is all organic so more financial advisors, more u. S. Trust private bankers, more commercial bankers, more people in branches serving customers, and a town of money in technology. We cannot buy anything, so think about a company that has been around in various parts for 200 plus years, and all of the acquisitions that have arrived at the scene and how easy my job is because i cannot do it. Company andhuge that burden is not small, but it is an interesting place to be. It is illegal, it is an interesting answer. Michael we are back with Chuck Lieberman and Sharon Ohalloran. ,ince election day, chuck financials are up 18 on the hope that Brian Moynihan and his cohorts will get a tailwind from donald trump and deregulation. Do you see congress and the president doing enough to justify that kind of boost . Chuck that is impossible to answer. Certainly the Incoming Administration would want to do a lot, and there are parts of doddfrank that are in my opinion, horrible. They would be better off being disposed of. What he can do remains to be seen. There is no doubt there will be a lot of opposition. Elizabeth warren in particular is going to fight tooth and nail. It does not make sense, but that is her gig. It remains to be seen what will come through. Francine do you expect a light touch regulation . Sharon i believe there will be a rollback on some of the provisions of doddfrank. I think that right now there will probably almost try and get rid of many of their proprietary training, living wills, Consumer Protection agencies, all of that stuff that Elizabeth Warren fought very hard for. They will push those immediately. In addition, i think many of the rules that have not been passed will have a difficult time getting connected. Francine thank you so much. Coming up later today on bloomberg daybreak americas, a conversation with Robert Shiller of Yale University at 9 00 a. M. In new york, 2 00 p. M. In london. Ive spent my life 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. Michael good morning, to a leaderless washington, d. C. Donald trump, who thinks he is president already, is in florida. President obama is in hawaii. I am Michael Mckee in new york, francine the claw in Francine Lacqua in london. Theor shinzo abe becomes the attackr to visit site of pearl harbor. He laid a wreath and will be joined by president obama today. Benjamin netanyahus critics are coming out in force. Y initially joined him in but now they blame him for. Arming the countrys standing in colombia, an investigation blames human errors on the crash that killed most of a soccer team. Authorities say neither the airline nor bolivia should have allowed the plight to take off flight to take off without enough fuel. We are learning more about the death of george michael. His partner found him in bed on Christmas Day, dead from suspected heart failure. Ofa calling the death Unexplained Police are calling the death of unexplained but not suspicious. Global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. Francine it has been quite a year for losing cultural pop icons. Time for our morning mustread. Theyle written by write the only thing certain about populist movements as they run their course and not always in a way that leaves their supporters satisfied. The cause and source of the remedy for populism lies in what greek political scientist yost of rockets calls a crisis of representation. I urge all of our viewers to go pick up this piece. It is on our website, called at rage over the economy. How do you explain populism or what we have seen politically in 2016, and is there anything that the more moderate politicians can do now . Interesting, what you see is the rise of populism means the rise of the local constituencies, and local spectacle special Interest Groups around salient issues. When those issues become important, they rise, it becomes a particular point of interest whether it be immigration. That has been salient in europe and the United States, those become issues representatives have to take action on, and therefore that becomes a populist