tv Bloomberg Markets Americas Bloomberg December 9, 2016 10:00am-11:01am EST
julie: we will take you from new york to seoul. we have some breaking economic u.s.on the u.s., the consumer confidence reading for december coming in at 98, better than the 94.5 that was estimated. if you look at the current editions index, that is higher 112.1.timated at this is relatively lower than the others, but that is better than has been estimated. reflecting the better feelings among consumers as we see folks get past the election. that reading, the overall reading is at the highest since january of 2015. interesting in the wake of the election.
seeing doolittle, we are lots of records yet again. abigail: we have green for the u.s. major averages. we have more record highs to talk about. nasdaq, s&p 500, the all three averages are on pace to finish at record closes. up six daysis now in a row. if it closes that way, it will be the longest daily winning streak since before brexit. a bit of a risk on trading today. as we look at currencies, there is confirmation of this risk on trading for the markets. we have the bloomberg dollar index up nicely. on pace for its birthday since the end of november. -- best day since the end of november. the yen is on pace for its worst day since the end of november, trading at the lowest level
since february. taking a look at the commodity complex, oil is higher. on the week it is slightly lower. this follows last week's massive gain, up more than 12% on that opec supply deal. we are wondering if we will see more declines after that initial pop. if we look at the bloomberg, and we look at this chart. this suggests gains are ahead for oil. this is the long-term chart for oil. in the blue boxes are the previous opec supply cut deals of one million barrels or more. we see out of those, some volatility and absolutely huge gains. this may suggest more strength ahead for the oil -- energy complex. mark: great chart. love that chart. a big week ahead for opec. there is the stoxx 600. rising for the fifth day, long a strong it's october.
-- since october. we are on track for the best weekly gain since february. it is up 4.4%. so many statistics to blow you away with. stocks.lk about italian it has been a week of italy after the referendum. they are on track for the best league in five years. are they? it is touch and go. will be four years or five years? this is going back to 2012. the gauge has rebounded 21% since june 27. back then it was the lowest in three years. bull market on wednesday. the rsi hit the highest since august of 2013. we are down in italy by 15%. down 64% since the record in 2000. those days, the height of the.com boom. -- the dotcom boom.
monte paschi, the biggest decline since november 28, after the ecb rejected their request for more time to complete a 5 billion euro capital increase. you can see shares have been altered a few times this afternoon. shares are down 10.5%. this increases the likelihood of the state bailout that would impose losses on shareholders and bondholders. not the news that monte paschi wanted to hear today. in light of the news from mario draghi yesterday, i thought we would look at the spread between the two year and 30 year yield in germany. look at the difference. it is at the widest since november 2015. mario draghi student -- steep and the yield curve yesterday. they see the potential for continued accommodation due to the weak inflation outlook.
so much happening. back to you. julie: we will talk more about monte paschi in a few moments. let's take a look at bloomberg word news. >> the president of south korea has been impeached. lawmakers voted to remove her after and influence peddling scandal. her powers have been suspended. the prime minister will step in as acting president until the country's supreme court decides whether to formally and her presidency. italy's prime minister matteo renzi is keeping the country waiting area he has not told the country's president whether he will stay on despite his defeat in a constitutional referendum. renzits to know if matteo will agree to be reappointed. defense secretary ashton carter says the u.s. will stick by afghanistan for years to come.
he spoke at a joint appearance with the country's resident during his final visit to afghanistan as head of the pentagon. >> we not only continue supporting our afghan partners, but continue our counterterrorism mission well into the future to ensure no terrorist group can seek safe havens, such that it can threaten the stability of afghanistan, the u.s. homeland, or the coalition. >> this was his last planned trip to afghanistan before handing over responsibilities to his designated successor, james mattis. john glenn is being remembered as a war hero as the american who was first to orbit the earth. the last survivor of the original mercury seven after not. his flight revitalized the american space program. he spent 24 years in the american senate. he ran for president in 1984.
at the age of 77, he became the oldest person to go into space. he was 95. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. mark: two italy. shares of monte paschi hitting hammer today. -- getting hammered today. they were down 9%. they were down 16.5% earlier. the ecb has said they have rejected the bank's request for more time for a 5 billion euro capital increase. let's bring in our european economy editor. what is the reason for this rejection? >> the ecb has not really spelled that out. the word came this afternoon in frankfurt. that is the way things are going right now. there is drama going on after
that word came out. the chairman of monte paschi and the ceo met with government officials in rome. there is some plan that is being hammered out now. i would like to put this story in context. why is monte paschi so important , not just to the italian banking sector, but to europe as a whole? if it were to get into more dire trouble, what kind of consequences would that have? >> it is the oldest bank still in operation. it has continuously been one of the weak links in the european banking system. that is symbolic of the whole system. as everybody knows now, the italian banking system is way down, about 360 billion euros worth of troubled loans. fixing monte paschi would be
important or the entire system. mark: thank you for joining us. reporting on that big story that is coming out today on monte paschi and ecb rejecting their capital raising extension plan. let's get a take on italy as the banking drama continues to unfold. we are joined by didier duret. inhas more than $200 billion assets under management. we have seen a real rebound in european banking shares. low inlmost five year july. this is the sort of news that the european banking industry does not want to hear. mr. duret: i think the rebound in europe in general is simply because there is an and to underperformance. there might be some form of expectation going forward because the results we expected companies even
greater than u.s. companies were certain of them. we are moving away from the negative interest rate environment. this is something that is positive for the sector. when we look at the risk premium, there is huge risk premium connected to the political risk that is expected for 2017. if 2016 was the year of populism, we have seen that in big letters, next year might be probably different. revered.h are being merkelposition of angela in germany. it may be the early sign that the center has been revered. that could be a good sign for the political risk. . shocks? are expecting
mr. duret: if they do not come, that will be positive. julie: when you are seeing political shocks, you have an interesting legal observation. you say 2013 will be the year of the political center, this centrist snapback. does that mean there will be fewer opportunities for political shocks? mr. duret: i think there will be a lot of drama connected with the elections. ms. le pen.ere is the population is very mobilized by what happened in 2016. in mindhave to keep that the center has been trying for something like 30 years. in many downsides, there is a
limit. julie: if there is a limit to the downside, does that translate into general bullishness in stocks in europe? that the new know administration and the u.s. will be extremely generous in terms of fiscal policy. nothing that has come out of europe so far. next year, the things to watch are the physical -- fiscal initiatives that europe takes. we can no longer rely on her monetary support. mark: let's get to numbers. records in the u.s., europe's highest level since january, you say primed for a significant overweight in equities. given that this rally in the u.s. is based on hope and the rally in europe could be based on hope in earnings, what upside
the you see? mr. duret: at the end of the year, we are always there. go2000 something, we can with earnings of between 2% and 5%. if we go with a modest interpretation. we may think it is totally fake, but it is not. we are also seeing a strong cyclical uplift. we see that in manufacturing, and also in the confidence in the u.s., which numbers that were published this afternoon on consumer confidence shows. there is an opportunity to regain growth. we are saying goodbye to deflation. >> we had a great meeting on the transition. we are putting this country back on track. thanks, guys. julie: unfortunately we only caught the tail end of his comments. that was paul ryan at trump
tower. concerned are you about potential trade policies of the trump administration and whether that could crimp profits? mr. duret: when we talk about trade, this is a long-term issue. markets get very impatient about it. it is very far in the future. the markets are interested in the short term thing. when we look at what is the trend that is most trusting for the market, it is the globalization and digitalization of trade. it is not about growth or volume, it is about invisible goods and services. this is happening for some years. e trade investor can still companieslooking at
like retail companies. mark: $2 trillion bond market. ock they areshc calling it from the trunk victory. you have a 10 year yield projection of 2.9%. the bonds are declining in light of mario draghi yesterday. explain what is going on. mr. duret: there is expectation of fiscal stimulus. that means more assurance on the long end. they will issue a lot of bonds at the far end of the curve. it will not move in a straight line. 70 tok there is possibly 100 basis points of risk on the bond market. i think it will be an opportunity to go back into
normalization. it will be good for the financial companies. it will be good for the insurance companies. the pension problem will not be as keen as it was. it will be good for the companies on the pension side. i think it will have a lot of effect, not only negative effect for the equity market. higher yield in the u.s. will not break the rally on the equity side as long as it is not too brutal and to rapid. mark: thank you for joining us. didier duret, chief investment officer. julie: coca-cola on the rise after their ceo steps down next year and is released by the companies chief operating officer. this is bloomberg. ♪
mark: live from london and new york, i am mark barton. julie: i am julie hyman. this is "bloomberg markets." ceo of coca-cola announcing plans to step down. >> we have shares soaring on this news. they're up 2% on the news that james quincey will be replacing muhtar kent as the ceo. we did reach out to a bloomberg intelligence analysts, who says that this is a natural progression. james quincey has been groomed for this position. 65%,s of coca-cola are up and on the year it is a different story. decline.bit of the
it is modest on the year. can shea told us there are a couple of different reasons for this, one is right here. revenues declining over the last couple years. it appears investors are not going to tolerate this as much. coca-cola derives 75% of its business from out of the u.s., and it is getting clobbered by a rising dollar. declining as sales consumers are less interested in sugary drinks. it will be interested to -- interesting to see what the company does in 2017 and 2018 to turn those sales around. mark: thank you. it has been a big week or new etf launches. from funds that track media moguls to those that help you play wearable technology. this is bloomberg. ♪
mark: live from london and new york, i am mark barton. julie: this is "bloomberg markets." there have been 220 etf launches this year, making it harder for any single product to stand out. there were a few that turned some heads. joining us now is eric balchunas, from bloomberg intelligence. you and i talked about the crowded field for etf's quite often. the first one we will talk about is the media mogul next shares. what makes this differentiated? eric: three things, one is a household name. we do not see many rock star managers for the most part. that is number one. number two is it is tracking -- it is called the media mogul.
it is singular, not plural. this is the first time where the fund is tracking stocks that are associated with one person, in this case john malone. all the stops that he has something to do with. they think there is outlook behind that. the third thing is the structure is different. it is a hybrid between etf and a mutual fund. this structure is important because it allows active managers to come into the etf space and take advantage of the tax efficiency and lower cost of it. i will not get into the weeds. it is a little different. you can buy shares during the day, but you cannot see the holding, they will show you those quarterly like a mutual fund. it charges 1%. it will be interesting to see if the name is enough to overcome the fact that it is active, which has not been doing well,
and the fact that it is on the expensive side. if it outperforms, he could get some assets. the next one is something that already exist in another form. the deutsche high-yield bond etf. how is this different? hyg is the most popular. this is cheap. deutsche bank cannot and priced a vanilla high-yield bond etf at 25 basis points, cap as much as at 50. as much as hyg this shows that the fee war is spreading outside of places that vanguard is. typically in areas where they don't have funds, people would price higher. in essence they have come in by pricing really cheap. we saw goldman launch a
smart-beta etf that nine basis. the thing with high-yield is that people love hyg for the liquidity. it will take long time for this to get that kind of liquidity. this could be appealing for the cheap cost. julie: eric balchunas of bloomberg intelligence, makes as always. mark: still ahead, trading in the third largest u.s. ipo of the year. shares rising out of the gate. we will speak to the chief executive. a .7%. this is bloomberg. ♪
generosity is its own form of power. you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues.
here in new york city. i'm julie hyman. mark: lovely day there. i mark barton. let's check bloomberg first word news. alisa parenti has more from our newsroom in new york. to pass agress needs stopgap spending the by midnight, or some government operations will have to feast. coal state lawmakers want a one-year extension for miners' benefits, instead of fix in there now. john mccain says there is very little doubt that russia interfered in the election. other republicans will join this probe. that will put them in conflict president-elect donald trump who downplays the possibility of a russian role in the election. the u.k. was to stay in the eu
emissions trading system, once brexit is complete. that is according to officials familiar with the matter. greenhouse omissions across europe. it's unclear if the eu will allow the u.k. to remain after brexit. china's president xi jinping says he is certain that the country will reach its economic and cultural objective this year, according to its state run agency. it has surprised skeptics with three quarters of growth. they will further open the economy next year and try to attract more investment. .nd in paris, iraq invitation the -- a rat infestation. there are two and a half rats per person. parks are closed and trash bins are being redesigned to keep rats out. global news 24 hours a day powered by more than 2600
journalists and analysts in more than 100 20 countries. on alisa parenti. this is bloomberg. julie? julie: thanks. shares are how the trading on the third-largest ipo of the year. the new company reached just over a billion dollars in the offering and price shares of $40 appears. joining us now, alex barinka, our ipo reporter. she is a special guest. do have a special guest. the stock is trading above the $40 ipo price. how are you feeling about the open right now? >> great, great. it could not have gone better. we are really excited for the company. we have worked hard for this day. we think the best is to come for us. alex: walked us through this. you are an annuity provider. you have a tie to apollo as well. thene is a 7 --year-old
financial services help company. we have $80 billion in assets. we over -- we have over a billion dollars in excess capital. we have no debt. unique opportunistic asset management capability that is really a value add for us. investorstoday, dollars, a mix of that. more shares than initially offered. why are investors so different,: we are a meaning better, financial services story. we have a more efficient organizational structure and a superior management team. i think it's a very unique situation. we expect more things to come in the future.
blackso, colors leon talked this week -- carlos leon lott talked this week about opportunities in europe. he said that there is a moreenge because it is fragmented. how do you see the landscape overseas? jim: in partnership of apollo, apollo has a worldwide reach. we are confident that they can help us with research and acquisitions. weh a small german company bought a year ago already. we are excited about doing more with apollo. we think that there is opportunity there. are: açai from germany, there other areas in the euro region you would see as the first woman next step for you all? think there are significant opportunities in the u.k.. we have been working on that for a while, so hopefully that will bear fruit pretty quickly. alex: when you look at your portfolio, you have built a lot by buying other assets.
you have over a billion dollars in excess capital. where are the opportunities for m&a going forward, now that you are a public company? i think most other financial services companies have legacy issues. we are only seven years old. we don't have legacy issues. we think we are the first call from sellers to athene. we think there's a lot of opportunity going forward? -- going forward. alex: can you narrow that down a little bit question mccourty looking for? based liability we can invest behind, that make sense for us. if companies are making the returns that we think we can -- partly because of investment capability, part of our structure -- we can be a good buy for them. it seems like the federal interest rates are going up. what is the higher level on athene's impact going forward.
tina percent of our $70 billion investment portfolio is the absolutend demand for fixed annuities in this environment is higher. than 3%.ke 4% better a full-sized balance sheet really helps rates. thank you for joining us on listing day . athene.rdi from back to you. up next, prescription company express scripts -- here's a look at the shares. fell roughly 7%. this is bloomberg. ♪
julie: you are watching bloomberg. i'm julie hyman. and i will mark barton. this is your global business report. expelrliament votes to the president, toppled under a it was peddling -- under an influence peddling scandal. julie: and the terms of the u.k. brexit plans starting to leak out. mark: is there any benefit, nearly two years since the european qe bond buying began? the president of south korea has been impeached and the company is -- the country is bracing for the aftershock. here is the reaction after that vote. >> this afternoon parliament passed the presidential
impeachment motion. i deeply apologize to our citizens for causing such a big national confusion amid national security and economic concerns due to my carelessness. the prime minister now steps then as the acting president until because visual court deliberates on whether to formally enter presidency or reinstate her. the ecb has rejected a plea by italy's monte dei paschi bank to raise more capital. paschi lost more than a billion dollars in the first quarter. manufacturing increased 3.3% in november, which exceeded all estimates in a bloomberg survey. meanwhile, china's consumer price index rose 2.3%.
brexit secretary gary davis says he does not want the transition deal with the eu to cushion the impact of britain leaving the bloc. that is according to a meeting with business leaders. despite attempts to underplay the report, it threatens to undermine theresa may's desire to keep plan secret until formal negotiations begin next year. julie: it is time for our bloomberg quick take, in which background on issues of interest. qualitative easing or qe has worked in the u.s. and other countries that of used it, including japan and the u.k., but will it work in europe as well question mark it has been difficult for the 19-nation euro area to do the same thing, but after the central bank tried other measures, if pressed at with full-blown qe. begun by mario draghi, they
began buying bonds in 2013, 6 years after u.s. embarked on qe. ledo draghi overcame german opposition on the governing council and initially embarked on the asset purchase plan worth about 1.1 trillion euros. it now includes corporate debt to rid the latest adjustment takes the total buying plan to 2.8 trillion euros. cut the interest rate below zero in 2013, the first major institution of its kind to try such a move. here is the background. the treaty that founded the eu prohibits the ecb from financing governments and buying up government-backed bonds has tested idea. the german bund is bank has been particularly outspoken against this. -- bundesbank. the argument. fed style qe in europe has overcome practical and political
challenges. companies get most of their funding from bank lows rather than selling bonds, which is more common in the u.s.. that makes the financial market smaller and less liquid. there is a debate about the effectiveness of qa and a concern that it yields asset bubbles is money flows into stocks and assets, instead of benefiting companies and households per you can read more about qe and all of our quick takes on the bloomberg, and that is your bloomberg business report. head to bloomberg.com for more stories. mark: shares and express it -- express scripts getting pounded a. andrew left tweeted that the prescription management company behindculprit pharmaceutical price gouging. it is a charge that express scripps denies. joining us, andrew left him about her and executive director of central research. andrew, thank you for joining us. we are really happy you have joined us. i just want to tell you what jpmorgan has said today.
they say it is an overreaction. nothing new has come from your allegations. they say, we do not believe that they are the cause of high drug costs. on a scale with most drug rebates going back to health plans and employees. what you say to jpmorgan? havew: i don't think i ever written a story where an analyst actually said, you know what, he is right. it's like the valeant story when it was 100 $70, and they go, oh, my god, he's right. i would expect that. if you look at the notes, the one i would pay attention to the most is the one from bank of america that says pbm's, that is do, they negotiate drug prices. left does not understand pbm's. but we need to look more closely into by resource.
express still part of scripts that not one of the analyst is properly addressed. do not forget the it's not just me. when you look at the state ,ttorney general in new york messages is looking into the relationship between express scripts and the pharmaceutical companies right there. so, i will give you an example. you look at something like akbar , that's $34 a vile and how does this get reimbursed? if you go to the website, you will see the reimbursement is done through united by resource. they are representing in this case the pharmaceutical companies in keeping these prices high. it is only 1% or 2% of unit volume, and it is that spread and also those rebates and the profit center of united at bio that we are questioning
has never broken out the difference between the pbm model and the other model representing pharmaceutical companies. mark: andrew, how much does express scripts make off of rebates on high-priced drugs and how much do they keep from the -- keep for themselves? andrew: it's amazing. why would i have to answer that question? shouldn't that be in their whole idea,'s the exactly. they should put how much they put demo rebates, what would happen if the rebates get cut, and that is something for a short seller or anyone. show how muchso is coming from united bio source. julie: the stock has come down, a big drop in january when health insurer anthem made doublet its dispute over pricing with express scripts -- made public its dispute over pricing with express scripts.
could make the argument that are investors -- that investors are well aware of this dispute within the industry question mark andrew: you can say that if you want to, of course. theirice is trading reason, but there's a lot more to go. through my experience in the stock market and short selling for over 20 years, if a company does not disclose something, there is a reason why they do not disclose it. the fact that this division of the country is gone unnoticed -- and is not the pbm part. i understand the nature. it's completely different thing with anthem and with ross. that's a whole other topic they can be discussed. the rolent to know, in of specialty pharma and getting these drugs reimbursed from the client, from the insurance companies, what is your relationship with the pharmaceutical companies and doing it? it's amazing. they are representing both sides
of the business, but there is one side that no one discusses, and not one analyst is actually broken down and said, oh, this is exactly how it is done. instead, they have left me playing guessing games on rebates. julie: what led you to this conclusion then? you insearch point mis-direction, if, as you say, the company does not give the information out? "time" we saw in the magazine article with donald trump this week, he mentioned bringing the prices down across the board. it has been interesting the past year watching these names and the individual tallies being taken out of the boom. theout actually looking at whole system. what is interesting about trump's statement is he understands the systemic problem. for someone like me studying the industry, if you really want to take care of a systemic problem, how do we start? what is a good start? two words. express scripts. they are the gatekeeper to
high-priced pharmaceuticals in this company. indeedbut if it is systemic, why single out express scripts? there are other pbm's, right? andrew: yes, there are. ofie: wouldn't it be reform the whole system question mark andrew: the ones in my opinion that are most opaque are express scripts because of the relationship with united bio source. i have seen it. just go to google and put in united bio source and you will see it -- here is the drug that was not supposed to be reimbursed like in the insurance companies, had very hard restrictions and you will see whot there on the website gets it reimbursed. it is both sides. they are not representing the insurance companies. they are representing the pharmaceutical companies. andrew, really quickly, what other loyal hanging fruit is there and how low to the shares go?
andrew: if the shares all of a sudden -- bernstein did really good work on this, the analysts. if you take the rebate and you cut the rebates just in half, the stock could go down tweet five dollars, $30 from here. -- $25, $35 from here. who knows? we have to make drug pricing more clear. there's a machine, i will be publishing it. people will understand how drug pricing is done. if you look at the amount of money they make, it is obscene compared to everyone else, and not just gross margins. how much they convert to actual cash flow shows the money being made on rebates and everything else that actual operations. you do not produce this type of cash flow with those types of gross margins off normalized distribution business. this does not look like a distribution business and it's not. this is a company that makes money off big rebates and big reimbursements from pharmaceutical companies.
and before you defend it, any of the analysts or the companies come out and give actual numbers. andrew, thank you for joining us. andrew left, founder and executive officer of citron research. this out of italy -- the decree law finalized for the monte dei paschi rescue. the bondholders will be affected by the decree. this after we broke the story that the ecb is not going to extend the lifeline that monte raiseschi wants to capital through this year. italy is finalizing its decree law for a passkey --paschi rescue. julie: breaking news on trump's personal choices. he has selected gary cohen as the director of the national economic council director.
there is also a report that he will pick cathy mcmorris rodgers choice foron as his interior secretary. and he kicked off the day meeting house speaker paul ryan for joining us now, blue barks -- our bloomberg politics reporter. that healso the news could appoint ambassador to japan. of these appointment's, which one stands out to you? they all stand out in various ways. goldman sachs, gary cohen, one more goldman sachs employee invest -- executive to be on the truck transition team, now his cabinet. if that is true, that raises a lot of questions. people are wondering where the swap draining rhetoric went for donald trump. he talked about reining in wall street, talked about how hillary clinton was in that was wall
street during the campaign. now yet another member of his team coming from goldman sachs. trump dismisses those concerns. he says he is appointing people who know how to make money, people who can get the job done, people who know how the system works. he's going to brush those concerns aside. the appointment to interior is an important one. cathy mcmorris rodgers is the only senior female member of the republican leadership in the house. and her appointment to that position, it she is up getting confirmed would open up a spot in republican leadership, possibly to be filled by another female covers moment. if that's true, we are going to start to see a lot of people like me love and other congresswomen in the running for that job. those are two things that stand out to me. be bloomberg news
story today talking about the project up at the energy department based on a memo from the trump team. part of this has to do with this questionnaire, apparently, that folks at the energy department, staffers are now receiving. this intel and how unusual is it during a transition for this kind of thing to happen? reporter: it's not that unusual for -- for a while the truck transition team was put aside for not having discussions, conversations about the transition -- the truck transition team was put aside not having discussions, conversations about the transition. he needs to learn how things work. the concert a lot of people are having is that a lot of the questions on this questionnaire are talking about or seem to suggest that there are revamps in the energy department in store, things like questions do we keep aging
nuclear facilities online? ones that might have retired. what do we do to keep those running? another question is that suggest they are taking a hard look at the energy department, and this comes after the appointment of head ofchoice for the the epa, scott pruitt of oklahoma, who has been an opponent of barack obama for climate change policies for some time. of people arelot watching, what is going to do with energy, what is trump going to do with climate change and renewable energy and things like that? we will be looking closely at that in the coming days. julie: all right, our bloomberg politics reporter in front of trenton -- trump tower. somes you heard, there are
protesters. also, gary cohen will be the national economics council director. that is according to bc. we're trying to confirm that for the bloomberg. also, what will this mean for goldman sachs as well? and on "bloomberg technology" today, an exclusive interview with penny pritzker. that is at 5 p.m. eastern, mark. mark: coming up, the ecb rejected monte dei paschi's request for extension funding. yes, we are rising, six consecutive days, the best run since october. the highest since january, the six the best weekly rain since february. the closes next. this is bloomberg. ♪
♪ mark: we are going to take you from washington to vienna. we are going to cover stories out of italy, out of the u.k.. european central bank said to onect monte dei paschi's bid a capital plan, increasing the chances of a state bailout print this as the italian treasury is set to happen this hour. julie: bank of america and ceo brian moynahan says there is a glass half-full mentality in the wake of the trump election. mentality around business confidence in the wake of the trump election. saudi arabia is starting to temper production. we will head to vienna as non-opec members will attend the meeting saturday on more reduction. >> some breaking