in europe. toto ignore and cutt ties the europe would say to cut ties to all these people. europe and turkey sit in the same boat. if you try to destabilize turkey or if turkey tries to destabilize or ignore europe, it will be the same boat. for both sides, if they want or not, they are -- there will always be a need to cooperate. on which level is another question. this has to be figured out. but right now, i think i agree with mr. thurmann. it is time to be more honest, and also to realize that turkey is a vigilant democracy, so there has been things in turkey that the reaction might be , theeaction, but remember reunification in germany -- nobody was killed, no tanks were on the street, hundreds of thousands of people -- also in my family, i'm married to a german woman, and my father-in-law was pulled out of the army and my mother-in-law was put out of her job. nobody died. similar --n was not it was actually worse than in germany. now you see in turkey, hundreds of people have died. countrys

in europe. to ignore and cut ties the europe would say to cut ties to all these people. europe and turkey sit in the same boat. if you try to destabilize turkey or if turkey tries to destabilize or ignore europe, it will be the same boat. for both sides, if they want or not, they are -- there will always be a need to cooperate. on which level is another question. this has to be figured out. but right now, i think i agree with mr. thurmann. it is time to be more honest, and also to realize that turkey is a vigilant democracy, so there has been things in turkey that the reaction might be , theeaction, but remember reunification in germany -- nobody was killed, no tanks were on the street, hundreds of thousands of people -- also in my family, i'm married to a german woman, and my father-in-law was pulled out of the army and my mother-in-law was put out of her job. nobody died. similar --n was not it was actually worse than in germany. now you see in turkey, hundreds of people have died. countrysitu

but he had a great sense in his -- thatfe that europe the united states was not going to go to europe and make it a wonderful place. ofhad a sense of the limits what american power can do as a government. that does not mean you should avoid humanitarian work. he would and did support that. that was not a government action. >> kind of like get back on your feet, and we are gone. want us --e did not he even said in 1917, that it was a necessity. , but hei am a quaker did not want the united states inenter world war i alliances with anyone. he thought the european powers would try to manipulate us into their systems of all alliances. it is interesting, woodrow wilson referred to the ouratriots in the war as associated powers. he did not like to use the word the allies. we were associated with them. had a desire for american detachment from what is perceived as old europe. hoover stall of close the kind of rivalries and tensions that occurred after the war, and so -- he was really annoyed at many of them. the overriding purpose he had was to save the children, save the people, give beyond

one outcome in central europe was a massive political clamp down in eastern europe. gone were are the nice coalition governments or attempts at free elections or anything like this. these were simply stamped out. foreign minister mazerik mysteriously fell out of his window. we now have evidence he was murdered and many others were arrested and killed as well. and terror swept over central europe between 1948 and '56 in czechoslovakia alone, over 100,000 people were arrested, imprisoned, tortured, executed. 422 concentration camps were opened up in czechoslovakia, and around 12,000 people a year were sent for example to work in the uranium mines. so stalin dropped any pretense of holding free elections and the countries of central/eastern europe were firmly behind the iron curtain where they'd remain until the collapse of communism. now the allies had to decide what to do with germany. and given stalin's behavior, they now started to turn away any -- again, any thought of compromise with stalin was really going out the window at this point. in january 1947, the britis

many markets have already closed in europe. it's time to look at some of the biggest business stories in the news. the italian rescue of its aschi bank monte p will cost over $7 billion. the european commission says whether the rescue is within their rules. driven up theas expectation for higher bank profits. analyst at morgan stanley say that will not keep wall street from cutting more next year -- cutting more jobs next year. they say banks will use traders and branches. anre's another fight between american broadcaster and a cable company and viewers may lose out. nbc universal says bronco and usa may be unavailable to charter communications subscribers as of sunday. the broadcasters says they have been unwilling in demanding better terms. charter is not commenting. your bloomberg business flash for this hour. 2016 was a big year for changes in the media landscape. based inng giant wpt london was up 16%. you have the u.k. educational publisher pearson which is up 11%. other advertising giants gained and technicolor plunged m

that the voters in europe want. a reformed europe, they still want higher levels of unemployment, problems with growth, what type of europe will people who support the project, when those elections, or will people who want to rip up the project and cause more tension in europe and possibly split up the european union, will they win? it is going to be a fascinating year. we are going to wrap it up, but let's put the cards on the table. could we see a european shock like we have seen brexit, and the election of donald trump? all the polls, i know we have to be very careful, all the polls suggest not, but at the end of 2017, what might be described as the establishment parties have re... put themselves back at the centre of europe. the european project is incredibly important to the european governments, at the end of 2017, at the polls suggest, that they will look more victorious than those who want to break up the european union. one thing we learnt this year was don't listen to the polls! thank you for your time thi

will the wave of populism continue to roll across europe? i will talk to france's presidential candidate emanuel macron. in europe, the far right-wing did not materialize but renzi lost after a failure of referendum that he staked his political career on. in 2017, both france and germany go to the polls to elect their leaders. in both nations, populism is on the upswing. partially embolden in part by trump. i had a chance to sit down with a candidate for the presidency in france's upcoming elections. the economy called europe's biggest populist danger. listen in. pleasure to have you on. >> we are looking at what is happening in europe. you are living it. what do you think is going on when you look at the italian vote? in france you've had mr. fillon do well. is this a wave of right-wing populism that is continuing? >> no. first of all, i would not have compared the different countries and the different trends you mentioned. mr. fillon is a classical rightist. he's not an extremist and he's a very respectful man and nothing comparable with w

earnings in europe, are expected to grow by 12.5% next year. europe had a good growth year. currency hedge -- if you had any mind at all, you might be concerned. have a look at this. markets are the calmest if we get to the nex rest of the mont. markets in europe are the calmest ever. the stocks is trading at a level we have not seen since 2014. we are looking at the calmest talk market on record -- stock market on record. does that mean you want to buy some protection, does that mean you want to be in an unprotected way? when it comes to the u.k., the gulping market is just starting to -- the gilt market is just starting to get underway. u.k. five to 10 year inflation expectations heading 3%, the highest since 314. what does that do to your bond market exposure? -- since 2014. what does that do to your bond market exposure? the great big reflation party trade. i'm off to the big radio party. let us get your stocks to watch with nejra cehic. >> it is a great radio party. the stocks and looking at today, nice moves starting with the health care set your and chilean sanofi.n a

we are thinking autos manned in europe has been strong and the -- in europe. anna: what about the u.k. space navigating brexit? inflation pressure is holding. and underlying the pressures building from the oil price and the input prices story in the u.k. this could be something that undermines investment in u.k. corporate or not? at the ftse look 100, 75% of the revenues are from under -- overseas. cpi in the u.k., over 1.2% but the input prices are running and the double digits, 12% are 13%, and those are coming down the track and our concern is this puts pressure on you wages for the consumer when we go into 2017 so that would be a drag on domestic stories. anna: thanks for joining us, good to talk to you this morning. next nelson at ubs. still the come. over the weekend, you can catch the exclusive interview, france lacqua's a -- francine 2:30 p.m. and on sunday 2:30 p.m. and on sunday at 5 p.m. as well. that is it for "daybreak europe markets." it is fed day. we will see what janet yellen had to say. this is bloomberg. ♪ generosity is its own form of pow

the essential point about continental europe is that 80% of lending in continental europe is a complete inverse of the u.s.. what i have picked up is that there is some real sense of resolve, particularly in italy, to solve the banking issues. what is us talk about happening in europe and whether it is a sad place for a fixed income point of view. mark nash, anything in europe that is attractive right now? we have seen the spread buying out across the atlantic. we are seeing pretty much everything else blowing out as well on the periphery. what is the right trade to make in europe? mark: i think you have to be resembling negative to bonds in europe. europe, just like the u.s., either a fiscal stimulus, and that is not going to happen, so what the european central bank has done essentially is they know their recovery is weak. they have we rose, core inflation is incredibly low. instead, they have done a boj innocence. support --rates to the boj in a sense. if fixed rates. hopefully they can benefit off the positive growth coming out of the u.s.. what they have done is they have looked to

why talk to europe at all? recently, a european politician said all european nations are nations but not all of them realize that. i don't agree with this idea because you have great nations in europe. i don't want to mention anybody unless i offend anybody and we treat them as such. whatever europe does inside itself, how they build their relationships with each other, it is not about business. you know better than myself that they have sovereign nations with a small infrastructure or a quasi-federal state. there are two concepts. like i said elsewhere, the number of provisions of that are mandatory for all the countries make up more decisions made than what the supreme council in the soviet union. i don't know whether it is good or bad for europe. it is not up for us to decide that. it is up to you. yes, there are differences about migrants, the migrant crisis. other things. again, it is up to europeans themselves to decide about that. there are certain countries in europe who object to the current migrant po

well, in britain, across europe and in the united states it has been a tumultuous year. the brexit vote, donald trump's victory, political turmoil in france, italy and elsewhere. all have shown countries divided within themselves. scotland, post—industrial areas of northern england and the prosperous parts of london at times appeared to regard each other as incomprehensible. trump and clinton voters often seemed to belong notjust to different states but different visions of the united states. how significant has 2016 been in terms of these major political events? the deep social and cultural divisions between so—called populist movements and their critics. i mean, that has been the story of most of the big democracies. really big divisions, hasn't it? yes, and your word, incomprehensible... clinton's word, despicable might be more to the point. deplorable. i beg your pardon. and irredeemable, that was a particularly awful word to use. there is something in common in all these, the populist movements in europe, and the divisions in america. and that is a sense that a

so i feel it in europe. i also feel it in the united states. >> in europe trump is truly and deeply problematic it is an identity crisis issue. because you know trump support in europe and the people trump will support are theetion populists, it is fileel forage who campaigned for him it is willedders on the freedom party from the netherlands. it is marine lapen, those are the deepest enemies of these establishments. >> rose: they are the people donald trump relates to. >> is supporting. and assuming that-- . >> rose: with. >> it has gone both ways. we've seen that. we have seen it in tweets in her campaign stops. and if there is indeed not just an end of the confrontation between the u.s. and russia, but if that becomes warmer, that is a significant-- and trump has given every reason to believe he has intention to at least try that out, that becomes a serious problem for nato, a problem for poland, for the baltic states. so the transatlantic relationship which is really the underpinning of this, of history

and europe. in europe, one of the features of the expectation of higher inflation, higher rates, higher growth, is that the dollar has strengthened versus the euro. there is an inflationary impact for a weaker currency in the eurozone, and of course we have raised the prospect of trade barriers and tariffs in the u.s., which raises inflation questions and concerns. that actually, a steep yield curve is exactly what we need, because low bond yields -- we are imposing a huge burden on private sector, increasing the price of pensions and so on, which is stopping investment. a steep yield curve is exactly what the economy needs, and it seems to be what's being delivered. essen at thee in ruling cdu party's national conference. when we see such bullishness out of the u.s., such optimism that tax cuts, infrastructure spending, regulation reform could boost growth and cause interest rates to rise, the yield curve to steepen, does any of that translate over to european governments? this german government

that the voters in europe want. a reformed europe, they still want higher levels of unemployment, problems with growth, what type of europe will people who support the project, when those elections, or will people who want to rip up the project and cause more tension in europe and possibly split up the european union, will they win? it is going to be a fascinating year. we are going to wrap it up, but let's put the cards on the table. could we see a european shock like we have seen brexit, and the election of donald trump? all the polls, i know we have to be very careful, all the polls suggest not, but at the end of 2017, what might be described as the establishment parties have re... put themselves back at the centre of europe. the european project is incredibly important to the european governments, at the end of 2017, the polls suggest, that they will look more victorious than those who want to break up the european union. one thing we learnt this year was don't listen to the polls! thank you for your time this y

francine: you were mentioning europe and the fact you are more concerned about the economies of europe. is there anything politicians can do to stave off -- i don't know if you want to call it a wave of populism or being more angerch or placate folder -- voter anger? mr. flint: i'm not a politician or social scientist, but it does seem to me that people react badly to uncertainty in their own position. they want to believe that the future will give them more opportunities to be able to do more for their families. their kids will have a better life than they have had and so on and so forth, and i think that means giving some confidence to populations about the kind of work that will be available in the future. i mean, we are entering a time of enormous technological change, where technology will transform many of the industries , particularly service industries, that have been less touched than manufacturing. that will have a big impact on the job market, so what will governments do to reassure people that they will invest in the retraining, the rehabilitation of people whose jobs are g

the weaknesses in europe also stem from the unsolved problem in the middle east. putin is causing ever more refugees to be shipped and migrate to other parts of europe which would increase instability in the west. actually, it leads onto the last question as to whether or not there is a cold war in europe? i do not see another. the west is far too weak to present a solid front that it used to have. it is struggling to come to terms with its own crisis. 2017 will not see the end of that. the case for a cold war. we discussed this before. for there being some kind of new cold war in this continent of ours, is ukraine, which you have pointed out is a matter of great sensitivity to russia. as you know, the baltic nations, sweden for example is reinforcing islands in the baltic that they withdrew troops from 25 years ago. it is doing extraordinary things. real sensitivities in the baltic states as well so how do you see the relations between putin and the west, particularly nato? relations between putin and the west will be terrible because nato is not only closing to

if it ceases to be a habit, and the nationstates of europe, the great geography of europe map ofath, a very thin the european union, if that starts to go on, the spaniards start to think about spanish interests primarily, and perhaps even more importantly, the germans start to allow themselves to think in terms of what is their real national interest, then the geography, the political geography, is threatened. and equally,, and i don't want to get involved in the u.s. election campaign, but i have to say this. i find it deeply disturbing that one of the two candidates has actually questioned the fundamental commitment that binds nato together, which is that every nation has to come to the defense of any nation attacked within the alliance. speaking in terms of it is something you have to consider on its merits, what the record of that particular country is, same kind of thinking. if we lose this habit of a recognition of mutual dependence and mutual alliance, then i think it could be very bad. what is my hope? my hope is we won't go down that route. when people really understand what

right now, the model is by in europe -- buy in europe and china. guy: thank you. saving glencoe from short sellers. today, the dealmaking kings. putin's good day. may'sers that theresa timeline as she promises to reveal her brexit plan. will the supreme court throw a spanner in the works? what will the ecb deliver. we will speak to bloomberg's number one ranked fx forecaster. that is our xp. this is bloomberg. ♪ guy: welcome. quarter past the hour. let us see what the markets are doing this thursday morning. european equities outbid. take a look at that line. 11,000. we have moved past it. european equities are welded. -- well-bid. the sector story is where the big money is being made increasingly. autos and parts are where we are seeing the gains this morning on the downside. oil and gas is where the losses are coming through, down by 0.4%. that is where we stand in terms of the main sector story this morning. let us talk about some of the big corporate stories we are increasingly focusing on. we need to talk about what is glencore.with non the announcement com

learn from europe? don't go against nafta, don't try to reduce trade, because we know that single market is good for innovation. i have done work for 10 years, we have seen the enormous effect of the single market. if you only knew the important effects the sickle market has had in the u.k. -- important effects of the single market has had in the u.k. increases competition and that forces people to innovate. for this reason, trade is good for growth. that is the first lesson to learn. don't try to break out of agreements for trade, because trade is good for growth. it is true that trade creates an apology -- inequality, but don't throw the baby out with the bathwater. don't renounce growth and trade just because you have any quality. have systems that can manage the inequality. to be more inclusive, you need education. who will vote for -- you need to educate people. this is part of the innovation process. health is also very important. you should not only reimburse the big operations, you should also r

he had a troubled time in europe. he was not authorized to be in europe at all. german authorities tried to deport him, but did not have the right paper work. it sounds like a lot of gaps here that show real concerning problems for authorities getting hands on guys like this. >> good morning, christine. that is right. you have two problems here. one is that each of these countries in europe has been too slow to really get up to speed with intelligence cooperation and homeland security systems and other processes that allow them to communicate basic information they collected. they have a lot of a haystack and it is hard to find a needle in a haystack. this is one problem. in the end, you cannot surveil every suspect. you cannot keep track every person who has been through the system. i think the debate is in europe and here in the united states, how do you leverage relationships with communities in all of these countries to help you not only keep track, but be a trip-wire first warning system when people like this start to do things that indicate they may prepare

in a changing europe. and the rest of europe is united post-brexit. i think that in some senses this is right, because we want to pursue free trade. we want to get out of the single market and regulate ourselves. and have a relationship with e.u. from the outside, with control of our borders and of our regulations. and i think that this will be very hard for the under 20 -- for the other 20 72 accept. to accept.other 27 they want to keep the relationships of the moment and there is nothing else on offer. that is what they said to david cameron. it is hard to argue against that. theresa may would almost certainly like to negotiate a free trade agreement from outside. i think they are preparing to do that. but whether in fact there will reflect -- that does respect our request for free moving migration to be controlled by us, and for us to retain control of our regulations, is i think a very difficult question. i don't see much give in the european position. i am not bothered by that, because it seems to me our optimal policy is to get control of our bo

focus on europe, focus on asia. the national security council of is incorporated after korea, about 1951 that will dominate our policy. even in the reagan era there is still a consensus about containing the soviet union. it is on the methodology. also, there are signs of dissolution of the soviet union. it kind of reduces some of the impetus. arguably, you know, the antainment grand strategy is fromtisan policy arguably about the late 1940's until the walls go down. bipartisan approach to foreign policy which is pretty amazing considering the state we find each other in today. that would be my take on it. alex: a slightly, slightly different point but interesting to see the popular responses in europe over those decades and perceptions of the soviet union. in thee parts of europe 1980's a reassessment of the cold war, the americans were put into the light of being much more the aggressors that if stalin hadn't been so bad, you talk there is a lot of about disarmament and how the united states handled it. so that ver

what types of europe? will people who support the project win those elections, or will people who want to rip up the project, and cause more tension in europe, and possibly split up the european union, will they win? it's going to be a fascinating year. we are going to wrap it up, but let's put the cards on the table. could we see a european shock, like we have seen brexit, and the election of donald trump? all the polls — i know we have to be very careful. all the polls suggest not. but at the end of 2017, what might be described as the establishment parties have put themselves back at the centre of europe. the european project is incredibly important to the european governments, at the end of 2017, but the polls suggest that they look more victorious than those who want to break up the european union. one thing we learnt this year was, don't listen to the polls! kamal ahmed, thank you for your time this year. happy new year. thank you, and to you. the uk's decision to leave the european union certainly

daniel: basically, low growth in europe is a problem now. down the line it will lead to lower employment. you will have problems with low consumer confidence, this kind of thing. you need to address the situations now, and there is a problem in europe that the tools are not harmonized compared to places like america or china, where they can basically start a business and make billions with your company inside the internal market before even considering going overseas. that is it the situation in new york -- that is not the situation in europe. >> germany and france are talking about setting up a billion-dollar fund. daniel: it is timely. i'm sorry, but it is absolutely timely. when you look at the biggest silicon valley firms, they are worth hundreds of billions of euros. you need investment in other places -- states like france and germany to invest in a digital infrastructure. increasing the speed of your internet connection, or whatever it takes with education, to make sure that wages go down and investments to the companies themselves ar

about year for europe. the continent strained to absorb near-record numbers of immigrants arriving from the middle east and africa. also, britain voted to exit the european union. and a new populist movement is threatening to bring more of the same brand of political change as we've seen here with the election of donald trump. we sat with the e.u. ambassador to the u.s. david o'sullivan and began the conversation with immigration. on the immigration situation, in the u.k., and europe, when we hear things reported in the united states, i think there are views. two one of them is that the gates have been opened and have welcomed people who are in desperate conditions and it's added a great deal of diversity to the e.u. and it's been a wonderful thing. on the other hand, i think there's a view that people are running amok, there are you know increases in crime because of this and people are endangered. what's the truth? david o'sullivan: well, i think it's much more the former and much less the later. i mean i

about the economies of europe. is there anything politicians can do to stave off -- i don't know if you want to call it a wave of populism or be more in touch or placate voter anger, let's call it that. mr. flint: i think what people -- look i'm not a politician or , social scientist, but it does seem to me that people react badly to uncertainty in their own position. they want to believe that the future will give them more opportunities, they will be able to do more for their families, their kids will have a better life than they have had and so on and so forth, and i think that means giving some confidence to populations about the kind of work that will be available in the future. i mean, we are entering a period of enormous technological change, where technology will transform many of e industries , particularly service indtries, that have been less touched than manufacturing. that is going to have a big impact on the job market, so what our governments going to do to reassure people that they will invest in the

other country has in europe. and most importantly, we need an election law that has different majority so it is impossible to govern. they need a new law. francine: we were trying to figure out whether the electoral law is seen as a direct movement , it is actually in the next 6-12 months, there is a chance movementeurosceptic could get into power? said, for the banks, it really resolves around him. the risk of nationalization, the 500 billion -- so worst-case scenario, it is a forced conversion. and that will happen in the next couple of weeks. the ecb deadline is by year end. government, of the they want a representative that is proportional, and with a proportional law, with 35% of today,es and no more -- people, if you ask, do you want to stay in the europe, 65 percent of people say yes. so, you know, these are the facts. tom: i'm looking at the bloomberg screen. what do these italian people think about a minority ownership the banks? and what will be the response of the people of italy? think the majority of

focus on europe, focus on asia. the national security council of 1968 -- which is incorporated after korea, about 1951 that will dominate our policy. even in the reagan era there is still a consensus about containing the soviet union. it is on the methodology. there is also, there are signs of dissolution of the soviet union. it kind of reduces some of the impetus. arguably, you know, the containment grand strategy is a bipartisan policy arguably from about the late 1940's until the wall goes down. a consistent bipartisan approach to foreign policy which is pretty amazing considering the state we find each other in today. that would be my take on it. alex: a slightly, slightly different point but interesting to see the popular responses in europe over those decades and perceptions of the soviet union. there was a very strong movement in large parts of europe in the 1980's a reassessment of the cold war, the americans were put into the light of being much more the aggressors that if stalin hadn't been so bad, you kno

>> it looks like more trouble for europe. we have to get a handle on this and we have to find the command and control center of isis.

and we must not be complacent had corporation which has become a habit in europe. if it ceases to be a habit, and the great geography of europe , very thin now, if that starts to go on the spaniards start to think about spanish interests primarily, and perhaps even more importantly, the germans start to allow themselves to think in terms of what is their real national geography,hen the the political geography, is threatened. d equally. i do want to get involved in the u.s. election campaign, but i find it deeply disturbing that one of the two candidates has actually question the fundamental commitment that binds and nato together, which has to comey nation to the defense of any nation attacked within the alliance. and to say it is something you have to consider on its merits, what the record of that , same kindcountry is of thinking. if we lose this habit of a recognition of mutual dependence and mutual alliance, then i think it could be very bad. what is my hope? my hope is we won't go down that route. when people really understand what is at stake, they will go b

the combined victories of brexit and donald trump are felt across europe. the christmas markets of prague are a glittering symbol of a remarkable transformation. from decades of dictatorship and stagnation to one of the fastest—growing economies in europe. the czech republic's wealth has more than quadrupled in a generation. it is only 27 years since the people who overthrew soviet—backed communism in what came to be known as the velvet revolution. somewhere in this crowd of a00,000 is a much younger than me. reporting those tumultuous events. as news filtered out of the changes from the dark suburban building where the central committee were meeting in crisis, we were with the crowd... there are clearly distinct crowds forming now in the square, one in front of me, chanting slogans that have become familiar over the last week... flags of the czech republic are being raised all round. and the grandeur of the national museum in front of me, lit up in the night sky. it was a really thrilling thing to stand here beneath that balcony and watch an entire nat

europe, me talk about tony. we are trading at one of the biggest spreads that we have seen for quite some time. i have a chart that shows this. if the u.s. is looking europelly expensive, is looking tactically cheap? tony: i would not say that. the u.s. is not expensive when you look at the level of inflation and interest rates. it is fair, not expensive. but to answer the question directly -- our call would be, given the global economic activity, e.m. over dm emerging markets and europe over the u.s., based partially on evaluation discrepancy -- the monitor that -- the monetary stimulus that is happening out of the ecb and the bank of england by buying corporate debt -- is not like you are buying 10 basis points -- you are directly injecting money into the private sector by these two central banks buying corporate debt. it has had a very stimulating effect that most people did not expect. i think that is the reason you want to be looking at europe versus the u.s. bob: if the u.s. does proceed to deregulate, per

it is -- >> it is a signal to the rest of europe, all of europe, and the european union. matt: still with us is kevin gaynor. kevin, do you see this as a turning point, that you know, a pro-european candidate can win, and it is maybe not all about right-wing populist movements sweeping all over the continent? >> no, in short. i think this is the limit to populism. in a core european state, we very much have the memories. i think the extreme right wing will struggle to get into power, even in places like austria, that have a record of sk irting. france is a slightly different 'sory because marine le pen agenda has shifted to more social policies, like benefit giveaways. she is polling very well up in the northeast of the country, on the border with germany. re thats a risk the because she has moved away from some of the more flowery rhetoric, i have heard it that ideas,d copping trump's she could do very well. i think there is a natural limit in places, certainly in europe, to these more extreme positions. the populous migration surrounds economic exhaustion and flatlining

it says counter—terrorism experts are warning that europe's open borders are putting security at risk. the guardian's headline is the end of the manhunt. it says the moroccan authorities had warned germany about the wanted man anis amri. the times has a picture of the body of anis amri under a blanket in a milan street. it also carries the story of a banking terrorist blacklist which is apparently so useless it includes a three—year—old member of the royal family. the daily mail has some advice for anyone who is feeling unwell over the festive season — postpone christmas. the paper says health chiefs prescribe self—isolation to keep the pressure off casualty units. and the daily mirror says chocolate santas could kill. it reports the co—op has withdrawn them from its shelves, after button batteries were found inside. we will begin with how the guardian is looking at story of anis amri, the man wanted in connection with the man wanted in connection with the berlin christmas market attack. end of the man—hunt, it says. the suspect was killed in a gun battle in milan. questio

he was able to have the americans do a lot for europe. as he perceived america, he thought america had built into it, thanks to what he called opportunity and social mobility and neighborly will -- neighborliness, built into the american experience was a community experience, and he saw that through community chest and the red cross and other entities. he tended to rely on those organizations existing, networks of philanthropy and volunteerism. he saw the volunteer spirit as part of the american heritage, so in 1927 when the mississippi river flooded which was the greatest natural disaster in american history at that time, at least 600,000 people were displaced from their homes in arkansas, louisiana and the lower south. calvin coolidge set up a government committee to work with the red cross. hoover was on that committee, and hoover became head of the efforts. for several months, hoover, who was secretary of commerce under calvin coolidge, he organized that relief effort for the mississippi river. he went down there and organized committ

europe will start -- are starting to improve as well. europe will start benefiting as well. i think rocky will seize on this and start talking down into possibilities of endless quantitative easing. and i think the market the signal quickly. anna: a few lines coming through on italy story. francine is on the ground. italy,rious newspaper in saying the kospi will meet with the ecb today. republican reporting that the ramsey-may press for election. we watch all of those for you. peter stays with us and we get his take on what is happening between the u.s. and china next. of president-elect trump could affect growth. he has been there should be patients to see what fiscal program emerges. this, as the fed is in good shape to hit its inflation target next year and a rate hike this month would be a very reasonable option. last official to speak before the start of the blackout. with the fed meeting taking place on december the 13th and 14th. increasingly moving into view as we head into next week. peter, your thoughts on the fed at the moment? hearlike everyone else, we the headl

the south, sicily, has never really been part of that core europe. also, since the beginning of austerity, youth unemployment has soared, which explains part of the no vote. one thing is, i did not think this was a vote against europe against reforms. it was a vote against a political attempt to secure an automatic majority for the party that got most votes. in other words, to strengthen the position of rome. i think people don't want that. brian: they objected to it. alan: they objected to that. i think i can understand why. if we imagine the same thing in germany, one gets 30% of the vote, so the automatic 50% goes to the other, would we want that? i, for one, would vote no. even if mrs. merkel would say to me, this is the only way we can change our country. i would say, if that is the only way, then we won't change it, rather than go that way. it's not democratic. i think the italians voted wisely, actually. brian: if they voted so wisely -- sorry, i need to jump in with ewald here, you were saying you agree with alan, it was kind of a technical p

focus on europe, focus on asia. the national security council of 1968 -- which is incorporated after korea, about 1951 that will dominate our policy. even in the reagan era there is still a consensus about containing the soviet union. containing the soviet union. it is on the methodology. there is also, there are signs of dissolution of the soviet union. it kind of reduces some of the impetus. arguably, you know, the containment grand strategy is a bipartisan policy arguably from about the late 1940's until the walls go down. a consistent bipartisan approach to foreign policy which is pretty amazing considering the state we find each other in today. that would be my take on it. alex: a slightly, slightly different point but interesting to see the popular responses in europe over those decades and perceptions of the soviet union. in large parts of europe in the 1980's a reassessment of the cold war, the americans were put into the light of being much more the aggressors that if stalin hadn't been so bad, you know, th

europe is in dire straits right now. and i think one of the negative consequences as these attacks continue to unfold is europe will become more and more divided. there is a strain, a huge strain, on the project that is the european union, and we are going to have to work out a way to deal with this and these sorts of attacks are completely unpredictable. so the animal way is to start to looking at long-term strategies to prevent the further polarization of our societies. which on a long-term basis is the only way we're going to deal with this. >> naturally these terrorist groups keep trying to provoke these divisions. thanks so much for being with us. >> a pleasure. >>> coming up, late new word on a huge explosion in mexico. >>> also, a private reception with the president-elect, a hunting trip with one of his sons. that was reportedly the promise of an invitation to donors willing to spend $500,000 or more for a post-inauguration event. david fahrenthold of "the washington post" just wrote a detailed piece about it all

how to lead in europe without appearing to dominate. because the idea of german domination still browsers too many ghosts. for the germans, as much as anyone else. germans are incredibly neurotic about world leadership, or even european leadership. they do not like to think of themselves of really having a foreign policy. so, the idea that germany would somehow lead is very disturbing for some germans. i don't think they are well prepared for this moment at all, although things in germany are changing and there is beginning to be slowly a sense that if we do not do it, nobody will. germany remains europe's economic powerhouse, a manufacturing economy and an exporting one. this factory on the german—czech border sells pianos around the world, because they are among the best in the world. this is germany's strength. high—tech, high quality, high end product. but, germany has drawn its european neighbours around itself, locking its own destiny into theirs. building the eu has been germany's way of separating itself from its own past. i

europe. it is one of the largest economies in the eurozone. it is a country with strong institutions. they will have to deal with the economic situation in italy. the reaction to markets are pretty relaxed. solution andasy italy urgently needs a government capable of acting. they fulfilled their under 3%.s to deficit the situation is better today than it was two years ago. mark: take a look at where european equity markets are trading. what a day it has been. stocks fell and they shrugged off the news of the italian no vote. stoxx 600 up by .6%. i have a look at what's happening in the currency. the euro initially following -- falling 1.5% against the dollar. with the bond board. on will see the yields europe's main bond markets rising. seeing thee we are big impact of the no vote in italy. the italian 10 year yield. the close is five minutes away. this is bloomberg. ♪ london, this is the european close. stocks finishing up today, investors shrugging off the italian no vote. constitutional

francine: you were mentioning europe and the fact you are more concerned about the economies of europe. is there anything politicians can do to stave off -- i don't know if you want to call it a wave of populism or being more in touch with voter angst -- let's call it that. mr. flint: i'm not a politician or social scientist, but it does seem to me that people react badly to uncertainty in their own position. in touch with voter angst -- they want to believe that the future will give them more opportunities to be able to do more for their families. their kids will have a better life than they have had and so on and so forth, and i think that means giving some confidence to populations about the kind of work that will be available in the future. i mean we are entering a time of --normous technique technological change, where technology will transform many of the industries that have been less touched than manufacturing. that will have a big impact on the job market, so what will governments do to reassure people that they will invest in the retraining, the rehabilitation of people whose

germany is europe's centre of gravity now. pianos from this factory sell around the world because they are among the best in the world, and that is germany's economic strength. the pursuit of unity in europe has been germany's way of turning the page on its own dark past. the eu has been germany's act of contrition and of redemption. the pianist saleem ashkar is a palestinian, now settled in berlin. what i do see is a country here that has been traumatised by its past, and as a result has become extremely thoughtful about politics. in a way, germany has used its traumatic past for the good. and it is now a very — what do we say in german, very awakened. it's not sleepwalking anywhere, or careful, very careful of sleepwalking. 2016 has given germany a new responsibility, one it did not seek — how to lead in europe without rousing the ghosts of german domination in europe. germans are incredibly neurotic about world leadership, 01’ even about european leadership. they don't like to think of themselves really having a forei

this year europe could well outgrow the united states. already you have europe growing above trend the ecb is still remarkably accommodative. they've just given us more forward guidance and extended qe to the end of next year. >> that may explain why we're seeing this massive gap still between the u.s. and the german bund yields. highest in 26 years. you seem to think growth prospects are better than what you expect. >> it's about the differential in central bank policy. the ecb, look at inflation, it's not satisfactory. even in 2019, they have inflation at 1.7%. way beneath target. they keep going on that monetary easing. we see a wider spread germany, u.s. and euro still takes the strain. >> if you are invested in european fixed income, where do you go? >> high yield. when you look at european high yield, great offer, 4%. when you look at the credit risk there, all that growth underwrites credit risk. that's an environment where default rates go lower and lower. >> the other unique event is the le election risks, first and foremost in f