In u. S. Stocks. All three major averages touching closing records. The nasdaq the only other three to also trade at an intraday record as we see strength on this day when we have a smattering of earnings reports to keep an eye on. That is one of the things helping boost the stock market. Also in the case of the stock market, technology is outperforming. Word aboutsay a volume. One of our chart masters cooked up this chart. Here is the average volume if you go back over the duration of the bull market. Here is this year in white. And the low of the bull market is here in red. 2017, volume has been running well above average. It started to arise a little bit, but again, still below the average line. Something to keep in mind as we enter this latest stage of the bull market. Back to earnings, i mentioned a smattering of them today. Tocks are rising, helping support overall gains in the s p 500. The packaged meat make a harm ormel, theiret h averages up 2. 5 . Medtronic coming out with earnings that beat estimates. Also comingeering out with a forecast that left room for it to be estimates. I want to mention currencies. Thes the dollar versus mexican, having a sharp downward move. Similar move in the canadian versus the u. S. Dollar. I am watching the nafta headlines. The latest is that a nafta deal is near on telecom, energy, and ecommerce. That according to a mexican business representative. However, earlier in the day, it seems as though the nafta talks where sputtering. It is the latest headline that shows we are perhaps nearer to an agreement on certain areas that appears to have triggered this movement downward in the u. S. Dollar as a result, the bloomberg dollar index is also down. Particularly of note are these moves versus the mexican peso and the canadian dollar. Mark last wednesday, the stock 600 fell to the lowest in a couple of months. Since then, it has risen three days out of four. Of 1 . Ges up by 6 10 germany, of course, has been in the news the last four hours after Coalition Talks collapsed. 6509 shows how the dax has outperformed its benchmark peers since trump was elected. This is normalized in zero on of it last year. The dax in blue, up 25 . , theecond best performer s p 500, roughly 20 higher. The fifth is the ftse 100, barely up by eight percent since then. Germany is powering ahead, despite the fact today, it is rising as well despite the fact there is not yet and you government. A new government. Another great chart centering in on that theme of the instability within the german political system right now peripheral bonds are outperforming thanks to two different sources. Thursday, the kneejerk strength. Gth bund commerzbankng reminds that the free democrats not ls party were could shore up sentiment he says on periphery debt and will continue the spread narrowing. This is a ingermany, blue line. Articlegermany, white line. Italygermany, yellow line. The spread have been narrowing on the street. And nestle among the companies a ering a purchase of others, including u. S. Food makers and buyout firms are said to be interested. Shares of nestle up by three quarters of 1 today. Vonnie thank you. Sticking with the markets and stocks us to talk about ahead is ben laidler. Has 2650 as a target for the s p 500. That is roughly 2. 5 above where the s p is today. 2. 5 in all of 2018 it almost seems not worth bothering. Lets take this one at a time. Doubledigit earnings early next year. The elephant in the room is what are you prepared to pay for that double evaluations, u. S. Valuations. 20 to 25 above historical levels. At a time when Monetary Policy is becoming less accommodative. Nearly 10g down Percentage Points a year. We clearly have not seen that this year. I do think you need to write some of that evaluation compression in for next year. Vonnie with the 10 year u. S. Yield at 2. 3 now, why bother . Why not stick with safety bonds and do away with equity risk . Ben that is a good question. I think the multiasset cases it is clearly not obligated. Some there are clearly numbers and other regions. We have doubledigit returns and emerging markets, for example. Mark talk about tax reform impact on companies that have or have not moved ahead of potential tax reform. Who is positioned and where . Ben taxa form is one reason we are over u. S. Equities. We like u. S. Equities in general. The icing on the cake could be tax reform. That 10 Earnings Growth could end up being 16 or 17 , if you get tax reform next year. So if you like that sort of upside optionality. Mark a couple of other big calls. Underweight japan. In the last week or two, we have guessed after guest saying by japanese stocks. You are underweight and contrarian underweight europe. Talk us through those. Ben japan is simple. The double headwind of the yen, which we think will incrementally strengthen. That will put pressure on very high japanese earnings expectations. We have one of the biggest gdp slowdowns globally coming out of japan next year. To growth essentially having 0. 1 , which is trying growth. It will be a they headwind, especially as you point out sentiment in japan has gotten quite bullish recently. I think that is a mistake. Anope, similarly, i think is earnings disappointment story. You get maybe 9 growth out of europe this year. Given the macro recovery, given how depressed earnings are, i think that is massively disappointing. Next year, i think Earnings Growth will be even lower. Disappointment just builds from here. Mark why has europe given the macro backdrop why have earnings remained at low multiples . Seenyou really have not much of a recovery. The latent Political Uncertainty is part of that. Has notnger euro helped. European corporate are the most globalized that there are. Those are the two main reasons. From here, we are looking for slightly less macro events. And we are looking for slightly higher bund yields. Vonnie so what is everybody else missing . It is true in the last few days, saying, the exact opposite. Bullish japan and u. S. , more so than a 2. 5 gain for u. S. Equities. Ben of japan, hope springs eternal. This has in a market that has underperformed for literally decades. Corporate profitability is still the lowers lowest in the world. The narrative can be attractive that all of these things will gradually recover. We do not think they really are. It is a relative value track did in europe, i think earnings are the past. I think there is recovery, somewhat. There are just better ways to play that. In the u. S. , there are sectors we like. Are. 5 above historic average doubles. We think there will be compression. Vonnie one what are the sectors you are pressure active on and what are the gains they might give . Ben we like cyclical sectors. The u. S. Economy is growing right now. Very healthy. The dollar depreciating, which is helping. Sectors,these cyclical pmi globally, is very high right now. Global anything in that cyclical space very depressed and recovering. Materials, energy, the supply side is a lot tighter than people think. Quite a lot of these cyclical stories. We have this globally synchronized strong recovery coming through right now. Mark you say that is supportive of m a. Which industry, from here, could benefit from that . Ben m a in the u. S. Has been very depressed. M a in europe has been very strong. We are looking Forward Industries that are very fragmented and could benefit from more consolidation. For us, european banks, machinery, chemicals. These are the sectors where activity could be ripe. Vonnie our thanks to a ben laidler, Global Equity strategist at hsbc securities. Time for the first word news. Emma in germany, chancellor Angela Merkel says she is open to having new elections to break an impasse to forming a new government. Merkel made it clear she still plans to serve her fourth term, but after Coalition Talks broke down, she said she would rather face voters again then governing without a majority. Trumpays to the administration, we will see you in court. He is vowing not to sell cnn to appease the administration. Meanwhile, the Trump Administration is ending a temporary program that allows nearly 60,000 haitians to live and work in the u. S. Many arrived after a devastating. Er earthquake haitians will be allowed to stay in the u. S. Until july, 2019. Ae Washington Post reports woman have accused Television Host charlie rose of making inappropriate advances towards them. Pbs is halting distribution of the charlie rose program. Bloomberg, which has a distribution agreement, has ended Aaron Charlie rose. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Thank you. Coming up, a bloomberg exclusive with the chief executive of syngenta. Is bloomberg. Vonnie live from new york and london, i am vonnie quinn. Mark i am mark barton. Futures in focus. Oil rising. Above 57. U. S. Crude stockpiles expected to resume their drop. Gold climbing. Joining us is the president of blue line futures, bill baruch. What will it take to push it above 60 . Bill i do not think it will break through 60 quite yet. I am targeting 58,97 ahead of the opec meeting. One of the reasons i do not believe crude can push through 60 is because of positioning. Are going to have to see a little bit of a cleansing, which can, after the opec meeting. Once we work our way up to 58. 97, then we can see the market retreat and then make a second attempt in the First Quarter of next year. Mark still concerns russia may not tell the line when it comes to extending production cuts. Do you expect everyone to fall into line and for those cuts to be extended in a week or so . Bill i believe russia is flexing their muscles right now. They want to show they are in control of what they want to do. But they are ultimately going to join forces with opec. There is no doubt this production deal will happen. However, this production deal will be completely priced in. I do not think we get bullish surprises. That is why you will start to see a waterfall effect back down. The market has just moved a very well and constructively off of 55. We want to watch that level after this meeting at the 55 mark. Again, i am very bullish, heading into the opec meeting. Mark how do you feel about gold . 1270 range. L in the what will break us out . Bill that was a big move yesterday. Than 20. More i think it failed at 1300. It got above 92, but when they reopened, the sellers retook control of the market. The 200 Day Moving Average yesterdays price average moved off of that. I like gold long time. I think we will see a perform very well next year. However, we do not really have a catalyst that will push and breakout gold. Downplayedsomething was yellens resignation. Everyone knew she was going to step out. However, the impact the fact that she assured everyone will the fact that she assured everyone she will not be there next year meant there was not the dovish voice in the fed. Vonnie time for the latest Bloomberg Business flash. Eryer is looking bay is trying to win approval of its 66 billiondollar acquisition of monsanto. Bayer is trying to figure out how much of its units could speed up the antitrust investigation. The Company Already agreed to sell its seed aggregation. Nestle is exploring a company that sells nestle has made talks to buy hain celestial deal. Citigroup fell in the latest ranking by global regulators. Authorities, they are recommending that citis capital surcharge be cut. Also the bear upon bnp fell in that ranking. Mark still ahead, we are live in istanbul for more on what is driving the latest rounds of market turmoil in turkey. Also, syngenta was taken over by chemchina, the largest foreign takeover by the chinese. How has life changed for the swiss Agriculture Company . This is bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn in new york. London am mark arden in i am mark barton in london. Lets get to turkey. We are joined by cosan cyclical us constantine. What exactly did the central bank do, and why have investors given the central bank the thumbs down . The central bank reacted to the nearest lira slide. Bond yields spiked. The central bank step in by cutting off some of the cheap funding banks had access to, pushing up and funding costs by 25 basis points, affective as of tomorrow. The move helped trim some of the losses for the currency. What a lot of investors remain unconvinced, unimpressed. They think the central bank some believe the central bank needs to push Interest Rates up higher to combat accelerating acceleration. They believe policy remains to loose. Vonnie what is the level that terrifies the central bank and makes it want to step in . Question. E good it is unclear what level of the central bank would become very uncomfortable. Thatbearers are looking at level. It is hard to say what the central bank is winking exactly. There will be a point. Vonnie how did we get here . Constantine a couple of factors. Inflation has been accelerating over the past couple of months. Relations with turkeys western allies have deteriorated. Both of these factors have led to investors demanding higher rates to hold onto lira assets. So market rates have been creeping higher steadily. The central bank is has pushed through measures in the past month and have not really convinced investors. They started auctioning some nondurables. All of these measures do not really seem they are not as effective as a straight up rate hike. So there is concern the central bank was going to drag its feet or not act is how we got here. Mark how does this feed into this whole independence of the Central Bank Narrative . Clearly is pushing the central bank not to raise rates. He does not believe it controls inflation. Where is that argument progressing . Constantine friday, erdogan criticized the central bank quite publicly. I think that was one of the shortterm triggers for this latest move higher in the dollarlira. Investors seem to think of this criticism is assigned that political pressure on the central bank is growing and that the central bank may succumb to this. That is the backdrop. Mark cosan cyclical us Constantine Courcoulas reporting from in simple. Vonnie coming up, a bloomberg exclusive with the ceo of syngenta. This is bloomberg. Live from bloomberg World Headquarters in new york and london, i am vonnie quinn. Mark i am mark barton. Lets check in on bloombergs first word news. Emma the Trump Administration additionalnounce sanctions on north korea, a day after her trump added kim jonguns regime to a list of countries sponsoring terror. Russian president Vladimir Putin plans to call donald trump today regarding the situation in syria. Putin had a surprise meeting with syrias president yesterday. Rewrite the north American Free trade agreement is said to be sputtering. The fifth round wraps up today in mexico city. Co and canada the u. S. Is frustrated the two countries will not, with counterproposals on issues such as regional content rules. Taxes tos expecting rise after the u. K. Leaves the european union. See a tax hike after brexit. There is pressure to increase spending. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Vonnie thank you. The agriculture industry has seen several such african deals of this year, the chemchinas 43 billion takeover of syngenta. That negative is just one reshaping the Global Chemical industries. The other is dow chemical and dupont. Joining us is erik fyrwald, ceo of syngenta. How are you taking advantage of this sweet spot for you, given that dupont and dow, bayer and monsanto, are caught up in trying to emerge successfully . Erik ours is an acquisition. Chemchina acquired us a couple months ago. Because it is an acquisition, we are still syngenta, with chinese owners. We can stay focused on their customers. We can stay focused on what we need to do to win in the marketplace, and not be distracted by other issues. Vonnie so how exactly do you plan to take market share from others while they are a little distracted . Erik first of all, we have to drive our base business. We are number one in the world and our Crop Protection products business. And we are number two in the seeds business. We want to further strengthen our crop protecting business and turn around our number three seeds business, closing the gap on the others. We are investing in our base ,usiness, focusing on customers and doing both on acquisitions. Vonnie to the point on seeds, bayer literally announced it is the vesting more seed units to help the antitrust process move faster. Much longer are they getting thanks to whether shocks . Will the development be faster than the ability to ramp up demand to meet them . Erik there are new technologies that are fantastically helping us. Advanced seed breeding. We know more about the genetics of plants that we have ever before. We are able to use genome editing to more rapidly increase the yield of plants and make them more resistant to disease and insects. Vonnie what about the demand fight of that equation . Tok demand continues increase with food around the world with population increase and with people coming out of poverty in places like china, southeast asia, and africa. Going from rice only or carbohydrate only diets to wanting to eat protein. We are wanting to breed into the seeds the ability to increase the protein content, when needed. Mark the seeds and spray model farmersone stop shop to is it still valid . Is stillhink it absolutely very valid, where you can provide the farmer the seeds and also the Crop Protection products. And these Digital Tools we have now are incredible. Now, every form in the world is really a plot, a test plot, to evaluate products and technologies. We are able to work with farmers around the world to better position our seeds and Crop Protection products to help them improve yields, so they improve profitability, but also reduce their environmental impact. Significant ability to reduce co2 emissions and water use. Emissionsenhouse