Dollar to climb. The greenback had slower against all major peers to its worst year and more than a decade. We will bring you some of the key traits. Asian equities, what they had a bumper year. They had hired to yearend. We will bring you the winners and losers from 2017. Lets talk about was going on these markets right now. The cac relations for the idea that we are actually looking to a positive start in europe. Its low volume and not that much of arise. Looking at the s p, theres a slight dip. We will see with the futures deliver. Asian markets are little more mixed. China has come off a little bit and australia has had a soft day. Lets see was happening with the gmm. As you can see, australia down by 3 10 of a percent. The dax did not have a great day yesterday. Chinese well bid. Lets show you was happening in the commodity complex. This could be interesting. Crude, well bid. Of 60 box a barrel. Look for the oil story. Copper, is trading softer this morning. Into thes back australian markets. Wonder whether some of the european miners might take a little bit on the chin as well. Lets get a bloomberg first word news update. Happy friday from asia. Donald trump has warned china over alleged oil trade to north korea. To unidentified south korean officials, satellites is observed chinese vessels transporting oil to north korean ships 30 times since october. Tweets, he isp right disappointed. He also says the investigation into possible ties between his campaign in russia makes the u. S. Look very bad. He believes that Robert Mueller is going to be fair. The comments are made in an interview with the new york times. Republicans believe the idea of the investigation is tainted by antitrump bias. The u. K. Government is withholding the publication of files on the european union. The document state from 1992 and are due to be released today. 500 documents, 114 are being held back and a dozen of them relate to european policy. The Cabinet Office denies deliver the hiding sensitive material. U. K. Prime minister theresa may will meet french president emanuel macron next month. Meeting touse the discuss britain financing border controls between the two countries after brexit. Who pays for tighter border checks . It could prove a headache. Liberia, they have a new president after decisive victory. In marks the nations first fully democratic transition in more than 70 years. President previously played for top football clubs in europe. This is bloomberg. Guy thank you very much. The dollars year in meltdown has accelerated. Up 16 major currencies are in the kurds is headed for its steepest decline in more than a decade. Lets go to singapore. Mark, its a simple trade is to come of this year. Next year, dollar down, come come commodities up. Thats exactly what going on is been going on for a few days. It will likely extend into the early part of next year. People are focusing on the fact of the u. S. Has a large trade deficit. U. S. Infants Interest Rates have been rising and are not helping the u. S. Dollar go up. What can drive the dollars higher rates can do it . Looking to next year, its becoming a problem for the ecb to maintain this negative rate policy. They are where it will be too long until they have to start changing their language and telling people when theyre going to move ahead and go back to some kind of normalization policy themselves. Thats a very very big factor. Right ratethe hiking also sells they will be joined by other Central Banks next year and it will be a negative factor. Guy rate differentials have not worked this year. You have a treasury of 2. 4. The dollar should be strong. Why will Interest Rate differentials matter Going Forward . I think they will they start to go the other way. When you see european rates rising more quickly. U. S. Rates will peak sometime next year. The yield curve will be flat. Thats negative for the dollar as well. The curve is starting to predict the next recession. Truepposite of true is in europe and asia. The yield curve effects while the play. And just the fact of the psychology that commodities are doing so well and people know from previous examples about 10 years ago, in particular, when lar prices were soaring stock prices were soaring was negative for the u. S. Dollar. These kind of consensus traits can make people nervous. Everybody is one way of the dollar. How badly out of position will the market be if the dollar actually stages a recovery here . Mark he could be very messy as one of the things that could trigger that is if the equity market we have a great surge across the market the world. He could reach a point in the First Quarter of next year that equity markets are overextended and you get a sudden reversal. A quick 10 decline, for example. That would surely make people go defensive and pushed back into the dollar. Its not that we could not have some very abrupt changes. People are getting used to that. Over the past decade, corrections tend to be quite file it and shortlived but we do get done. Gethe First Quarter, we can a sharp correction in the market. Commodities are on the front foot. For about as does the dollar but also the supplyside stores. This one of these things are underestimating . We saw the super cycle psychology. Even a little bit of that, even returned to people getting up to even wait in their portfolio, could really change that story. Definitely, because we has in the past there were times who commodities became attracted to people dont usually trade commodities. When the asset class you are not trading become so interesting you start looking starter capital into that, it becomes a big play. Weve seen it in oil before. People suddenly all shift into oil. There is room for people to shift towards commodities. When you have one of the Biggest Companies in the world, china itself is starting to pull back for environmental reasons, thats a big factor for the rest of the world. China cannot be underestimated the situation. Guy great stuff. Thank you very much. We will see you in the new year. Follow the entire teams thoughts throughout the day. Get analysis on what is happening in the markets. In the light be go ego. Go. Liv it is good smoked was 12 months you got into big coin. What have been the best and worst acids in last year . Well talk about the next. Start0 minutes into the of european trading. The final session is coming through for the year. We are counting down to that market open. Its get a first world news update. Apple hasphie apologized to customers for Software Changes is reduced performances of older other phones older iphones. They said they did not intend to shorten life the product. They said theyre cutting the price of replacing batteries for phones no longer covered by warranty. A new provision in u. S. Tax law intended to prevent u. S. Companies from shifting profits from bought might also hit foreign banks with significant payments in the states. Because global banks frugally move money around, the requirement would amplify their income for calculation. Uber shareholders have agreed to sell a sizable stake in the company to bob to a group led by softbank. It implies a 48 billion value for the company. Also 1. 2 five quarter 1. 25 billion directly invested. That you very much. Play 17 is been great if you invested in the coin. Bit coin. Or venezuelan bonds. The looters and loser of 2017. Of 2017. S and losers in a year where volatility has been low, what is the dispersion of Asset Classes look like . Who has been a winner and who has been a loser . Its interesting. Theres a lot more winners than losers this year. You look at some of the stocks and currencies that are done well. The emerging markets are going to be the outliers. We have a number of central and east european currencies and stocks that of done particularly well. If you look because exxon, ukraine, all of those markets have done very well. The check karuna is a standout. Many of the other Eastern European currencies as well. We also have a lot of comeback kid stories. You have argentina and south africa. Both their stocks have done quite well. You have Leadership Transitions from people who are populist and focused on well distribution to more business leaders. Doing well for the markets. Looking up at underperformers. What is particularly striking as it has been such a good year for markets that even the dogs are not that bad. The worstperforming stock market is pakistan, down 22 . Barely in the correction category. The second worst wouldve been the qatari stock market. Thats down 17 . Its been a terrific year for markets across most Asset Classes. Number one is obviously the current of currencies. The crypto currencies. Although big coin went out, it came down 30 the past week. Its a small asset. Its market capitalization is less than wells fargo. Just one of the largest banks. A year when everything has gone up, the dollar has gone down, is a couple of other factors. What is the outlook for 2018 . You sell the stars and by the dogs. Does the outlook for next year. Looking at the bill big sell side and the fund manager calls for next year, the consensus appears to be that we have six to nine months of more of the same. Stocks,d good times for fairly contained rise in yields, because you have the synchronous Global Economic recovery and you have this well telegraphed scaling back of monetary stimulus from the big Central Banks. Mark was telegraphing that there could be a little bit of volatility in the first part of the year. One thing many people are saying, that we are keeping an ion, is global inflation trends. If an laois and finally starts to emerge, Central Banks will have to hold back their stimulus that much faster. Have a great new year. Thanks so much. To give us a retrospective and maybe a little bit of a look ahead. We talked about with mark. They coin. Coin. It appears to have found the bottom this morning just above the 14,000 level. Fromstill around 20 down its december 18 high. Join us from hong kong, erik lamb. The volatility around this clamping down by the south koreans, it appears to be a factor in the market. Is this what we can now look forward to into the beginning of next year . Volatility has been a feature of this asset class. With a b regulatory fall that takes his new 2018 . From talking to strategists and observers of the market, there is a sense that we have been waiting for regulators to voice their opinions and come down on crypto currencies through the year. South koreas seem one of the bellwethers for the global trade of crypto currencies. 1 5 of Global Trading comes from south korea. This asulators may see south korea taking a lead. If we are talking about them taking a stance now, we very well might see other regulators go further in 2018 and come up with their own kind of revelatory ideas. Ideas. Latory one of the more eyecatching comments from south korean governments, including talking about clamping down are shutting down exchanges, they have stepped up the rhetoric. Its a process and thats likely to continue going into next year. Guy whatever you learned . Is the crypto currencies space a zerosum game . This was postulated to me earlier this year. Move out of one, they move into another. Itcoin loses, etherem gains. At the beginning of the 90 ofbuiitcoin was investment anchor currency. Thats now down to 40 . Other crypto currencies have taken their share of the money in the space. When you talk to people in the industry, they see these rivals is a good thing but thats as long as you assume the pie keeps growing. Of money invested tops out at about three and a billion dollars. If thats the case, you have a problem. Their slice of the pie is smaller. The ability for more institutional and Mainstream Investors to get into the space, that works out for the better for both. The see of as a way to grow overall. If they grow, there is more room for everybody. It andle stop buying start buying alternatives, thats a problem with bitcoin. Guy thank you. Up next, take a look at some the stocks will be watching this morning. Airbus could one of could be one of those. Ordering. Raft also thats next. This is bloomberg. Market open seven minutes away. Lets talk about the things that could be moving. A bunch of orders for airbus. One out of china. Those are for the narrow bodies. The a320 neo family. Most of these look like deals previously announced or the china deal, which is a transference within a preexisting set up. Maybe the market will react. Keep an eye on energy. Oil is trading higher. Crude is now north of 60 a barrel. The market open his next. This is bloomberg. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Guy last trading session of the year, minutes to the start of cash trading in europe. Lets talk about what we need to know. The pound well bid into the open, up another. 2 against the dollar. The dollar is down against everything. Oil, it couldion have an impact into the open. It is up another. 6 . Wti trading north of 60 a barrel. The nikkei closed fairly flat going into yearend. The yen has had a cracking year and in some ways, it will be interesting to see if that is a feature of next year. Climbeddutch s p close. E. Not expecting a lot. The market could be fairly quiet today and lacking a little bit of liquidity. There could be interesting yearend twists. Lets see what we can expect. Is where we are on the ftse 100. Keep an eye on the minors. You saw copper rollover after a crashing run. The oil story could be one to watch out for. The ibex opening up just north of 1000. Now dipping into negative territory. At a headline level, there have been very little moves this year. Below that level, the sector story is where all of the action is. Lets take you to the sector story and talk a little bit about what the map is telling us. It has been this rotation that has been so important in whether you have outperformed benchmarks and delivered the alpha. We will talk about that later in the program. Volatility at a headline level has been compressed, but the sector rotation story has been interesting. Financials are met mixed this morning. Health care trading a little softer this morning, one of the losses. We are seeing energy, i call that wrong, trading softer despite the slightly stronger oil price. Materials look more mixed losses. Despite copper is coming under a little pressure. Ftse trading in negative territory. Most of europe is down by. 1 . I. T. Isals fairly next, one of the areas we are actually seeing a little outperformance. Doesnt exactly have a great deal of i. T. To think about, does it . Look at the quick markets. Ftse is flat, nothing to see. Downnd dax down cac. 1 . Dax was down about. 7 yesterday. We get cpi data out later on. Inflation will be something to know about into 2018. The movers in terms of the individual stocks stories. If you were to pick anything out this year from an equity point of view, the sector rotation story, the stock story is more idiosyncratic. We will talk about that more later on. Poly metal a little lower in the as a. Pace, paddy bank of ireland down. 9 . I dont think there is a great theme there, anything that tells you about what is going on more broadly. Lets rotated hand look at some of the winners. Here is the picture we are finding ourselves with. Health care, astrazeneca better bid. Trading a little softer this morning. I wonder if there is an oil price element. Reckitt, nex, i dont think there is a theme to what is happening here. This has been a year where volatility has been very low. Volatility at a stock level has been more broad. The dispersion has been greater. Lets talk about one of the stocks stories investment stories we have been focusing on, a year of management trying to get a grip on a business. Uber shareholders have agreed to to an 17. 5 stake Investor Group in japan. It implies evaluation of 48 billion for the start up. That is a steep discount. Joining us from tokyo is our tech reporter. What can we take away from this investment . Talk to me about how significant this new investment by softbank is. You just mentioned the steep discount. In addition to that, the deal has come with quite a bit of all ofnce reforms and that has made it a cliffhanger. We didnt know whether it would go through to the last moment. The governance issues are probably one of the interesting ones from bloombergs perspective. The border will be exposed extended to 17be seats and softbank will get two of those. The structure for stockbroking, which heavily favored the early backers. As a result, it would seared severely reduce the influence of the x ceo and cofounder, travis kalanick. He will also get something out of the deal. We dont know if he is selling any of his 10 stake, but benchmark capital agreed to drop their lawsuit against him. In the end, hopefully this will help the company and the that have marked 2017 and let it go back to business. Guy there have been a lot of scandals surrounding the business. Good for uber, bad for lyft, right . Thats right. It is part of the 9 billion investment, most of which will go to original investors. At 1. 2 5 billion, that will go to uber itself. That will help them try to catch up with lyft in north america. Plus, help them catch up with their investments abroad. They have been in the middle of very aggressive global expansion. Guy very quickly, do you think s management were anticipating the idea that softbank could invest in their business rather than uber . He has certainly made it public that his interest was in both public companies. It was never clear if you seriously considered lyft, but it paid off as a scare tactic for existing uber investors. At this point, you can rule out investment in lyft. Guy thank you very much. That was our tech reporter joining us out of tokyo. Lets turn to the United States, alex rutland says america is in a new era of low inflation. I dont see any signs of inflation and neither does the fed. Inflation has been falling. It is very mysterious, but actually, i have been saying