Will affect business in the year ahead. Away from thetes monday session. For the fourthng consecutive day, best run since november 1 after the strongest weekly gain for the european benchmark. Since may it rose. Currencies falling against the dollar. You have bond commodities closing. We have much to chat about. There is a big to expand medicines for blood disorders. Novo. Ls comes as it has joined a flood of similar treatments from the biggest drugmakers. Competition is heating up. Economic measure of sentiment. From 2012, heading in one direction. It is the highest since 2000. Added to measures of economic activity, the strongest in seven years. Employment continuing to decline in the eurozone. Growth in 2017 was the fastest pace since before the financial crisis. It is forecast to be almost impressive as impressive. Records. Showing that is billy blue. That is the blue. It has 120,000 contracts. Dayinutes into the trading in the u. S. Abigail, how is it moving . Abigail there is mixed trading as well. The dow and s p down slightly. The nasdaq up modestly. On the day, we have occurred highs out of the dow and the nasdaq. All of this follows last weeks trading. Some of theto winners behind small gains. Up 3 on a time is driving. Full slaton and uber have selected nvidia for self driving cars. They will come together to create an Autonomous Car in china. Amazon is higher as credit swift raises its target. Facebook higher due to the biggest move in the nasdaq. We have tech losers out there. Cap movers, big moves even though the market caps may be small. We are looking at gopro, down 23 . This after the camera maker slashed its fourthquarter revenues to 340 million, 28 below what they were looking for. And or and snap downgraded. Pandora and snap downgraded. Snap is 20 below its ipo price. It was the tech ipo of last year. No comment. A deeper look at markets. Joining us in our new york studio is martin gilbert, chief executive of aberdeen standard investment. You are possibly listening to the market report. Days where s p 500 has been trading within 5 of its peak. Does that continue and for how long . Martin i wish i knew the answer to that. The Global Growth environment is pretty benign. 3. 8 next year, u. S. Growing. Theoretically, the market should continue to rise. I am a bit worried that it is a bit too much complacency. That always worries me. Is good reason for the complacency. We have had a fix index going nowhere vix index going nowhere. Liquidity seems to be holding up. What could cause a ripple . Martin perhaps in the middle east or wherever it may be. That may be the thing that shakes the market. It is always something that comes out of left field that you dont expect that affects markets. In 2006, you made a a yearg call about cbo later. You made another pressing call about credit default swaps. We know what happened after those years. Is there anything of a similar magnitude . Are you looking to pockets of the market that are causing similar concerns or close . We see i dont think that euphoria that we saw then and expecting markets to go up. People are confident about the economy, but they are complacent. They are also worried, and i think that is good. Cbo type ofany real event on the horizon great my only worry is government bonds looks very expensive. Beholders of them tend to be holding them for reasons that they have to hold them to hedge unknown liability. I dont think they will be big sellers of government bonds pay mark even if the fed government bonds. Raisesven if the fed three times or more and even if the ecb takes its foot off the gas and maybe the bank of japan does the same . You dont think that will shift bond Market Sentiment russian mark martin that would shift bond Market Sentiment. Sentiment . Martin that would shift bond Market Sentiment. I think all of the things are priced into the market. Doesme ways, if the fed not raise rates this year, that is more of a worry for investors. Vonnie you mentioned bond markets. We are seeing synchronized growth. Where are you most worried about being overvalued or where are you getting rid of bonds . Euros it tends to be the or the u. K. Or japanese or the u. S. Here t you can still pick up in india a 7 yield. It is very much the euro and u. K. Of the world. Vonnie markets have been popular in emerging bonds. Does that continue . If you are worried about geopolitical risks affecting other markets, why not emerging markets . Martin onef the of them is emerging. We do have people on the ground in countries covering it. The key is to keep focusing on the companies. You can focus on where there oup. T be a c it is important to focus on the Underlying Companies and Business Model in emerging markets. Would you change the perception of your now merged company . Em specialist . Martin the merger went well. It is still very important business for us. Is move away to do from the perception that all we do is emerging markets. We are good at credit and alternatives and real estate and all the other areas we are seeing investor interest. As we are talking about the merger, lets talk about outflows you have experienced. You told us that in december. Are ns the out floors outflows are slowing or when they are coming to an end . Antin i think it is industry trend where we are like all other Asset Managers going through a tough time at the moment against this relentless rise in passive that we are seeing in the industry. If that stopped, i would be very happy. For think there is a place a passive, and i think there is a place for active. We have to manage the money well , and then clients will believe in us again. Will talk to you in a moment again. Martin but, chief executive at Aberdeen Standard Investments is staying with us it will talk about the impact possible impact of brexit on the market. Theresa may begins a reshuffle of ministers. This is bloomberg. There are deals in europe to be addressed. The fact that it was an economic rebound and good momentum, we need to stay very focused on that and making sure those issues are not stopping the progress we are making. Mark chief executive Sergio Ermotti speaking to us. Theresa may is reshuffling. Martintalking with gilbert. Last week, a story suggested Prime Minister theresa may the brexit that negotiation is bluffing about a special deal . Will be ank there special deal for Financial Services . Martin i doubt it. They will negotiate in a tough way for Financial Services. France would love Fund Management to move to paris. Mark it has been reported limit eufrench want to funds. What impact would that have . Martin it would obviously be inconvenient. We need to move from Fund Managers to europe. The repercussions would be felt around the world, singapore, new york, everywhere. I think the u. S. Fund managers would find it difficult to be exempt from delegation if we were not allowed to delegate Asset Management back to london. Vonnie what do you imagine what happened . It looks like it will not be london. Think london will be ok in Fund Management. It is more difficult for banks to seturance companies up european subsidiaries, either in frankfurt or dublin. Asset managers tended to run businesses out of luxembourg. Delegation of the management is the key risk for us. Vonnie the goal of the u. K. Economy, how much does that impact your holdings and what do you imagine they will be . Martin it will be subdued. If you look at global birth of 3. 8 or asset at 2. 8, it will certainly be subdued than european growth. It will be difficult until we see what deal is reached on brexit. Vonnie are you holding off on u. K. Investments . Welln the u. K. Is doing in terms of this. I dont think so. You can always make the mistake of looking at what growth is and seeing if that relates into how companies or markets generally do. I keep going back. You have to look at the individual companies. Can we talk about the m word . How is it going. . You are paying banks sen. Lee for share trading. Banks for shares. Martin it is going well. There are one or two teething products. And our point of view asding, it has gone as well we could have hoped. Mark what are your principal worry areas . The unintended consequences from your standpoint . Martin we have not seen it yet. I dont see it. I think the unintended consequences are more on the side. Ide than the buy that is the issue. We have not seen the repercussions on the sell side. How Much Research will be stopped because certainly managers are taking a tough line with the banks on the sell side on the buying of research. I would expect to see a contraction, especially in Small Companies and smaller markets. Vonnie what is the outlook for talent hiring given the amount of people among banks in london, and the headwind . Martin a lot of the analysts on the sell side would like to be on the buy side. Asset managers pride themselves on having very low turnover. It will be difficult. Our whole focus is on retaining the talent we have rather than recruiting new talent. Terms do you see in vonnie what you see in terms of the bonuses . Martin it will be tough on the sell side. It is a game changer for the banks. I think it will be tough. It is tough in the Asset Management world with the relentless rise of assets. Vonnie we will get into more individual holdings in the next segment it we will be back with martin gilbert, chief executive of Aberdeen Standard Investments. We will also be looking at m a and what is in store for the year. Mark still ahead, the european close third basic resources and real estate and the stoxx 600 today. Consumer goods to the downside. 10 minutes away from the end of the session. The first trading day of the new week. This is bloomberg. Mark live from london, im mark barton. The close roughly eight minutes away. Vonnie and im vonnie quinn. Well talk again with martin gilbert. Stock. Alk about disney what about the price, is it fair . Know. i dont i am not on the board. They accepted it and i assume the Murdoch Family thinks it is a fair price. What it does show is consolidation in that industry. People say 1075 is not enough, might you want to negotiate another price . Martin sky is a small part of the overall deal. I am quite convinced they did not buy fox to get sky. To discuss time price, and that is a matter for shareholders. The time to look at that is once and if we get past the approval. What i would say i think the disney bid for fox has taken political heat out of the bid for sky. Shouldo you think it have no problems . Go that far. Ldnt the share price is not telling us quite that at the moment. Say is ihat i would think there is less political heat because of the disney intervention. Think disney should have to make a mandatory offer of the whole fox, sky deal falls apart . Martin that is a question for the regulators. Again, what i would say is that i think there is a test for that and i am convinced they did not buy fox just to get sky. Deal isrationale of the consolidation in that media sector. I think that is why the decideds combining was a very good deal for fox. I am on the board of sky, not fox. Mark you did tell us that you are more interested for the company in integration than m a. Does that reflect on your ambitions in the u. S. And that you no longer want to grow as much in the u. S. . Martin we would love to be bigger in the u. S. The u. S. Is half of the worlds wealth. There is a lot of money here come and we are very underweight in the u. S. Um is inour u. N the outside of the u. S. What we would love to do is have more of our products available here in the u. S. Vonnie martin , chief executive at Aberdeen Standard Investments staying with us again. Next, we will discuss more risk for the company. 4 million assets of Million Dollars of assets. Mark as we head to the close, gains in france and germany. We are up for the fourth consecutive day since early november. Check out the currency boards as well. We are seeing sterling and the euro is down against the dollar. 30 minutes away from the close. This is bloomberg. Mark live from london, this is the european close. Stocks finishing up the monday session. W m go is the wonderful function. London shares down. We have gains for the fourth day. Last week we rose by 2. 1 . Best weekly gain since april. A synchronized upswing in shares. One of my favorite pieces on the bloomberg today is a piece entitled berlusconi could end up holding the aces after italys election and talks about the prospect for italy for the governance of italy, following the election set to take place in may of this year. Uncertainty has put equity and fixed income markets under pressure in recent months. This chart highlights that greeted the portugal 10 year yield, above italys from 2000, from july last year but even before that. The white line is the italian yield. Crossing at the end of last year. Only greeces 10 year bond yield and italian stocks have trailed germany and france over the last three months. Italys 10 year bond yield touched the highest levels october. On jay gray second, that is italy. For Exchange Holdings in china rose by 129 billion dollars in 4017, posting the first annual gain since 2014. Tighter capital controls. By 20. 7 increased billion to 3. 1 4 trillion. The white line exceeding estimates. The big mover in european equities, a Big Tech Company in the u. K. , shares getting hammered down by 17 . Biggest slump in seven years producing falling sales,. Eporting revenue the low end of its forecast range. A sign investors are nervous about the prospects of the uks Biggest Tech Company three at micro focus wrapped up its 8. 8 billion purchase of hpe software assets, application, delivery management, analytics and enterprise security. It shares down by 17 today. Vonnie were back with martin gilbert, chief executive at Aberdeen Standard Investments. Lucky to have him in our new york studio today. You said he wanted to be bigger in the united states. Howd you go about getting more market share here . Martin a mixture of two things. Istributed better that requires investment in the business here. Luckily for us, the large combination, the merger with standard life, gives us that financial firepower to invest more in distribution. We will be more the organic story rather than acquisition or another big merger a sickly. Vonnie isnt basically. Vonnie isnt it all just about the fees though . Martin the industry is under pressure. I think we will see consolidation in the industry. We want to prepare ourselves for that. But also, we would like to be bigger in the u. S. Because this is the most sophisticated market in the world. If you can succeed here, you can succeed anywhere. Vonnie like the song goes, right . Mark as of next month i think lloyds is able to move the money you manage for them, 100 billion pounds. Any indication they will stay with you . Martin as we said in the , whenctus, when we issued we announced the merger. We are looking for ways to work with lloyds. Transaction. D the biggest independent outside the u. S. We could do a better job for them and our clients globally. I still think that is the case. Mark what is your biggest worry . Top three worries for 2018 . Martin complacency. Everyone is just too complacent about markets. They are record highs. Government bonds, Interest Rates as you said earlier going up faster than people expect. Geopolitical crisis with the price of oil perhaps going up. Although that would be good for my house in aberdeen. I dont know whether that is a good thing or not. Vonnie its always a good thing to spend some time in scotland. Jeremy clinton wrote a great piece in the guardian i believe, about how he is expecting a melt up some financial crisis down the road where we see stocks halved in value. Martin we will see some event at some stage which will cause a fall in markets. Lets hope it is not like the financial crisis which leads to. Very long bear market a long period of slow growth. It would be nice if it was back in 1987, a crash and we get on with it again. I remember it vividly. Is vonnie tion the other question is, when that happens, our Central Banks and particularly the Central Reserve , with a be equipped to deal with this . Martin i dont think they need to deal with it. I dont pick we are going to see the same Systemic Risk we saw last time. Regulators have insured the banks are so well they could withstand a shock. It would have to be a big shock for them to step in again. Vonnie fascinating conversation. Martin gilbert is chief executive at what is now aberdeen standard investment. Time to check in on the bloomberg first word news. Courtney the Trump Administration is sending special protections for immigrants from el salvador. The move will force nearly 200,000 people to leave the country or face deportation. Salvadorans have been the largest beneficiaries of the temporary protective status in the u. S. Activist tomrty sayer will put 30 million into this years election but he will not be running himself. Sayer says he wants to focus on ending republican control of the house of representatives. Since 2016, sire has donated more than 100 million to political campaigns. The angersident says that led to a week of antigovernment protests exposed the need for the freedoms he has pushed for. Conservatives proof that rouhanis economic policies have failed to improve standards. He is expected to run and win. He has led the military overthrow of Egypts Islamist president. 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 for that. Coming up, go pro crashing to record lows. The camera maker is making job cuts and exiting the drone business. Where can the ceo go from here . This is bloomberg. Mark live from london, i mark barton. Vonnie live in new york, im vonnie quinn. Of theime for our stoc