Claim aanother one. Guy you are welcome. It is daybreak. It is our flagship morning show from london. Regain there is breaking news, yesterday trillions across the month from equity and bond. Today, the guy has raised. Manus it raises its overall loss for 2016. But this great, global reflation trade, is it just as donald trump took the mark, or what is driving at . With fallinga prices and the question for markets is, we have had the Third Straight month of gains and advances in the ppi. You are looking at an 11th month high for the ppi. Export is it going to the relation to the rest of the world . Mining is up. It was nearly a percent last month. Could they be in hike mode . That is what some people are saying. We will transfer this. Stocks are trading and momentum is building. Take a look at the top of the screen. Up by more than. 5 . Another record. And call options on the s p 500 are hitting a record. 9000 contracts, that is what they have their hands on. This has only happened on 10 separate occasions. Every time after 2005, you saw it 3 . It has gained 6 in the next year. You are looking at crude. Ine in vienna live vienna, we will see. And this since opec agreed on a momentous that last week. And were looking at the impeachment of the ruler in south korea. Lawmakers could vote in favor of park. Hment of president and is still the korean yuan looking for its biggest gain since september. And the fifth week of losses for this commodity. Stocks are rallying and gold is dying. Etf cut for 20 days in a row. Sorry, good morning. Sophie, good morning. Sophie yesterday, quantitative easing could boil down to three words, less is more. Denied aghi ascalled taper in place even they raised 60 billion euros to 80 billion. It is a pragmatic and flexible way to call may materialize. Second, there is no question about t3. Discussed. S not been ophie thes President Trump says present you like to will have to play by the rules. For they his nominee ambassador for china. There has been a clear warning issued about the bottom line on taiwan, with the headline leading relations needed more than a friendly messenger. Gold and a salon. It should be a bit week of losses. Eroding annual gains. That has set High Expectations to boost the dollar and deliver money out of the haven. And it john glenn the First American to orbit the earth has died at the age of 95. The Historic Space Mission made him a hero and then he followed with a career in the senate. He was a Fighter Pilot in two set and as a test pilot, he a continental speed record. You can find more stories on the bloomberg. Manus thank you. We will get straight out to fornici has undone losses 2016. This momentum is building. And the yen is under pressure. Happy friday. Julia happy friday. Yes, a very good day for Japanese Equities. We saw them at a six year six day high. And looking at 1. 2 on the close. As we said, it is about the dollar strength. There has been a lot of momentum coming through in the Japanese Equities over the couple of weeks. Shanghai looking good. We had inflation at better than expected. T is up seven 10 and we have casino players coming under pressure. This is at a report that the atm withdrawals will be capped starting from tomorrow from a au. Mac a strong dollar meaning emerging market economies coming under pressure. It is down around a third of 1 . Also weakness in malaysia. And Energy Stocks looking good. You have the westerly market australianigher market finishing higher. And taking a look at currencies in the that has sent the offshore down by about a 10th of a 1 . And of course as you say, the yen is under pressure today. Guy juliet, thank you. We will see you later for more market action. China and its inflation gate. It rose to the highest level since 2011. Heavy lifting. And global inflation, here is our Bloomberg Intelligence man. Tom, i got very excited, the fastest pace since 2011. And then i looked, it is copper and coal and they tend to be volatile. I think you hit the nail on the head. Think about why this is happening. A lot of it is the commodity story, it china importing iron or and other areas. 7 in is down to close to the last year. That adds to import prices for china. And those combined with additional pressure from domestic demand, that is what is pushing the Producer Prices up again. Guy what does it mean for the economy . Manus we get this data yesterday, so what is the consensus view in terms of momentum for china . Tom i think the latest information day is another strong data for china paid we had strong export numbers from yesterday. And we had the pmis, strong for november. Indicate that their economy is going into the beginning of 2017 with a little bit of momentum. And with serious risks looming. The donald trump terrace tariff could kill the rally before it begins. The government is imposing controls when they start to bite, we will see the construction come down. That will take the heat out of commodity demand to push back down again. Talk about , what is the latest . Have you been gambling . Tom only with my health. The story there is that there is a rumor in the Hong Kong Press that the government is going to put a cap on atm withdrawals in the offshore gambling center. An immediate negative impact on the casino stocks. Over the course of the day, we have had analysts questioning the reports. No official confirmation, so those stocks have regained ground. What this story underlines is the continued market on the issue of market controls and the china stuffing money a stopping money escaping from the economy and the application it has always from the casinos to jewelers to sydney real estate. Secondly, the vulnerability of the whole casino story, to the beijing policy story. Manus tom, you are right. The high rollers will be word. Thank you. Host for the next hour, welcome. Trade in the headlines and there we go. We have pbi marching higher, do you buy into it . Or are you cautious about it . A lot of the numbers being driven by commodities. You say that the china year on your commodity index, or the is verye correlation close. There are factors that are starting to weigh in. The pboc as tom said, the outlook for china is ok, but there is a lot of factors we will need to really take notice of. Particularly donald trump, so therefore a neutral stance is exactly what everybody should be looking for. Manus it is strange you mentioned donald trump in regard to china. Trumpy written donald says that china will play by the rules, this is after he announced you have the iowa terry on ourith side, i know we will succeed. With has been so soft people who did not get it. We will have Mutual Respect and we will benefit from terrys position to lead the way. So things have shifted in terms of china. What does it this relationship need to look like to invoke optimism from the Trading Community . I think we need to see temperance of the language in the short term. He comes in and his first day in label, that he will still china as a currency miller be later manipulator on his first day. He does not need congressional approval for that. Iff onere will be a tar china, so if he starts to bring that back, it will certainly engender more positive feeling within the relationship. Secretary, the treasury secretary who ever it may be, the looked toward that needs to be more about International Trade as opposed to american protections. We do not see it at the moment. Manus now that you mentioned it, day one he could go for that, but with the reserve they are look, the smallest drop in five years. This is the offshore you want. It has dropped. It is a perennial question, but given the data, do you think the chinese are going to be happy with the slow moving car crash on the yuan, or have they had enough in the move . Happy tomore than let it weaken. It has been in just a month for china. Obviously donald trump taking over on january 20 and Chinese New Year is the first week of the viewer, first week of february, so we will see the consumption going over that time. I would not be surprised if it continues to push china above seven. Manus looking at the variety of aspects, all going back to the Federal Reserve in emerging markets. Is 2017 another year of easing . Be believing it is over . Laid it down as the end of next year. Ratesd with interest rising, probably neutral. Is that neutral or frightening . The convergence is not happening anytime soon. Manus ok. Germany, hold some of those thoughts. If you are just tuning in, it is 6 14 a. M. In london, 7 14 a. M. In paris and it is u. K. Trade day. , we will looker junckerynote speech from maastricht. Closes, ithe market is friday, so it is ratings day for the u. K. Dont call it a taper. The purchases will decline from april of next year, but mario draghi does not want to use the magic word. More on that story is next. And a big weekend in the end up. Will vienna. Will russia cut Oil Production . We are on the ground for another big opec weekend. And exporting inflation could why it helps china hit its highest level since the 2011. This is bloomberg. 3 19 a. M. In tokyo. The nikkei up one and a quarter percent. They have undone all of their losses for 2016. A glorious day. And toshiba is up 80 . Ever forget the. 70 and do you have other names taking part in the rally . Mining up 40 . 15,000 we will get a business flash. Good morning. Thank you. Nintendo says it is the highest level in four months after looking at their mario games, giving fans a chance to try it out this week. They are still 8 below amid a flurry as a related to pokemon go. And casino stocks dropping in hong kong and the u. S. Of the reports that china is imposing a tax on atm cap on atm withdrawals. The cap on the cards used by about half of mainland gamblers will take effect tomorrow. The move is seen as a crackdown on a how cash is moved into the gambling enclave. Is seeking as divorce after 31 years of marriage. The familyworth go foundation has given away almost 800 million. That is the business flash. Manus thank you. The ecbs president has announced an extension of the quantitative easing through the end of 2017. Though at a slower pace. Mario draghi says the program will be reduced to a speed of 60 billion euros, going from 80 billion which was currently set up. Add tore is an option to the stimulus, which may not be enough for the ecb. He added, this is not tapering. Securities inf the program with the yield to maturity below the Interest Rate on the ecbs facility will be permitted to the extent necessary. The outlook for real gdp growth is changed. The rates surrounding the euro area growth remain tilted to the downside. In december, 2016, the euro system staff projections for the euro area, which foresee annual 2016. Ion at 0. 2 in 1. 3 in 2017. 1. 5 in 2018. In 2019. Manus it is a dirty word, taper. Is that really what is going on . Class this a Master Communications . It was not a taper, certainly. You saw the up and down, regardless of the temperature. Offar as the expectations master class, he told the market what they wanted to hear. You can see from the euro exactly what they wanted. Manus talk about the eurodollar, because it spiked yesterday. The red headline coming in the cross the bloomberg, tapering down from 8060. And now we are going down. On the conditions, are they set for parity . Bestthink they are the they have been. We talk about parity in times of economic distress within the eurozone, 2017 is shaping up to be a particularly distressing time for the eurozone. Talking about the strong dollar story as well and people talking at 1. 06 at it was the moment. , that used to be the normal. Certainly in the depths of the Global Financial crisis is quite similar moves on the back of it is not france, it is the netherlands and the dutch elections. Manus you are not worried about france . Not all. Manus you think we will get over excited all over france . Up, think it will get bit but the way that the psycho ands and psycho works how it did in 2002, the hedge builders in the netherlands where it is a more classic electoral system, is in the lead. He will not win a majority, but he will certainly win the most amount of seats. That is the worrying thing. Manus somebody will go to bloomberg. Com and when the results out they will actually i know. One i 4227 by this is picked earlier. This is the german curve. The steepest in a year. You see, the market is really trying to get ahead of mario draghi, or is this part of a bigger global trade . You think it continues for europe . I think it continues over the course of the rest of the year. We are looking at the highest level, the most steepening. In eight years. Will it continue . Obviously not. , yes. Of the global trade when we talk about the central bank, that is when we talk about the curves, regardless of where you are. It has finally got to the eurozone. Manus it is fascinating. We were crying into her cups, and banks were getting battered, there was not a return insight. In sight. You could not get a yield. Is back inl market france. What is bad about normalization . Normalization is probably a good thing. Compared to what we have had over the past couple of years. The rates have changed and that is what we need to be concerned about and these moves will probably cause more volatility over the course of 2017. Mario draghi does not trust it, you can tell from the statements. He is looking at the short end of things. Manus i like that. Stay with me. We have much more to get to. The parliamentary session to impeach President Park in south korea. They are casting ballots as we speak. Up next, opec and the outsiders, what is going on . Can they get consensus . It is 6 30 a. M. In london, 2 30 p. M. In hong kong. What a glorious day to end the week. There is a new edition of daybreak. It is on your terminal and bloomberg. There you go. Is theng inflation, that hope. Do you believe in copper prices . Do you believe the rally in iron ore . In the commodity rally . China is surging, ripping do the Global Supply chain. Fromrice index up november. The highest number since 2011. We are in vienna, chasing ministers. And nonopec members. They have a meeting with the nonmembers bid it will begin tomorrow officially, but a lot of chasing done in the meantime. Looking at plans to cut production. Russia is ready. Will they comply with the rules . We will take a look at how they will limit production to 3. 5 Million Barrels a day. And finally, daybreak focusing on the return to the u. S. Market. Back in the usa, Bruce Springsteen you to your heart out, it is agreed they will buy a mistake a stake in spirits. The maker of bourbon and gin. The worlds secondlargest spirit maker did not disclose terms. Back in the usa, a very good day. Getting into the markets. Good morning. Stocks rising in asia, heading for the best week since september. This is after the s p 500 and dow hit records in the u. S. Sincerst yearly gain 2013. Japanese equities poised for their longest winning streak in a year. Looking at what the different sectors are doing, health care is in the lead. Followed by financials. Perhaps some of the higher yields that we are seeing from the market. Energy is up with Oil Extending Gains above 51 a barrel before opec meets with producers from outside of the group. 10 of a percent. And the worst performer against the dollar, the south korean yuan is down, because they are putting today on whether to impeach the president. The euro is pretty much unchanged. It did have a slump at the end of the day yesterday. It is a racing the surge. Dovish,ot hawkish or whatever you do, do not talk about taper. And a lot of this is about the 10 year treasury yields moving higher and climbing toward an 18 month hike bubbling up the dollar. And the yen set up for decline against the dollar. The u. S. Japan with their gap. And finally fed of the opec meeting, the Oil Volatility hitting its highest since march 1. Look at how much it has come down, now at its lowest since october. Manus thank you. With the very latest on the market roundup at 6 33 a. M. Cut onng the historic Oil Production, another meeting between opec and nonopec members. We are outside the headquarters. And mary, great to see you. What do we expect . It was attending and who are you chasing . Good morning. If last week was about finding this Historic Deal and getting it done, tomorrows meeting is about getting the rest of the gang on board. Have been an14 invited, but only five have confirmed they are attending. As you know, if you have covered these meetings, russia is the ringleader of the nonopec group. They are the ones able to push opec of the edge to get the deal done. Last week, they were pledging 300,000 barrels a day, a cut of that much. Pressure remains numeral will make up the remaining to get to the 600,000 that was part of the deal. Beside pressure, only one other has pledged to cut. And how will it materialize . How will they actually cut . The 300,000, after it could come from natural declines, which we know is not a real curve on output. Sophie it is not. Manus when you look at the board you have up there, it is fascinating to see who will bring it. Is it going to be outside of the saying, you need to get on board. Mexico will get on board. My question is, the followthrough, is it that what we want to hear at the end of the meeting . Will i be talking to you and you will say, everybody got on board and it looks like it was a united front . Marie it completely depends what the talks come down to. I think because russia is leading the charge with 300000 and now is able to get the deal done, i think others will follow. Only arman has said they are willing to cut. Willing getting to the 600,000 could be a struggle. Be with curve will not the natural decline. Other previous russell rivals, they agreed to cut 500,000 barrels a day, in 2001. If you take a look at this chart, you can see the following year the only ones continuing to cut was norway and mexico and you see russia ramp up production. History tells us about what these countries say and do is sometimes a different story and that is what the market will Pay At