Major averages here, all of them down by more than 1 . It would be tough to pin that on mario draghi since he spoke early this morning new york time. Its a broadbased selloff we are seeing today, we have energy stocks, health care stocks, financials, all trading lower and accelerating the decline. On. Day has gone interesting situation here, without a sharp catalyst necessarily as we head into the afternoon. Earlier affecting european stocks much more sharply than u. S. Stocks, coming out with a Quantitative Easing Program which he did not extend the size, he only extended the duration. Many Market Participants were surprised. I want to point out the movement we are seeing in transportation stocks today as well. The dow transportation average down 1. 7 , its lowest in about two months time. More bad news from the railroads today, Credit Suisse has been holding a two day industrials conference. Yesterday we heard some of their railways giving their outlooks. Union pacific the latest. It is talking about lower year volumes, business mix challenges, and a focus on core pricing and continued productivity. Not just onweighing union pacific, but the other railways as well today. David we have seea bin oil higher. Julie oil has been rebounding today. We still have opec ministers meeting. Liftu can see here, this in these oil prices. Energy stocks as a group are still down sharply. Worst performers, chesapeake energy, which has been one of the worst performers. Is doing a today proposed debt exchange, saying to junior debt holders that you can exchange these for new higher ranks. The would be an issue, chesapeake still continuing to struggle. I talked to one credit analyst who said that this exchange was not unexpected and yet we are still seeing sure is down 10 as chesapeake and many of its competitors continue to struggle. David that is julie hyman at the markets desk. Lets check on the bloomberg first words news desk. Mark new details are emerging about yesterdays deadly shooting rampage in San Bernardino, california. Authorities say the two suspects had more than 1600 lets with them when they were shot dead by police. A dozen bombs and more than 3000 were latermmunition found in their home. The death toll stands at 14. The number of wounded now at 21. President obama has ordered u. S. Flags to be flown at half staff to honor the shooting victims. British warplanes struck Islamic State oilfields in eastern syria. Germany prepared to send Reconnaissance Aircraft to the middle east. As Coalition Forces stepped up efforts to fight the militants. The heaviest rainfall in more than 100 years has devastated major areas of southern india. Thousands have been forced to leave their submerged homes and schools, offices, and airports remain shut for a second day. Received more than 13 inches of rain over 24 hours. That is significantly higher than the average for the entire month of december. Withonnecticut man charged jumping over the white house fence on thanksgiving day is not being allowed back in college. Attorney says the 22yearold has been refused reentry to the university of bridgeport. He was permitted to return to connecticut to live with his mother under electronic monitoring an he has a curfew. A psychiatric evaluation has been ordered. You can get more on these and other breaking stories 24 hours a day at the new bloomberg. Com. From the bloomberg first word desk, i am mark crumpton. Fails,when all else printed new money and buy government bonds, that is quantitative easing in a nutshell. That is what mario draghi is sticking with, at least until 2017. Will it work . Draghi is boasting it has worked so far. The cost of credit for the fell by approximately 80 basis points. That under normal circumstances, one needs a reduction in Interest Rates by 100 basis points. David for more i want to bring in a former member of the bank of englands monetary policy. You, everybodysk forecasted there would be action. Some forecasted deeper rate cuts. What accounts for the disconnect . Clearly overpromised, under delivered. Markets were under the impression that super mario was going to do something. Is not so response super mario. It certainly looks that the ecb has cold feet, the germans did not want to go down this road. Play mario just draghi talking about the successes in europe. I wrote down 10. 7 unemployment, half of euro area countries in deflation, and retail sales today cell today sale and france and germany. If that is good news, im afraid bad news dominates. Too little, too late. They are paying the consequences of raising rates too soon in 2 011. The fed must beware. David mario draghi said they were doing more because, quote, it works. Then, the inclusion of local and regional debt in the program explain the significance of that move. Danny the idea is that you can broaden things that the fed cant do. The intention is to try and make this qe program rather more effective, because in some sense there are limits to what you can buy, but this apparently is mostly going to be german and spanish debt they can purchase. The bottom line is its not going to generate that much of an extra impact. Negativen is that the rate cut was very small. There really was very little additional qe going on, that is why the markets were singularly this issed, because just fiddling while many european capitals are burning, but they are struggling. Fed chair janet yellen on the hill today testifying before the joint economic committee. She has her eye on the jobs report coming out tomorrow. Janet yellen job growth has been solid for a number of years. Disposable income in spite of the fact that wage growth has remained in that 2 , 2. 5 range, theres been a lot of job growth that is added to disposable income. David she is saying she is still worried about slack, big jobs report coming ahead of the meeting. How bad a number would we have to get for there to be a bad number that would forestall the feds raising rates this month . The fedt does look that is heading to raising rates. 75 probability that the bloomberg showing amongst economists in the markets. I think they should not be doing that, because the number we should be looking at is the employment rate, which is 3. 5 ts below what it was prerecession. The proportion of americans in jobs is much lower than it was. The amount of slack in the andomy is really very high, the logic is that wage growth is nowhere. Have a view that we are a long way from full employment, and these jobs numbers should not be pushing the fed there. The worry is if they raise rates, they have a negative reaction from the markets, as the ecb did today in france and germany. That will be over a 600 point drop in the dow. There are dangers for the fed, and focusing on a single jobs number is a mistake. David let me close by asking you about communication. You mentioned that mario draghi overpromised and under delivered. There has been so much communication about what was going to happen today. Heard from jenny yellens colleagues on the board of governors. Contrast the level of communication between these two banks. Danny communication is difficult partly because this is the committee and sometimes the governor of the central bank is speaking for themselves. Janet sometimes speaks for herself rather than the committee. You cant exactly prejudge what the committee will do, because the plan isnt much of a plan to crisis, thishis historic unbelievable levels of monetary stimulus. Thingse trying to say if work out in the way we would like, then we will move in this way. The problem is the data does not move that way, and the committee does not necessarily go in the way that you think. Both of them have issues. Is rather more of a consensus in the ecb. It is starting to look like there wont be that many dissenters to that decision. Communicating what a group of people are going to do is pretty hard. Blanchford, professor at dartmouth college. Well president obama take up gun policy . What impact will the banks crisis have throughout brazil and beyond . Fed chair janet yellen was not the only way one only one making headlines on the hill today. David lets head back to our markets desk with julie hyman. Julie even though we are now seeing more of a downturn, i want to look at the more positive movers were seeing in todays session. To mining is one of them, the company out with preliminary numbers and hosting an investor day today. Some of itsprovided longterm production and costs forecasts and analysts are greeting those and saying the outlook is encouraging. To cut costs should be viewed favorably by the market. Especially on a down day, it is notable the shares were up by 5. 4 . Kroger has been making acquisitions to add on to its network. It has been pushing more organic products, including store branded organic products. 5. 4 . Ales up analysts have been looking for a gain of 4. 5 . If i go also out with earnings that topped estimates. The Company Says Demand for mobile phone components in particular. We talked about the big consolidation wave thats been going on within semiconductors. Avago has helped lead it with its planned acquisition of broadcom. Broadcom shares are up as well by nearly 5 . Turn to San Bernardino. This morning president obama once again addressed the American People in the aftermath of a mass shooting. President obama we will have to search ourselves as a society to make sure we can take basic ,teps that would make it harder not impossible, but harder for individuals to get access to weapons. David today marked the second time in a week president obama has addressed a mass shooting. On tuesday he said he hoped the november 27 shooting would start, quote conversation and action on gun control. Let me ask you about what we know about the weapons that were used in San Bernardino yesterday. Forhe feds identified weapons, two long guns, ar15, military style rifles, and two semiautomatic distills, one made by smith wesson, one made by a lesserknown company. These shooters were wellequipped. They also had a vast amount of ammunition. It is the ammunition thats more important than the particular guns. Its a proliferation of ammunition that allows an attack like this to become so deadly. David i remember in the wake of sandy hook, california was held up a guncontrol advocates as a real example, a state that had done more than many others to prevent people who should not getting guns from having them. california overall probably has the toughest guncontrol in the country. Thats why it is so difficult to deal with the mass shooter problem. California has already done the tinkering. Assault weapons for the most part are already illegal in 1240. California. This points to the fact that if a person or perhaps people are determined to attack in a public setting, if they plan it out, the precise nature of the law, how you go about acquiring your next firearm, probably will not deter them. David is the future of guncontrol going to be determined on a statebystate basis . Thatave had some states have placed new limits on people being able to get guns. It seems the president has done all hes able to do through executive order, and congress is not budging that much. Will it play out on the state level . Paul we will see some limited number of blue and purple states moving toward marginal changes to their gun laws which will make it marginally more difficult to acquire a new firearm. The difficulty is that if the adjoining state or four states over its very easy to get a firearm, the trafficking guns does not necessarily stop because the activity we are concerned about is illegal activity, not a legal purchase at a main street gun store. The problem is people who intend to commit crimes and at the extreme, people whod intend to commit murderous mayhem. David there is something predictable about what happens in the aftermath of this shooting. Gun sales often tick up after them. President obama theyre looking rather wary. Conversation will once again turned, i assume, to talking about what the federal government can do. Do we see any movement, potential for movement . Paul i do not see any serious potential for Movement Rate you will see symbolic gestures. Harry reid and chuck schumer, the Democratic Leaders in the senate, were talking about having votes this afternoon on certain types of gun provisions, but the fact is those will probably not get out of the senate because they wont get the 60 votes that you need to pass something in the face of a potential filibuster in the senate. Right word for how the president sounded. He did not sound like a president rallying the troops and saying, we will charge up to capitol hill and change things. Instead he sounded like he was exhausted by the subject. When the president sends that kind of signal, lawmakers will respond in kind. Paul barrett of Bloomberg Businessweek joining us in new york. Still ahead, getting plugged in we will talk to a stanford professor who says he has the answer for getting the World Running on 100 Renewable Energy by 2050. David i want you to google this. Who is the worlds biggest corporate buyer of Renewable Energy . Google. The company is expanding its clean power portfolio to include 780 megawatts of eneergrgy in te nations. Joining me is the professor from standing in diversity. He says we can get to 100 Renewable Energy back 2050. What is your plan for making that happen . To electrifyea is everything so that all sectors if we electrify it, we reduce our power demand worldwide by about 32 because of the efficiency of electricity over combustion. We can get another 7 or 8 of reduction of power demand by Energy Efficiency improvements beyond which would normally be expected by 2050. We are then reducing our power to a total of 39 , 40 rated the remaining amount of power for all sectors would be provided by wind and solar. Solar on rooftops and power plants. Concentrated solar power, and power plants. Some existing hydroelectric power, and tiny amounts of tidal and wave power. All sectors would be electrified. That means having electric vehicles, air source and ground source heat pumps for heating. We have developed 139 country plans so far. The ones we do represent 95 of all admissions. You can see these plants, a summary of them, on 100. Org. Dose plans, what they will is not only eliminate all admissions associated with fossil fuels and biofuels that will address global warming, because the ideas to convert 80 by 2030 and 100 by 2050, and if we do that we can get our Carbon Dioxide levels down instead of rising to between 500 and 800 parts per million over the next 30 to 50 years. It will go slightly down to 370 parts per million by 2100. David you are talking about technology that is existent right now. I wonder what the hurdles to this happening are. It sounds like the hurdles are not technical. Mark all the technologies we are talking about exist today and most of them are at low cost. Costs are coming down. Theres no technological or economic barrier to such a conversion. The main barriers are social and political. People are not aware of these plans. And, there are people who are opposed to them, mostly people in the existing Infrastructure Industries that have a financial interest in keeping things the same. David you mentioned there are 139 countries you have developed plans for. When you look at the map, are there any that stand out as far as having made plans already . Mark if we look at what countries are closest to 100 , in all sectors norway is about 69 . Number two is paraguay, because they have so much hydroelectric power. Aere are a few more that have lot of hydro. The United States is number 59 or something. Only 4 of our total energy is wind, water, and solar. China is even further down. David from bloombergs World Headquarters in new york, and david gora. Mark . Mark police say they found 12 pipe bomb like devices at a California Home being rented by a couple leave to have carried out yesterdays mass shooting. Hundreds of tools that could be used to make improvised explosive devices were also found. They also left the device at the social Services Center where they open fire. The device apparently did not work. Police say the couple had 1600 rounds of ammunition on them when they were killed by police. 14 people died at the England Regional Center in San Bernardino. Another 21 were wounded. A warning from the u. S. Secretary of state john kerry. He says defeating Islamic State wont be possible without troops fighting on the ground. Speaking in belgrade today, he called for a political solution in syria that would allow all nations to fight Islamic State together. In a historic shift, all u. S. Combat jobs, including infantry units, will now be open to women. Todays official announcement by secretary ash carter ands a decades long ban on women serving in frontline units. Secretary carter says the move was part of his commitment to building a military force of the future. Secretary carters decision overrules a recommendation by the marine corps to continue the ban. Have untilrvices january 1 to present a timeline for implementing the change. Five fifthgrade students in new jersey have been suspended for allegedly plotting to attack a high school. Theyre accused of bringing a device filled with vinegar and cinnamon to school. Authorities say they were planning to use it during a field trip to clifton high. The device was later determined to be nonexplosive, the one ,olice official, quoting here it was not a prank. The students were caught after teachers and administrators found written plans on the alleged attack. You can get more on these and other breaking stories 24 hours a day at the new bloomberg. Com. Bloomberg first word desk, i am mark crumpton. Back to you. The arrest has thrust the bank into a struggle for survival. Corporate bond market has lost 5. 5 billion in market value. Let me start with you, and just ask about the current state of the Corporate Bond market. You had a piece out this morning talking about putting this into context. We spend