Hina stepping up efforts to stabilize its markets through rhetoric by government officials and intervention. 15 much 19 Industry Groups socks 600 stoxx 600. Resources were higher earlier, they are lower now falling with the other commodities. Bloomberg commodities down to 19. 99. Three fallen. Big automated rally today. Volkswagen among them in germany up by 4 today. The first twoday again for since december 24. We had an Industry Group orecast an acceleration in chinese sales. Tuesday, betty, is our lucky day. Wont ask you what your lucky day s. I will have to make up one myself. The pound though declining to dollar st against the since june 2010. What is going on here, mark . Output fulling the most in almost three years. Warmer than usual water reducing nergy demand and manufacturing o output with a worst than forecast performance in november thelighting the weakness in Manufacturing Industry and fears e. U. A u. K. Exit from the which could result after the pcoming referendum and fragility of the u. K. Economy traders, nvestors, economists to push back the forecasts for the first u. K. Hike. We will talk about that. But thats why we are seeing the pound get hammered against the dollar. Lowest since june of 2010. Betty i will raise you another chart that shows sort of how and low the oil prices are going, right . This s this is the crude Oil Volatility beginning of anticipated swings in the oil markets. Yesterdayit is closed at the highest level since february. That, number one, traders are profiting on the volatility. A lot of theres uncertainty about where crude oil goes. Uncertainty and pressure on crude oil prices we re getting headlines right now opec may consider convening a meeting before its scheduled to possibly talk about bringices and, who knows, back production targets. But lets not speculate too much. Meantime, i want to check on the bloomberg first news. Courtney donohodonohoe. Courtney. The suicide bomber responsible for the explosion was a member islam state. It was in the historic area of istanbul. Were killed, nine germans. Another 15 wounded. Theeys Prime Minister says bomber belonged to Islamic State. E pledged to battle the group until it is no long area threat. He Supreme Court struck down the florida system for imposing death saying it doesnt give jurors enough authority to ecide whether Capital Punishment is warranted. The ruling is in the case of a a 1998 icted in stabbing. He was sentenced to death after recommended execution 75. Sergeant boberg dam is back in a koert arolina military charged with desertion and before the enemy. He must decide whether his trial or be heard by a juror judge. Democratic president ial candidate Bernie Sanders is endorsement of mo moveon. Org. They have been at the forefront causes. Al it says he was supported by 78 of hits 340,000 members. Hillary clinton got 15 . Global news 24 hours a tkaday journalists. R 2400 once the big global story again is icon. Speaking exclusively on rodgers gave his outlook of why the turbulence what we different than have seen in the pass. Im theres a major difference in the world in 2016 and 2008 and china does have debt now. It is nothing like america or britain or portugal or some other countries. You are going to have bankruptcies in china. I hope you do. Bet kwreu bett bett betty mark. Mark he is taking a wide view. Investors are bogged down with daytoday volatility. E go through what is happening in china. Would you be a brave man to bet in the ewan clines yuan. We had senior government the one way ing downward bet is not sensible. The official rgue reshrpbs the thing is the is remarkably similar to september following the initial stabilized. The spread connected the down side and it calmed down. What happened in january was another surprise, the u. N. Much weaker and there is a rerun of the same story. Whereby the attern und underlying trend for the u. N. Is n the down side but it is the not that the officials do want this instability or disorderly depreciation but take it one step at a time. That similarity is quite concerning. As much as i would like to officials that is the last time we are going to do a lot of effort to restore Financial Stability it within 2 o keep bounds in order to become members of the basket. Those promises may ripping a at the moment. Mark more money market rates levels five record times monday. Record close. At the edge g undermine chinas efforts to make the kwraufrpb a key funding urrency and intentioniial financial market. How tricky is it to achieve that over maintaining control it amidst this economic slowdown . Observingonal view is september over september and now the case that s there are two conflicting factors. Want the yuan to be a reserve currency widely of and has the credibility a rufrb currency. At the same time you have the you may need that further depreciation to help the recovery. The balance as a whole does slower lly point to a weakness. So i guess the chinese approach has been take it one step at a time. It may shock you first but we will make sure it doesnt selling pressure and from an investors point of view if that is the revealed more. Ence i would expect even if they say nothing more comes i will bets for more. Is certain is the curve is spaepenning. O steepen the steepening. But those measures dont seem to be having a great impact. Like six to 12 months forward and 1 trillion of debt by corporations and that debt is becoming more expensive. Down become more expensive the line if the fed keeps hiking. Ou need to buy the dollars it repay that debt and it is concerning at the long end of curve where the demand is from those in need of dollars 12 road it is the stable. Betty one more on china. He chinese will say you are looking at the yuan all long and rbtd be watching it against a index, a baskets, not the dollar because if you were to look at it that way you see they would say we are not devaluing our currency, it an uncontrolled movement of the yuan. I agree. Didnt a stat that attract considerable attention and away from the dollar and ndex to provide the reference for the yuan. From that point i would think that highlighted the down side for the kwraufrpb against yuan. Ollar the euro is kind of getting close to multiyear lows so from that point of view you would expect if that is there the basis of their future exchange more weakness and could come. Are think investors ustified in expecting further weakness. Initial shock followed by trend ty but then the seems to remain one which still. Betty theres a great article on bloomberg talking about the entral banks overall, not just china. Maybe we are focused on china because they are the worlds econd biggest economy and whatever they do we warm. Watch. T says most Central Banks are devaluab devaluing currencies. Them out calling except china. It is a risk. What the chinese are doing could fuel more currency wars. It is not competitive deevaluation. We have those vertically integrated supply chains but it about boosting exports but if certain Central Banks try push too much to i understand state the praorbgs of currency encourage other Central Banks to do the same. Currenciesk of which the ext or which take away depreciation the strongest trading chinas main partner, we think the geez tolerate a relatively situation. Mark how much further can sterling fall . A lot of research is coming out re we waking up, the Banking ResearchFinancial Community peers you and your waking up to the risk or is to this ething more pounddollar decline in 2016 . The pound is drawn by two factors. Brexis which may have increased given recent polls and migrant crisis in europe. Of it is driving it to the down side. Data has been disappoint the. Hike it is really the matter of evaluation. Starting with that, the concern there come what it may will be a period where fixing investment could slow down significantly. Given the close to 5 current deficit in the u. K. That means the pound will have to balance e sharply to the foreign assets u. K. Is holding against pound. That could be a drop. Ur central view is we believe u. K. Will stay in e. U. And while risk is significant the probability is close to 20 to 25 . I think some of that risk if price. Ot of it is in the thank you for joining us. European close is literally 16 away. S stay with us. Geneva focus out of china on oil prices. Prices have given up their gains we saw earlier in the day. A little surprising to see the gain earlier in oil penning the face of inventory report in u. S. Tomorrow. 2. 5 nearing wn 30. 30. 64. Talking about the negative sentiment we have been earing on oil prices from many analyst analysts. Oil goes so go stocks. The tionally we are going same way as Energy Shares weigh on the major averages. Oil and stocks pare dvances we see the dollar maintain some gain although it has been off the highs. 4 at the ut moment. O not surprising you would see that correlation, inverse between oil and dollar. To put a fine point on it we have the terminal for all three together. The dollar in green, stocks in yellow and oil in white. Stocks and oil going down as the dollar goes higher today. Something we are watching is copper in the session. To a been hanging on little gain and that has turned negative. Lcoa lower as we talked about on earnings and sales that fell. Freeport is being hammered again gold and not a comfortable place. F you look the past two sessions it has been in free fall you could say down 30 over the past two days. Remember, that is on top of very already in 2015. Of all of that. Still ahead, the new bank of governor says the e. C. B. Can take further action to fight lagging inflation. Hear from him in an exclusive interview from paris. Is betty live from bloomberg eadquarters in midtown manhattan and london the european close. Nine minutes to go, betty until the session wraps up for day. E. C. B. Faces a battle with sluggish Economic Growth an prices on top of diverging policies with the Federal Reserve. Interview the new banco of france Governor Bank policy is effective and they can take further action if necessary. Inflation is too low but acing the situation we have been active and effective. Look at our decisions of december 3 last year. Decreased rates at minus 0. 3 programs ed purchase it march 17 and said we would reinvest the principal. Is effective. This is important. We had many studies converging that this policy including this decision will half a percentage point of additional inflation the year, 2016, and almost same for growth. For the future let us first look economic data. This is the most important point. Needed i stress the if, we capacity. Tools and mark we are joined now from the e. C. B. Orecasting inflation of 1 in 20 2016, and with oil prices below the to fall e. C. B. s projection of oil for wonder whether the e. C. B. Is going it need to tools nt those further that the bank of france governor is talking about. Task for be a tricky the bank of france governor who took over in november. Of course, the job comes as he says the e. C. B. That of course e. C. B. Is ready to implement ore action, to implement more tools but he didnt want to exactly what that means furth further. Went into a. C. B. Minus 0. 3 in december. Didnt confirm either whether that means more bond. The uncertainty of the is move from the e. C. B. Going to be. However the new bank of france overnor did tell me that the urrent stimulus should add about a half personal point to inflation and growth this year eurozone. He also tried to be reassuring aying the european economy is picking up. As for france he said france and needs more reforms Monetary Policy cant be the only game in town. Mark caroline, lots of policy makers are meeting in paris today. The binge of england bank of gathering rnor and o discuss the challenges of bolstering prices when interest levels. S at low what has come out of the gathering today . Carolyn. A oline they didnt discuss lot of divergence between the United StatesFederal Reserve e. C. B. Or december and japan doing. A lot of people came to say to the former bank of france governor who was heading the past 12 years. You had the vice chairman of the fed. E. C. B. Apnd carney from england. Of fish of future in case crisis negative rates would be tough to very implement quickly in the United States because that could strength in money markets. The i. M. F. Managing director who made the trip today said the pace of normalization etween the United StatesMonetary Policy, the european will be keynese one in the next phenomena months months because tightening with the u. S. Coincides with more easing in and japan. That could mean further rise to of course that would have an impact on the of emerging markets. Metal she said oil and prices are likely to say highway. Mark the bloomberg commodity 1991. Lowest since when youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Betty will come back to bloomberg markets. It is 11 30 p. M. In new york. Mark, just as you were talking about a few moments ago, the bloomberg Commodity Index is feeling like 1991 again because we are hitting that level. Here in the u. S. The markets have turned red on the dow, and the s p is flirting, about to turn lower. What about the european markets echo mark it looks like we are going to close higher. We were up almost a percent above these levels. That Commodity Index tells the whole story. China is the biggest consumer of commodities. Fears about an actual chinese slowdown is reduced has reduced the purchasing of commodities, and consequently commodities have the bloomberg commodities index is a gauge of 21 materials. It is down 5 , fallen for six consecutive years. I had a chance to see how far it since 2008. It has fallen 17 since 2008. It looks like in europe we will finish the session higher. I am sorry to sound like a broken record, but once again the miters on the back of the decline, they were leading those declines. Randgold resources. These basic Resource Companies the become index tells the whole story. It does indeed. Here in the u. S. , you guys are higher, but we are turning lower , the dow off right now just by 12 points, but it has been insignificant decline from the highs of the session so far. The s p is flirting with it slows of the session. The nasdaq, interestingly enough, is still keeping on to some of it it has declined but it is holding onto gains. Lets check first word news with Courtney Donahue courtney donohoe. Courtney turkey is blaming an islamic suez died and Islamic State suicide bomber for the explosion. 10 people were killed. Nine of them were german. 15 were wounded. Turkeys Prime Minister says the bomb lost a Islamic State. He promised to challenge the group, and it is no longer a threat. Legislation would bar kim jonguns regime, the hard needscy lawmakers say it to build weapons. A panel of experts say existing United Nations sanctions on north korea are not being enforced. President obama delivers his final state of the Union Address tonight. This one will be different from others. Instead of laying out a wish list of legislative proposals, the president is expected to focus on what he considers his administrations successes. You can watch his speech tonight live at 9 00 p. M. Eastern right here on bloomberg television. The news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. Betty an Important Message in the president s address will be whitecovering economy as house economic adviser jason furman noted. In 2015 wereers the most optimistic they have been in any year for over a decade because wages are rising the fastest they have in the recovery, the Unemployment Rate atovering at the the fastest rate. Hensarling serves as chairman of the financial services, the House Financial Services committee. Congressman, thank you for joining us today. Despite the juniors we are seeing now in the markets, particularly on the back of the decline in oil prices, the president is going to come out and run a victory lap. But the economy is there no credit the republicans can give to him for an economy that has recovered millions of jobs . As you pointng out, the white house is billing this speech as a victory lap, and it will probably be the shortest state of the union ever. It should be only a minute or two. The facts are these. Since president obama came into office, the average american is down. Their income their takehome pay is down. The average American Family has less savings. The average American Family, when it comes to health care, under obamacare, they are getting less and paying more. They are very anxious. It is one reason people continue to be pessimistic. We are engaged in the longest, slowest, tepid recovery in the postwar era. With other recoveries, the average American Family would almost have 11,000 more in income, and 12 million more people would be back to work. It is obamacare and doddfrank slowing us down. The president s policies are hurting working americans. Betty i want to get to doddfrank in a moment, but some of the democrats the democrats would say, to counteract that, we have put together proposals to help some of the poorest in the country, such as r