A deal rather than risk trial. China and hong kong in about 30 minutes from now but singapore is coming online. That is one of the reasons why we are seeing a lot of these long positions. People are squaring their positions ahead of the long holiday. A lot of these markets will be partially shut next week or will have shortened trading sessions. For the most part, we will be getting monday and tuesday off. Some markets are coming back. Japan is over here and south korea is over there. In other words, it it will be very difficult to hold a position ahead of these long holidays. You cannot react depending on where your positions are. With that said, look at the markets opening right now. Beenngapore, the index has down 0. 5 percent for the fifth straight day of losses. New zealand, a shortened trading session. It has been shut for about 45 minutes. We are looking at ending the prechristmas session on a high. It will trade will be on wednesday. Two other markets will be following later on. China will open in about 30 minutes. And watching hong kong philippines. Hong kong entered a technical correction yesterday. China may be looking to increase supervision. Things including rate position, and inflation forecast being raised. It could enter a their market today. Falls 1. 5 percent today it will enter a bear market worst week for stocks in the philippines. It cements the worst week so far this year in 2016. A 5 decline if it falls a further 1. 5 . Those are the two markets i am watching to open at the top of the hour. Rishaad thank you. , and theminutes government in italy just of the decree giving over 20 billion in state aid to the countrys state banks. It willi paschi says take assistance after failing to obtain a private bailout. Rome, we are taking you to the story. Like christmasit night a president for monte dei paschi. A gift for monte dei paschi. News came at once. We had the auntie bresky Board Meeting and then a Cabinet Meeting approving we had the monte dei paschi Board Meeting and then a Cabinet Meeting approving the degree. Were able to seek to request to increase their liquidity. It is not only monte dei paschi. Monte dei paschi has been struggling to find investors to bail it out. That is not a good sign at all, is it . Definitely not. Wayss been tried in all find investors. It has been seeking investors for several weeks. That it was not able to meet the 5 billion Capital Increase it was seeking and it was needed under the European Union request. Political situation in his late with the referendum, earlier this month, and the resignation of the Prime Minister did not help monte dei paschi because International Investors saw it as another sign of stress for the country. Rishaad there has been so much tumult. Political to the reluctance of the investors to invest in the banks, has it not . Of course, that is the point. Was not the last point of transfer for investors which had already been running away from the italian Banking System for a while. Monte dei paschi is the biggest case, the biggest name, the third biggest lender in the country. But of course, it is not the only bank that needs help. There are several other names that come to mind. Especially the bank in venice. But monte dei paschi is the biggest case but the italian Banking System is suffering. Very muchhank you indeed. Joining us from rome. Getting some first word news headlines. Donald trump lighting the fuse. Saying the u. S. Should greatly expand his its nuclear its nuclear arsenal. Just hours after Vladimir Putin reiterated his call for russia to reinforce its own forces. Donald trump wants to strengthen the u. S. Military while keeping costs under control. The u. S. Justice department is suing barclays. The lawsuit is rare for big banks. They typically negotiate a settlement rather than risk a trial. The Justice Department alleges that the bank repeatedly deceived investors about the quality of loans. Theeley shares are down in states, 1. 8 . The most detailed budget in history showing it is succeeding in reducing the deficit and the country is weaning itself off of oil. It has cut spending by 16 percent narrowing the shortfall by more than anticipated. Expects revenue to increase in 2017. President Vladimir Putin has postponed his annual News Conference so he can attend russias murdered ambassador to turkey. The event has been put back 24 hours to allow the russian president to pay his respects. The Russian Ambassador was gunned down while opening an art exhibit in ingres in ankara. Australias betting drama has turned another page with the rejection of a bid from a consortium. The offer is not superior to an earlier agreement. From singapore with what else tatts had to say. Kkr made ans the offer but it was inadequate. Assumptions that were either incorrect, inconsiderate inconsistent. Page wasthat the overly optimistic. So it is a no go. Theontinues to believe that proposal for the merger is in the best interest of the company. It is a unanimous decision by all of the shareholders. Tatts in to purchase the past and the merger would alian bettingaustr company. It would then be able to take on online rivals. It would give australians easy access to making bets. Rishaad the biggest obstacle to the deal would be the australian regulator. What are people saying about that at the moment . Prevented theion companys from getting together fromevented the Companies Getting together 10 years ago. Merger had its way paved for it by the regulator. The eventual buyer would gain a business that generated record earnings in its most recent fiscal year. It operates in almost every australian state. It makes it very attractive. Will thethe dollars dominance continue to dominate . Look at gold as well. A year to forget but some say it is a solid take for 2017. Singapore, 27 degrees celsius at the moment. 12 minutes into the trading day over there. With what is going on it regionally speaking. Let us look at what else is going on. Asx falling by about the same as singapore. The kospi is pretty much flat. And turkey is looking unchanged. A quick check of the latest business flash. Planes, a deal for that at list price although i run iran does not expect to pay more. 46 shorthaul planes delivery due to begin early next year. After it came a year was first announced. Buy a household paint supply company. Financial details will be released later that the nikkei news says the deal could be worth about 600 billion. To purchase an australian painting company. Mcdonalds may be selling its outlets in hong kong and china. Looking to sell them to a state owned citigroup. Announcements good, as early as the new year indicating the company is also considering selling it shouldnt of its shares. Equities at the moment on the black on the back foot. Then thin trading. Rick joins us now from sydney. What is going on . Well, it has been a really interesting week in the australian markets. We are a little bit tough this morning but we have been and out performer. The index is up about 30 points. It has been quite interesting. Probably the key driver of this interest in the defensive sectors here. Ongoing support this week for real estate stocks, utilities, consumer staples, those kinds of things. Possibly coincident with the fact that we have seen a bit of a peak at least in the short term in bond yields. A bit of a bottom in a selloff. People thinking there may be a correction. Rishaad where do we go from here . We have seen this rally since november the eighth. Have we gone too far with it . And if so, what do you do about it . Well, i guess i would put it this way. I think we have gone far enough now to make the market very anderable to a correction that includes stocks, u. S. Dollar, bonds. We have run out well ahead of any actual improvements in the u. S. Economy or in inflation at this stage. For example, on personal income and spending in the u. S. Was illustrative of the markets. Painting an overall picture of moderate spending growth. That kind of thing will make the fed cautious. If we see more of that. Pullwill pill that will the u. S. Dollar back. I think gold is a good contrarian investment at the trading pointdium of view. Not a longterm point of view. Are therefore a correction and gold will benefit from that. And also, you might get a little bit of a turbocharge in those circumstances. And coin buyers get more interested when prices fall. As soon as it starts to rise, follows. The hood that is what we saw at the beginning of this year. It could be a real chance in 2017. Gold thating at would fit in well with your narrative of there being a bit of a dollar depreciation taken place. But let us look elsewhere in the commodities. Oil is trading between 5255 a barrel right now. Does that remain in place . How much of that will be contingent on opec keeping to its word on quotas . Certainly, to keep oil around here, i do think opec will have to keep to its word. And the safe assumption is that they will. I have a couple of reasons to say that. In the early stages of these agreements history shows that they will heed to it but if you look at the parties to this havement, the gulf states a good record of compliance at least until the whole thing falls apart. And then most of the other parties to this are all small players. Libya and nigeria have been excluded. Have got to be allowed to increase their production. Given a limit that is higher than current production levels so they can continue to ramp back up towards its capacity. As a majoreaves iraq , who has todger make a significant cut and they said last night that they would be a hearing adhering to the agreement. Are of the other players small. It would be politically unfortunate if they fudged but it will not make much difference to the overall supply scenario. And i also think russia has been one of the key architects of this agreement. Participating in putting this together so i think they will comply as well. I think we will see Production Cut next year that will put a race in oil. If we get corrections which we year down intow the high 40s, that would make a buying opportunity to me. Rishaad with this talk of the building more nuclear weapons, donald trump wanting to do that and the rhetoric coming out of moscow, how big a part will in tensions between the u. S. And russia and the u. S. And china will that be the big story in 2017, in your view . It certainly has the potential to be. Are very difficult for markets to price. The tendency, particularly in recent years is to ignore the atmospherics and the rhetoric and just wait until you see actual situations developing. The way things look at the moment, we could actually see some sort of escalation in tensions developing and that market. Ve an impact on we got a little bit of a taste of that week or so ago when china confiscated the drone. Rishaad absolutely. And we have Political Risk in the german and French Elections on the way also. Question will be canned this equity rally continue and for how long . It is always a matter of assessing the probabilities. Would bey own view that i am nervous about it now and that is basically just that nervousness is informed by valuations. We have seen quite a significant pe expansion especially in u. S. Markets which will mean that we will have to see earnings expand to fill that bill. And if anything goes wrong, any sort of setback in terms of that news, i think we will see a correction. Rishaad have a fantastic and merry christmas. Up next, barclays opting to go to court rather than cut a deal with the Justice Department over Mortgage Securities in the lead up to its financial crisis. Rishaad let us have a look at what is going on with the bank of america. They do not expect Donald Trumps election to jolt the economy. Expande seeking funds to the stocks by one third since the election. Ryan moynahan spoke exclusively to bloomberg. Let does be first about our team. We have the number one Research Team in the world. An increase from what they thought this year would be. An increase. In the low threes which would be a step up. Their fundamental belief that has not changed a lot since the election. We believe the economy in the us will grow and in the world will grow. And it is more on the upswing. It picked up and selloff this year and we think it is back up your part of the uncertainty has been hampered by the markets and by people predicting outcomes. Theh is interesting between brexit, the italian referendum and the French Election and the u. S. Election. All of that stuff that just happens. They said there would be a huge disruption. Disrupted for just a few markets. There is tremendous momentum behind this. With the donald trump election, businesses are more active. They are talking harder. You are seeing that go on. And the oil and gas business rate cuts are coming up and that is good for capital expenses. Our clients and we talked to them about Regulatory Burden is that it will come down and that will help them do things more quickly. Of that ise that all good. There are other serious concerns. Labor is trickier than people think. Getting the right labor to the right place at the right time is tricky. The right jobs is the issue rather than in the macro sense, the wage pressure. The sole difference that happened the big difference in the last six weeks is enthusiasm. If that falls through, it will be interesting. Rishaad quickly. Deutsche bank. Billioned to pay 3. 1 civil penalty with the department of justice in the united states. Next, we go to the Hong Kong Engineering Company and what it has been up to. Rishaad just looking at the breaking news. Deutsche bank paying 3. 1 billion a fine they will be paying. A civil penalty to the department of justice. And providing or . 1 billion in consumer relief in the u. S. In the form of loan accommodations. Homeowners and borrowers. We will have more on this. We need to see at there is anything else that has come through on the bloomberg. The settlement is in principle in the form of loan modifications. Pretax charges at about 1. 1 billion in the fourth quarter. A different is making these headlines. Ghai and composite unusual whats seem we have seen from italy. Europe will open up. Asia is not having the best time. Pointing to a Third Straight weekly decline with the exception of japan which just closed today. Apart from japan, to a lesser extent australia and new zealand. It is solidifying the downtrend we are seeing in the emerging markets. Hong kong, is going through a technical correction as of yesterday. I will get you an update on how they are doing. News that china may be looking to tighten its grip or regulation when it comes to the brokerages there. Shanghai composite down 0. 1 . Three trading debuts today. Let us look at how they are doing. I think they are all up. There we go. 44, and 44 . , it is worth checking those out. Since augustipo has done that. Look at how let us asia is breaking down. Retailers in the mining stocks leading declines. Hong kong, and the broader reach. See if there is any impact or reaction in the markets from the news after the markets closed. Are on much in fact they the way out. Have a look at some of these names. We will talk more about this story later on. The other thing i want to mention is when you look at the philippines, it might enter a bear market today. Based on what we are seeing so far, 0. 6 . Not quite crossing the threshold. But have a look at some of these gaming stocks. One group we are following. The president , 30 minutes before the markets closed yesterday came out and said all Online Gaming companies should be pulled in. These three stocks sold 25 . That is one group to watch. Broadly speaking, when you look at the philippine composite, down zero point 4 . If it falls 1. 5 , it enters a bear market right before christmas weekend. It is the most expensive market in the asiapacific minus japan when you look at it from a forward price earning. Rishaad thank you. Let us get to the first word news. Lockheed martin shares down in extended trading after another tweet from donald trump. This one said tremendous costs and overruns of the Lockheed Martin f35s. I have asked boeing to price out a comparable hornets. The cost of the new version of the air force one could come down after a similar tweet criticizing its price. Twitter fell after finding a bug on android devices. Is shaking confidence in how Digital Advertising is measured. Sources say the bug caused it to be overstated by as much as 35 . Th koreas constitutional into the legality of the impeachment of the president. The court will hear allegations that she colluded with a confidant, stole money and favors from companies allowing. Deutsche bank has agreed to 3. 1 billion fine in the u. S. And will pay it in the form of a civil penalty. Ofis linked to the sale mortgages at leading up to the crisis. Global news, each day every day. Let us tell you about what has been a year chinese brokerages seem to be not in a great place. Hashong kong shenzhen link had a lackluster start up and investors are pushing firms. What is going on . Lackluster is an understatement. Yuane first day, 3 billion. 50,000 u. S. , dollars of the quote that was used up. Rishaad that is it. Southbound any better . No, equallyal back. This was supposed to be a big brokeragesinese which are the enablers of this kind of trade. Since that has not happened, that is not great news for the brokerages. Shanghai also had a dismal start. What do they say about the future . Do you believe in chinese stocks . Down to. Hat it comes that kind of trading has not been great. Purchasing chinese stocks has not been great. There has been one and there are more coming because of the peg to the dollar. Rishaad there is a problem there. Chinese brokerages have another problem which is bond exposure. We know where the bond market is going right now in china. Rishaad surging, no yields. Chinese brokerages have about 40 60 of their books in bonds. That is what they disclosed. Recently, we saw a Small Chinese brokerage say they had some kind brokerage thata