Gm and Global Equities movers. The stoxx 600 little changed for a third consecutive day. Down. Continuing to close in a narrow trading range for the past three months. It has been in the narrow range since 2014. Testifying before the house of lords supper and auburn bonds credit default swaps default swap. Earnings season is well underway. Shares earlier up by 9 . The maker of rayban sunglasses says sales growth will it said the light will accelerate 2017. Inting the 2016 outlook july, saying it was becoming more cautious on the second half. The Company Investing more than 1. 5 billion euros over the next three years on digital project development. Responding to demand for eyewear. Shares up by 4. 1 . One of the big gainers. The u. K. Government has given the green light to heathrow of the airport. Guy johnson joins us live. Joined by the ceo of iht. I hg. Ihg. Good afternoon. Thank you for taking the time. You have been skeptical about the project and the expansion in the past. What are the odds of this actually happening now . I welcome the fact that the government is facing up to this. I recognize there is still significant hurdles to clear, but i think there is a better chance of this going had today than there ever has been in the past. They take up every 45 seconds. This is a very busy airport. Not behind it but now you sound like you are behind it. Is this going to be the project you are going to drive forward . To put 100 in making sure they honor the commitments. I have been very clear that we believe there is an economic take for the expansion, but it cannot be done at any cost, and there is no way the cost of expanding heathrow should be passed on to airlines and customers. Deal with the cost associated with expansion. There is an aircraft coming in behind us. They are going to cap the fees. On the bill. Ce who do you think would be the ist contract to do that . Dont believe contractors either associated with the shareholders and linked to partnerships of the shareholders should be allowed to participate in the expansion. I think it is too easy for the expansion in the past with prices to go to related parties. It should be done in a costefficient matter. You dont think those with an economic interest in this airport should be allowed to take part in the restructure . I have questioned in the past the fact that so many shareholders go to the relation of the shareholders. There needs to be clear accountability. We have to be sure the best value for money is delivered, and the people that in effect from this is the u. K. Economy in general and the passengers and not the shareholders. One thing that has always been difficult to understand about your business in particular is how the shares are worth. Nevertheless, they come with a huge value. Did the value of the stock just go down . We do not have all of the stops on the balance sheet. There is an allocation process. Valued argue the certainly will go down following the decision today. I do not think you will see extremely high prices that have been associated with this. The prices will be achieved going forward. When you think about heathrow and what it will look like, they have laid out a timeframe in which they think the bill will , the commissioning of the runway behind us will actually happen. You have been part and parcel of this process throughout. It will take longer than the time frame identified. It is done in a way where the delivers a commitment. There is still a long way to go. I would argue a little bit beyond that. Government had a decision back in 2009 2 approved the expansion fee. We are still improving today. I think there is probably a greater chance of it going ahead today. A different government and different Prime Minister. Not as popular veteran to be a real leader. The u. K. In a different environment now. Is to exceed and excel, we are going to have to do things in a different way. Thank you for sharing your time with us today. Guy johnson, great to see you. Stocks advancing today. The first time in three days. Miners climbing. A lot of questions about the future of the u. K. And european economist. Joining us is the head of Asset Allocation at frankfurt which manages 20 billion in assets. Thank you for joining us today. Good afternoon. In one of ouroned stories yesterday about the longer dated bonds in the world, which we said were a powder cake ready to blow. In thee been reducing bond market. Is that right . Basically due to the inflation is picking up the pace. Base affect. A not the case to be worried too much. The problem is most Central Banks around the world seem to tolerate high inflation rates right now. They said they are looking for the inflation target. The element is pointing in a similar direction talking about. Highpressure economy the ecb seems to be more concerned with the Banking Sector and the bank of england seems to be more concerned with inflationary effects from brexit and inflationary consequences. This is bad news for inflation expectation. Ofshould be negative for longterm bond yields. Think Foreign Investors are losing their appetite postbrexit . So. Yes, i think the market is pretty attractive because the bank of england at that time was the only bank allowed to cut rates, and it was all about the pound depreciation at that point. Bond appreciation has been pretty good for equities, but you can have too much of a good thing. Bad news for inflation, bad news for bonds, and also not really good news for equities. The appetite has been cut down a little bit. You talk about a powder keg slowing. A big bubble about to burst. What makes you think Central Banks will not manage their way out of this in an orderly way by keeping bonds on the book until that is a very difficult task. Also, the reason they have been reluctant to wind down the stimulus all around us. Cautious andre raising rates. This Property Market is going to first. You have to be very cautious. They may tolerate higher inflation rate because they are picking a bubble somewhere. Where do you anticipate the 10 and 30 year yield to go . I think the Central Banks make pretty clear they are. Ooking for a steep yield curve again, the bank of japan has been the most explicit about that. They implemented the yield curve control system, which keeps it quite steep. I think the other Central Banks go in the same direction. This keeps the economy alive. I do not think there is much potential for a rally in longterm u. S. Treasury yields. Mark where does that leave stocks . Have been stuck in the 3. 5 percentage range since july. What will break us out of this range . I do not see anything taking us out of this range of the moment. It is all about relative evaluation at the moment. Euro area stocks have underperformed dramatically other markets. They have underperformed the u. K. , the u. S. Market and underperformed emerging markets. Now there is a big gap. I think there is potential for a relative value train, which is long on the euro area critique. Mark great to see you. Coming up, the new exclusive. Senior advisor to president obama. How she has been working to leave. Paid parental that is coming up next. This is bloomberg. Mark live from london. I am mark art and counting you down to the european close. From bloomberg web headquarters in new york, i am vonnie quinn. Going back to the year ahead. An exclusive interview and a very special guest. Valerie jarrett, Senior Advisor to president barack obama and has been for just short of eight years. I have made it. Almost. About really want to talk in the year ahead is the workplace. We have to go back to where we are in the workplace in the United States and what has changed. Qualityoflife at the workplace has become front and center to the american worker, and businesses recognize you need investing and the they have lives outside of work are the ones that will thrive for the future. Paid leave, paid sick days. That are issues important to men and women in the workplace. This is no longer a womans issue, a working family issue. My stuffed them in more proficient workforce. And more profitable. Going back to the beginning of your tenure. The first law was the Lilly Ledbetter ball. How much progress have you made . It has made a difference. Women were earning . 70 on the dollar. Substantially less for women of color. Now we are all the way up to 80 . Of of it was a statue limitations. Until you knew you were being discriminated against. The case of lily, she was paid unfairly for decades. This to beating data to us. So they can see for themselves whether there is equal pay. Look at the structural and retaining women in the workplace and then doing something about them. We had a panel here today on bloomberg talking about families and the Younger Generation of workers we know so well are from theirore workplace. If you want to not just attract but keep the talent, these are issues you have to tackle. Resistance from this saying there is more regulation that will stifle growth. Employers have looked at the data and have seen the results. Now you see it among the fortune 500 companies. We are seeing the return on investment. This is not intended to be regulation coming down from the white house. This is not just large employers. Many of the large employers have taken the pledge to get to know the family of the worker. To get to know whether they have a newborn baby or in the middle of a divorce. That is what enables them to be competitive. We are the only developed country in the world that does not have a federal paid leave policy. How well we encourage workers to stay when they can go across the street and work at a Global Company located somewhere else and get the incredible benefits . Were just about to have a new president. Looking back, what would you advise them . What would you have done differently or what would you have had the administration do i would say continue to work with congress as we are tried to do, and recognize the great ability to use the bully pulpit. In the first couple of beers particularly we concentrated so much nationally because they have the greatest impact. When we recognized how dysfunctional it was in congress and started working with state legislators and the private sector, by and large, we have had a huge impact. Workingo a lot of work with partners outside of washington. I would have followed that advice sooner. Valerie jarrett, Senior Advisor to president barack obama. Vonnie that is david westin. Much more coming up from the bloomberg year ahead conference. Mark mark carney is answering questions on the economic consequences of the brexit vote. He is due to make a decision by the end of the year. He said the boe does not target the exchange rate. You can watch this on the and continuee go to bring you the headlines. This is bloomberg. Vonnie live from new york, i am vonnie quinn. This is the european close. Todayshares tumbling after the lenders signaled it is starting talks with investors about raising money in a stock sale. The chief executive telling bloomberg he is looking to win support for 5. 4 billion in fresh capital by the end of the sheer. This year. The contribution of the development of the bank. Our advisors have been approached in the past few weeks onceart a formal dialogue it is approved. Mark more from the chief executive, Marco Marelli on bloomberg television. Joining us at 2 00 new york time 7 00 london time. Heading to the close. Five minutes away from the end of the tuesday session. I could do bonnie ford. Vonnies board. Against the all the u. S. Dollar. Rising today because of the commodity rally. The u. S. 10 year yield down by a couple of basis points. There is the twoyear and 10 year spread today. There is the stoxx 600. For a couple of days. The ftse a little bit higher because of the rally we are seeing and commodities. The close is four minutes away. You are watching bloomberg. Mark a beautiful london and new york. You are watching the european close. Im mark barton with vonnie quinn. Resources of 3 . Highest since july 2015. Bylthcare stocks lower europes secondbiggest drugmaker. Profit fell for a seventh quarter. Generic competition hurting sales of its block buster cancer treatment. The stoxx 600 is down. Basic resources rallying. I want to get back to syngenta. We talked about it yesterday. Gaining approval for its 43 billion takeover by kim china chem china. Syngenta stock price. The white line versus the cam hem china bid. The spread is widening somewhat. Not once has the share price and as high as the offer price. German Business Confidence rising to the highest level in more than two years. Manufacturing expanding at the fastest pace in three years. Really quickly i want to show you the euro. Falling against the dollar. Lowest since march. The median forecast for the end 1. 10. E year is weve got Standard Chartered forecasting parity. The tightest trading range during the Third Quarter ever. We have broken out of that trading range. Vonnie you mentioned some of my items earlier. The dollar index is below 99 again. Solidifying its stronghold. Today we are seeing the yen weakening. Dollar is a little bit. China is clamping down a little bit on house producers. Thats having an impact as well. We got some unemployment data out of australia as well. Analyst looking for it to go down to 65. The dow is down. 2 . The s p is down. 25 . Lets get more from abigail doolittle. Abigail we have a modest pullback for the nasdaq. Some of the big tech stocks dragging today including alphabet and facebook. 3 . On up nearly reinforcing strong trends. All of this suggests micron is setting up for a very strong december quarter. What makes this very interesting last year micron was the worst stock in the nasdaq 100. Now of more than 20 this year. Turnaround, this stock is up more than 150 this year. After yesterdays 7 gain we are looking into what could be behind us. The fact that Advanced Micro Devices received more than 30 of its revenue from microsoft so investors may see this as a continuation of the turnaround orchestrated by the ceo. We see the beautiful uptrend. More recently there are some mixed signals. This area is continued or considered to be a diamond top. Supporting that is the fact that the uptrend has started to break. The nearterm buyers are very interested in shares of amd. It will be interesting to watch how the year plays out for stock that is up 150 on the year. Vonnie lets check in with courtney donohoe. Questions about the European Unions ability to sign trade deals with the rest of the world. Belgians government says it has failed to persuade regional parliaments to go along with the proposed trade agreement between the eu and canada. They have until thursday to agree to a deal. In france more migrants are expected to join the several thousand have left a squalid shantytown. The french government is dismantling the camp known as the jungle. The migrants will be relocated elsewhere in france. Many living there had hoped to find a way to get to the u. K. A new poll shows former prime his lead in widened the race for the republican president ial nomination. He has an 11 point lead. The election is not until next year. Philippine president says he is no lapdog of the u. S. Or other country. He says he wants no more foreign troops on philippines soil. He told foreign businesses to go away. He just returned from a trip to china and is heading to japan. Im courtney donohoe. Parliament quizzing top monetary officials about brexit. Markof england Governor Carney speaking before the house of Lords Economic Affairs committee. He was asked whether he was concerned about the government preventing the boe from making additional asset purchases. To expect no reason that. The framework is there. There is not a debate in parliament about changing the framework. If the goal of the bank of england wherever adjusted through legislative means the bank of England Monetary Policy Committee would discharge that. Philip hammond says the government wouldnt stand in the way of additional asset purchases. Are we any wiser as to mr. Carneys intentions of whether or not he will stay beyond 2018 . He is certainly keeping us guessing. That this waslear a personal decision. That the job of governor requires full commitment and this decision had nothing to do with government. Own. T was entirely his it was a lot of detail to go into. He hasnt told us what to expect yet. Mark some might say he would be within his rights to leave. He has had it from both sides from the Prime Minister to the foreign secretary. He has certainly been getting an earful. Its worth pointing out that he initially agreed to be governor for five years of the traditional eightyear year term. He is absolutely within his rights. There has been quite a bit of tension. Its important to distinguish between the mutterings of the rs and thetee chancellor who has made his support clear. Was also that unfortunate comment by theresa may in her closing speech. I think this has been explained away as perhaps trying to address a broader idea of how Monetary Policy has harmed. Vonnie lets have a listen to philip hammond. Alike in the u. S. There is little bit more interaction between the treasury and the bank. The bank of england has to ask the treasury for permission if it wants to buy bonds. The operation of Monetary Policy in the u. K. Is independent of government. Monetary policy including quantity of easing have been highly effective in supporting the economy. Packages have to be formally agreed by the chancellor. Although i cannot prejudge any hypothetical request, no request for quantity of easing has ever been refused. That doesnt mean it wouldnt be refused in the future. Its independent but it has to write a letter every time so its a little bit of a different system. This is a bit of a formality. If the chancellor were to turn around and say you cant it do more acutely it would raise serious questions as to the banks independent body. He is stressing that the ofernment is not thinking questioning this independence which is what some commentators read into theresa mays comments in october. Vonnie whats next from the governor . The question on everyones mind is will he stay for a whole eight year term. I dont think anyone is looking beyond that. He said he would give an answer at the end of the year. If he goes in 2018 this would be the middle of brexit and that raises questions as to potential impact. Only he called him the adult in the room postbrexit. He had been very critical of him. What we are looking at is a situation where carney has been around. He has survived the previous administration. They know what they are dealing with. They know philip hammond, too. U. S. Foreign secretary. This is a government which people dont really know where it stands on brexit. People just dont know. With carney they know where they are. If he says he goes obviously there might be a slight reaction to that. Good to see you as we await mark carneys decision. Lots to look forward to. Still a few months to go. Vonnie coming up, the longawaited heathrow expansion clears a major hurdle, but its not a done deal. The ceo joins next. This is bloomberg. Barton withrk vonnie quinn. This is the european close on bloomberg markets. Time for the Bloomberg Business flash. A federal judge in San Francisco has approved a full wagons settlement in the diesel and emissions scandal. Thats likely to be the biggest portion of the civil liability worldwide. They can start buying back cars in the u. S. Thats expected to start next month. Wills Monte Paschi Bank close 500 branches. It will also sell units and bad debt. It says it has already received a head of half 1 million. Profits fell for the seventh straight quarter for europes secondbiggest drugmaker. Earnings were down 3 but still beat estimates. Latest Bloomberg Business flash. Coming up, the longawaited heathrow expansion clears a major hurdle. Is it a done deal . The airports chief executive joins us next. Plus battle of the charts. We will go deep into the u. K. Economy taking a look at the trade imbalance. This is bloomberg. Mark back to the story weve been covering all day. Givenvernment here has the greenlight light to expansion of Londons Heathrow airport. The goal is to be open by 2025. Joining us now is the ceo of heathrow airport. Thank you for joining us. My pleasure. Mark how much of a boost is this postbrexit . What sort of boost is this . Heathrow expansion was vital before but it is even more necessary postbrexit. We have been working to deliver the benefits as quickly as possible. That includes getting more flights at off our existing runways and connecting to more emerging markets. Britainen bennett can benefit as much as possible. Mark when our shovels going to be at the ready . Its one step closer to the end game what do we still face further hurdles . That heathrownt is going to be built because the Prime Minister has said she wants to see it happen. Huged that there is a cross Party Support in britain from all the u. K. Nations and regions and all Political Parties wanting to see a third runway being built. Also support from businesses large and small across the country and local people. There is a consensus developing to develop deliver the benefits as soon as possible. Mark when is it going to be ready . To 2021,anning in 2020 shovels will go in the ground for the first flights off the new runway in 2025. The National Policy statement has been very successful at making sure everyone has a chance to have their say on the plan. The success rate for this process is north of 95 . We are confident as part of this process we will get to the expanded heathrow that britain needs in 2025. Plans havefunding not had the seal of approval from british airways. Should you get ba on your side or iag . Funded entirely by our shareholders. On all the risk. We have already shown how we can improve our plans so there is no increase in passenger charges. We will keep working with the airlines to meet the governments target. Prize for passengers is more competition and choice. That is what will really benefit all of us to make sure we have the best possible value for money. That will get other International Airlines expanding. So that we have more competition and choice at the uks hub airport. Spoke to the ryanair ceo. He says this would allow he drove to waste over 18 billion pounds on a third runway, and excessive monopoly cost that will be paid for in higher airfares for years to come. Will this lead to higher airfares for the consumer . Deliver this with no increase in passenger charges. We will continue to work with the airlines to deliver this. A huge benefit to all people who use the airport. The real competition we have is with the u. K. Germany and france and the gulf states from who is going to be the economic leader. Britain can be the winner with one new runway at heathrow. We are falling behind relative to the french and the gulf states. We can make britain the best connected country in the world and we are determined to make that happen as quickly as possible. Mark thanks for joining us on this historic day. Hollandkaye. Time for botc, battle of the charts. We take a look at the most telling charts of the day. Kicking things off is bloomberg editor at large, cory johnson. Cory this is a scattergram. I found great value in the bloomberg terminal. This is showing us momentum and context. Sideshows on the left stocks that are down for the day. On the right side stocks that are up for the day. The size represents market cap. This bank has been tanking all year. This shows the date and the year. Stocks in the higher quadrant have been up for the year. Stocks in the lower quadrant down for the year. Momentum stocks all the way in the corner has been racing all year. Stocks over here at the bottom have been sinking all year. Thats how the chart shows momentum. You cant ignore the noise of the day with the context of the year. At that. K hes throwing down the gauntlet. First of all, its a function and not a chart. Cory this is a lot of work. It took me days. Mark i will be the arbiter of whether this is a chart or not. Vonnie heres my chart. Its 1815. We are talking about u. K. Trademark. The United States buys a lot from the u. K. The u. K. Obviously wants to replicate that with a lot of countries. The u. K. Buys a lot from the eu. Eu thehe u. K. Needs the obviously the eu obviously needs the u. K. As well. That is the story of brexit vonnie . Mark mr. Scattergram takes it today for bringing something new to botc. We have never had a scattergram. Well done cory johnson. I do love vonnies chart. Take a look at where European Equity markets finished the tuesday session. This is bloomberg. Noon in new york. Im vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york we are covering stories from new york, london and beijing. We are live from bloombergs the year ahead summit where Business Leaders convened to discuss the key issues for 2017. Our Bloomberg Businessweek editor is speaking with the ceo of tiaa. You aboutl tell clintons secret weapon in florida. We are just two weeks away from the president ial election. Are swapping corvettes for comfort as sports car sales fall. Julie hyman joins us with the latest. Julie we are seeing more of a pullback. We got