At an alltime high. The company has lost more than 40 of its value since christmas. Commodities come back. Run materials are said to snap a fiveyear losing streak but can the rally be sustained in 2017 . This is the european open. Were half an hour away from the european open. The second to last trading day of the year. A weaker session in hand when we get there. Asian session was positive and only mildly so and there was a negative story coming out of tokyo. Perhaps that is captivating investors minds in europe. 8 of anese currency up percent against the u. S. Dollar. We get a glimpse of some of those moves, the nikkei down by 1. 3 . Following weakness in the u. S. As well where we saw the s p under pressure, down by. 8 of a percent. 2. 3 . The dow falling yesterday as well by more than 100 points further away from that 20,000 mark. U. S. Futures looking sluggish fairly flat, i should say. The japanese yen is on the move as well. Of ahe end up by. 8 percent. Looking some nervousness creeping in as we head toward the end of the year. Word news. He first u. S. Israel he have reached another low after john kerry and Prime MinisterBenjamin Netanyahu traded them over the stalled middle east process. John kerry said his policies were running a solution to the israeli conflict increasingly out of race reach. Coalition is the most right wing in israeli history with an agenda driven by the most extreme members. Is reallys do not need to be lectured about the importance of peace by foreign leaders. Israels hand has been extended and peace to its neighbors from day one. From its very first day. We pray for peace. We work for it every day since then. Has plunged the most on record falling as much as 26 , the most since 1974 after the companys Credit Ratings were cut following an announcement it may write down billions of dollars of an acquisition made by the u. S. Unit westinghouse electric. The firm lost more than 40 of its value this week. Italys finance minister has described the supervision of the bank as opaque. The boxing day letter to the troubled lender. In addition to a letter, some explanation would have been useful. The ecb said in the note that it needs a. 8 billion euros to bolster its Balance Sheet. Britains chief Financial Officers are turning optimistic but they are cautious. That is according to a report. It found the number of cfos are more positive about the prospects for the company outweighs those who are more optimistic by the most in 18 months but with two years of brexit negotiations said to begin in the new year, visitors are looking businesses are looking to stay flexible. Bank of japan has released comments and opinions fm its most recent policy meeting relating to the the session before christmas with one unidentified member admitting the inflation target of 2 remains a long way off. Another opinion says japan is at a critical juncture to achieve its goals but one mom member is more optimistic seeing a rise in consumption is evident. The Actress Debbie Reynolds has died at the age of 84 when day after her daughter, carrie fisher. Her son said the stress of his sisters death proved too much for his mother who was reported to have suffered a stroke. She started along side gene kelly and singing in the rain and was nominated for an oscar in the and single molly brown. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Has foundck obama deadd trump after the after he accused obama of hobbling the new administration. Beadded he thought it would a fair transition. He was enraged by obamas direction that the u. S. Abstained from a unit a Un Security Council vote declaring israeli settlements as a legal. Following the calls from said they had had a very nice conversation. As president elect trump has taken an unusually activist role with interventions into Business Decisions and Foreign Policy he isust 23 days until inaugurated. What can we expect under his administration . We are glued to the latest tweets from donald trump as well as they give us any firm policy clues. What were waiting for what is your case . This toared reaganomics. There are big differences in your mind. That it iske to feel a basket of the nobles. Unknowables. Said, youhat he has will see a major impact event. If you see the Market Correction i believe the market could correct in the first quarter. You look at you points he mentioned. I think he can make america better. But great is a strong word. A lot of moneyst and strength. It is not a matter of [indiscernible] when you look at the reaganomics days when president reagan increase the increased the debt to gdp by 30 . That number is ray different now. Even and even bigger factor is the demographics. The working age population was 2 . Now it is. 5. By 4 . If President Trump influences policy about removing outside immigrants, workers from the isnomy i do not think he going to followup on this policy. There was a lot of rhetoric and his election time. His intentions are strong. Andill keep the u. S. Equity a better market to be in. A lot of what he has said cannot be done. We see some weakness coming into the dollar. Were down by maybe half a percent. And. 4 on the bloomberg dollar index. The strong dollar has been one of the themes towards the end of 2016. I have this chart here, very patriotic number, 1776. Important in u. S. History. The dollar index game gained 23 of 26 trading days. You suggest there will be some further Dollar Strength to come but is the market over doing the king dollar bet . The u. S. Is ahead of the cycle. 2015 aar in december said they were going to raise rates and i found it incredible. They eventually got one as we know. Are there might be for for rises. I think that will help the Dollar Strength. We have had three big dollar. Ycles thefirst one was from reagan administration. The japanese yen was forced to strengthen against the will of the economy. The second was in the latter part of the clinton era. When you had the. Com, the technology revolution. This third one, what is going to stop the tide. The only thing i can think can stop this dollar rally if they are forced to raise rates are you anna we might see the fed talking about this stronger dollar. Thank you very much. Coming up. Ftsi gets a record high, cfos are more optimistic. And from materials digging their way out of trouble. They are said to cap there first annual rise since 2010. Will the comeback continue . Materials digging their way out ofit has been a tough yr europes banks. How difficult will it be to fix their Balance Sheet . Plenty more. The open is just around 20 minutes away. Anna welcome back. This is the bloomberg market european open. Lets get the Bloomberg Business flash. Donald trumpelect is seeking to take credit for sprint to bring back 5000 jobs to the u. S. Amongsaid there were those who add workers. They said they intended to invest 50 billion in the u. S. Using a previously announced technology fund. We have a combination of sprint for 5000 jobs and that is coming from all over the world and they are coming back into the United States which is a nice change. And also one way this is a new company. He is a turf it guy. Shares roser overnight after the wall street journal reported the company is nearing a settlement with the u. S. Department of justice to resolve allegations of criminal wrongdoing related to faulty airbags. The newspaper citing people familiar said such an agreement may include being guilty to criminal misconduct and penalties as much as 1 billion. To cut a said the nothing has been decided. The doj declined to comment. And a legal fight to expand reserves. Venture found gas in the North Highlands although the size of the deposit has not been determined. Exxon offered to file to buy intraoil. They have gone to court to block the purchase arguing the price is too low. Yum brands is planning to three franchise it kfc business in turkey is part of a global shift away from owning its own outlets. It said in october it will increase its franchise restaurant ownership from 77 to at least 98 globally by the fiscal year ending 2018. That is your Bloomberg Business flash. Anna thank you. Britains stock market closed at an alltime record high. First day since the of trading after the brexit vote in june. A new report out this morning shows britains chief Financial Officer officers are optimistic. Need to behey cautious. The study found the number of cfos that are positive about the prospects whether the companies outweigh those who are pessimistic by the most in 18 months. There is two years of brexit negotiation set to begin in the year new year. Businesses are looking to stay flexible and that rebounded confidence comes from lower levels. Our guest is still with us. Lets talk about the u. K. , we higher. Ts are heading towards the triggering of teen 50. Shock andas a bigger we have been playing through it and we have seen the sentiment going to be positive. Be why did see could this happen . Theas in response to question of controlling the Free Movement of people and you said no. They suddenlyt decided one day i will pack my bag and leave the eu. It has not been driven by some kind of other motive. Youre still doing the same thing. I have been part of the discussions with some Business Leaders and political people as well. What i gathered from the leader eu and u. K. Have to understand it is in their interest to find a solution which is pragmatic which keeps things going. You talk about the demographics problem. Pragmaticd that outcome looks like from a british perspective might depend on who the leaders are in various parts of europe come 2017. Guest absolutely. I do not see a lot happening in terms of negotiations until the election is over. And markets, you have seen with trump elections. Everyone thinks the market is going to crash but the market kept rallying. Surprised that the market will carry on. You see this happening in the latter half of the year. This has not been much of a reflection of the u. K. Economy. You talkpoint in time, about when this starts, is there a point in time when, depending on how far out of of the you we end up, how hard brexit into being, is there a point in time when that is reached and investors say i will not invest in the u. K. Corporate because it doesnt have the potential it did before. Guest two the bigger thing is if the u. K. Is able to get a good deal with the u. S. And we have seen signs of that. Technicalities. Who benefits from this. , i thee an allout war chat think the chances of that happening are very low. Anna thank you. Stay with bloomberg since we moretalking conversations around the u. K. And brexit. We are minutes away from the start of European Equity trading. We take a look at the movement in trading. T and a we are minutes away from the start of the European Equity trading day. Six minutes away. We are expecting to see a weaker start to european trade. Lets look at some of the stocks that could be on the news move. Itsfrance cells 49. 99 of survey units to gates group. The value is 475 Million Euros according to a statement coming through from the French Airline this morning. The german engineering business saying they struck a Labor Agreement for all its plants in the United States. They are reporting this agreement between siemens and the labor union. Include thets rights of employees to form Work Councils and an establishment of a committee that includes labor union representation. Were focusing in on the Banking Sector in spain. One of the banks in spain is it has agreed to sell 20 of its hotels to apollo. It will sell for 700 Million Euros. Million euros in debt linked to the hotel. It sought to sell 32 hotels but now looks as if it is selling 20. Let lets look at t ee futurs as we head toward the start of European Equity trade. The asian equity session has been fairly flat. Around up by. 8 . So that is the handover we are dealing with into the European Equity market. The yen considered to be stronger this morning. This is bloomberg. Good morning and welcome to Bloomberg Markets european edwards andanna bloombergs European Headquarters in london. Moments away from the start of the european trading day. Obama callednt donald trump after the republican complaints about roadblocks in the transition process. Gold advances and the yen strengthened against the dollar creep inor jitters ahead of the inauguration. Uncertainty is the new normal. In 18sm at its strongest months. Caution remains the key word. That as the ftse 100 closes at a alltime high. The crisis continues for toshiba as its Credit Rating is cut. The company has lost more than 40 of its value since christmas. Commodities come back. Raw materials set to snap a fiveyear losing streak, but can the rally be sustained in 2017 . European markets opening up than for the second to last trading day of 2016. We were expecting to see some weakness at the start of the European Equity trading day and having a look at where we are in the ftse 100, we are dropping down from the levels we achieved yesterday. The ftse 100 closing at alltime high levels yesterday. A little bit of change. Since prebrexit vote. Mining stocks, a big driver behind the move yesterday. Today, a slightly different story, down. 3 as you could see in the early part of the trading day. Let us cross over to Sebastian Salek with all the details of what is on the move this morning. Slightly lower at the open, taking us away from a raising of the losses on the stoxx 600. Will we get there . And analysts we surveyed say no, but we started we will end the year at 366. Let us take a look at our sector groups. Here we are. Dragged down by the financials by. 5 . The Telecom Companies down by. 8 . These are your gilts, have a 1. 3 onint, and sat at those. A couple of assets to watch here. Looking at the ftse because that hit a new record high, part of what we are seeing with stocks advancing towards the end of the year. They are higher by the minors. Indeed, you can see the commodities racing higher. Higher byr zinc 1. 5 , the bestperforming metal this year. 2009. Ince on that note, let me talk you through some of the stocks we are watching today. First up, air france, selling 39. 99 of surveyor. The wall of that is 475 Million Euros. It is also ended a dispute with unions. France says it is seeking a productivity gain over five years. Asking for cfo union 25 to 30, according to afc. Nxess ag looking for a deal that will more than double the size of its at his business. Still pending in china and the pco, the atlas co sale could take place in the first quarter. Stop lower. Thank you very much, Sebastian Salek. A fairly quiet day, as you can imagine. Let us talk about japan because the bank of japan has released a summary of opinions from its most recent meeting. And kepted its outlook policy unchanged. On member said it is a long way to meet the 2 inflation target, another step that u. S. Growth may accelerate under the trump administration. For more on henry hoenig joins us now from tokyo. Good to see you on the program. This was the last year meeting of the year, so what can we from this summary. Overall, what was the message . Henry hi, anna. At the end of a difficult year for the bank of japan, it is sure to say that most of the Board Members can be described as pretty up beat, going forward. Most of them noted improving conditions such as a pickup in exports and the yen is quite a bit weaker. They noted improving strengthen the global economy, so heading into 2017, they have reason to be optimistic, even as the inflation gauge remains in negative territory. Were any changes to policy flagged . We see the way this report comes out, you said one member thinks this, one thinks that. Were any suggesting they could get closer to change in policy, henry . Henry no, there were knows ingestion the policy changes to come. Just a couple of months ago, the witheworked its framework sustainability in mind, and a majority of economists surveyed by bloomberg predict no further easing until at least the end of governor kurodas term, which runs through march 2018. Henry, thank you. Henry hoenig joining us. Sh, he had an interesting line. He was pointing out something some people might have missed, and suggests there was a big pivot in policy. The amount of money being spent by the boj towards the yield targeting policy. Has stepped away from the a little bit and has to stick to their annual pace of increasing jgb holdings 18 trillion yen annually. Where do you see the boj heading in 2017 . Manish they will continue on the 10 year. They will continue that. What we are not seeing, we are not seeing a pickup in inflation. It about to come to an end. Aims going to make it his to achieve the 2 target. We saw some acceleration, but it is gone. My point is that unless you see the inflation, you see the numbers coming through, bank of japan cannot back off and say they are not going to target yield. A weekend and researching commodities complex help the boj in its course . Manish if you look at, we have seen another round of this fiscal stimulus in china. That helps japan. If there is going to be a global exposition of growth, that helps japan. If you look at the nikkei equity index, that has a very strong correlation dollar jp buying. Clearly, repatriation of dollar earnings that to japan is going to make the Japanese Equities look better, but economies are completely different story. Of are m