With treasury selling off and trumpflation. Perhaps moretion, signs of green ahead. Less than 0. 25 if you k at the euro stocks 50 stoxx 50. Such phenomenal technical signals. Function on your bloomberg. Dropdown, look below the settings line and you can see the option of going to since donald trump elected. Look at the flashing boxes and what they are signaling. Huge outside moves. Some real standout stories on gmm. Umana on the the mexican market down 6. 7 . Look at what has been happening with the yen. An amazing move down by nearly 4 . The dollar rallying. Look at the rial. The bond market a real center of attention. Based the burke curve. The bond market telling off big time. Copper what a week. Rest in 30 years. Up since donald trump has been elected up nearly 10 . Rateg at an extraordinary as he talks about making America Great again by driving infrastructure. An amazing story. It is encapsulated beautifully there. On us get you caught up everything you need to know. Here is the Bloomberg Business news. Tte demonstrations against Donald Trumps of victory continue across the u. S. We are all immigrants. We are all immigrants. Juliette hundreds of protesters gathered outside of trump tower on fifth tower chanting angry slogans and waving banners that read not my president. Former new york mayor rudy rudy has called the protesters a bunch of cry babies. Donald trump has told his british counterpart that he wants to rekindle the kind of relationship shared by Ronald Reagan and. A very the u. K. Is special place for me and my country. It would be the greatest possible honor to host her in washington as soon as possible. Alibaba is on track to smash its singles day record. Alibaba enlisted top celebrities, including David Beckham and kobe bryant to promote the date which dwarfed black friday and cyber monday in the u. S. Leonard cohen, the hugely influential canadian singersongwriter, has died at age eight 82. At age 82. He says he got into music because he could not make a living as a poet. The canadian Prime Minister has tweeted that no one else has felt or sounded like Leonard Cohen and his work right registered across generations. Global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. This is bloomberg. , juliet. K you president obama met with his successor yesterday at the white house. The meeting came just days after obama warned donald trump warned voters that donald trump was dangerously erratic. Donald trump tweeted his appraisal of the meeting. D. C. A fantastic day in met with president obama for the first time. Great chemistry. Meanwhile, in europe, details about what a donald Trump Presidency will look like continues to worry leaders and policymakers across the globe. We hear from bundesbanks president. Not only the sentiment and current behind the brexit boat but more recently the results of the president ial election raised the question of how much reductionism and isolationism will determine the future political agenda. Caroline let us get the take from europe on president donald trump. We are joined on the phone by the eu trade minister. Thank you for joining us. How worried are you about the unraveling of trade deals between europe and the u. S. Since Donald Trumps of election . Is absolutely essential that the eu has good relations with the u. S. , whom ever is the president. The message has to be continued. But i am worried that the new sosident is speaking negatively about free trade. That could be a problem. Dead . S ttic i do not think it will be dead but there will be ongoing negotiations for years to come. We have to say that it is put on hold. Us some minister, give information about ttp and nafta. Are these deals going to be unwound . See because donald trump has said in the election that he would not go forward with the ratification of tpp and he will try to get a new deal from nafta. He has not spoken to much of ttic but he has been more or less antitrade in his rhetoric. These will be hard years for trade. I think this will be negative also for the u. S. Because i think the u. S. Is benefiting from trade. Take for example sweden where we have 130,000 jobs in sweden which are actually depending on the exports to the United States but in the u. S. , 300,000 jobs are because of the exports from sweden. Guy a relationship. And you think about what happens next, was the brexit vote against globalization, was the vote for donald trump a vote for globalization . Becauseme extent it was so many people feel frustration of globalization, of the widening gaps between people, of and it isf any income not possible to say well, we are going to do something against globalization. What you can do is to stop trade agreements. So it feels like you are doing something if you say no to trade. I think you need structural changes in the countries to be Going Forward. Jobs. Nnot save old you have to go forward and whate but what has is not happening so far in the u. S. Is they have not taken care of the losers of globalization and free trade. They have to take themselves individually. You have to have a system where you have reeducation, a welfare system so that it is good for many and not paid for by the few. Caroline it is arguable that does just that not just the u. S. Is guilty of that. Can the eu Work Together, can europe Work Together to see positive impact on their economies postbrexit and the u. S. Which is the biggest risk to the eu growth . Brexit or donald trump coming to the presidency . The influencet is of both brexit and donald trump. They could both be influential when it comes to the Economic Forecast but at the same time, we have to find ways to work. The United States and the eu are the worlds biggest trading areas. We have to find a reasonable way to work even if many of the values are not the same. And it has been easier to work with president obama but to find a way to work with donald trump is essential. My government will try to do that. When it comes to brexit, donald yesterday that he wants a special relationship with the u. K. But the fact is, as long as the u. K. Is a member of the eu, they cannot have ,rade deals individually bilaterally with other countries. It has to wait until they have actually left the eu. That could be several years. Guy do you seriously think the u. K. Will not be negotiating a u. S. Until it leaves the eu . It would be surprising if this relationship did not produce a trade arrangement. That would make brexit a more difficult situation for continental europe. The member countries have delegated to the eu. Tore is no possibility negotiate a trade deal. Of course, you cannot say anything about discussions going on but formal negotiation cannot happen. That would be against the eu relations. Eu regulations. Caroline thank you very much indeed for your time. Coming up on the show, Donald Trumps wall street policies is it the end of doddfrank . We will discuss his pledge to dismantle the reform. We will be talking trade again. Welill ttic be put at risk . Program, shopping frenzy gets underway as china enters an able market. Stay with us. Plenty more to come. This is bloomberg. Guy caroline welcome back to the european open. Let us get you uptodate with the Bloomberg Business flash. Here is juliette saly. Juliet a lance has said thirdquarter profit rose i more than one third beating estimates. The company confirmed a target for fullyear operating profit at 10 billion euros. Pimco had its first quarterly inflows in more than three years with clients adding euros. It was helped by higher earnings in its insurance unit. Rejected an approach from a belgian rival. The offer does not rise and officially good enough deal for its shareholders. They ended earlier merger talks in may. Seesan sachs ceo said he few terrific assets to donald trump asking dimon to serve as treasury secretary. Blankfein says he would be a great treasury sector treasury secretary. That is your Bloomberg Business flash. Guy thank you. Let us pick up on that last story. Sweeping pay limits on wall street. Trying to do so by january. We know what happens in january. The Government Agencies are making lastminute adjustments to the measure to complete it within the next two months. The rule by the finance industry is that it is the last major unfinished piece of the doddfrank act. We await further updates from the donald trump transition site. Find outiting also to who will be the next treasury secretary. The wall street journal is talking about a republican from texas. He is the chairman of the House Financial Services committee. He is not a great fan of doddfrank. Is doddfrank dead, what would replace it . Good morning. The banks have had quite a week on the idea that maybe we are going to see the Regulatory Burden lifted, rolled back, and we have a steeper yield curve. How much further to the banks have to run . It depends on how much further we think the yield curve will move. Looking at there valuation rally in the european banks, you are some sort of relief rally. They were trading at lowes. It is important to distinguish between those that have u. S. Abroad u. S. Operations and those that are not affected by the doddfrank. The is a big positive for european banks and banks like barclays that have business in america. Wilbanksggregate, benefit generally will banks benefit generally . It feels like basel cannot go any further. The regulatory run which we have seen since 2008 has hit a high water mark. I would broadly agree with that. To be a Bank Investor at this point, you have reached peak regulation on both side of the the on both sides of pond. If you look at places like italy where they are attempting consolidation, that should be a positive for the market as well. Caroline let us draw our attention to what is happening in the u. S. Treasuries. A phenomenal spike. This steepening of the yield curve has been so quick and explicit is that what is driving the banks . I think you have a number of buyers on the sidelines waiting to see what was going to happen in the elections and what might happen Going Forward. You have a clearing clearer path now on the easing of regulations. I think this will only help the move in the treasuries. The steepness of the curve is a critical point, in particular the 10to. 102 . I think that is very important for banks in the future. They are still trading at alltime low valuations. Caroline sub one. Barclays potentially would benefit. Thanks with the u. S. Operations. Banks with u. S. Operations. The u. S. Banks are a few years ahead. You have more confidence in the capital basis of those banks. They have comparable ratios but the assets within the u. S. Banking system are of a high quality and that is not that ambiguous compared to the european peers. There is still a need to write down assets across the books. You will not see that coming through in cash. Guy we still want to understand what those assets will mean in terms of unwinding them. Stay with us. Great start to the conversation. We are minutes away from the european open. We will take a look at the movers in trade today. Sincehas its best quarter 2013. Those stories and more our next. This is bloomberg. It is the first positive quarter for pimco. Net in euros. It is the first positive. Customers are valuing this strong franchise and the performance of pimco. It is paying off and we are turning the corner. Cfoline comments from the speaking to bloomberg this morning. This is one of our key stocks to watch. Called up 1. 5 percentage points. Keep an eye on pimco. Finally, we see after more than three years, their first quarterly inflows. Allianz profit is up 36 . Is it time to start getting into these players as we see these yield curves steepening. Freddie, bond funds had a great run. Over the last few decades. Is that coming to an end, do you think . It has to. They are already yielding negative Interest Rates. You cannot go a lot further. Think we are certainly near to the situation where there is little value in bonds. It is very hard to see the value in the sort of Government Bond funds in particular. Caroline in terms of use setting up new fund laterals. What our clients feeling . What are clients feeling . They are cautiously trying to i too much. They are much less cautious on bonds. Asset allocation models are broken by the quantitative easing we have had for the last five years. Clients do want participation in equity markets. But they want something to hedge the risk. Freddie, great stuff indeed. The market open is next. This is bloomberg. Guy welcome to the Bloomberg European open. Bloomberg markets. I am guy johnson. In new york. She is in london. Caroline has your morning brief. Caroline who is on Donald Trumps team . China enters a bull market. In 30n has its best week years. And the Dow Jones Industrial hits a record. Sees itswned pimco first inflows since 2013 with the treasury selling off and talk of trumpflation. Guy we just take you down to the european open. Let us show you what is happening. Eight seconds to go. Let us show you what is happening. We are not expecting fireworks. But this is what we are looking at this morning. I suspect ours are a little bit jaded. London market just dropping a touch at the moment. Xd 8. 27. 6827. Looks like we are seeing a more cautious to the start of the day. We are just flirting with a flat line. Caroline i am focusing on how the sectors breakdown this friday morning open. We have seen such a run in metals. And a bull run in china. Let us look at the miners. Financials currently doing the trade, up 0. 2 . Energy up 0. 25 . Equitiesmoving into cautiously. Up 0. 3 on the stoxx 600. The yield curve goes steeper. Checking in on the gilt yields. Picking up elds clearly, yields picking up a little bit. Keep an eye on u. K. Gilt. I want to show you the disparity we are starting to see in the u. S. Versus europe because u. S. Treasuries is where the real run to of the selloff has been. Inflation is on the agenda. We see this curve a space happening between german and u. S. Yields. Yields have. Climbed over the course of the week and we are starting to see that disparity grow. Is money going to be flowing out of the u. S. More so than in germany . Lipping over to metals what a rampup for copper. Relative strength index showing we are the most overboard on copper since 1986. Usually, the technical signal it is time to get out if it comes below the red line. Copper is seeing a 16 rally this week. Let us look at one of the stocks that has been outperforming on the back of this. Look at it outperform. What a rampup. Postal ramping up. Rejecting the approach from the belgian mail service rival. Sufficiently compelling for our shareholders. Thank you very much. Meanwhile, allianz up. Profit jumping 36 . Check out the yield story. U. K. 10 year yield climbing more the first. Ce june guy the bond market will have to think about what happens next. It is veterans day in the u. S. Armistice day in the u. K. Will be we will come back to that a little bit later. We reference to this earlier in terms of what has been happening with inflation and the bond market. Theation is something that erratically should be good for equities Going Forward but this is a chart that takes the yield all the way back to paul volcker. And then into the greenspan era as well. We see this declining care of lines. Are we about here starting to break that trend . And what is the meaning of this for the Investment Community and for the corporate sector . Donald trumps Transition Team launched a website outlining the president elects plans regarding health care, immigration, the Financial Sector and the energy sector. And what the regulations for those sectors will mean. How does big business feel about what is happening, trumpflation, and the regulatory story . Here is what the ceos have to say. He will be pretty pragmatic. He is a businessman with a lot of experience in property development. He has run big projects. I think he will surprise on the upside and i think he will be a good president. There is a big opportunity here when the government and the president wants to rebuild the infrastructure. The policy of tax reduction and getting rid of doddfrank and replacing it with something else. Fiscala of getting discipline. Those are positive. There is a lot to be hopeful about. The media played a positive role in this campaign in the sense that it was ever present which media is today. Did the media get it right in terms of predicting the outcome . Deserves some scrutiny about the media and how they got it wrong. Maybe it will not be in the u. S. Context quite as bad as some people think in the medium term. In the shortterm, the immediate impact, Many Companies will be faced with making some decisions. Donald trump is probusiness and proamerica and he wants to see Companies Grow and do well. And create jobs. Caroline that infrastructure is helping. Allianz really surging this morning, trading up more than 3. 8 . The reason is that they beat their profitability. This is the biggest move since seen it since june 20. Market capitalization is up. A big deal. Emco getting some inflows after three years. Guy i wonder what the next quarter will look like in terms of what will happen with the bond market Going Forward. We have sown you some charts about the longterm stories of bond markets. Let us talk about inflation and what trumpflation could ultimately mean for the Investment Community. Freddy is still with us on set in london. People are talking about a big push in terms of Infrastructure Spending but the u. S. Jobs market is already pretty tight. What does that mean for investments . Policys an inflationary and you are just about to have a push through from commo