We bring you an exclusive interview with jpmorgans jamie dimon. Set, the former ecb director of operations, and google on whether Central Banks have learned. Later, we bring you a weekly brexit show what is next gekko we will talk to the director general about why he concluded that britain would be better outside the eu. First thing is first come in is sebastian with the first word news. Politics mapping out and plans. Economists in the Bloomberg Survey have raised their growth estimates to 6. 6 from a month earlier. That is stimulus and a stronger global demand. Asahi is in talks to purchase a telly on actelion. Representatives did not immediately respond to requests for comments. Secretary general has applauded Donald Trumps choice of secretary of state. Anaid Rex Tillerson is outstanding oil technocrat. High expectations around the world, he is deeply there is ale, and very thin line between oil, geopolitics, so i congratulate president elect donald trump for making such an excellent choice. Sebastian global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am sebastian salek, and this is bloomberg. Francine driving the market this morning, lets head to nejra cehic of the bloomberg. Good morning, francine. European stocks closed at their highest level since january. We were a little more subdued. If you take a look at how the factors are breaking down, we look at energy and Health Care Stocks leading the gains, and on the downside, Consumer Staples and materials. Among the Health Care Stocks, one of the best performers, act telion seeing the biggest junk, up almost 13 after sanofi said it advanced talks to acquire actelion. This is according to people with knowledge of the matter. Announced asd be a soon as last week. Actelion was down yesterday but is up today. Moving on to see what is happening in the fc space. We are a close eye on the dow jones. It is heading toward 20,000. What is interesting here is the dow is approaching a level that crossed manys times steered you conceiving nikkei in white and the dow jones in blue. Finally, of course, it is all about the dollar and all about the treasury. The fed hike for the first time this year. The dollar is pretty much unchanged after jumping the strongest in 2003 versus the euro yesterday, 10 year yield down. We are still above 2. 5 on that, basically falling from the twoyear high, snapping a sixday rising streak for the 10year yield, and what we have here is a dollar long position of your dollar gains are at their highest level since january very good question, of course, is how much further the rally has to go. Francine thanks so much, nehjra. Nejra. Sachs and jpmorgan stock is up over 20 since the election. Investors saying that only his business from a policies but names as hiseet cabinet picks. Bloomberg spoke with Ceo Jamie Dimon about the Trump Administration. Megan murphy asked first about having been a potential bid for treasury secretary. Been quiteve always public about not wanting to be secretary treasury. I love what i do i am not ready to do something else, and i think it as a lot of value to america to do what i am doing. Megan there we go her and that is the answer. As recently as september, when whatu were talking about the next administration would be and this was before the outcome of the election you said it would be difficult for wall street guys to get confirmed. Now we look at the landscape that we have a we have several wall street figures, some of whom you know very well, including gary cohn from goldman sachs, Rex Tillerson from exxon mobil, steven mnuchin. When you look at that cast of people, what are they going to bring that is different . Is this a good thing . Obviously i was dead wrong about, you will not see a wall street person in washington any soon, but you have the republicans in charge, and republicans are not antibusiness the way you have seen democrats be antibusiness for years. If you are going to be president , i think it is a mistake for the American Public to think if you work for an oil company, a bank, that automatically makes you bad. Is a goodi think it thing. A lot of these people are very qualified people. We want a patriot who will help the country. These are people with deep knowledge that will hopefully do a great job. Megan do you think now when you look at that shift in terms of wall street that this is a reset moment for the industry more broadly in terms of what the American People are asked acting in what they are likely to see expecting and what they are likely to see . Ie i have always believed 145 Million People work in america. 120 5 million work for private enterprise 20 Million People work for government. We hold them in high regard. Fireman, sanitation, teachers but if you did not have the 125 million, you could not have the other 20 million, so its a huge part of society, and theyre beaten down but they are terrible people. I think it is a good reset. His choice is a perfect example that you see where civic society, notforprofit, government, business working better the lives of the American People. I think this reset have a chance to do the same thing, if you duplicate what you do in detroit around the country, you will have a huge renaissance. Interview will be aired in full and featured in Bloomberg Businessweek. Lets the speak with the ecb director general of operations francesca property of franceco papadia. As we were listening to jamie dimon together, if you are a central banker, how do you model with what the economy could look like but could fall short of expectations. Franceco the biggest worry for me is the risk of protection from the united states. I think it is a cloud, not more than a cloud, and we do not know what it is going to do. Think, fromlpful, i that point of view, so that is my top issue. The second issue is fiscal policy. Fiscal policy was long invoked by Central Banks to help monetary policy, and now it is coming in the u. S. Or probably coming to the u. S. At the wrong time, i would say, because the is doing fine in terms of unemployment. Maybe even a little below that. Theation is moving toward target of the fed. There is a momentum. It is not clear that now he would need that, so that is my second. Francine mario draghi, every press conference, has been asking for it francesco well, the situation in europe is very different from the u. S. We are very far behind in the recovery. 4. 8 , ifent is not at it will ever get there in europe , so that is a very different story. And yes, mario draghi has been asking for help. I think he has made that kind of request because he did not ask just for more pressure, more easing from fiscal policy he also asked for a different composition, and more growthfriendly, which has not happened. Francine all right, francesco papadia, stay with us for the next 40 minutes. Over to taper or not to taper, the big question for 2017. Coming up on bloomberg surveillance, is 2016 the year that Central Banks reached their limit . We ask mr. Francesco papadia. Unlikely alliance, the greek Prime MinisterAlexis Tsipras and germanys angela merkel. United front on brexit beginning to crumble . This is bloomberg. Francine bloomberg surveillance. I am Francine Lacqua in london. Lets get to the Bloomberg Business flash with sebastian salek. Sebastian alliance regulators are uncertain about getting approval. Spokespeople for alliancz and generali declined to comment. This biggest verdict in u. S. As any, gilead opportunity to appeal against merck. Similaraker is making gm is making similar tests in detroit. Going forward, Metro Detroit is one of the primary areas that gm will be doing test of economist vehicles. Thisll be our main location for cold weather been, and we are demonstrating that today, as well as Winter Driving conditions. Sebastian that is the Bloomberg Business flash. Francine thanks. Onting to see what happens the political front before changing monetary policy. Monitoring be follow from brexit and populism. Former ecb director of operations, mr. Francesco papadia, thanks for sticking around. They are trying to address a scarcity of funds. Tweets about how much they could buy and when. Will it work . Francesco in a way, the move was a smart one because they managed to convince the market that they are keeping their help , i think they used the term substantial easing, and what is the said point of extending the program, because the ecb has said they will continue that until the government would be convinced that their back toward 2 , but then i understood that they managed to give a sense to the have eased, and until the end of next year, they will not be convinced that inflation is going back, so they gave the minimum length to their program, and it seems to work. Francine so you do not expect by the end of 2017 for the target of the 2 inflation being reached . The ecbo no, not even expects that. And mario draghi even said, when is it consistent with the 2 . Not really. Evidently, even the downside rate tends to lead to deflation. Francine what measures do you think they can adopt to keep this Program Alive . Francesco i have been saying funny things for a while, which they evidently did not do. I have been saying for some time why dont they intervene in the market for inflation, why dont , theextend the program equities . I think this is intellectually and in a way, they set the ground for continuing a pace, and iat this think that they also managed to acquiesce some of the holes in the governing. Nielsen we had eric suggesting that the measures put in place were also to steepen the yield curve, to actually help out the banks a little bit, not only for profit but to make banks a little bit healthier, which is something the ecb needs for a transmission mechanism. Is that true . Francesco yes. I think this may be true at the margin. I dont think they have a bank profit as a very clear edge up clear objective, and in any case, what they do for the economy is more important for banks than what they do with the yield curve. So i think they have had this thought, but i do not think that would be predominant in their thinking. Francine do think there are concerns that the measures adopted were not for the real economy . Francesco this has been a worry all through because the ecb, doing things for the money and maybe the most important intense that they had was targeting longterm refinancing operation, reestablishing the length. Francine when will they taper . Is it too early to talk about tapering . Francesco yeah. Of course, mario draghi was very strong, no, no, we do not talk about tapering, but he did not talk about tapering, so this issue is becoming a bit normally a stick. Me, we that if you ask are not going to keep the pace at 60. And this may be part of the acquiescence i was talking about from the hold because, i mean, clearly they did not approve, but they did not go out shouting. So there is some sense that the bonus bank is accepting this as a necessary evil. Francesco papadia, ecb director of market operations, stay with us. We will be talking about italian reform and the italian Banking Sector next, this is as monte has a lastditch effort to raise 5 billion euros. This is bloomberg. Francine this is bloomberg surveillance. I am Francine Lacqua in london. It has been a tough year for italian banks, not least of which for wanted a posco, trying paschi, monte dei trying to raise 5 billion euros. Still with us is the former ecb director general of market operations, francesco papadia. If you look at the italian Banking Sector but in general the economy, we did not get the kind of sellout from the markets that we were expecting. It wasco yeah, i think better than we could have fe ared, but may be behind it, there is the idea that there are at least two lines of defense. The first is what theyre trying to do with the market, and the second one is, as you said, government money, which in one way or the other will come. It is not in the business of anybody, not in the interest of course of the Italian Government, not me interest of the european commission, either in the competition or finance area. I think that the idea that eventually something will be done. Francine with or without a veil in bail in . Francesco if it is a bail in, then there will be competition compensation for retail holders. Francine and the government can do that . Francesco yes. I think there is an agreement. There is proof or evidence that they can do that. I think the competition has already accepted that. Of course for those who have invested, it is not the same to be reimbursed, not to suffer the loss, but maybe be acceptable. Papadia, francesco thank you so much, the former ecb director of operations. Stay with us because up next, our weekly show brexit. What is next . Early negotiations begin to show cracks. Happy 3 of britains are with the way the government is handling brexit. We will be talking brussels, brexit, and theresa may. That is next. This is bloomberg. Generosity is its own form of power. You can handle being a mom for half an hour. Im in all the way. Is that understood . I dont know what shes up to, but its not good. Cant the world be my noodles and butter . Get your mind out of the gutter. Mornings are for coffee and contemplation. That was a really profound observation. You got a mean case of the detox blues. Dont start a war you know youre going to lose. Finally you can now find all of netflix in the same place as all your other entertainment. On xfinity x1. Francine welcome to our weekly Bloomberg Brexit show. I Francine Lacqua in london. Amfor the follow this week, lets is straight to sebastian salek. Sebastian a record low, the last policy announcement for the year, that came as policymakers walked the line of inflation. Cool themy will economy will cool next year as Consumer Spending weekends. Weakens. Willhile, the weak pound push up prices. Hsbc has outlined how the u. K. Government could help ease the Economic Impact of brexit. Speaking exclusively to Francine Lacqua, they outlined the plan for british banks. Our customers find things awkward and ugly, then that will affect the economy, so i think it is in everyones interest to make it as smooth as possible, which i certainly think is necessary. Sebastian you can watch that interview in full at 8 00 p. M. U. K. Time today and across the weekend. The potential for disunity on brexit emerges from the brussel summit. Aeresa may and meters voted short final session to their approach to brexit. The discussion included efforts over how the government and eu bodies will be represented in the coming talks. The u. K. Opposition labor party laid out the partys position against the hard brexit. They warned that quitting the Eu Customs Union and Single Market would push the british economy and jobs over. It probably does entail an element of pain, and all businesses are concerned with what they want, meaningful access to Single Markets, so there is an obvious tradeoff, and businesses are saying, look, we need to trade successfully with our european partners, whether we are trading in goods or services. Sebastian and new york, rather than the European Union, maybe the new winner. That was the morning this week. Sides arens on both pragmatic, and jobs could go to wall street rather than frankfurt, which is far behind. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am sebastian salek, and this is bloomberg. Fran . Francine thank you. A poll released yesterday showed 33 of britains believe the u. K. Government is doing a good job handling of withdrawals from the eu. They handle the negotiations, starting to show cracks. For more on the frontlines of the brexit deal, lets bring back francesco papadia, nonresident fellow at bruegel. Question, butral how should Central Banks in the markets look at polls . The methodology in 2016 was so wrong on every level. Will 2017 be any different . I guess in this case, the central bank is mostly trusting their fingers. Francine that sounds very technical. It is the best they can do. They can hope that they can follow and have some bearing rationality. This may be a big requests because some of what you see in the political sphere is not rational from an economic point of view. Brexit makes smaller things economically. And i had brexit make even less n and a hard brexit makes even less sense than a soft brexit. So just a set, democratic environment, and they accept whatever comes from the political front. Francine how does it play out . What have you learned about brexit . There was an eu summit yesterday. We heard the eu could not agree on who was doing the negotiating here in the u. K. K we are not sure what ministry is taking these. Were you expecting it . I do not know if we are just messy or in the dark. Francesco the british people took a very basic decision ok, we do not want to stay in the European Union anymore but there are 100 ways in which you do not stay in the European Union, and now the difficult part is to choose one of these hundreds. Continental european, if you want to call them like that, and for the u. K. From this point of view, they are straddling beyond my area of expertise. I think the British Parliament has a clear role to play there. Francine right, but we are still waiting for the