The hedgefund closes its doors after the industry veteran says he lacks commitment. What is going on with sidecar . The uber rival fails to get off the starting line as the ride sharing business backed by google and Richard Bransen says it is shutting down on new years eve. Here we are. A second last session of the year. Lets check in on futures and what theyre imlying to the u. S. Market open coming off the 1 rally. Its in line with fair value so were priced lower for the s p 500. Giving back free points at the open. Dow jones industrials called down by 17 points and the nasdaq. Were above fair value. Called higher by 2 points. Heres the rally we saw yesterday. 5 billion in trades being priced yesterday which is in line with Christmas Day and thanksgiving day. So the Dow Jones Industrial up 1 . S p 500 with the 1 rally. Positive territory for 2015. Lets see if we hold into the years end. As for technology because that was what was powering u. S. Shares yesterday. The likes of apple. Amazon alphabet. 15 year highs but thats not translating through to the european session. We saw a mixed session for the asia pacific and thats what were getting here during the european session. Ftse 100 seeing declines and then the cac 40 losses of a tenth but elsewhere as you see, squeaking out some gains today. Thanks, indeed for that. Peter fitzgerald is with us. Head of multiassets at aviva. Good morning to you. Good morning. Lets get a top down. What kind of start for 2016 do you think well have at markets. When you look forward to 2016 one of the Big Questions is what is going to happen to u. S. Rates and what the fed is thinking. And the Market Expectations are denine in pricing in two Interest Rate prices by the u. S. While the fed is saying theres going to be a gradual increase in rates but probably four rate rises. Theres a disconnect there and thats one of the key drivers across markets next year. One of the critical questions is to try to understand exactly why the fed moved when it did because people still look at some of the Economic Data and say it was questionable whether they needed to go given where we are with inflation at the moment. So is the fed looking more aggressive on the rate cycle because theyre trying to do a confidence trick on investors and say growth is more robust than it appears to be. Have confidence to put money to work because theres a big question mark as to whether corporate earnings will get better or worse in 2016. A lot of people thinking there will be further downgrades. Theres a number of questions wrapped into that. Into that statement. So if you look at growth, its reasonable in the u. S. Unemployment is reasonable. You have score inflation in the u. S. Now at 2 and slightly higher and if you actually take that core inflation in the context of oil price which is have collapsed i think the fed is probably not wrong to start to raise rates. When youve had zero Interest Rates for 7 or 8 years people are accustomed to that and assume its the norm. And theres the expectation that the boj will print more money and same thing for the ecob but its going to be a high hurdle to clear in order to start that process. I think one of the key themes as you look forward to next year, going back to your question, youre going to see an increase in the divergence of monetary policies between the European Central bank, the bank of japan, and the fed. Where as during the financial crisis, they all acted in the same manner of where they slashed rates. Engaged in various forms of qe. The ecb much later than others and as you start to come out of the crisis youll see a divergence in the policies ooechbd and even if they dont do more qe we also believe japan will probably do some form of additional st stimulus but theyll not start to raise rates. Peter youll stick around for the whole hour with us. Thank you for sharing your time. Lets give you a run down of what to expect. November pending home sales are due out at 10 00 a. M. Eastern time. These track signed contracts. Theyre a leading indicator of housing activity and 10 30 a. M. The weekly u. S. Oil inventory report. Expecting a decline of around a Million Barrels but the American Petroleum institute off showing a surprise build of close to 3 Million Barrels. Lets have a look at the top stories kicking around this morning. Carl icahn can get another victory. Bridgestone wont counter his offer for pep boys. He sweetened his bid for a second time on monday to 18. 50 a share. That values the company at about a billion dollars. Pep boys board said that offer is superior to bridgestones. Icahn said it would be a perfect fit for auto plus. A rival that he owns. It rose nearly 9 on tuesday but fell 3 in after hours trade. Were going to borrow a line from queen this morning. Another one bites the dust. Another hedge fund is closing up shop. Doug hurst closing seneca capital. The firm returns most of their outside capital on tuesday. Its an Event Driven Fund making bets on corporate mergers, spin offs and restructuring. Theyre only down 6 this year but in a letter to clients, a r cofounder saying he can no longer make the commitment to run outside capital. Meantime its been a bruising year for hedge funds as a whole but will they fair any better over the next 12 months in 2016 . Kate kelly filed this report. 2015 was a rough year for hedge funds with almost 0 returns for the year as of mid december. With consolidation and closures as well as more predictable stock and bond picks. Here are three things to look out for. Many investors notified hedge funds of their intention to pull out capital and theyll have it back by january 1st. That means a decline in total investable assets that already saw the biggest down tick since the financial crisis. With regulators bearing down on hedge funds and expectations on performance increasingly tough to meet, expect to see some funds turning themselves into family offices. Managing money for family and employees only. Big players have already set the trend. And dont expect long shot bets like a billion dollar short or herblife or beaten down stocks in the coal sector or sovereign debt perhaps. Theyll return to what they know. Straightforward activism and buy and hold strategies. Ambec financial is warning puerto ricos governor over what it says is his illegal plan to die vert revenue from rum taxes to meet the financial obligations. That money is pledged to puerto ricos infrastructure authority. Earlier this month they granlted the territory the power to take revenues from public agencies through claw backs. Puerto rico faces a 1 billion debt payment on friday. A Fairchild Semiconductor received an offer to buy the party which topped its deal. It is identified as Party G Group and reports say that party g is actually China Resources microelectronics. So 21. 70 a piece values fairchild at 2. 46 billion. Theyre reviewing the bid but recommend that shareholders back the deal they already agreed upon. Rising some 3 in after hours trade. Over in frankfurt were up close to 4 now. So some of yesterdays gains in the oil price getting unwind. Crude prices continuing to slide. Wheres the bottom for this market . Well take a look at the opportunities that may be on the horizon, right after this. While youre watching this, im hacking your company. Grabbing your data. Stealing your customers secrets. Theres an army of us. Relentlessly unpicking your patchwork of security. Think youll spot us . You havent so far. The next wave of the internet requires the next wave of security. Were ready. Are you . U. S. Futures point to a lower open after they helped push the s p 500 into positive territory for 2015. Carl icahn triumphs. Bridgestone wont come back with a counter offer for pep boys and play time is over. Toys r us closing down its giant flag ship store in new yorks times square. Yeah, another commodities Trading House in the news. Nobles Credit Rating downgraded to junk status by moodys. This move comes despite efforts to try to maintain its Investment Grade status by shedding assets. The ceo is hitting back at moodies in a note to its staff. He says it seems they werent able to differentiate between an environment clearly challenging for upstream players and one that opens up opportunities for an asset like trader like ourselves. The stock is down 65 but also being hurt by Iceberg Research earlier this year of inappropriate accounting they say. Lets have a look at the Energy Prices and api data showed inventories crew by 2. 9 Million Barrels last week despite analyst expectations for a decline setting the oil market up for further losses. This after gains during the session due to the cold weather outlook. Thats where we are on the brent trade the russian finance minister says this morning he thinks 40 barrel is where well average on the wti price this year. That seems top end given what were learning about supply gluts around the world. I think when you try to predict oil prices the world is littered with people that fail to do so and broadly our view on commodities is that theyll remain lower for longer than people expect. If you consider that the median bear market and commodities has a duration of about 17 years, and you assume that were in somewhere around year three or four and you probably have a longer year to go and the world needs to prepare itself for the environment where those Commodity Prices remain substantial. So were in a bear market for commodities. We have been in a bare market for commodities for the last three years. So 20 barrel . I think theres a range of estimates around oil and our view is that they will probably head lower rather than higher and theres an unwillingness to cut supply. Demand that is increasing very slowly are actually declining in some areas and its difficult to see what the catalyst is going to be rather than some short form of interruption for that to bounce. Last year when we were starting to see this oil story unfold many people got excited about the trade in those countries that are heavily dependent on energy from elsewhere and yet it hasnt played through as sweetly as one might have hoped. It hasnt driven people into markets like india or indonesia or others that are sensitive to the energy price. But theres other areas that you can say there have been beneficiary. So when oil prices go from 100 to 150 people get worried and theres going to be losers there so there has to be winners. It cant be in both directions. Transport lines, cruise lines and some of that is the Consumer Spending so there have been winners but they take longer to play out, a realization that these oil prices will remain lower over a weird of time. Walmart has not had a great deal. Plenty of retailers have struggled this year and its hard to see that that wind fall as you describe it has really played through. Its more bricks and mortars that are in trouble where the likes of amazon doubled on the year. Arent retailers and consumers going more online . Its the trend of the millennials and how they shop. Youre seeing a substantial move to online retail. Amazon is a particular story on its own given the very lofty evaluation. I think the forward looking pe estimates are over 300 at the moment. Its probably a particular case in question but youre seeing it even in food retail in the u. K. Where you have stores like tesco are struggling because of that move online so to highlight just walmart is probably looking backward rather than forward. I just struggle with the whole idea that dot com good and bricks and mortar bad. Its interesting when we talked about side car, you have uber, you have lift, you have side car. These unicorns were just meant to be good for some time to come. Its a story that people felt they could get and now its a business rather than actually growing from here. Old fashioned things like profits and management expertise and ability to execute still matter. I fully agree. If youre really looking for the valuation anomalies you look at bio tech. You strip out the Top Ten Companies in that index and the rest are not making any money. Okay. Well were going to talk more about Technology Since they were the out performers yesterday and really for the year. Lets get the latest on the fight against isis and we are striking at the head of the make. U. S. Defense officials have taken out another isis leader that had links to the man behind the attacks. He was killed by a targeting air strike on december 24th. He is a spokesperson for what is called Operation Inherent resolve saying that the isis leader was actively planning additional attacks against the west. Closer to home, a british couple has been convicted of plotting a terror attack in london. The husband, Mohammed Raymond drew attention from the police when he sent out a tweet asking for advice on which targets he should hit. The 25yearold man was planning a suicide bomb attack on Westfield Shopping Center or the capitals underground network. His wife helped acquire the stock pile of chemicals found at their home. Well take a breather here on Worldwide Exchange. But still to come on the program as donald trump kicks his Campaign Spending into full year, another president ial hopeful decides to call it quits. Well head out to washington for the very latest. The italian Prime Minister says he would render his own political career a failure if the referendum over constitutional reform goes against him. He has been campaigning to abollish the senate. It spaszing through parliament with the vote to be held in october. Meantime, mateo renzi. He seems to enjoy it every time i give it the extra italian flourish. No Systemic Risk for italian banks in his words as the government comes under fire for contributing to a 3. 6 billion euro bailout for local banks that hurt more than 10,000 shareholders but italy has too many banks and consolidation is necessary. Then there were 12. Former new york governor George Pataki is dropping out of the u. S. President ial race. Hes the fifth candidate to bow out and fourth governor joining rick perry, scott walker and bobby jindal. Meantime, donald trump says he will splash the cash to ramp up his campaign. The u. S. Republican candidate plans to spend 2 million per week on Campaign Advertising and promised to tone down his rhetoric if he was elected president. Speaking at a News Conference yesterday, trump, he sounded moderate. Whether youre a democrat, liberal, conservative, republicans, we just want to make our country great. We want to take it back and create jobs. We want to have a good living. We want to live well. We want the wages to go up. We want to go out and do a good job and work. Lets head straight to washington. Edward lawrence is standing by. I guess donald doesnt have to pay for advertising since the networks give it to him for free. So far he has not. He only spent 217,000 total on radio ads and some are saying this might be the wrong move. Having donald trump do a conventional campaign might not work for him going down the road because his campaign has been so unconventional up to now and hes doing so well on the polls. A new poll showed that donald trump if the election were held today would be in a dead heat with Hillary Clinton if she was the candidate and he were the candidate. Hes doing well in the polls here which is maybe why hes going after former president bill chin on the. Donald trump saying that he, former president bill clinton is actually the sexist one. Where Hillary Clinton lead with the charge that donald trump is being sexist toward women. Thank you so much. Edward lawrence there in washington d. C. Lets get you an update of whats going on with fifa. Espn invited the five fifa president ial candidates to take part in a televised debate. Five candidates are in the running to replace sepp blatter. The goal is to provide a forum for open transparent discussion about the future governance of the sport. The election is set to take place on february 26th. Okay. Well leave you with a look at how futures are trading ahead of the open on wall street given that we are looks like we are pushing ever closer to a positive end to 2015. Hello, everybody. Good wednesday morning. Lets take a look at your headlines. Oil is spoiling the party in europe today. Stocks are trading lower in the second to last session of the year. Being dragged down by commodity stocks. This is wti falls close to 4 so far. Record highs from tech giants amazon, alphabet and microsoft help drive the s p 500 into positive territory for 2015. Were going to channel some queen today. How about another one bites the dust. Hedge fund seneca capital closing its doors after doug hurst says he lacks commitment. Sidecar fails to get off the starting line as the ride sharing business backed by google and Richard Bransen says it is shutting down on new years eve. Here we are. Last trading session of the year of 2015. How does that feel to you . Its fast. The year has gone by pretty quickly f youif youre just tun thank you for joining us. We have the s p 500 now back in positive territory for the year. Meantime the implied open is telling us were pretty much in line with fair value. The implied open for the s p 500, were called down by 1. 5 points. Dow jones underperforming fair value. And the nasdaq is pricing in advance of three points or so. Heres the lead from the european session. Its mixed out there after the mixed close in the pacific rim overnight. Ftse 100 down by a third. Meantime the french, cac 40, flat now. Coming back from losses earlier on in the session and ibex 35 in spain, were up about a fifth of 1 of so. Its been a grim