europe i is still l reeling froe shock. as a candidate, donald trump b ashed nato and criticized europe and angela merkel. what can be expected now? what is next? in his victory speech, donald trump'p's tone was more conciliatory. he pledged to be a president for all americans, and told the world community he plans to seek common ground with all countries, saying he wants partnership, not conflict. is this a new trump? that's what we want to talk about with three people who follow transatlantic relations very closely and have been watching this election and its aftermath. a pleasure to welcome susan neiman, the u.s. american philosopher and head of the einstein form in pottstown. she says, i am reluctant to make fascist comparisons, but trump's victory is extreme the frightening. europe must now take on the responsibility for democratic and social values. stefan prystawik is a lawyer and a german-american political consultant who was a member of the republican party. he has left it. he says, an evil, aging clown and yellow

we may get another trump in europe. matt: this period of uncertainty is probably an exciting and interesting one. is it scary? among the worst times that you have seen since 2008 and 2009? >> it is a good time for economists. i love it. matt: expect for the fact that -- except for the fact that the outlook could be so negative. are you worried it could go a brexit trump populist direction? >> that is very difficult to make a call on this. we already saw in the presidential election and the brexit referendum that you should not pay too much attention on the polls. currently the polls suggest it is a neck-to-neck race and i think it is absolutely possible that the italians may vote against the senate referendum and that may get he said ions because he could step down if he does ot get through this forum. it will implement a division of later between the two chambers of parliament and only then the parliament may work efficiently which is a precondition of the economic reform. therefore this reform is key. matt: all right.

as long as you count europe as a block. are we going to continue to count europe as a block? guy: i think you should. probably should put europe as a block. if you think of europe as trading regions, it becomes a more important factor in this. anyway, mario draghi is probably thinking about this as well to be honest. matt: absolutely. i was making a little bit of a joke in light of the fact that you are leaving and of course, we see what happens with the referendum in italy in just a couple of weeks and then you have french elections, and who knows how long the eu stays one whole lot. speaks about how this will have long-term it impacts and calls for fiscal ask him. -- long-term impacts, and calls for fiscal action. this is bloomberg. ♪ guy: welcome back. you are watching the open. mary abu dhabi says brexit and donald trump's election will mario draghierm -- says brexit and donald trump's will have long-term effects. dollar inearly, every the stimulus will be harder to come by. i don't expect a 12 month extension of qe. guy: you think about how that is going to operate in

the united states relies on europe. it is not only our biggest economic and trade relationship, our most interconnected defense relationship through nato, our intelligence sharing, our political cooperation. if you take almost any area of government activity, we work closely and often most closely with our european friends and allies. but now we're in a situation where european unity is under pressure from several different directions. unless you're an advocate of american unilateralism, which generally doesn't work out particularly well for the united states, we need to find a way to recognize and to address the way that affects our interests. now, the european reaction to the somewhat centrifugal tendencies has also not been monolithic. you have on the one hand brexit, and at the same time you have the european union producing a global strategy which is a good document that outlines a number of areas where the european union plays and important role and can play an even more important role in the future. so you have b

or less europe? it's an important question. and there are lots of different responses. the french government in particular has taken a very interesting position, i think, when it cops to everything from military bases and military solidarity to rethinking the economic bases of regulatory agendas. if you had any comments or thoughts on that. >> when you ask the question to a french diplomat, immediately the answer is better. so i have done my job. so better europe. again, the problem that we have been facing is obviously the fact that a lot of our citizens and not only in the uk, a lot of our citizens are disenchanted versus europe or are considering that europe -- as i think david was, was only the front line of globalization. for my generation, europe was something which really -- we couldn't even question. you know? it was the way of avoiding war. the war which have devastated the continent. it was also prosperity and security from the soviet union. it was all these elements. but obviously, for a l

churchill argued that if forced unified europe britain to choose between europe or the open sea, it would choose the latter. rejected the inevitability of such a choice. he was ever mindful of the fate --harold macmillan who had to the common market, and was branded an anglo-saxon trojan horse. entry intobritain's combined a way that dramatic adaptation of traditional british politics with determination to preserve interests.ational wilsoncessor harold anchored the outcome among the public by referendum that indicated its approval. eventwelcomed this with the following statement, "i have worked for this for 25 years. i was the prime minister who let britain into the community. so, i'm naturally delighted that the referendum -- is working out as it is." over the succeeding decades, a political european union was built. and the essence of both the atlantic relationship and the special relationships were preserved. four decades later, the global context has changed. facing the issues of -- time in a new and even more complex form. ton the challenge was how maintain atlantic unity under appro

, of britain of course, that of the rest of europe as well so that europe can be both defended and restored, and that is the focus of these two speeches. one other thing about putting those in context. there is sometimes a tendency, understandable perhaps, but i think ultimately wrong, to see churchill's career as a kind of gradually downward trajectory, but the high peak is clearly may 1940. he stands alone against adolph hitler. then so the argument would go, by 1943, certainly by '44, he is no longer the senior leader within the alliance against the third reich. his place of power has been taken by fdr and by joseph stalin, and then he does indeed gets to potsdam for the closing conference of the european war. that actually he is only there for a few days and then has to go back to britain and face an election which he is pretty sure he will lose. he does lose it, not on the margin but substantially. , and he doesn't much enjoy being leader of his majesty's opposition. in fact he is very depressed by all of that. and so the story would go he finally gets back to number 10, 1951, but mayb

dominance was not good for europe. we are now talking about the threat of rising populism you mentioned it in france and other places. we also need to say that in the years between the banking crises from 2010 to 2015 it was quickly matched to german dominance. saying that merkel is only is wrong.leader also the refugee crisis, there was a huge amount of refugees, i was in favor of this. but it was also a german decision to take the refugees. on thenot consulted european the level, we made that is a german decision. and now we wonder why the other countries are not egalitarian and follow populism against the refugees. there are also consequences and causes. make it feelauses like merkel is the remaining leader, germany takes full responsibility. melinda: restraint and modesty are all very well. but the fact is, in the face of rising right-wing nationalist truly not think your country needs to get out for thed stand up values of your constitution and your rule of law represent? i hear all three of you saying, no. notdri

europe free, that's been our focus, but today, europe is fractured and anxious. and unless we sort of get that discussion going again about how we work on these things together, not just how governments do it, but how populations think we're working on it together, that's probably the more important job, as public diplomacy part of this, getting government i think is going to be very hard. >> i agree with what dan and kurt said. having a strong political declaration at the outset of the next u.s. administration is extremely important. not least because of what dan noted about the burden sharing debate and the extreme criticism of nato at some points in this presidential campaign. so i think, you know, addressing the way forward with our nato allies is extremely important. and keeping up the momentum on resources which has been built up so effectively over the last couple of years. and is, you know, bearing fruit perhaps slower than some would like, but is moving in the right direction. keeping that moving, it would be important as well. >> i agree with the good i

we need a more political europe, a more efficient europe, a europe more focused on strategic priorities that will give back everything else to state authorities. francine: this was an unexpected strong winds. how did he manage this come back when everyone was expecting it to be a sarkozy race? caroline: just like brexit, just like donald trump, european bowls have failed to predict this outcome. they have failed to anticipate that the french voters want a fresh face, a different personality than nicolas sarkozy. four months, the moderate has been the front-runner. a lot has changed. donald trump was elected. you have the candidacy of emmanuel macron. he will continue the fight. >> i have decided to continue the fight. for all those who believe in me, in my beliefs and the idea i have a france. i believe more than ever the people of france need to turn the page of a disastrous five years of presidency that has taken our country down, and to set up a roadblock to the national front, who want to sound us -- send us down the worst adventure. sarkozy -- [indiscernible] juppe ares of alain no

restored deterrence to europe. restored deterrence to europe. i think i see a strategic gap in europe between the limited steps that nato has taken so far and the more robust measures that need to be taken to restore security in europe. the source of this strategic app r -- g-- gap -- gap f--o mamanr many nap manymao understaunderstan understand t thr that hathat havp rt europep europeeuropean sec. to put it simply, nato's response so far has been too slow.pnato leadena ther them, wathem, wath pas if this iras if f facing in 2016. these new threats come in three different shapes and changes. these are changes in nato's geography, changes in technol>> littlittle time and understand we will sp we will see ww aggressive response and this is the map that most leaders are used to. we used to call the layered cake. you saw large deployment of nato troops from the united states and other nations in west germany. what you saw here is sort of the geographic temperament and view that nato leaders are trying to avoid. they do

and the basis of that has been peace in europe. the two greatest world's that the wars in world history began in europe. and establishing nato shortly after world war ii provided the basis for building a global stability system, and that was a path to global prosperity. i'm telling you this because our interests are in maintaining that. that is the vital interest of every american. and right now we have the world's second greatest military power with one of the world's largest economies changing borders in europe by force. explicitly saying he wants to upend that security order. that is a vital threat to our interests. and part of the confusion in washington and globally on this is because we have a president who claimed that the crisis in europe was a regional crisis. he just didn't get it. now, one of the reasons he didn't get it is because his predecessor had us engaging in the middle east in ways were beyond our capacity. in that way i'm sympathetic, that we can do everything we might want to do. but we have a vital interest in

europe is different. >> for the u.s. at least another answer entrenchment when it comes to globalization you think the lights avenue? that will allay fears of the white populist voters. >> there will be a lot of symbolism. if trump says okay i threatened whatever the mexicans or chinese and therefore they came to me and made a compromise, look i have protected you against global san diego that might be enough because we know that really it's not about global san diego it's much more. >> the problem with these parties the populace parties especially here in europe the leftist parties if you look at syria for example he hasn't delivered. trailing in the polls. spain never made it into the government. actually enacting a populist message is a lot more difficult than containing. >> economic populist message it's very difficult. it doesn't work in the past. overspending, retrenching towards one country does not work. they need to deliver the symbolism without damaging the economy. >> is there a sense that donald trump will ro

migration crisis russian activities, you're facing europe -- i'm saddened to say this, europe is going to be much more fluid, much more uncertain, much less capable, much less credible. only the u.s. presence and continued activity engagement in europe, as a european power, will maintain that affirmation of our assurance to our european allies about what this is all about. i think we're dealing with fundamentally important new issue, which eats away at our ability to do what the other wants unless we get ahold of that. if you come to the next first 100 days or come to the next agenda, the most important -- and i agree with curt on that, simply a political affirmation, we are in this together. we agree on the broad nature of the threat facing us and we will stand and face them together. the credibility of article 5 and article 4 and all the other articles, in fact, are still with us and we affirm that to each other. that means the next president really has to take the lead immediately, not projecting to summit and bureaucratic schedule but make a political summit perhaps right away to m

and made europe safe and secure. hopefully, maintaining that commitment is what will continue to keep nato said and secure, but ourselves and our nato allies. 10 to 15 minutes with our guest, our phone lines are open, (202)-748-8000 for republicans. (202)-748-8001 for democrats. also, send us a tweet to get your reaction. the british labour party member said in a speech that went viral, over too many people have watched it. first, al in tennessee, independent line. good morning. caller: thanks for taking my call, a couple of questions. to know what the test for memorandum of security insurance is due? guest: which memorandum? caller: the one where ukraine, britain and the united states signed an agreement. guest: yes. ukraine -- caller: hang on. are you aware that brits don't have in their craft carrier? guest: yes. caller: there is no possible way for the brits to do anything about ukraine. this is an example. the only country that can do and put their power into play overseas is the united states, so all of these f

and in europe. yield up in the u.s., down in europe. this is bloomberg. ♪ . . live from london and new york, this is the european close. stocks finishing the day in european trading. let's take you through all of the market action today. i have to say there has been less action than normal with volume down below the 30-the average. we have still seen some movement on the left. on the left, i had across dr. western europe. smi up 1.1%. gains in denmark, belgium, luxembourg as well. it is a weaker dollar story. the index falling from a decade-high, meaning we are seeing a stronger euro .4%. the swiss franc pushing higher. sterling pretty much unchanged today. in fixed income space, a different picture. we are seeing the 10-year yield in the u.s. move higher. in europe, we are seeing most of the yields move lower. germany down two basis points. we have seen the 10-year go down. portugal down six basis points. we are seeing moves lower elsewhere in the periphery. focusmodities, a lot of on oil with more doubt about the opec deal being reached on november 30. 47.e d

damien: hello, and welcome to "focus on europe." i'm damien mcguinness. great you could join us today, in a week when europe is nervous about so many issues including growing tensions between the west and russia. in kaliningrad, russia is showing off its power. more war ships are being moored here. but russians themselves are thrilled. this woman says it's important that other countries see our strength. building up arms is important, so that people are afraid of us. but more of that later. at the moment in europe we hear a lot in the news about anti-migrant protestors who don't want their countries to take in asylum seekers. but we hear a lot less about the people who are helping. people like jorgos maniatis. he decided he couldn't stand by any longer and watch as refugees arrived in his home country of greece, only to find themselves on the streets, with nowhere to live. the problem for greece of course is that it's still trying to recover from the financial crisis. so the authorities there are finding it hard enough to help greek people, let alone supp

we've never had an army in europe. at the beginning of world war i, united states was tied for the 13th largest military in the world, tied with serbia and greece. by the end of world war i, we had 4 million men in uniform, having gone from 200,000 to 4 million and fully half of them, 2 million service personnel were in europe at the end of world war i. so just the logistics of that are astounding. realize that when world war i erupted, the combatants weren't even concerned about america's role. yet today we think of america as an indispensable power in world politics. at the beginning of world war i, we really were an afterthought and it was woodrow wilson who achieved that transition. i've heard presidents of both political parties say in my lifetime that the united states doesn't go to war basically to build an empire or acquire territory, we go to war for principle, for right. it was really woodrow wilson who was the first american president to enunciate that proposition. i need only guide you back 20 years earlier

forecast. >> in europe, i agree. europe is still much further behind in the business cycle and upside into 2017. so, i think there, your comment is correct. in the u.s., we will see this continuing pressure. >> bob, thanks so much for coming in. global chief from the conference board could look at the french pmi and services pmi, 51.4. the forecast was 52.1. it's easier than the market was looking for. >> the october final services, pmi 54.2. the september final 50.9. gerrje is europe back and have the european central bank spotted it? >> we have to wrap up the program. michael, a pleasure having you on. michael brown, thank you for tuning into the "squawk box" this week. stay with the programming, it continues. >>> good morning. it's jobs friday. we'll talk expectations and what the number could mean for the markets, the fed and even the presidential election. >>> earnings central, starbucks shares rising on better than expected quarterly results. >>> a move to hollywood. dalian is buying dick clark productions. the

you had a lot of trade, especially in europe. he would a lot of people traveling around without passports. this is the kind of situation we could theoretically get into some clash on that side. the first step would be a trade war, which we really do not want. matt: so, simon, howard traders prepared for this? are they hedged for this kind of action? >> i don't think you can head yourself for this kind of action. -- i don't think you can hedge yourself for this kind of action. we saw german exporters to russia taking the first brunt of the spillover from the depreciation affect. they have to take the brunt. it is very difficult to hedge yourself in the fx universe. matt: aside from a survey, you cannot see anybody putting their money where their mouth is to say, we think donald trump will slap tarrifs on, resulting in a depreciation, you can't measure that by market action? >> i think as we go forward, we will see more and more leaks out of the trump team. we had this talk about the 100 day, 200 day plan. at the end of that, mr. t

welcome to bloomberg daybreak europe. anna: we are waiting for corporate news to drop this orning, it is 7:00 in the u.k. we are expecting to open up across equity markets this morning. u.s. futures are higher once again. >> let's look at the key benchmarks we are keeping an eye out on. returned ofoing risk to markets, risk appetite is what we are looking at here. that is still holding above the 2% mark. we spoke about how the 30 year has changed dramatically. a lot of it a reaction to what happened overnight. the: that is reflected in stock market move. the bond market also gaining, then on the fact that we saw the u.s. ten-year go above 2%. that was enough to get some investors interested. we had futures for you which you can see we're going higher and the copper price going higher. many investors betting that more spending in the u.s. and infrastructure would be positive for the commodities complex. 0.22% inhe u.s. and germany. thousands of demonstrators have taken to the streets of manhattan converging on trump tower

and vladimir's dividing europe because -- and vladimir is dividing europe. is dividingputin europe. needs -- it needs the certainty of support from the united states both militarily and politically. there is a question whether donald trump will supply that given what he said on the campaign trail. jon: that is nicholas burns of the kennedy school of harvard. hows another example of difficult it is to get a read on european politics. it was meant to be a la japan -- alan juppe all along. they got it dead wrong. david: the one thing you can predict is the polls are wrong. but angela merkel is trying to be the ballast, the study one, as she has been throughout her career. vote againstis a the establishment, she is very much the establishment in germany. school -- aess columbia business school professor joins us next. in the markets, about two hours and four minutes away. this is bloomberg. ♪ alix: this is "bloomberg daybreak." i'm alix steel. here's what you need to know. the dollar weakens. commodities get a boost. opec will agree to cut output. political risk in europe. the former

. >> and were in europe at the end of world war i. but just the logistics of that are astounding, realize in world war i erupted, the ka b-- and yt today we think of american indisspenceble in politics, but the beginning of world war i, and it was wood rrow wilson who achieved that transition. i heard in my lifetime that the united states doesn't go to war, basically develop a empire or to acquire territory that he go to war for principal for right. it was wood row wilson who was the first american president to enunciate that proposition. he had gone back 20 years earlier to the beginning, which was about taking over the colonies of dwindlings of spanish empire. wilson thought that going to war was about securing and enduring piece. and so this artillery showcasings here on the mantle, where he had it. i think it's fair to say that it was not a triumphant trophy. it was more reminder to him as the work yet undone. the creation of the league of nations had occurred. he was there nobel peace prize for 1919 it was established as a league

opening the floodgates, the turkish president threatens to abandon the migrant do with europe. that could mean the eu bracing itself for more scenes like this one as a thousands of migrants gather at borders and try to come in. and also on the program, massive wildfires going to northern israel into -- international teams are coming to help. tens of thousands of people had to leave their homes. the fires could be an act of terror. and in rio de janeiro, celebrity 100 years of samba, the music that started in the slums and has stormed the world's dance floors. ♪ host: good to have you with us. we begin with rapidly begin -- rapidly rising tension between turkey and the european union. the european parliament passed a nonbinding motion, calling on the eu to suspend membership talks with turkey because of the massive crackdown on opposition forces. today, erdogan that, opening -- openly threatening to read open the floodgates for migrants in europe. reporter: the turkish president was clearly enraged, his words sounded like a threat. >> when 50,000 migrants reached the border to

>> that was just the initial moment of europe's new reality. later in the program we will look at how the brexit story has played out since both economically and politically. in the year when uncertainty was the dominant theme we will retrace the roller coaster fortunes of the oil market and look at volatility and instability in turkey. but many banks were battered. our review continues. this is bloomberg. ♪ >> officials confirmed having agreed to create a fund to support the banks and it is hoped to tackle 360 billion euro in bad debt italian banks are carrying. >> it will address the italian banking system and need to by some banks to raise capital and to try to reduce the level of nonperforming notes. >> italy is said to be considering capital injection. it wants to save the banks and the e.u. has ruled you may not be able to do that. >> jpmorgan said the italian banking issues are political and not financial. is this a realistic assessment? >> i'm sure it is to some extent but you have the constitutional vote coming up and he needs this d

a more stable europe. and for this woodrow wilson came in for much of the blame. the russians tended to argue that the problem with the paris peace conference was that all of these countries on the board got to have their say. so what ended up happening was a conference of compromises. as stalin himself said at potsdam, states are not virtuous merely because they are small. so at potsdam none of these states will be represented. much to france's chagrin, italy's chagrin. the polls will be allowed to send two delegations, they argue with each other, nobody particularly listens to them, winston churchill in fact says i don't want to talk to the polls. i'm sick of the polls, he says. the same issues as i noted remained. if woodrow wilson, david louis george they would have recognized everything with one exception, and i'll come to that exception in just a bit. the exact same issues are under debate. one, what to do with germany. two, what to do about reparations, which is a very tricky subject. somebody has t

to into populist victories in europe? could populism in europe deliver the level of optimism around growth and infrastructure investment we have seen the united states? >> progrowth policies are clearly going to be welcomed by equity markets, and that's very, very clear. the scope for delivering that growth and whether it is delivered is the question. samee likely to see the questions around europe, but you could have optimism. there really isn't too much scope to increase the spending level. and that is one thing that is standing back from all of this that has not changed, the background. that level of debt overall is probably going to be rather similar, and that will be a constraint on all politicians. yousef: so how do you position yourself to benefit the most out of this wave of european populism? let's say the french elections go on, the italian elections go on -- you are saying, put your money in banks? the issue for financial -- as we have seen in the u.s. -- if we get some reprieve from both the regulation and fro

a little bit of strength in europe. crude oil has been all over the place on each headline that comes out from this impending opec meeting. to 45.69 it is down per barrel. the 10-year yield is up about three basis points this morning. david:

bank europe's central tried to ease the region into growth. domestic truly demand. >> it was a year of turmoil in up and down for oil and controversial and regulation and transformation for saudi arabia. >> we are talking about the economic shake since the kingdom was founded in 1932. for a look back at bloomberg best. > welcome on this special edition of bloomberg best we will review the most important in ness review and analysis europe, phaoefrpmiddle east and 2016.ught to you in we start with one of the biggest brexit. this year, britain announced it would hold the june 23 referendum on union membership mark arkets reacted and a fierce debate began. >> the prime minister answering uestions from lawmakers in the house of commons. he's been making a case for take in the european union. is the brexit risk exaggerated? serious ms to be a risk. it is not a central case but we an argue for many months investors need to take notice. and is really uncertainty have a big impact on the market it was recognized and said they are going to make plans. c

i'll site your words, europe citizens want to know if europe's elites are capable of taking control of events and that go beyond them and terrify them. a few days later, in your state of the union address, you said you wanted a europe that protects european way of life and a europe that gives power to citizens. well, sir, let's measure your worth by your act. here, the french speaking belg belgians are trying to remove the course of removing rights from our citizens. there needs to be a clear decision about which services are public and which ought to be private. now, i think it's very important, also, to refer to conflicts between the treaty and european justice. will this take time? yes, it will take time. democracy takes time. we have traded with canada for centuries without satyr, so i don't think a few extra months will be so decisive. the rejection should not put an end to europe's trade policy. rather rather, it should give us a way to look at it. we need to ensure it's not just a question of maximizing the flows because that's not necessarily compatible with the environment. it

jury move a federal europe is finished. the communicative he and system as it is today has had its day. we need a more efficient europe, a are up focused on strategic priorities that will give back everything else to state authorities. mark: i assume this means fillon ,s the favorite against juppe and thereby in turn he is the favorite to be the next president. guest: fillon had 16 percentage points more than a lane juppe -- then a lane juppe -- than alain juppe. it would be logical if francois fillon won this publication. the firstmost like round of the presidential elections. shown he wille likely face the republican nominee in the runoff in the next election. vonnie: thank you. let's turn to berlin where on color merkel -- where angela -- saysays he will seek she will seek a fourth term. that will make it 16 years if she will win and serve out her full term. is that wise for any country? guest: that is a very good question. doesn't have any limits on the terms by the chancellor. she has several hurdles to overcome. about

we need a more political europe, a more efficient europe, a europe more focused on strategic prioriti that will give back everything else to state authorities. manus: caroline has more for us from paris. manage this quite spectacular comeback? musketeers. and i you have the brexit teer. >> absolutely. assistantstory of the becoming the new chief. sarkozy called him his assistant and now it looks like he has just alienated his former boss. for months and months, we saw francois fillon being the favorite. a lot has changed in the last two weeks. you had the election of donald trump in the u.s., the candidacy, and fillon dominated the last debate on television last week. so, this is how we saw this impressive comeback of francois fillon. last night, nicolas sarkozy got two votes from his former prime minister. >> i have high regards for j upe, but the political choices of francois hollande are closer to mine. voters neverhe to take the road of extremism. france deserves so much better. reporter: as we have seen with brexit, and the election of donald trump, you can also go wrong. this is

plans for missile defense in europe. the -- it was previously stated that this was to protect europe from an iranian nuclear missile. as that potentiality seems increasingly unlikely and as tensions with russia continue to escalate, there are some murm plerrings these sites should be reconfigured to make them applicable to a russian missile strike. however, the current plans wouldn't be able to protect from an intermediate continental ballistic missile, only an intermediate range missile. we have plans we're saying are to protect against iran from a varnishing iranian threat. we have a russian threat. are we not acknowledging that it's to protect russia for diplomatic reasons or is this is basically a solve to our european nato partners? if it's a solve, could there be a better way to reassure them than these missile defense sites that haven't yet proven their capability? >> i'll let the general respond to those three questions about the level and degree of response, perhaps military response, the role of china and the l

europe's focus turns to a series . whereot a charge tracking the next populist breakthrough might be. this is bloomberg. vonnie: it is time now for our global battle of the charts. we are taking a look at some of the most telling charts of the day. you can run the function featured at the bottom of your screen. kicking these off is bloomberg stoxx reporter, dani burger. >> i have been looking at one group of investors that does not like the rally, that is the bears. they have the most people experience in the most four years -- in the last four years. i have the goldman sachs basket and look what happened over this past week during this postelection rally. on the bottom i have the one week rate of change. at the bottom, this is a 10% increase. these heavily shorted stocks fall -- saw that last week. too happy,ot although other investors might be happy about this rally. #bcb.n look at that at g, vonnie: mark barton, beat that. if you want simplicity, i like to go for multi-lines and multi-colors, but i am keeping it sim

yes, this is also a trend in europe. we also have a german-american publicist, a member of the republican party in the united states. he says presidential election times have been rough throughout history, but we are witnessing a candidate who have hijacked an entire political movement to his own end. a few years ago, our guest was a correspondent in washington dc. she says german politics are not nearly as dirty as they are in the u.s., yet, but we are definitely on a worrying downward trajectory. alan, if we could start with you. is this really as bad as we are saying it is? are these the worst elections in tone and content in american history? >> i do not know about that. there have been some pretty bad elections. think of the populist movement in the 1920's. with- but it has to do issues. the point is, here is a guy who delegitimize the political class, wants to delegitimize free trade, and if you will, the liberal order, which up until the end of obama'ss presidency seemed set in stone. it is not gratuitous. it is n

president obama has said elwell to europe after his final tour of the continent. before saying goodbye to his post, chancellor merkel, and the human, he made europeans anxious. meanwhile, washington is bracing for some bruising presidential battles. the president-elect has picked a number of republican hardliners for the top jobs. now back to business news. a huge story in germany, those of us who thought the dieselgate scandal was over, we were wrong. >> is not over and still has consequences for employees. everyone knew it was coming. it was just a matter of time. volkswagen just announced it would cut up to 30,000 jobs. a move of this scale is unprecedented. the savings plan is a desperate attempt to recover from the famous dieselgate scandal. >> a great step forward is how volkswagen management described its plans for the future. it was negotiated within the german carmaker for months. now the direction is clear -- vw workers will bear the burden of the plans which will cost jobs. the pact for the future is the biggest reform program in our company's history.

president is that we need more europe. we need a europe that knows where it wants to go. and one thing that is clear to me is that we need a eurozone that is stronger. we have planned how we want to do that, and we want to be united in order to be heard. francine: are you concerned that a trump presidency means that europe will be heard less? you have four and porous the -- you have foreign policy where the u.s. is stronger with russia, china and the u.k. and you guys suffer in the middle? well, the european union is 500 million people, even after the brexit, 440 million people it is the most important single market in the world. the closest business partner of the united states. i'm not worried about that. we have to continue working together on that. , we have to do the negotiation which hasn't even started yet. so he must not put the cart in front of the horse. for the time k, the u.k. is part of the european union. francine: you will be in the negotiating room. what redlines are you setting in the negotiations with the u.k.? yes, definitely. we will be in that room. w

the -- europe just to blame for the slowdown of the academy? -- economy? >> so far it is driven by fiscal policy and it is urgently needed that the state reform economies so they become more effective and efficient and competitive. heather: this comes into the firing line, why is the bond buying program no longer justified in your opinion? it has an effect on the whole eurozone. >> with medicine, the dosage is key. we think that looking at inflation broadly and modern policies, it brings risks. risks for the banking system and financial stability, because there are more risks building up in the banks, given the long term. and the other issues governments are getting used to getting cheap funding. the ecb is buying government bonds so they do not reform or consolidate. in the long run you need to bring down debt in order to get sustainable growth. heather: let's look domestically. you have called for economic reform in germany. and the chancellor has said, there is always time for reform. what do you want to see the government do? >> germany sho

allegedly were tortured in poland, in lithuania , and other countries in europe. people tortured under the u.s. forces. really, this is a preliminary report. we do not believe any investigation has started. the prosecutors can ask the judge is to start an official investigation, and this is quite imminent and she will do so in the coming weeks. molly: that being said, is it likely we will see american citizens being indicted, even though washington has not joined the global court? >> exactly. it is cooperating with the courts, but it does not set its jurisdiction. , if, to have a law in place anyone ends up here, the u.s. is allowed to use any means necessary to take that person back to the united states. do not see that u.s. personnel will and appear in the hague, but this report serves as a document which names and shames governments and also publicizes the alleged crimes. i think the prosecutor really stresses here, the u.s. government to act upon itself, to investigate cases, and to bring to trial people who were probably responsible for these cases. it is a c

self-interest to make sure that you have a peaceful and friendly europe and not a hostile europe. and that is exactly the lesson the second world war. the american leadership realized that it is not in america's interest to have a hostile europe. you need friends on the eastern shores of the atlantic ocean. that's also the case today, in my opinion. this is the reason why it is in interest tolf uphold and develop nato. host: the book is called "the world elite." and came out in september. anders rasmussen is the author. just a few minutes left. houston, texas. russell is up, a democrat. >> hello. host: go ahead. anders is,ion for nato protects the atlantic. is there any chance of a merger with the pacific fleet to form a global group? thank you. >> first of all, nato is a regional organization. according to the treaty, you can only accept european countries as members of nato, except of course, for the u.s. and canada in north america. when it comes to the pacific region, i think we should go in the other direction and in my book, i suggest that the u.s. president uses his conveni

europe has been issues of human rights. it's not going to be as forceful [inaudible] elements of the first question. this is a global problem. it's very simple they rape as aa result of the activities in ireland then they said that the home office pretending that was the source of all the prophets of apple. when irelan ireland joint europd was to. they kept it secret until the new deal to pay 2.5%. they didn't say whether they were there. if they publicizethey publicizey operating in europe that would be a political scandal. when we bring the profits back to the united states pay should be taxed. he said if a tax that we can't. there is a fundamental flaw in the tax. but you have the taxation based on the economic opportunity products generated. it wasn't his home office with employees that generate a prof profit. they try to b tried to be shockt what happened. their celebratory and most people would argue that it was politically driven. can you speculate on what he would think would hav happen ine uk? >> the problem is the

of growth and inflation could increase also in europe. that case, it would be a normal thing to happen. matt: one of the results of the u.s. election has been a strong dollar. the euro last week had 10 consecutive days of declined and jean-claude trichet a mentioned he did not to bed -- did not like to see these violent moves. and does therned strength of the dollar handle your ability to be accommodated? central bankers in general don't like and that is still true today, abrupt movements. the exchange rate is not a target of our policies, so it is the market. it has consequences, of course, but it is not our target. i would be more concerned of the development in emerging countries and deceleration of growth they're which will affect world trade. mark: that was the ecb vice president. we are headed to the close, four minutes from the end of this thursday equity session. stocks are up today. have a look at the currency orders. it is a quiet day. the thanksgiving holiday, sterling is up against the dollar and the euro is up against the pou