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tv   Bloomberg Daybreak Europe  Bloomberg  November 29, 2016 1:00am-2:31am EST

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anna: oil slides. $47 aretreats below barrel. we are live in vienna. from the euphoria fades. italy concerns rise. trump euphoria fades. italy concerns arise. south korean president park embroiled in az and. she says she will let congress decide her future. he is seeking assurances that eu citizens living in london will not have to leave post-brexit.
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>> it would be inconceivable that you would be forced to leave london. i would say to you if you are in london, and you are originate from the eu that you're welcome here. ♪ anna: very warm welcome to bloomberg: daybreak gear. our flagship show here in london. let us talk about what we have seen in the banking stocks. theerday, the focus was on banking sector. investorsking many risk off in the asian section. the italian stocks are underperforming the rest of europe. yousef: a lovely charts here you can pull up on bloomberg.
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the brunt of the selling has been felt by rank stocks. leastally vulnerable, at as a proxy to overall sentiment. we are seeing some of the five-year credit default widening against it to date highs. in the spread between italian and german 10 year paper as well. anna: we need to bear in mind the context. if you take the same spread between italy and germany, and go back to 2012, we are nowhere near those levels. we are not talking about levels we saw even in february. while there is tension in the market, it is building towards the market. to see howcinating it is all priced in as the countdown goes on. anna: a lot to factor in including the latest political developments in south korea. , 47.80. they failed on monday, the opec
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meeting taking place. a 10 hour technical meeting. they failed to agree on specific production levels. yousef: look at what is happening with gold. by 0.25%.ownside at 112.ar-yen slightly above the flat line. work let us get the first -- first word bloomberg news. south korean president park says she will let the national assembly decide how much longer she will stay in office. her comments came as a televised address to the nation this morning. tell korea's first female president is embroiled in an influence peddling scandal. the next presidential election is scheduled for december 2017. donald trump has met with retired general david petraeus
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as senior officials in the transition team say that the ciaer director of the ca -- is being considered for secretary of state. mitt romney is said to meet donald trump later today amidst an extraordinary public lobbying campaign against him. hassouth african president dealt with the most serious challenge to his leadership yet. contingent of the ruling party national executive meeting failed to topple him. his presidency has been marred by scandals and policy missteps putting the nation's credit rating at risk. the u.k. will work to make sure that global markets make -- keep access. bloomberg, he also said the government will be focused on free trade in upcoming brexit negotiations.
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has beenvernment clear. theresa may has been clear that she wants the u.k. to remain the most passionate, convincing, and compelling country arguing for free trade around the world. that is where i see the future for the u.k. being passionate about free trade and having a fantastic future for the country. or says heon spain has received private assurances from the british government that european union citizens living in the capital will not be compelled to leave the country after brexit. he spoke with bloomberg. >> the argument that people could be used as bargaining chips is offensive. i have no doubt that what i been told by the theresa may government that it is inconceivable that you would be forced to leave london and that certainty is crucial. i am saying to you that if you are a londoner, that you are
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welcome here. haidi: global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . this is bloomberg. let us cross over to the markets in asia and get a feel for the fallout is like from the latest in south korea. julius sally has the story. juliette: have a look at the south korean index. it had been tracking fairly negative territory before the president spoke. the kospi is now in positive territory. up by 0.2%. quite a turnaround. holdingan wan is also on to gains. it has been higher for three sessions in a rope having quite a jump as well. all of this occurring in the last half hour or so since president park said she would allow parliament to decide her term. ,he rally in the korean wan
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higher by 0.2%. that is the longest running streak that we have seen -- three days of gains since september 23. you are also seeing bonds rise in south korea. the yield on the 10 year note down. been quite an extraordinary turnaround in the last half in terms of korean equities which had been tracking pretty flat for most of the session. elsewhere, you are seeing weakness coming through in hong kong. the nikkei closed lower, down by 0.2 verifying -- 025%. -- 0.25%. juliette saly in hong kong. and details on the south korean story and much more. oil is a big story. the foundations for in opec
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output deal are looking increasingly shaky with officials said to still be divided on production cuts. talks are being held before the meeting in vienna. so far, they have failed to bridge their differences. talk to you.ood to hours of talks. 10 hours of technical talks. are they in the -- are they any closer to an agreement? >> not closer to an agreement. 10 hours that yielded nothing concrete. game is thes poker best way to describe it with everyone keeping their cards close to their chest. it comes down to we are seeing iraq and iran increasingly not wanting to budge. putting them in opposition to the saudi's. over everyghting single barrel. it comes down to 7%.
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theians do not want to cut 7% that the saudi's are asking them to cut. until we can get them on the same page, it is looking likely that they will not be able to bridge a gap. -- they will need to agree on who will cut. is not just about barrels of oil. how does the complex political backdrop play into the discussions? baggage atpolitical its finest between these two countries. especially the iranians. yesterday in the state newspaper the iranian oil minister said this is the will of the iranian people and they demand that they should be able to pump at pre-sanction levels. he spoke to state tv before he got on the plane and he said that politics is complicating and opec deal and those able to raise output in past years will have to shoulder a bigger share
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of the cut and accept more responsibility. indirectly calling out the saudi's. to pump-- you were able at pre-sanction levels and we will not bear the burden of this. they are insisting that they maintain close to 4 million barrels a day. yousef: bloombergs anne-marie the yen a.from increased volatility of ahead of the opec meeting. below $47 a barrel. let us bring in lloyd's private banker, mark. we will bring you in with an amazing charge. this really shows the widening gap. notice the volatility. this is the highest we have seen this year. a lot of these investors hedging against price swings in either direction. where is this going to go at
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this meeting? are you upbeat at all that they can find some common ground? >> regarding the chart, what is happening is we have seen talks members to agree on cuts before. more incentive to find an agreement this time around. since the summer, inventory buildup has gone negative for the first time in a long while which also increases volatility in markets. the challenges are both inside and outside opec. russian oil production is at a post-soviet high. have anducers do not incentive to cut back production either. and in the u.s., where we have seen a significant reduction in production, the marginal costs of production are about $41 a barrel. they could ramp up production quickly should prices rise behind -- beyond the current trading price. in context of what the
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market is referring to their -- the importance of getting the non-opec members on board. non-opec production outpacing opec production in terms of the incremental buildup coming through oblique. why wees to the heart of need the opec members on one page but we need to get russia on board if the important thing is to get the deal. >> absolutely. i think it is a challenging discussion within opec. as anne-marie has just pointed has every incentive to increase production further. in saudi arabia is the biggest producer and has to take the other side which is tough to do at the moment given the challenges outside opec and i think it will be an interesting discussion tomorrow. don't the same time, i think we should get overly
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excited if there is an agreement. the last time they met in vienna, the same thing happened. they agreed and there was a lot of excitement but it quickly theorated because implementation of the agreement proved to be difficult. yousef: the market got it wrong twice this year. what happens to oil prices in either scenario? prices falling down to $20 a barrel. what is your outlook? andf we combine non-opec opec and look at the global production and global demand, we are still producing up of demand. that is very important. buildup going negative further which just started and it needs to run negative for at least a year or a year-and-a-half. to make a significant change. we could see supply going under demand globally. china is not a problem.
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us supply plot staying with for a little while longer. and takes us until the end of 2017 realistically with the current speed of inventory reduction in the current construct we have just discussed in terms of opec and non-opec production. anna: it seems this week that the saudi's started to put forward this other line of argument which means -- do we need to be talking about this cut if we see a stronger demand picture in the u.s.? are they reading too much into the victory of president-elect donald trump or you see that as a possible outcome? >> it is early days and is much as donald trump want to strengthen u.s. energy independence, what he wants will take quite a while to put in practice. i would not get overly excited. look at the facts. production, demand and with the behavior of areas producers
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inside and outside of opec. the supply glut will stay with us for a while longer at least for the next 12-18 months depending on demand. if the global economy continues to strengthen, that will happen a little sooner. if the economy is weakening next year, huge political uncertainty in europe around brexit and other topics, so then i think it will take a little longer, up to 18 months. yousef: marcus, there is still plenty to get through. come on the show, later this hour we will get the cfo who willf a join us for an exclusive interview here on debris. that will be 6:30 a.m. u.k. time. anna: highlights. french gdp at 9:30 a.m. london time. half an hour later, eurozone consumer confidence followed by
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german inflation at 1:00 p.m. u.k. time. half an hour after that, u.s. gdp. yousef: also to come, pricing in political risk. volatile could markets get before the key vote in italy? and high hopes. norway's oil industry is in during the worst downturn in a generation. we speak exclusively to the cfo as exporters try to force an agreement to lift prices. london's mayor says he will fight for a sensible and pragmatic brexit. we will bring you that interview during the show. stay tuned. this is bloomberg. ♪
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anna: very warm welcome back. 6:19 a.m. in london. by 0.2g seng is down
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percent. overall, the asian equities session fairly flat right now. samsung electronics will allocate 50% of cash flow to shareholder returns and conduct a major buyback from the end of january. it is also looking at creating a holding company structure. elliott management has been urging samsung to restructure and return more cash to shareholders. lufthansa has lost its latest bid to of her more strikes. the german court denied an injunction. highlights set to stop work today and all pilots will walk out tomorrow. it is heading to its longest ever industrial action which is caused almost four and have thousand flights. -- lufthansariff
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shares have declined. politicians should resist the call to regulate facebook is a media company. fake news spread on the social network affected the u.s. election results. they made the comments in an exclusive interview with bloomberg. >> the only restriction for facebook i think should be rule of law. what is against the constitution. what takes people to jail. that cannot be published on facebook. but i think the whole idea that they should have a super editor would turn facebook into a global media monopoly and that is going in the wrong direction from various points of view. juliette: the u.s. securities and exchange commission is investigating a deal that rio tinto booked on a mozambique called deal. the investigation is
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ongoing and is separate to an internal rio tinto review. -- that is learn your bloomberg business flash. yousef: italian citizens we'll head to the polls on sunday to vote in at -- in a referendum on the constitution. the prime minister once to reshape the senate so it can no longer block legislation indefinitely. loseso wants the senate to the power to call a vote of no-confidence in his aim is to improve political stability which has had more than xd government since world war ii. concerns over the potential has been felt in the last month. .talian lenders you can see that in this lovely chart right there.
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this italian story. we are seeing some disparity. the political risk is being reflected in the equity space and in italian stocks. read on how investors are interpreting political risk at the moment? >> the prime minister made some early reform efforts and has been quite successful. italy needs a lot of change. it has a huge volatility challenge on its hands and it has started to tackle that significantly. he is seen as credible. he is supported by the business establishment. what is mainly behind the widening spreads is the banking system has a number of issues including bad loans that amount to approximately 20% of gdp. heavily rely on ecb liquidity support.
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coming back to the prime italy is seeni, as the next milestone. have thelist protest upper hand on december 6 or will renzi be able to continue his reform program? he has been reasonably successful so far so i think it is important for him to continue. if not, there is not a likely successor. anna: how nervous do investors being we do not see renzi successful in the referendum? the widening italy-german 10 year spread. this is a year to date charge. ,f i took it out to five years we are not talking about levels of investor nervousness as measured by the cds spread as we saw back in 2000 -- back in
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2012. we are not talking about levels that we even saw in february of this year. our investors not nervous enough about what is happening in italy? >> they are right to be nervous to some extent. the renzi government has struggled. the five-star movement is gaining ground and that will be a very difficult thing to figure out where the government -- what the government would look like if the five-star government leads. it is the center of attention from the international perspective. the italian bond market is huge. it is not about the equity market or the short-term and therefore investors are mostly concerned about credit spreads moving out. learnedns and we have to not trust the polls, we could
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see the spreads going back to normal levels pretty quickly. if however he does not win the referendum, and he has already said he would resign. we will see if he follows through on that statement. if he does, we could see spreads widen further. yousef: how does the meeting on december 8 -- they will make a decision on their qa program and announce you details. how does the italian referendum and rising yields complicate this? >> mario draghi gave a speech theerday on his outlook for european economy and he focused ina lot on european banks that speech. i don't think that we would see immediate change on the eighth of december. he will take the election results into account. italy's banks today are heavily reliant on target to balances which will continue to feature
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whichever the a election results go. but it will be more important if it goes the other way. yousef: our guest will stay with us. opec objections. we will talk oil. we will speak exclusively to the cfo from statoil. ♪
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♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. yousef: 6:30 a.m. in london. you're looking at a live shot of the interior palace. dollar-yen, 112. slightly above the flat line. trump -- thed currency will strengthen to 98 per dollar. around tos are coming the fact that japan could be the place to be in in 2017. a new edition of daybreak is now available. some ofake a look at
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the stories. the cover story -- samsung. electronics giant has responded to shareholder calls. it will add at least one independent director next year, short of the three saw by elliott management. it will also use 50% of free cash flow in dividends. about a third of the special dividend that elliott wanted. our next story is opec. yousef: the organization has differences ine production cuts yesterday. the issue now goes to oil and -- oil opec ministers. the russian energy minister is saying that russia is ready to has to opec after the bloc consensus. it has no plans to visit on december 30 underscoring russia's position. you guys agree and we are happy to tag along. anna: oil price ticking down
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just a touch on the back of that news. down below $47. europeanfocusing on consumer prices. inflation in germany and spain decelerating in november. spanish -- has slowed. according to data do today. german price growth managed a 0.1% pace. yousef: let us check in on the markets. guy johnson has the latest or is looking forward to what we should watch out for. something along those lines. guy: let us talk about where we expect the markets to go. wti, fair i -- -- value. i am not seeing a big move. down less than 0.1%. us move on and talk about some of the other things.
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in focusms will be today. a strategy review coming out led by john parker. what he is suggesting is that they are sole supplier in building warships is not the way that the u.k. should proceed. let us move on and talk about cds and the banking sector. this is not good news. they are overtaking deutsche bank. at 224. trading telling you how difficult it is for the italian banks right now. this continuing focus on some of the big ones. a quick look at brent. this is where we are trading right now. 47.80. you get a deal, up. you don't, down. that is goldman's take. statoil's take.
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oil -- opec ministers in vienna tomorrow seeking a bid to agree on output cuts. a monk splits remain members with saudi arabia saying output is notg essential for crude to recover. the norwegian oil and gas giant, statoil. joins usf the business now live from paris for an exclusive interview. thank you so much for joining us here on daybreak. i want to ask you about your expectations around tomorrow. how hopeful are you? there is obviously a lot of interest about the meeting tomorrow. it is people talk about more likely that they will strike a deal than not. if it happens, you made the an
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uptick in prices. positiveeaction, a reaction. still, we think that the fundamentals of supply and demand work and we are heading towards a rebalancing. during 2017. we have seen two years in a row and 2017stment cuts may be the third year. we think that demand will outpace supply and we will see an uptick in prices and statoil is well-positioned for that turn. does a cut or a freeze need to be to have a in eating awayct at the inventory. 500e have seen examples of to a million if they reach an the intentions
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that they claim, you may see a positive reaction to the price. even a small increase in the current environment would be an indication that we will see higher prices going forward. anna: what are your expectations about price? do you agree with the iaea and others? the u.s. shale has flexibility. you can scale it up or down in terms of adjusting your production. we think that if you see an increase in the prices by 5%-10%, you might see activity picking up. -- thereere has been have been significant reductions in the capacity and the supply market.
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production catches up will probably take some time. but higher prices call for higher activity from the u.s. shale. if you're are looking at our own portfolio, we are well placed. we have drilled a lot of wells. some are not completed. we are ready to take benefits from an uptick in the prices. yousef: norway has declined to take part in the non-opec reduction cut. good or bad thing in your view? >> i'm sorry, could you repeat the question? norway has declined to take part in the non-opec production cuts -- is that good or bad? >> it is for the politicians to decide whether we take part in this. -- and asat we are you know, we are the biggest
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producer in norway. it will take some time to adjust the production. but we are prepared to do whatever the adjustments will be. and we are not dependent as a company on these changes to the production. we think we will have an uptick in the prices during the next year. we are significantly reducing the breakeven in our portfolio $41.above 70 two below so we are ready for an uptick and we are far more robust. anna: can i ask you about m&a strategy? the biggest deal you have done since 2011 has been in brazil. what is your appetite for further m&a and where would you do that? >> in the current market, we have not seen a lot of transactions.
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we have done some interesting things. you referred to the deal that we did in brazil this summer. the license. a world-class discovery with 700 -- with recoverable reserves. it was good timing and a decent price. we also did a swap. we have done a recent one in the bering sea. increasing our share. all of these are relatively smaller transactions. one of the challenges in the current market has to be for the seller and the buyer to agree on a price and a structure that reflects the current environment. yousef: in your third-quarter
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report, you warned that investment into capital infrastructure could fall further. as things stand now, are there more cuts to come? >> we have been able to reduce the capital expenditure as you are referring to, quite significantly due to would not only delaying projects and him proving the economics for them but we have seen significant --rovement not only on the but let me use one example, the drilling efficiency. where we drill 70% more meters per day. 40% less time on the wells. and 30% less cost. this is in just one area. we are also seeing better supplier rates and improved ways of working. these are the main reasons for us reducing the investment to
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our current level of $11 billion this year. as i said, in 2017, the industry has indicated moderate levels of investment. but statoil is still investing a lot in world-class projects. anna: thank you so much for your time. joining usoil exclusively live from paris. american multinationals could see chinese investments threatened if donald trump follows through on his pledge to get tough on the nations trade practices. u.s. corporate generating vital sales from china. you can see some of them listed on your screen. to cut he has promised into the u.s. trade deficit with beijing and has repeatedly labeled china as a currency manipulator. marcus from lloyds is still with us.
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how much is at risk here and how realistic is it that donald trump will follow through on some of the camp lane -- campaign pledges that he made given the amount of money that is at stake for american corporate in trade with china? >> i think there is some truth to the argument that china is weakening its currency. there is a huge series of liquidity checks going on to the banking system and that clearly weakens the currency and probably will continue to improve china's position in global trade. lessd trump has been aggressive after the election and we also need to see who will be part of his administration. it is going to be difficult to reverse some of the trade deals that have been made in the past. and therefore, if he does followthrough it will take a while. and i think it is too soon to say whether he can do that.
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let us talk a bit about this global trade seen. global trade is in trouble regardless of donald trump's presidential election victory. i have a chart here about container vessels being scrapped at a younger and younger age. this goes back seven years and looks at the average age. they were scrapped at 25 years but now we are scrapping vessels that are just seven years old. just another sign of the difficulty that the global trade story has been facing. >> it is correct. this is an element of the troubles that trait is facing. despite this, despite global -- growing less recently than it did in the recent past, it is still much harder -- much higher than it
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used to be. what is difficult is that global supply trains are being disaggregated and that is a difficult process and companies and arelenged by that fighting against it. danger inlso put into u.s. producers. and as we talk about donald trump, there is a limit as to what he can do without falling out significantly with u.s. producers. it is also a problem generally, globally, that globalization seems to have turned and there is political support for reducing trade even further. and globalization. and we can see more of that coming. anna: thank you very much. coming up, big issues in the big city. london's mayor says he will fight for a sensible and pragmatic brexit. tough times. traeger --
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bysef: a high profile crash maryland. we will look at the group's earnings. anna: high stakes. outputrabia says crude controls are a central. we head for the latest on opec. this is bloomberg. ♪
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yousef: 6:48 a.m. here in london. 1:48 a.m. in new york at a live shot of the big apple. futures are flat. we are wondering about the kinds of meetings donald trump has as he continues to fill up his future cabinet. let us talk about what is going on here in london. the mayor says he has received private assurances that european union citizens will not be forced to leave the country. of thenterpretation
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british public was to leave the eu and its structures. it is important that we disentangle that from prosperity. theree a situation where are a lot of uncertainties around the world. the u.s. residential election, in italy inum december, elections in france in march and may, german and dutch elections. we need to provide clarity. open-minded to be when it comes to attracting talent. >> what do you see in the blueprints of brexit? i am hopinge things is that when theresa may says she is trying to keep our cards
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close to her chest that she knows what is behind those cards and that lack of clarity leads investors and business people wondering and worried about whether there is a plan. what we need to do is reassure people that there is a plan. the example i gave during my understand-- i can why when you are going to buy a car, you do not disclose what is price you are able to pay. but you have to give the salesperson an idea of the car you want. we have to telegraph to the eu what our intentions are. that must mean access to the single market. the ability to attract talent. and my worry is that this confusion which leads to uncertainty which is the worst thing for a business person. anna: our next guest has focused on ringing together 1000 m&a
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professionals to look at the impact of brexit. david ferguson. marcus is also still with us. a very warm welcome to the program, david. we were just listening to the mayor of london talking about the importance of access to talent. our questions around talent and the ability to get talent something that your survey throws up? >> it is one of the concerns that our industry has. u.k. sses across the will they continue to have access to the talent necessary to grow. ofwth is what lies in front us right now as one of the most significant issues. yousef: talk about the details of the survey and the feedback you are getting in terms of london's position as a financial center and if that will last much longer. assembledsk force we
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comes on the heels of our initial report running up to the referendum. where we identified that there was a considerable threat to london's position as the financial, the leading financial community in the world and what role the u.k. would be able to play in affecting the growth across a broad range of industries. i think one of the greatest concerns that we have at present is whether the u.k. business leaders are going to be able to have control and affected over their future. this is what has brought this group together. our survey respondents told us quite clearly that they believe that business is at risk. , which isask force comprised of policy advisors, economists, corporate and finance leaders -- what they told us is that there has to be a plan and individual businesses have to envision their own plant and they will have to
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collaborate together with other business leaders and lobby government and lobby government quickly. anna: this goes to the heart of the lack of details we have around what rights it means. the mayor was saying that theresa may may have cards but we do not know what is on them. maybe the government has a better sense of what they are looking for but even if they told us, we don't know the endgame. we don't know what those across the channel are willing to offer. wherewill be a vacuum there is no certainty for a long time. -- if we reflect on the situation, you talk about the endgame -- there are three contracts the u.k. is looking to negotiate with the european union. one about the departure. the u.k. still wants to be involved in some european projects and institutions. decided has already that it wants to stay within the
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defense agency. there needs to be a future agreement which is what m&a is all about. we need to know what the long-term relationship with the eu will be. and also, if we reflect on how the negotiations will unfold, at the moment, there is a lot of discussion going on within the u.k. the u.k. needs to form a unified position before going into the negotiation's, triggering article 50. and negotiations with the eu and thereafter. it doesn't matter what is on theresa may's cards right now. >> preparation is still going on. if we compare the potential brexit negotiations with other trade arrangements that have been made in very beneficial circumstances. for example, tpp. a countries agreed right at the
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start of what to do at the end of the negotiations, it still took six years and 30,000 people were involved. pages. it takes a long time. and the starting point of this situation is slightly more challenging. yousef: we have had a lot of movers and shakers on this set in the last few weeks. amsterdam, frankfurt. and others. and new york as well across the atlantic. what have you been hearing from respondents and what are the trends? we know that the financial institutions are hedging. they have taken a hit and the industry as a whole in terms of m&a and financial activity. new york is coming up extremely high in the rankings when we couldt what is and what
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the next financial center of the world be. and perhaps our most recent electoral results would suggest that the market is in favor of that. what is your perspective? >> you are referring to the u.s. elections and donald trump has said he would want to look at recent regulations of financial services and potentially look at simplifying them. at u.s. banks operating in the u.s. to have a better environment. --that were to happen whatever happens outside of the u.s., it would strengthen financial institutions within the u.s. yousef: it is difficult to bring this conversation to a stop. to our guestsu including david ferguson and markets. anna: the opec impasse.
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ministers seem increasingly unlikely to agree to an output deal. live to vienna. it seems the russians will not be there. can we get the opec members on one page? this is bloomberg. ♪
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♪ >> 47 bucks a barrel. the oil minister says he has no plan to visit for tomorrow's opec meeting. agents stock stalls. the italian bank stalks close at its lowest level taking it to 52%. south korea's president says she's willing to resign after being embroiled in an influence peddling scandal. korean wan rises. khan says mayor sadik
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they will not have to leave post britain brexit. >> it's inconceivable that you would be forced to leave london. and that certainly is crucial. i'm saying to you if you're a londoner that you're welcome here and you're always going to be welcome here. >> welcome to "bloomberg daybreak." ite you receive joined by anna edwards. let's check in on the futures. anna: a lot the to talk about within that. a lot being reflected. -year seeing the euro stocks potentially up a little bit. some of the other markets look a little weaker. not expecting enormous changes.
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've been talking a lot about italy. they're lagging european stocks. we'll continue to revisit that. it's a big day for oil. downward pressure once again. youseff: currently down 1%. again, it looks like they're struggling to reach an agree. we'll see if they'll be able to hash something out. we've had warn thags prices could fool $20 a barret. 1,5800. re coming up $ have add zinc or lead. it was down yesterday -- down today but yesterday we saw the biggest increase from two months
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that concern around italy, that seems to be grouping those who ight find solis in all the glitters. youseff: we're keeping a close eye on those bond spreads. et's bring up the board. ann delmbings a: unchanged. 0-21% on the german -- >> saved by the board. anna: the south korean president says she's willing to resign that's after becoming embroiled in an insurance peddling scandal. she apologized ifer the third time over the controversy and asked them to decide the power, some politicians from her own party has been pushing for her immovement. that parliament has not set a specific plan for her future.
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>> donald trump has met with retired general david petraeus. they said the former c.i.a. director is being considered for secretary of state among in opening finding about who to pick for the mosts. former massachusetts governor mitt romney is set to meet trump later today among extraordinary lobbying company against him. >> jake ozuna has survived the most serious leadership against him yet. during the meeting of the national economic economy. this according to two members of the committee who were at the meeting. they have been marred by scandals an missteps that have weighed him around and put the nation's credit rating at risk. keeping.k. will work on
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the system. the government will be focused on free trade and upcoming brexit negotiations. >> i think the government has been clear. the mayor has been absolutely clear she wants the u.k. to remain the most passionate, vincing and compelling country arguing for free trade around the world. that's where i see the u.k.'s future. a global person being passionate about free trade and have a fantastic trade in the future for this country. >> citizens living in the capital ll not be compelled to leave the country. but he folk bloomberg. >> people can be used as bothering chips, as offenses. it's t no told that inconceivable that you would be forced to leave london.
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that certainty is crucial. if you're a londoner, you're welcome here and you're always going to be welcome here. anna: global news powered by 26 journalists you can find most stories on bloodberg broadcast. let's check in from the live market action coming from asia. the asian section and things coming out of south korea? >> absolutely. we've seen the index close. we did have a little bit of a strike. that was an hour before the index closed. and president pack said she will allow parliament to decide her fate. but markets have taken it in their trade. we did see a lot of outward
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trajecktary coming through from cosmetic stocks that cosmetics stocks in korea have been oversold of late. maybe they're seeing the shanghai close high by .2. a little bit of a switch out of hong kong today and you're seeing mixed movement out of southeast asia. and then japanese equities unable to make it lucky 13. the topics and the any kay both losing in the -- that long running strain had bane higher. that, of course, as we started to say the yen strengthen along the wear. this is the korean also having a few section. you can certainly see that big movement it that had. when we had president back speaking, they've been a little bit of movement coming through. now actually weakening a little
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bit against the dollar. so interesting turnaround of the trade. >> salley is joins us from hong kong. >> russia is ready to talk to o bam one once the group reaches a con sensation. >> but the foundation of the deals are looking increaseably shaky. let's get more on the story. it for been covering us. and o peck's meeting. > russia will not be attending youseff. but he is meeting with two o peck initials morning. the algerian oil minister as well as the vns oil minister to speak with them. it's clear russia wants some sort of a deal and they're going to take their cue from the hotel. bull time-out we've heard from novak and vladimir putin
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himself. they do not want to count. yeds he was on the found with iran's rohani. and this has gone to the top level of officials. if they want to see stablization is in the oil mark. it's clear that he wants to see that. but they're not going to do anything until they hear from opac. and when they decide on a deal. >> we had this long technical meeting yesterday finding this sticking points around who exactly is going produce what? >> yeah, this basically comes down to standoff between saudis and the iranians. making it clear that they are not desperate for a deal. whatever the iranians thought that they would with the win the cost. that es not true. and the iranians are sticking to their opponent that they will not qut. >> they said it's the will of the people to get back to --
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before pumping it of 4 million a day. >> journalists are laughing because it feels like the u.s. election. we have the iranian tweeting that they will not reach a quota. do you vu these two countries -- but they refuse to do something. very so when two of them come to a middle ground they won't be able to get a job and by wednesday. it will be interesting to see, tech hours of technical talk yielded nothing today. ut it will be interesting to hear them. >> let's widen time-out conversation. steve smith trying to put j.p. morgan. >> oil then in focused. 10 hours of technical park. >> the market is cautious. they've been call off guard in.
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earlier this year. how likely are we that we're goifpk see an agreement here? >> i think we're witnessing possessions. >> taking, taking, take. >> we have this news instrument when "people" negotiate by twitter. i'm sorry that winner is out there. you just have to look in everybody's interest. inner you find out a point that actually -- and then you celt on that. i think the idea that there were no russian elements. that's just a cute piece of lokes. >> we were talking in the l.a.x. hour. about o pick. at times where market seems to be fix saided by the oil prices. very much the story. which he's at. >> i then the. they would you like to affect it. >> price formation. they can start ending me thinths
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about , but if you think that. 50's. hly 50, just mid were we're trying to handle paul ryan. >> an agreement might not necessarily be essentially session. been overminister has similar views. bring some oil out of the market to bring prices that's availability to oil proosers around the world. >> if you think about the impact. and said, and i think that contributed to balancing the market. wurn of the things is to find the balance pro-sets. and trying to avoid.
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>> where does this level your energy strategy. i mean, looking for good times together. what distracts oil companies and their rivals. >> well, i mean, if you split it off to pops, you get the russian and the down stream. and the all majors clearly you know, that's been a luge rebound in recall of those stock prices. from the old may down. the sashe of that yield lad given a good description. >> a lot of reba lansing has been taking place. the free generation look as reat deal so yes, of course. >> as yield play. >> how oles are you positioning
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yours. talk about your investment themes giving up the meeting of the e.c.b. rising yield and donald trump factor. this is a lot to get through, isn't it? >>s the. by far the biggest changes has taken place. there oar been change. >> now, there are two, there are lots of things. that key, now, one is feeds into nominal grave. it hurrys that much. we know this. we know that companies have costs that. were skibtly to profit ex-saysed expectations so on that side you had been. this her a beneficiary of financial. i think it's sligely different.
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go to the. no, they they just bargains. nd you know, that sensitive. but broadly speaking. you'll -- anne: we'll return on that conversation. of energy h chairman panthers. come up. find why he calls this inconceivable.
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>> it's 7:18 a.m. here in london. clear skies. really, really cold overnight. rrently sterling holding a
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1.3407. it did break after the c.b.i. currently about 1.24 slightly below the flat light. >> thank you. london's mayor says he's received private assurances that they will not be compelled to leave the country after brexit. he was speaking with bloomberg. i think it's offensive. i've got no doubt at all and i've been told that it's inconceivable that you would be forced to leave london and that certainly is crucial. i'm saying to you if you're a londoner that you're welcome here. >> samsung electronics will allocate 50% of cash flow. contest as major buyback from the end of january.
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it's look at creating a holding structure and leasing international clanges. they've been urging samsung to restructure and share more cash. sa, the k -- lufthan judge denies its ks. thousand and .5 hay may have cost the town 45 million euros. springer o. of axel said politicians to resist goals. it despite concerns that affected the result. s. and an in exclusive interview.
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let's take a look. >> the only restriction for it should have be the rule of law. what brings people into jail. that cannot be published on facebook. but i think they should have a per editor into a globe -- global media direction. >> and that's your bloomberg business flash. thanks so much. now italian citizens will head to the polls on sunday to vote in a referendum on the country's constitution. renzi wants to reshape the senate so that kit no longer get it and get consulted on fewer masms. he wants the snass to lose the bower. the aa between. pair.has had more than 60 >> he is reporting that ramsey
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is considering resigning after the >> ren dom. a aper said she would form new government. concerns over the potential fallout from the him. over the pass posts. i have a very interesting charts. .oth feckcle also yesterday taking ilts 2016 slump to 52%. >> head of european second tate. we're watching some of the freads arrived. we're looking at c.d.s. for the individual banks themselves. we're looking at exy lights. >> don't dorm more and yet we're not a levels that we have seen when invest gators are helping
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her. >> there are two different things at the moment. first is the referendum and we'll see who how that turnses on sunday. he second is the intent to recapitalize. >> we've seen a rolling weekend after buying thanks in the next three to four year. in which this needs to be done. it's not as insoluble problem as it appears to be. the advantage would be -- be if size of the problem. a very simple chart. >> he mentioned. the nonperformance goal is tonight. those are on the rise. >> coming down -- next of the friday loug. as far as we can tells it looks like they had been marked ooment
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se. you you're going to say if hi falls back needly. thnd so that's, you know, that's the problem that we face. that's what they're trying to address. the drawing up of atlantic has gone away somewhere. spr here's a question question that a lot of venders. european vendors that's stale plain we've been pursuing. even though he's some of the italian number. something that should be at the top if anybody strengths. it's very clear. i'm not created quafment there are some environmentals and went back.
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problem. hbo is one of thoses. but again, we now have michigan more visibility. we know more of lees. that's going to come. the e.c.p. watching very closely. as are any investors what you do you see the. adam their. and if they still need to in december or whether tape pers will be in the hoe rye zone. >> weck talking about . were r one of the things that she would have them as fast as men. his rules the creep have. that pull of exerts in the last few months. they could talk to them to talk about the
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when they told sper >> when i talk about the quarterback. nd how about that roles off. they're going to fall asleep. he says it's going to be sbreasting whether. my sun is that they will -- they may tabe up. and mot throughout tomorrow. even oh, that's the steven m.a.c..com. we will continue the conversation with steven on bloomberg radio daybreak. >> we are life on lyndon. >> let's bring you up to speak. you need to be aware that we are all monetarily sbs columbia right now. we are going to leave it to our team on the european open. daybreak, europe. the europe open is. it's a bit of a cap chifing.
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and u.s. is old there. 's the light p. stay stay tuned for much more. this is bloomberg.
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>> good morning. you're watching "the european open." i'm guy johnson along matt miller in berlin. what are we watching? crude falls. o peck slips. o peck fails to -- opec slips. opec fails. candals taking their toll now. what does it mean inner that economy, korea? should b.a. system

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