european markets mixed this morning. all about the jobs. u.s. releases it payrolls report in just a few hours. the last before this month's crucial fed meeting. and oil output. a volatile week for brent as on production policy. we are live from vienna. welcome to "the pulse" live from

bloomberg's european headquarters in london. i manus cranny. francine lacqua is in paris at the climate summit. fran, good day to you. what is going on? manus, one of, the big events -- these are major leaders trying to find a solution, an agreement. there is still disagreement on financing. we are not sure about this $100 billion question hanging over the climate change talks. we don't know whether to degrees will be in the treaty. here, we will be speaking to boris johnson and the ceo of l'oreal. manus: look forward to it. always entertaining when you get boris johnson in one place. francine lacqua, my cohost in paris. it is jobs day in the u.s. what a 24 hours we have had. it is one of the last before this months all important

federal reserve meeting. analysts will be looking for any clues as to whether it strengthens or weakens the case for the rate hike. lefta day after the ecb many underwhelmed. how are the markets taking this? equities, bonds, and currencies all made dramatic moves yesterday. mark: the hangover lingers from the draghi disappointment. have a look at the euro-dollar chart. this is the amount of days that matters because yesterday the euro rose its most since march 2009, jumping by over 3%. you will see the little figure there over the last few days. it is up 2.5%. the market was very short going into the ecb meeting. look at the stoxx 600. it also fell yesterday. every industry group on the

stoxx 600 fell yesterday. in two days, it is down by 3.4%. look at the german two-year bund yield. yesterday, the yield on the german two-year rose the most since 2011, jumping by 20 basis points. upthe last two days, we are by 17 basis points. yields are coming down a little bit, but the market, whether it is currencies, bonds, or stocks, was disappointed with draghi. manus: the underwhelm are. that is one phrase for him. a big day for the states with jobs day a little later in the day after yesterday's big ecb day as mark was saying. it is a tale of divergence for janet yellen and mario draghi. comparison with september 2015, macroeconomic projections, the outlook for

inflation has been revised down slightly. the labor market coupled with my judgment that long-term inflationary expectations remain reasonably well-anchored serve to bolster my confidence in a return of inflation to 2% as the dis-inflationary effects of declines and energy and import prices wayne. mr. draghi: we are doing more because it works, not because it fails. something consolidate that has been a success. ms. yellen: moore the fomc to delay the start of policy normalization for too long, we will likely have to tighten toicy relatively abruptly keep the economy from significantly overshooting both of our goals. johnny,et's bring in chief investment officer at axis investment management.

i want to just show this to you. i think this is a great picture. grinch, ruins the santa rally. he did demolish the stock rally. just presumed to much? >> i think so. i think that is well put. so negative on the way mario draghi handled it. he's managing a group of countries which are incongruence. they are in a different place to where the u.s. is in terms of their economic cycle. i think he has to keep some powder dry in case the measures he takes don't work. there's a lot of expectation that was put on the ecb, and also, the long dollar trade was extremely crowded. when people focus on the way the euro-dollar moved, it was due an

online anyway. there was a concentrated bullish dollar sentiment in the market. manus: my question, and presumably a question that many of our audience will be asking this morning, the bond markets, nearly $270 billion was wiped off, mostly at the short end to be fair. is this the tawdry speculative ,rowd that's been washed out and i count myself in that historically, or is this a real capitulation? >> i don't think it is a capitulation at all. the bond market has had a few emotional moments over the years. this is just another one. i think it will normalize. i don't notice really any real comic today -- real panic today.

i didn't really sense liquidation or capitulation in any asset class. even the u.s. 10-year. clearly there was a lot of moving. but i didn't sense that people thought it was something that was going to endure to such a point that people would change their views. i also have incensed a real drastic shift in asset allocation. manus: he's kept his powder dry, the ecb has kept to their powder dry. the presumption is we are going to be talking about this almost ad nauseum. will the fx market the less presumptuous of getting back towards parity? will the bond market the less presumptuous about trading below -0.3%. shift in our

perspective of what can be delivered by the ecb. has more tools in its full box and it wanted to keep some available. i don't think he did a terribly bad job. he's going to get a lot of bad press. he has a lovely picture. you take thely, if dollar in isolation, the dollar trend has been very strong for some time. i suspect it will continue to remain so. but these things don't go in straight lines. would i expect euro to reach parity? i think the odds are that it will. but you might see 1.10 before we get to parity. manus: you think 1.10 on a relief rally? >> quite probably. you had a fairly bound euro for a wild. i noticed a lot of stocks were within a few minutes of when the announcement came out.

a lot of people were knocked out of the market straightaway without even knowing. manus: the other thing is this. to a certain next then, we saw a relief for swedes, for norway, and for the swiss. this story is a little bit more interesting. they have been battered, literally inch for inch, by the ecb. dollar-swiss was actually at 1.03, 1.04. it went below one yesterday. manus: and on euro-swiss, that -- again, you are seeing the euro continued to rise and the swiss continue to fall. this must be a release to the fmv. >> i don't think they've covered themselves in glory with the way they handled the pay and the amount of carnage they caused.

we are back to where we started to a large degree. i don't think their policy and the way they've handled the way they've controlled their currency has got any merit at all. manus: johnny, stay with me. we are going across to ryan chilcote in vienna. we are looking at brent trading 43.89. ryan, take it away. we are inside the opec meeting. we have a few minutes in here. we are joined by the qatari oil minister. thank you for talking to us. one of the things that is going to be discussed in this room is the strategy that opec embarked whereby, letar ago production rise if it has to, squeeze out those high cost producers with the goal of the price rising at some point. a lot of your colleagues say it is not working. what do you think? working, butgy is

the only question remaining is when the market is going to be balanced between supply and demand. we think we are heading towards the right direction. there's a huge drop in investment. it will manifest itself through productionon in oil and the signs of reduction is already there. we can see it happening. the market is going to balance itself. the question is when, and what factors would accelerate such a thing. i think one of the most important factors is the economy of the world, how the economy is going to perform. a lot of concern about chinese manufacturing, u.s. manufacturing, growth concerns. >> generally, the economy of the world is the main factor. depends on how the

performance of the major economies in the world -- that will accelerate an already started process of dropping the least efficient producers gradually from the market. ryan: we are not going to see a cut at this meeting, are we? >> we are going to me shortly. forces,look at all the the bearish and bullish factors, and we will see also some of the important factors dominating the loyal price. take the decisions accordingly. but i can tell you opec is watching the developments and there is a good degree of understanding of each other's points. they understand, not only

understand, but they show solidarity. ryan: we heard from a golf delegate yesterday that the saudi's, other countries in the gulf, would be prepared to cut if other countries inside the cartel and outside of opec were also prepared to cut. and people say that is a red herring, an offer that the saudi's and gulf countries can make because you know you don't have to make good on it. what do you say to that? >> i can't speak for others, but , thell see the report response, and the analysis of all countries. they will have the time to see and interject and get their view clearly delineated to the meeting. excellent degree of understanding.

analysis will come not only from the secretariat, but from the countries, and we will take the necessary decisions in accordance ryan:. ryan: minister, thank you very much for your time. before i go, i want to show you a little bit of the madness in this room. you've got the 12 opec oil ministers here. they control 40% of the world's output. it is highly unlikely they are going to agree to a production cut at this meeting, but there is going to be a very heated discussion inside the room. there are going to be a lot of countries that say, if not at this meeting, let's talk about it seriously at the next one. ryan, well done on getting the qatari oil minister on record talking about a good level of understanding in terms of opec and the level of solidarity.

ryan chilcote inside the opec meeting, bringing you a live comment from the qataris. what is the position with the saudi's? the strategy is for keeping the status quo. well done. let's bring my guest back into the conversation. when you listen to the conversation, i think there is way he was going to admit to ryan that opec was going to make a cut. this is a strategy which they are all holding firm on despite g[c say. non- >> they can't afford it. the structureh they have in place is, even if anyone makes an undertaking, it is hard to police it. i don't sense there's going to be a lot of commitment to a cut. they all sneak around and mess about a little bit. it is all a bit wishy-washy. i don't expect anything concrete to come out.

i wouldn't be surprised if anyone make any commitment. saudi'st that with domestic expenditure commitments, they are not going to be cutting. johnny, thank you very much. a couple breaking lines coming across. this is the saudi oil minister speaking. he is saying that opec is willing to cooperate with anyone to stabilize the market. the saudi's are not worried about spare capacity because of market surplus. this is the "bloomberg first word" headlines. the qataris have a good level of understanding with their colleagues. ryan chilcote in vienna with the qatari oil minister. recoveries inhe the u.s. and u.k. economies affect one of the world's biggest makers of consumer home

cleaning products. you've got them in your cupboard, in your bathroom, in your kitchen. the ceo joins me next. ♪

manus: welcome back. this is "the pulse." yesterday's stimulus measures by

the ecb left many investors disappointed. all european indices closed lower. among the casualties was reckitt benckiser. the company, one of the world's biggest makers of consumer health and home cleaning products, recently recorded its steepest quarterly revenue increase in five years. it raised its full-year outlook. the ceo, rakesh kapoor, joins me now. sort of a double-sided introduction. you upgraded the view for the business. sales are good. what are the benchmark targets you set for the business? you said, we are going to produce 50% of our revenue from p.m. will you deliver that target in 2015? when can we expect you to hit this metric? rakesh: we set a couple of targets. the first one was that we wanted to see our business in health and hygiene become nearly three

fourths of the total company by 2016. we are well ahead of that target. we are doing much better. wasother thing we had said that we want to see 50% of our total business in emerging markets by 2016. we've seen that emerging markets have gone through a bumpy ride. not everywhere in the world, but most parts of emerging markets. that is also the financial impact of balances. if you look at the russian market or the brazilian market, three to five years ago, there was a very significant impact. meetingot going to be our 50% target this year. manus: that is one slippage. taubman recently made a

comment and said emerging markets are fully priced for the federal reserve to act and it is the obsession of markets today. do you think emerging markets are priced for a rate hike from the u.s.? rakesh: i don't think they are priced for rate hikes, but my point on emerging markets is that most companies, most people are simply underestimating the long-term of emerging markets. they get very gung ho or depressed about what happens in the daily headlines of the emerging markets and overlook the long-term impact. as somebody who has grown up in emerging markets, i have a long-term view. i don't want to consider the short-term impact of any fed rate hike. we are very focused on the long-term value creation. we will ignore the headlines of what happens to the fed hikes. manus: a ceo with a focus in

mind. the other consideration for the marketplace when they look at your stock is, when are you going to do a deal? it has been 2.5 years. moved to do aot deal so far? must -- there is no target that says we must do a deal a year or a week. the focus of the people in my company is to wake up and drive organic growth opportunities, which there are plenty of. of strongiven a lot organic growth. we also know that we operate in an industry which has significant opportunities for m&a. take consumer health as an example. have less companies than 30% of the consumer market. there is a lot of fragmentation.

when opportunities come for fragmentation, we will certainly look at those and see whether they can create value for us. manus: pfizer has a deal that is yet to close. a lot of people expect this will be a prime opportunity for you. within that family, what appeals? if i was to say to you, the perfect paradigm to get an opportunity, what would it be? rakesh: first of all, the deal has not been done. the ink has not dried on the deal. but also, i think pfizer has been very clear to announce that they are going to do an internal reorganization and split their business. it is very premature to think about what that would mean in terms of their consumer health aspirations. timenk there's a lot of between now and 2018 for rb to

pursue its ambitions. manus: is 50% achievable on a continuity basis? you beat in the last quarter. we don't set a target for three to five years. we tell the market a year at a time how we see things. our expectation is to meet our target. if we can beat them, that is interesting and very good. three't want to project to five years in terms of where the growth will be. the expectation will be that we want to outperform our markets. our history of long-term value creation is built on the ability to outperform competition, outperform the markets, and create essential growth and essential value. manus: i love it on the website, the power brands. is there a billion euro producer in the power brands family?

rakesh: we do have million-dollar brands in our power brands family. manus: which ones are those? own.h: you can make your i'm sure you will be right. the important thing is not to think about brand size as that i mention for value. sometimes, brands can have long-term opportunities for growth. shoal haske demonstrated fantastic opportunity for incremental growth. absolute growth rates are sometimes quite material even in smaller brands. we want to make sure that we can focus on these brands, irrespective of whether one is a billion-dollar brand or not, and create growth and value. manus: thank you so much for joining us here. we will get deep in terms of the billion-dollar brands next time. the ceo of reckitt benckiser.

a little bit of breaking news. we will have the latest from opec. pressure isn't all on saudi for the output cuts. over to you, my colleagues. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. manus: welcome back to "the pulse." i'm manus cranny. these are the top headlines. saudi arabia says it is not worried about oil prices falling meeter as opec delegates in vienna to decide on output. saudi's oil minister says the country is willing to cooperate with anyone to stabilize the markets. the euro has slid back against the dollar after its biggest one-day jump since 2009 as

investors shift their attention to today's u.s. payrolls number. that may boost the likelihood of a fed rate hike this month. surged 3%urrency against the dollar after ecb plans fell short of some traders' expectations. drinkers are suing to block ab inbev's takeover of sab miller, saying the deal would force them to pay more for lower quality. they argue that the acquisition would create a monopoly in the beer market. a violation of u.s. antitrust law. up to speed with the markets with mark barton. if we look at the equity markets, the euro rallied, the bond markets had billions wiped off. how do we stand? mark: euro is a little lower than it was yesterday, which

isn't a surprise. we had a big move. 3.1%. biggest move since march 2009. the perception was that draghi and his colleagues didn't deliver. the market was very short euro ahead of the meeting. it is coming down today. look at the two-day sharp. still a big leap. pity poor robin brooks. he did say yesterday the euro would move 3%, but mr. brooks got the direction wrong. he thought it would move downwards to 1.03. it moved upwards to 1.09. let's have a look at the stoxx 600, which is falling for a second day. yesterday,3.1% biggest drop in three months. all 19 industry groups fell.

a big disappointment was the deposit rate cut. 10 basis points, yes, but it wasn't enough. the monthly rate of bond purchases, 60 million euros, stayed unchanged. the market demanded more. 3.4%toxx 600 is down by over two days. look at the german 10-year yield. these yields, especially short-term yields, have fallen to record lows in finland, spain, germany just to mention three eurozone nations. rising by 20 basis points. it's coming down a couple basis points today. the two-they trend is very much your friend. the price of crude. opec will deliberate and decide today on output. it seems as if output will be kept unchanged despite protestations from the likes of venezuela and ecuador.

they have spoken a few minutes ago. crude has risen by 3.7% in the of a cut,ays on hopes but it seems unlikely. they say the pressure isn't all on the saudi's. demand is likely to rise. hopesrket is rising on there will be something. maybe there will be a small acknowledgment of it. manus: hope lives eternal. mark barton on the markets for us. back into thehnny conversation. he's chief investment officer at access investment. from the looks of things, we are expecting 200,000 jobs today. achieving theto data that yellen wants, it's pretty locked in. it would have to be quite dramatic to alter the path to a

hike. reasonable, i suppose. i'm not sure the fed would react to a data point in isolation. they have access to greater data in the back room than is published on a quarterly basis. it would have to be catastrophic for anyone to scratch their heads. manus: in her testimony yesterday, she referred to the domestic situation. that seems to have been a sentiment. they backtracked from those global concerns. it seems to be all about the domestic decision. >> i think the domestic decision is ok. i think they have ticked their own boxes to give themselves the latitude for one rate rise. the trajectory in the duration of travel is probably more significant, especially when you qe in europe up and japan versus rate rises in

the u.s. about divergence, that is real divergence. >> that is the strategic key. manus: so do we look at that as a model for where we go in 2016? >> that is going to be important. which is more significant? in our view, the rate rise in the u.s. has more global impact. is that the u.s. trajectory is going to be much more cautious than even the market considers. you will get one rate rise in december or early in the year and possibly a small one by the end of 2016. manus: the other comment that came through, i caught up with stephen from bnp. goldman, what a day for them yesterday. >> they've had an entertaining

time of late. pitched that the dollar-brand is going to drop over the next few months. they are making some quite heroic calls. they sometimes go wrong. the dollar-ran was eight. then it was 12. now it is 14. manus: a hint of caution. >> investment banks generally are late to the game, late to the party. manus: behind the curve. let's talk about that dollar rally. we are short europe. we've had this run-up to 1.09. what they were saying this morning is, janet yellen is quite appreciative of this run-up because it means that her news conference won't be all

about the dollar. if that is the case, that the dollar steps back a little bit, it gives her reprieve. >> very true. the fact that the dollar has backed down a little bit means there's one more -- one less thing for her to bart questions off. manus: johnny, good to have you with me. johnnyvestment cio mehta. next, we are live to paris where my coanchor, ms. madam th lacqua, is standing by. ♪

manus: welcome back. this is "the pulse." here are some of our top headlines. saudi arabia says it is not worried about oil prices falling further as opec delegates meet in vienna to decide a policy. saudi oil minister says the country is willing to cooperate with anyone to stabilize the market. theeuro has slipped against dollar after its biggest one-they jump since 2009 as investors shift their attention to today's u.s. payrolls report that may boost the likelihood of a fed hike this month. the single currency surged 3.1% versus the dollar yesterday after the ecb easing plans fell

short of some traders' expectations. bloomberg sources say uber is looking to raise as much as $2.1 billion in a financing round that would value the company at $62.5 billion. ger market cap then barclays in the u.k. let's take you back to the climate summit in paris. francine lacqua is there with tom keene. thank you so much, manus. we are excited to be here. we have some great exclusive interviews. aboute are talking cities. 70% of co2 emissions come from cities. tom: i love the divers and hear from all the important things. 45 minutes, half-an-hour north .f paris on the river the background brings it more local. it is about the city.

francine: 70% of the population who live in cities around the world -- tom: i did not expect the eclecticism of the audience we saw today. francine: we have a great guest. tom: wonderful guest. his leadership in economics has -- we will get to mario draghi in a minute. there's been a shift of curiosity. the professor joins us right now. i want to cut right to the debate chase. how are you going to convince republicans to migrate over to a common ground? >> they are going to look at the opinion polls in the u.s. and come to understand that this is where the political center is right now. it hasn't happened on capitol hill, but when you see the most

recent opinion surveys, they are showing 70% of americans say, we want climate action. they are showing the overwhelming portion of americans saying climate change is real and we should be doing something about it. i think the republicans will have to move. president obama has been looking at focus groups, opening in surveys. he knows this is the sweet spot of politics. the republican position becomes increasingly dangerous, not only in the global context, but also in the domestic win the election context. francine: are we going to get an agreement in paris? i'm thinking financing. do we need the two-degree rule put in and will we find a price for carbon? as the margins a breakdown on the one side and a really strong agreement on the

other, we are going to be somewhere down the middle. there is no time or pace for the really tough agreement. when you have the president of the united states basically maneuvering so that he doesn't have to put the signed agreement back to the senate, you know that you can't go as far as the rest of the world would like to go. on the other hand, i think there is a will not to let this whole thing crack. this meeting is five years in the making. this isn't just the last six months. five years, we've been talking about this week. if we miss this one, there is no backstop. tom: i'm curious about this. at the institute writing about snowpack, we see the drama of greenland melting, we see polar bears dying on islands. makes for great media moments. how do you connect that with the science, the boring engineering

of climate change? how do you connect the emotion with the actual work that needs to be done? >> i said in my meetings and speeches in the last few days that this is 90% engineering. this is just the basic work of how to go from coal-fired power wind-solar-nuclear, carbon capture sequestration, hydro, all those low carbon options. how to go to electric vehicles. that is the engineering. the rest, we see the terror, but if there isn't a path of practical engineering, nothing's going to happen. i do think it is the engineers that are going to drive the way through. when we see elon telling 500 mayors, we can make it with electric vehicles, they are listening. is the mayorncine: that can make such a difference.

so much pollution and co2 emissions comes from big metropolises around the world. >> the mayors are key. at the end of the day, the lights have to go on. the streets have to be not completely blocked. they have to have the infrastructure. , the 500lly here mayors or so in the room that are going to be driving the change on the ground level in the most practical way. tom: we would like to know your thoughts on the success of quantitative easing. we saw the historic drama yesterday with mario draghi. what did janet yellen learn yesterday on what she needs to do december 16 in looking at the market response? 16, unlessdecember there is some shocking data between now and then, she will make a modest rise of interest rates. , andnk it is clear probably a little bit overdue.

on the european side, mario draghi has been trying to do something with the german macro view on his back for years. quantitative easing came very late to europe. it nearly broke the eurozone because it was delayed by about three years. still limps along and the german view is to keep it limping. yesterday, we saw kind of a mishmash. i don't think the story is over. but clearly he wasn't able to go as far as he wanted to. francine: a mishmash because he wanted consensus from his team or because he is signaling to the markets, i've given you enough? >> i think he would like to go further. francine: has qe worked? >> qe works. qe cannot, by the way, make an economy grow for the long-term,

but it can get you out of the downward spiral. it has done that. for the longer term, we need to get sustained investment going and we need investment-led growth. that's basically the only long-term growth there is. that's why this climate meeting is not some incidental environmentalist sideshow. if this meeting is to work, it will move trillions of dollars per year in a different direction. new power grids, new distribution systems, new the eccles. icles. this is about what is needed for growth. that is for serious big money to move towards sustainable investment. tom: when you look at the german experiment, it reminds me of what russia did.

there is a massive cultural economics here. to others inspond germany who say there's such a political mandate for a cohesion within europe that we have to satay austere? it is almost an artifact from the time of conrad? ve on to amoe united states of europe? >> i think europe is not in great shape. it is not in great shape economically and politically. europe has dominated the calls. policy, i'm not so different from the german view, which is be cautious. germany says the stimulus is overblown and debt crises are real problems. i believe that.

on monitoring policies, i think they have it wrong. they have a view that has said for years, the central bank is not the lender of last resort. monetary policy should stick to its admitting and not look at the macroeconomics theme. it doesn't work very well that way. the fed has really outperformed the european central bank for many years. the fed didn't do a great job in the 2000s, but it has done a much better job post 2008 than the ecb. francine: professor, thank you for being with us. point that if the ecb sticks to the meeting, the only mandate it has is that 2% inflation. it gives mario draghi free reign. tom: he made that clear yesterday. it is like a disney movie. it was forever.

francine: plenty more here. we are going to speak to boris johnson. manus: just the thought of tom breaking into song fills me with hope, francine. enjoy the day. francine lacqua and tom keene in paris. you will be able to pick up that interview and anything you messed on bloomberg.com. up next, it is jobs day. it is the last big data point before the fed's crucial december meeting. ♪

manus: welcome back. today is all about the jobs report and what it means for the fed, interest rates, and the world. important day. in early.s joined what are we expecting? what are the benchmark that the markets want to see? >> it is about the fed today, but not about a have my, employment, or wages. it is about satisfying market expectations for a number that will at least ratify the fed raising interest rates this month. expectations are likely to be realized. all the economy's secondary indicators are suggesting strong job growth.

private surveys finding more jobs than forecast. a wide range of forecasts today, but the consensus is november was a strong month. financial sumsa up the wall street view by saying anything over 150,000 jobs will probably satisfy the fed. as for the other members, unemployment not expected to change. could pick up a little bit. we are also expecting wage growth. mike, i suppose it is going to come down to the numbers. maybe a little reprieve by mario draghi underwhelming the markets. a weaker dollar gives you a little ripley. -- a little reprieve. we are going to be tuned in. we are going to be back to paris. that is it from me. up next, it is a special "surveillance." tom keene and francine lacqua

are in paris for the climate change conference. echoing to markets in europe up, a small change from a drop of over 3% yesterday. special "surveillance" next live from paris. ♪

in therio draghi bundesbank -- he will do whatever it takes to defeat deflation. the markets spiked, recalibrating. 300 billion shifting from negative to positive. jobs day in america. janet yellen lines up the talks before her december 16 meeting. and here in paris, president hollande asks they are find a path to a better earth. good morning, everyone. we are alive in paris this friday, december 4.

francine is with me. we are here on the river seine in the shadow of notre dame, at an important meeting. francine: i wanted to go through some of the figures. when you look at cities and how they are populated, they account for 40% of co2 emissions. 60% of the world population are in cities. tom: and i think the public, particularly conservatives in every nation but particularly in america, are more comfortable hearing about climate change from their mayors than from leaders of 35,000 pla ces. francine: and it is much easier as in they are to implement things that do better for the earth. tom: we will be here today as our host, the mayor of paris, meets with president hollande and michael bloomberg. right now we need to go to new york city.

here's vonnie quinn. the coalition that has been attacking the islamic state is about to get a new member. lawmakers are expected to approve sending more planes into syria. it is called the most dangerous to employment by chancellor angela merkel. fou years agor, they cap germany out of international intervention in libya's civil war. three men on a motorcycle through firebombs early today, and 12 people killed. authorities in egypt are investigating. aslifornia gunman h reportedly been in contact with islamic extremists according to the associated press, which quotes at u.s. intelligence officials. shorter's killed 14 people, authorities are still searching for a motive. police say they found a 12 pipe bombs at the suspect's home and more than 16 rounds of ammunition when they died in a

police shootout. 30 days to review and historic decision by the pentagon. the announcement by ash carter is a review to the marine corps, which covers exemption for infantry and armored positions. in brazil, the president's allies have turned the country's highest court to stop the impeachment process. they asked to stop the impeachment request after he was accused of corruption. to get more on these 24 hours a day, go to bloomberg.com. tom? tom: thank you so much. commodities -- i -- michael mckee and i jumped conditions in the

to 1.09. up serves the shock we saw yesterday. of course, a lot was happening yesterday with the ecb. we have the jobs report, which could be the crucial jobs report, most likely the last before a rate hike -- what do we need to see? eal: it is about meeting market expectations for the view that the fed will raise interest rates. we have a very wide range of forecasts today. of ftn financial says if we get in the 150,000 or greater range, that will do the job for wall street. the consensus is 200,000. still strong -- we are hiring for holidays right now. the unemployment rate, no change

forecast. that could pick up a little bit based on rounding, and we should see some wage gain. but overall, it is satisfying the market and the fed will be satisfied. vonnie: there has been some concern that december is not the best month for a rate increase, year-end positions and market liquidity. but there it have to be some sort of outside surprise for there to not be a hike. michael: absolutely. you have to have some really knolow number. we have some liquidity issues, but i this point, is it really going to matter? everybody has already priced in, so it shouldn't matter. vonnie: and yesterday's decision by the ecb didn't affect things. michael: well, it gives janet yellen more leeway. it says in the short run that the dollar will get significantly stronger over the euro because the interest rate divergence of be that much greater. she gets sometime. that may go back the other

way, but for the moment it was good news for those who want to see the fed move. francine, we are headed back over to you in paris. francine: thank you so much. we are talking about cities and ayors, and there seems to be realization that it is the mayor's that do things. nk you joined by -- tha for joining us. when you look around the room in paris, we had almost 500 mayors. does it have to come from cities? can they make the big difference as leaders? >> yes. the mayors of cities can really make the change. to reduce the power that we have and also take the big responsibility to fight climate change. we can do a lot. and in some places we have provided but we need to push more boundaries.

we have a really high goal to meet. tom: there seems to be a comfort, back in 1972 -- the first meeting ever on climate change. it has been easy for you -- how recommend that cities come behind you to get there? what would you say to dallas, texas, for minneapolis, minnesota, about what they can learn? findhope that we really the way by sharing our best practices. tom: what are those best practices? >> look into transportation, for example. you need transportation that is not just -- you need to look at housing. when you build new housing, you need to do it in an eco-friendly way. it comes to citizens, you also need citizens involved to change behavior. francine: we sometimes have a

new york versus london -- tom: never. francine: [laughter] you say, apart from stockholm, we should do the right things. >> yes. we worked with other cities as well. we look to each other. practice, it is more like keep going. away high goal, not so far that it's unreachable, but a high goal. that is my day-to-day work, my day-to-day is efficient. bank a tough goal to be more eco-friendly. tom: your politics is what we in america would call to the left. were's been a challenge that have seen with the swedish social bank and others. how much economic growth does

it need and how important is it edge of starting climate change help? >> economic growth goes hand-in-hand with ecologic growth. we are able to do that. togo with private companies most best innovations to really size climate change. we can do it together. tom: do you work with ericsson? >> with ericsson, yes. [laughter] with a company like ericsson -- >> we work together with ericsson. they are headquartered here. we look into what we can do with and innovation when

it comes to open data and how we can push boundaries. working together with ericsson to fight climate change, and when we work together, private companies and public sector and to universities, that is success. francine: are big businesses doing enough? we can talk about oil, erickson -- if the ceo doesn't have raving desire to change the world, than shareholders are takinen't taking it. >> no. it's important that the ceo is involved with the process and with their own companies to figh t climate change. for sure, it's also -- francine: how do you make that change? if you have a ceo that believes in climate change but doesn't take it seriously, visit the millennials that have to the pressure? shareholders? what is the cross line between sustainability?

>> we try to work towards success, to work together, not make any hard agreements that you need to do. when we work together, when we said at the same table and look at the future, then we find a way to look for the high goals. tom: is stockholm warmer than it used to be? i can assure you, new york city is warmer. >> [laughter] i perceive new york and boston warmer than they used to be. warmer?olm >> i don't have any scientists on it, but if i compare when i was young, when it was really cold, now it is little bit warmer, yes. francine: thank you so much for joining us. the mayor of stockholm.

coming up, we will be joined by boris johnson. a much more typical city. he is doing a lot. this is "surveillance," live from paris. ♪

tom: good morning, everyone. bloomberg's "surveillance." tom keene in francine lacqua. vonnie quinn and michael mckee are in new york. right now, to our business flash. vonnie: thank you so much, tom. oilers of opec battle over as they gather before today's meeting in vienna. companies that are hurting for cash want to cut productions oil prices will rise, but the

biggest producer is holding the line. the saudis want to maintain market share. richard branson has a new role for an old version atlantic jumbo jet. plans to launch small rockets from the 747. he has been trying to grab a share of the markets of putting commercial satellites into orbit. they will begin tests in 2017. cheers to the proposed deal between sab miller and ab inbev. they filed a lawsuit, saying it would force them to pay more for worse quality beer. they say would create a monopoly in violation of u.s. antitrust law. that is our bloomberg business flash. thank you so much. we have been talking about climate change all week. it will last another seven days here, in the center of paris.

we also focus on cities and what mayors can do to try and safeguard our climate. earlier today, i spoke to the ocd general, and asked him whether he thought we would have an agreement. >> the two-degree target is critical. it is the backbone of everything. the national commitments are already in place. we have 184 countries that have already submitted before they arrived in paris or in the first few days. that is the greatest asset that we have to build on. francine: we will be bringing you exclusive interviews. we will be here throughout the day. we will have a new look at how much work leaders have to do. we the talking about that two-degree. tom: i think you are dead on about the financing as we migrate.

president obama and president putin and others -- when i look at the shift over the last few days, for those not engaged in this, i would suggest that the big shift is -- ok, whatever we do, who was going to write the check? francine: right. you are talking about the $100 billion -- the wealthier nations promised to give it as aide to poorer nations to reach their target. it will get almost no growth around the world. leaders are reticent. tom: i was so happy with the interview we did yesterday with kevin anderson about that difference of two degrees versus four degrees and the decline it would cause. it is not a toggle switch. it's four, five balls in the air -- did you ever juggle? francine: i did. tom: that's what we are doing in paris. andcine: i covered cop15,

that was an absolute disaster. two weeks of talks, nothing at all. leader think -- let's get something done. are.we'll see where we december 11 is the end of the meeting so we have a good number of days to try to come to some form of agreement. he'lline: also coming up, be live from cop21. this is bloomberg's "surveillance." the conversation is on finance economics. ♪

tom: good morning,, everyone, from paris. find tom keene, with me is francine lacqua. a very important morning for america. coming up, i will speak to the mayor of rio de janeiro, and his unique challenges. each city has their own independent challenges about climate change. ofer, alan krueger princeton university. it's an important jobs day. jpmorgan will join us as well. right now, to new york. here's vonnie quinn. vonnie: thanks, tom.

the crucial jobs day of the year. i thought i would point out -- there's an op-ed about the proposal that janet yellen can solve with a rate rise, the output gap. "a gap has opened up in recent years between the statistics and what policymakers have been hearing with their own ears." michael mckee will discuss this with me now. we do have a chart of productivity coming in at 2.2%, which is better than forecast, but trends would suggest that it should be around 3% by now with all the technology and innovation we have had, yet it is not. michael: this is the elegant chart that tom keene would love. the trend is down over the last 10 years, and that is a puzzle to economists, because we have so much electronic sales. we have in our hands computing power that was unimaginable 20 years ago, and yet productivity is lower -- why is that?

one idea is that data are wrong -- we don't have a capture this data. another is that the data are right and we are productive anymore. ask any worker whether they feel like they are doing more. the third idea that gillian talks about is maybe it is a lag effect, that it will take a while for all this to hit the economy. want productivity to rise because if companies can produce more for less than, in theory, the excess profits they may could be shared with workers. vonnie: interestingly, the federal reserve is concerned about this, too, and even have a private practice earlier this week just to talk about this conundrum. michael: it is a conundrum, because we don't understand what's going on with productivity, given the nature of the economy these days you would expect it to be a lot faster. that would eat into the wages that the fed wants to see, and that would feed into a stronger economy. they are trying to figure out whether it is the data or

whether it is the time. vonnie: and of course, there are various different projections, and many economists say that this isn't even correct. alan binder of princeton says it is more like half a percent of productivity, nothing close to 2%. michael: it is all a measurement question at this point. we don't know if we are measuring the data correctly, or whether the data are correct, given does seem that, labor force participation and the strong jobs we have created, productivity has to be higher. it is missing somewhere. every delivery person comes with an ipad now. they can immediately track packages. if that is the case, why isn't it showing up? vonnie: if there is a rate hike, and we assume there will be, will that do anything to productivity figures. and conversely, will lower productivity figures cause janet yellen to hold back? michael: if there is something that can be done, it won't be for monetary policy.

some sort of incentives to get companies to continue to invest in productivity enhancing capital expenditures. at this point, we are getting that from washington, so it doesn't seem to be anything on the horizon. vonnie: mario draghi is speaking in new york later on today -- i hope you will be there. if you can't, you will be able to listen live. it will be on bloomberg television and bloomberg radio at 11:00 a.m. eastern. streaming on your tablet, your phone, and at bloomberg.com. ♪

francine: welcome back. this is bloomberg's "surveillance."

we are talking about climate change, but first let's get to vonnie. vonnie: thank you. a deadly firebomb attack early today in egypt. according to news reports, three men on a motorcycle through molotov cocktails into a nightclub. 16 people died, three others were injured. no word on who the attackers were. germany is on the verge of joining the attacks against the islamic state in syria. while they are expected to approve chancellor angela merkel's plan to help targeted militants, she also wants a worship in the mediterranean sea. it is a risky's military plan since taking office. grace is criticism over its lax parties, and is calling on emergency workers to monitor its borders on the adrian sea. some have threatened to kick grease out of the european union's passport free travel

zone because of their frontier. the fbi isia, investigating the massacre as a potential case of terrorism. the associated press says one of the shooters have been in contact with islamic extremists. the two attackers killed 14 people and wounded 21 others. police say they found a 12 pipe bombs at the shooters homes and they shot more than 1600 rounds of ammunition when they died. called the longest term highway plan passed by congress in two decades. republicans and democrats teamed up to pass the highway funding plan. some lawmakers are unhappy that it is partially paid for by cuts in federal reserve dividend payments to large banks. you can get more at the new bloomberg.com. i'm vonnie quinn -- tom, back to you in paris. tom: thank you so much. thats only 23 years ago

this climate talk was considered contentious even for liberals. what's important is that 123 years ago, it was called throughout all the streets of paris. you have to read it, just to figure out where the liberal fought is on this. what is your message to conservatives about what is different? >> well, our message is the same. people aremost looking at climate change as an obligation. to what we are trying to say is that it is also an opportunity. they have a chance to increase prosperity and increase jobs by transitioning from fossil fuels, particularly cool, and toward clean energy. that is ated states, rapid phaseout of coal-fired power plants, allowing for

expansion of solar and wind. tom: i was reading "the los angeles times" today. governor brown is not only getting together with other states and cities, but indeed other nations, to get to some form of better automobile. francine: and one thing i wanted thetalk about -- environmental organizations -- who is feeling the cuts here in? europe >> there are plenty of groups. there is a network of groups called climate action network that is helping to coordinate among all different ngos around the world -- francine: is there a country or city that is doing more to make sure that there is -- >> there are network of cities right now. germany, portugal, spain, nordic countries have begun to move away from coal butter scaling of

clean energy. states, iowa, nebraska, oklahoma, south dakota, north dakota, getting 40% of their power from wind or solar. most of those states are moving very quickly away from coal. tom: i encourage everyone to go to their beyond coal project -- whatever your political beliefs, look at the rate of change of the closing of coal plants. what would you say to someone watching this from kentucky this morning about the death of their industry? say that wewould have an opportunity right now to make this transition. the country and the world is starting to move away from coal, but we need to do it in the right way so that we are replacing the jobs in appalachia, in the river basin, with real jobs associated with clean energies. over the last five years, 200

coal plants have been retired. withthe imagery he had coal gas lands -- in london and paris, it was one coal. greatne: you make a point. a fewing up kentucky -- years ago it was china. when will that change? >> the interesting thing about ane u.s. -- we are seeing i obstruction is forced in copenhagen, and now they have cut missions more than any other country. the reason for that is the transition away from cold toward clean energy. tom: what was your response to the "new york times" article estimating pollution in china? whatever the political sway --

you go to figure out what is going on, did we all get it wrong on the size of pollution in china? >> yes. what is happening in china and around the world is that they don't have the technology or the bureaucracy we have in the united states to measure how high the levels of pollution are. there's a complete lack of transparency. even if we could calculate it, the level of transparency and the reporting requirements are much lower. what happened in china is that they are producing a significant amount, of 5% more pollution than we thought. the good news is that they have stop use of coal and they are retiring cold plants. francine: the chinese government are concerned -- >> at the federal level and state and local level. the top 10 cities in china have committed to cut emissions. tom: when you call this a

heritage of san francisco and technology? how do you draw in wall street, how do you go out in the hedge funds to be constructively capitalist and also help this? >> data. we are able to point out accurately that coal contributes to four of five leading causes of that in the united states and around the world. but we can also say that we have mapped out every single coal-fired boiler in the u.s., and we can show, plant by plant, how would we replace those coal plants with a wide source of clean energy options, we can create more jobs and save lives and improve the resiliency of the local economy. we use data that is transparent and show exactly what we do. tom: thank you so much. and paris -- francine lacqua and i will

continue. we will have another interview with the chief executive officer him.ick around witfor don't forget, it is jobs day in america. stay with us. ♪

francine: welcome back. we're live in paris at the climate change summit. we have some great interviews coming your way, but first here's vonnie with the latest. vonnie: thank you so much. perhaps it's ironic or fitting that opec ministers are meeting in vienna i.

oil is headed for a weekly decline as opec ministers gather to decide on production policy. ryan chilcote spoke to some of these ministers today. ryan, you are in vienna -- what you taking from the conversation? guess aftermy speaking with all the oil ministers is that there will not be a production cut. that is what we were anticipating. i think they will be in the room for another hour or two, then they will be drinking coffee. vonnie: yes, indeed. i'm sure there's a lot that goes on at each meeting. but there are some substantial think they get decided, particularly iran trying to hobble back into the market. what you learn from attendees about what kind of conditions they are offering? all the oil companies have been here. they've been talking to the arabian oil minister. is conditions that iran

offering are just not competitive enough yet. he's saying that by february he is hoping they will improve. right now they are offering service contracts. but maybe they will get better. i don't think the market thinks that this too much. iran will need a lot of investment, which it is not getting yet. that process is going to take time. michael: ryan, a question about russia. at this point, they seem to be the big player of who is not at the table. any indication from anyone connected with the russians that they would agree to any kind of production cuts, given their economic situation? ryan: no indication whatsoever. in facts, the russians say they are not even capable of a cut. that is the physical reality of their oil fields. there is a lot of water in the oil and if they turn off the

tap, and they say they might just move the oil field altogether. the world largest public attorney of crude producers, russia's biggest oil producer, they say they heard this offer from the saudis before, that if they did a cut they would engage -- yet they are just increasing production. i think the russians just don't believe in it, in addition to saying they couldn't do it. i highly doubt that we will see the russians cut their production anytime soon. last month, they had record production. francine: ryan, it is up this morning in trade, back above the 40 mark. people say that it's declining, but in fact there is still a lot of influence coming from opec and how much it decides to produce. ryan: yeah, i think that is right. they produce 40% of the world's oil. there are a lot of non-opec

producers out there, shale producers, russia. but i think the reality is that opec is like the central bank of oil. well we are not expecting a production cut, when they do come out today, we will be looking for guidance from the oil ministers. there has been a subtle change, for example, from saudi arabia. they don't look like they want to cut, but a little bit of the stridentonfident, language about how great the market is and how great l balance, will allen's they have toned that down. they want to allow production to grow if it has to, to push out high cost producers. but they want to watch what happens, not just on the supply side it also on the demand side over the next six months to year, so they don't back themselves into a corner if they have to change strategy down the road.

they are sort of hostage to the strategy that they announced here a year ago -- let's get rid of some of those big energy projects from big oil. there is so much oil coming to the market. vonnie: ryan chilcote, thank you so much. he's in vienna. coming up, we will be speaking with the l'oreal ceo. we will discuss his company's commitment to become carbon neutral. you're watching "surveillance." ♪

tom: good morning, everyone. bloomberg's "surveillance" in paris. we are here with the mayors from around the world, looking at climate change. they come up on the jobs report a: 30.ica at michael mckee will speak with bill gross as we always do, and we do so with changed data across equity cuts and commodities since the announcement yesterday. a lot going on to try for jobs

report. right now we drive to new york city in a business/with vonnie quinn. the highest tax bill since 2007. the industry contributed 11% of all the tax money during 2015. george osborne has said to reduce a special levy on banks after the financial crisis. motorola's solution to buy a british company to help its software and services business. it will shell out $1.2 billion s solutions. the solut and a restaurant trade group is suing new york city over new rules on salt content. warnings on food that are high in salt. the national restaurant association says the city has overstepped its authority. back to paris now.

thank you so much. we had a great interview to try and figure out what mayors of cities can do. energy and france's environment minister. she says her main concern overall about cop21 is whether we will have agreement on the climate. >> the biggest challenges climate, because two countries have to believe that an agreementand a real is accompanying this agreement, and to silence transfer of technology. for example, for sustainable, renewable energy. in africa, the need is to obtain

the finance, because outside finance, there is nothing true or credible. francine: financing is probably one of the biggest issues. pleased to say that we know have the founder and extras whone of the really knows about climate change -- right to have you. are we going to get an agreement? >> there will be an agreement. it will be an imperfect success. they won't be an agreement or as ambitious as some people would want but there will be an agreement. francine: that will do what exactly? are we stuck on financing? >> first of all, the agreement is going to wrap up all the

intended national contributions so it will be a voluntary .greement tom: one thing you do a new energy finance is open my eyes to a bigger picture. t talksas an article tha about the admissions from california -- the emissions from california, one of the few places on earth where all of their pollution is moving around the earth. are we better now than we were five years ago? >> we are hugely better in terms of a few things. we understand the issues a lot better. there is more best practice knowledge. there is a load of progress. the solutions have become a lot cheaper. they are now, if not competitive, the nearly competitive.

and that gives a lot of confidence. it commits to dhi qar been rising things so they know what to expect. the preparation -- you have probably already seen since it started that this is not your father's copenhagen. this is paris, it's being run well, and there's a sense of momentum in progress. francine: if we get an -- whatt, do you think impact will it have? will it be a binding agreement? is there a role that businesses need to play in it? >> the agreement is going to be all about direction setting. what it will do for business -- it gives confidence that yes, we are going in that direction. you can make investments, you can plan, you can hire staff. what it's not going to be -- binding is irrelevant. the canadians just turned around and said we don't want to do it

-- what is binding? francine: it's better than nothing. >> a coalition of the willing. it's just the commitment, the public statement of commitment. i think that people being held answerable is more important than china getting something legally binding, that will be legally binding in any meaningful sense. fix dream -- how do you go out to big oil, downstream oil, and say you need to find a new energy? >> the first thing you say is we will be grown-up about this. this is not about punishment, not about virtue signaling. this is about a transition to a low carbon economy and a low carbon energy system. we are not going to do that by demonizing anybody. the other thing you say is this is the direction of travel. this is what the next decade to all your strategies, investment

communications need to understand -- this is happening. you can shift into gas, you can do oil, but you have to be at a point on the supply curve that is lower carbon. francine: but the direction of travel is not good enough. we all know -- we have younger kids that care about these things. the millennials care. there is a lot of social media -- the direction, we know, we need something more concrete. >> i would disagree. i think this is a very long game. we will be playing this for 50 years, decade after decade. tom: will still be here. -- we'll still be here. [laughter] >> the technology and cost production of clean energy -- the curve has started to bend, and the question is, we will be back in five years. at cop26, and we

will be talking about whether the curve is accelerating faster now, whether transportation and heat and industry -- india or nigeria -- we will be here doing this, and it will be accelerating. i guarantee that. francine: michael, thank you so much. coming up, more from cop21. i love this -- we are doing cop21. michael is saying there will be a cop26. ♪

tom: mario draghi has pushed

aside protests from the bundesbank. he will do whatever it takes to defeat deflation. markets finally recalibrate. shifts from of debt negative to positive yield. it is jobs day in america. lines up her ducks before the december 16 fed meeting. good morning, everyone. this is "bloomberg surveillance ," live from cop21 in paris. four.friday, december 4 tom keene. francine lacqua, wonderful to be here with you. saidine: michael liebreich we will probably have a cop26. copenhagen was such a disappointment. let's hope that this is a step up from copenhagen. tom: