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: here we are in paris.

jobs day in america. to new york city, first word news with vonnie quinn. vonnie: the coalition fighting islamic state is getting a new member. germany's parliament approved a plan to send planes and 1200 troops into syria. will conduct reconnaissance, and soldiers will be used only in support bowls. it is -- in support roles. officials in a juice say a fire bombing that killed 16 people today was not terrorism. police are looking for two young cocktailsssed molotov into a nightclub. investigators think the suspect attacked because they were not allowed to enter the club. ♪ but i never let it get me down i know someday it will all turn around ♪

thousands last night morning the california shooting victims in san bernardino. leaders from several states conducted a prayer and several -- a prayer and candlelight vigil. about 200 muslims prayed for those killed and wounded. leaders said it is too soon to determine whether the killers were led by their faith. in washington, the senate rejected a bill calling for background checks on those buying guns and weapons online. get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i am vonnie quinn. back to paris and tom keene. tom: thank you so much. here in paris, we are looking at much on climate change, but of course we need to look at the

data and shift the data from what we have seen yesterday, across equities, bonds, currencies, commodities. equities lower, and we saw the euro spike. --is the secondary tears euro-sterling and things like that -- where you really see the nuance. francine: european stocks extending losses on the mario draghi disappointment, and the dollar payrolls movement. i wonder whether one day we will look at carbon boards or green energy boards. tom: i think we will look at .ome form of carbon option francine: and we need to find an agreement in paris and we are joined by jean-paul agon. you are one of the people who is spearheading the movement. at the time, i remember in may

you told me, "i care about availability. how do your consumers react when somebody says we care about green? , butpaul: the challenge also the commitment, is to make sure that every product we are going to make will be green, but anys not going to be greenwashing. it would be all green. it would change everything we do in order to reduce our carbon emissions, and the consumers will not have to pay anything more expensive for them. it will be standard. tom: in the united states, you have the idea of extension waiting -- i would to just in climate change, there is a female mandate.

what can women specifically do to jumpstart a dialogue? jean-paul: it is a great idea. we, as you know, our products women, andbought by -- tom: can we stop the interview the act or am modestly aware of this. john paul if you would like to try a few products, we can do something for you. [laughter] you are right. i think that women are very committed to the availability. they realize that we have to change the way we produce, the way we do everything. that is why l'oreal is very committed in that direction. francine: is it difficult? you have lackluster growth in europe . you are having a tough time in emerging markets like brazil. is it tougher to go through a green shift when the numbers say

you are going through a tough time? first, we are not going through as tough a time as you said because we are growing our business everywhere, in every region. as easy as it was maybe a few years ago when some theets -- but still, company is really getting into you places, and as i said, can really do both. you can gain market share, increase your profit, and do what it takes -- i am talking our industry. in our industry, it does not cost that much. tom: one thing that is so ago ault, years supermodel, with her work in ethiopia -- tell us about the

l'oreal experience globally and the rate of change of this discussion of climate change between the u.s. and a place like -- jean-paul: for us, the progress we are making, we do it everywhere. we have very high standards in terms of environment, in terms of carbon emissions, in terms of carbon-neutral plants or factories or warehouses. this is something we do everywhere. for example, we just recently that l'oreal in china is carbon neutral. the only plan -- tom: how did you do that? beijing last week was not carbon-neutral.

jean-paul: i know, but it is easier for one company like us to do it, rather than a huge city like beijing. but it shows that the chinese are very motivated, and this is very significant. agon, thankan-paul you very much. tom: coming up from cop21 in paris, a ceo will join us. in theorget jobs day united states. stay with us. from paris and from new york this morning, "bloomberg surveillance." ♪

francine: welcome back. this is "bloomberg surveillance." i am francine lacqua with tom keene. we are talking about whether we will get an agreement. we are joined by the ceo of bg

group, helge lund. you have been one of the biggest advocates for carbon pricing. are we going to get it? helge: i do not think we are going to meet the global price anytime soon, but there are many local and regional schemes that are being implemented. our hope is that the schemes will eventually be combined into a global price because it will give everyone an incentive to implement energy-efficient proposals. francine: why is it taking so much time? helge: it is political issues, political issues that need to be solved in different situations. i think it is a political process that needs to take time. tom: you worked for mckenzie years ago. the politicians can come in, but at the end of the day, it is about the science. -- whatyou within the

have you within the oil and gas industry learned about the new science of climate change that the industry can adaptive? helge: it is something that all of us have to -- i can only talk for my own company and from that perspective. we accepted that this is one of the most important issues that we need to deal with. i think there is a new energy reality. the gas companies need to produce more energy, but at the same time we need to reduce emissions. i think we have some short-term opportunities. -- instance, see more gas in it is an immediate opportunity. it is possible, and i think gas is a perfect partner because it is flexible. francine: this can only be known with new technology, right? it needs to be more energy efficient.

absolutely. to my surprise, energy efficiency i think gets too little attention. bit boring topic. tom: we like boring topics. energybut to connect efficiency and global carbon pricing -- i think if you have a price, every citizen, every company, every government would face the same incentive to improve their image and. -- i am sure you are more aware of the price of oil. getting telephone calls from sovereign world funds to move money back into the funds as the price of oil goes down -- how will norway adapt to the oil price within their sovereign wealth fund and within the industry?

i think it is important to think about the fact that the 2 ° nori aoki, -- in scenario -- francine: to tom potts point, i 's point, i tom guess we are moving toward consumer energy. how will big businesses survive? helge: i think customers expect and what is to engage in issues of this idea, and i think climate change is one such issue. sense that this issue

has moved on phenomenally since that time, and it is not anymore business.issue for it is a real issue that all of us have to face, also our industry. francine: but it is so much more difficult in your industry. helge: it is. but there are some solutions and and i think it is important to look at gas as a phenomenal opportunity in the medium-term, and we can implement also and quickly reduce emissions. there is great skepticism across america about how gas fold into our hydrocarbon matrix. helge: in my view, gas is a very important part in the short-term, but i think it is also part of a long-term solution because it goes along

with renewables. i think you see it now, and you see in some cities that have replaced coal with gas. tom: there is an immediate effect, isn't there? an overnight effect? helge: it is an overnight effect, very quickly. francine: when are we going to get approval from china? we expect to be closing out a deal in early 2016. francine: so is it the first half of 2016, that you are in contact with regulators? of course, there is regular contact all the time, and we expect the deal to close in early 2016. francine: there is so much speculation as to whether you will see this deal finished.

are you expecting to stay? helge: i will make sure that the deal is moving in early 2016. tom: thank you. coming up, the mayor of rio de janeiro will join us to continue our discussion on climate change. and it is jobs day in america. michael mckee and vonnie quinn with perspective. stay with us. "bloomberg surveillance." ♪ ♪

tom: good morning, everyone.

from paris, tom keene and francine lacqua at the cop21 meeting. right now, a discussion on an important morning must-read about the modest events of economics today. here is the immodest michael mckee. michael: modestly, thank you, tom. it is jobs day. officials are saying we can move if we get a reasonable number. it does not have to be a big number because the labor market has made so much progress through jim vogel agrees, but there is one area -- lower growth. unfortunately, the global economy continues to generate negative surprises. in other words, we are still a little bit fragile here, and if the number is not good enough, then markets could react as it did with the ecb. that is not what the fed wants to see. vonnie: this brings up the

important question. is the market looking at the thes numbers through federal reserve solely, or is it interested in economic growth and how the economy is doing? michael: at the moment, slow -- solely through the lens of the fed. once we get through that, especially if the fed statement suggests they are on hold for a while and that they will be low and slow, markets might then start looking at the fundamentals. the fundamentals in the labor market have been pretty good. we shall see if there are any negative surprises. talks about agel trip wire. that is what he calls the november jobs report. what about revisions? with that scare the market at all? michael: only if the market goes down. if it were revised down significantly, people would be scared about labor market momentum. october athe month of reasonably calm month, but then

with the paris attacks and things like that, do these things weigh on corporate hiring? consensus is 200,000 job growth. that would be a little bit of a cushion in a normal economy. risksgel says one of the is that the market might think the fed will hike faster if we get a better number than that today praise how likely is that? michael: that is an interesting question because nobody expected 271,000 last month. the forecast consensus is 270,000 this month. if it were over that, you could get that christ in. people are more worried about a -- you could get that priced in. people are more worried about a lower number. vonnie: what about wage growth? that is one thing that the fed was lay reader -- that the fed was laser focused on. if we get stagnant wages this month, will that make any difference?

michael: it depends on how stagnant. after .4 last month, that would be enough. tess wiseman of morgan stanley points out that we have seen a point for game a couple of -- a .4 gaine have seen for a couple of months. vonnie: this brings up the question about how much markets are depended on central bank because you have mario draghi yesterday, and it was i by super mario -- was by by super -- we really call it a disappointment? michael: talking with jean-claude trish a yesterday, .e made that point exactly we have heard that today from

the vice president of the ecb. he says the markets got it wrong yesterday. they are still getting it wrong this morning, and it is their fault rather than the ecb's. they are not accepting any responsibility for communications failures. i do not think that is going to go over very well around the world. vonnie: the european central bank and previous central-bank this week -- mario draghi will be speaking in new york today at 11:45 at the economic club of new york. try to clarify anything, or will he leave well enough alone for the market to settle on its own? michael: a very interesting question. let cussed and seo -- ben bernanke a number of years ago, shortly after he became the fed chairman, went to jackson hole, give a speech, and suggested the fed might be powerless to do something in this situation and

the markets reacted negatively. another speech suggesting that you got it wrong. here is what i really meant. janet yellen, after the september press conference, went to amherst and suggested we did not communicate this correctly. mario draghi is in the same situation now, because as much as they want to blame the market, they have to play to the markets. the markets will determine what goes on in terms of transmitting monetary policy, so does he make a change? that is the interesting question today. vonnie: transparency and former guidance, two things the fed has to navigate. mario draghi'sou speech at 11:45. ♪

tom: it is a city hall that goes back to the 14th century, burned

out at least once, maybe twice, maybe three times, and then rebuilt into a 19th-century jewel. francine: it is very minimalist, isn't that? tom: it looks like a surveillance greenroom, honestly. right by the river send, notre dame -- the river seine at notre dame. welcome to paris. francine lacqua, tom keene, here at the cop21 meetings, right now with an important jobs day ahead. here is vonnie quinn. vonnie: i have to say it sounds so much more welcoming. another nation is joining the fight against islamic state. germany's parliament approved a plan to send surveillance planes and 1200 troops into syria. the troops would be used only in support roles, but it is the riskiest use yet of the military by angela merkel. opened combat roles

to women. congress has 30 days to review the policy. one day after 14 people died in the san bernardino massacre, the callingejected a bill for background checks on those buying weapons online and that gun shows. were bought weapons legally and more than three years ago. a football miracle. aron rodgers threw a 61 yard touchdown pass to richard rogers with no time left. -- ave cleveland a 21-27 31-27 win in detroit. thursday night football. we were all asleep waiting for the jobs report today. you can get these and other breaking stories 24 hours a day at the new bloomberg.com. back to paris and tom. tom: vonnie quinn, thank you so much.

without question, are most important interview of the day, not only on climate change but the challenge is to rio de janeiro. the right now, a most challenging moment for his brazil. , wonderful to see you this morning. are you distracted by brazil or totally focused on climate change? eduardo: when you are a mayor, you're never distracted. think this meeting is a great opportunity to get together. 400 mayors from different institutions, and talking about this important issue of climate change. at this time in a city like paris, with what happened three weeks ago, i think it is good to be back in this amazing city to talk about the future. it shows that terrorist attacks will never stop us from making a better world. francine: there was something

that struck me. when we look at the figures this morning, 70% of emissions come from cities. what can we learn from each other? how much information sharing is there among mayors? eduardo: that is the beauty of this. obviously, there are different levels of civilization, of development. rio is more similar to mexico city than it is with paris. but there are great solutions that will work for real -- for rio. there are great solutions in paris that will work for new york. networks, we think about transportation, a bunch of solutions. this?ne: how difficult is your country is going through a very tough time. inflation is up, employment is

down, and you are going through a recession. sustainable, friendly solutions -- how do they work in that kind of environment? eduardo: when we talk about national governments, the problems at national government face all these problems. but the solutions that mayors can find, especially with actions like climate change, it is amazing. even without the proper funds, the money that is being spent come back in climate change in committee. so, i mean, even with all the problems that we face, rio is still moving forward. tom: let's think about the unique economic growth, with the with the proposals of mrs. recess. growth that assists rio.

forrdo: there is no reason -- it is obviously an instrument of our constitution. but there is a crime of responsibility. all of us governors, governments, she is a very honest person, and she is doing fantastic things in the country. brazillitical fight in -- i think cooperation is fine. it is institutional, and i think this is just political turmoil. mayor, the solution as a currency adjustment? you look at argentina and the challenges there. currencythe proper adjustment so you can affect your budget and even worry about i mean,change? eduardo:

this is -- i think the currency a little bit higher as what it is is better for the country. it would make us more competitive. the dollar was too low in brazil for a long time. too many brazilians going to miami and new york to spend money there. especially for exportations, i think it is better that the dollar stays a little bit low for us. you have a huge job, probably one of the biggest jobs of any city at the moment with the olympics, and you have cut costs. that is pretty incredible. mean, it is something that people would not believe. francine: you are like the poster child for that.

eduardo: if you look at the cost of the olympics, it is 5%. most of it is private. the olympic village is completely private. building huge stadiums, very simple stadiums -- i will give you an example. games, they will become four new schools. the aquatics -- we do things all the time. tom: i have been briefed by our brazilian bloomberg news compatriots that with the political storm right now from brazil, after the games, possibly you would seek higher office. tell us how you can move beyond the politics of rio to address all the people.

eduardo: i lived for a while in new york, six months vacation. tom: brazil was not a joke. eduardo: i mean, i think the country faces too many challenges. if you look at brazil 3, 4 years ago, the country is amazing, everything is fine. it was not that fine. now you look at brazil and say it is a big problem. it is not that bad. more of the economic problems that we are facing, it is a political crisis that has gone too far, and it is time for the politicians to slow down. , mayor, so much. the mayor of rio de janeiro. of course, alan krueger of princeton university will join us across bloomberg radio and bloomberg television. paris, this is "bloomberg

surveillance." ♪

francine: welcome back. this is "bloomberg surveillance ." we are live in paris. francine lacqua with tom keene p is speaking excellent french. here is vonnie quinn in new york. vonnie: opec will battle about oil production at its meetings their bank today. countries that need cash like what ana and ecuador increase in prices. but saudi arabia's holding the line to maintain market share. virgin galactic plans to launch virginockets from an old atlantic jumbo jet. the company is trying to grab a

share of the market for commotion -- for putting commercial satellites into the atmosphere. and some american beer makers are not toasting the merger of anheuser-busch inbev and a.b. miller. toy say they will be forced pay more for lower quality brews. ab inbev says the suit has no merit. it is time for our single best chart. has a special ecb-tinted single best chart. in this case, the deposit rate cut, what they are actually trying to do. as bank reserves grow and the ecb is increasing bank reserves by buying additional bonds from the various countries, they are sitting at the ecb and they want to force it out. so what they are going to do is push the deposit rate lower, as they did even yesterday, and try to make it more expensive because it is a negative rate to keep your cash at the ecb.

it is not working. you can see on the chart that the gold line is the reserves at the ecb. they are rising, even as the deposit rate falls and goes negative. they will have to hope that changes if they want to get monetary stimulus out of the idea. vonnie: and this only started in june of 2015. what is so special about june of 2015 that caused that to start? michael: you can see down here it started to go up back at the beginning of the year across the line in june, but as they began to build up reserves as the ecb bought more and more of the sovereign bonds there, the reserves started piling up. the ecb wants to push them out the door. vonnie: so it would assume the current policy is not working, but mario draghi seems to have faith in it. back on theyou go chart, previous efforts to lower the deposit rate helped push out

reserves, and they believe that will happen again. they made another cut of 10 basis points yesterday. the markets wanted more. vonnie: that is why there was so much talk about a potential two-tier system, one for the deposit then another for just -- michael: the ecb has a two-tier system now, the rates that the banks pay each other. and they have a deposit rate. what they are talking about is if they had cut the deposit rate too much, it would affect bank profits, so there would be a lower rate for smaller banks that could not afford to absorb that. they decided not to go with that. vonnie: thank you so much. a wonderful single best chart, which i am sure you will tweet out. follow us on twitter. i am vonnie quinn as well. let's take a look at some photos making news today.

-- aliber three photo immediatelling for an release of his brother. he has been imprisoned in iran for 500 days now. there was that horrible statement about the 500-day mark. our second top photo is another political one. dick cheney's marble bust was unveiled as part of a tradition from the 1800s that allows the former vice presidents to be placed in the capital. -- in the capitol. his wife and grandchildren were in attendance. at the marblere bust of dick cheney and dick cheney himself. and melting glacier ice has been

shipped to paris to be displayed during the united nations conference on climate change. the ice watch signals the rapidly melting arctic. it is intended to be a wake-up call for climate change third francine, have you seen many sort of symbolic insulations on your trip to palace -- on your trip to paris? francine: i personally have not seen that many, but we hear about the demonstrations. taking to, of course, the streets. there is a buzz in the city. they want some climate change deals that mean something. there is a feeling in the air that president hollande and france need some support, and this is one of the things they thisdecided not to cancel,

summit. and maybe the leaders will give it some support. we are live from paris, cop21. we are back in a couple of minutes. this is "bloomberg surveillance ." ♪

tom: good morning, everyone, from paris. francine lacqua and myself here at the paris climate talks. it is jobs day third what you need to know is the euro-yen pair, 133.60 six on the bloomberg terminal. that is in a store very change, and extraordinary adjustment -- that is an extraordinary change, and extraordinary adjustment. toht now with a look forward "bloomberg ," david westin. david: it is jobs day, and that will be a principal focus. we will be joined by alan krueger of princeton and tim kaine of the hoover institution. in addition, we will come to paris, where you are, to make a special announcement on a new climate initiative. in the last hour, we will be

joined by rick rieder of blackrock. that is all coming up on "bloomberg ." tom: david, thank you so much. it is jobs day, but we are focused here on the linkage of economics and financing in climate change. francine: that financing that we hope we will find an agreement on is basically the promise from the wealthier nations of the world, that they will give $100 billion to the poorer ones. we also spoke to the columbia university professor jeffrey sachs earlier today, and he was saying we will get an agreement but it will probably be a watered-down one. jeffrey: there is no time or taste for the really tough agreements, and when you have the president of the united states basically maneuvering so that he does not have to put the signed agreement back to the

senate, you know that you cannot go as far as the rest of the world actually would like to go. on the other hand, i think there is a will not to let this whole thing crack, he does this meeting is five years in the making. this is not just the last six months. five years we have been talking about this week, that if we miss this one, there is no backstop. is jeff sachs at columbia university, making comments here in paris this morning. comments were made 10 years ago by the mayor of london, mayor livingstone really got started the idea of cities at the time 20, gettingumber, together to figure out what to do at the local level. mark watts worked for him and is now the director of c 40. it is now a larger organization. mark: about a third of the

remaining global state carbon will be decided by decisions made by neher's -- by mayors over the next 40 years. francine: the end game is basically that by sharing information, mayors get smarter about -- s atever it is, there real difference at the political level. mayors a collaborating aobally on climate change, in way that this rather eluded the national leaders. tom: we talk to business leaders today, and they seem to have a new -- explained the linkage of capitalism into what is often not a capitalistic structure, which is a city. how do these two come together?

mark: they have understood that it is not a choice between i'm a change or economic growth. carbonies with low growth will raise their living standards in the future. tom: what do you say to industries where they will lose jobs? to the point of, trust us, we are going to create jobs? among the realee engines of the global economy, the world's great cities. they are confident. there is growth going in the right direction, job growth going in the right direction. the cities are growing on the back of investment and low carbon industries. you see old industries being replaced by new technology, and in many cases those firms changing their business model. who is getting it right? i am not talking about the carbon-neutral cities because some have a natural

advantage. but had it has -- but who has the toughest job? mark: the real change has been in china. they were a huge challenge because they are growing so fast. pollution has caught up with economic process -- with economic progress that makes it quite difficult. leadership.l mark watts, thanks so much. this is most interesting. it was a lot of fun. of course, all of that was a distraction yesterday, with mario draghi. of course, coming up, looking at the american jobs economy. we will give you a conversation that goes beneath the headlines. alan krueger will join us from princeton university. and as always, after the report, we will speak to william gross of janus capital.

economics, finance, investment, and international relations. the one thing you need to know into the jobs report is a most changed data screen today, looking at the currency markets, the weaker dollar, with a higher interest rate environment, and finally with equities churning as well. coming up at 8:30, the american jobs report. stay with us on radio and television. "bloomberg surveillance." ♪

david: it is jobs day, one of the most anticipated employment report in the year, and the fed will be watching closely. saudi arabia pushes back against opec members that want to cut

back oil production and force prices up. and the fate of obamacare. congress is still pushing for repeal, but i'll -- while the woman in charge wants to make sure it survives. "bloombergome to ." i'm david westin. stephanie: i am stephanie ruhle. we have the jobs number. if we get a strong number out of d.c., we can see a shift in the euro and the dollar. some of these investors lost money yesterday. david: it was a rough day. stephanie: it is not going to be a rough morning because we have bloomberg and mertes matt winkler with us. good morning. and carl riccadonna is with us. we will break down