mark: energy and mining companies fall ahead of this week's reform meeting. the european close starts right now. ♪ david: we will take you to johannesburg in the next half hour. kick us off. mark: pre-fed jitters? were rising for the first 3.5 hours and then oil companies started falling and resource companies started climbing as well. , we had mining stocks sinking in the biggest fall since july. falling for the fifth consecutive day. since we hit a three month high on november, the stoxx 600 has fallen by 8%. throw into the mix the news about high-yield jitters and you

have got the perfect cocktail of nervousness before the big fat on wednesday. david: south african rallying today. what is the ripple effect in europe? mark: two companies and want to tell you about. all mutual is an insurer. an asset manage and bank in south africa. both get a big proportion of revenues from south africa. both shares fell 20%. after death plummeted after it named a new finance minister. the market did not like it. he did a u-turn and announced the second finance minister in four days. bylier, invest tackle is up 12%. there you go. investors shrugging a huge sigh back in the post

between 2009 and two dozen 14. in on the's check bloomberg first solar news. courtney donohoe has information from the news desk. commenting on egypt's preliminary report that the jetliner was not due to terrorism. investigators are continuing their work. thatkesman reemphasized its experts concluded a terrorist action brought down the plane. all 224 on board were killed. isretary of state john kerry heading to russia for talks with president vladimir putin. on the on syria is top agenda. russia is rejecting any compromise. they have demanded bashar al-assad step down. he wantedobama said to visit cuba before the end of his presidency. in an interview, the president said that if i go on a visit,

part of the deal as i get to talk to everybody. i have made it clear with my conversations directly with president castro that we would continue to reach out to those who want to broaden the scope for free expression inside cuba. owners of small drones will have to register the unmanned aircraft with the faa. the cost is five dollars. the faa is trying to impose order on hobbyists who use drones. a number of incidents where drones -- traditional aircraft or in prohibited zones. the firstlook at alert news right now. you can get more on this and other stories toy four hours a day at bloomberg.com. david? european investment bakes undergoing the deepest overhaul. today is the reinvention of rbs. mark: it certainly is.

it has taken over a couple of years ago. the chief executive eliminated thousands of jobs and exited countries around the globe and sold assets to help rbs return to a profit. spoke exclusively to mcewan about the road to recovery. we have got another year of 2016. of,countries we come out when i took over, we were in 37 countries. back to somewhere around 13 or 14 countries. that is what we think would be right for our customers in the u.k., but also write for where our strategic strengths of business are. product, right fx and in credit including capital markets. that is where strategic strengths are. those fuse i think customers recognize us as having strength. >> the natural question is, i

look,the customers say you cannot give me full service so i have got to go to hsbc and i have got to go to another institution. where are we in that? the likes of the oil producers? thing that is important to understand is they are multibank anyway. they have a panel of banks. we have because of various we have purposefully come out of. take some of the large companies, the fact that we have come out of global transaction servicing means of course we are losing that share and that will go to someone else. but are we losing the share in the three core areas we have talked about and the answer is no. in those areas, we see the real strengths. the bank primarily will be finished by the end of the year on the restructuring of the front end. it will pre-much be done by the end of the year, a very good

outcome given the amount of work. >> i love this. bankers bonuses. you are right and i hear what you say but many people in the sector still believe they should be paid off nouriel waivers for turning up with the salary and playing with other people's money. we, in banking, does the perfect -- i -- i personally think that is rather sanctimonious. have got to realize is the marketplace is changing. you see all the companies you have been talking about changing and downsizing. that will have an impact. i have become very pragmatic quickly on these issues. you need the right people in the right jobs and you need to pay them enough to get them to do the job. the thing that is important for

our business is to build a culture of this organization that it is not about the money, but doing the right thing. >> in the environment, though, you need to pretend to get you through this, as it were, at rbs. you have to pay. >> we have had to pay but the bonus structure for us is down dramatically from where it was five years ago, genetically to the point where it is a much smaller part of the overall sally -- salary. we are in good shape. question is how you do the right job, get in the right results, and getting the results for the overall business. one has to be pragmatic about that. >> we have seen the government chip away. position is still more than 70%.

their position is to be a minority shareholder in this parliament. how realistic is that? >> i think it is realistic. my job is to create a good bank so they get a good asset to sell. at each quarter that goes by, you see us progressing toward the bank we choose to be. the strategy based in the u.k., the republic mainly, every quarter goes by and you see us taking off the balance sheet assets. it has happened faster than i think anyone has anticipated. concentration of people focusing on those areas, and they do an amazing job. and we have had a good market to do it in. i think you are seeing a merger. the bank a lot quicker than anticipated. >> it matters to you what the

bank of england does. talk as you look at the risk of the fed and the return. >> i think ceos of banks have wrongly thought interest rates will go up and-based interest rates around the income that comes up from there. myce i have been in the job, view is, do not take any account of any of the wins we get of interest rates going up here those are after we read. i think the interest rates in the u.k. will stay low for longer. >> how low is low for longer? >> i do not think they will be moving in 2016. we are building our business around the fact that they will not be moving. if they do, that is nice to see, but i think you have got to build your business around not the worst case scenarios but scenarios that do not leave you hoping something will happen. that is what we have done with the planning of the business. mark: speaking exclusively to rbs chief executive ross.

fascinating to see the share price. it is down today, 28% lower this year and to pounds 82. the magic number is four pounds, that is the figure the government says breaks even on its bailout. is amount of shares it sold august, it is at 2 billion, actually selling shares on a loss right now. just so eager to get the bank off its hand. it will happen. it will take five years. it will be a slow process, but the government just wants to get it out there. owes 72.9%ent still of rbs. david: all right. still ahead, south africa processes president -- south africa's president -- we take a look at the dollar ran. ♪

mark: this is the european close, a beautiful picture of london. fifthoxx 600 fell for a consecutive day, the losing streak since july. david: time now for a look at some of the biggest business tories in the news right now. a victory for directv and the supreme court. directv can avoid a class-action lawsuit in california after early termination fees can force customers into private army take -- arbitration instead.

specifically prohibiting customers from banding together to sue the company. christmasing an early gift from taylor's left. a special world tour exclusively on apple music, set to release on sunday. it is currently the only special that it is available to stream. the category of what could have been, chip wilson told us today he once considered buying under armour, a deal that would have combined two of the biggest names in a flag peril. three years ago, lululemon was worth twice as much as undergarment. you can always get more business news at bloomberg.com. let's turn our attention to south africa now. mark: let's get it on. what a day at what a couple of days. earlier, the biggest rise in almost seven years, rally today after news broke and they

minister, as finance the second change in less than a week. ,s this the latest development enough to restore confidence in the company? uncovering the story from johannes are, a very good day to you. do investors have faith? he has to on the job before, hasn't he? >> yes, he has done the job before. good to -- good day to you. he has deftly done the job before. this is familiar territory. of five years up until may 2014. economy to the first recession in 17 years, that was in 2008. definitely a familiar face to the markets. we have seen it rally today, leading gains among major and emerging currencies, up 6% against the dollar today.

also closing positive, two days of losses. mark: this has been a humiliating five days for the president. can he recover from this? >> yes, a humiliating couple of days indeed. recoveror not he can from this is yet to be seen but what is known as seems unpresidential former president take amember to perhaps decision on his own free will. the ruling african national congress may have come to give and tried to see how can they have -- pass some of the damage. who has been known before in the financial markets and someone who has really gained confidence of the financial markets. he also said today he is trying ask forure agencies and

time to reinforce investor confidence. i have got a quick question about the role the markets played in all of this. we talked about the political maneuvering here in the economic reasons for all of this. talk about the investor classes that led to this change. >> yesterday, talk of a meeting between business leaders and various stakeholders. the president was approached and asked to reconsider his decision , being broughthy back in, he is definitely a voice of reason, a voice that is trusted and a voice ratings agencies have always trusted. a politicale like drive was not at the forefront of him coming back but definitely economic pressure. we have seen them really decline to record lows. week andosses last

deftly the investment community was very much speaking out against the removal of the finance minister before he was replaced by a little-known week.er just last it definitely seems as though the economic market and the sentiment were the driving force behind the minister being brought back. been has credibility restored or not? will it take a bit longer to win back the face of trust to the international community? >> it will take time and we have seen economists say it will take quite a bit of time. to parsesurances, just some of the losses that people have seen, billions were lost over the last couple of days with people losing money with the markets just plunging. it will take more reassurances. some of the headlines we saw today were of people saying that

president jacob was playing russian roulette with the economy. that alone is a significant statement as to how people were receiving the developments here they will take time. he is asking for time to reinforce credibility, asking for time to reinstate and make sure people understand they will stick to the ceiling, they will stick to the consolidation framework. mark: what a five days it has been. drop of they, 1.9% s&p 500, it will be replicated. stocks still trading lower where you are sitting. >> the s&p 500 now down. you look at the dow down .5%. percentage point for the nasdaq. for more, i want to go to

abigail doolittle at the marketplace here in midtown manhattan. abigail: it has accelerated over the last few minutes. the composite index down more than 1%, as you mentioned. a piece of it is gopro. down 70%. more than 70% over the last five months, today plunging to anotherrecord low on analyst downgrade. a team of analysts at morgan stanley cut the rating to underweight and reduced estimates and took the price target to a low of all dollars, saying the likelihood of high in 2016, among other issues, including valuation. there is a high shortage on the stock. some investors are happy. much. thanks so i have been waiting for this all morning. battle the charts. what have you got? mark: you are wheeling out michael mckee. i cannot believe it. in zerois likely to end

interest rate policy on wednesday but our emerging markets -- are they ready? ♪

david: you are watching bloomberg markets. the european it is time now for the global battle of the charts where we take a look at some of the most telling charts of the day and what they mean for investors. mike mckee joins us now. mark barton is still with us in london. mike mckee joins us. we will let you kick it off first. mike: we have all been waiting for this for years or the new star wars movie opens and also a fed meeting. both.k at the earnings of we put the numbers altogether and they earned about $4.4 billion. the fed makes money.

on qe, six years of qe like six star wars movies. look what they have done. fed, $469 billion in earnings. the champ would've to be the fed. what is in it for me? obviously, the star wars franchise has changed hands. if you look at the number of disney shareholders now, divided , you gethey earned $2672 per share. reviews.

battle of the chart title. i will give it a go anywayemerge fed? that is on the fed signals get a rate hike. the emerging market index down by 10%, down for a nice day. trackings, they gauge currency. the orange at a record low on friday. all 24 emerging market currencies have dropped against the dollar since october the 28th. local bombs as well. the gleam want -- the green line since october 28 has fallen by 2.6%. the lowest level since september 29. all three asset classes are according to the

relative strength index. who cares? darth vader has blown me out of the water. the force of enthusiasm is with you and we will give it to michael mckee. mike: moore movies ahead. david: the trophy stays in new york. mark, what are you looking at here ahead of the evening? mark: five days of decline for the european equities today. for the stoxxoday 600. it is the lowest in two months. that is the situation. see you all tomorrow. ♪

>> look into bloomberg markets. ♪ -- welcome to bloomberg markets. ♪

scarlet: good monday afternoon. alix: here is what we are at this hour. partnerscapital shutting down. the latest junk fund to flounder in recent weeks. third avenue, all liquidating high-yield funds. scarlet: president obama meeting to strategize in the battle against the islamic state, expected to deliver a statement from the pentagon. we will have live coverage. alix: expectations are high that the fed will raise interest rates will look at some of the lesser-known fact that have a big influence on the decision. as always, we want to head to the market desk to get a snapshot of how things are started on this momentous week.