anna: good morning from bloomberg's headquarters in london. i'm anna edwards. manus: and i'm manus cranny. these are the top stories. anna: saudi's energy minister says it won't act unilaterally. >> we will only cut if we see a consistent glut emerging. and quite frankly, we're seeing some signs of this coming from the u.s. anna: singles' day extravaganza. the nation's biggest shopping event set a new record. can the chinese committee --

consumer help markets shake off trade tensions? the pound drops. theresa may fight to keep her brexit plans alive under threats more ministers may quit. ♪ manus: great to see you this morning. i'm in abu dhabi. we've had the j mmc and the relief is palpable in the oil market. it's veterans day in the united states, so a little bit of the u.s. heaviness in terms of volume might not be there as the day goes on. but the table is being set, i would say, for potential production cuts. look at wti. first ride in 11 sessions. we've broken the trends. they are temporarily caused. saudi arabia says the demand for dominations. is dropping they are planning to meet that

drop in terms of the deliveries. oil is having a nice bounce. check out the dollar and the turkish lira. we have a note on the dollar. they say there's room for material for them. by the way, charles schwab says u.s. rates could go higher. and turkish lira a little bit lower. four weeks of gains. inflation numbers disappointing. anna, good morning. anna: good morning to you. already, butt this this is just crossing the t's and dotting the eyes this morning, giving us the detail on that one. let's talk more about the markets. you've been through some of the big headlines, particularly pertaining to oil and other markets. i've got to fill in a few of those gaps. msci asia-pacific down .3%, mixed session in asia. point higher after tech

stocks weaker friday. the pound against the dollar is weaker, down below 1.29 now. theresa may fight to keep her version of >> it alive. -- of brexit a life. dollar against the chinese currency, 6.95, floating around the seven level but not quite reaching it. we're holding onto the drop. no progress on trade talks, no change in directions post-midterms. that's the highlights. industrial production and retail sales coming out of china later this week. let's check in on the market picture in asia. yvonne man has that for us. she's in the studios in hong kong. yvonne: a bit of a holding pattern for asia stocks. we are taking a breather today, but not seeing a huge direction call as we start the trading

week. the only thing we can see is king dollar happened to run despite the oil rally we're seeing. with theeing here dollar strength, most of asia assets selling off. that is weighing on sentiment. mixed picture when it comes to equities. the nikkei 225 may be ending .1%. around volume very much thin here today. as you mentioned ahead of that, big data coming out of china. they are bucking the trend we're seeing from what we saw in the wall street session friday. couple things came through. you mentioned that whopper of a singles' day extravaganza from alibaba. $31 billion in sales, perhaps a singles here to the chinese consumer is relatively solid. that's helping things. we heard from the chinese premier over the weekend

stepping up their support to help some of these struggling private sector businesses. and to a certain degree, that has helped. that when it comes to bank stocks, that hasn't been doing well. investors are shocked to hear from regulators there talking about how some of these banks need to be targeting their lending to these private sector businesses, which breeds questions about whether there's a civic duty, whether it's going to lead to the ratios to start picking up again once again. that's going to be a key focus their. we are seeing a pretty mixed picture. not a lot going on. back to you, mannus. manus: let's get to our question of the day from the mliv team. you can join on mliv . it comes down to this. it's about the chinese consumer. alibaba, what a set of numbers. who would have thought they would be so happy? is the chinese consumer a positive or a negative for

chinese stocks? that is the question of the day. join us with that. let's get to debra mao with the first word headlines. leaders from across the world gathered in paris to commemorate the centennial of the end of the first world war, but exposed tensions between the u.s. and europe and underlined growing concerns of reliability of security guarantees under president trump. emmanuel macron confronted world leaders with a call for greater international cooperation. the

internationalism -- isolationism and populism. donald trump will skip several summit in asia. his absence leaves mike pence to fill a void that's grown wider under the current administration, with the white house rolling out of a major pacific trade deal, flattening tariffs on allies and intensifying economic battle with china. pence said trump's decision to skip the meetings wasn't a snow. >> not in the least. he attended last year. and outlined our and a pacific strategy -- endo pacific strategy that i'll be detailing further. look, the president is where the american people will want him to be today, and that is at an american cemetery in paris. debra: as jack ma prepares to set down -- a step down, they launch another record. they earned over $30 billion in merchandise sales. apple, and xiaomi, dyson as far as popular brands. the single day was a bellwether for the chinese economy,

offering a gauge of consumer sentiment amid a slower economy and as letting trade war. the most destructive series of wildfires in california history could cost the state, insurers, and homeowners $19 billion in damages. the carnage could be on par with the type of destruction triggered with hurricane michael. governor brown called on trump to release federal aid a day after the president threatened to withhold funds because of what he called gross mismanagement of forests. 25 people are known to have died and 250,000 have had to leave their homes and seek safety. global news, 24 hours a day on air and at tic-toc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much.

there is a market. at the meeting, once demand is , theing for saudi arabia energy minister is talking about new strategies and the russians say the toolkit is plenty of part from countries greek compliance at 104%. do they show their swagger as the swing producer? oure been meeting all of nominations this june. that means more supply and production will be down. more or less by the same amount. there are pluses or minuses from storage but it should be insignificant compared to the deductions of nominations. manus: are you concerned about global demand?

there's a sense you are concerned about global demand. always, demand is what keeps the market going. supply is important. but really, the driver for the health of the oil economy is yound and without demand, stop the industry from growing capacity to grow and without growth and demand, you end up having to serve industry. we always want to make sure demand is healthy and that's why you hear me always talk about concerns about consumers and producers. seeyes, we're starting to slowing down of demand. it's not a huge concern yet.

of 1.2 million, wellpoint 3 million -- 1.3 million but if we have initial headwind in terms of trade or currency or contagion, god for bid, with developing countries, then we will go from yellow to orange. opec or not opec, are you at whatever it takes mode for this market? is that how we will find your sentiment at the moment? you are proposed to do whatever it takes? >> we've been clear that saudi arabia will not do it alone but we will lead by example. we will help build consensus. we will help demonstrate that we with our words for transaction before our words and we are doing this even ahead of

2019 for global inventories. so we are serious. but no one country can do it alone and no one country should do it alone. i'm not only our colleagues in opec but not opec countries recognize that there needs to be collective collaborative work. the majority of producers. producersone day oil will work together to keep the markets from being damaged by all the supply. so a fair amount of stoicism from the king of saudi arabia. you want to understand what i look like after a scrum? go to my twitter account, one of the worst i've ever done. breaking news. anna, good morning. anna: interesting camera angle. very good.

let's talk about breaking news from softbank. we were waiting for the date. we were waiting for the offer price. the indicative offering price at ¥1500 per share and the date. this is the listing of the japanese mobile unit. the founder has been speeding off and once to spin off the cash cow business so he could keep investing in tech startups and what the company has been interested in. this comes at a time when profits, concerns have been raised about profits in terms of that cash cow. one of the rivals announcing plans to cut rates 40% in response to government pressure. there's concern about the sustainability of the cash cow. we have an update on the timing, december 19. let's talk about where we are in the broad scheme of things with

global market strategist at jpmorgan asset management. she joins us in london to set us up for the trade week ahead. good morning. we still have to trade water -- tread water in the asia session. how optimistic are you for equities towards the end of this year? october was pretty dreadful. guest: it was. it was very volatile, a bit of an interesting moment. have fundamentals changed? have they reflected political or global headwinds facing markets? october was a sign we are towards parts of the cycle where markets will be more volatile. in the next two years, we may face u.s. gross though down. and as an --'s gross slowdown. and s&p markets will have to price that in. we don't believe this period of the past few weeks should be representative of where we go. we still see strong corporate profits in the u.s.

the data looks quite strong and we should expect more volatility, especially with new u.s. markets. manus: let me talk you through the prism of what's happening in abu dhabi and this bounce in the oil price. t is doneink the wors in the oil market? the surplus is temporary and the bear market has run too far? nandini: we would agree probably in that statement in that we think that on a very baselevel, supply is no longer going to be a drag to prices. we'd expect adjustments to arrive at a price more like earlier in the summer, $75-80 per barrel. but the road getting there and the nose on all sides will still be there and we may not be completely done out of the bear market or the falling oil prices of the past few weeks, but we

think most of the worst is over, as you say. manus: you know what? round and round you go. where you end up, nobody knows. i don't know where this ends up. thank you for your thoughts on the market this morning. live from an effect, we've already had a few interviews. this man is going to join me in just over an hour and a half time. it is bob dudley, the ceo over at bt. what does he make of the market? that's in a little while right here from abu dhabi. 2018. ♪

manus: we're live from at of that 2018 in other doubly. let's give you a quick sharpener. up 1.18 percent this morning, the first rise in 11 days. the kingdom of saudi arabia are cutting their exports demand, nominations are down. new strategies is what the ea is looking for. we have a little bit of a turnaround in the oil markets this morning. a break of trend. anna: indeed. we are in bear market territory. msci asia-pacific down .3%, trading lower in the asia session. .9% on 300 is higher, up

chinese stocks. in terms of currency markets, fairly flat on the dollar against the chinese currency. the offshore yuan is held on to last weeks of drop. the chinese currency. a little sign of change to the trade currency. look out for data midweek from china. retail sales and production add to singles' day today. speaking of that, the force seems strong with chinese consumers. alibaba rakes in $31 billion at its extravaganza. theould seem to indicate sentiment is a bust despite trade tensions. joining us is tom mackenzie. what does this record-breaking number tell us about china's consumer? it's a number that we have to handle with care. it tells us about the consumer and alibaba. we shouldn't read too much into them. i will give you a guide. for the top numbers, gross

numbers by it, how alibaba calculates it, $31 billion compared to $24.2 billion at the end of 2017, an increase of 27%. some of these numbers are eye-catching. they say they delivered one billion parcels yesterday over this 24 hour period, and within the first two minutes, they knocked off $1 billion worth of transactions. involved,ands were including companies like apple, but also china's smartphone maker xiaomi, which they say sold $714 million over a 24 hour period. if you look at the clouds over the horizon, you would have tuned in to the comment of the cofounder. there's a waning appetite for big-ticket items this year and if you pay attention to the fact 27% growth compared to 40% growth last year.

domestic challenges for challenges -- china's consumer, wage growth is growing, all of these factors. then the external factors, trade war tensions. the headline number is pretty solid as far as alibaba is concerned. manus: tom, good morning to you. anna has yet to send me my singles' day gift. i am waiting for it. i know it's a big surprise that she's sending me. how challenging an environment is it for alibaba? are there headwinds involved? so certainly the economists we speak to say it's going to be a much more challenging economy. you got tariffs on to enter billion dollars worth of chinese goods, 10-25%. many expect an increase of a cooldown in a real estate sector. consumers may be squeezed.

policymakers are circling tax cuts to draw consumer sentiment because china consumers play a big role in terms of spending out of any slowdown. it's expected to be more challenging next year. alibaba faces a saturated market and increasing competition. anna:, tom thank you very much. at theseed at numbers. tom on the bloomberg just how reliable they can tell us. thank you very much. tom mackenzie in shanghai. today, we're asking the question of the day on the mliv blog. is the state of the mainland consumer positive or negative for chinese equities? you can join the debate. by using this function, i.b..tv go. you can join that conversation.

nandini can do that with us. global market strategist. is it positive or negative for mainland stocks? how much is the consumer in china going to drive? nandini: sure. let's take the first question. let's go to the economy, where the consumer is a positive news for the chinese economy, particularly in this rebalancing period we've been talking about for a few years now. for that, the consumer is extremely important. they've got more wealth now than a few decades ago, what most of the chinese population above the u.n. and the world bank poverty line. so we're coming along way in terms of consumers willing and able to spend. that should be supportive of equity markets. for the medium and long-term, we would answer your questions as yes. new spending habits should do

better than those at the old china fear. but in the short-term, volatility is exacerbated by chinese investors pulling in and out of the market based on short-term use. we think it's not just smooth sailing in terms of chinese equities. if we have to take a question, will the chinese consumer be supportive of equity consumer? the answer would be yes long-term. anna: we will look out for those data numbers midweek. manus: yeah, and we certainly see the levers pulled on the supply-side. what more will they be doing for the consumer to support alibaba and the like? mr. trump, he was in paris. he looked and felt quite isolated amongst allies. we discuss the geopolitical backdrop to trump's latest visit to europe. macron and merkel, of course,

looking very closely aligned. the changing tectonic plates of the global political relationships. right here on bloomberg. ♪

anna: good morning, this is bloomberg daybreak: europe." 6:30 in the morning in london. in asia, this is the mixed picture on equity markets. chinese stocks doing nicely. in japan, looking sluggish. the nikkei is flat positive. the headlines coming out about softbank is the important japanese story. millionsset to raise of dollars from its mobile unit ipo. the ipo will value the mobile unit at ¥7.18 trillion. the 19th, anor early christmas present.

let's get a check on the markets around the world. mumbai,us from across if your in london is maria tadeo. how are the indian equity faring? >> we did see gains earlier. those have been given up. when it comes to india's equity benchmark, it is now trending in the red. we are seeing pressure on account of the largest state-owned banks as well as private sector banks. the indian rupee is seeing strength against the u.s. dollar. the u.s. dollar is declining by 0.5% right now against the ruby. -- the indian rupee. we continue to keep an eye on the state elections as well as

the movement of crude. --manus: maria, let's take it to you. oil production cuts are the big move. saying?the market >> good morning. i'm looking at the oil market today. no cuts were announced, but it does seem they are laying out the work to do that in december. specifically, saudi arabia. this is saudi oil production. capacity has been flat. preparing tobeen make those cuts to ask ports -- to exports. the big concerns have been oversupply. everyone who can pump has been

pumping. prices are slumping into bear market territory. my next chart looks at volatility in u.k. stocks. this is a big week for brexit. theresa may's meeting could get the u.k. closer to a deal, but entering a dangerous space. traders are pricing in more volatility. my redline line is the highest has been since july when theresa may put the plan on the table compared to u.k. and euro stocks traders see a lot more threats in u.k. stocks on brexit. thank you very much. the very latest on oil volatility at a two-year high. the bears are in charge. has set the table. i'm here in abu dhabi, so was mr. novak.

we got a chance to sit down with alexander novak. the russians sent a very clear message. we are too upset about cuts. it is too early to talk about that. take a listen. is actually a very important meeting. we have looked at the market situation, but more importantly, we have studied scenarios of how the market can develop. many of those scenarios show in the first quarter, the first half of next year, we are looking at quite a highlight of production. we have not made any final decisions including in relation to the topic you mentioned. tobelieve that we need analyze the situation in more detail. that will explain why.

as early as one month ago, everyone had been talking about production. people were afraid. decisions.ot rush we should not be driven by immediate volatility. the kingdom of saudi arabia saw their nominations for december decline 500,000 barrels. on the demand side are you seeing a similar decline? >> i think we should not only focus ourselves on one. month. we should be looking at november, december, the dynamics of demand. >> the demand for russian oil: declining? rising? >> demand is stable, but historically so. our relations are governed by a long-term contract. manus: when the discussion about

cuts comes, will it be in the december opec meeting when there will be a full or discussion? >> i would not want to focus on production cuts. say i think we have to wait and see how the is unfolding. our ultimate goal is market stability. i have stated on numerous toolboxs there is a which allows us to increase or decrease production. we can use it either way. depending on what the goal is. the goal is market stability. i think paste on the questions from journalists and the market, foreems to me the demand this information is a bit over exaggerated. let us wait and see. costs.not excluding i just would not want to put an

accent only on this measure. manus: to close the conversation saying, saudi arabia is they are prepared to lead. how much is russia prepared to -- 100,000? 200,000? what is mr. novak's redline? >> i do not think i would like to mention any numbers yet. as you can see from the past two years, we have always had a very pragmatic approach. we have been acting in the interests of russia in the market and always continue doing so. manus: is the step one a freeze? >> i would like to say that we have a number of options. we can increase, decrease, or keep production flat based on what needs to be done.

manus: the russian oil minister. our guest host this morning in london. lineou help translate this am across oil market? it depends whether we rally, but there could be a consequence. what does it mean for emerging markets? >> the big story has been a differentiation between emerging markets across the board. much of that based on external vulnerabilities, one of which is the current account deficit. india, a low like oil prices a good thing. if we continue in this downward market, that could help turkey, who has had a rough year. our base case is that oil does rally and settles at that $75 to $85 a barrel range.

our original thesis focused on east asian countries as the best way to play the market does of that consumerism and tax story. needless to say, what the oil price does for the end of this year is crucial for the emerging markets story in the near term. anna: i'm going to ask about inflation. the impact it has on the consumer picture. i have a chart here. this ties into inflation expectations in the united states getting weaker as result of a week oil price. is this something that is going to influence fed trajectory? >> if inflation does come down because of oil prices, it would be too soon to say this works through, but if that does happen, perhaps the fed can argue about inflation pictures. broadly speaking, we have seen it half the fed has laid out and we expect them to do one more rate hike december this year and

three to four more next year. given the real strong sense of robust economic growth in the u.s. and the fact we are nearing that end of the cycle playbook in which the fed should be doing a steady rate hiking path rather than holding on the here and the markets get away from that and start feeling nervous. a steady path of three to four next year's in our base case. i know it's one of those ,reas you perhaps marked down is 2019 going to be equitably as tough as china slows down and oil prices remain around this kind of level? is there unit the anger for europe? >> the story with europe this year has been positive expectations for growth, various issues have come to play highly -- a higher oil price, a slightly moderating chinese growth picture, politics as well as the fact global trade tensions were escalating. if any combination of those

start to ease, perhaps the chinese stimulus is working and you are seeing larger demand for european goods out of china, those things can change. on the broad sense, the economic picture in europe is going to be challenged. we have other idiosyncratic risks like auto producers in germany facing testing regimes. there is a lot playing european growth story. there is potential for those to change. the european and chinese trade picture looks stronger. a lower oil price could help. have thatment, we do marked down for slightly lower growth than originally anticipated 12 months ago. anna: thank you for your thoughts this morning. the global market strategist at jpmorgan asset management. let's get to global geopolitics. the risemacron slammed of nationalism as leaders met in paris to mark 100 years since the end of world war i. he used the occasion to

criticize policies embraced by donald trump saying, nationalism is a the trail of patriotism. angela merkel warned the world is regressing on human rights. joining us from paris, bloomberg's annmarie hordern. very good morning to you. the weekend is starting with a public spat between trump and macron. did the to make any progress? >> good morning. before angela merkel and president macron spoke yesterday, president trump tweeted that president macron's earlier comments to a local radio station about european defense, president trump called them -- the two gave a thumbs-up and they seemed to have come to an agreement on the fact that president macron calling for a stronger army goes hand-in-hand with trump calling for a strong nato.

i spoke to the secretary general of nato about this. take a listen. strongere speaks about european efforts on defense, this is within the framework of nato. i welcome more european defense. it is not an alternative. this is not a problem. point of another tension president macron brought up and that is about the intermediate range nuclear forces treaty president trump plans to withdraw from. macron says allies should have been consulted. week, center stage of the president macron was commemorating the 100 years since the armistice was signed, the end of world war i.

he took aim at trump and his ideals when he attract -- attacked nationalism. angela merkel did the same. the front rowg had president putin, president erdogan, but missing president trump, headed back to the states. manus: certainly that twitters for -- twitter spat everybody to see, let's see how those relations continue, or not as the case may be. next up, it is mr. stephen ashley. he is the global head of investment banking and markets at nomura. banks, that is next. ♪

anna: this is "bloomberg daybreak: europe."

let's check out what is trending. first we go to twitter and tictoc. companies are uniting in hong kong to put an end to the sharp -- in trade. bloomberg.com, the launch of rockets in new zealand promises a new era for access to space. our most read stories on the bloomberg, third-place, california faces the most distracted series of wildfires in its history. pressure is building on theresa may. president trump appeared isolated after macron slammed nationalism during world war i commemorations. we heard the details before the break from annmarie hordern. let's get to the business news. densely humphrey has an update. >> as jack markell pierced to step down, alibaba has not -- has another record. -- jack ma

down,epares to step alibaba has another record. offers a gauge of consumer sentiment amid slowing economy. software giant sap is buying call tricks international for $8 billion in cash. last month, they filed for a u.s. ipo. it will operate as an entity within the cloud group after the deal closes. is seeking to raise over $21 billion in ipo for its domestic telecoms operation. the japanese technology conglomerate place is a 1.6 billion shares at ¥1500 apiece. the company's founder is

spinning off the company's cash cow to raise capital to keep making investments in tech startups. veritas capital and elliott management are said to be close the deal to acquire -- transaction could be announced as soon as monday. shares closed just above 120 dollars a share, valuing the company at $4.9 billion. that is your bloomberg business flash. matt: thank you very much. the americans are doing it. raising rates, that is. and reducing their balance sheet. the rest of the world would like to be able to do the same. in japan, just a distant dream. we bring in our next guest, mr. stephen ashley, the head of wholesale and global markets at nomura.

great to see you this morning. thank you for joining us. the americans are doing it. the germans would love to. the europeans would love to. the japanese, it might be a distant dream. as you look at 2019 and the global central bank landscape, what is the biggest issue we should consider as we go into the start of next year? welcome. >> thank you very much. pathed is on a preordained to raising the policy rates next year. well continuing with its balance sheet reduction. and purchasing at the end of this calendar year and look to raise rates in 2019. japan, more challenging. they have a consumption tax hike due in october 2019. i expect monetary policy to remain very accommodative until mid-2020.

anna: a very good morning to you. picking out a few areas we have seen independently, the big question is whether the fed can land the economy softly. we spoke last week to david solomon of goldman sachs. he said the biggest worry for him is overheating in the u.s. economy. is that a big worry for you yet >> it is a concern. running at the height his promise to decade, definitely i think inflation is beginning to slowly move up. i think of great concern for me is not overheating, it is the budget deficit. there's a lot of -- the level of unemployment is 3.7%. the extent of the budget deficit, we saw a slowdown, that budget deficit is going to move up rapidly. anna: i will jump in.

we are having communication difficulties. talking about the budget deficit, i was just talking about how breaking even for the united states is coming down with the oil price. we talked about higher bond yields and inflation expectations. the oil price gets everybody thinking. what impact will the oil price have on inflation? >> in the scope of things i do not think a massive fall in the oil price. oil and commodity prices remain steady throughout 2019. i'm not concerned about an immediate reduction. think it willi trenchantly higher. what is looking for an inversion of the yield curve. it might indicate a recession. at the moment that does not seem to be the case. anna: when you talk about

recession, what time horizon do you have that conversation over? do you think this could happen within the next two years? >> i think the fundamentals of the economy are still strong. clearly we are coming off a strong growth phase kicked off by the trump tax cuts. growth is understandable. we would not have the likelihood of recession until 2020 or beyond. stephen, i'm back. tell me this. in terms of the inflation targeting that we have around the world, two percent, you and i were chatting and you said, is a limitis if 2% we should have around the world. why do you question that so?

>> i think it is realistic to think 2% or plus inflation targeting is possible. throughout many centuries, inflation has been around zero. the times it has increased dramatically has been time of global or geopolitical stress. with the economy, i think it's almost impossible when countries like japan to achieve 2% inflation. anna: if inflation is too elusive, what should central banks target? -- the concern of there being deflation, a lower target rate, 1.5% is more -- anna: still target inflation, but make it more realistic? quests exactly. -- >> exactly.

i think for every central bank as well. maybe downges are the road that we have of accommodation, which is not certain, although challenges may turn out to be. focusing on an achievable inflation rate is how to avoid those pitfalls. manus: stay with us. i will join the conversation with you very shortly. steven ashley over a number of. much more to come. over at nomura. much more to come. we see the pound flip this morning and the political wranglers in westminster beginning to bring. you thought you had a rally in

the pound last week. stephen ashley- continues the conversation here on daybreak europe.

manus: i am manus cranny live in abu dhabi. anna: i'm anna edwards live from bloomberg's european headquarters. these are today's top stories. manus: curtailing crude. oil gains on the prospect of opec curbs. energy minister says it will not affect unilaterally. singles' day -- >> we only cut if we see the system glut emerging. quite frankly, we are seeing signs of this coming out of the u.s.. and the pound drops.

theresa may fights to keep the brexit plan alive amid fresh reports from the ministers who may quit. anna: this is bloomberg daybreak: europe. 8:00 if you are in paris or berlin. let's have a look at where we are on the european futures picture. it is a holiday in the united states which means there is no treasuries trading. we will have stock trading later on in the u.s.. futures are looking positive. we pick up on that in europe. futures, dax futures, cac futures all point higher. in friday's session we saw tech stocks under pressure in the united states. quite nicely.rket

questions being asked about trade tensions, how long the renewed optimism in markets we found miraculously in november, how long that can last. on the currency markets we are looking at the pound, little bit weaker this morning. a lot of focus on prime minister may as she fights to keep her brexit plan alive. and the u.s.,rs that is closed. we have futures trading, but the treasuries market is going to be closed until later on today. here is the picture across the bond markets. broadly we are treading water, working out where the next move comes from. looking ahead to data coming out later this week from china. let's check out market action in asia. may have has that. -- yvonne man has that. >> most of asia and the things lower. japan flat on the nikkei. the kospi also heading lower.

king dollar showing room to run despite that rally in crude we did see snapping 10 days of losses for wti crude. you are seeing for most of the region. did hear fromwe chinese officials on friday talking about how they still want to provide that support for private enterprises and private sector firms. also that whopper of a singles' day for alibaba. consumer ischinese not collapsing. we are seeing solid signs of growth. that is helping sentiment overall. the csi 300 ending the day up 1%. we did hear some news as well over the weekend about targeted lending. private lending to some of these struggling enterprises here. a rare move from regulators saying sanctions set aside for loans for the private sector, the bank stocks took a hit on

friday and we saw that once again here today. prompted officials to come through today saying, it's not about targeted lending. it is more about due diligence. that's not helping banking stocks. oil price higher, up 1.2% in australia. simpson biologics is an interesting one. the futuressaying commission is going to make a final ruling on allegations it violated accounting rules. mining down 18% in japan today after the company slashed their targets for the full year when it comes to profit. a producer of nonferrous metals like copper. a bearish sign. back to you. manus: thank you very much. let's get to the mliv question of the day. you can join the mliv team.

given that you have just had ,libaba's really stocky numbers this is your to od -- qod. is this positive or negative for chinese equities? are they brave enough in terms of that? positive or negative for chinese equities? those are your questions. to a business flash. >> leaders from across the world gathered in paris yesterday to commemorate the centenary of the end of the first world war. the weekend exposed tensions between the u.s. and europe and growing concerns about security under president trump.

concerns were dismissed over president trump's commitment to the western alliance, but said he welcomed more defense efforts in europe. >> the important thing for me abouten he speaks stronger european efforts on defense, it is within the framework of nato. i welcome more european defense it is not an alternative to nato. >> donald trump skip several key summits in asia this week. u.s. presidents absence leaves mike pence to fill a void growing wider with the white house pulling out of major pacific trade deals, slapping tariffs on allies, and intensifying its battle with china. en route to the region, pence said trump's decision was not a snob.

the most destructive series of wildfires in california history could cost at least $19 billion in damages. the carnage caused by the fires could be on par with destruction triggered by hurricane michael. governor jerry brown called on president trump to release new federal aid after the president threatened to withhold funds because of what he calls gross mismanagement of forests. 25 people are known to have died and a quarter of a million have had to leave their homes. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: nomura paid almost nothing for lehman brothers back in the crisis. in termsecently said of developing the bank. the person in charge with ofning wholesale institution

the business, it is steven ashley, the head of global markets. he joins anna and i this morning . this is one of those really tough jobs. running this side of the business. where do you want to make the more -- make nomura best? >> investment banking is a tough business. inare facing a decline global wholesale, and that is led by the income markets that have declined. with that in mind, we are focused on doing what we do best, which is connecting markets east to west and ensuring we are at the center of currency flows between those as well. regulation is something

in and i touch upon with people who run institutions on the business side with you. regulations mount and there are endemic costs with that. is that one of your biggest headwinds to the structure you want to put in place? how do you look at that? >> certainly the cost of complying with regulation is very challenging for a medium-sized firm like ourselves. the only response for nomura is you cannot be everything to everybody. we stay focused on core products and services. manus: if we take it on from that, if we look at the landscape, we have just gone through the reporting season for all the americans, the europeans . when you look at that landscape,

america versus europe versus asia, let's say, are we going to go into a period of change again? you said this business is about scale and you mentioned what is going on with america and europe. give me your perspective as you look at the three different parts of the world. the top three firms account for a quarter of that. there has been a concentration amongst the very large-scale. that is not necessarily a good thing. i think we saw that through the financial crisis. diversity of counterparties across the world, it is clear the u.s. central bank has enjoyed significant profitability more than its european and asian counterparts. that is due to the performance of the u.s. economy versus the domestic economies of europe and asia.

>> hold some of those thoughts because we are to continue our conversation in just a moment. steven ashley is the head of wholesale in global markets at nomura. anna, you have a special guest. anybody who is involved in banking thinking about brexit here in europe right now, pressure is building on theresa may to ditch her brexit pan -- plan. eu have beenhe edging toward an agreement after 16 months of talks. the aim is to get a deal wrapped up at a summit in november. fading. seems to be joining us now from berlin is the mayor of london. great to have you on the program once again. tell us what message you are taking. >> it's good to be back. i have been quite clear since i have been. we are global city. , i key message i'm taking

will be meeting the finance minister, the mayor of berlin, meeting german businesses, england is open to trade, talents, to investment, to business, even if it is the case we leave the european union. that's not going to change. the access to a fantastic talent pool, a system you have in london which is financed by tech and culture and lifestyles, the world's best universities, it is important i give that reassurance to german businesses from bosch to bmw, from the banks who do so much business in london. the deal prime minister may is negotiating is at the best a bad brexit deal and that worst we could be in a situation where there is no deal whatsoever and no circumstances where i say to the prime

minister she should give the public about for the first time whether they accept those negotiations with the option of staying in the eu. she has ruled that any other referendum on brexit. how will labor mps vote on theresa may's plan if she achieves one? how do you think labor mps will vote? will they vote for her plan or will they vote for no deal? >> nationally, when you think of likel, it includes things a single market, a similar relationship with the eu as a customs union, making sure we have a protection of workers angel, it is quite clear prime minister may is those -- a away from

deal prime minister may is negotiating, -- so if theresa may gets her cabinet to accept that deal, manages to persuade her party, and the mps of all , toies, not just labor mps ask yourself, what is good for our country and what will make life easier for your children and grandchildren? if youo to realize, think this should be rejected, reject the deal, let the public have a say in whether they consent to this deal with the option of staying in the eu. anna: voting against the deal might be in until brexit. and that something labor mps should be compared to vote for. >> this is important. any motion the government puts down is able to be amended by

parliament. either of us taking control did not mean the executive has all the cards in parliament has no cards. the discussion is whether it will be possible to amend the motion. it cannot be taken or leave it. it has got to be, we will negotiated or we will let the public have a say. the worst of all worlds is no deal, which would be catastrophic. it is really important that speaker per cow allows mps the opportunity to amend the motion. anna: will there be time to send prime minister may back to brussels to do a different deal? >> i met with michelle barnier 12 days ago. negotiating on behalf of the european union. now, you will be

aware prime minister may might -- article 50, which means the clock is ticking. we have two years. march 29. what i said to michel barnier is he should be doing work now on the extension of article 50. or the experts we've spoken to including the drafter of article 50, they say is possible to extend article 50. if it is the case the eu does not want a hard brexit, that for london, that for the eu. i'm hoping the eu accepts the extension of article 50. anna: did michelle barnier give you any indication it is possible? he's going to keep his cards close to his chest. , for is a possibility of example, the british public having another say on the eu with the option of staying, of

course the british public may decide to accept the deal negotiated a prime minister may. bear in mind the consequences of no deal on the eu, also my country and my city, i'm sure the eu realizes it is preferable to extend article 50, which it is possible to do, rather than a situation where there is no deal. the consequences include 11:00 , those europeans, more than 3.5 million in my country are in london. michel barnier and his team, also the british government will realize it is the case the theish parliament rejects deal, amends the motion so it'll as the british public the first , then the negotiations except thing to do is extend article 50 to allow more time.

anna: thank you for joining us from berlin. the governor of london. manus. manus: stay tuned with bloomberg. the pemex ceo joining us after 8:00 a.m.. steven ashley from number of. -- nomura. ♪

manus: welcome back to daybreak. we just heard from the mayor of london talking about brexit. steven ashley is our guest host. he is head of wholesale and global markets over at nomura. brexit is incredibly relevant for you. there's only a couple of months left before britain plans to depart. you need to be battle ready or

hard brexit ready. how much do you think at this juncture you have to move from nomura in london to be hard brexit ready? firstly, we have to be prepared for every eventuality. that includes hard brexit. withins of actual people our operation, we are looking to send somewhere between 50 to 100 people from here to the continent as well as a number of folks we have hired locally. you have spent your career, a global career, in various centers. how much of a fraction for our domestic market, from the city of london is this brexit?

once you move human capital out of the city of london, it is quite hard to get you back. >> it's a great question. we have all been used to financial centers was in europe. that is fractured in terms of the talent pool, but also liquidity. it is not a great situation for the european economy. financial centers are more than just their ability to -- they are people gathered together over hundreds of years. that is the case in london. there is a whole ecosystem around the financial services sector that may be does not exist elsewhere in europe. whether that is insurance or public services or legal services or the like. selfshadow of its current

will the city of london calm? what are you planning for? has always of london had the ability to adapt. i'm not concerned. ist i am concerned about liquidity in european products. fitting one within london and one within the continent. the pricing of those products would be very damaging. oftentimes when we look at liquidity between markets and between centers, there's always a discussion about what liquidity risks we can have as a result of brexit. is that something that is particularly pressing on your mind? i'm thinking in terms of execution, the various areas we have across your world.

>> i think as i just mentioned that is a great concern of ours. i would not see liquidity fragmented. and not just for ourselves but for every european calls forve separate n funding is very dangerous -- capital and funding is very dangerous. tohink it is hard fast-forward to understand what we are -- what will be the effect on financials themselves. where cable would be or where u.k. interest rates would be is tough to predict. but look. there is room for the currency to struggle in that type of environment. there is room for the

currency to struggle, yes. the pound against the dollar, down 0.8%. thank you for joining us. steven ashley, head of wholesale and global markets at nomura. very topical we had that conversation with sadiq kahn. manus: i think they both touched very clearly on the biggest ,isks for our markets at home which is about the risks in terms of dislocation of markets. and in terms of the people, human capital. cable is offered. it is a busy one here. they are a bit like number nine buses. where going to have the time next ceo very shortly. and of course bob dudley joins me just after 8:00 a.m..

we're going to talk oil. anna: indeed. european equity markets called a little higher. treading water in the asian session. ♪

anna: welcome to "bloomberg markets: european open." i am anna edwards alongside matt miller in berlin. matt: stocks are mixed in asia. futures point to a from start for equity markets in london and new york as investors assess whether the recent rallies can endure. cash traded less than 30 minutes is less than 30 minutes away. anna: cutting crude.