>> from bloomberg's european headquarters, i am nejra cehic. the spanish opposition. pedro sanchez says he will vote against the brexit plan. the pound hold on. a new alliance. reviewingking to be its shareholder structure. and goldman sachs faces fresh question given lloyd blankfein -- fresh questions. good morning, everyone.

it is 6:00 a.m. in london. welcome to "daybreak europe." the thanksgiving holiday going on, u.s. stock markets and bond markets closed. half days for equity and bond markets today. equity trading will end at 1:00 p.m. eastern time. indicatingthe move, when markets do open, we could see losses of a modest kind. nasdaq futures down a little more. meanwhile, oil taking a hit. below $54 a barrel. a weekly loss. saudi arabia signaling output may have reached a record. brexit deal draft

on the future agreement. something to look forward to. we will bring you the latest and the potential stumbling blocks. oneid see sterling spike as -- as much as 1%. holding on to those gains. you from to bring italy. looking ahead to the european bond markets opening in an hour. urging dialogue with the eu. wanting to stop the back and forth. one of the deputy prime minister's saying, no cuts to key reforms. speak to the ceo of macy's. that conversation at 2:30 p.m. u.k. time.

for black friday. markets in asia, juliette saly has more. trading today. japanese and indian markets closed. from wall street, we were expecting a quiet value. the asia-pacific index, down . chinese markets, plunging in late trade. hong kong market, off 0.7%. we did have a report suggesting its trades ramping up dispute in terms of tech. i.t. a lot of weakness in stocks. also, health care stocks. asx 200 closing higher. t in singapore

slightly firmer. withead, competition alibaba leading to wider losses. to the upside, you have seen some good movement off of rail stocks. we are hearing it is worth about $4 billion. up for the first time in five sessions. they say they are not cutting costs for the research and development unit. nejra: thanks so much. just got to wait longer before you can get to those black friday sales. we are asking what are the biggest market discounts? you can reached out to us. we will also be discussing that with our guest host at this hour. let's get the first word news.

renault and nissan have reiterated support for their alliance despite the firing of carlos ghosn. there was strong backing for what they call a winning cooperation. stabilizing the current structure is the best way forward. voted ghosn tod dismiss --voted to dismiss ghosn in contrast with renault. >> we had a long exchange about renault nissan as an enterprise. what is important is the preservation of the alliance. the group's turbulent and that should not be allowed to weaken the alliance. and threaten jobs. says then ceohs lloyd blankfein held a meeting.

this follows a new york times report that they are investigating the meeting as part of a criminal investigation. goldman says they raised money without knowing it would be diverted. the seventhfor weekly loss after saudi arabia signaled output may have reached a record. the energy minister said the kingdom is pumping an excess of 10 million barrels a day. the cryptocurrency crash of 2018 is heading for the worst week yet. peersn, and also the tumbled. the worst five-day stretch sent script of mania -- crypto mania.

they have been mired in a $700 shows fewut that signs of abating. global news 24 hours a day. powered by 2700 journalists and analysts. this is bloomberg. debra mao in hong kong. let's turn to the top story. the u.k. and european union have agreed in principle to the final part of their deal. a draft that hands theresa may wins. cabinet andher announced the deal. >> i will return to brussels for meetings with president uecker -- junker. the british people want this to be settled. deal that setsd us on course for a brighter

future. that is within our grasp. the pound surged yesterday as investigators saw one of the final pieces of investigation fall into place. now, maria who has been following the story in brussels. great to see you again and thank you for covering this. are there enough concessions to appease critics? i spokeof the analysts to told me two things. it is vague enough she can say this is a good deal for the u.k. there is the trade live relationship -- trade relationship. itre is a line that shows will be something the u.k. will handle differently. it is something she kept going on and on about.

at the reaction, the opposition argues they do not like it. they don't think it is a clean break. that both sides would agree to it. the with drawl agreement, not the future relationships are binding them. the numbers do not looking good but she has a good point. this is the only deal on the table if it gets voted down. you could argue the whole process will be called into question. meanwhile, bloomberg reporting with some members of the eu 27, they were not aware this deal had been leaked. will they be fully united? will they agree? it caught by surprise a

number of countries. you have spain, which is the biggest sticking point. we would get to friday in a position with a member state that is publicly arguing they will be vetoing this deal. spain said we don't want to talk about be does but we are unhappy with the tax. -- text. the spanish are serious about not voting. can they derail the entire process? the answer would be no. it is unlikely to have a text not approved by members. everyone is caught by surprised. difficult to say this is successful if a member state votes against it. joining us now is a senior investment strategist.

great to have you. poundtalk about the surge. you can see investor sentiment is the most bearish since the referendum. our markets actually oferpricing the possibility a good outcome? >> there has been a range against the euro and dollar. observation is brexit is important for europe. when you look at the exchange is relevant tot look at european currencies. i think is incredibly relevant. tighterling has been ranged for the year.

it does not suggest a huge underperformance, but european currencies will benefit from a positive outcome. my view would be the country will fall in line with the major plan. if we don't get the -- nejra: if we don't get the good outcome, there is a possibility of a second referendum. the a second the worst for pound than the first? >> markets like certainty. not just in brexit but political outcomes. the concept of going to another referendum or another election, general election, introduces volatility. the pound is not going to be higher.

i think it is important to understand the market remains relatively optimistic about a deal. it will be unknown. in general, the pound is down. i would not say we are expecting the market for a negative outcome. sterling credit has come under pressure. shows are please bonds climbing back. blackrock the looking for opportunities at any point related to brexit? >> de-risk on risk off nature,

the banking sector, also caught up in that chart. we have had dramatic widening in spreads. that gets reflected quickly in a volatile way. we believe in yields that are available. they are tractor for investors. alliance.up, a new reviewingking to be their share structure three now. later, the ceo with macy's. and tune in to bloomberg radio, device.your bloomberg we stay with you even when you are on the move. this is bloomberg. omberg.

nejra: theresa may will try to oppositional to

leaders. >> i am determined to do a deal. let's get a check on the markets. india today. weakness in asia markets, particularly the hang seng. meanwhile, cable holding on to the gains from yesterday, jumping significantly. on some optimism around the draft brexit deal. u.s. futures point to a lower open. bond futures not getting a lot of direction. a half day of trading for black friday. we are asking the question, what are the biggest discounts? you can join the debate. bloomberg business flash.

>> the u.s. government is reported to be contacting key allies. the wall street journal says officials have been briefing for including ints japan, germany, and italy. largest the second maker of smartphones. companies are among those said to be competing for a at $8 billion. the deal may not be announced until next year. says lloydhs blankfein held a meeting with

the malaysian financier. that follows a times report prosecutors are examining this as part of the criminal investigation. that is your bloomberg business flash. thank you so much. nissan is said to be seeking a review. this is after the board voted voted to dismiss the chairman. this has laid bare resentments between the biggest carmaker. what does this mean for the carmakingthe biggest alliance? good morning. tell us if there are new details looking through on local media? them?d to claims to oust

>> that has been the speculation. this was some sort of palace coup. i have to tell you, there is no hard evidence that was the case. prosecutors have been tightlipped. most of what we are seeing reported is what has leaked out from the companies themselves, the board members. that would be the best location for this. reportingwspapers prosecutors are looking at a new criminal charge related to the reporting of income. $27 millionis near worth of unreported income. may be in the dock for.

there is no clear-cut case. no smoking gun that would show this is a palace coup. unfolded, both the prosecutor and nissan itself playing it tightlipped, that is the way it goes. --how are investing investors reacted? reactions. a surprise to see the shares have not tanked. the last couple of days, the shares closed higher. that suggests investors are not yet convinced the departure would lead to the final destruction of the alliance.

the alliance will have a hard time deepening. will have a hard time improving positions until this case is resolved. betting it would dissolve completely. so far, we have not seen that reflected in the share price. nejra: thank you so much for joining us. send aernment may response to the eu after the block rejected the 2019 budget. spending will be monitored to guarantee the deficit to gdp ratio is respected. be excessive.to we are looking at a handle on

the spread. earlier, we were talking about investors underpricing potentially positive outcomes. investors underpricing a bad income when it comes to italy? >> you can look at it in a number of ways. yield, unchanged spanish and portuguese bonds. there is a premium priced into the tiny and bond market. the important part is the premium stays stable and moves materially higher. then we get into a situation where investors start to question the ability of the country to finance itself. the type of conversations we are getting between the italian government and are important in terms of stabilizing the relationship. this is a headline sensitive instrument. how illiquid the

market has been. nejra: how close are we to a tipping point where we get to a point and then the bonds go into freefall? need it to move higher from here. 20 basis point rally over the past a two days. the market is volatile. it is important we get stabilization. italy trades north of south africa. the market is concerned about the country. not savelly, you do european sovereigns. are they attractive and italy? >> the volatility is high. the position has to be relatively moderate. liquidity has been poor. in italyat yields

versus spain or portugal. italy looks more attractive. tradewas an interesting to be position long italy. italy,e volatility in you have to be careful. the liquidity has been poor. nejra: why is in the market putting enough pressure on the italian government to back down? >> they put some pressure. it is important to realize the italian government has eighth line balance they have to work. they have to balance what they said in the election versus the european union. the market has put some pressure on. hiel stays with us. where should investors shop around? we will discuss next.

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happy friday his markets. japan and india close. 1.8%. a beating, down australia in the green. let's check in on the broader markets. how bearish our investors on sterling? we saw the pound jump. was jumping. that is the spot price. what traders are pricing in four is the fact they don't think prime minister may can get the votes to get the deal through. they are looking at what happens when this goes to parliament. the premium at which the pound

--hes trade over calls reversals, which you can see here, expected to capture the date of the vote. it is all about the vote. on the oil for, we have to look at what is happening. seven weeks of declines. this comes after yesterday, the saudi oil minister signaled output may have reached a record. that is the strongest indication we have heard yet of how close a record they are producing. we are seeing an excess in rise in u.s. stockpiles. that will put downward pressure on the price of crude. we have seven weeks of declines. thank you so much. today, we are asking the question, what are black friday

's biggest market discounts? you can join the debate. let's get the first word news. with debra mao. thank you. the u.k. and the european union have agreed to the final part of their brexit deal. they set out a vision for close economic ties. as investorsged saw one of the final stages of negotiations fall into place. challenge is to convince a parliament to back it in a vote. >> i will return to brussels for further meetings with president will talk about how to bring this to a conclusion. the british people want this to be settled. they want a good deal that sets

us on course for a brighter future. that is within our grasp. >> renault and nissan have reiterated its work with their alliance. there is strong backing for what they call a winning cooperation. stabilizing the current structure is the best way forward. dismiss ghosn. >> we had a long exchange about as an enterprise. what is interesting is the preservation of the alliance. the group is going through turbulence and that should not be allowed to destabilize the alliance and threaten jobs. held a meeting with a malaysian financier.

that follows a new york times report prosecutors are examining the meeting as part of a criminal investigation. the european central bank says uncertainty over the rule budding -- busting budget threatens to damage the economy. the current financial conditions are far too tight. a tight bonds have risen this yieldsut 10 year remained higher than at the start of the year. kwak should they decide to accept recommendations, we will accept prolonged implementation time. this, to reduce the public debt. news, 24 hours a day.

powered by more than 2700 journalists and analysts. this is bloomberg. debra mao in hong kong. here's a look at what you should be watching. friday, ak traditional start to the holiday shopping center in. -- season. also today, governor kuroda travel to china where he will meet with china officials. that is that 2:45 u.k. time. let's turn to credit. thestors in virtually every -- corner of the market are poised to lose money. u.s.is in comparison with

counterparts, according to the bloomberg induces. weakness has not been limited to investment grade. let's turn to our guest. let's start with a chart that sums up what happened. showing the spreads, global investment grades at their highest since 2016. it says, paying a premium elsewhere. stress, is that the right word? >> we have seen material widening. this is clearly a poor month for spreads across the spectrum. we have had weakness in high-yield. the oil price falling having something is do with that. there has been a lot of

volatility. it has manifested it self in wider spreads. byis not a situation driven mess in the -- massive widening. i think that is something we are looking at closely. in the question of the day. it is black friday. a black friday appropriate question, the biggest discounts in the market this black friday? invested --is the investment grade credit market looks to be much cheaper. relative toat it high-yield or emerging markets, it has widened on a relative basis.

we begin to think that is attractive asset zone. grade.ok at investment would high-yield not be more attractive? >> you cannot necessarily compare them one to another. the credit quality is much higher in investment grade. we look at the widening we have had. high-yield is attractive at 7.5%. if you look at it with investment grade, the widening has been more attractive. are investors unfairly punishing high-yield? some have come out in defense and said some of these committees do not look bad at all. kwak's the high-yield market has

been resilient. the widening has come and the last month or so. we'll prices being an important part of that. the high-yield market looks relatively attractive at these levels. it has not have the -- had the widening we have seen in the investment market. >> the next question is how much further do the spreads have to widen? >> it is hard to tell if the market has been volatile. find these assets attractive. we are going to be in a position for tighter or stable spreads. the volatility has been extraordinary. have seen,g we particularly in an all in yield you can build a

diversified investment portfolio that yields 5%. >> you have taken this global. everything has been swept up in this. europe and asia. is there a particular part of the market that looks more attractive? would you be looking elsewhere? >> we have seen weakness in asia. noticeg markets, what we the sub investment grade component trades at 600 over. we have had a big widening. asia gets caught up in that. these spreads are starting to look attractive, particularly with a higher treasury yields. you can get 5% with a high, diverse afford -- diversified portfolio. nejra: these days of with us.

and coming up, goldman sachs confirms the former ceo only meeting with the malaysian financier alleged to be at the center of the scandal. black friday, breaking down the numbers behind the busiest shopping day. when you are traveling to work, bloombergo tune into radio in the london area. this is bloomberg. ♪

nejra: let's check in on what is trending across the bloomberg universe. u.s. retailers are cashing in on black friday as sales expected to pass $1 trillion. theresa may's deal headed to

parliament. everyone agrees she will probably lose the vote. the most read stories on the bloomberg terminal, pro-government saudis calling for a boycott of turkish products. lossesplace, crypto nearing $700 billion. and the top story, president xi haved gigi paying -- indicated they are ready for a meeting next week. lloyd blankfein indicated they with-- there was a meeting a malaysian financier. probing thels are meeting as part of a criminal investigation of the bank.

goldman sachs worked on three $6.5sales that raised billion. they have previously said they believe the proceeds from the debt sales were for development and they are not accused of wrongdoing. the new york times cited unidentified people familiar with the matter. great to have you with us. why is it significant he had a private meeting? known he met with malaysian officials. this is the first ever hearing it was a one-on-one meeting. goldman is denying it. they invited him. definitely a one-on-one meeting according to goldman. flax a former malaysian premier had meetings.

what does he have to say? saying last night the auditors and the lawyers should be taking responsibility as well as goldman. if the money did not end up there. he is not accepting as much blame for the wrongdoing as there should be. the job making sure the funds went where they were supposed to go. what is the likelihood we see a resolution soon and this saga? -- in this saga? >> not likely at all. countries one of many probing. money embezzled from the fund. we have a long ways to go. it doesn't help the information is coming in drips rather than one big chunk. nejra: thank you so much for

that update. let's get the bloomberg business flash with debra mao. renault and nissan have reiterated their support for their alliance does write the firing of carlos ghosn. paris and tokyo applied strong backing for what they call the winning cooperation. stabilizing the current structure is the best way forward. , in voted to dismiss ghosn contrast with renault. know our groupo is organized to ensure the continuity of the company's business. sure we guarantee our stability and focus on our mission to preserve the interests and the stability of the alliance. government is reported to the contacting key

the wall street journal said officials have briefed foreign counterparts and telecom executives. including japan, germany, and italy. has been labeled a security risk by lawmakers. an austrian oil and gas producer is among those competing for stake valued at $8 billion. dhabi'sid heavy -- abu state oil company is reviewing holdings. the deal may not be announced until next year. the nordic region's largest lender plans to issue 20 billion euros of debt next year.

volume on line with the wholesale markets. that is your business flash. an emblem of opportunity and access. black friday has been the biggest shopping day. we are here to break down the numbers. meant large crowds and stampedes. clicks are outpacing clicks. mobile is on the rise, making up 27% of retail e-commerce. shopping was $8 million last year. up 50% since 2016. adobe estimated the stretch through monday will account for 1/5 of revenues.

department stores have been better. this index makes up department store peers. you can see the steady decline. department stores have been battered. crownmarket is losing its to other extravaganzas. i am thinking alibaba. they turned singles' day into $31 billion in online sales. you can see the progression of singles' day stealing the black friday. black friday shopping has been as much of the tradition as eating leftover thanksgiving food. i am guessing you might have over eating a little yesterday like all of us. thank you for joining us. sticking with the u.s.. data.d releases

what happens next? have reduced the bets how many times the central bank will hike. they are not pricing in hikes. prospects for slowing global growth and a volatile financial markets. scott teal is still with us. marketsuestion, are the starting to underprice the fed? >> they are saying what about the prospect of further rate hikes? >> referring to dollar futures. going on,f what is the volatility in the equity markets, the spread markets,

filters to the treasury. obviously takes up the probability of rate hikes. the fed is looking at a few things. the global economic growth picture. ,ecall the fiscal spending there is an anticipation we are going to see slowing economic growth. there has been weakness in the housing market. in our mind, we were expecting some of the tightening to come out for the next year. going to need to see the fed be more sanguine themselves about the prospect to justify current yield levels. the market is closer to fairly priced than it has been. the debate rages on whether we need to continue to tighten

financial conditions or they are already tightened. >> i want to show a chart. basically, you are tracking the current neutral rates. fed policy rate. you can see the current neutral rate is above the long-term. during the financial crisis, it dropped to below. we were talking about widening credit spreads. more stress would we have to see to see companies dropping below the neutral rate? >> a lot of questions we debate, will the fed acknowledge the volatility we have seen in the stock market? the economy in the u.s. is very strong. the employment picture remains

robust. to aurdle for the fed knowledge the volatility is very high. unlikely something we are going to get the meeting coming up in december. as the long-term neutral rate he comes more consistent with where rates are currently, the fed is going to become more reflective. the markets are very keen on that. it is important to come back to what we were talking about earlier. any indication the fed is concerned about volatility and spreads, or thinking about potentially could see a quick correction. particularly in markets that have widened a lot. nejra: given what we have said about the fed, you have talked about being positive on the short end. you are getting more positive on

the longer and. end. >> the relative attractiveness of playing for less monetary policy becomes less attractive. we like longer maturities. widenedpreads have dramatically. the companies and of yield levels plus the incremental spread looks attractive. nejra: are the markets at risk of reading too much into what they say next week? key inmarket is going to on any acknowledgment of volatility and asset prices indicating the way the fed is thinking. they are going to acknowledge the ending a from fiscal spending. i think it is going to be relatively balanced statement. ,ejra: thank you, scott thiel

global strategist at black rock. the u.k. eu have agreed in principle to their brexit deal, but will it fall into line? this is bloomberg. ♪ nejra: welcome to daybreak

europe. bloomberg's from european headquarters in the city of london. here are today's top stories. hedgerow sanchez says he will vote against the eu. -- hold on.ld a new alliance. this is said to be seeking review of its shareholders. freshldman sachs faces questions. a malaysian financier at

the center of scandal. ♪ nejra: 7:00 a.m. in london. an hour away from the european equity markets. let's take a check on how the futures are doing. u.s. markets were closed yesterday, because of the thanksgiving holiday. yesterday, we start the stoxx 600 close 7% lower. futures higher by 2/10 of a percent. 100 futures struggling for direction.

a big move in the pound, yesterday. future relationships between the eu and the u.k. went down in brussels. u.s. futures are pointing lower in terms of how those equity markets could open up. let's take a look at the bond futures as well. that is something we need to add. we have not seen treasuries trading through the asian session. but to really, treasuries have been fairly steady. in terms of the bond futures, not a lot of movement in terms of the booms. we have seen quite a lot of

activity coming into this market. not a lot of direction it there. u.s. futures are reflecting what we have seen in the cash trading price. let's get a check on the markets in asia with juliette saly. good to see you again. juliette: treasuries are closed. we are expecting a very quiet day. the csi closing at the lows of the day. the u.s. is trying to convince other countries to avoid using technology from china. ons has specifically weighed tech stocks.

market is up by 4/10 of 1%. movementetty flat coming through from a lot of the emerging markets. have a look at some of the currencies you mentioned. treasuries closed in the japan session. anything that people could trade today had a lot of close. we had a little bit of movement coming through on the safe haven buying. a weaker fix coming through from the pboc. we have seen this falling against the dollar. pboculd actually see the get the market toward a dollar level. we were looking at the rope yet a little bit stronger.

let's get the first word news kong.ebra mao in hong reiteratedan has support with renault despite the firing of their ceo. they also told press stabilizing the current structure is the best way forward. nissan found a way to dismiss carlos. we had a long exchange with the economy minister about this enterprise. important for both of us is the preservation of the lion's. -- of the alliance. this is should not be allowed to weaken hundreds of thousands of jobs. a me: lloyd blankfein held

eting with the malaysian financier ahead of the 1mbd scandal. investigators are looking at this as part of a criminal investigation. oil is heading for a separate weekly loss after saudi arabia signaled its out what. america's growing stockpile is looking at concerns over a potential supply glut. u.s. crude inventories rose for a ninth week, the longest run of games since march 2017. -- gains since march 2017. europe's role busting budget threatens to damage the national economy of italy. have risen bonds

this week. 10 year yields remained near 3.5%. they decide to accept the commission's recommendations. economicllow tehee maneuver to reduce the public that. -- debt. the cryptocurrency crash of 2018 is heading for its worst weeklyt, extending a decline for 25%. this is the worst since -- crytomania peaked in early january. ourt shows few signs of abating.

global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. nejra: thank you. the u.k. and the european union have agreed in principle to the final part of their brexit deal that sets out a vision for a close economic ties. the cabinet was briefed and announced. i will return to brussels for we willr meeting, where discuss how to bring this project to a conclusion. the british people want this to be settled, they want a good deal and a brighter future. that deal is within our grasp. yesterdaynd is surged as investors are waiting for the final stage of negotiations. place will probably take

next month. maria, great to see you again. is this draft to appease theresa may's critics? >> this document is nonbinding. that is something we need to keep in mind. this does talk about a free-trade deal. the language around the backstop has been soft and. if you look at the reaction back home, there is no impression this will pass. brexiteers argue this is not a clean break.

it is unclear what the dup thanks. very difficult for theresa may to get this done. but there is the argument that this is the only deal on the table and they will not get anything better. >> thank you. joining us now is a portfolio manager at marion global investors. we saw a pound search yesterday. the pound is so sensitive to every single headline. how likely is it we going to see this pass in parliament? >> it may be difficult for for a

rebels. i think the market -- move market mindset is very much one where they look at theresa may's and it looks bad against the brexiteer dream. i think we can could -- could see applications against a hard brexit. someone said on bloomberg yesterday he does not want to see a second referendum. think more and more mps are going to get to that.

i think they are going to move on with brexit. >> so you don't think that markets are underpricing the downside of risks? i think there is a majority for hard brexit. the could be visible damage to the u.k. economy. what about theresa may being ousted? anything like that? gets stronger as these negotiations go on.

i think she came out stronger than she was before. i think there is a growing campaign for a second referendum. are you allocating that a strong conviction will happen? of women say we are overly aggressive. there are two asset classes in is acenario, whether it hard brexit or withdrawal agreement. the possibility of a rate

hike could be higher on no deal. is there a short game for the bank of england, or a different reason? forecastk the economic -- the sterling will be quite transitory. whenever you get a bad brexit, you see the guilds rally. i think you will see a reallocation back into riskier assets.

>> you stay with us. up, where should investors shop around for bargains on black friday? and we speak with the ceo of macy's at 2:30 p.m. u.k. time. new york is still sleeping. treasuries have started trading in london. it will be a hard day of trading for u.s. equities and bonds today. this is bloomberg. ♪

minutes away from the european equity market open. msci asia-pacific index in

the red, down 5/10 of a percent. particularly punished in today's session. for thee, heading seventh weekly loss. , after we saw a significant jump yesterday. some positivity around the draft deals. year btp yields moves lower by 40 basis points. we've had conflicting headlines. giving afutures not lot of directionality out of the european equity market open. we are watching the u.s. closely as agree opens after thanksgiving. weight to a strong

put it. happy black friday. let's get the bloomberg business flash. renault and nissan have reiterated their support for their alliance despite the firing of carlos -- the nissan ceo told press stabilizing the current structure is the best way forward. the nissan board foot it unanimously to dismiss carlos goan in marked contrast to renault. meetingankfein held a in 2012 with the malaysian financier allegedly at the head of the 1mdb scandal. investigators are looking at this as a criminal investigation.

raised says money was for 1mdb without knowing it would be diverted. pushing authorities to allow irish shares to settle -- continue settling even with a brexit deal. u.k.-basedies on operations to settle trade. the service could be unable to operate once the u.k. loses passport rights. reportedlyent is contacting key allies to avoid using equipment from china. briefed inave been japan and germany and italy. has longse company been labeled a security risk by

u.s. lawmakers. austrian in oil and gas is said to be competing for a stake value in a refinery union -- unit. it is said to be investing $8 billion, but a deal may not be announced until next year. traders will hit their desks after thanksgiving, so of turkey and good cheer. they will be on the hunt for bargains. but our question is where the biggest market discounts are to be found? you can look to tv on your bloomberg. nick is still with us. i am going to say italian

government bonds. a large valuation point of view and be spread has whited out a lot. you will see and asset rally. i think you will see a credits trade. bitterly for now is at least an investment grade. there has not been a huge surge in anti-e.u. sentiments. i don't think a rising btp spread has helped anyone. i think it has taken away money for official progress. if you get the dramatic is asia things in place,

you don't want to see shorts kerry for too long. carry for too long. nejra: would this be tactical, simply because of where inv estments are trading? nick: i would be wary to hold for a long time almost you have real consternation. i think there is a pricing out a must government bonds creep back in. i think other peripheral bonds look to be a pretty good value.

this is a real bad situation for italian bonds with denomination risk. what if the european union does this iswn on italy and already priced in? bad for a number of reasons. it would provke anti sentiment. price is encouraged a little bit. they have to go down that route, but i think this was on the softer side. it is hard to see them corrective measures.

they will give italy three to six months to implement those measures. i can't see the finance ministers forcing italy to imimplement corrective measures. europe will ask for teh deficit to be brought down. that will give them time to do so. people won't want to see short on btps. most italians want to leave the european union. they want the coalition to push back. they will have an austerity message. you, nick.k great to have you. sterling.a check on we are steady now. we are getting headlines from

teh dup. the with drawlw agre -- withdrawal agreement will devoted down. -- be voted down. the european open is next. this is bloomberg. ♪ ♪ i am a family man.

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anna: welcome to bloomberg markets, the european open. i am live from the city of london. ♪ . asia in the red. oil heads for a seventh weekly loss. point toequity futures the negative. the spanish prime minister says he will vote against brexit unless changes are