they see short term upside on an opec cut. we speak to a saudi c.e.o. teresa may sells her agreement to the public saying there's no better deal out there. and italy potential compromise. they're studying a rower goal. and an expert says he's not hug up on decimals. david: welcome. lack with alyx. it's cybermonday after black friday. though friday feels like it was cyber, too. because they sold more online. alix: i bought most my stuff on friday. but to your point, cybermonday should see abouted 7.8 billion to be spent today. david: overall on the season expected to be up almost 15% online and comes on the heels of singles day which was a knockout in china.

alix: do retailers like that. they reported more online and less foot traffic. john: more pressure on bricks and mortar. what is the role it continues to have? alix: what's the store david goes to when he's excited about spending money? david: i go online. alix: what is it? david: i go where my 23-year-old daughter tells me to go. i'd like this jacket from this place. alix: you don't buy for yourself? john: i don't. alix: futures up by 31 points. dd the s&p looking at the worst week since 1939. euro-dollar is a weaker story.

the italian budget decimals is helping the euro. we'll see about that. here in the u.s., selling on the margin, morgan stanley says go long u.s. treasuries. clearly the market not listening to david. supply online and crude up by 1%. you know, you're guess is as good as mine. goldman saying hey, go long. a lot of the speculators coming into play. but producing a record of 11 million barrels a day i find hard to believe. david: it was sobering what was going on in oil and went off a cliff. alix: and you yelled at me for emailing you. john: out on break. david: time for the morning brief, looking forward to what's happening this week. later this morning, the president mario druggie mario draghi will appear talking about easing. they'll release minutes from earlier this month, on friday the g-20 meetings get underway n buenos aires and seeing if

president gi and trump can make agreements. and they'll auction $129 billion in seven-year and two-year notes. alix: our chief equity strategist will visit. obviously oil is the story. i want to talk about the goldman call saying the g-20 could provide a catalyst for commodity prices across the board, whether it's go long soy beans or corn or the meeting between putin which would bring upside. are the equities we reflecting the oversold attitude they see in fundamental oil price? gina: i think so. there's been a disconnect between equities and oil prices for several months. oil prices rallied in the summer and sort of peaked out at a much higher price in early fall and the energy equities have skepticism towards the price of oil sustaining the

recent rally anyway and energy equities in the s&p led the down draft in stocks in september. clearly energy equities are not trading at an extreme discount relative to the discount and looking at stocks trading below their five-year average on a forward p/e basis and there are earnings lines to come. the downdraft came so vicious and quickly i think there's a little bit of catch-up analysts have to do to amend the earnings outlook and weighs on sentiment for the shares going forward. they're already trading at pretty big discounts which is a big contrast to what happened in 2014 and 2015 and everyone wants to point to the scenario as that's what's coming but there are differences between today and 2014 and 2015 despite the fact oil price are crashing t a relatively rapid pace. alix: this is present at its weekly moves and you see the

reflection in 2014 and 2015 and freaking a lot of equity oil investors out. what puzzled me today is we get the headline that saudi arabia produced over a million barrels a day. >> we were talking earlier what's the real reason? i'm not looking at goldman's call today but last week. i think that's the accurate one, that oil prices will stay very volatile in the short run. if you look at oil prices, you were showing a weekly chart but over the last 10 days oil has been up five of those 10 days. it's not that we're seeing a big move in either direction at this point. we had lower volume trading on friday but we're seeing oil sort of trying to find, it looks like, a bottom at this point. we're not sure we've got the opec meeting coming up in about 10 days and we've got the g-20 meeting so we have a lot of risk factors going into what you try to think the oil price will be as people try to figure out how much supply there will

be out of one hand out of the opec meeting and how much demand there will be coming out of the g-20 meeting. alix: stick with us, we'll be diving ahead with the head of energy with barclays. david: let's turn to brexit. six minutes in. lix: it's all about oil. david: the 27 countries that will be left got together and said this is as good as it's going to get and now teresa may has to go back to parliament. the euro and pound gained on the news. one thing that struck me is how much is not decided. they decided how much they'll have to pay and what the transition period is but we've got to work out a trade agreement and securities agreement and by the way, ireland, there are like three or four different options might happen. michael: ireland is the sticky part of the debate. it is interesting. it's conflated to we should have all this information but remember what they've been negotiating is an exit deal, not a future deal.

they haven't been negotiating on what their relationship is going to be with the e.u., they've been negotiating on how they're getting out of the e.u. and the rest is supposed to follow which is why we have the transition period and the possibility of extending that. and they do have a lot of agreement in terms of like how financial services will be handled and things like that in this agreement but it's the ireland border and the who controls access to and from the e.u. that's the sticking point. looks like they may lose this vote in parliament. david: even if they get the vote in parliament, how much certainty or stability will it bring to the business community because there's so many loose ends that haven't been tied up yet. gina: that's a key question being reflected in the currencies in particular. if you look at the british pound, euro cross, it's the volatility in the currency relationship is extraordinary. and it's not as much reflected in the equity market because i don't know we know how to price it in. that uncertainty is almost impossible to price.

you're seeing limited volatilities to the rest of the world but the currencies are really the factor to watch ere. the clock is ticking. as you get more resolution you see it start to price in the equities. right now you have a situation u.k. and european stocks are down roughly the same pace and mirroring one another which is unrealistic considering the outcomes of this will create a dispersion in the markets. alix: italy, uncertainty? we'll choose to believe what we want to believe. that was my takeaway what we heard. in a newspaper it was said, nobody is fixated on this. if there's a budget which makes the country grow it could be 2.2% or 2.6%, what's in a decimal? and the market took it, mike, as oh, they're going to lower

and talk about a smaller budget deficit. what? michael: the last couple days there have been a number of signals from the italian government they're looking for a way to compromise with the e.u. and the question is what kind of compromise and what extent. the e.u. seems to have drawn a line in the sand the amount they can increase the deficit and the italians don't want to sign on to that but are willing to move in that direction. it's not just cutting back on spending because they've already promised a lot and that will be hard to cut back on. they've also talked about maybe delaying the onset of their reforms until mid 2019 and then you get a much smaller effect in 2019 and push some of it in 2020 and in the e.u. are we good at kicking hands down the road. so there are possibilities now you can see for a compromise and that's making the markets happier. alix: thank you, gina and michael. a reminder, you can find the vdgo. we used at gt

may makes her case and we'll have more on the next steps of the u.k. divorce from the e.u. with a founder and c.e.o. this is bloomberg. ♪

emma: this is your daybreak with the business flash. bloomberg has learned nissan wants to address imbalances in the world's auto lines. the japanese carmaker wants to limit the power of its partner

nissan to directors of its board. mitsubishi joined nissan in dismissing the chairman. bitcoin dipped below $4,000 before recovering some of its loss and continued the great crypto currency sell-off. bitcoin is down roughly 33% in the last week and 75% this year. investors are concerned about increased regulations and problems with exchangings. multiple crises at facebook this year have put immense pressure on cheryl sandberg. bloomberg spoke to eight current and former employees from her side of the organization. some now blame her for facebook's woes and say at times sandberg prioritized her own brand other facebook's and say she didn't address problems quickly enough and treated them only as perception issues. that's your bloomberg business flash. david? david: they took it down to the wire but 27 members of the european union agreed on sunday for terms of their departure of their 28th member, the united

kingdom resolving issues such as the bill to be paid and transition and leaving it to come up with the overall trade agreement going forward and exactly how the authority problem at ireland will be handled. welcome from houston, christopher zuke, the founder and c.e.o. and our guest from london. jordan, the place we saw the reaction first was in the currency markets with the euro and pound. give us your analysis. jordan: we had the deal we've long been waiting for but as with brexit, there are hurdles to go through. if you asked me three months ago, where does the pound go on a deal being done? all the commentary with back then would be difficult to find a compromised deal where it should go through and the pound would go higher if a deal was to be done. the pound is unchanged and the reason why is because the market got used to the ideal of a deal being done with europe but not one done in parliament. we have the parliamentary vote the next two or three weeks and

maybe december 12 and it's not looking for good theresa may and everyone is focused on the vote and not the deal that was signed because if the vote doesn't go through parliament there's a load of scenarios where things could go bad indeed. david: you have a note out you put it on a wide range of variabilities and does it mean we're seeing an increased volatility for the pound because we don't know what's going to happen? >> indeed. let's walk through it, the three brexit scenarios, there's a deal which is 60% probability in our view and there's no deal which is a hard brexit or no brexit at all is the remaining scenario. the hard brexit we have to have in is a scenario where things could go very badly. but this probability is not as high as what the bar chart should say because there's loads of things parliament can do to stop it but the problem is it gets messy before it gets better and why on the charts , they there theresa may

haven't reached the no confidence in her so far and even if it were to be called we think theresa may will win the vote with a good probability and the other scenario which is a negative as well is it an election is called and a 20% probability in our view because a election doesn't answer the brexit question and doesn't seem like the right course of action but the polls suggest labor has a 50% chance of winning and is a negative scenario for brexit. this is my interpretation of the probability and it moves across the news flow, like you said, the market is in a different place and has more of a uniform distribution meaning we have deals, no deal, no brexit at all or referendum or general election. and the market has no idea what is based on any of them and the uniform probability across all of them. so whatever happens, one of those scenarios, the pound moves a lot. alix: christopher, are you invested at all in u.k. assets? christopher: we are. we are exposed to the u.k. lightly and not significantly

and certainly not playing now in the currency markets because of all the uncertainties he talked about. we're going to have to see some kind of resolution to this here in the next couple months because the closer and closer we get to the deadline, the more likely it is it's going to turn ugly and if so markets will get very spooked and create even more volatility so long volatility is probably the best rate here. alix: jordan, what is the f.x. trade and how do you hedge? jordan: long volatility banking on the nail there. we're seeing the dated option premiums for around that parliament vote increasing. i think if you are long sterling over the event risk you might be surprised the next couple weeks, maybe the m.p.'s start to convince themselves a deal gets done. the reason why, we're going from a place where it doesn't seem the steel will get in and everyone seems to agree and it's in the price, the deal not going through parliament is a consensus so the upside is it it does go through and sterling goes higher.

alix: go ahead. david: christopher zook and jordan will be staying with us. today is cybermonday coming on the heels of black friday as we get in the heart of the holiday shopping season, we'll get initial reviews on how it's going from a senior retail analyst. living from new york, this is bloomberg. ♪

alix: it's the annual spending spree and black friday sales year.p 23% on the now we turn to cybermonday, one area retailers have struggled with technical glitches and malfunctioning websites in the past. joining us is a senior retail analyst. in your checks over the weekend and into today, how good or bad was thanksgiving shopping? guest: good morning. thanks for having me. what i would say is it was a

good time to be a consumer and i think for the past year, we started getting trained that deals weren't going to be as prolific we thought the last several years. well, they're back and from what we've seen the deals were flat or better for the shopper which means flat or worse for the retailers. alix: were there any stores you felt had more pricing power on any types of products and better pricing power than others? simeon: what we'll find is there is a lot of inventory out there and don't think we knew that. if you walked through a department store the past several months, it's been clean and meant retailers could charge a lot and all the inventory was hiding out in the tj max, channels, etc. and coming across the floor and the 40% to 50% office, you get good deals and old navy and stores will be crowded when they give 50% off but it's still 50% off. it's interesting judging who the winners or losers are here

because if you drive a lot of sales but it costs you a lot of margin, is that a win or loss these days is tough to tell. david: exactly. it feels the end of november or december we talk about the volume and in january we talk about how much people made and there was already pressure on the margins from increased cost and wage cross and transportation cost. how much pressure are retailers feeling on margin? simeon: a nice amount of pressure they're feeling. and pressure used to be promotions and now to the point you brought up, it's also on the operating expense structure and we just had the third quarter reported for most of the companies we cover and to your point, wage freight, every retailer is bringing those up. so the one point of comfort was that you had a lot of full priced sell-through and you saw a lot of retailers taking their price points out and if that's gone away that's a nice lever of sales and margins that dissipate. one thing i'll bring up as well, if we think what black friday and cybermonday are now

versus what they were before, it used to be you had three hours to bring your a game. if you were a retailer you knew you needed to be stocked and have labor and the best promotions out there for three hours. it's a lot easier to compete in three hours when you know it's done at the end. when that stretches into black friday, cybermonday, the weekend, november, december, prime day in july, you start second-guessing yourself as well. you're not just competing against your peers but against yourself and that's a difficult proposition. doug: that was very helpful. thank you. simeon siegel. still with us is christopher and jordan. christopher, let me ask you, how closely will you watch these retail figures either because you're invested in retail or may be an indication more broadly where the u.s. consumer is? christopher: it's a great thing to look at for all those reasons primarily the last part you talked about and where the overall consumer is and i loved the line he said, it's a great time to be a consumer, i'm not sure it's a great time to be a

retail stock market investor in that these stocks are going to see pressure if these margin pressures are indeed going to come through and show themselves in the earnings we see in january and early february. you know, there's definitely wage pressure and definitely freight pressure and all of a sudden they have inventory they don't need they have to move, it's going to be a negative for these stocks. alix: a big part of it will be the big dollar rally we've seen since june, almost a 97 again. how is the pass-through and how strong can it get? jordan: we've had oil rising strongly and collapsing and there's a different dynamic here where yes, the dollar has a rally but could be weaker going forward. the main thing for us is the fed looked to be softening the language so from here it's a bit more balanced and with oil falling as well, that's a negative for the dollar, too. going forward the best trades might not be to look for double strength but find the opportunities in dollar

weakness. alix: dollar weakness prevailing more so defense what? jordan: for me on the brexit guy, i'm looking at cable and sterling. there's risk on currency. this is the g-20 summit leader where we have the weekend as maybe a peace accord between china and u.s. and is a big risk on dollar weakness come to trade and if it that comes to pass, aussie dollar may be a way to look at it as well. david: given it seems the consumer is doing well with increased wages, you said retail, you're not so excited about that. christopher: it's interesting the consumer doing well is great for the overall economy and they're obviously a part of the economy itself but we're seeing it's not translating to earnings. we're still very passive now in the overall stock market and think we'll see a santa claus rally but as we look in 2019, it's hard to get excited much with stocks because of margin compression and valuations and yes, crude oil coming down is

very good for the consumer and it's actually kind of a tax cut, you end up with not enough to really offset what we see these pressures on margins and earnings. alix: fair point. we'll talk more about oil in a moment. christopher zook stays with us of caz investments. david? doug: siat is considering selling the robotics arms to perhaps the chinese and comes on the sell of the parts business earlier to k.k.r. alix: you mentioned tripping your fat. coming up, it's oil rebounding from the one year low. we'll break it down. this is bloomberg. ♪

alix: this is "bloomberg daybreak." i'm alix steel. market seeing a bit of a relief rally after the first thanksgiving week since 1939. 1%, 530.es up over

yet some emergence to the downside when it comes to the 2019 forecast. european stocks up. what is not up as russian equities, down 8/10 of 1%. a conflict between the ukraine and russia over the weekend reuniting fears of potential u.s. sanctions on russia, in part causing a selloff in the ruble. the dollar broadly weaker in the g10 space. in italy, may caving on the margin, talking about a smaller budget deficit. yields down by 17 basis points. little0 spread, a steeper. under the 23 level. crude getting a rally despite headlines today seeming more bearish. saudi arabia pumping at a record

-- i have a lot of skepticism and irony in the market read. david: in part because i cannot remember a market share without much geopolitics in it. so why can you not be skeptical and ironic? alix: when you will basically trade off what solving and what mr. putin does. trump or what another tweet does. we turned to emma chandra with first word news. emma: speaking of the president's tweeting, he resumed tweeting on america's border problems today. he urged mexico to deport flag-waving migrants, many of whom are still called criminals. his tweet came a day after u.s. agents on the border used tear gas to disperse migrants. refueling of tensions between russia and the ukraine. russian forces fired on three

ukrainian ships and wounded some of their sailors. the attack took place in the kerch strait. russia says the ukrainian ships violated its waters. the un security council will meet on the matter later today. the uae has pardoned a british academic sentenced to life for spying. matt you have is -- matthew hedges denied he was doing anything other than research, is video supposedly saying that he spied for british intelligence. global news 24 hours a day on air, and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. thank you. we sat down with saudi aramco's president and ceo, and we asked how concerned he is about global oil demand. >> we are looking at between 1.3

and 1.4 this year of additional demand. next year will be the same in terms of additional demand. there is a lot of healthy demand. we are not looking at only oil. , atre also looking at mass chemicals. there is a lot of growth potential for saudi aramco. potential. yousef: the king has a lot of steps to bring in investors. the recent murder of jamal khashoggi has dampened investor sentiment. what is your message for foreign investors? amin: there is a lot sentiment coming into the kingdom. billion worth of

investment with our partners. tomorrow, we will be extending a forum. at and we are signing more than 30 deals with -- worth $27 billion. if you put the two together, more than $60 billion of agreement and investment that was signed between us and our partners. yousef: so you're not worried about any longer-term damage from the murder of the journalist? amin: you will see tomorrow a value add of more than 3000 participants, more than 150 ceos from in kingdom and out of kingdom, more than 80 ceos from out of kingdom. david: that was part of bloomberg's exclusive view with amin nasser. not: look up at your camp,

oil. christopher zook is still with us. this is brent, capping its first 2015rst week since friday. michael cohen, you said prices overshot. what do you think now? michael: there are a lot of things going on at the same time, both technical and supplemental. as we have gone through these technical supports, we have seen a lot of positioning that was stretched before him come out of the market. the fundamentals never justified oil at $80 or $85 in the first place. when you look out the structure of the curves in the market, they never justified that last leg higher. at the same time, trump tweet have given market participants concerned that opec will not cut

production at its meeting next week. the other thing going on is the strong rally in natural gas, which also led to liquidation by investors. where do we go from here? we think prices will rebound as we go into next year. are notdoes not cut or able to manage expectations, that is a key risk to the price. i think as we move into the first quarter of the year, typically we see demand start to pick up a little bit. the other thing going on, of course, is that the buzzard has beenthe north sea off-line. they noticed there has been corrosion here. this is a massive field, and the whole scheme of things, and it has gone off-line. alix: you are talking fundamentals, supply and demand. what happens when you have this sort of relationship that is very different between saudi arabia and a u.s. president?

his tweet shocked me when he said so great oil prices are falling, thank you. it likely add a tax cut -- are you listening fed, we love saudi arabia was basically the hashtag to that. michael: this will give producers in houston a bit of concern. at what point does that language stop? the key question we have to ask change inee a behavior by the u.s. producer as we move into the next earnings season? will they drop back there plans planse next year -- their plans for the next year? david: how do you make investment if you do not know what the president is doing with saudi arabia, much less tweeting about it? christopher: you have to look at

cost cycle. all of our investments in energy , they are cost cycle investments. a supply and is demand picture and a geopolitical picture. the geopolitical picture is impossible to predict. but this president has made it clear he wants to see oil prices lower. but we also know we are a victim of our own success. we are producing so much of our own oil in the u.s., which is great, but it is increasing supply out there. the demand looks good. if the economy continues to hum along the next 24 to 36 months, they will be new demand for the supply on the market. longer-term, we are bullish. tolike oil in the high $40's $50's. alix: what does it mean for energy investments? what are you buying? christopher: we really like midstream energy, close to the

the-head, primarily in final market. but you have some things that have adjusted so dramatically lower, whether you talk about mineral plays or some of the upstream, where someone is in the core, where they can still make good money at $52. you can still see a supply growth from them, earnings , even when youm see prices in this range. the only way that gets derailed 0's.f you see high $3 point, whog to that gets shaken out in the difference between the mid $70's and $50's? supply andater, demand will correct the marketplace. michael: exactly.

if you look at canada, there are high differentials between wti and the base in canada, the price there. we have already seen some producers talk about dialing back on production. cut, broader, industrywide we need a federal government action. so there is one place. the other place we have to look at is those at risk producers. venezuela, at iran, as oil prices have come down, this is a significant additional headwind for their social and broader political stability at these price levels. as we move into a lower price level, we saw expectations at 1.6 million barrels a day moving back to 1.4 million barrels a day of additional demand growth. now that we are at these price levels, maybe we move higher. maybe there is an additional headwind -- an additional tailwind.

so we have the g20 meeting next friday. what is your base expectations? michael: i think it is important to understand that, at a sovereign level, the opec-non-opec agreement was driven by a sovereign agreement, a head of state agreement. anything we see at g20 will be indicative of the fact that we may get an opec-not opec cut agreement. the key risk for opec is to manage risk expectations. will they move back to 100% compliance? will the market understand how that market changes? will the president understand and tweet accordingly? christopher zook and michael:,

thank you. great to see you. coming up, life on mars? elon musk says it is a 70% chance you will travel there in his lifetime. we will discuss the race for space. this is bloomberg. ♪

emma: this is "bloomberg daybreak." i'm emma chandra. hour, up, in the next mobius partners. david: returned to wall street beat, where we cover three things wall street is buzzing about. primeof all, goldman's deal.

then, the bitcoin bubble bursts. and it may be the worst bubble in all of history. and tesla's brush with death. teslausk details struggles. alix: so many things i want to say. joining us as jason kelly. let's start with a serious news -- goldman having a super amazing bet on real estate in queens just as amazon announces its new corners. as headquarters. jason: they did financing to the tune of $83 million in long island city. it is a mile from where at least to be. hq2 is going it can just before amazon is going to make their announcement. there is a reason they are goldman. david: they had a little nudge from the government, these opportunity zones we have mentioned. they were in the new tax plan to encourage investments in lower income areas. they were encouraged by that.

jason: absolutely. this makes a huge amount of sense. it is a very good real estate investment trusts on its own. manhattan and the five boroughs of new york city have been fast-growing. even before this amazon announcement. now, there will be 25,000 people or so coming into this area. it is a boom. david: they will make good money on that. they will also do good by not investing in bitcoin. compared the bitcoin bubble to other bubbles, saying it is the worst in history. it is compared to mississippi, all sorts of things. it went up faster and came down faster than anything else. alix: that graph is also. jason: -- awesome. jason: and when you think about the bubbles we have seen, like the dot-com bubble, this just

blows it out of the water. and the timing is so interesting. we have been talking about it a lot. last thanksgiving was when bitcoin seemed to catch fire among a broader spectrum of people. david: it certainly caught fire. we said -- we had people who said it would get up to 60 -- $6,000. alix: all of the headlines are again.ad news for him jason: and it comes back to the fundamental question of what was bitcoin really for? we have been talking about this a lot. this is what you use when you do not want people to know what you are doing. david: illegal things. or people who do not like governments. do not like the fed, do not trust the government. ,ason: and the key here is along the way, you had a lot of institutional money that

essentially said, for all the reasons you describe, i am not so sure about this. alix: but how do you value something like this? if you value it as a form of currency, i brought up the relationship to gold during the break. how do you value something, it is only worth what i am willing to pay for it. david: and it was tied to blockchain, which is valuable. everyone agreed blockchain was worth something. let's get to elon musk. bo thing.ed on this h he said we were close to death in tesla. they had single-digit weeks. this is what he said -- sla relate faced the fear, threat of death due to level three production. if we do not solve these problems in a short period of time, we would die. alix: -- david: it was darn close.

jason: and the interesting thing is i read something that said close to death or close to having to dilute elon musk's value -- david: which is the same thing. jason: so what is the answer? maybe just go to mars. isx: where is the person who supposed to temper what he says and tweets. david: the contrast with spacex is so jarring. spacex is making money. it is private, to your point. alix: you can do whatever you want, as long as it will be private. i couldn't believe he said that. before thewe talked difference between spacex and --la is >> what is the likelihood you

will personally go to mars? >> 70%. we recently made a number of breakthroughs that i am really excited about. jason: i do like the look on mike allen's face. [laughter] 17?you say 70 or david: he said he will probably die. . that chances are good you will die. alix: because is this like an escape pod for the rich? he said, no, you will probably definitely die there. david: either he is a true visionary or he is watching too much movies and television about going to mars. jason: the whole interview is worth watching, because he talks about a.i., the singularity. sort ofoint, he supports the idea of maybe we are just living in a simulation. [laughter] david: the matrix.

ok. alix: i am sure he will be remembered as a genius of our time, but at the moment -- jason: wait, what? all in our own imaginations. many thanks to bloomberg's jason kelly. you can tune into him on businessweek on radio at 2:00 eastern time. the supreme court is set to weigh in on the iphone's app fees. click onch us online, our charts and graphics. go right to tv on your terminal. you can also ask us a question. this is bloomberg. ♪

david: it will not surprise you that what i am watching is the supreme court of the united states. they have a big argument with apple involved. the question is can they be sued under the antitrust laws for

overcharging for apps? they said we are just passing them along from the out producer , so it is not our fault, so therefore you cannot sue us. and you cannot sue the out producer either. the court of appeals said, basically, you can sue. alix: why can't they charge whatever they want? david: because they are getting a lot of different people together to agree on a price and then pass it through. alix: if they are allowed to be sued, what does that mean? david: a lot of people can file a class-action suits saying you are overcharging. it could force them to change the way they do business. alix: which is interesting, because if they want to become a services business, that is a hint to them. i know their service and streaming is different from their app model, but still. david: in this new digital world, it restructures the way we are thinking about things. you have thousands of thousands serviceroducers and

providers going through this platform of apple. the question is how do you set prices consistent with insurance laws, so you do not get concentration of power. essentially, are they standard oil? alix: which goes to the whole point of regulation in tech, which has been the conversation, especially in the middle of the tech selloff. that is the theme that will happen in 2019 as well. david: everyone agrees on -- there is regulation coming. alix: coming up, mark mobius will be joining us. his take on the recent selloff and what he is buying in emerging markets. this is bloomberg. ♪

place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. alix: go long, oil. goldman sachs says it sees

short-term upside in opec cuts. with saudiclusively aramco's ceo. and theresa may saying there. and what is right, fundamentals or markets? morgan stanley sees a sharp slowdown in 2019 and says get out of credit and had to emerging markets. david: welcome to "bloomberg daybreak." i am david westin here with alix steel. i know you bake bread. i watched phil mickelson and tiger woods. i watched it forever. it started in three in the afternoon. alix: five hours. no commercials. david: just a lot of side betting. they went through 18 holes. had to play the 18th again. it went down to a putt. alix: if you want to attract millennials and younger people

to the sport, i do not think this did it. five hours of watching golf in the middle of a friday afternoon? david: this is just one person's reaction -- i thought they would be a lot more banter and back and forth. particularly in the back, they got really serious. at one point, one of them said i do not to talk right now. so the whole idea was you would hear the back and forth, which you only have two golfers. it was just the two of them. alix: sounds thrilling. so bummed i missed it. [laughter] futures up over 1%. it had the worst thanksgiving week since 1930 nine. now futures getting a bit of a rebound. the dollar broadly weaker in the g10 space. off the highs of the session. there is optimism over italy potentially --

you see a lot of buy-in coming into btp's. by twou.s., yields up basis points. morgan stanley says they will go long's treasuries. crude getting a pop of over 1.5%, despite the fact that saudis are pumping a record. david: we will see how long that lasts. alix: we will talk about oil and emerging markets with mark mobius. david: it is a great day to have mark mobius. alix: good perspective. david: oil, the g20 going -- coming up. mean a slowert fed, a more dovish hike? it should be a lot of fun. david: right now, time for the morning brief. later this morning, mario draghi is appearing before the european parliament, where he will be

taperingdoubt quantitative easing. thursday, the federal reserve will release its meetings from earlier this month. friday, the g20 meetings will get underway in but osiris with -- in buenos aires. over the course of the week, the u.s. will be auctioning $129 billion in 2, 5, and 7-year notes. let's take a look at what is going on outside the business world. we turn to emma chandra. emma: the president resumed his tweets on america's border problems today. he urged mexico to deport "flag-waving migrants, many of whom are stone cold criminals." his tweet came a day after u.s. agents on the border with touana used tear gas disperse migrants trying to get through fencing and wire. a dramatic renewal of tensions between russia and ukraine. russia fired on three ukrainian

navy ships and wounded some of their sailors. the attack took place in the kerch strait near crimea, which the russian president annexed four years ago. will -- security metal the u.n. security council will meet on the matter later today. the uae released a british academic sentenced to life before expiring. matthew had just denied he was doing anything other than research, but the government showed videos of him supposedly admitting he spied for british intelligence. 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. alix: thank you. global leaders to send -- de aires this week. an analyst says gdp is expected

to grow. and there is no evidence of demand weakness. this week's g20 meeting will likely serve as a potential catalyst to bring risk capital. running us from dubai is mark mobius. always good to get your perspective. do you agree this could be a real catalyst or commodities, the g20? mark: idea. the fact remains that commodities are still needed by china and india. one billion people in each of those countries. i believe you will see commodities continue to survive and even grow in terms of price. alix: if you look at the catalyst, what with that have to be? would you need a resolution from president xi and president trump? the tariffs getting less bad? what is it? mark: i do not think it

necessarily needs a resolution of the china-u.s. so-called trade war. what it requires is a continuation of where we are going. the u.s. is the largest economy in the world. it is continuing to grow at a very high rate. that impacts everybody. even with the trade war, china will still need more oil, more commodities. so i am not too worried about the situation. david: there is no question we will always have commodities and people will pay for them, but the question is what is the direction? whether it is china or the united states, the direction is they are growing less fast than before? doesn't that put downward pressure on prices? mark: true, china is growing slower, but 10% in 2010 is a lot less than 6% today in china. the amounts are much larger. i am not saying there will be a big jump in commodity prices, but i believe it will continue

to be -- there will bcontinue to be gradual price rises. david: when we talk about meeting,s xi and trump the increased is pressure on the chinese economy? inre are a lot of challenges the chinese economy, internal, right now. mark: there is no question that the debt is very hard to get the debt and gdp in china is actually higher than the u.s. at this time. issue has nowade become mixed up with the issues. the u.s. is worried about the growth of chinese military. they are worried about the data that the chinese have been getting from the u.s. unfortunately, it has become a lot more complicated. alix: what are you buying right

now? mark: right now, we are looking at buying in korea, in turkey, believe it or not. i know turkey looks bad, but there is some interesting bargains. in india, that is a key area for us. and in brazil. those are the countries we are looking at now. alix: what do you avoid with a 10 foot pole? mark: really, we are not avoiding much. most of the frontier markets we are not into at this stage of the game, because there are so many bargains everywhere else i would say african countries, we generally are not doing much there. europe, some interesting things happening, particularly poland and romania, but these are relatively small. david: what about mexico? we have an inauguration coming up. are you avoiding mexico until things settle down? do you have a read on it? mark: actually, mexico is a

country i should have mentioned. we believe mexico will do very the, particularly with china-u.s. trade war. a lot of the good sense of china is supplying to the u.s. could be moved to mexico. not a massive amount, but it could be significant. so we are pretty bullish on mexico. alix: how much of your view has to be supported by a weaker dollar and a more dovish rate hiking fed? mark: actually, we like a stronger dollar. it makes the emerging-market currencies look more competitive. of course, you have seen the argentine peso go down 70%, 80%. the turkish lira the same. so these currencies are looking very cheap now. i would be worried if the u.s. dollar gets too strong. that may not be good for emerging countries. alix: what is too strong? game,at this stage of the the dollar looks a little strong.

other currencies are all down. you go down the list -- some less than others -- but there is really no one currency. maybe thailand has not gone down as much as the others. so we have to watch that. but thailand looks pretty good as well. i would not think there is any currency that is too strong. david: when you talk about the strength of the dollar, one of the things we ask ourselves about is emerging-market debt denominated in dollars. how worried are you about the credit situation? mark: we are very concerned about companies with u.s. dollar debt. but because of the asian crisis, most of these countries have built up lots of foreign exchange reserves. if you look at that in relation to gdp, most of those countries are doing well. but you had to be very careful of those that have dollar debt, particularly companies. the first thing we ask is what does the balance sheet look like and how much of it is u.s. dollar debt? alix: morgan stanley had a

monster call, saying u.s. growth will sharply slow, particularly into the third quarter of 2019. so what they say you want to do is get out of u.s. equities, go outside, get into cash, and go into emerging markets. if this pans out, are you going to have more competition to spend the dollars you want to spend in emerging markets? mark: absolutely. no question about that. which is why we are getting invested now, because emerging markets look so cheap. if you look at the emerging markets index, we have not seen a big recovery. but the u.s. market has seen a 10% decline from the top. so, yes, money will be moving out of the u.s. dollar and u.s. markets into emerging markets eventually. it will not happen overnight. but going into next year, you will see emerging -- money going

into emerging markets. david: mark mobius of mobius capital partners. thank you for joining us today. coming up, risks in the stock market may have big in vocations -- implications. we discussed with alicia levine. live from new york, this is bloomberg. ♪

emma: this is "bloomberg daybreak." i am emma chandra. that the has learned japanese carmaker wants to limit the power of nissan to nominate directors to its board. meanwhile, mitsubishi has joined nissan in dismissing the

chairman. a strategic review is at an businessge -- to a involved in industrial robots. facebook haves at put immense pressure on sheryl sandberg. bloomberg spoke to eight current and former employees from her side of the organization. some now blame her for facebook's woes. they say, at times, she prioritized her own brand over facebook's. alix: thank you. so what is right, the market or fundamentals? socgen's ceo for that. >> it is fair to say there are more risks potential, geopolitical risks on one hand, and we have seen a correction of the markets recently.

the question is the magnitude, at the end of the day, the correction and whether it could derail what remains, fundamentally, good economic conditions. when you speak with ceos, they feel comfortable with near-term perspectives -- perspectives. alix: at the same time, the major challenge for u.s. assets next year is that they are boxed in. better than expected growth means fed tightening and weaker aan expected growth means race and slow down risks. joining us now is alicia levine, bny mellon investment management chief strategist. who is right? alicia: it is a great set up. the market is telling you that morgan stanley is right. what the market is sensing is the slow down is real, and it is not just headline numbers. that there is something fundamentally within the global

economy that is wrong. i will give you some data, which is we had a bad german gdp print, a bad japan gdp print. in the u.s., our third quarter, investment was almost zero. that is what we need, in this country, to keep growth high and above trend. there is data telling you the fundamentals are weakening. david: that that is the market reacting to what it's seeing now. u.s., theine is the yellow is global, and both are going down. at some point, the fed may react. could that change with the market is perceiving? iscia: right now, the market pricing into hikes. the december hike is baked in. i think the fed will pause, but i think week at a march hike. we do not see an inflation spike anywhere.

the oil situation is helping with that. we do not see three or four hikes next year. from morganke away stanley is you want to allocate more cash, go into emerging , outside the u.s., like japan. how would you play that fundamental part? alicia: i am so pathetic, but it is hard for me to believe that if u.s. markets selloff that emerging markets are going to be fine. it does not pass the sniff test. if we're weak here, you will have global weakness. emerging markets have already sold off 20% to 30%, depending on the region. on a relative basis, they could outperform, but you cannot beat relative performance. some cash asing dry powder. cash is now an asset class. it has not been for 10 years.

david: it also does not have duration problems. if you are not sure where it is going, you probably do not want to go that way. alicia: right. it has been 10 years of quantitative easing and inflation in all risk assets. it is tough to remember what it was like before, when money cost something, and there is a price to capital. that is being reintroduced to the system. every asset class will feel it. that is why i like having cash, so if, and when, things selloff, you can go. alix: alicia levine of bny mellon is sticking with us. -- new yorking news state authorities have approved the merger of cvs and aetna. care a huge health conglomerate. they officially approved it. cvs and aetna are up, so it appears the consolidation and

health care proceeds at pace. alix: with some conditions, like consumer protections, cyber security compliance, and a $40 million commitment to support house insurance education. david: i bet the m&a people baked that in. but it is a big consolidation. alix: coming up, mitsubishi remove scone after being -- removes gohn after being ousted by nissan. this is bloomberg. ♪

david: time for the bottom line. we look at three companies worth watching. i will start with at&t. i already talked about the tiger woods-phil mickelson matchup. at&t,as the debut, for with its new merger with time warner that they could take the

content from what was time warner and put it through the at&t system. it crashed. alix: this was a whole thing? that they would prove, look at us -- a big #fail. david: you can imagine ceos saying what exactly happened here? this was the premiere of this great, new merger. alix: talk about a merger we have to work out -- what will happen with renault and nissan. spoke asi's ceo mr. ghosn was removed. >> i was in shock. i couldn't believe it was true. wouldt mr. ghosn, there not be an alliance in 2016. we concluded to remove him in order to protect stakeholder interest. mitsubishi management should focus on current plans to remove any concerns among customers and shareholders. alix: so many great things to

read over the weekend about this. we are getting a little bit of detail. was deferred comp i carlos ghosn -- by carlos ghosn. david: what i read was 99.6% of all people charged are actually convicted in japan. you cannot do a plea deal unless it is convicting someone else. it is not looking good. there may be ambiguity, but it is not looking good for mr. ghosn. he said we would not have had this conglomeration of these three companies without him. and there are questions of credit actually, part? alix: very big questions. it will get pretty ugly. a fascinating conversation. david: now our third story. we will talk about retail again. watching walmart the cyber monday. it is holiday shopping season.

we welcome brooke sullivan, bloomberg opinion: this. when you sayapt cyber monday, black friday, what is the difference? walmart and other retailers saw a significant surge in the days leading up to black friday. it is a multi-day event. why is that important for walmart? is wednesday, a day that saw a high traffic, about 2.4 billion dollars spent online, walmart was having trouble with its website. they reported delays on their systems, people having difficulty getting items through the checkout process, which is not what you want to have happen day,ch a big shopping especially when walmart is trying to establish itself as a destination for e-commerce. like wednesday, there are other options, other places offering deals. david: this has been a top

priority for walmart management for some time. the big deal with jet.com. people are looking to see with whether they can contend with amazon. brooke: they are. this was not an isolated walmart issue. j.crew and lululemon also reported issues with their websites. i think these companies were not prepared for the amount of traffic they saw. on the one hand, that is a good thing. customers are looking to spend their money. on the other hand, you have to be prepared for that. the other issue with walmart was inventory management. like were reports of items playstation 4's selling out before black friday. good pointhat is a about inventory management. some of it is a problem. but others, like toys "r" us -- not toys "r" us. target. they had a big inventory of stores because of -- of toys

because of toys "r" us. brooke: target. alix: that was a good thing for them because it will get them more business. brooke: it is a tricky thing to manage. but more and more stores are trying to predict that out. some are buying inventory closer to the actual event with a better idea of what the trends will be. of nowere no reports toy inventories. david: the best thing is you can comparison shop without getting back in your car and going across town. alix: -- brooke: or if you have delays or checking out, it is easy to hop over to target and check things out. and walmart was sticking with their normal shipping policies, hitting that $35 minimum to get free shipping. target was rolling out free shipping without any sort of minimum, so that gives you another incentive, depending on

what you are looking for, to look at may be target or amazon, which is known for its advantageous shipping policy. alix: it would be great for those margins. [laughter] especially with the website difficulties. alicia levine of bny mellon. do you like retail? retail is good in the short term. the economy is going great. the wage increases of the last year or so have really gone to the bottom quintile of the population. so these people will shop. it is great for retail here. but again, retail is reflecting the same anxieties we see in the worldwide, which is the fear of growth i had. that will be the headwind, even the fundamental seem terrific now. alix: we were joking about it,

but where do margins re-rate where they need to the most? alicia: clearly and retail -- i want to talk about pre-buying on inventory before the tariffs hit in september. you have huge inventory and a lot of these stories, big box, in to be hit by tariffs september. if they think there is an issue in january, you could see -- and inventory. that is not good for stock prices. this is all ultimately related to china. david: when you talk about margins and amazon is in the room, it is a difficult discussion to have. the constraints and margins from amazon are fundamentally different from walmart and target. brooke: that is the struggle for old-school retailers. you see amazon pick up the practices that it likes from old-school retailers. the whole foods or just probably being the best example, where

you have them looking at people want to pick up their purchases in store a few that may be more convenient for people. they also mimicked targets approach to free shipping and gave that out to people who are not just prime members. able to pay countries what they like and are not worried about margins. alix: alix: so where do you go for safety? if you look at learning strength going into 2019 -- at earnings strength going into 2019. >> where we are in the market cycle, it is a good place to be. there are nice dividends. we like the services over pharmaceuticals from biotech because we think there some political noise in those sectors. health care seems great. utilities you buy if you think there is a recession coming. i'm not there yet, but that is

the fear play. i wouldn't advise that just yet. i do think the u.s. economy is ok. it is not exciting. it is nothing to write home about. we are a little worn out. but we are still going to power the global economy going ahead in 2019. what i need to see is that investment number pick up. i'm hoping the third quarter was a blip in some fears about china on the capex side. alix: thinks very much -- thanks very much. in the markets, we are also ok. you can wake up today and feel a little better. week for the -- the worst thanksgiving week for the s&p since 1989. will that followthrough as the session unfolds? in europe, equities up by 8/10

of 1%, led by a italian equities. conflict exploding over the weekend and raising u.s. sanction fear. in other asset classes here, a weaker g10 dollar story helping emerging markets, just not the ruble. 128 is how we set. theresa may goes on her i have to sell brexit plan to parliament. what is priced in? your bets are as good as mine. italian bonds, huge bid. yields down by 13 basis points. maybe we get some movement on from italy. crude up by 1.6% despite the fact that saudi arabia is

pumping out a record amount. everything could be a catalyst friday with the g20 meeting. david: also we are waiting for december 6, right? alix: some say if you have putin and trump and mbs meeting on the sidelines, that could somehow already decided. iran will be there to talk about it, but yes. david: ok. now we want to find out what is going on outside the business world. for that we turn to emma chandra with first word news. reporter: a warning from president trump. he said the u.s. will close its border with mexico permanently. the president tweeted a day after u.s. agents shot at tear gassed best shot tear gas -- shot tear gas at those who tried to reach the border fence. in italy, deputy prime minister possible signaled saying it to the eu,

may be willing to change its deficit target for next year. the eu said it may impose fines on italy over concerns of the growing debt. british prime minister theresa may and european union leaders are now on the same page. none of them wishes the brexit agreement to fail. the eu leaders agreed on a plan for the uk's leave the block. may will now try to sell the plan to a skeptical parliament. there is no plan b. ireland's prime minister said any other deal only exists in other people's imaginations. global news 24 hours a day, on air and on tictoc, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. david: the british parliament will now decide the fate of brexit after the other numbers of the european union agreed to a plan for thrall -- for withdrawal that left open some very important questions. john redwood, who

served for margaret thatcher. he comes to us today from just outside parliament. thank you very much for joining us, sir. guest: good afternoon. david: first of all, let's start with one of your criticisms of this new agreement, which is a truth in advertising problem. it is called a withdrawal agreement, but you'll don't believe it is. and i correct? it doesn't allow us to leave the customs market in the way the government promised and the way the people voted to do. it will leave us in a limbo world paying them lots of money, still in their customs union with another 21 months or more of arguments and negotiations about how we might relate to the eu when we eventually got around to leaving.

all of us on the leave side say no to this agreement. it is not a deal about our future relationship with the eu. if they can't get it together and come to an agreement, we just want to leave in march 2019 with no special deal. let's talk about the deal on the table. how much damage could that due to the european economy? i know you've tweeted saying basically it won't hurt us that much because our growth with the rest of the world in trade is much higher than it is with the eu at this point. is that your view? guest: that is the factual position. we have more trade with non-eu countries than with eu countries. for a number of years it has been growing a lot more quickly. but it is not about trade. it is about our domestic economy. the bulk of our economy is trading with ourselves, not overseas. what i want to do is get our hands on the 39 billion pounds,

$50 billion of money which the eu intends to lift off us under the withdrawal agreement. if we don't signed an agreement, we can spend it on our own priorities. we can have tax cuts to boost our economy, spend more on public services, so that i think that would be very good news. money is left in the covers of the government. let's go back to the trade question. although your growth is greater .ith the rest of the world if that went down substantially, with that cost the british economy a good deal of money right quick? mp redwood: there needs to be litigation on the money. the extra payments are about staying in the customs union by any other arrangement. we oh them absolutely nothing. as to our trade, it is far more

important than export from the continent. of course, once we are independent, properly next march, we could choose our own structure. what i'm arguing the government should do is reduce overall tariffs, but it would be imposing tariffs for the first time against eu food. we will import less food from the eu and grow more of our own and buy more from cheaper places around the rest of the world. that would be a win for britain, not a loss. what do you say to businesses who support theresa may steel -- theresa may's deal? mp redwood: i think they are quite wrong. there are not many of them. they think it will disrupt businesses. isy seem to think there something called friction at the ports that would make it difficult for them to import components. i just don't see that. i want the united kingdom government to announce tariff free on all components coming in

to be assembled in british factories, so no added problem. i don't see why the government would want to mess up our ports, making it difficult for large corporations to incorporate things they need. the government hasn't said that. david: finally, you served in parliament since 1987. you know parliament very well. can you recap for americans the likely that this will be voted on favorably in december by the parliament? mp redwood: it is very unlikely. strong, butis very this is a government with a very small majority. they are not going to be supporting this agreement. unless a miracle happens in the government, i can't see this

passing because all the opposition parties are also against it. david: thank you so much for your time. that is john redwood, conservative member of parliament from outside of parliament. ? theresa may is trying to order her cabinet to campaign for her theresa may--alix: is trying to order her cabinet to campaign for brexit deal. >> the deal is terrible. the brexit such a moment for the european union, and i want to state -- [indiscernible] >> i feel very sad, but also a certain sense of relief we've been able to achieve what we've achieved. >> the german chancellor was speaking of her genuine sadness that britain is leaving. do you share this sadness? >> know, but i recognize that others do. i recognize some european leaders are sad at this moment.

but also, some people back at home in the u.k. will be said at this moment that will be sad at this moment. is the way i look at it this is the way for us to move on to the next stage. alix: the stalwart theresa may. >> we have a binary outcome here. as you just heard, it is going to be very hard to get this deal through parliament. i think the way it happens is the mp's who are in opposition have to believe that a no brexit deal is worse than this, and i don't hear that coming from the labour party. i don't hear that coming from members of theresa may's own conservative party. , which isave the dup necessary for her coalition, and that is where the problem is. the problem is the northern ireland border. she depends on these mps for her coalition. very, very difficult to get any

more of a break with europe with the dup in the cabinet. david: as a matter of your investments' -- investment philosophy, do you avoid buying into a binary situation? guest: i would avoid volatility. if there is a hard brexit, meaning crashing out of the eu in march 2019, we see that the pound devalue's 10% to 15%. we think the devaluation of the currency actually helps cushion the economy. the question is how long is that transition. even if the economy is fine in eight to 10 years, what are you buy an in the next three to five years with real people, real workers in a real purchasing power? i think the ftse 100 does well because these are the exporters in the week and currency who can weakenedt's the -- the currency that can do ok. david: alisa levine, thank you

very much for being with us today. still ahead, we look at the future of money through the lens of africa. we will bring you part of my conversation with paypal ceo dan schulman. that's next. this is bloomberg. >> instead of going from cash, credit cards and data cards, they really have gone from cash straight to digital payments. i see that happening in a lot of the developing world.

♪ emma: this is bloomberg. today, theater financial advisor for mitt romney's 2012 presidential campaign. ♪

david: it is time now for our regular monday feature on the future of money, where rithika look at the different aspects of how the digital world will affect money -- where we take a look at the different aspects of how the digital world will affect money. i spoke to paypal ceo dan schulman. >> many of the countries in africa and around the world, the veryty of banks is different than here in the u.s. you sometimes have to walk tens of miles to the nearest bank. but if you can start to transfer money from one mobile phone to another because mobile phones now are almost ubiquitous -- in the next five years they are going to be 6 billion smartphones out there -- and a

smartphone, you have all of the power of a bank branch in the palm of your hand. so transactions that you would have had to go to a bank you can now do straight from your smart phone. bankon't have to go to a to take money out. you can go to a retail store where a cashier can become the equivalent of a teller. in fact, we just did a big partnership with walmart, which is going after this underserved population where people can take their paypal balance and take it out from the cashier and get cash that way, or give cash to one of the cashiers at a walmart and put that into their paypal account so they can be part of the digital economy. that is what we are trying to do , bring people into the digital economy. if you don't have a credit card,

how'd you transact on e-commerce sites? you can't. but we allow people to take cash, put it into a digital wallet, and then be able to be part of the digital economy and do basic transactions at very low friction and very low-cost. david: what resistance, if any, have you had in african countries from the governments, regulatory authorities, or local banks? guest: for the most part we now partner with banks. we want to partner with banks. come ave capabilities deposit capabilities, investment capabilities that we don't desire to offer, and we want to partner to go into those offers. so where there is a bank, we will partner with them and become sort of the front end of digital distribution for that bank, but will consume those banking services and offer and

extend those to those consumers. where there aren't banks, so many of the regulators and government officials that i meet with all over the world, what do they really want? they want financial health for their citizens. we are so simpatico with what they want and what our mission is. we want to extend digital payments. they want to extend digital --ments because it takes for it takes friction out of the system. it takes middlemen out of the system where they can be graft and so much leakage from a benefit program finally reaching the end user. by using digital payment technologies, you eliminate that leakage, so it can be so much more powerful for governments and for their citizens to do things digitally. david: many economists see

africa as a great potential. it is a huge continent with in artists -- with enormous resources, people, things like that. what is your growth rate their? what is the potential for paypal, and more generally for financial services in africa? guest: if you look at developing countries, so many of them made look at, if you different technologies, they sort of leapfrog a certain technology. they go straight to mobile as opposed to land lines because land lines would be very to go and that, whereas in developing countries, theent from one step of technologies chain at a time. the same thing is happening in financial services. kenya is a perfect example. over 50% of the population manages and move their money through digital payments today. that is a leapfrog from where

they were, predominantly cash oriented. instead of going from cash to credit and debit cards, they have gone from cash straight to digital payments. i see that happening in a lot of the developing world. david: that was part of my conversation with dan schulman, paypal's ceo. this is part of our week long series the race for africa. another we will address aspect of the rapidly developing continent. he's a thoughtful guy running quite a company. it is interesting how they figured out a way not to compete with the banks in africa and other places, but really cooperate with them. alix: it is going to be really interesting to see what other areas you can leapfrog and how investors are taking and finding opportunities in that, particularly with impact investing being really hot as well. have you leverage that innately for africa? we focus onwith --

that in asia, the largest continent, but we can not to see that in africa, which arguably has the largest growth potential. alix: in a few minutes, goldman warns about a potential dry up in liquidity. this is bloomberg.

♪ big: in goldman sachs' ideas, they wrote in a noted that with no discretionary money to take the other side, market liquidity is drying up, causing commodities to decline, making them appear to price a more dire demand outlook. basically they are saying an entire portion of the market has been removed, so you have a different type of trader in the market. so commodities are now trading with a longer-term view, which is normally odd because commodities are supposed to be spot assets trading current

supply and demand. that mismatch has created vulnerability in commodities not seen in other asset classes, and if you create opportunities, you can buy there. saying they are taking a longer-term view, but the asset is not supposed to trade like that. supply and-day demand fundamentals are not taking a big enough road in the commodity price, but it is not just that. it's a good call with short-term bated breath. up, -- as is bloomberg.

jonathan: for our viewers worldwide, i'm jonathan ferro. the countdown to the open starts now. ♪

coming up, investors bracing for the g20 as a much anticipated negotiation between presidents trump and xi. saudi oil ministers heading for argentina for a pre-opec meeting. a week full of said speak. with it -- of fed speak. 30 minutes away from the opening bell this monday morning. here is your bid after an ugly week. futures posited by more than 1%, the euro firmer despite softer german business confidence, and a 10-year on offer. yield up three basis points to 3.07%. investors leaving behind an ugly week for equities, bracing for a week ahead. >> come monday, we are back into this game. >> a lot coming up. >> no one knows the outcome of a big group of macro events. >> when azeri's desk when