francine? rollout any sort of mediation talks with leaders,? how would you resolve the conflict? coming up shortly is bloomberg daybreak america. david joins us. what you have for us? david: we will have part of your interview. if we get lucky, we may have you on the show, francine, to talk about it. this is budget day. republicans are deciding this is the path to tax reform. we will have the ranking member of the house budget committee. he is one of the key people to say doesn't get down and what will we know -- he is one of the key people to say does it get done? tom: looking for to that, david. time for single best chart. what a joy and an honor to speak to the vice chairman of the fed yesterday, stanley fischer. we are going to link marc chandler with the job's reports and the extraordinary improvement in employment. to your world that is linked into the work of irving fisher from three generations ago, the fisher effect. tying in together interest rates and inflation in this economy. marc:

francine: "surveillance" with tom and francine.h party amassed more power than any leader in a generation. with a break with the succession system, all new members of the standing committee will be too old to rule after xi finishes his second term and opens up the prospect the president stays in office in 2022. let's go to beijing joined by our correspondent, tom mckenzie, who has been covering the people's congress. first of all, great work. what do we know about the president's priorities from now on? how much is he focused on consolidating more power and how much on deleveraging the economy? tom m.: a key focus and footnote in chinese political history at the very least, yesterday and today, his name enshrined in the party charts and now unveiled the standing committee and no clear successor, this was set by ping in 1992. when president xi sets out with the six men behind him, these are men he worked with in many cases for decades, these are people he can trust. the question is really will this concentration of power mean he can

francine? catalyst?ary in the coal mine we should be watching for either a correction or a leg up? michael: some people are looking at the credit trends from the banks that recorded this week and wondering if it is some sort of turn in the credit cycle. it does not look like it is. credit trends were so positive for so long that it is not surprising to see a little bit of a giveback. friday,ook at every when the song puts out her table of earnings forecast and i look at the 2018, 2019, i still see double-digit earnings growth forecast for those years. until they start to look too optimistic and start coming down , i would obviously still be pretty comfortable with this market. valuations are high, but if i am looking out 2, 3 years in the future and still seeing the potential for strong earnings growth i would not be too worried. francine: let's bring in bruce kasman, jpmorgan chief economist. is tax reform a game changer for inflation or gdp? bruce: if we got a big tax cut it would change the macro econ

francine. francine: mark, thank you so much.re just talking with nikhil srinivasan and we have a question from a viewer. this is a question -- we were talking about complacency in the market. would you say that the complacency originates on a majority of the disgruntled are not amongst its players. it something we should become worried about for markets? .ikhil: the question is fair i don't think you have to worry about it is a constant something might happen, but the consequence from a policy point is it will have to remain relatively loose it on the monetary side, will have to remain loose as well. tightening cannot happen. if you want the disgruntled to be feeling better off. i don't think any economy in europe can tighten today. or the u.s. no, i think fiscal policy has to remain expansionary. francine: this is why you have talked about normalizing, not tightening. --sident trump and miniature and steve mnuchin has -- have met with kevin walsh. it will be steady as she goes which is normalizing. the gilles: my point about no

busy morning, francine. francine: thank you so much, mark.el is agreed to a cap on immigration in her first concessions and last month's election. merkel's party will limit the number of migrants to 200,000 annually. they can move ahead to a coalition government with the free democratic party and green party. porter.th us, william peter, let me take up with you. this is the end of an era. we don't know who the replacement will be, we understand that maybe someone from the free democratic party. what does it mean for european economics? peter: i think in terms of the bigger picture, obviously the election results were a shot across the bow for angela merkel's policy of europe housing them for many years. that in turn is significant. we might see means a little bit less emphasis on it --, which has been at the heart of policy domestically. i think there will be many people will be quite glad. he isct of the matter is done a pretty fair job of managing the german economy. it is going to be up to the next government to keep the economy on track w

francine: widget? jon: -- francine: would you?sure but you have to find a company that is doing poorly and run by crooked people. francine: we will be talking more about monarch airlines next. a host of top french ceos are gathering in paris for a conference, an event hosted by the government investment bank. it's the first since the election of macron. the future of france is top of the agenda. witheporter is standing by nicolas dufourcq, the ceo of bpifrance. i'm very happy to be joined francelas dufourcq, bpi chairman and ceo. since the election of macron, perceptionthink the of foreign investors to chance has changed? >> it has changed a lot. they're coming to france and they think france is back. the reality is that the track of the country is there. ande is loss of been passed the opportunities and the way we do business in the country. the corresponding to be revealed. we are welcome to investors now. when it comes to u.s. investors, even though more investors are happening in france now, in the u.k. for example, how are yo

francine?europe -- we areg a touch trying to get the details of how this kind of asset purchase can go on in 2008. i am looking at sterling extending a rally after ge negotiated and may offer the u.k. a two-year transition deal -- transition to go -- transition period. kevin cirilli, what do we know the president will say? tevin coleman -- tevin coleman the president will be making these remarks -- kevin: the president will be making these remarks. this is not a full withdrawal but it does fill a campaign promise in which he tries to get congress to make this deal more strong for the united states but there is a lack of substance in terms of how congress might act of how republicans might act. we have seen them struggle with other legislative items. francine: we just got released from the white house. kevin: for businesses looking to make business deals in iran, they are already prepared for uncertainty in the region. this will only make it more difficult. from a broader perspective, the admini

francine lacqua.get straight to the bloomberg business flash. weighing the sale of aluminum. the company has been speaking with potential buyers for dunkirk in northern france. regulators in europe and asia the role staffng may had made in transferring billions of dollars and private bank client assets before new trap -- new tax transparency laws were introduced. a spokesperson for standard chartered declined to comment. customers single a declaration it -- of independence may cause them to pull from catalonia. according to a person familiar with the metal, -- with the matter, -- that is the bloomberg business flash. francine: the spanish prime minister convened his cabinet today as the financial and political squeeze titans. meanwhile, the catalan president ands economic damage isolation if he pushes forward with plans to declare independence. our reporter has been covering the story from the very beginning. what can we expect from the cabinet meeting today? the cabinet meeting is happening right now

francine can do better than i can do, oil is elevated. francine?ot of focus once again on currencies as we try to figure out what happened to the euro on the back of a rallying spanish asset, so what happens with abalone at, we're looking at the dollar drifting and oil rising above $51 a barrel as opec predicted. tom: let's do an optimistic chart, small business optimism yesterday. this is michael mckee favorite charts, the glory of the jolt survey in 2007 and then down we go with job openings, less, less, and have they rolled back, they are 27% higher than they were at the peak of 2007. that is a remarkable chart of many job openings francine in america. francine: yes, something we definitely need to keep an eye on. have clues, whether they focus on stability rather than lack of inflation. tom: don't forget a conversation with the dome and from carnegie melon, charles evans. look for that in the 8:00 hour this morning. let us switch, we had andrew sheets on earlier, here with bonds, priya misra is at td securities and the head of rate strategies a

francine: thank you so much. ♪ francine: will taylor rule? is said to have impressed president trump, surpassing kevin warsh. mark carney will testify at the ukip parliament treasury select committee, fielding questions on brexit. and the fight for the skies. programc series jet challenging china's ambition. one of the biggest interviews i am looking forward to today, we speak to david herro. 90% of the swiss bank. good morning. this is "bloomberg surveillance" and i'm francine lacqua in london. tom keene is in new york. tom, we are looking at european banks, the next fed chair. tom: we have seen swiss banks this morning, a real impatience out there. yes, absolutely. north korea is threatening that nuclear war could break out any moment. kim jong un issued a warning as u.s. began and tghehe one of the biggest naval drills in the peninsula. theresa may's attempt to get brexit talks back on track yielded little. she flew to brussels for a din er with jean claude juncker. the national court the there is evidence that catalan police chief surrend

francine?nt has said that his government would act of the end of the week or the beginning of next week and trigger a 48 hour counts down to a unilateral declaration of independence. spain says their impotence has no place in a state. maria has been following this is the beginning. give us the state of play. will investors be worried about the consequences of unilateral secession? real escalation over the past hour and it looks like the ministration is willing to take this to the and. the king came out and said on national television that that administration had gone full rogue. it's time to get united, this is not just politics, it's the state of the nation at state. the catalan president is going to address the people at 9 p.m. today. expect, know what to but think he will give a sequence of events. this would enact a new republic within 48 hours. if they meet monday, that means they want to take this the final end, no matter what that means. francine: what does the final end mean? caps on he

francine? francine: this is what am looking at.aybreak: americas" and jonathan joins us. i know you will be all over catalonia. jonathan: the backdrop to all this is that we finally have global growth and if you are a politician or policymaker and you are tempted on to embark on a bit of victory laps, i would say be cautious about that. you have the politics of brexit far from being addressed and you have the divide between madrid and barcelona. we will cover these stories with the former imf chief economist. i will do his best to do a better interview on bloomberg radio. tom always tries his best. i'll it says he needs to succeed because he's my on her husband. jonathan ferro with a sense of competition. deutsche bank ceo john cryan seems to be losing the support of some investors. that is what we seem to understand by speaking to some of our sources. speaking on condition of anonymity, three largest stakeholders say they want to see a turnaround in the trading business. a spokesperson for the bank declined to comment while the bl

francine: how do you explain brexit?king: so it looked as if there was a propaganda campaign going on. ♪ >> the governor of the bank of england, sir mervyn king. francine: in 2013, mervyn king stepped down as the governor of the bank of england. after a decade at the helm. he helped steer the economy out of a financial storm, but he did not stop sounding warnings that the world faced a new crisis unless there was reform in the financial sector. where do you think the next crisis lies? lord king: i would guess if i had to it would be in the area of higher amounts of debt, which because the amount of debt in the world today is higher than it was years ago. i think the risk is that there will be some defaults around the world, which will not look coordinated or related, but actually they will have knock-on effects and lead other people to default. i think once that happens, you may find the banking system once again looks maybe overleveraged or undercapitalized because the losses that they will take as a result of these def

francine: did we see early signs of it? mr.ing: i think we saw signs in the world economy, and we should have given more weight to the rise of leverage in the banking system. at that point, the banks themselves were deeply reluctant to admit what was going on was not sustainable. francine: at what point in the lead up to the financial crisis did you think there was something seriously wrong? mr. king: i give a speech before the crisis erected in 2007 at the mansion house in london. ignore the unsolicited emails that rained down on us offering unwanted credit. i received one last week that began, "we have the solution, mervyn, for your bankruptcy." [laughter] mr. king: excessive leverage is the common theme of many earlier financial crises. are we so much cleverer than the financiers of the past? that was not a welcome statement. it turns out we weren't. i don't think it is ever easy to say that that particular level of leverage was going to generate a crisis. there is an element of randomness in these small events that triggere

francine: no. [laughter] >> the market has extrapolated soft inflation data and focused too much on a small number of data points, which will not be sustained at that level. the market typically focuses on what is right in front of it and that is the wrong thing to do. it is right to take the long-term approach. in addition to that, we started this year with the longfellow position being very much the consensus position across the market. we saw that in much of the speculate of data we highlighted earlier. we saw that in blackrock's phone data. there was a widely help consensus, the longfellow position. on the other side effect of that, we has inconsistent surprises in terms of growth, which have led to the unwinding of these positions. eventually the consensus short dollar positions and b environment where the market has rate hikes.few francine: from what you are saying, it makes 100% sense. is it algorithms reading things wrong in the markets? de is it pourehor mentality? >> i think they are extr

francine: right. the chinese authorities have your support in saying whatever happens they can deal with it because they have the 12, or do you worry that we are too complacent about what happens in china? nejra: i worry, because --diana: i worry, because gdp growth has slowed down. we have this reflationary aggression coming through. the message from the party congress is one that does not bring confidence in terms of the direction of policy. it actually has raised the risk further down the line being worse. tom: you have got to see this chart. this is pork inflation in china. inflation than you think. food inflation is down. you nearly, diana. here is pork inflation in china. the higher inflation we get, it is because this trend reverses? diana: it is both. we have this typical chinese excess supply story with food prices, which have diverged , which food prices didn't used to be the case. this is likely to reverse, but that is not the important story. is they important story are cutting capacity an

francine?ck of that chart, it is amazing how the markets swung on the hope of tax cuts. the dollar rising along with treasury yields after the u.s. senate passed a budget resolution last night. a gave momentum to donald trump's taxcutting agenda. meanwhile the rates for the fed chair continues. towardt be steered choosing john taylor. we are joined by the ceo of man assets of over $100 billion. shing.th us, edmund ed, i have known you for longer time. who is next fed chair? what is the markets thinking? you also get someone who is a dovish in the fed. yes.d: cuts come it tax think what is clear is the market have underpriced the potential for tax cuts from the trump administration. if you were to go back a month or two, you would've been maybe, they didn't get anything done on health care, why should the trump administration be any more successful in putting through a tax cut agenda? what we have seen is an improvement in the probability. for instance, if we look at our own tax cut basket of st

♪ francine: confusion in catalonia.he region leader fails to declare a clarification of his attendance best position on independence. we are live in barcelona. the deputy minister of spain give a statement shortly. inflation. janet yellen tells the world central bankers that she sees crisis picking up soon. the u.k. prime minister hun sen brussels. can she break the deadlock on break the negotiations? bloombergng, this is surveillance. we have another packed week. first things first. let's check on markets. we are expecting about half an hour from now the spanish deputy prime minister to make a statement on catalonia. stocks in europe nudging higher. miners gaining. oils also gaining. the euro weakening a touch. spanish stocks falling. let's get straight to the bloomberg first world news. his sebastian salek. sebastian kurtz has declared victory. a win for his people's party would shift the politics to the right. it is also seem to have paved the way for the eurosceptics party to be in government. angela merkel has to t

francine: how do you explain brexit?the governor of the bank of england, sir mervyn king. 2015, he stepped down as the governor of think of england. he did not stop sounding warnings that the world faced a new crisis unless there was reform in the financial sector. where do you think the next crisis lies? mr. king: i would guess that it would be in the area of high amounts of debt, which the debt in the world today is higher than it was years ago. there will be some defaults around the world, which will not look coordinated or related, but actually they are not on effects that will lead other people to default. once that happens, you'll find the banking system once again looks overleveraged or undercapitalized because the losses that they will take as a result of these defaults will eat up some of the equity capital that they have on their balance sheet at present. i think that is where we may see -- we can see examples in china. there been some defaults. greece has effectively defaulted from hard of its debt -- part of

i'm tom keene, with me, francine laqua. francine: it was pretty beautiful.we will put up shortly. it's pretty spectacular. i think it is just been voted the most sustainable office building in the world. i can't wait to show it to our viewers and listeners on radio. tom: let's go to sustainable first word news. taylor: starting in china, the communist party has elevated president xi jinping to the same status as mao zedong. he is the first sitting leader since mao to be named in the document. more power to enact policies a reshuffle tomorrow. prime minister theresa may's cabinet is under pressure to agree on the kind of trade deal britain wants after leaving the european union. to urgebusinesses want an agreement that lets them trade as usual for two years after brexit but may have ed there will be a swift transition deal. america's top general says it may take weeks to figure at what happened in the ambush of u.s. soldiers in niger. joseph dunford said the u.s. patrol did not expect contact with the enemy. four americans were killed in the fight. the convic

francine: what does brexit mean?sa may, prime minister of the u.k. giving that speech , in florence? was it helpful? does it seem like they are softening their stands a little bit? >> it is modestly helpful. we will have to see the details. i do hope the brexit and united -- brexit negotiations get on a straight course with a clear roadmap, because this is what we need. what we don't need is further uncertainty in europe. francine: what does it mean for you specifically? if you have tough brexit negotiations, can italy actually be a beneficiary because people are moving from london to milan? >> this is an important side effect, and milan is an attractive location like other cities. so it is a welcome side effect. the point is europe must find new momentum for integration and complete a banking union, but also develop other areas and promote growth with a single market. ♪ policy was also top of mind this week. janet yellen and other officials spoke publicly about inflation and the state of the global economy. bloomber

he spoke to francine lacqua in an exclusive interview from madrid. point that important was very relevant in the discussion, that the european parliament held yesterday. isis that the rule of law the main question. it is the main point we have to enforce. it is the legality we have to defend. there is nothing acceptable outside the legality. we have been totally open to discussing with the catalan government, but it always has to be within the framework of legality, and the framework of the spanish constitution. if we accept any sort of, let's say, mediation or arbitrage, we are setting a very dangerous president not only for spain, but for the whole of europe. francine: what i am trying to understand is, would it be the same police that went in on sunday that would implement article 155 if that was the road the spanish government decided to go down? : the spanish government has different instruments. in order to enforce the law -- you cannot be totally sure if people will be furious, and can be totally assured. we will use the instruments we have av

nejra cehic and for francine lacqua -- in for francine lacqua . -- davidtzker rubenstein on the changeswe will stay involved in the firm and i will be with the coexecutive chair and bill will serve as co-cio. we are not walking away but changing our roles. we let the new people run the firm day-to-day as of january 1. >> how much leeway will you give them? >> a fair amount, you cannot have a successful transition if you are helicopter and over people and we do not want to be helicopter parents. we will keep involved and help you as weekend and tell us what you want us to do. you guys run it day-to-day. >> this was largely a decision that was yours to make. when did you personally and why -- it could have happened at 67 or 69, why 68? >> we have worked together for 38 years and we began to feel that it is time to hand over the reins to younger people. it is not clear that people who , 67, 70 what are the best leaders of the future and we did not want to wait until it is too late and people say we should go. they were not saying it. >> why these guys? >> glenn has been with us for 23 year

matt rollings introduced me to francine in 1984. viktor krauss, he's played bass with me since 1994. buckweed's played steel with me since 1993. - what is the secret to keeping a band like that and the personalities that you just described together? - you know, they're all solo artists. they're all solo artist, and i'm just grateful that, that they wanna, they kinda put aside what they normally do for a couple of months every summer and come on the road with me, and i'm just, i think it's just because we're friends and because those earlier recordings were part of the beginning for all of us, really. - well, and honestly, they left a mark as they say, right, i mean the fact is those earlier recordings are not just anybody's earlier recordings. they left an imprint on a lot of people, and when they think about you, they think first about those early recordings, it's had some longevity to it. - well thank you, thank you. - and you're good with that. - well, i'm just grateful to, you know, there's not a bigger privilege in the world th

i'm francine lacqua in london. all be live at a conference

francine: mervyn king was at the epicenter of the biggest exercise in crisis management in modern financialhe was in charge of the bank of england in 2007, pumping billions of pounds into the

francine: here is boeing's response. the case in the u.s. has been about compliance with trade law.e recent rhetoric regarding these proceedings, this case remains to focus on preserving a level playing field in the aerospace market. mark: the ecb could be close to making a change. while learning from exclusive bloomberg reporting, the central bank considering cutting the monthly bond buying by at least half. starting in january. policymakers could reach an agreement on how much that the central banks will buy at the ecb's october 26 meeting. is there any to stipulate that it will end in september? is that causing some division within the ecb? >> it is quite clear that a decision will be reached in october and it is also quite clear that no matter what the hawks or dubs can be, everybody -- doves can be, everybody is in agreement, it seems. they want to exit the program gradually and carefully. whatever reporting has shown is that this compromise might lead to extend the program for nine months at the pace of 30 billion euros per month, which is the -- half of what has been happenin

we are looking at francine's favor chart. she is watching.5 kids today. in the united kingdom, it is the real age -- the headline for me is not only did they go down under zero, it rolled over again. the politics of this to me, whatever the nation is, it is profound. how can you put in a hawkish regime in a time of negative ges? rages -- wa george: how far we go and what it means for the conditions will take time to evaluate. tom: that is fair. george: hindsight is 2020 and we will look back one day, but come even europe is doing better. tom: i will go with it. it is likely to for bailey -- that is a joke. what will kyle taylor do? -- pow ell taylor do? we will have to look at a soft data and the hard data, look at transitory and all of that -- or do we actually get the courage that you have spoken about? george: did order to get the courage, look, if powell gets the nod, this will be a will play to view where if we get powell as the fed chair it is really donald trump setting up for tax policy. if we get that it will put the u.s. growth into

francine and tom keene will be joining you shortly. digital radio another option for listening to bloomberg. anna edwards and i will be taking you through the next hour. at this point in time, we are waiting for some steer for these european markets. have great interviews coming up. charles evans will join us tomorrow at 1:30 p.m. london time. looking forward to that conversation. this is bloomberg. ♪ ♪ francine: the region's president has due to address lawmakers in brussels today. will he declare independence? japan's industrial scandal, nissan and toyota. how far will the scandal go? the ceo of deutsche bank said to be losing support out of investors just seven months into the latest plan. good morning, everyone. this is bloomberg surveillance. we have a pretty packed show for you. we will have currency checks. also

this is "bloomberg surveillance" and i'm francine lacqua in london.ijing to bring up the latest from the party congress. we bring in theat

francine: mervyn king was at the epicenter of the biggest exercise in crisis management in modern financialge of the bank of england in 2007, pumping billions of pounds into the economy. joining me on "leaders with lacqua," former bank of england go,

looking forward to that conversation with francine lacqua. a game of thrones. favors in the betting markets as trump's picked for the fed chair. a speech at 2:00 p.m. today. municipal met down. president trump's suggestion that puerto rico o.a.t.'s debt be wiped out spooks -- puerto rico's debt be wiped out spooks wall street. welcome to "bloomberg markets: european open." i am guy johnson in london. 30 minutes folks into the trading day. how are things shaping up? more from the ibex. we are trading just sub 10. we have come back some way after yesterday's big moves to the downside but not a long way yet. we are seeing a little bit of bottom fishing coming in some of those stocks, which in many cases have been global exposure. maybe, we are overdone on the downside. ftse gaining on the upside, which is interesting considering are a whole lot of ex-dividend for the ftse consider as well. me move my launchpad out of the way. i am seeing a little bit of a move in cable, which is maybe worth paying attention to. you are seeing the movie the downside as you can see

. ♪ francine: the fed shortlist.election of names to replace yellen. from the chair to the throne, of king's speech speaks unacceptable disloyalty from catalan separatists. no deal fears. the u.k. government is worth they could clash out of the eu. this is "bloomberg surveillance" and i'm francine lacqua in london. happy wednesd

francine: mervyn king was at the epicenter of the biggest crisis management in modern banking historyme of the bank of england in 2007

nejra cehic in for francine. about eight things to talk about in washington today.em with our first word news -- here is taylor riggs. taylor: the house's cheap tax writer has backed off a proposal to end the federal income tax rate for property taxes. gave in to concerns from republican lawmakers in high tax states. brady is expected to release the actual text of the bill wednesday. this is the week trump says he will make an announcement about the next chairman of the federal reserve. according to people familiar with the matter, he is leaning towards jerome powell. in an instagram video, the president said people would be very impressed by his selection. newfirst has of catalonia's reality may come today. that is when civil servants decide whether to follow calls from the independence movement spanisht their new masters. in barcelona, hundreds of thousands of people protested the declaration of independence. has -- prime to minister has ousted cabinet over thend taken police. prime minister theresa may demanded new to protect staff and colleagues from unwanted se

refugees to stay for a few days before they're resettled here in the democratic republic of congo francine says she fled her home in neighboring rwanda when men came to her house tied her up and abducted her husband she's heavily pregnant. i saw them carrying him away i was left with our five children then i decided to come here i arrived in february and camped outside the fence for two months before they allowed us to come in. many others here also told us they camped outside for months before they were allowed to come in and register. the un and the government who run the comes to the nearby long term refugee settlement now full and the transit comes filled up because of a new influx of refugees fleeing violence in the run the earlier this year the camp is within the town of era which is close to burundi the borders just a couple of hundred meters down this road and this is where most of the refugees came from just over a week ago a congolese militia came down from these hills and attacked the town they fought with the army and at that point all of the refugees who were camped outside we

next one, francine, trying to see it on screen, too late, most are still linking arms, disrespectful forget about it. the only reason this is happening is due to the drop in nfl ratings, there has been a drop, they neglected to realize americans need them and americans can break as well don't bite the hand that feeds you. darlene says the nfl has an irreparable damage to its image, when seen as a patriotic organization they lost those fans forever. keep giving us your opinions. heather: that wraps it up for this our, see you back here at 4:00 tomorrow, "fox and friends" first continues now, goodbye. rob: it is wednesday, october 11th, donald trump talking taxes in pennsylvania. what does this mean for your bottom line? rob: hillary clinton announcing -- denouncing harvey weinstein. what took so long? rob: tanking ratings and tax breaks on the line and roger goodell has newfound patriotism, do the little the little too late, "fox and friends" first continues right now.

on thursday will be at the jewish museum for francine on the life of israel's fourth prime minister andon sunday we are on the west coast at the jazz center in san francisco for the 2017 american book awards. that's a look at some of the events book tv will be covering this wining, many of the events are open to the public, look for them to air in the near future on book tv on c-span2. [applause] >> good evening. how is everybody doing? this is my kind of crowd. everybody is excited to be here and excited to talk to each other.

francine: we were down to below the 30's not so long ago and a i think the-- companies have been saying had started, since we came down from those 100 plus levels, that they had to get ready and get their business is ready to be profitable and to continue to invest at those lower levels and i think they will still be doing that. if they are getting $50 or $60 oils, that means a little more cash for investors. we're coming from a period where we had several years of little or no investment or money being pulled out, so that will have an impact toward the end of the decade, when some of those projects that should have taken place before didn't and there will be a lack of oil in the market. moves, a market that ,here are a lot of moving parts we saw a push for the kurdish referendum last week that would likely not last assuming that they find a diplomatic solution to the issue but if oil does get taken off the market then we will see it coming back up again. assuming there will be a diplomatic solution, that this is more of a bargaining chip, we should see markets continuing to be supplied

francine: for us, -- gary: for us, what is going on the market, and you guys see it as well, you haveory reform, massive digitization of all of the technologies -- that is returning investment across all of these great products. let's not forget cyber to rock on top of that. when you think about artificial intelligence, it is one more way to quality. in the see it impacted back office, i think we well, but it will take time. we are doing as, lot with artificial intelligence today and with other technology. this technology will take multiple years to roll across. vonnie: what is the next frontier? we are only hearing now about things that were being worked on several years ago. fat will be implementable in ive years', 10 years' time? gary: that is what is so exciting, it is moving at a really unprecedented pace. when you think about the digital market outof every there, that requires a massive change of everything underlying to support that. when you start talking about the changes of artificial intelligence, i do think that is coming over the next i've years. so there -- next five yea

. ♪ ♪ francine: nuclear dear -- nuclear deal limbo. the qe question.sider cutting its monthly bond buying next year. good morning. this is "bloomberg surveillance ." we have a packed show for you. an hour brexit show. weil

. ♪ ♪ francine: confusion in catalonia.ails to declare a clarification of his attendance best position on independence. we are live in barcelona. the deputy minister of spain give a statement shortly. inflation. janet yellen tells the world central bankers that she sees crisis picking up soon. the u.k. prime minister hun sen brussels. can she break the deadlock on break the negotiations? bloombergng, this is surveillance. we have another packed week.

francine: you look at the world of ai, what is the actual piece of technology in ai that is the most>> we have a piece of ai that listens to every single conference call from company management and is screening through for -- it's decided what words are the most interesting ones. one of the things is, the words you would expect it to look for like "challenging" or "difficult" you would think company management says, it is bad news. as the company's ceo, you learn very quickly. those words are clear. it is subtler words that machine learning is good at picking up that are the things telling you, while it says this in the headline, this is really what the person thinks. it is not, maybe one day, they will be able to judge by the way eye twitch or blink at the wrong moment, but they are not doing that today. wordshe use of certain does tell you what somebody really thinks about what is going on. mark: coming up on "bloomberg best," the week's most interesting interviews. a conversation and frank talk on the oil market from top chief executives. plus, lessons learned from a crisis three

. ♪ francine: it is jobs date in america. how much can meet test can be read into today's numbers?much can we read into today's numbers? the catalonia crisis. banks signaled they may quit the region. quitsa may faces demand to as a next cabinet member since he is building support for a campaign to oust her as the pound we can. good morning. this is "bloomberg surveillance