opposite is his wife, queen caroline who caroline county was named for. she was popular because she never bothered virginia. it was not only the stamp act that caused problems here but later legislation would also. as a matter of fact during the towns and duty debates -- towns end duty debates and during the , debates about the boston pork bill, which happened as an answer to the boston tea party, that would lead to this assembly being dismissed by the royal governor. real governors had that power at this time. it was determined they had to close the port of boston. they adopted something that seems mild to us, a day of resolution, fasting and prayer. the governor said only the king, the head of the church of england or his representative in the colony could do such a thing. he dismissed the house, which played into the hands of the virginians. shortly thereafter they pointed out that the house had not passed the fee schedule to allow the courts to meet, or allow the militia to meet. the governor himself deciding he personally had to go out to fight the s

and opposite is his wife queen caroline who caroline county is named for. and she was very popular because she never bothered virginia. at any rate, it was not only the stamp act that caused problems here in virginia, but later legislation would, too. as a matter of fact, during the townsend duty debates as well as during the debates about the boston pork bill which happened as a parliamentary answer to the boston tea party as we call it now a days, well that would lead to this assembly being dismissed by the royal governor because royal governors had that power at this time. it termed out that it was determine that had they had to mark the port of boston, so they marked a day of fasting, and prayer. but the governor said only the king, head of the church of england, could do such a thing and he dismissed the house. which played into the hands of the virginians. they pointed out that the house had not passed the fee schedule that allowed the courts or militia to meet. and virginians started meeting as conventions of the people of virginia. the first one tha

opposite is his wife queen --oline who caroline canty caroline county was named for. it was not only the stamp act but caused problems here later legislation would also. debates, and during the debates about the boston pork bill, which happened as an ,nswer to the boston tea party that would lead to this assembly being dismissed by the royal governor. they had that power at this time. tos was determined they had close the port of boston. they had a resolution for a day of fasting and prayer. ,he governor said only the king the head of the church of england or his representative in the colony could do such a thing . he dismissed the house, which played into the hands of the virginians. they pointed out that the house had not passed a schedule to allow the courts to meet, or allow the militia to meet. with the governor himself deciding he personally had to go out to fight the shawnee, they started meeting as conventions of the people of virginia. the first would go ahead and and george washington patrick hindery the first continental congress where the elected as thee f

caroline hyde joins us now. the ceo of norway sovereign wealth fund. a man who is sensitive. caroline: this is the biggest wealth fund in the world. $860 billion. to put it in perspective, they aim to own a little piece of every single company. 10,000 companies they have holdings in. holding 1% of all of them. this has global significance .hen you speak to the man he is saying this is a new paradigm shift them. for the first time they are seeing funds lower when they come in. the money coming from oil and gas revenues from norway are slowing. the government the first time is taking money out to help support their own economy. he is saying this is a difficult time when it comes to having to re-orientate their business. when you have money coming in, whereharder to change up you want the assets to be spread across. guy: they have been cutting their bond holdings. thatine: this is a company puts 60% of its money in equities and real estate. he told me that in this new world of low negative interest rates, he says that is been the defining touristic of 2015 desk defining characteristic of 2015. they've been making significant changes. >> wherever a considerable rate and bonds. considerableave a rate and bonds. carolinee word dramatically i askedtheir holdings. about the federal reserve rate hike. is this the way they want to see things going back up he did not seem to flinch at the moment. he seems as though he feels lower rates are here to stay and therefore they need to get money .nd in terms of money how do you up returns? you keep going into equities in the emerging markets. folkestone china despite the concerns of slowing growth there. back to you. jonathan: thanks very much. let's welcome our guest. heels to manage assets. a longtime head -- alongside him, abhishek deshpande. abhishek, we see the effects of $40 crude, sally, etc.. are we sitting here waiting for demand to pick things up and try to bring back some kind of demandrium? abhishek: growing significantly next year. that is where the expecting support to come from. have a look at our own analysis, i think demand will be up next year, year on year. the same your and your you don't is a priceree there plasticity in place. we're looking

caroline and andrew, from australia, are, and i'm serious? ((wedding organ sfx)) getting married in the line thursday. sot: caroline ritter n: who's officiating? we have a very good friend that happens to be a celebrant and also a big star n: obi sean? (nats - trailer) "the force awakens" will open on over 4,000 screens this week. ((rewind/scratch tape sfx)) back in 1977, star wars opened on just 32; this one included. an instant hit, darth vader was soon leaving his footprints here outside the chinese theatre? then transition into (video: jason standing in those foot prints.) sot: jason thomas j: george lucas watched the first one from here. are you kidding me? this is the place to be. (nats - from man in line in 1999: "feels great!") in 1999, for "the phantom menace" - the line at the chinese tradition was born. sot: alyse gagne (with baby on her hip) i ended up meeting my husband in line in 1999. n: and this is the result? (points to baby) / a: this is the result. it's a little kid inside me wars glorious nerd-dom, it's right here. now let's take a look at today's top stories now today marks 104-years since explorers first vent

caroline. caroline hyde out in paris. let's go from green to orange. are we going to see a deal? we just had a statement coming through from bouygues, whothey have no statements to telecom,from the reaffirming its presence. we will talk about that next. ♪ guy: good morning, this is "on the move." the ftse is lower this morning 42 minutes into the session. anglo american off by almost 4%, as the company scraps the dividends. cash and commodities tumbling, iron ore saw the $40 per metric in the commodity market. let's cross over to nejra cehic for your business flash. nejra: morgan stanley has named a new talk treasury trader. bank plansmes as the to cut as much as a quarter of its fixed income stock globally. lebron james has signed an unprecedented lifetime contract with nike. terms weren't released, but the sports agent who represented michael jordan estimates its value between 40 forge million dollars and $500 billion. nike says that he provides "significant value." edf is to be removed from the cac 40 on december 21. taking its place will be a shopping wall operator. it will be relegated to the cac next 20 index. guy: thank you very

caroline hyde. caroline: thank you. financial authorities have identified the third attacker from harris. they say is a man who left from syria in 2013. all attackers were killed. two detonated suicide vest and a third was shot. the u.s., congress is trying to increase security in the wake of the recent terror attacks. the house overwhelmingly voted to bar people from visiting from iraq and syria in a program that allows visa free entry. iraqi forces have made a breakthrough in their fight to recapture a key capital of the islamic state. they say they have regained control of the section of the city of ramadi. iraqi forces are getting air support and training from the u.s. beijing raising hopes that china will come up with a fix for pollution. the alarm raised to the highest level. the schools,losed shops, and factories imposed restrictions on driving. they say they will eliminate capacity to try and reduce pollution. inland, more severe weather is in store for cities hit hard last week. the forecast calls for rain and wind with gusts up to 70 miles per hour. last week, more than 13 inches of rain fell in a 24 hour period. these ande on other breaking stories, go to bloomberg.com. tom? tom:. thank you so much. much talk today on the dow and dupont mergers. all of that is tied into the data. let's look at equities bonds and currencies. onfrancine mentioned, a bid commodities. the euro is dashing the hopes of the parity. jaw-dropping, and now a nice rebound after the carnage. onto the second board. from 15 up to 17, brent crude back about 40, copper i put in there because you go from 240 206. even copper is getting a bid, and some of the currencies don't react to the commodity rebound. as we is 17.02, weaker, saw the south african rand breakout to new weakness as well. francine: we also looked at the brazilian. there's a lot going on. this is my data set. i wanted to show you european stocks, i wanted to show you earlier gaining. basically commodity producers extending their lowest level in six years. if you look at the various commodities, crude you can see gaining a touch. tom, i think you bring us to the terminal. tom: we will go to the terminal now. this has to do with dow. nightmare. we will have a lot of coverage for you today not only on this merger but the why across all of corporate america and as you bring it over into economics. this is america's animal spirit, our nominal gdp just after world war ii, the volatility of 1947. here's the deflation of the eisenhower era, and here is the boom in the money illusion of nominal gdp. this is the growth to borrow with. we all grew up and down we go. what dow and dupont and every other company is dealing with is very little growth out there. did you like how i got stephen colbert in their? we do it all here. francine: and you had animal spirit, stephen colbert. colbert is an animal spirit of himself. francine: [laughter] let's bring in our managing editor for more. aaron, when you look at this, talk us through what we are expecting. they're merging and splitting to create value, which is why those stock prices are often pre-tried. >> that's right. we are getting a merger of two giant companies worth $60 billion. the chemical companies and the crop science. what you create is the world's second-biggest chemical company and the world's biggest crop science and feed company, bigger than monsanto. you create a behemoth that would then split up to focus on their strengths, which are what we talked about, and split off the less centralized -- point, ando tom's going back to his nominal gdp chart, this is often because we are awash with cash. >> that's right. we have seen multiple megadeals, pharma deals, and now this. what we are seeing is companies can get cheap financing. they also want to be able to cut costs. you can get synergies, cut costs, help on investments. tom: aaron, here is what we are living in in december of 2015. showsinancial times" 85,000 jobs. nice job coming in with the camera. twoan stanley, these chemical giants, they have 116,000 bodies. how many will go? >> well, that remains to be seen, but there is no doubt there will be a lot of job cuts. it doesn't matter what industry we are looking at. it's all about cost-cutting and that will hit jobs. it is unavoidable. tom: can i be a cynical as possible? is it about these guys who can't make their mega bonuses, so they are merging to discover growth? so they can get paid? it's fair to say that both of them know they cannot stick to the status quo, so they need to find a solution. they have been under major pressure from activists, and they know they have to act. by doing that, this merger can are investors, look, we going to do a make a deal and create a strong company, and let's be honest, whichever executive leaves, they are going to get a nice paycheck. but at the end of the day it is about reacting to investor pressure, shareholder pressure, showing them they have a plan to get out of this phase. tom: francine, i think it's time for "surveillance" gossip -- was she shown the door because she couldn't do this deal? you know all the gossip. >> i think she went out the victor and left. so why did she leave in the end? when ed took over there were a lot of big questions. he hasn't waited long. a lot of people thought he would review the business. a couple months later he is getting close to announcing a megadeal. i think it is there was a lot of pressure. francine: and where does it leave the competitors? >> that leaves the competitors very nervous, in particular monsanto, which tried to do a big dale. monsanto approach syngenta multiple times. management managed to push them away, which cost the ceo his job. but that pressure has not gone away, and with is still being reported, it is only going to increase. as the spring monsanto back to the play, or the white knight out there, the chinese, were looking at the agenda. guarantee you there'll be more to drop. francine: out of the units that will be created, which one will have the most value? is there a special segment within this industry that demands higher premiums? >> i think the most value will definitely be in terms of where the scale and cost cuts will be. the crop science, the agricultural products, the pesticides. there is no doubt that there is so much demand, and it is such a cyclical business and it is so global that if you can combine those, that will be the strongest. i think that is why investors are applauding. tom: we have to brush off our textbooks on to wobbly. howe do have dow dupont, will the germans respond to this merger? >> well that is always the million-dollar question. usually germans take a lot of time to think things through before they pull the trigger, but you don't only have bsf, you have another big player. everyone is going to crunch the numbers, look at strategies and ask themselves, doing need to do something now? if anything, the competitors will also be looking at if they will be splitting into 2, 3 parts, if they will kick off the smaller parts. tom: thank you so much. we got lucky. in our next hour, william janeway will join us. this was not planned around dow dupont, but it is the perfect person to speak to today. no nominal gdp. the meeting continues. ♪ francine: welcome back. this is bloomberg's "surveillance." i'm in london, tom is in new york. beautiful pictures of hong kong. look at that. we have that inflation data out of china, not great but better than expected. let's get to the bloomberg business flash. carolineit would be the largest deal ever in the chemical industry. dow chemical is in the final stages of talks to merge with dupont. a deal may be announced this week. the company would break into two or three businesses because of regulatory and other issues. they have both faced pressure from activists. the price of oil has halted its decline. crude has lost almost 9% in the last three days, at the lowest price of more than six years. kindergarten is cutting its dividends so it can save cash. and china has cut the yuan's reference right to the weakest since 2011. speculation is that they are trying to release pent up depreciation pressure. last month, china's exports shrank, 7% from a year ago. that is the bloomberg business flash. francine: thank you. sticking with china and chinese consumer inflation, cpi rising 1.5% for the month of november. let's bring in tom orlik, our chief asia economist. right to speak to you. that news about the yuan -- what is more significant? >> so i think on

caroline hyde. caroline: funerals for the 14 people killed in the california massacre will begin today. services are scheduled this afternoon for san bernardino county worker who died in the shootings. friends and family members of those killed visited the shooting scene yesterday. investigators said the gunman and the friend who brought the a thought -- bought the assault rifles were related through processednd they have it attacked years ago. in syria, britain's defense minister says it includes oil pumping facilities, and modems, and supply routes. they have not been bombed until now because coalition forces were supporting coalition -- artist troops thereby. the climate talks in paris, who will pick up the tab? developing nations will receive $100 billion starting in 2020 to ease the effects of global warming. china won't contribute, insisting it is still a developing nation itself. congressional negotiators are close to a deal that would make a series of expired u.s. tax breaks permanent. lawmakers hope that will speed up other talks on spending bills to keep the government open. republicans want to avoid a government shutdown in 2013 -- like in 2013. three dozen israeli lawmakers are demanded prime minister benjamin netanyahu refused to meet with donald trump. they say other world leaders have denounced trump for his proposal to block muslims from entering the u.s., but benjamin netanyahu says he will meet with trump even though he rejects -- rejects his comments about muslims. you can get more on these and other breaking stories at the new bloomberg.com. tom: thank you. let's get to the data in the terminal quickly. we have an important guest in the future of global wall street. 10 year yield does nothing. euro does nothing. nymex crude captures a bid but that red on the screen is a big deal. that is the first red in two days on american west texas intermediate. you really wonder where we are going with oil. onto the second board. come on, let's get it up there. to your yield does nothing. -- two year yield does nothing. i guess that is friendly for janet yellen as she goes out six days. francine, what do you have? at oil,: when you look racing games. the euro dropping. tom: look at you with the kiwi as well. francine: do you like that? tom: i want to know what it means. francine: it is all about the fed them with these economies will do in preparation. tom: there it is. every central bank, how they're reacting this morning. quickly to the terminal and the picture of american confidence. of precrash.oy we have made it back with a little bit of rollover. we will have that data across the bloomberg terminal earlier this morning. what is the future of the city of london? what is the future of wall street? michaud has a great view, i will call it by his 14 years of service from september 2001. tom, wonderful to have you with us. there's so much we could talk about but to me, it is the arch is the city in london and the wall street in new york, has a become a utility? >> there is been a dramatic change in the industry since the crisis, and especially for the biggest institutions. the story of the last several decades leading up to the crisis was really how big these big institutions became. and since that time, regulators have been thinking about what they're going to do about it and i think you're starting to see a reverse and the biggest institutions are getting smaller, which has had a dramatic impact. tom: i think of market economics. ed is taken out by roger altman at ever core. niche businesses. or you have ever core. is that the future of your new york? >> the growth is happening away from the global sissys. i think it is exciting. i think there are a lot of midsized, very good companies that will continue to pick up market share and i think the -- they will go where they think the growth is best. tom: i have a trouble with the way the media covers the bonus. it is about tuition payments, making payments on summer homes. it is about remittances to parents, to keep their parents go. what will be bonus from be like in february? >> i think it will be very company happen dependent and lumpy. up in upon each institution and i think there are some very -- i think it will depend upon each institution. others are still adjusting their business models. very hard to give one industry an answer for the whole industry. tom: francine, jump in with a view from the city. francine: actually, i was going to talk about company-dependent, when you talk about dramatic changes, who is going to wind up on top when the landscape changes? there will always be 2, 3, 4 banks that will be number one. >> i think you have to look at this whole class of global 29 sissys. central bank's around the world have identified the banks as must be too big to fail, and i will look at that class versus the rest of the industry. and i think the rest of the industry is continuing to show growth. i think there is some great talent in that sector. when i look at where the demarcation point is, it might not just be one company. i think you will see a big shift between the class of the global sissies and everyone else. francine: when you look at the european banks, they are retrenching on the investment side. what does this mean in europe? >> i think europe is to the same thing with the u.s. with the global sissies. you will see many of these companies be smaller. as the capital requirements continue to go up, we are calling for more development. -- divestment. of you notose connected to global wall street, deutsche bank with the changing of the guard, and it is been controversial to say the least, adamant that you are paid too much. there is a huge -- huge mail off of this. busy scoring any points with you about, we've got to bring whole level of compensation down? >> i will tell you what, we are trying to run our shareholders. we're trying to do it -- tom: but you have seven guys you can't lose. your like everybody else in the business. >> absolutely. if we still want a system that is a meritocracy, you will have certain folks that are better able to do than others. you need a management team that seems it is fair for shareholders and you're doing the right thing for the shareholders. tom: are the german models strapped with two boards of directors? >> the amount of regulation, both europe and the u.s., it is very, very heavy. personally, i prefer the american model of not that much governance because i think it hasn't necessarily gotten them to a better place. we talked about new york and london, here we have one of the biggest u.k. banks, hsbc, possibly moving its headquarters with this turmoil regulation here in london and u.s.. >> i think long-term, there is going to be terrific growth in those markets. i think those markets need to have key institutions that are headquartered there. while there will be some regulatory arbitrage that happens around the world, i'm not sure if just where you put your head at the end of the day is ultimately going to determine your success. at the end of the day, yet to run a sound business, so that maybe an assist, but at the end of the day i don't think that is the singular answer as to what companies will ultimately be the successful ones. tom: in the old day, the banker showed up on monday, tuesday, play golf on wednesday, hit rotary and went home. that model is destroyed. for thethe new model thousand or 2000 things out there? nobody ever talks about the backbone for small business in america. >> i got to tell you, in all of these businesses, the principle is this -- take care of your clients, add value, and give really good advice. what happened or the crisis was i canrld is angry and, understand why they are angry, but unfortunately, the reaction was to throw legal industry the one model of perception. banks in, 90% of the america are less than $1 billion in assets. that is a staggering number. when you think of those 90% -- tom: will they consolidate? >> absolutely. we're seeing it right now. the consolidation stories underway, but it is happening across america. tom: what did you learn this year? i know you're not competing with them, but what did you learn? >> investors are still angry about the crisis. they want to know that their interests are coming first. by the way, their interest coming first doesn't mean you're maximizing profited every minute of every day. i'm a believer you want to add value unsustainable basis for long-term. they want to make sure wise decisions are being made. i think the shareholder battle was a hangover from the crisis when brian wasn't there. he got in the middle of the crossfire. tom: i strongly agree, it is not all about brian. >> in that particular case, too, the board did a light to take aggressive action to promote him in a way they did. they didn't necessarily have to do that. i think it was in some cases unfair for brian to be in the middle of the cross hairs he wasn't the ceo at the time we went into crisis. chaud, the mystery toward 2016. there is no mystery about du and dowpont. an expert on chemicals. wiser. make us in thisto get a fiat transaction. good morning. ♪ tom: good morning, "bloomberg surveillance." every single office let you see pays a retainer. ud, new york is gorgeous. gorgeous, i say. i was on the corner of 5th avenue and 57th street last night. all of the decorations are up. >> there is no place better than -- in the holidays than new york. i think francine would disagree with you. she is in london with the business flash, the decorative carolineroducts finished further down the track for safest cars. the insurance institute for how a safety says 48 vehicles had the highest rating -- toyota, honda, subaru had the most winners, 23 combined. the chrysler 200 was the only u.s. car to win that rating. europe's biggest hotel operator will get bigger. paying $2.9 billion for the swiss hotel brand. -- g the sellers starting today, some walmart shoppers can pay with their smartphones. stores in the kansas headquarters will begin accepting the mobile app. nationwide rollout is planned for next year. and that is the bloomberg business flash. francine: thank you. let's go to germany where hans nichols is on the ground. miller beforeto he is holding his extended press conference since the emissions rigging scandal broke. we don't have a figure on the scandal yet, but what he had to do you is that he is keeping all 12 brands. that means he would be able to pay for anything without having to sell off assets. : this is a confident ceo, one w