francine: the u.s. market will not open to the iliad in europe, traders gain banks more volatility in riyadh and japan come of our board of nissan deliberates as the three in the balance. plus, theresa may fights to keep her crunch summit on track. ♪ >> good morning, everyone, happy thanksgiving if you are tuning in from the u.s.. markets, look at your markets are closed in the u.s.. euro-dollar,the 1.1403. we are seeing a widening spread between the german and tenure yields for italy. -- the german and italy 10 year yields. we also have the tweets from president trump, and you can see the stoxx 600 down from 0.7%, is a very thin volumes today. we will bring you our weekly brexit show, and we will speak to the chair of the brexit committee in the u.k. parliament . we will also speak to the former director general of the ecb, and also the chairman of the ocd general the best of societe generale. first, let us start with the first word news. >> brexit negotiators worked throughout the night in brussels af

francine: thank you.g as saudi arabia said it will reduce crude sales in december and speculation has risen that opec and its allies will cut output next year. manus cranny spoke to the bp chief executive. he started by asking if it would stop a drop in the oil price. >> from their perspective, their customers asked for half a million barrel reduction in december. they will do that anyway. i think that is a perception of one million down now. i don't think any decision has been made. >> are you shocked? we could see the volatility. production ined over $100 afrankly, barrel right now. the uncertainty -- there are several, but the big one is exemptions. had there been no exemptions given. i think we would've seen a higher oil price today, much higher. it was uncertain and drop down. in a way, opec was responding like the market. they had been over supplying oil to get ready for that. it did not happen. the prices come down. now they are adjusting. as simple as that. underpricing the impact ofiran. do you l

francine? thank you, taylor carried back to the top story. after more than a year of negotiations, theresa may has clinched a brexit deal with the european union. the pound rose on the news, but the more challenging part of the process may be to come. getting the deal past eurosceptics in her own party, with many on both sides of the debate reported to be unhappy. they will meet on downing street where they will decide to back it or resign. joins us outside number 10 providing further insights. it is a very divided cabinet that theresa may needs to get on this side. who will be really against this? very divided and again, the document, this technical deal being cut between the european union and the u.k., very few have seen it. andre told it is 400 pages one of the sticking points is stay in thet the eu customs union to get around the irish border. she wants to get a sense of whether this will clear parliament or not. theresa may will argue this is all we have. we will not get a better deal. at

francine? francine: let's talk about brexit.st party is opposed to the agreement. we will talk to the dp leader shortly. let's get back to patrick armstrong. does it move guilt whether it does get past or is volatility just for --? >> it definitely move skilled. soft brexit leads us the bank of england being more aggressive throughout 2019. it does not get past markets. most people's assumption is the base case. >> people are complacent now. people do not expect to get through on the first go but they have a believe it will get through somehow, someway. that is the consensus. that is my view as well but the risks of hard brexit are increasing. if it does not get through parliament, hard brexit becomes real possibility. -- a real possibility. it eventually goes through and there are compromises being reached where the europeans give a little and theresa may's parliament give a little bit too . what is going to matter is how much it loses by, if it is a landslide. francine: i have heard people say that. let's go to one of the news

francine, what you have? francine: treasuries are declining.ting theresa may to appeal to business leaders to help deliver her brexit deal as she fights almost unsurmountable opposition. i am looking at european bonds. peripherals rising. tom: very good. thank you so much, francine. we really planned on this monday to give you a reset and a few forward to 2019. we do that by going to the charles river in massachusetts. no, not the college. you go downstream to the land. luigi zingales is the foreign advocate of american capitalism within all of economics, and joining him today's catherine mann, who simply change the dialogue country dynamic, and she is a global economist. different from any other economics? catherine: the difference is it is very practical. our theory, but it is applied in the real world, and we have a lot of representation of people who have gone before us, who have applied the theory into the real world, recognize how the theory has to be adjusted for the real world. zingales, speak to the president right now. how is american

francine: was it difficult for you?torio: it was difficult because it was big, but there was big negotiation, and there was $130 billion cash sale. it was big, but the decision was an important one. the complicated one has been the whole type of discussions with liberty, the biggest fixed broadband provider. we were born as mobile and consumer and we ended up being the largest fixed provider in europe, big transformation, many steps. with liberty, we had many attempts and many steps and many deals. it has been a very long process. francine: it was really your baby. do you feel bad having left vodafone before seeing it through? vittorio: i wouldn't say it was my baby. my baby is the transformation in 10 years from, as i said, mobile consumer to the new thing. and my contribution has been the reshaping of the company, the minorities getting out of china, out of the u.s., concentrating on europe and africa, bulking up the assets there. liberty is one step where i feel -- liberty is one step, do i feel bad? the ceo is a cap

♪ francine: hello. this is bloomberg surveillance. i'm francine lacqua. markets.our the stoxx 600, gaining .06% hope that u.s. china trade gets better. i am looking at the 10 year yield, 3.17. coming up, we speak with the code chief executive of standard life aberdeen. or two tove a thing say about his industry. i'm interested in hearing his thoughts about brexit. here is sebastian say lex. >> brexit negotiators are working through the night to work a deal. theresa may said the final stages proving difficult. in a speech at the city of theon, ms. -- may said negotiations are in an and game but problems remain. both sides said they have until tomorrow to achieve a deal. it may offer -- italy's government may offer a concession when it submits it final budget. 2019overnment will cut its growth target to as low as 1.3% point 5% previously. italy has until today to send its revised budget to the commission. argentina's credit score has slid deeper to junk. b, rating was lowered to five levels below investment grade. will carry out measures to stabilize the economy ove

, francine.il. what opec has had to do from no real fault of their own, just playing with one million in terms of taking off or not being taken off. stocks are down following a retreat in asia. there are concerns about the slowdown in china and how close they can get, though. the dollar is up, staying on track for the september rate hike. this is, without a doubt, my terminal of the day. look at wti falling from 21% from october. that means in the air market, tom, this will also have an indication of how much emerging markets will be on oil, tom. tom: francine, it is remarkable to remind ourselves of all of the $100 per barrel talking seemed only days ago. francine: yes, you are right. december, the central bank says economic activity has been rising its own rates, and job data has been strong. gradual rate hikes. there was a whole host of issues that the central bank is not discussed, including the market makers the dollar, and the asian crisis. joining us now is george globalos, deutsche bank c

francine?es, we understand of course with the latest news on opec that they have really done a couple of u turns. one of the most head spinning years because every time the price moves they try to figure out whether they stick with their agreement. what happened in the last week or so is the iranians' actions came into effect on monday. with the waivers, the oil price sank which is now we're expecting opec to eye another u turn as the oil slump -- there is talk of new cuts. we're back in a couple of minutes. this is bloomberg. ♪ francine: this is bloomberg "surveillance." tom and francine from singapore and new york today. the results of the u.s. midterm elections are coming in largely in line with expectations. democrats taking control of the house of representatives and republicans maintaining control of the senate. earlier we spoke with the chief goldman sachs and asked his opinion on the results. >> we kind of landed in a place where the polls were kind of right. democrats took back the hou

francine: of course.k if you think you will be in favor of risksharing solutions amongst member countries in the euro area? the risk reduction is debated in the trial log between european institutions and the question is when risk reductions are burden sharing, and you see this debate is moving on. and as ay political veteran supervisor, he will react to the political agenda. first this needs to be solved. tom: very good. really appreciate it. there is breaking news. a transportation company in canada having challenges. are going toees walk out the door. that is a rough number. we have seen that from a lot of industries. ,here will be more on that particularly across bloomberg canada this morning. a timely interview on european banking, this will be with the chief financial officer, stephan engels. this is bloomberg. ♪ taylor: after a new cancer drug helps estimates in the last quarter, the british company is moving away from older products that are losing their passing protection. tells bloomberg is reth

tom, francine? francine: u.s.nt xi jinping will meet over dinner at the g20 meeting. trump is hopeful for a breakthrough with xi but is ready to impose more terrorists -- more tariffs if the talks do not make progress. that is according to larry kudlow. met inain -- have to be terms of fairness and reciprocity, for example issues of intellectual property theft must be solved. forced technology transfers must be solved. significant tariffs and non- tariff barriers must be solved. is in -- addressing the summit. thank you for joining us. in spain --resident what is president xi in spain for? busy looking to some bilateral deals -- is he looking at bilateral deals? >> china has been much more friendly to countries, the european countries. if you look at things like the and settingllianz up for enterprises. xi is delivering the message that we are going to open up china to everybody else, and if the u.s. wants to be part of that, when he to come to an agreement at the g20 -- we need to come to an agreement at the g20.

tom, francine. francine: thank you.n as prosecutors say the company's headquarters are being searched in a money-laundering investigation. several german locations are included, and the case is related to the panama papers. joining us for more on this is my next guest. what does the lobby group want from deutsche bank today? >> we are representing institutional as well as private shareholders of deutsche bank, and what we are seeing in the last year, is that deutsche bank does not come to rest. if is scandal after scandal and terayed after rate --raid af ra youi could say thatdwe are getting used to it, but the share price is going southward. management has to make it tasks and make it work. especially the thetion today, whether woman who is in charge of all things concerning ms= money-laundering and etc., whether she is the right woman in place. francine: if she were to be replaced, would it make you more comfortable about the direction deutsche bank will take? klaus: it would not solve the problem from one day to the

francine: thank you. in the u.k. will widen if lawmakers do not back her brexit deal. minister rolled out a second referendum in set the alternative to her deal is no deal. with us is gene frieda and vasileios gkionakis. thank you for sticking around. what aspectk at classes lose the most on the back of a deal or no deal, what is it? gene: i think our first mover would be the pound. there is an asymmetry in terms of rates moving up on a soft brexit versus rates rallying on a hard brexit. equity market, i do have a view. i think it is sterling with the equity market where it -- equity market. ftse 100, we seem to have a negative correlation. you get a ftse 100 rallying. inis messy, the one we are because no decision is easy now. gridlock, how we s arefrom there, the path going to be obscure. it is not easy to get a second referendum. extensionneed an because you were not able to get everything in place before the 30th of march. francine: that would be the least of her worries, right? they grant an extensio

francine: this is "bloomberg surveillance." i am francine lacqua at westminster.lk possible no-confidence vote. , also awhile ago leadership challenge to theresa may. it is all about the arithmetic. hardliner pro-brexit conservative leader. does it mean labor will want a fresh election? there is no clear outline of what we do from here. let's get act to our studio to look at how businesses should be reacting to this. anna edwards has been following this closely as well. say does it mean when they there may be a leadership challenge? who will be able to challenge theresa may? >> it will be a game of numbers. influential among brexiteers. he leads that side of the party. language that raises the question of whether he shouldn't write one of those letters and ask for a leadership for. he asked whether he should. in response, she went back to her usual lineup attack, stopping mp's from focusing on the backstop, and focusing on the free trade agreement she wants to secure. the trouble is that has not in agreed with brussels. the free trade agreement she wants is not wh

francine? francine: thank you so much, taylor.o our next chief executive of societe generale, the largest bank in france, frederic oudea a. thank you for joining us. we start with climate change and climate finance this private financing. do you worry that geopolitics , whether itconcerns could be traded or lower revenues and market activity, whether that will affect climate change and climate finance? eric: francine, good morning. i am delighted to be here. i am not sure i understood your question exactly. but let me say, we are in paris effectively to deal with how we can contribute to the renewable energy financing and energy transition. i think we have, as a bank, among the first to commit to and we are effectively contribute -- we effectively contribute to this comment goal. we have set clear objectives regarding this commitments for 2016-2020, 11 billion euros of financing to renewable energy. 58% of this objective us. we are moving forward and it is not a reality. isncine: societe generale one of those financial companies w

i am francine lacqua here in london.ll the rhetoric we heard out there about trade may have quieted down a bit because the markets are pushing higher on reports that the italian government may be open to some budget revisions. italian bones actually gaining. gold is a good benchmark of a risk on-risk off mode and it is holding up. have a longer-term outlook for oral. saudi oil production is said to roger in that said test surge in a november. opec and its allies have had, to a couple of times, change their tax. going to cut production, then increase production, and another have decided to cut back production. year to date, it is down some of 9.6%. coming up on "bloomberg surveillance, we speak to dr. philippe ryszard and it best dr. philippe roger italy'sregarding concerns. now we get to the bloomberg first word news in new york city with taylor riggs. hi, taylor. taylor: there are reports that the italy prime minister antigovernment might lower the amount to be spent on citizens income and for beneficiaries of the lower

francine: thank you so much.u look at the timeline thislooks like scandal timeline could run and run. we are live in paris next with more on the nissan-renault's tuition. asre is not as much volume there were at this week in the market. u.s. futures are pointing to a pretty weak open while asian benchmarks decline. oil is also dropping on signs of oversupply. oil, -- this is what we will be talking about, wti falling for a 5th street week. = -- fiftheet straight? thushka: week. francine: "bloomberg surveillance welcome to. -- welcome to "bloomberg surveillance." u.s. equities pointing to a weaker open. nissan is said to be seeking and the review of its shareholding structure with its alliance with renault. this comes at the company released its chairman. hours after the unanimous vote, the french finance minister and japanese economy minister pledged their strong support for the alliance, calling it a winning cooperation. it looks like the new leadership of nissan is already making moves to shake things up. we wi

i'm francine lacqua.et back to global trade.atop says chinai jinping is ready for a trade deal with the u.s. >> both china and the u.s. would like to see greater economic cooperation. china is ready to have discussions on issues of mutual concern. that was china's vice president speaking here at the bloomberg new economy forum. to discuss more on this, peter dixon is in london and joining marietjegapore is schaake. she is also the coordinator for the international trade committee. thank you so much for joining us, both of you. tell me a love that about this transatlantic relationship between europe and the u.s. marietje: we have seen dramatic changes since president trump took office. relations andade a value-based relation that we have challenged since world war ii has really been upset. i'm worried. beenansatlantic card has suffering since this upset. i really hope we can look beyond government to government, white house to other politicians in europe and look at the depth of the transatlantic relations

francine: thank you.he money manager who predicted the subprime collapse discusses a no-deal brexit. then, we have the bloomberg new with theorum tomorrow, chief executives of exxon mobil, mastercard, and united continental. this is bloomberg. ♪ >> this is bloomberg surveillance. we are preparing for the bloomberg new economy forum. let's go to the bloomberg business flash. aylor: gains from technology investments and a solid performance from sprint. to ¥706g profits rose billion. speaking after the results, the said the mobile business will keep rising despite government pressure. undergoing one of its biggest management shakeups with the departure of its longtime chief executive. theas in charge of electronic payments company for come underut had increasing pressure for its performance. announcinghs will be fewer than 65 partners this week smallest in 20 years, when goldman was a private company. lobbying for promotions is less than in the past. francine: steve eisen has earmarked two british banks as t

francine: thank you.ining on talks of a trade break between the u.s. and china. president has asked his cabinet to draft a possible trade deal with china ahead of the g20 summit. joining us now is enda curran. thank you for joining us. any insight into whether china is giving up or the u.s. is giving up on its demands or whether china is giving and? enda: it does seem to be an optimistic turn of events. we have had the tweet, the telephone call. our colleagues in washington are reporting that the u.s. president wants to talk about a deal. china responded today. we have had diplomatic language going across the official news service. the next thing will be a speech by the president buy it -- why the president on monday. it will be crucial to see how president xi response. .- responds he is unlikely to mention the u.s. by name. it would add to the sense that it is moving somewhere. as our colleagues have said, -- many a degree differences remain. country: overall, which wants a deal more? it is a tough call

francine joins us now from zurich.ay us what else he had to about the state of the global market business. clearly drawing a lot of headlines this morning. >> absolutely right. the focus is on global markets. investors have been looking at some analysts note. the fact that it was an unexpected loss, that is hitting a lot of the revenue for the quarter. this is probably what they will focus on i spent a lot of time talking, he said the targets will probably have to be pushed back, but everything else he says will be on track. revenue is athe little bit disappointing, but not because of us, it was external factors. but if you look at the pillar of his restructuring plan, one of them is global markets. so there will be questions on the targets and on what global markets will take in terms of a place from the strategy of the future. it does not mean he will abandonment -- abandon it or cut further in, but i think investors will stop questioning that strategy implement more. -- a little bit more. ,att: excellent interview f

francine: thank you.frankfurt where we have been live all day, moderating a panel on business models of the future. to delve into what mario draghi said here about the european theook, we are joined by commerzbank european economist. it seems there are risk out there. i am thinking of low inflation. what concerns you the most? is not theest threat brexit but italy. italy is too big to fail. you may say we have the program of the ecb but there are certain conditions attached for example a country should first go to the fund and has to accept reform conditions before the ecb could step in. a populist government is unlikely to submit to reform conditions from brussels. it may notrisk that work in this explains why investors are so nervous. francine: should brussels give an easier time in italy? there are governments trying to do the best they can keeping their promises and italy needs to find a way to keep going and that is not austerity. joerg: it is austerity. francine: you cannot grow through austerity. j

francine? >> thank you so much. of the world's biggest car alliance hangs in the balance -- nissan says it plans to remove the chairman after he was accused of underreporting income, failing to declare about $44 million. the company says he also misused assets. mitsubishi says it will investigate his contact. the board is due to meet this evening. for more, kris bryant, our opinion columnist, joining us from berlin. what do we know about the response? >> good morning. the story moves to france today -- the french finance minister came out this morning and effectively said that he wasn't in a position to continue as the because -- the andd will meet later today they will name an interim ceo. there are some obvious candidates that might replace him, most notably the chief operating officer. task, they aret a shareholder and therefore have a strong interest in what happens. mistrustquite a bit of because the french appear to have been caught unawares with what's going on in japan. in there will be a lot of questions in

francine lacqua in zurich. thank you so much. we are asking the question on mliv, moving back to the broader markets away from equities and to fixed incomes, have prominent will the bond vigilantes be in 2019? ivu can reach out to the ml team on your bloomberg. manus: and you can tune into bloomberg radio, bringing you fast facts on your mobile device on d.a.b. digital radio in the london area. this is bloomberg. ♪ mean we:22 in london, are about 40 minutes from the european equity market up and. european futures are pointing lower. after the best two days since february for u.s. equities, looks like it is stalling in europe judging by futures. let's turn to our guest for the rest of the hour, mike bell from j.p. morgan joining us now. at the top of this hour, i talked about how your colleague in the u.s. talked about a rolling squeeze higher into the end of the year for equities. we are looking to see where the bottom is. you are a little more subdued in your outlook, here in europe? is that theoblem market has to wrestle betwee

francine: what does the u.k. need right now.at mark has a difficult job trying to manage britain. if you were in charge as a politician, as a prime minister, what steps would you put in place to make the transition smoother? doubtafik: there is no that investing in human capital and getting skills from the beginning even before school, and investing heavily in those. we should look at a more ambitious program in investing in human capital, maybe firms need to be given an incentive like a human capital tax credit, the not just credit if you buy a machine, but if you invest in your employees as well. we need to give people the ability to finance education later in their careers. this generation will work for a long time. -- they will not be about to retire for a long time, and we have to equip them to work for a long time. that means new training opportunities throughout your .ife to be francine: is there a concern we are not training properly? dr. shafik: there is not that much to measure, that is the problem. , theof it is happe

host: francine kiefer. guest: the leader is right that what they do work on and passed together does not get much attention. i would say that is even more true in the past two years because the daily sunol me of tweets -- daily tsunami of tweets and headlines that consume everything as the water bill was getting to the senate, it is just not going to rise to the surface is often. when something like kavanaugh is happening. getting to the agenda that mitch budget -- mitch mcconnell talked about, he said his top priority was going to be confirming more judicial appointments. that is going to be his top priority and he does not need democrats to do that, and he will power through. that will be his top priority. jean int's go to spartanburg, south carolina, independent. caller: good morning. i voted for john kasich in the primary. i don't know what happened to that guy. that lady from ohio, she hit almost every box except the one that the democrats in washington had a huge walk away thing in washington. maybe s

host: francine? guest: he is right. what they do work on and passed together does not get that much attention. together does not get that much attention. that has been more true in the past two years. headlines coming from the white house, just take brett kavanaugh, who consumed everything as the water bill was getting through the senate. it will not rise to the surface. like bretting kavanaugh is happening. getting to the agenda mitch mcconnell talked about, he said his top priority was going to be confirming more judicial appointments. top is going to be his priority, and he does not need democrats to do that. that will be his top priority. host: let's go to spartanburg, south carolina, independent. caller: good morning. host: morning. caller: i voted for john kasich in the primary. i don't know what happened to that guy. that lady from ohio hit every box except that democrats in washington had this huge walk away -- maybe you did not know about that. guyay, i agree with this who put the obamacare thing across the goa

francine crude oil showing : little sign of recovering from decline. plunged 7% yesterday, its biggest one-day drop in three years. this comes as opec warned demand for crude is falling faster than expected. and remaining saudi arabia and other members are signaling output cuts. what will stop this rout, if anything? >> i think the speed and scale of it is being driven by money coming out of this market. at open interest, a measure of how many contracts are outstanding and features, it has been falling off a cliff, and i think it has accelerated the speed and its scale. but it is hard to see it from the point of view of opec, particularly the saudi arabia and oil minister, what do you do in a scenario where it feels like they have lost control of the narrative? but at the same time, you have the white house furiously tweeting at them every time they are going to cut production. guy the cabinet approval of the : brexit deal is a prologue to a much harder slog through parliament. >> at least two of the of the heavyweight brexiteers have decided to back m

and francine francine, let me begin with you. the significance of the democrats taking back the house? guest: it is hugely significant. it is a check on the trump administration. that is probably the most important impact. i'm sure they will use their investigative powers. that will begin with yesterday's news development of the resignation, forced resignation of jeff sessions. they will also use it for messaging for 2020. they will show that they need to govern and they will try some bipartisan efforts with the president and republicans. whether that will work, i have no idea. host: lessons learned from a divided congress from previous years? guest: sometimes they are productive. it is genuinely true that after the first divided congress, divided government can sometimes produce things, sometimes divided congresses can produce things if there is a political will where both sides conclude that voters want some sort of something to run on the next time. i do not think that is what will will have on all but a handful of issues. the

bloomberg'sas interview with francine lacqua. italy-germanye yield spread.we stand right now. exertsexpect that this pressure on the italians to change course or will they have to go higher to do it? james: they have to go higher, and to some degree, the damage has been done. draghi's whatever it takes statement, italian spreads levels,e in in tight and nothing has been done. has been handed down from central europe to all of to put theirrder fiscal house in order. that has not generated growth for obvious reasons. what the italian parliament is trying to do is going back -- is trying to go back to the idea of austerity. if debt to gdp is what you are trying to stabilize, you cannot slash away fiscal stimulus. anna: they need both. james: the reality of structural reform is it is a short-term cost for a long-term benefit. if we are looking at the u.k. in the early 1980's, dramatic structural reforms paid dividends all the way to tony blair's premonition, but the cost is very high unemployment and inflation. devaluationad a 75% when they were instituting refo

i'm francine lacqua in london.

coming up this morning, former "cq roll call" editor david hawkings and francine keifer discuss potential leadership changes in congress. be sure to watch c span's "washington journal" live at 7:00 eastern this morning. join the discussion. >> montana's close senate race was not decided until the next morning when democratic incumbent jon tester claimed victory over matt rosendale. he discussed the election with reporters wednesday afternoon. >> thank you all very much. i go upstairs to check a few number, these guys write speeches. we did it. [cheers and applause] for those of you that don't know, and i don't think anybody knows this, ap just called this race. cheers and applause] and would not, as you know, i wouldn't be here without my wife charla. [cheers and applause] my did kids, my brothers, my best friend from high school, steve stivers back here. but -- an the countless volunteers. everybody in this room. literally thousands of other people have spent incredible amounts of their free time to walk around this state and talk about how important this race was and i want to thank you

coming up this morning, former "cq roll call" editor david hawkings and francine keifer discuss potential leadership changes in congress. be sure to watch c span's "washington journal" live at 7:00 eastern this morning. join the discussion. >> montana's close senate race was not decided until the next morning when democratic incumbent jon tester claimed victory over matt rosendale. he discussed the election with reporters wednesday afternoon.

[applause] ♪ francine: vittorio colao spent a decade at chief executive, growing into one of the world'sst telecom companies. he's radically reshaped the business, betting on europe. transformation included the biggest ever deal, a much-anticipated 18 billion euro takeover. today, we meet vittorio colao. thank you for giving us time. what defines you as

roll call senior editor david hawkins and christian science monitor congressional correspondent francine kiefer discussed potential leadership changes in congress. be sure to watch "washington journal." join the discussion. join us sunday, veterans day, at 11:00 a.m. eastern live on c-span. the wreath-laying ceremony at the tomb of the unknown at arlington national cemetery. 5:00 p.m. eastern, live coverage from the national constitution center in philadelphia. the presentation of the annual liberty medal to president george w. bush elmore a bush -- and laura bush. all-day coverage commemorating the 100th anniversary on the end of world war i on c-span3. >> now analysis of tuesday's election results from congressional leaders. we hear from senate majority leader mitch mcconnell, house minority leader nancy pelosi, and senate minority leader chuck schumer. this is one hour 15 minutes. sen. mcconnell: good morning, everyone. i had one of the cable networks on this morning and they said this is probably a rare opportunity to see mcconnell smile. it is indeed a good morning for senate republ

francine: so you will hit your targets? >> one year late.e said that in q2, a 10% return on capital in global markets. at that point it was too ambitious given the market conditions. >> hsbc ceo, john flint, has finally delivered the growth investors were going for. adjusted pretax profit was up 16% with revenue up 9%. the jaws figure is moving in the right direction for the bank, indicating the lender has managed to increase revenue faster than costs in the quarter. hsbc also said it was on track to deliver positive news for the year. >> what's confusing the market to an extent is all banks have a huge investment program at the moment, multibillion-dollar investment programs. part of it is investment for growth. we are still strugglingo understand the roi on these huge investments. so if you are investing so much growth is offset by cost growth and the market does not understand what that cost growth is for, it is technically value destructive. if the market buys into the fact that investment is accretive, that is a positive for the shares.

. ♪ ♪ francine: divided government.big gains in the house of representatives, taking the chamber back for the first time since 2010. >> today is about more than democrats and republicans. it's about restoring the constitution of checks and balances to the trump administration. francine: a different story in the senate. republicans pick up seats to keep battlegrounds like indiana and missouri. traders mull the implications of a split congress. david solomon speaks out in an exclusiv

. ♪ ♪ francine: the fed unmoved.ying on course for december hike despite a critical president. oil enters a bear market. wti crude in its longest losing streak on record. and relationship building. goldman's lloyd blankfein is said to have personally forged ties with malaysia's sovereign wealth fund. ♪ francine: good morning, if you are in europe and good afternoon if you're in asia. welcome to "bloomberg surveillance,"

♪ francine: hello. this is bloomberg surveillance. i'm francine lacqua.

. ♪ ♪ francine: dinner and diplomacy. is at the g20 in buenos aires. and, fed minutes. further rate increases. and, we hear from the chief company, as this theresa may pushes for support ahead of that december 11 vote by primary. ♪ -- vote by parliament. ♪ francine: welcome to "bloomberg surveillance,

posted by bloomberg surveillance banker francine lacqua. that is live at 9:00 a.m. london time. when you are traveling to work, if you have to step away from the tv, tune in to bloomberg radio live on your mobile device. 8:00l be on the radio at a.m. ♪ nejra: let's check on the markets. the msci asia-pacific index showing weakness at the end of the week. some weakness coming through in japan. chipmakers being hit. china outperforming. the csi 300 up. emerging-market equities also on a third day of gains. cable recovering slightly. yesterday we saw a drop of 1.7%. three standard deviations to the downside. volatility spiking. we are seeing a touch of a recovery. meanwhile, crude higher for a third day. poised for a six weekly loss. supply and demand causing concerns. nasdaq futures down 0.8%. the u.s. market close higher yesterday. we had a disappointing sales forecast causing concern among chipmakers. let's get the bloomberg business flash. >> pg&e rallied in extended trading after the head of the california public utilities commission said he cannot imagine allowing the state's

it was an exasperating peavey's i had to take on dodgy francine's goal but he rose to the occasion. the most important moment in the game came courtesy of a hat a player maximillian misstates so red forty minutes in i over half the match focused team knew just what to do switching the ball using space and playing direct. i was one nil to see both off to fifty one minutes i finally found the back of the net off to two school matches i released for the play is the fact and of course the cup. i. haven't defeats this one is very important that's clear to everyone. however until now we have worked hard and that's what spurred on today is when i promoted side kept spending under pressure putting them an advantage to good eats i wasn't heading i made it to know in the sixty fifth minute i just go again stretching plate moving it wide and tiring out outnumbered by lena's i see my mom served up painting i just adore finally found the knot in what had been a drip altar. eighty four minutes in. they were enjoying themselves and palin couldn't be bothered to. substitute. jeep to hatch a defense

. ♪ francine: president trump threatens more china tariffs ahead of the g20 summit.theresa may's d-day. she is set to vote on her controversial brexit deal. president trump port water on the agreement. a stalemate in rome as the populist leaders fail to meet a new deficit target. hopes that a class with the eu will be avoided. ♪ -- a clash with the eu will be avoided. ♪ francine:

and francine francine, let me begin with you.he significance of the democrats taking back the house? guest: it is hugely significant. it is a check on the trump administration. that is probably the most important impact. i'm sure they will use their investigative powers. that will begin with yesterday's news development of the resignation, forced resignation of jeff sessions. they will also use it for messaging for 2020. they will show that they need to govern and they will try some bipartisan efforts with the president and republicans. whether that will work, i have no idea. host: lessons learned from a divided congress from previous years? guest: sometimes they are productive. it is genuinely true that after the first divided congress, divided government can sometimes produce things, sometimes divided congresses can produce things if there is a political will where both sides conclude that voters want some sort of something to run on the next time. i do not think that is what will will have on all but a handful of issues. the p

roll call senior editor david hawkins and christian science monitor congressional correspondent francineiefer discussed potential leadership changes in congress. be sure to watch "washington journal." join the discussion. join us sunday, veterans day, at 11:00 a.m. eastern live on c-span. the wreath-laying ceremony at the tomb of the unknown at arlington national cemetery. 5:00 p.m. eastern, live coverage from the national constitution center in philadelphia. the presentation of the annual liberty medal to president george w. bush elmore a bush -- and laura bush. all-day coverage commemorating the 100th anniversary on the end of world war i on c-span3.

his bank is preparing and how it outlined his concerns for the whole sector in an interview with francinequa. >> you have to start moving. you cannot wait. hopefully there will be an agreement. hopefully the parliament will accept it in the u.k., and hopefully we have the one-year transition. in any case, this would lead the costs of being in london to increase for any bank, so this will lead banks to reconsider strategically their operations in london. >> where does it leave the city of london? are we underestimating the impact? i have heard it will bring london to his feet, or it will find another reiteration, but it will still be one of the best cities in europe still. >> for some markets, yes. it would depend on how the financial institution will react. londoncosts of being in , it doesn't look like financial issues have had much importance. >> why was it not a priority? >> that is a key issue. in the end, may be taxpayers in the u.k. do not want such a big financial system, such a big financial center, because they are afraid if there is a crisis but they will have to pay for it, so

was the ceo of credit suisse, talking to francine lacqua earlier on today.e are with the european banks and the stories we have seen today. deutsche bank is also in focus. buying a stake in the german lender. let's go to frankfurt, where our , steven and writer is arons, who joins us now. i'm curious, do we know whether this is an activist play or whether this is simply an investment play, because there is a belief that they are on the right track? >> i think it is a mix of both. this guy, we had him home on the -- we had him on the phone earlier today. leaves in thelly ceo of deutsche bank and has talked to him multiple times over the past months. he thinks he is the right guy. he made a pitch for him, so he must be sitting in the tower behind me being really happy. of course, this investment is something from an activist investor, and he will be talking to him a lot and telling him .hat he wants setting to do if he does not achieve the changes, i am sure his tone will change at some point and he will make sure something happens. is gettingphen, it snubbed