we get his thoughts on the future of the saudi aramco ipo.his is bloomberg. ♪ ♪ nejra: welcome back to "bloomberg markets: rules and returns." let's get a round up of the rules on financial regulation. ed. ed: it is a big win for financial firms on capitol hill. the senate has voted to overturn a consumer financial protection bureau rule that would make it easier for consumers to sue banks. republicans have fought against the legislation since it was created after the financial crisis. passporting arrangements. brexit secretary david davis says he expects financial services firms to keep existing passport rights, during two-year bridging period. goldman sachs group is considering bulking up its coverage of small to mid-cap companies. even though mifid ii is likely to lower trading volume in those two stocks. that is according to a person briefed on the conference call in which the issue was discussed. a goldman sachs spokesman declined to comment. the lender joins deutsche bank in making these announcements before the mifid ii deadline comes

that people are looking at whether or not they're still on these there's there's oil there's the saudi aramco sale and then there are these social social reforms let's take them one at a time you know how might this sort of whatever the moving shifts in the sand in the desert over there occur and how might it impact oil and the upcoming opec meeting well they need to bring oil price design up as we're speaking oil prices are going down and they had about a two and a half year high and mainly because of the cuts from opec the one point eight million dollars a barrel along with russia but now more supplies coming back up it's a very simple equation the higher the prices go the more production comes online and you're seeing in the u.s. with the rig count going up in production going up so it's very important that they come to some kind of agreement to not only keep the one point eight million barrels a day cut but they're probably going to have to expand it is well real quick so before we get to a ram code jerald so i mean it took a long time because that agreement was initially you know panned

we get his thoughts on the future of the saudi aramco ipo.his is bloomberg. ♪ ♪ nejra: welcome back to "bloomberg markets: rules and returns." ed: it is a big win for financial firms on capitol hill. the senate has voted to overturn a consumer financial protection bureau rule that would allow it to be easier for consumers to sue banks. republicans have fought against the legislation since it was created after the financial crisis. passporting arrangements. brexit secretary david david says he expects financial services will continue during the brexit transition phase. goldman sachs group is considering bulking up its coverage of small to mid-cap companies. mifid ii is likely to lower trading volume in those two stocks. that is according to a person briefed on the conference call in which the issue was discussed. a spokesman refused to comment. the lender joins deutsche bank in making these announcements before the mifid ii deadline comes into effect in january. it will raise the internalizer in cash equities, cash bonds, and derivatives. that

some investors may they may not have a comfort level with the transparency of it's provided by saudi aramco last thing if we're running out of time jerrold what about these social reforms i mean you know they had toby keith there when president trump was there in may they've had a jazz festival heck the blue man group has been there and they are talking about not talking about next summer they will allow women drivers are those important social reforms that are taking place in the kingdom. well this summer for sort of small sleet glitzy distraction i mean it's easy just want to go with you know and we're going to let women drive or you get a lot of travel by themselves to someday you know are things again this prince is a prince of really knowing how to use the media and he does it well and he plays all the buzzwords and one of the things that you'll learn in the treads business be where are the buzzwords and that's what we see a lot of thank you gerald and you know just as a final note it before women get a driver's license they need to get approval from their male guardian so maybe changi

the business for saudi aramco. and now apparently the united states has thrown their hat in the ring so it's all business at the end of the day but it's interesting to watch again the fact that the mainstream media here doesn't seem to know how to cover it yet because they're just not covering it. they don't know how to cover it yet because it distorts their parallax view of the world such as around the in tractable evilness of russia look there is a third rail in the region that if anyone puts their foot on to that third rail they're going to be fried quicker than you can say you know harvey weinstein in the bathroom and that would be a rant if anyone decides to actually pick a fight with iran you know they're prepared to meet by maker there's been waiting for war for twenty years they've been they think they've got an incredible ability to take on these joe out of the middle east you know that that would be the absolute suicide mission it is shia and the sunni is decide hey let's go at it told the tow ok trump br

we get his thoughts on the future of the saudi aramco ipo.berg. ♪ ♪ nejra: welcome back to "bloomberg markets: rules and returns." let's get around above of the rules on financial regulation. ed. ed: it is a big win for financial firms on capitol hill. the senate has voted to overturn a consumer financial protection bureau rule that would allow it -- that would make it easier for consumers to sue banks. republicans have fought against the legislation since it was created after the financial crisis. passporting arrangements. brexit secretary david david says he expects financial services firms to keep existing passport rights during the , brexit transition phase. goldman sachs group is considering bulking up its coverage of small to mid-cap companies. even though mifid ii is likely to lower trading volume in those two stocks. that is according to a person briefed on the conference call in which the issue was discussed. a goldman sachs spokesman declined to comment. the lender joins deutsche bank in making these announcements before the mifid i

that piece of iran because there's also a number of unanswered questions with regard to saudi saudi aramco. how how it's going to be listed exactly. how big this stake will be who gets to take part transparency is an issue i mean how is the saudi government addressing all of those concerns the local listing is quite easy and it's not problematic even from a regulatory perspective the question then becomes in regards to an internet. mentor in two national sales and i think that if we do get a private placement or private sale to some investors then it will probably delay an international listing i don't think that saudi arabia is completely going to abandon listing in an international stock exchange but certainly a private sale to some investors or some sovereign sovereign wealth fund would delay that the challenge obviously is sequencing all of these things it's not easy and the clarity on what they're what they're trying to do have think has been quite problematic recently talking g.c.c. though there's also this plan for a g.c.c. wide value added tax a sales tax on all on all goods. how i

the business for saudi aramco. and now apparently the united states has thrown their hat in the ring so it's all business at the end of the day but it's interesting to watch again the fact that the mainstream media here doesn't seem to know how to cover it yet because i'm so they're just not covering it not they don't know how to cover it yet because it distorts their parallax view of the world that centers around the in tractable evilness of russia look there is a third rail in the region that if anyone puts their foot on to the third rail they're going to be fried quicker than you can say you know harvey weinstein in the bathroom and that would be a rant if anyone decides to actually pick a fight with iran you know prepared to meet i make or there's been waiting for war for twenty years they've been they think they've got an incredible ability to take on these joe out of the middle east you know that that would be the absolute suicide mission well it is shia and the sunni has decided hey let's go at it told the t

the business for saudi aramco. and now apparently the united states has thrown their hat in the ring so it's all business at the end of the day but it's interesting to watch again the fact that the mainstream media here doesn't seem to know how to cover it yet because they're just not covering it. they don't know how to cover it yet because it distorts their parallax view of the world centers around the in tractable evilness of russia look there is a third rail in the region that if anyone puts their foot on to the third rail they're going to be fried quicker than you can say you know harvey weinstein in the bathroom and that would be a rant if anyone decides to actually pick a fight with iran you know prepared to meet i make or there's been waiting for war for twenty years they've been but they think they've got an incredible ability to take on these joe out of the middle east you know that that would be the absolute suicide mission well it is shia and the sunni to decide hey let's go at it told to go ok trump bri

aramco ipo. that hethe princess wants to wean saudi arabia off of oil. -- the print has said he wants to wean saudi oil. haidi: we also had president trump on twitter cording for aramco to be listed on the new york stock exchange. our asianvery much, equities reported. let's take a deeper look at the sweeping crackdown in saudi arabia. joining us is an analyst, emily hawthorne. aside, we are wondering what the implications are when it comes to foreign investors, international investors demand particularly ahead of this highly anticipated aramco listing. you look atnk when really, as you mentioned, the surprising scope and beat of this anti-corruption hurt that occurred last night -- anticorruption purge that happened last night, we have look at the priorities of the crown prince. he is moving toward aggressive reforms, he is trying to weigh on a different economic vision for the kingdom for decades to come. that is one of his top priorities. this ties in in a big way. he also is consolidating his power and acting on the power he has consolidated, by really achieving the place he has in .he successi

putin gets through without problems in the oil price, the second is the saudi aramco ipo when that's ssed perhaps we might see saudi changing tact. compliance is extraordinary. about 106% for those viewers who know old opec, compliance was always the issue. there was always a massive amount of overproduction, now it's helped by the fact that venezuela are producing at a 30-year low. they're not getting near to their target, and others like iraq who ch had behad been prod5 million barrels a day are now at 4.3 mel onbarrillion barrels a y back to you. >> steve, great work this morning. steve sedgwick. >>> president trump nominating marvin goodfriend to be on the board of governors he has been a critic of the fed. back in march he said the central bank should welcome more congressional oversight. if confirmed, goodfriend would take the seat vacated by sarah bloom raskin >>> there are several preess of econom pieces of economic data on the docket job liz claims, personal income out at 8:30 eastern. the chicago pmi at 9:45 a.m. randall quarrels and rob kaplan are also speaking today as wel

aramco. there needs to be disclosure of balance sheets, et cetera. saudi arabia was ranked 62nd on the transparency international index. >> pretty low. >> it has to compete fiercely with countries like qatar, which ranks 31st, countries like the uae which ranks 24th but this is a start. >> the crown prince is walking a tight rope here because it's a bit of a balancing act trying not to scare off investors, foreign investors who are supposed to be investing heavily into, for example, the big saudi aramco ipo on the other hand, he wants to make sure that he consolidates its power to continue that reform drive what should an international investor think about it right now? is this something that will pay off in the longer term but in the shorter term you should be cautious >> if i am an international investor looking to enter the saudi arabia market, and, granted, the saudi arabia market is a challenging one, i would watch out for things such as political risk, reputational risk, being involved with local partners that are politically exposed. conduct due dil

the battle for saudi aramco. president trump has urged saudi leaders to church the new york stock exchange for what would be the largest ipo in the world that the future remains uncertain. the latest air an anti-current john. is sending shockwaves throughout the business world. details are several prominent members of the royal family, including all of the bands who all are taken into custody. the richest men you've ever seen taken into custody. it is to focus on wall street at the top in supporting our news this morning. we'll bring you those numbers and analysis as soon as they hit the stage. markets kicking out the new week. mixed performances right now. dow jones industrial average flat to higher. the s&p 500 and negative territory right now. in europe, major indices look like this. pretty much downtrend in the eurozone. up to 100 down a fraction as his cacm dax in germany. asia overnight checked the close in the shanghai composite up half a percent. nikkei average of the former talent squeaking out again. han

that includes saudi state owned oil giant aramco.ba falling, down 4.8% in 5.5o, plans to raise billion dollars and explore the sale of nuclear assets to avoid being delisted. its claims says against westinghouse will allow toshiba to significantly reduce resources that can be used by the business. kong, son art reversing gains after alibaba said it is investing $3 billion in the company. taobao will own 36% after sealing the deal. themlliance will help explore new retail opportunities, and sun art will continue to be traded in hong kong. that is your bloomberg business flash. thanks. let's turn to central banks. we are waiting minutes from the fed and the ecb. the fomc held the line on interest rates earlier this month, but hinted they would raise costs in december. the ecb said it would be buying bonds at a lower rate, but a longer time. goldman sachs says it sees for rate hikes in 2018 with strong momentum likely to boost wages and inflation. later today, mario draghi addresses brussels. the head ofs, wealth management at citibank

treasuries can from the government agreed to a $2 billion loan guarantee for saudi aramco.tics say it is an affront to the idea of free market. main financial regulator is under fire for proposing relaxed rules to lower aramco to london. head says the company needs a credit company. the ceo says that is because the growth potential of china's financial services, that sector is huge. >> in the coming decades, chinese investors will become more long-term oriented. they will start to understand and appreciate the importance of asset allocation. creditease is doing a lot of investment education at this time. >> how do you think you will be able to read thp the benefits of that? we utilize technology. for example, investors can learn complex things like asset allocation. through a 3-5-minute video. finance can be very complicated for people to understand. once they understand the concepts, they can change their mindset. we give them a lot of help. growth in thisus business, 50-100%. haslinda: the expectations of phenomenal growth, is there need for a credit scoring system in chi

i think we need in particular to monitor what is going on in saudi arabia terms of reforms. the aramcot be underestimated. it is not about how much money you raise, it is how transparent are you going to be. what does that mean about what you're going to reveal about the long-term perspective of your economy? that's why the aramco ipo is important. that's why it needs to be done in the u.k. or america. at what was i look written in the daily profit, it was said that spanish markets a returning to normal, and bringing home the point that geopolitics has a short shelf life. the focus again is on fundamentals in europe. luciano: i'm not sure about a short shelf life or not, but the , thiss that in catalonia was known to be a red herring for some time. the region is extremely split between independentists and unionist. independent move, a last-ditch, desperate act after a possibility to enter into dialogue with the central government, in a difficult situation. catalonia tolt for succeed when more than 50% or around 50% of the people are not convinced. it is also a wealthy region. wealthy p

thise: do think any of derailed the saudi aramco deal? firas: i do not think so. rom the prime minister of saudi arabia that they are still on track for next year. there are still questions about where the ipo would debut. askedrk, president trump for the new york stock exchange to be asked -- to be considered. however, there are political and legal risks with listing their. perhaps listing in the saudi market with the china offering to take a stake in aramco is more likely. ,vonne: appreciate your insight joining us from d.c. one feature on the bloomberg to bring to your attention is our interactive tv function. if you have missed out, you can find it at tv . live, findch us interviews, dive into securities are functions we talk about. become part of the conversation by sending us instant messages during our show. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ ♪ yvonne: take a look at the yuan. we are seeing strength here this morning. closer to 1090 against the dollar, the strongest we have seen it against the dollar sin

in terms of the other piece of the reform puzzle, saudi aramco, arguably the crown jewel in vision 2030out that there have been conversations with the cso in -- the cfo in january about the amount they're going to list. how valuable do you think the company is and how big of a difference will it make? goolam: it is seismic. this year's scale and capitalization of this entity is coming to market, simply beyond the symbolism, it is reflecting saudi arabia's coming out, their liberalization. it will inject capital that will help to buffer oil prices. the symbolism also suggests that saudi arabia may be at a tipping point in a constructive sense, and inflection point, where the behavioral dynamics, coastal dynamics and land the land of the particular country is on the cusp of major reforms, but at the same time, it needs to be done in a sensible manner. david: just to pick up on your point, you mentioned momentum have been picking up in the reform agenda. when do we turn the corner? are we talking 10 years before we realized the reform process succeeded? goolam: the nature of structural ref

the mid east to the far east there are talks of china that they may make a bid for 5% stake in saudi aramco foxbusiness exclusive. they head about 16 billion and in management. good to see you here. you have action. all of these saudi princes were being arrest did. how if you can does that connect the dots to the price of oil. it happens in saudi arabia and it's very interesting. it seems very clear that he is the crown prince. how does that relate to the energy market. we know now is that both of them have both endorsed that. that is important for this reason. if we have a production cut agreement that is extended that is a global oil surplus that we had right now dissipates. and by the end of 200018. we are in a much better position it is really important. it really sets them up nicely for the years to come. let's start to get in detail here about oil prices. when i started to see the fear factor going on we started your people to see that. they usually jump with uncertainty. instead they have been a flat or slightly lower where dc oil in the medium term imac and assay of in the state the

saudi aramco, when will it happen.and see game and lesswill translate into flow in the region, a flow i anticipate to be significant this year. i found this market for stable and very interesting. some of the glow has disappeared somewhat this year. david: i'm looking at one of uc energy prices falling 50% over the next 10 years. understand why you think that is. >> the story is really about electrification. china has two stated goals in the five-year plan, growth, and the environmental and pollution side of it. pollution,s fighting they need to go to electrification. electrification will look like a bitcoin chart over the next five years. volkswagen has committed over 60 billion euros over the last two months for this project. inhave a change in dynamics terms of the car industry. that happens at a time when we are coming into a market with high prices based on a deal and which will face geopolitics. david: is there any country you see having the advantage in this long-term phase of electrification? >> when you talk a

>> meanwhile, the american later is urging saudi arabia to lift saudi aramco on the new york stock exchangesaying he would very much appreciate what could be the largest ipo ever. and rising risks, pboc governor china's financial system is left significantly more vulnerable and calls for reform. yousef: it is bright and early in dubai. clock looking at some a.m. local time. welcome to "bloomberg markets: middle east." what a dramatic start to the we. >> the saudi crown prince appears to be melting something of a purge against several high-profile princes in the world family. yousef: the list, i keep having to look through it again. accused of everything from corruption to of using public funds, some very big names on the list. including a very well known as this man. -- businessman. looking at a lot of foreign officials. a lot to digest here from a market perspective. tracy: that is exactly right. it's bringing out executive editor for the middle east. with the obvious question, is this a power grab in anticorruption clothing? >> it's hard to not come to that conclusion. came first, before

the rule of law and makes it harder to a tract foreign investment. >> so you mentioned it the saudi aramco ipo, that is pivotal to the transformation of the country. >> that's the lynchpin. >> and when do we know when are we going to know one way or the other whether this is going to have a meaningful impact, both positively or negatively >> i don't think we even have an answer to that question yet, and it's important for them to be transparent in the process going forward. we have to see that they have a rule of law in saudi arabia. this corruption committee sprang up overnight what real evidence do they have? certainly it may well be a mixed bag. some of these people detained may well be totally corrupt and need to be prosecuted. others may simply be political rivals swept up in the purge i think we've got to understand that it may take a while for this to play out and it could actually delay the ipo, it could delay the interest of foreign investors until they see how this shakes out. >> ambassador, do you ever think we'll have a clear idea? >> i think we'll get a better idea of who the

saudi oil minister there. does this starts to make them nervous? are they getting out of the last minute of their dependence on oil? is the aramcoba going to be more difficult than expected question mark -- expected? >> clearly that is not ideal. -- the chinese have a huge dependence on saudi oil which is likely continued. make isr point i would there is -- the advantage they have is theirs is the cheapest oil in the world. you will hear increasingly as the world changes we will be the last man standing. a very last line -- a nice line. >> right. a nice message. does this raise questions about the timing of the aramco ipo if you're talking about how investors were not going to talk to you about renewables. we are does this leave an ipo of this size? >> think in the context of what this is trying to do, very interesting. you try to talk -- try to find a new one. this goes for any energy company ahead. there is a massive base of investment availability in china. the quid pro quo is the chinese staples, as goods, well as other exporters. >> thank you very much for your thoughts this morning. >> he stays with us on the program. let'

of rival decision of middle eastern oil and gas which is, not least of the highly anticipated saudi aramco. it is also interesting from on abu dhabi perspective. it is a centerpiece of oil and total oil, 6% of reserves, and under its new ceo, he has been trying to transform the company into what he says will be a new type of national oil company. down with him after the announcement for an exclusive interview. take a listen. announcement said at least 10% of shares we plan to float on the market. higher. go that will depend on how do we focus on the markets. >> is there a particular valuation? >> not really. we want to demonstrate the ability of this first of its kind ipo in the region. what we are trying to achieve a numbers that will show an fromcedented commitment the international and local markets to work alongside adnoc. >> there are rumors you might float other businesses? >> we are working to maximize value to our shareholders while keeping adnoc fully owned by abu dhabi, but we will be exploring across the value chain with the main focus on services companies. listingeep ruling ou

julia: what is saudi aramco itself saying? what is the ceo saying about it? >> they are very cagey.n track for 2018 but when pressed they say it will be up to the shareholders. who are the shareholders? right now, it is the government. i think that they realize how quickly that they are going. perhaps too fast. this is arguably the most important thing that saudi will do for the next hundred years so they do not want to mess this up. they want to get this right. reason to push it for the sake of getting under the 2018 time horizon. most people think that 2019 is more realistic. julia: getting this done as a big part of the grander vision for saudi arabia. talk to us about that. there is pressure to get it out into the market. >> vision 2030 is a huge economic revitalization reform plan that, again mohammed bin solomon, who not long ago was the deputy crown prince, meaning he was third in line, now is the crown prince, he is 32 or 33 years old, his nickname is mr. everything. he has purview over the economy, military, security, and obviously politics. this is his brainchild. you have

>> obviously i speak with saudi aramco quite a lot that's the target in 2018. regards to the ipo, it doesn't affect what we do as a business. >> i think it does in some ways. i'm sure you can tell me not it must be all consuming for the management, getting the books up to international standards, working out where they're going to ipo as well working out which assets are going to be disposable with an international listed company publicly as well no hint of distraction >> no. as a matter of fact, the group that we work with at aramco is all about developing the field for them to what we call maintain production, maintaining north of 10 million barrels a day, but also looking at how aramco can expand their production longer term as we look at obviously growth in the energy market. so as far as the company, we don't see any impact on the project development group that we are working on today. >> are you happy with the mix? 60% exposure overall to saudi as well, do you feel you need to off set given everything that's going on at the moment we have a lot going on p

>> i think it can happen, but it all depends on the aramco and the government of saudi arabia what do they want for that ipo to happen? it's not just launching the ipo. it has to do with the right environment, the right price, other parameters so, actually it depends on them. it's not a speculation of whether i think they can make it happen, and they can, if that's the question there's an interest by the international community for it to happen, but are they going to decide at the right time, next year i think if they said so, they have a potential to do it. and i trust them >> not quite a yes or no thank you. >> i think cnbc said yes, so i will say yes, it will happen >> your excellency >> i think it will happen. >> sir >> with the kind of delegation and commitment we're seeing, most probably it's going to happen, i guess. >> there you have it i think one minister there saying with regard to the saudi arabia ipo taking place next year, the price and environment would have to be right that's something that the leadership panel i talked to, they're still talking about whether or not th

to privatize saudi businesses like saudi aramco.re all things that observer of the kingdom would support. -- the sun time, mbs son of the king, now 81 years old. consolidate power. sometimes --and process. he wants to consolidate power in his own hands so he can force change and combat iran. he regards iran as a threat to the region and saudi arabia. you have an attractive side, the push for modernization and change, driving against corruption, which was the reason for these arrests publicly announced a saturday. the good side, but the bad side is saudi arabia is becoming a place of one-man rule. if he is not careful, a more .utocratic, a more controlling the problem is once you start a process like this you have to keep pushing. you push harder and harder and arrest dozens of people. what do you do to their power centers and the people behind them? you have to control even tighter, turn the screws even more. charlie: what are the people he is overthrowing going to do? it is not just them. there is a whole army of people who support

he treated the economy and 17 year low and then had a page for saudi aramco, the largest in the worldw important it is for the ipo to be with the new york stock exchange. when you think about it? >> that's a little bit unprecedented for the present of the 90s is to weigh in on what should be a business decision between the united states if they come here to join our market. again, this is probably the president of the new york stock exchange which is unprecedented, but not necessarily strange to donald trump is >> i can make a movie the same to $350 billion arms deal with saudi arabia, so you have this courtship, here in the u.s. in the new york stock exchange. as part of this subway to keep the positions of iran in check by the u.s. and saudi arabia having closer ties? >> absolutely. the closer we can get saudi arabia to the 90s dates as opposed to any other power including the most dangerous iran i think it's a plus for the united states. the key to the whole problem and conundrum is the stability of saudi arabia appeared to be able to pull this off on their own? are they going to b

marcus: they have a requirement to raise quite a lot of money, be it from sales of saudi aramco possibly$30 billion in bond sales so far. they repeated that again in september. they want to raise money from the bond markets as a way of financing their rather large deficit. theyoil price where it is, are requiring to basically change the economy. they have this vision 2030 angle. but the key is raison d'Ãtre. it's not just -- raising debt. it's not just saudi. seen theve we contagion in the rest of the arab world? marcus: we have, actually. some countries have widened more than saudi. united arab emirates or kuwait, less, but they have all widened. bond prices have been going down. you've prices have been going down. it's a divergence -- yield prices have been going down. it's a divergence. the monarch may step down this weekend. there are a few other things going on in saudi as well. vonnie: given that there are plenty of other countries that are a lot more unstable at the moment, surely those lower prices will to the late some investors -- will titillate some investors. marcus: indeed.

, huge indications for saudi aramco's ipo and the profits of that, which are supposed to fund the transformationthe country. will investors flockto it or will they walk away? so a lot going on. >> indeed, andrew. as a lot of people said over the weekend, of all the news we got, this might be the most impactful turn of news, at least for the long term. we'll have to wait and see, obviously. andrew, thanks so much after working all morning long, andrew ross sorkin joining us from the times headquarters. for more on the situation, we're joined by simon henderson, washington institute director of gulf and energy policy, and mohammed, atlantic council nonresident fellow mohammed, two questions. is this a corruption probe or a power grab and what is the imp pact on capital flow both in and out of saudi from here? >> so, i wouldn't call it a power grab, but everything that's happening in saudi arabia is political by nature today most of the steps taken by the crown prince after the power have overturned the system in saudi arabia they're all unprecedented. the political dimension is always there it's n

saudi aramco could face litigation as well let's listen in. >> new york is out because of the risk in the allegation london may be out too because they don't disclose the inner workers of aramco. it will be interesting to see what happens with the deal >> questions of transparency with it expected on track for 2018 that's what everyone continues to tell us again and again a lot of questions about the criminal and corruption crack doup where does it end? this is faze one, so we may have a long way to go >> great job as always thank you for that >>> altise is under pressure the ceo resigned and the company founder is returning as president. the shake up comes a matter of days after the group said that it lost 75,000 broad band customers in france. >>> disney shares are feeling the force of "star wars" reversing losses on news its movie studio will create a new trilogy. the stock rose after the "star wars" announcement, reversing a sell off after disney's results missed expectation on the top and body julia has more >> reporter: disney reports falling short of expectation it's below the

continue the policies like selling part of saudi aramco that necessitates a higher oil price, but youlso had a near missile strike near riyadh rising rhetoric towards iran, towards the lebanese government. there's a concern about the broader regional concept >> one of my must-reads talking about a more aggressive salmon >> you think about what happened on saturday, you had this ballistic missile fired at riyadh from yemen. at the same time they're rounding up these ministers. you had mohammed bin salman say this was a declaration of war by the iranians you have a foreign policy issue and a domestic issue >> what does your forecast say >> we will have to watch developments it comes against the backdrop of the venezuelan debt crisis there's a situation now where they have to restructure the debt, it's hard because of the sanctions the u.s. put in place. if we get a sovereign national default with an oil company default that could be disastrous for venezuelan oil production. >> that's mostly what matters to the market production collapses. >> everyone is watching have we seen the return

for me hi, this is carolyn in the studio as well you mentioned them also the importance of the saudi aramco deal do you think for the time being given what's happening between saudi and you will see the g geopolitical risk premium stay in the markets >> yes that's the thing about the financial markets. they always price in a lot of the bad news, the geo politics, headline news, isis, volatility of oil prices but the facts on the ground are that people tend to -- are under invested they miss the potential up side. the bond markets have a history of very strong risk adjusted returns. in fact, much lower volatility despite the persistence of the geopolitical headlines. >> we have to leave it here but thank you so much for your time. dino kronfol from franklin templeton investments. >>> eight of the world's biggest banks are reportedly prepared to settle with brussels over the fact that they formed a cartel they're all hoping to reach terms with the european commission which would end a four year probe into accusations they colluded to rake the 5.3 billion global foreign exchange market >>> and

it's occurring while the saudi, aramco, their big oil company which wants the transform itself into aompany so it can pay down debts, by the way, there's a huge unfunded liability in saudi arabia's pension fund, is looking to do an ipo here, so it's weird. as donald trump is over there, was over there praising -- and he's often praising this new saudi -- >> pushing for that ipo to be done at the exchange. >> he's actually pushing for it to go out in the u.s. exchange, the nyse. at the same time, you've got this thing and a huge sort of tumultuous development involving the saudi financial sector. this is -- connell: it's weird. it's not just the prince, actually, because all these other crown princes as well, and they're doing it under the auspices of modernizing the country -- >> it's almost out of the chinese playbook, isn't it? in order to sideline your rivals, you launch a investigation, and then you can -- a corruption investigation, and you can peat to the side -- put people to the side. i do believe the crown prince wants to clean up corruption because it's better for the cup, b

if you go to saudi aramco, they are forced to do things for the government.t things for them, schools. it is different around the world. i would say on average american business and american people are more philanthropic. it is much more of the subject here. people give away money here. in some countries that is how they do. they will grow and i think it will change, but they don't do as much of it. >> is this embedded in banking because of the community reinvestment act? it is a part of your dna differently from an industrial company. jamie: i think it runs the gamut. eastman kodak, corning, they built the schools and the roads. i think most companies do it. some giveaway .5% of the profits, someone percent. -- some 1%. most folks in this room, we have responsibilities under the law, the community reinvestment act. some of those are quite good and some are completely misguided and quite the opposite of what you want. i don't mind having those laws. you should be careful when you impose upon companies with a have to do because they are a bank. people do reall

people think that in the region for one moment as well if anything, they're excited about what saudi aramcoan bring forward. i have a meeting coming up in two weeks time in vienna, opec, november 30th, that will be key as well. you have one desk there, you have the boss of aramco on the other side when they get together, they're the titans in the room will they agree on policy going forward beyond the end of march? that's interesting that could have big ramifications for the oil prices >> even when there is no energy news i look forward to your coverage of an opec meeting. reminds me of some of the scrum halves of yesteryear it's always a bit of a rugby clash. we look forward to ongoing coverage in the next coming days. >>> we're following a developing story out of zimbabwe. the nation's army says it is has president robert mugabe and his wife in custody following a night of unrest in zimbabwe's capit capital. the military seized state control of the state broadcaster and military tanks were seen patrolling the streets the army says this is not a coup and that the president and his wife are

donald trump has lobbied saudi king salman to list saudi aramco on the new york stock exchange.he call for the president tweeting his hope that the listing would occur on the u.s. exchange. the tweet came out of the blue for aramco. qualcomm is the bank to fend off in unsolicited that's unsolicited takeover. according to people familiar it argues that the offer undervalues the company. an offer could come as soon as today. that is your bloomberg business flash. africa's airline received a bailout to avoid a debt default over a month ago. moody's want that this could create a moral hazard as other cash-strapped companies will come to expect the same. the finance ministry has put new management in place. let's talk to the man selected for the job. let's go to johannesburg. the ceo of south african airways. let's talk a little bit about this airline. how do you stop it going from going bankrupt -- going bankrupt? guest: the big focus is going to be around optimization, making sure we we fly routes that are profitable but make sure the underlying cost structure is dealt with and a n