For the city. Deals top 70 billion in just 24 hours. Just how much can m a avoid the risk rally . This is the European Market open. Less than a halfhour to go until the start of the trading day. A number of scenes to talk about. Not a great deal of movement in these markets as a result. We are kind of holding our ground after early risk appetite. When you look at the currency markets, a lot of that has been pared back. Expecting to see a bit of a bounce at the start of the trading day in europe. Lets put the u. S. Futures. Some moves to the upside also foreseen in the u. S. But not by any stretch large gains, partly reflecting the strength we have already seen this month and over the past few months on expectations of trade negotiation success and the Balance Sheet. Lets not forget the other factors that have driven us higher. Lets have a look at what is going on on the gmm. This shows us the Asian Session quite nicely. A mixed picture, quite a nice story for the session. We are not sure where we are heading despite talk of consensus from the u. S. And china entree talks. The market could had hired still on trade talks. The market could head higher still. We see these mega deals from drugs, luxury goods, brokerages. That is another story we will be talking about a lot today. That momentum, that story has gained ground as we have gone through the last 24 hours. That is still very much in the mix. The ipo around alibaba also very topical. Lets get to the markets now and our conversation with mark cudmore, who joins us from singapore. I guess where there is talk there is hope when it comes to trade, but the markets do seem to be running out of steam a little bit waiting for something a little bit more concrete. Yeah, it was notable that the optimism we got on trade this morning. It is quiet with optimism across the board. I think that might continue to be the theme at the moment, that overall, we have priced in pretty much this phase i one deal thats going to happen. We have priced in optimism. Most assets are expensive but there is not a negative catalyst to take it out. This will be an ongoing theme into christmas. A scary headline will cause a much sharper reaction to the downside but negativity will quickly subside. On the top side, we are already quite stretched. That means we are going to get risk assets like equities to continue to drift higher until year end but not aggressively so. Anna reaching consensus or properly resolving rather than issues. That is one of the lights coming out from the chinese side linesght one of the coming out from the chinese side overnight. What is going to drive these markets . Is m a going to be a real theme . What are the dart thoughts of te markets live team this morning . Use and have a lot of my colleague wrote an excellent macro view on this. A lot of clients have come in as well. There is a sort of general theme from other views, the consensus is look, it is a marginal positive. It is not kind of ringing the bell at the end of this market in terms of overall, the amount of trade deals is not kind of exceptional. We have a longer lead in time for some of these deals and it is a holiday week. It is therefore disproportionate by merger excited monday or the idea that this is suddenly an extreme moment. This is generally an ok sign for the market. It is not yet saying an end to the bull market but lets not read too much into it. Thats a summary of all the views we have received. Anna maybe i am in danger of reading too much into a micro story but what about alibaba . The hang seng hoping for the listing of from the this well, this supplementary listing of alibaba shares in hong kong after all the months of protest activity. Is it impressive to see this get away or will that always be the case . Impressive. K it is we have some highprofile ipos this year that had flopped and not done so well. Business goes on in hong kong. Yes, there have been very real cess does protests, some there have been very real protests, some lives have been lost. Hong kong continues to operate well. I think it also emphasizes that at least the hang seng index, which is more internationally exposed like alibaba, is generally quite cheap and there is a massive discount in their already. It is a positive sign for hong kong and for asia overall that these protests will not become a bigger regional issue. Anna i wonder what you think about inflation heading into 2020. Jerome powell was saying the Monetary Policy backdrop might help a decisive move back to 2 . Some of our colleagues have been writing about how tips have outperformed treasuries in 2019 over some tenure. What are your thoughts around the inflation story . Mark i am really just not worried about inflation anytime soon. I think we could get these shortterm spikes at various points in the months and years ahead. The next many years, i just do not see a sustained inflation pick up unless we have a currency crisis. I think the structural disinflationary pressures do the kind of rise of automation and atoryraphics and regula pressures means that doesnt mean we cannot exceed the 2 target what it means we will not get runaway inflation anytime soon. I do not think we will get the long term bull market in bonds, 30 plus years will not turned into dust will not turn into a sustained bear market will not turn into a sustained bear market either. The range is probably between 1 and 3 or 0. 5 and 3. 5 but it will not go back to the way it was 1015 years ago. I think not ever again but certainly not in the next few years. Anna he said ever. Mark cudmore joining us from singapore. Get involved and tell us what you think. Contact the team using tv. How much do mergers add to risk rallies . There have been plenty of mergers to talk about this week. Up next, alibaba jumps on its hong kong debut. We will be live in the city with more details. Remember, Bloomberg Radio is live on your mobile device or dab Digital Radio in the london area. They will have plenty more on the alibaba story and the latest from hong kong as well. This is gilbert. This is bloomberg. Welcome back to Bloomberg Markets european open. 8 41 in paris or berlin. This is the picture across europe and equity markets, the futures markets, that is. Lets get a bloomberg first word news update. The fed and chairman Jerome Powell is striking an upbeat tone. He is confident policymakers can extend the already record economic expansion in the u. S. He says the glasses more than half full and with the right policies, we can fill it even further. The central big chief the central bank chief again is signaling the chief rabbi suggesting people avoid voting for the labour party due to antisemitism that he says is a sanctioned from the top. He is not explicitly calling on people not to vote labour. He says british dukes are concerned about the prospect of a labour government. In hong kong, leader carrie lam is not offering any new concessions. It is her first Public Comments after public as prodemocracy forces it is her first Public Comments after prodemocracy forces won a landslide in elections. The priority for us now is to properly follow up on actions proposed, including community dialogue. After these five or six months, hong kong people have realized very clearly that hong kong can no longer tolerate this chaotic situation. Everybody wants to go back to their normal life and this requires the concerted everett of every one of us effort of everyone of us. Westpacs chief executive has resigned, succumbing to investor pressure after allegations of the biggest violation of Money Laundering laws in australian history. The Financial Crime agency is accusing the lender of 23 million breaches. It includes failing to detect payments that facilitated child abuse. Global news 24 hours a day, onair and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thanks very much. Leighann gerrans with your first word news update. Lets get to one of our top stories. Alibabas hong kong debut is a success that perhaps the city needs. The stock rose as much as 8 in its first trading day, even as hong kongs leadership took another hit after District Council elections. Alibaba raise more than 11 billion u. S. Dollars in the share sale, the citys largest stock issuance since 2010. Our reporter is at the Hong Kong Exchange. About thelk to us trading day that was for alibaba. What has its performance been like as the trading day is coming to an end there . We have got about 20 minutes before the market close on this milestone day not only for alibaba, but also hong kong. Shares in the city have been fluctuating given the political concerns that have cast a shadow. Alibaba shares have consolidated after opening at 187 hong kong dollars, higher than the issuance price and early arising more than 8 . The stock is the most actively traded today, far performing out rival tencent, which may find alibaba turning up the heat on the mainland, as a ceo now has 43 billion in the war chest after this share sale. Performance, alibabas hong kong shares are trading at a slight premium to new york listed adr, which closed above 190. Analysts are bullish Going Forward with the average price those adrs. For anna let me ask you about the broader implications. Will other Tech Companies follow alibabas first steps for listing in hong kong . Tech stocks in asia have outperformed other listings in the region. I wonder what the reader crosses going to be. Read across is going to be. This is a feather in the cap of asia of hong kong. He is confident more companies will come closer to home. Flanking alibabas ceo and Senior Management on stage, we had hong kongs finance secretary and a former chief executive, making for a symbolic event, which is made even more memorable with the dancing alibaba mascots around the stage. Alibaba had to pave the way for tech unicorns after rules were relaxed last year in the city to allow for dual class shares. There could be a review of alibabas eligibility to join the hang seng index. There is lots of anticipation about the stock connect. Alibaba stock connect alibaba could join next year. Anna it is not a proper listing if there is not some sophie at the Hong Kong Exchange marking listing of alibaba. Merger mania is a sweeping boardrooms across the globe. Companies kicked off the week by announcing more than 70 billion in deals, led by Charles Schwabs buyout of Td Ameritrade. Mergers involving novartis and mitsubishi sent the worldwide index to an alltime high. Joining us as our asia cross asset editor in tokyo, who has been pouring over this trend. What is the reason . What is driving this . An interesting series of what we call reds sticky headlines on the bloomberg theinal on mna news over past m and a news m a news. One consistent theme is that funding costs and plentiful liquidity are making these transactions attractive to finance. We have had this big turn by the ,entral banks since the summer Federal Reserve cutting Interest Rates, starting up Balance Sheet expansion again. They would caution that this is not quantitative easing, but there is no doubt that the liquidity environment is much healthier than it was back in the spring. Similarly, European Central bank is actually officially back in the qe game. We have borrowing costs having come down, bond yields down for the year. Interest rates across the board are down. The financing environment is very constructive for these deals. Another theme we have seen from a number of Market Players and this feeds into what you were saying about the stock Market Reaction is that it may represent a little bit more optimism about the economic outlook. You know, things are looking little bit better. The u. S. China trade work seems to be at least on pause. Now maybe is a good time to get some deals done. Anna that is some of the driving those are some of the driving forces behind this wave. What implications are there for broader markets . I was cautioned by the markets live team not to run away with myself in terms of excitement around m a. If you look at the size of these deals versus Global Market cap, maybe this is not such a stand up. A strange week with thanksgiving interrupting trade. There are many reasons why this may not be as remarkable as it seems this morning. We do not see recordsetting pace here. 70 billion in 24 hours catches the eye. The other thing to just keep in the back of our minds is that a big, recordsetting wave of takeovers would perhaps speak be more of a concern than something to be excited about, because that is what they call kind of late cycle exuberance, when everybody is in the final buy gasp to lever up and what they can. That can be an indication that things are getting a little bit frothy, that we are coming towards the end of the expansion. Perhaps it is a healthy thing from a market standpoint that we are not seeing records being set quite yet. Anna ok. Chris, thanks very much. Editor. Cross asset minutes away from the open. We will take a look at the stocks to watch, including nl. The Energy Company is raising its 2020 profit goal. This is bloomberg. Anna welcome back to Bloomberg Markets european open. Lets get around the newsroom, find the stocks that the team are watching today. Annmarie hordern is a focused on auto parts. Jp barnett is covering the and danimpany enil, burger focused on cybersecurity stocks. Us, they confirmed their 2019 guidance and are seeing sales growth above 5 through 2022. Adding to this optimism may be the fact that we have these trade deadlines. It could possibly give the entire outer space a lift. Enil what is the latest on guiding a little higher . The company said it will slightly increase its minimum dividend payout. Keep in mind that the stock had a pretty good run so we will see how excited the market will be about that news. Anna i think we will keep a night on that one an eye on t hat one. The cybersecurity sector . They felt about 5. 8 in extended trading yesterday. The fullyear forecast disappointing. We might see european shares fall in sympathy. Manufacturers like bae systems, their big company in cybersecurity all could tumble today. Anna we will keep an eye on those sectors. Lp was talking about the ene ceo. We will be speaking to the enel ceo later today on bloomberg at 11 30 a. M. London time. First go is the function to use on your bloomberg if you want to get all of the stock stories we are focused on. In terms of other things we are a tradingcrh had update that seemed broadly positive. Compass, no change in guidance from the catering business. They are talking about deterioration in europe. A downgrade to easyjet. Europe car set to be drawing bidders from private equities. A lot to watch out for on what is generally a quiet day for Corporate News flow applying to think about in terms of the trade story. We have had these warm words from the trade negotiating teams talking about nearing consensus on pushing this forward so we will see when we get any solid news. This is bloomberg. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Anna a minute to go until the start of cash Equities Trading on this tuesday morning. Lets take a market a look at the markets. The session in asia dominated by talk of trade talks between the u. S. And china. Things sounding constructive as conversation taking place, phone calls happening and we got very positive takes. That helped to push markets a little bit higher but since then, little bit of retreat. That was reflected. The same reflected in the lay hours last night on u. S. Futures. In little bit of movement downward in the pound. We saw that yesterday late in the afternoon in the u. K. Session yesterday on some of the polling data. The lead of the tories is still there but did not look quite as big as it did in some of the other pools. Polls. Keeping we are keeping an ion the u. S. Inventory eye on the u. S. Inventories data. As well as the trade theme, we talk with chris about what all that means. Frenzy, thee m a extent of the phenomenon we see at this time, what is driving it . What are the background factors that make this kind of activity more likely from ceos . Certainly still very much part of what we are talking about in europe today. The ftse 100 up by 0. 3 . We see a slightly flatter picture. We did see that weakness in the pound at often we see that negative relationship between the pound and ftse 100. That seems to be holding today. We saw a slightly more muted move to the upside for other markets. The german dax up 0. 1 and the French Market fairly flat this morning. There is not move in the pound, down 0. 2 there is that movement in the pound, down 0. 2 . Daily now sopolls we will be keeping an eye on them. Lets have a look at what is going on in the sector picture than. Things looking then. This time yesterday, we saw optimism around the markets as a result of those headlines on trade. Staples, health care, information systems, energy showing shades of red coming through. Financials predominantly green. Discretionary predominantly green. We see a mixed picture coming through on the sector. Lets see whats happening at the individual stock level. In amongst a fairly flat session euroy, so weve got the stoxx not even up 0. 1 sorry, not even down 0. 1 . Very small moves. 330 stocks on the stoxx 600 going up, the rest to the downside or unchanged. In terms of those movers, we faurecia, thex auto parts business. That seemed impressive to the investment community. Pennon groupp up by 1. 6 . Was flat apany that little bit earlier on was compass group, the catering business. No change in guidance coming through from compass but they talked about deterioration in europe. As a result, we see that one in bit weaker. Dividendink is an ex story. Easyjet down 1. 1 . We saw a downgrade from one of the brokers today, easyjet recommendation so thats perhaps moving