Here in u. K. , there was a general election. We are in a blackout period until the polls close at 10 00 p. M. Pound at 1. 3020. 2 . Toxx europe 600 gained day two of trading. It is above 2 trillion in terms of valuation. Plus oil supply cuts will not prevent a surplus in 2020. That is according to the ia. We speak to the president of the Swiss National bank. That interview, 10 30 a. M. U. K. Time. Lets get to bloomberg first word news. Today, the u. K. Goes to the polls. It is the nations first election in over a decade and the first since the brexit vote. It is the first december vote in nearly a century. Polls close it 10 00 p. M. U. K. Time. The House Judiciary Committee is set to conclude a debate on articles of impeachment against trump. The likely result is a partyline vote that will send the measure to the floor of the house. The democratic majority is expected to beat back a number of republican amendments. Israel is headed for its third election in less than a year. The parliament has until midnight to find a lawmaker who could form a governing coalition. This after Benjamin Netanyahu ad failed to form government. The u. S. Sees troubling implications north korea may be pulling for a major publication. Usingkim jong un on longrange missile technology. Withned to attack the u. S. Nuclear weapons. A potential king phillipe has asked Prime Minister to try and form a government. Last months election, sanchezs socialist emerged as the biggest party. He is already sealed a pack with the on test area group. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Francine. Francine youre looking at live , theres of the s p leader u. K. Is holding its third general election in five years. Voting will continue across the country until 10 00 p. M. It is exactly when our special results show kicks off. Dont miss that. The electoral laws are quite different than they are in the states. Here in the u. K. , today we are in a total blackout period. We cannot talk about the leaders or voter turnout. On to other things. The Federal Reserve have left Interest Rates unchanged, a signal that will keep them on hold until 2020. Belooking ahead we will monitoring effective ways for policy actions on the outlook as we assess the appropriate path of the target. Emergese, it develops that cause material reassessment of the outlook, we will respond accordingly. Policy doesnt preset course. It here is how is telling you this is a fed on pause for a long time. It reflects the fed is groping in the dark. Nehru is not getting wage acceleration or inflation here. Why is nehru above 4 . The next move is predicated on flushing. Inflation. Ed on this is a fed that is tilting toward accommodation because the risks of the outlook. The next move is probably a cut, not a hike. It is a cut because of inflation and the risks are still out there. Investment spending is negative. So i think taking away, the biggest part of the economy. Consumer spending is hanging on. It is a different regime for that policymaking and even if they do start raising rates, they are barely raising rates. This is a far car far cry from normalization. It is not a real consistent message. Francine joining me to discuss about the fed is lena komileva. Thank you for coming in. Have a great chart looking at inflation. The biggest risk for 2020 you on inflation picks up . Lena absolutely. This is the key risk for 2020 thiswe have had is interaction between Global Economic risk and central banking function. What we do not have is an understanding that we are in a double economy that isnt consumer demand decisions. There is a burning need. Central bank policy has limited away from normality back towards crisis era. When you look the real Interest Rates, reflationary territory. When you look at Capital Markets at large, there is no sign of liquidity. Does it mean we are crating bubbles . Lena this is another quite great question. We are probably in the lowest cycle than we have ever been. That has created an understanding level of anxiety. It suggests this social banks will do whatever they can to throw the global economy. Part of that weakness is to deal with the structural. It is to deal with a tugofwar between a recessionary global economy, the good heavy metals, even the auto sector. A downturn led by chinas reindustrialization but by the global trade friction. On the other hand we have a consumer led economy. Consumer demand and that is creating a shift in capital fast. It will be inflationary in the longterm. Certainly not something for Central Banks to address. If Central Banks do focus on that, we are blowing bubbles. Francine in the older economies that are much more oldschool led, they often depend on the dollar which is a euro economy. It seems like things are more interconnected. If there is a downturn in the u. S. , and Everything Else follows. Lena that is a great question. We have the economic power. The breakdown, the more intellectual trade systems which have had a profound impact on how such a banks on how Central Banks do. Value, the u. S. 10year yields which is a reflection of how under hedged in the Global Financial performance. Interactionamazing of risks. That is leading us to a situation where we have a disconnect between Global Economic fundamentals. How this ends up is a story for 2020. Risk. Too much asymmetric there isnt enough risk. Francine equities and bonds going different directions. We will go back to it a little later. Coming up, madame president , Christine Lagarde shares her first policy looking at European Central bank. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Lets get straight to the Bloomberg Business flash. Good morning, francine. Saudi aramco surging for a second day reaching a 2 billion market cap. It had to settle for a lower offering an International Interest waned. Nestle is selling its u. S. As cream business to a joint venture. They will now own the branch including heloise and drumstick. The deal is worth 4 billion. They want to grow the business to challenge the Global Leader in ice cream. Addictions of another 15 predictions from an faa risk into boeing 737 max released by congress in put together after the first of the two deadly crashes that claimed over 300 lives. Faa administrative said officials asked it in good faith by not grounding the plane until after the second fatal accident. That is your Bloomberg Business flash. Isncine Christine Lagarde lagarde will likely be judged on how convincingly she communicates the plan to restore prices instability. Still with us is lena komileva. Howdid Christine Lagarde was quitting the guard viewed . Lena what we have had is this extraordinary turnaround from the fed and the ecbs efficient direction of the policy. We had a shift away from the ,eutral toward crisis era Interest Rate and expanding balance sheet. What the fed signaled last night is an open ended extended reflationary mode. It will take a more significant change of conditions but at the same time it will have to take a significant rise in inflation for it to do any tightening. That is precisely the most we will do to get from Christine Lagarde today. Breakdown and the other one is Mario Draghis legacy. He is going to color the outlook for 2020. Francine how can she bridge that divide . We heard from various members this divisiveness. It hurts the mechanism. Lena this is a great time for the ecb to have a conservative base. That was never a disagreement about the two core things. That divide is not just in the governing council. Is lagarde may well announce a formally stem policy review. That has that is six or seven months underway. I loved your coverage about it was great because it created in genesis for marla draghi in the last two meetings. The governing second, mario draghi did the unthinkable. He married Monetary Policy onto the actions. A sustained and significant increase in inflation toward asymmetric 2 target. What that means for madame lagarde is she doesnt have to do the same heavy lifting and defending negative rates. All she has to do is point. Francine go to frankfurt, outside of the headquarters. Julius baer, thank you for joining us. A quick take on what you think should be the bar to change the inflation. Debate but ig think the first task for madame lagarde is not really changing but it is unite the council behind the economist strategy. No matter how you change the inflation target, the big question is how the ecb will achieve that and how it can achieve that. Negative Interest Rates but also changes. What the ecb needs to think hard about and the inflation target makes whatat other inches what instruments they have at their disposal. The fiscal policy so the other policy makes it necessary to achieve any inflation target. No matter if it is the current one. What do thevid, markets want to hear from Christine Lagarde today . She is extremely famous. She is one of the most recognized faces of global finance. A lot of people dont really know her view on stimulus and at what point does more harm than good . Best thingably the for Financial Markets can get from the press conference is a more united governing council. It increases the credibility of the ecb and credibility is a key ingredient to guiding markets in the right direction. Some risktaking in markets. The most that markets except from the ecb. It seems ready to company markets. Francine eurodollar by the end of the year and then mid2020 . David it depends really on what the policy mix will be pure we expect the euro will appreciate in the next year. We see a target of 115. It is not the ecb which this to strike theay euro higher. Some pressuret away from the ecb and build more Interest Rate cuts which are negative. Fiscal policy comes into play, less room for the ecb and we see the euro higher. Francine david, thank you so much. David cole there. Do not miss our coverage. Conference, the news 1 30 p. M. London time could we have special coverage of the u. K. Elections right here on bloomberg tv. The action starts when the polls close at 10 00 p. M. London time. This is bloomberg. Francine u. K. Election and this is jeremy corbyn, the party head of the labour party voting today. We did see surgeon that are on. He voted also earlier. We cant say much more than that because we are in a blackout period. Voting will continue until 10 00 p. M. Today. Voting takes place in schools halls and we cannot talk about the polls or the leaders. What we will talk about is the exit poll that could move the currency, the pound. Especial show starting right here to neglect p. M. On bloomberg. Sort again in a second day trading trading on the real stock exchange. The stock climbing. The evaluation seeing the old giant leapfrog at microsoft to become the most valuable company on the planet. Lets get more now from matthew. We understood there wasnt enough people selling the stock which is why valuation was at 1. 8. What happened today . Today we have seen another big surge. We saw the stock go limit up today in contrast yesterday when there was a very thin liquidity. It pushed the stock up to the limit. Today we have seen much more dramatic volumes of around 340 million shares trading hand and the price move all over the place. Around 8 and the shares trading around 38 real. In terms of hitting the crown princes magic number, the share price needs to be over 37. 5 real. It is just over that now. We are seeing a lot of volume in the stock now. Francine matthew are we expecting a lot of volatility . Is it likely to stay at the 2 billion cap . Matthew what we are expecting to see from the saudi market is a lot of support coming from government bonds to these early days keep the trade the share price. What we will see over some time, once you have seen the price go up for a few days in the doubledigit range, that some of the early investors will start looking at taking some money off the table. This ipo has been entirely place with saudi investors or saudi corporates and they have all leveraged quite heavily in the aramco book. They will be looking to sell up and pay off those loans fairly soon. Francine matthew, thank you so much. Coming up, 20 days until 2020. We will look at the biggest risks. This is bloomberg. Francine lagarde kumutha lagarde, the ecb president. 2020 vision. It will do the same through next year. And voting is finally underway in the u. K. s third general election in five years we will bring you the results as they happen in our special coverage this evening. Good morning, good afternoon, good evening. This is bloomberg surveillance. I am Francine Lacqua in london. Lets check in on your european stock movers with dani burger. Dani one of the biggest movers to the downside this morning is metro, the wholesale in food supplier. Through fiscal year 2019, looking at the numbers, there is no real big surprise. Even the market is not taking it very well. It seems declining profits. This is after its plan to sell its china business, which metro says should be completed shortly. Now we are seeing prices fall, at one point following the most in two months. Balfour beatty a gainer this morning, up more than 4. 25 after a trading update. The Construction Company says its fullyear view is slightly ahead of what it previously saw. It also says its order books at the end of the year is in excess of 14 billion, and revenue should come in at 5 higher than last year. Percentore than 2. 5 gains there after Morgan Stanley gave out its top calls for 20. Europeanany is the Top Technology call. Its valuation looks reasonable, there is more upside to come from. Also it has a partnership with alibaba and ebay, which helps it out but he calls the stock the best in its class. Francine thank you so much, dani burger with the latest stock movers are now lets get to first word news. Good morning. The federal last night the fomc kept Interest Rates on hold , forecasting no changes through next years residential election. Chairman Jerome Powell saying current policy will remain appropriate unless the outlook changes. Another rate cut is looming in turkey. President erdogan saying Interest Rates will be moving to Single Digits in 2020. Most economists disagree with the view. Everyone in a Bloomberg Survey toward thatrch policy continuing. Ratesrland is keeping back at rock bottom. The central bank holding a policy rate and deposit rates at 7. 5 . At times denmark had the lowest benchmark in the world, meaning the National Bank experiment with negative rates is set to enter its fifth year. It shows no sign of ending. Rate by its benchmark half a percentage point, the social bank cutting back to 4. 5 . Any Analysts Expect policy markets to signal an end to the easing cycle. That left the door open for additional cuts. In more than 120 countries. I am leighann gerrans. This is bloomberg. Francine there are just 20 days until 2020. With the fed signaling u. S. Rates are likely to stay unchanged for that next year. How should investors be positioned heading into the final days of 2019. Howard, always great to have you on the program. Guess are the fed, i there are more Central Banks in the world than in 2019 and 2018 and you are trying to figure out 2020happens, go back to with the risk in the fed. The head of the liberal democrats just finished building, getting into the car. We now have all of the major party heads having voted, and we will see how the day pans out. We have exit polls at 10 00 p. M. Howard come we cannot, under no circumstance, duck about the talk about the do you worry that there is anything at stake apart from the fed . Fedrd know, i think the has more visibility than all of us. They have the experience, the knowledge within their organization, and they will do what is necessary to keep the American Economy in the right direction. I know you said that they are bankers to the world, but their duty is to look after inflation and unemployment in the u. S. They are know confident that the u. S. Economy is still on a growth path. Francine is there a danger that there is too much inflation all of a sudden . Howard i think we would all love a bit of inflation. I think everybody is scared that inflation might signify a change in the economic outlook, in economic confidence. I dont think that is likely to happen anytime soon. Francine how do you look at u. S. China trade . If we have extra tariffs on december 15, on sunday, what do you what does that mean for where you see in value in the markets . Howard this is going to be a medium to longterm problem. The americans see china as an adversary. Americanerstand from policy officials, they are not going to away to go away anytime soon. We may seek progress in 2020 ahead of the american election, maybe two steps back again in 2021. So i think the markets have gotten used to that element of uncertainty and factored in. Francine i also want to talk about the delisting from the london stock exchange. You are so comfortable that they were undervalued and thats why they made the decision . Howard i think every business entrepreneur and owner things his stocks are undervalued. Put that to one side. For us, 70 of the company is owned by management. The stock is highly liquid. We dont need to raise capital. W