Neede consensus shows no for a rate move next year, either. Erand the Christine Lagarde gets ready at the ecb. The worlds biggest ipo opens with a bang. Is or isnt saudi aramco worth 2 trillion7 some major banks announced changes and cutbacks. They have to meet their efficiency targets they set. Rosalind the eu unveils a plan to go green that has some businesses seeing red. You see there is pushback. Taxation does nothing for the environment. Rosalind its all straight ahead on bloomberg best. Rosalind hello and welcome. Im Rosalind Chin and this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. Lets start with the day by day look at the top headlines. Another week began without a trade deal between the u. S. And china, and fresh data released on the weekend showed the trade balance shifting between the two superpowers. Chinas exports unexpectedly fell last month as Global Demand continues to wane and a trade deal remains tantalizingly out of reach. What happens with trade data when it comes to a trade deal . It is a reminder how punishing these tariffs from the u. S. Have been on chinas manufacturing sector. We just had that highlighted again with the trade sector over the weekend, so exports overall from china falling 1. 1 percent. To the u. S. , exports were down 23 . That was a 12th straight monthly decline. The expectation is that retailers and companies will be loading up on goods from china ahead of the Christmas Shopping season, but that does not really seem to have played out. Bloomberg reporting u. S. Tariffs that take effect on sunday will be delayed according to chinese officials. Meantime, House Democrats said they will back the usmca trade deal at a vote next week. Theres no question this trade agreement is much better than nafta. It is a remarkable day in what is a highly partisan washington when we see a bipartisan agreement on a trade deal. Trade politics are always tough, and democrats today backing donald trump, although insisting they really fixed the trade agreement that they called fundamentally flawed when trump brought it to them. The second piece, though, is the more market moving news that we have seen, which is the chinese tariffs. We do know the president , we are told, has not yet made a decision on this. He, for a long time now, has been looking for a way out of these tariffs. He has a lot of advisors around him and a lot of people in the Business Community warning these will be a huge disruption for the u. S. Economy going into an election year. House democrats unveiling two articles of impeachment against President Trump. One on the abuse of power, the other obstruction of congress. Walk us through what happens and how quickly this could all unfold. Very quickly. The next step would be what is called a markup either tomorrow or starting thursday where the Judiciary Committee members would actually write up the forms of these articles that would go to the house floor for a vote. It goes to the floor next week perhaps as early as tuesday for a historic vote. Saudi aramco jumped 10 and the daily limit in its trading debut in riyadh. Shares advanced, giving the company a market value of 1. 8 trillion. What were the highlights today7 . We reached 35. 2 saudi currency a share. Its a big jump, getting us closer to arguably one of the most controversial topics of the last year is or isnt saudi aramco worth 2 trillion . The government has tried very hard to get it in the right direction, so part of that includes just not offering as many shares as originally thought. So just 1. 5 of the company is being offered. There is still potential for upside. Goldman sachs has an option for 450 million shares that they can exercise in the next 30 days, and that is going to be absolutely critical, francine. We are awaiting the final fed decision of 2019. The Central Banks fomc is expected to keep its Interest Rate unchanged after three straight cuts this year. As boring as forecast, no change in rates today. The dot plot shows no need for a rate move next year as they stay on hold through the 2020 election. Nobody is calling for a rate cut next year and only 4 of 17 see the need for any rate increase. Of course if developments emerge that causes a material reassessment of our outlook, we would respond accordingly. Policy is not on a preset course. This is a fed that is increasingly confident that three cuts was the magic number. They are going to sit back. The hurdles are high for additional action, even though the dot plot shows the next move will be a rate hike. In fact, at the current time, the hurdle for a hike is actually higher than additional easing. So what the fed told us today was we will see you on inauguration day. The ecb leaving rates and policy unchanged. Christine lagardes first meeting as the head of the central bank, delivering a positive message about the euro zones economic slowdown. She was optimistic. She said there are still risks to the downside, but they have lessened. The uncertainty, she said, has loosened. She seemed to be more optimistic about her Inflation Expectations as well, even if it is not still at the target she wants to hit. Also, she talked a lot about the review they are going to do, this strategic review. She said its about time. Theyve had 16 years since the last one. She knows they were very busy previously, but now is the time to do it. She says it will not take that long. She wants to start in january at some point and be done by the end of 2020. The president tweeting a little bit earlier on the following, basically indicating that we have a very big deal on the way, getting very close to a big deal with china. They want it, and interestingly enough, so do we, and it is that last bit that i think is quite important. Stocks moving on the back of that. It sounds like we have a deal. It does, and markets have been positioned for delay in tariffs that are due to take effect on sunday, but when trump tweeted about a deal, that sent a signal that the most bullish scenario for investors might play out. By the looks of things, any escalation in the trade war will be put on hold and a deal will be announced. We have the market closing, the s p and nasdaq closing at new alltime highs on the hope that there will be resolution to a phase one trade deal. U. S. Negotiators have reached the terms of a phase one trade deal with china. That agreement awaiting approval from President Trump himself. We know President Trump signed off on the deal. We know they have an agreement. We are still waiting for the deal to be codified into legal text. We are still waiting for the details. Hugely significant that President Trump has signed off. December 15 tariffs have been held back, at least for now. It is official, the conservative party enjoys a majority in a historic u. K. Election. Boris johnsons victory will allow him to carry out his main promise to get brexit done. The pound has jumped the most since 2017, also hit its highest since may 2018 against the dollar. With this mandate and majority, we will at last be able to do what . Get brexit done. What a night. British politics upended in this election. We got a conservative majority, the likes of which we have not seen since the heyday of margaret thatcher. A disastrous night for Jeremy Corbyns labour party. He announced he will be stepping down. Mr. Johnson now the most powerful politician and the most powerful conservative leader, i should say, for a generation. Of course he will get his brexit deal done by the end of january. He has to get it done, then he has time to negotiate, the arrangements, the practicalities being outside the eu. If you get to the end of the deal, he has only got to crash out and we are back to no deal brexit. How will Prime Minister johnson how will his new government he greeted by brussels in the coming weeks . The sense here is really relief now that he finally has that big majority. He promised he was going to deliver, and the europeans are expecting that he does deliver. This is not about boris johnson. This is not about europeans magically liking boris johnson. This is purely pragmatic reasons. They feel that with him they are going to get that orderly brexit and they are going to avoid chaos. Europeans, of course, do not want to be undercut by a u. K. That does not play by brussels rules. Chinese officials saying we have reached an agreement with the united states. The sides agreed to complete the last stages of the phase one deal. The sides will work out the details. The chinese said the u. S. Will remove some tariffs on chinese goods in phases. This is really the first time we have seen President Trump, who has called himself tariff man, roll back any tariffs, and that is a pretty big confidencebuilding measure here. The big problem with this agreement, and we are already seeing folks point to it, including chuck schumer, the Senate Minority leader, and that is this does not address some of the big longstanding american complaints about the chinese economy, and that is things like industrial subsidies. President trump says the tariffs that are still in place will give him the leverage for phase two of the negotiations, but we do not know when that phase two is going to start and we have a lot of folks telling us they do not expect phase two to conclude any time before the 2020 elections. Rosalind still ahead as we review the week on bloomberg best, deutsche banks ceo says his firm is prepared to deal with Interest Rates that stay lower for longer. It is mitigating measures. And it shows us there is potential to offset. Rosalind plus, the wework cleanup continues. Goldman sachs is now involved. Next, more of the weeks top headlines. The report on mayhem in the repo market. The findings are alarming and so is the timing. The fact this is coming in december is going to make people a little more nervous. Rosalind this is bloomberg. Rosalind this is bloomberg best. I am Rosalind Chin. Lets continue our global tour of the weeks top stories in europe, where the new head of the European Commission rolled out an ambitious plan to combat the climate crisis. Ursula von der leyen will present her green deal in brussels today, including a timeline for various laws to be put forward between now and the end of her term. What do we expect today . This could potentially be huge. We are talking about a green deal that could change the way Many Industries in europe operate. We know she has said said she wants to make europe climate neutral by 2050. The goal is ambitious. The deadline is tight. It could change many aspects of the european economy, the way carbon is priced, the way some of the taxation is being implemented, and she has also promised one trillion euros to pay for this. She is going to need Public Investment and also companies, European Companies to play along , and that is really the question at this point. Already there is pushback from a number of industries. This is not going to affect everyone the same way, and you see the European Commission saying this is something they strongly believe in and they are going to go ahead. Hong kong, protesters calling for a general strike after the biggest prodemocracy march in months on sunday. 800,000 people is what the organizers say. This went from Victoria Park all the way here to the Central District and it was very much like a deja vu where families showed up as well. And perhaps they were prompted to come out after police for the first time approved this rally , for the First Time Since august. There were some nerves headed into this event, but overall, pretty calm. Chinas consumer inflation accelerated to a sevenyear high last month, fueled by a 110 year on year surge in pork prices. Core inflation, which excludes food and energy, came in at 1. 4 . Meanwhile, factory gate prices extended their run of declines, complicating the pbocs efforts to support the economy. Walk us through the divergence that we continue to see. Manufacturing deflation versus food price inflation. 4. 5 for november, inflation well above the forecast. Its the highest number, as you said, since 2012. The flipside, the producer prices, they dropped 1. 4 for the fifth straight month. So the question is does this central bank look through this, looking at core inflation, which you say remains relatively stable once you strip out food and energy prices, or do they bind their hands and make it much more difficult to enact aggressive stimulus should the economy continue to slow . Saudi arabia released its latest budget. What did we learn about spending as well as revenue increases . The kingdom is embarking on three years worth of spending cuts, which is a bit of a uturn. They are confident enough they can start relying on the private sector to pick up the slack. The folks at Bloomberg Intelligence and our chief economist for the region has crunched the numbers, and he says this budget is a little more realistic down from 85 a barrel from the budget basis assumption to about 61 a barrel. Just above that key mark going into 2020. The bank for International Settlements says september s mayhem in the u. S. Repo market was not just a temporary hiccup. We know that repo is more of an issue in the calendar year end when there is windowdressing around Balance Sheets and therefore more demand for cash, and that means people are already sensitive, worried about what might be the squeeze, and suddenly we get this report saying that there is a structural problem and that maybe the temporary hiccup we saw in september will not be fully resolved with the feds recent operations in the repo market. One of the conclusions of the report is that people were less familiar about managing these transactions, the banks were less well staffed and experienced for handling these type of transactions. Also some views from the banks themselves. Jp morgans ceo, jamie dimon, said it is actually regulations that prevented his bank from moving in to provide more liquidity when we did have problems in september. There are a lot of issues contributing to this. I think the report is coming out, even though it was a report that could have come out any time of year, it wasnt necessarily time sensitive. The fact it is coming out at the start of december is going to make people a little more nervous. In turkey, a surprise from the central bank. It cut its Interest Rate when policymakers were emboldened by the stability of the lira. Plus, they were egged on by turkeys president erdogans calls for more aggressive easing. The lira has enjoyed the past six months. Erdogan has sacked his Central Bank Governor in early july. Since then, the new one has overseen a whopping 1200 basis points of rate cuts. The Central Banks wording did suggest that it will slow down the pace of easing now, and the real base rate, taking into account inflation, is now down to 1. 4 , so if you look at that, it does not seem as if the central bank has that much more room to cut rates. Unless it can pull down inflation. Another central bank chief has unleashed a staunch defense of negative Interest Rates. The president of the Swiss National bank insisted the controversial policy is the only way to keep the franc in check and help the economy. The current monetary foundations are adequate, so we have no reason to change Monetary Policy. If you look at our inflation forecast, it is very low. Almost zero. We have a gross rate that is roughly 1 . Next year, maybe 1. 5 to 2 , so we have no reason to change this Monetary Policy. Israel heading to its third election in less than a year. Thats after Prime Minister netanyahu and his main opponent benny gantz failed to form a majority. Polls signal another election might not resolve the crisis. What is at the heart of this political impasse . Well, at the heart is the Prime Minister himself and the indictment that he is under now. So the Opposition Party is basically saying they would like to go into coalition with the ruling likud party. And netanyahu is saying we want to do this coalition, but the issue is the opposition leader, gantz, is saying not as long as netanyahu is under indictment. They dont want to do the deal then. And at the same time, the party is saying, basically sticking to netanyahu as their leader. Rosalind you are watching bloomberg best. I am Rosalind Chin. Deutsche bank told shareholders this week its latest Restructuring Plan is on track. The german lender said fixed income trading is up from last year. It also announced the ecb has reduced its capital burden for next year. The ceo told bloomberg the bank has acted decisively to reduce the impact of negative Interest Rates. We took swift action in terms of passing on negative rates to our clients, particularly on the corporate side, but also the High Net Worth wealth management. We see from the first five months in this bank how much potential is there on the revenue side, but also on the cost side. All in all, looking down the road for the next three years, that gives us, we are hitting all the goals. The comfort that we can achieve despite these challenges, our 8 return on equity in 2022, so therefore we are confident that we can achieve t