That ubers expiration has taken place, they are trying to improve the Operational Performance and have been given profitability. You provide all of these things up inis is a good set terms of investors new point on the stock. You look at the Shareholder Base right now, you do not see a lot of longterm shareholders. Softbank and encz mark, benchmark is unlikely to be a longterm shareholder, they were an early investor. I think that these are all is on theand the onus company to execute and show Operational Performance. Guy on the positive and negative side of the lot of the ledger, what did kalanick bring . Mandeep he really started this company and was aggressive in terms of taking the uber brand global, and that is what helped uber expand so aggressively both on the ridesharing and the ancillary businesses, but i think they are at a point where the brand is known to everybody. Improving thet reputation. The cultural damage that took place when travis was running the Company Needs to get fixed. The issues that came to the fore after he left that company he left the company were obvious. I think if uber brings in more independent directors, that could help change the sentiment around the governance and the fact that these guys are pursuing an independent strategy. That needs to be communicated and i think this is a positive step. Guy i am sitting in london where uber has launched lost its license. Are you surprised that it has taken this long to change the culture as a company . Withep that is the thing a Founder Led Company, and you are a tech startup, it takes a wild. You see this time and again. A lot of times the cofounders are not willing to leave the company. In this case, even though travis was removed a couple of years back, it takes a wild. London is the great example. The company had its challenges with the regulators and never had a good rapport dealing with the regulators. For a company like uber, trust and reputation are paramount. That is something that both the consumers and the investors care about, because that is what drives the brand, and sustainability of the long term. Guy the other big company that made headlines is wework. Is there a line i can draw with wework and uber . Mandeep wework was another example of a Founder Led Company being aggressive with the accounting and the longterm leases that they signed. The culture of uber was not conducive to garnering a good andtation both internally externally. They were super aggressive as well. What it tells you is that the cofounder Led Companies need to have a handoff at some point. In terms of bringing in expert management, it is something that google did in its early days, bringing a guy like eric smith. Day,nk at the end of the the cofounder Led Companies can only go so far in terms of culture Corporate Governance and culture and the handoff needs to happen sooner rather than later. Guy i really appreciate it. Thanks you for joining us. To us turn our attention what will happen next year and what you should be doing with your money. Yu isey geoffrey joining us. Optimistic about 2020 . Geoffrey a lot of the potential headwinds have been clear. What i would like to see is tailwinds. And theolitical issues election the minor issue of an election in the u. S. We look forward to that, and we could have been entering this year in a worst state. A few things have been quasi resolved. Pessimistic t less pessimistic than optimistic. We still do not know what is in guy the trade deal, we do not know what it is what is in the deal. Will beit looks like it a tough negotiation to deliver a final trade deal. How much has been fixed . Geoffrey nothing structurally, but the skinny deal everywhere, that is probably enough to get some confidence back or remove lack of confidence, and maybe abolish a lot of the recession talk we had earlier and like 10year yeilds in the u. S. Were poised to go to 1 . That, for the time being, should be less of a worry. But it buys us breathing space for the more important governments to take a look at what they are doing. Guy why would Companies Invest next year . Geoffrey companies would have to see what governments are up with. They know that household balance position, in better but household needs households needs a cake. External circuit breaker. Guy will we get it . Geoffrey selectively. I think there will be a northern strategy announced and i think there will be a vote on the deadline in the u. S. It will be promising everything they can. China can do fiscal stimulus whenever they want, but in moderation. The question is, europe. We would love to see globally coordinated fiscal expansion. I think it is a bit too much to ask for at this point. Guy what drives risk assets next year . Geoffrey the discounts from the uncertainty. Guy does that not take us to where we are now . Geoffrey that is a good starting point, but i am waiting for the cash to be deployed. There is been some weight loss in the emerging markets and on the debt side of the equities, i think more money has to get into the u. S. For safe and study trade. Europe is our biggest underweight, but those are the areas that are good as well. why would i put work money to work in emerging markets even though the dollar continues to be strong and there is no obvious catalyst to take it lower. Geoffrey in terms of financial conditions, i think the dollar is strong coming from a position of strength. With the pickup on mobile numbers or lack of deterioration, they can start to come out and say what we are looking at is the beginning of a multiyear cycle. That does wonders for financial conditions in emerging markets and allows the trade to head back in. You have the central bank anchoring expectations. You have balance payments possessions in emerging markets. Crucially, it is the household. We have had good labor markets for the past two years or show or so, so let us unleash that spending. Sound of things, you do not anticipate that Monetary Policy will not provide the same expanse as next year. Reassuredmarkets are that the fed will be approaching certainly and not when can we hike rates when we can. Hairy last year. But this is what investors are reassured by. The demand catalyst has to come from somewhere. It will be the fiscal side in the households. Guy guy why will trade not be a headwind . Phase two are going is going to be difficult and i do not know why the president will use a different tool to the one he has been using thus far, which is tariffs. Geoffrey free trade not to be a headwind, that is risking being reduced and people may be more comfortable reducing that underweight. But, at the same time, i agree with you. A longerterm deal, that is not happening and i do not know if it will happen in the next five years. Deglobalization will be a theme. There is an opportunity. As countries with good fiscal buffers both on the government sectord good private resources, they will look at selfreliance. You will hear that phrase more and more so. Selfreliance on a domestic level, i think that may help certain sectors, but from a global level, that is productivity bedford productivity and harmonization and will hurt in the long term. Guy the head of the u. K. Investment office. He will stick around. Let us check at the markets to find out what is going on, if anything. Kailey not a lot happening in the u. S. , but we have one record up, that is the nasdaq another alltime high. It will be interesting to see whether we see a closing hi or whether it stays similar to what the s p 500 and the dow are doing. Onwait for an early close this Christmas Eve, holiday shortened day, oil popping up. 08. It could be bullish supporting crude. Have an trade war, we interesting dynamic. We go into the terminal and let us look at and the Energy Sector there. Over that time, the trade war has not been kind either even though the s p has climbed. Lou is oil and white is the Energy Sector. We see a 1. 18 crude oil doing well. The Energy Sector are doing as well. The Energy Sector in a bear market over the choice the course of the trade war, crude oil down over the course of the year. Metalsother commodity, miners, shares popping over 6. 4 while another company is up 2. 6 . What makes this unusual, wesco is the acquirer. They confirmed a 90 per share bid to top a private did made in october. Bid made in october. While that might not be popping so much, on the year it is up more than 60 as investors believe the company will be bought out in 2020. Guy nice rate of return. Thank you indeed. Let us turn our attention back to hong kong. As i said, there was a situation that developed outside of the peninsula hotel. 12 13, and things have comes down slightly. Calmed down slightly. We canucer told me that see people Walking Around in christmas hats. It looks like maybe some of the right police are imparting. The situation looks a lot calmer than it did earlier on. We did see some battles being fought in some shopping areas. We will monitor the situation. The story of hong kong has been of rapid flareups and some of these confrontations between protesters and the police. It really depends on what will happen at an individual moment. We saw somebody rest arrested outside the peninsula hotel. We will continue to monitor the situation. This is bloomberg. Check in on let us check in on the first word news. The President Trump called u. S. Military to share greetings ahead of the u. S. Holiday. He spoke with Service Members of all five branches from his private club in florida where he is on a more than two week vacation. He was asked what he bought paying his wife, a beautiful acquired a beautiful card but was working on a Christmas Present. The pentagon is weighing proposals for a major reduction of American Forces in west africa. Mark esper may even consider a complete withdrawal from the region. It is said to be the defense departments first phase of global deployment reviews that could reshuffle thousands of american troops around the world. Not a mere putin says his country Vladimir Putin says his country is the only one in the world with hypersonic weapons. President putin says the first unit with a hypersonic vehicle is set to go on duty this month. Air launched missiles are already available. Stir putin says until now russia has been playing catchup with the United States. As guy was telling us, protest across hong kong on Christmas Eve. Antigovernment demonstrators took to the streets and Shopping Centers to demand greater democracy. Officers fired on protesters in a mall. They used pepper spray pepper spray on some involved and made several arrests. A largescale protest is being planned for new years day. 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. I am Mark Crumpton, this is bloomberg. Guy thank you very much. Let us talk about what the u. K. Has in store for the markets in 2020. Post the election, we saw the pound goes up, and it has faded. Equity assets are looking rosier. Still with us, geoffrey yu. Borise priced in a Johnson Administration or priced out a Jeremy Corbyn administration . Geoffrey a little bit of both and slightly more to the latter. I think those looking for upside in sterling, they would need the dollar angle to play out. Figure cannot seem to out what a deal looks like, what a phase one deal. Guy the government needs to figure out what a phase one deal looks like. Geoffrey it has to be unified and what it wants. Will it be a framework agreement, is it something more comprehensive, something somewhere in between, or the first part of a process . Will that be using different parts of the company as well. Until we get there and know what the end destination is, it is a bit early to define level of sterling should it be. Guy we are at the point where teople seems ready to disinves in the u. K. Clarity do we need to invest . Does it matter what kind of a deal, is it just that we get any kind of deal . If clarity was required than knowledge of the deal . Geoffrey certainty is required, if we are heading to wto terms, that is not ideal, but is better guy it than the uncertainty. A less than optimal certainty is better than no certainty. I think the fact that we have gone through this no deal or cliff edge planning for the past yearandahalf. Even if the next year faces wto atms, it is not ideal and least we know where we stand. About the need for the u. K. To deliver fiscal year. Geoffrey i think the prime during thew knew campaign, and given the new seats in the north that he was given, he was expecting a rejuvenation. They are expecting to see signs. I think that is a key part of the equation, but we need to change the narrative. We know where the policy is for continuity, and we have regulations that will focus on the financial side, so let us see on the does the connection front what a Strong Majority can be delivered. Guy he was a fictional character out of a program called yes minister. And one of my professors say if you want to understand british politics, that is what you watch. Let us talk about the bank of england. What do you expect . Are you talking about continuity . His understanding of the regulatory side, do you think it will provide the u. K. With more flexibility when it comes with the pushing Financial Services sector to expand its wings and become a little bit more geoffrey global . A little more global . Geoffrey hopefully. Sectorancial Services Needs to figure out what it will look like. Where is the sweet spot for regulation . The u. K. Has a regular a reputation for more dynamic weulation, especially when talk about singapore. There is a sense that by appointing someone with regulatory experience, it is sending a message that they will probably stay where they are with minor changes, but in a low rate environment you have to be cautious. Guy he will stick around. Head of the u. K. Investment offices, he will stay with us. Plenty more to come. This is bloomberg. Biggeste for the business stories in the news. But us kick things off with emirates airline. Its president is retiring in june according to a spokesperson. Emirates is the worlds biggest carrier by international traffic. Tim cook has been at the helm since 2003. The spokeswoman did not give details on the plan. The u. S. Securities and exchange overssion is putting bmw under the microscope. The agency wants to take a look at the reporting practices. Bmw says it will cooperate with the investigation. That is your business flash. To theiet when it comes financial markets. We have lock light volume, europe is closed. This is bloomberg. Guy from london, im guy johnson. This is bloomberg markets. Ubsl with us is geoffrey yu Wealth Management head of u. K. Office. What are the tail risks . Geoffrey what effects will be smaller stick scale, trade issues. China playing the peacemaker with south korea. Can you even imagine a scenario like that five years ago . Here we are. China has a vested interest in making sure the supply change the supply chains stay intact. Good weing normalized have just priced out some of the headwinds on that. As always, expect the unexpected. Every supply side comes out with the top 10 risks and i would say seven out of the 10 are going to be the same risks which means they are in the market and the price by definition. There one of the known they are geoffrey one of the known unknowns. If you look back what you said the u. K. Would have an election producing a conservative majority of 80 . Even if you would said by the end of the decade i do not think anyone wouldve believed you. Guy in terms of where you are looking, which markets look the most vulnerable . If you ask the question 10 times, the answer you will get a times is credit. Geoffrey i think everyone is focusing on that. As well documented. Markets are looking at things they were worried about but no longer as worried. Take emergingmarket corporate debt. Have been its demise somewhat exaggerated already. Also sovereign debt. They are bond yields, not going to stay there forever. Im not talking about the interest of revisiting the monetary remark. The cash ratios are high. Bethat is starting to deployed, youre going to see rotation out. Secondly, we talked about fiscal spending. What about the Pension Funds . What about deregulation, which allows these highly regulated investment pools to going to risk. Guy lets talk about that. Glut is a huge savings that exists around the world. It is a global phenomenon. Situation where fundamentals and asset places are completely divorced from each other. Geoffrey it is possible. If demographics or global spend you areoming down means not going to get the same level of investment, no matter how much the government push. That japan story, we have to realize asset focused investment which normally goes to generate expansion is not going to happen. That savings glut is going to stay where you have asset prices ofone other big pool liquidity is private equity. Will2. 5 trillion they do what they do conventionally. At the same time are they going to be looking for opportunity . Are they going to take Health Companies going private to escape the scrutiny of markets, is that going to start price discovery . What these pools of liquidity are going to do with different agendas and different mandates. Guy how deep are these liquidity pools . They are clearly wide. It is like looking a massive lake. You know it is big but you do not know how deep it is. Geoffrey often you find out how deep it is afterthefact. Guy is this a risk. Is there a Liquidity Risk as we look forward to try to understand where the risks are coming from, is there Liquidity Risk . Geoffrey there is an upside risk or Downside Risk. It could s