Welcome. Lets get straight to some of the big market moves. First up, as we said to you in he headlines, jacob does a u turn and so does the rand. He appointed his second finance minister in four days. Bringing him back so what we saw was the rand jump almost 6. 5 . That is the biggest interday gain since october 2008 and his goes back to last week when fitch had downgraded the countrys debt, really having quite a dramatic impact in terms of the rand. Its about commodities and currency as we go into this fed week. This is west texas intermediate, sifpks to the lowest level in seven years, iran pledging more oil for the market. This is the performance over the past month. I can tell you 11 of this decline was implemented last week by the market. There is absolutely no chance that iran will decrease the plan in shipments. Traders, data, this is how we benchmark how negative the traders are there, the most bear issue ever. Ets get the bloomberg first trade. The latest data out of china hows fresh evidence of stabilization. Bloombergs monthly china g. D. P. Tracker rose to a grows pace for november, the best reading since june. Industrial production and retail sales and figures all exceeded forecasts. The u. N. Has fallen to a fouryear low after the peoples bank of china said the currency shouldnt be measured alone. Its a sign that the central bank will allow further decline. There has been a rand rebound after jacob zuma named his second finance minister in four days. The u turn follows market turmoil that sent the rand to record lows. The restructuring of the Investment Bank is very well advanced with the business scene returning to profit within four years. Ross spoke to man us in an exclusive interview. The work will primarily be finished by the end of this year. It will pretty much be done by the end of this year, which is a very, very good outcome. Manus, that was the c. E. O. There. Ok, that was images, of course, of l even pen who didnt manage to take any power at the election polls. Were going to discuss whats going on in france, what does t mean tore sarkozy a little bit later here. In the meantime, lets give you some of the breaking headlines. We talked about a range of issues. These are some of the top lines on the bloomberg terminal today. The big conduct issue he hopes are settled by the end of 2016. He is able to slow the asset sales for better value in 2016. The message was, look, were ahead on target. Were doing better than we thought. Im not going to be under the same pressure next year as i was. I can afford to take my time. The Investment Bank will reflect strategic strength. This about choosing the areas of the Investment Bank, the front end of the restructuring will be done and completed by the end of this year, still targeting a dividend of 2017. Lots more to come from ross on that exclusive bloomberg interview. What a start to fed week. Standing by in asia for us. Take us through the markets, it doesnt bode well for the rest of the week, does it . Manus, rtainly doesnt, in the asian region, the index is down 1. 5 , the biggest drop since late september. Can see theyre reselling across the board except for this bright spot in china, getting quite a big runup up by over 1 . And we have had that data over the weekend showing a little bit of signs of stabilization. Analysts bullish on the outlook for production and copper prices next year. Perhaps that is the reason behind it. Perhaps its another one of those anomalies where we see the shanghai market rise in the last 90 minutes or so of trade. There has been a lot of selling. In japan, down by almost 2 . This was despite encouraging data out today. The survey Shows Confidence for manufacturers and nonmanufacturers, pretty positive, although they did have a bit of a weaker outlook for the next three months. The kospi down by over 1 and big falls coming through are the Retail Stocks in australia following on from that route we saw in Global Equities on friday seeing some big falls from the energy players. Other stocks we are watching in the region, a big drop coming through from a lot of the shipping companies. This is on news that the Chinese Government has a planned merger in that space. In hong kong looking pretty good on a share placement and then this is the state of play of Energy Producers in australia closed over an hour ago, down 8 , sun corp down and pretty much down, down, down, anus and anna. Manus thank you very much. Pretty torturous start to the fed week. It has cleared the potential hurdle for higher borrowing costs. It almost feels like were ringing a bell in terms of the ed week beginning to discuss it. You have your fed countdown clock version, as if anyone in the world didnt need to know the number of days, hours, and minutes on this seminal decision. Lets talk about china. Good data over the weekend, a third of the respondents say 6. 5 is not attainable. What is your interpretation of where we are at the moment, the yuan at the lowest level since 2011, give me your take . On the currency, clearly we had some news that it was going to be targeted against the basket as opposed to dollar. That will lead the way, the dollar is strong for devalueating compared to the dollar. We have to remember that the effect to the dollar is not what they are targeting and instead its more of a reflection of its trade. I think thats very good. The reason venture people see this as is china devaluing again like this summer, when it was just add justing to the inclusion creating a bit of flexibility in the system. I think thats one thing to remember as we go forward. In terms of the retail sales, yes, they were good in line with expectations and we had that big day to remember with the singles day where we had the jump of 50 . Thats really important. 60 of chinese economy now is consumption, so those moves are important. If you look at production, if you look at success of investment, it is still a slowing path as the economy is rebalancing more towards a service economy. Manus i like what you said, oh, my god, are the chinese off on a devaluation train, which sort of things us very nicely, janet yellen reflects what was happening in china in the third quarter. The chinese need a gradual hiking path from the Federal Reserve. Does this symbiotic relationship between the two. A lovely terminal piece this morning, economists question the feds gradual rate hike path. This is going to be important in terms of what guidance yellen gives the market in terms of the gradual neighbor of what happens. 64 of commifments surveyed say the quarterly forecasts that we get will have a slower path. Where do you see us in terms of rates at the end . Virginia i think slow path is definitely, its going to take time. Clearly she gave some guidance over the next two years. They always go back to data dependent. As we know, things in the u. S. Have been better than in the rest of the world, but still, given the stage of the cycles, this elongated cycle that we have, i could argue we can expect there might be. There is that long term business cycle. There is the desire to normalize before next election, efore possibly a softer cycle, but i think the path for rate increases is going to be really slow and really importantly is what do we do with the feds balance sheet. I think thats really important to the investor. Man us we got a lot to get crunched in. We got commodities and credit. I want to get your take, third avenue management has closed the doors, right. Im seeing various tweets, meltdown just beginning in the junk bond market, blackrock hitting 2009 lows. 12 of the junk market is energy. Do you see any warning flags from third avenue management, is it a rerun of 2007, 2008, it was about mortgagerelated debt. Here were looking down the pipe at energy and materials, are you worried . Virginie worried is not the term. Its a little crack that we must absolutely Pay Attention to and see if we have other situation across the financial system. At this point its just something to watch. But clearly rising rates, Commodity Companies with where Commodity Prices are, some of them might be quite highly leveraged, this is something that is very important to watch very carefully. Manus, i love your face a little bit of a crack. Youre with me the next 45 minutes. Sit back and have a coffee, settle in for the long haul. At the height of the financial crisis, r. B. S. Is still on the road to recovery. I spoke exclusively to c. E. O. Ross mcewan, he talked about asset sales in 2016. Ross because we had such a good start in the last two years and taken so many assets off the books and recreated our Capital Position so quickly, we live in a position where we can go a little bit slower next year if we get better value for the assets we still got to sell. We got a very experienced team. Were still selling assets. In the last two weeks, we have been selling russian assets. We have been selling a lot of assets around the world as we are coming out of countries and we try to sell the business, if not, we sell the assets and try to run them down. We have done an amazing job. If the market slows down because of a lot of others out there, our Capital Position is such that we can go slower. Its not my objective to go slower. My objective is try to finish the job by the end of next year. If we do need to, we have a Capital Position now that llows us to be more patient. Manus that was ross mcewan, c. E. O. At r. B. S. , you can watch that exclusive conversation thursday night 7 00 london time. So we get to the bloomberg december economic survey, this is your day ahead. Lets have a look at it. 7 30, European Union finance ministers meet to discuss the blocs commitments to combating terrorism. That starts at 9 00 a. M. U. K. Time. German chancellor Angela Merkels party opens a twoday national convention. Merkel will give the keynote speech. Up next, flipflopping in south africa, the second finance minister named in four days following market turmoil. Well bring you the latest from johannesburg. Nus 6 17 in london, 7 17 in frankfurt. The c. E. O. Of r. B. S. Says the restructuring of the Investment Bank business is very well advanced and return to profit in four years. In an exclusive interview, he also spoke about the thorny issue of bankers pay. Ross you need the right people in the right jobs and pay them enough to really do the job. What is important in our business is to build a culture of this organization that it is not about the money, its about doing the right thing. Hsbc has held talks with canadian officials about relocating its headquarters from london to toronto, that is according to the times newspapers. The discussions were held in october with senior figures including the chairman. After that, the bank said it would delay its move to any haurs move until early next year. Shares plunked as they resumed trading in hong kong today despite the return of the chairman. It was confirmed that he had been assisting with an investigation reportedly into former shanghai vice mayor. Alibaba has bought the leading english newspaper. The 266 million deal includes the South China Morning Post and local editions of esquire, elle and other magazines. They are following in the footsteps of amazons jeff basel who bought the Washington Post two years ago. For more on these stories, head to the bloomberg terminal and bloomberg. Com. Manus. Manus the rand has surged as i was telling you at the start of the show. Jacob zuma named his second finance minister in four days. The currency hit record lows relative ointed a unknown. What a u turn. A very familiar figure and should restore some confidence, is that a fair take . Good morning, manus, youre right, thats a fair take. He is a familiar face in the markets. He gained the markets confidence by being the finance minister for five years up until may 2014. He steered the South African economy through the first recession in 17 years and fended off pressure from labor unions to increase spending in government. He has definitely been a figure that inspired confidence from the market and also inhibited any inscrupulous spending in manus. Ent, manus and tell me this, this is about restoring confidence. We have seen quite a magnificent rally so to speak in the rand. The credit agencies are deeply concerned. Yes, i mean, we have seen the rand really rally, last night after the announcement was made itself. This morning its beginning to strengthen even further. Thats just the beginning. The market is definitely going to need more reassurances. Its good news, but still a very confusing time in south africa. What is needed right now is stability and clarification in terms of what lies ahead. President zuma is trying somewhat to restore confidence in the markets by reappointing a man that has been known by the market for five years in having steered the economy quite well through the recession. So there is going to be new reassurances that need to be made, but so far it seems like the markets are accepting the news quite perfectly. Back to you. Manus thank you very much ollowing the u turn from jacob zuma. This is instability, isnt it . Its very difficult. It should go one step away from being a South African problem, its a commodities issue as well. With low commodities, a lot of countries have been relying on commodities will find it harder to find growth. You also have potentially a stronger dollar that generally puts some pressure on emerging markets. If you have a little bit of political instability or events not anticipated by the market, you see the reaction quite quickly. I think this is very important to keep in mind when you think about emerging markets for the next 12 to 17 months. Manus thank you very much. You are going to be with me for a little bit longer. Lets turn our attention to france, the National Front in france failed to win a single region in the runoff. It was beaten by the republicans and the socialists. He results for now, le pen hopes to become frances next president seems a little bit shaken. What does it mean for the National Front, what does it mean for the next president ial elections . This is personal blow because to lead in the first round, her party, the National Front has failed to win any single region in france. The Republican Party of former president Nicholas Sarkozy including the biggest of all, the region which is going to become right wing for the first time in 17 years. And the socialist party has only managed to retain five regions. However, there is no victory for the governing forces. The Prime Minister said that the danger of the extreme right has not gone away. Tonight no relief, no triumph, no message of victory. The danger of the extreme right has not been set aside, far from it. I dont forget the first round of results and the results of past elections. I am aware of my responsibility, ours, that of my government under the authority of the president of he republic. Le pen has blamed her failure in the second round on the mainstream parties who joined forces in order to create a republican barricade against the National Front. By failing to win control over any regions, she has lowered her chance to show the capability of the party to govern in france and in fact according to the latest poll we had last night, she still leads in the first round of the 2017 president ial election but she will lose in the second round no matter who is running against her. Manus caroline, thank you very much in paris. Interesting how barely a week ago, the markets were really quite shaken by this surge in support in the first round, but it didnt transfer into votes for le pen, a sense of relief, suppose from the politicos, not just them but all . Virginie in the context of low growth, very difficult environment in europe, refugee crisis is polarizing really the political scene. I think whats really important here is clearly more people went to vote. The first one was very limited, i think about half of the voters went this time, but a lot of people have not read what her program is about, nationalization, exiting europe. Its very, very drag continue. I think most people who are voting for her are just voting against an issue of malaise, if you want, as opposed to really understanding what that would do to the economy if she ever came into power. Manus they took 40 of the vote in two regions and came top in six regions in the first round. That is a political thats a statement of society. Hat we do at bloomberg as well is turn it into economics as well. Before this, france, you know, theyre potentially dying grades on the mat terrorism in france. It has been swooned and booned by the e. C. B. Would you concur that those debt matrix are sustainable . Virginie clearly its a tight situation. There is not much leeway that you have. The key is to focus on continued reform and trying to bring an improvement to growth, rtainly help unleash the entrepreneurship spirit to create a sustainable economy. Im not sure that were there. I think we need much more. That is what this government and the next government needs to focus on and its certainly not by electing le pen that were going to get there. Manus stay with me, we have a ot more to get to. Next, 21 clouds, its going to take 16. 5 trillion to clean up the mess. Thats the global statement. What does it mean for markets and me and you for me as commerg consumers that may be triumphant, but will the markets give a resounding cheer. Stay tuned for the consequences. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Manus 6 30 in london. That each up to speed. The latest data out of china shows evidence of stabilization. Clearing a hurdle for higher borrowing costs. The tracker for to a growth pace november. That is the best reading since june. Figures all exceeded forecasts. The peoples bank of china says the currency should might be measured by a move against the dollar alone. That statement is being interpreted as a sign that the bank will allow for the decline. The rand is