Struggle overall in the market. Opec finally cut production, this has been two years coming. Why does that matter . Inflation expectations. On redeker laying it out and Morgan Stanley today saying you get more shale investment in the u. S. And that is why this decision matters. David particularly if the deal holds. If they actually do it. Alix if optimism moves the prices that will move Inflation Expectations. My interview with james morgan, Morgan Stanleys ceo ways in on the trouble at Deutsche Bank. We will be discussing geopolitical problems potentially weighing on the market. We have an interview with jack lew. Jonathan is standing by. We see a monster rally in Energy Stocks but futures are negative. Jonathan it is a strong bid for european equities. The ftse 100 up by one percentage point. The dax pushing higher by 7 10 of 1 . The risk on feel in the fx market with a weaker japanese trade. 1 is how we this commodity market is absolutely fascinating. A market, yes. A collision, a cynicism at the moment. And opec deal, some are saying saudi arabia ands have capitulated and others are saying i will believe it when i see it. The brent contract at 48. 31. What we have got is a recalibration on the margin of Inflation Expectations on the back of this. The 30 day yield on treasuries ,p three basis points, 2. 19 curve steepening from the long and. Alix we will check in with our bloomberg team. Michael mckee and dublin on his interview with patrick harker. We have Deutsche Bank making headlines, lets shift the focus to commerzbank. Onathan we have the news now lets bring in all of her suze. Liver suze. I think it developed over the past few days. People are looking for Something Like 2000 to 3000 job cuts and sooner or later it became clear that this is not going to be a job cut or rebound program that we have seen and the past which was kind of addressing small steps. It is commerzbank trying to bring an end to restructuring and make one great move to finish it up. Jonathan yesterday president draghi stroke spoke and said if a bank has a problem it is the problem of that bank. Address the Business Model seems to be the message. Whatou walk me through kind of business will exist commerzbank in the years to come . Oliver clearly we see they are really focusing on their areas of strength which is kind of helping, focusing and working with mediumsized to even larger corporates in banking. Iny kind of are we treating retreating in areas such as Investment Banking and i think they realized that Private Banking and Consumer Banking is a tough market to be in. , thankn Oliver Sousse you for being with us. Alix my top story of the day is opec. Yousef gamal eldin joins us. Implemented you can see a 7 to 10 increase in the price of oil. It has to go right for that forecast to happen . Is if the keyword here it is implemented. As much as you had a dramatic finale to the discussions of opec in algiers late into the evening yesterday, the reality is the finer details still need to be hashed out. They are targeting a Production Cut to 33 Million Barrels per day. What this is going to depend on is how that Production Cut is going to be allocated among different members of opec. Also what we need to understand is the timeframe, how long is this frees going to last and is there going to bake whopper a with nonopec countries resiliencying to be with nonopec countries. They are trying to gain the relevance again in terms of their potency to the Global Energy market, and they are making the point they can hash things out and the are a force to be reckoned with. Alix thank you so much. The markets are not so sure how much they can affect the front fundamental production. David the market is trying to sort through what this all means , is it real . Now we want to turn to the fed. Patrick harker sent down with bloomberg and weighed in on the Federal Reserves next move. Patrick i have been in the camp of normalizing sooner rather than later but i would not say there is great dissent, other than the speed at which we move accommodation. Nobody thinks we should do that quickly. It will be a shallow path. Michael mckee traveled all the way to dublin to sit down with president harker. He is an engineer by training. Which we take away from what he had to say . Michael what is interesting is that he is going to be a voter on the fomc next year and he is strongly supportive of the idea that rates need to go up. Knowr told me he will not how shallow the path until we see the impact of a december rate move. He does think the fed is at risk of falling behind the curve on inflation. He is not a voters so he did not join the dissent camp but that was the view of a number of people who voted in favor of a rate rise at the last meeting. I asked if this is a divided fed and he said it is more of a question of the pace rather than disagreement over what they should do. He added the fed is not playing politics, that nobody is talking about the president ial race when they are making their decisions. In his speech today to the global and her defendant sample center, he off old offered a trade. David Michael Mckee coming all the way from dublin. Alix emma chandra is here with first word news. Terrorista attacked camps in pakistan overnight and says it inflicted heavy casualties on militants who had been assembled to infiltrate india. India says no more are planned. For aas retaliation Deadly Strike on the indian army earlier this month where 18 soldiers were killed. Pakistan denies the indians had a raid at all. The turkish president says a 12 month state of emergency might not be enough and his government is still struggling in the wake of the failed coup. They are trying to wave the impact of a muslim cleric who lives in pennsylvania. Congress has passed a spending bill to divert a u. S. Government shutdown through december 9, including money to fight the zika virus and pay for flood damage in several states. Thecrats agreed to vote for measure after there was an agreement to deal with flint, michigans water crisis in a separate bill. Global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. I am emma chandra. Up, crudecoming retracing some of the moves to the upside after opec decides to reduce production in eight years. From new york, this is bloomberg. Alix this is bloomberg , i am alix steel. Futures relatively flat, oil prices weaker, but the opec optimism raining high. We had that monster 6 rally yesterday in wti and brent. If you get Higher Oil Prices they will move in tandem and will be able to sell their production for more money down the road. It has the potential to make more projects viable as their costs come down in the oil price continues to climb. Energy stocks boosting, all of the indices help leading higher. Cut to underweight at pacific crest, 11 downside. Their flagship holiday product, dacey inventory backing up because that product is off to a slow start. , beato is the latest earnings by about eight cents and boosting its forecast by seven cents. The real leaders word the north american gains, beverages up 3 . Optimism for pepsi. David they also have nice gains in a lot of developing market like china and mexico, but they were up for earnings per share and they took the estimate up to 10 yearoveryear. Alix their fullyear earnings forecast coming in at almost five dollars. David good news for pepsico. Alix the real story story in the market is oil. Jonathan opec will cut production for the first time in eight years. He oil minister expressed his content. Excellent agreement. I am very happy after two and a half years. A very constructive argument in opec means that opec can overcome a difficult situation. Jonathan of course he is a happy man, crude jumped more than 5 . Joining us is michael and. I cannot remember a day like joining us is Michael Cohen. I cannot remember a day like this. Where do you sit . Michael i think i said more on the sidelines of lets wait and see until november because this is essentially an agreement to agree at some point later on in that month when they meet again. There is a lot that remains unclear. First of all, the baseline assumptions, where they are producing and where they are going to go will effectively mean how much is being cut. Re is a halfmillion day half a million barrel a day band and that makes a difference as to how much stocks can draw in 2017, so that effectively will mean this is constructive or just basically status quo. Effectively as we come into the winter, we have this normal uptick in demand. What essentially this agreement has done is that it keeps those shorts on the sidelines until we get to the next peak man season. Alix you do not get shorts but to me here is a chart that tells the whole story. You are looking at the call on opec crude for 2017 and the next proposed cut is the next call. Nigeria,n libya and they are exempt and all of a sudden you are looking at an oversupply yet again for opec. Do you see this playing out . Michael i think from opecs perspective, this is the approach they have taken for the past two years is they have been in a wait and see mode. They continue to be in a wait and see mode so in november their hope is we do not have incremental supply from libya or nigeria and that may preclude them from having to make any difficult decisions. If there is a situation where nigerian or libyan production is libya that will mean they will have to make some difficult decisions. Jonathan the last 24 hours, there is russia . Why havent we heard from them . Alix they are producing a record. Jonathan it was all about russia plus opec and now i am just hearing about opec. Yousef bloomberg wrote an alix Michael Bloomberg wrote an article but a lot of that was coming off maintenance. They are basically back up at the level of roughly 11 Million Barrels a day they are producing. Every single year people underestimate how much russia can provide, including opec members. Essentially what needs to happen, and the reason saudi arabia was more amenable to a deal was they want russia to be involved. Russias position for a long time has been the same. They want to see opec come to some kind of agreement and then they will play ball as well. Isentially what could happen that russia may just kind of keep its output level at the end of december and not change from their. Thought, schools of the short will come out and that provides a floor. Then you have Goldman Sachs who says they could add seven seven dollars to 10 to their oil price. Michael we see Oil Prices Moving into the low 50s for the Fourth Quarter but we see prices averaging next year in roughly the mid 50s range for the year as a whole. We are not changing our price forecast and we believe the market is broadly adjusting to an environment where nonopec supply is not growing, demand is growing, and opec supply irrespective of what happens with this meeting, is basically flat on a year on year basis. We do not see that much extra wiggle room from iran or saudi arabia. There could be 100,000 barrels or 200,000 barrels a day from iraq but for the most part the opec supply is flat and the nonopec supply is flat or not growing. It is not just about the extra five dollars to 10 a barrel we could get in the extra maybe 150,000 to 200,000 barrels we could get from u. S. Title suppliers. It is a broadening market that is continuing to adjust to a low oil price environment. Opec says they welcome that limited amount of shale because they are not able to increase anymore. Jonathan Michael Cohen of barclays, great to have you with us. An agreement of an agreement we may or may not get. Alix a difference from at least 24 hours ago, at least there is something on the table. Treasuries falling for a second day as the opec agreement raises Inflation Expectations. Andy chorlton will join us next. This is bloomberg. This is bloomberg. Coming up, jack lew joins us in an exclusive interview. Ceo headsls fargos back to d. C. Today on the heels of Federal Reserve chairman yellen vowing to probe bank misconduct. It is one of the largest banks and we are undertaking a look not only in the consumer generally,mpliance because there have been a very disturbing pattern of violations that occurred in the mortgage area and Foreign Exchange trading in many different areas. Has agreed tompf give back 41 million in pay as the Investigation Continues but lawmakers are not satisfied. We go to Elizabeth Dexheimer. Oining us from washington a lot has happened since the stage as mr. Stumpf goes before the house committee. Elizabeth he is in for another long day on capital bill capitol hill. The House Finance committee has tendency to get into Difficult Conversations with witnesses, so in addition to tough questions around the details of the investigation and what, we arenew going to hear some questions wealth andfs antiwall street rhetoric. There has been a lot of news returningabout stump his pay and the board conducting an internal investigation, that is something that will be acknowledged but it is not necessarily going to be something that satisfies a lot of lawmakers who say that it is too little too late. They want to see more actions taken against the bank or are looking at this from other lenses that are completely irrelevant to pay. David we have the state of california saying they are not going to do business with wells fargo and the insistence of mr. Stumpf perhaps giving up his chairman title, while others are calling for him to resign out right. What other options are there . Elizabeth today the House Financial Services committee, this is the beginning of their investigation into wells fargo. What is interesting is the role that the regulators are playing, that is going to be something we hear quite a bit. Republicans will be using this as an opportunity to look at whether the regulators should have acted sooner whereas the democrats will be looking that looking at this as an opportunity of how much more oversight is needed. There are going to be more investigations, more executives will be coming to capitol hill, and this is something that lawmakers think could be extended for many months. David that is Elizabeth Dexheimer joining us from washington. Wells fargo ceo john stumpf testifies before the House FinanceOversight Committee at 10 00 a. M. Eastern. We will be carrying that live. Jonathan the intent impact of Deutsche Banks downfall, alix steel spoke with Morgan Stanley ceo. A strong bid for european equities, a crude rally from yesterday. Opec agreeing to agree on something in a couple months time. Futures flat. Alix this is bloomberg , im alix steel. Street,30 a. M. On wall 12 30 p. M. In london. Plans to cut more than 9000 jobs and reduce dividends. They have been hurt by volatile markets and negative Interest Rates. Wells fargos ceo faces lawmakers on capitol hill after saying he will give up 41 million. He will fight to keep his job amidst a scandal. European confidence unexpectedly rose. Eurocb president saying areas economy is showing signs in themodest recovery. Markets, the big story is opec. Opec optimism fueling markets in europe. Jonathan yesterday we had the Oil Exploration stocks higher. Points in the dax up by 78. The story from the commodity market, check out crude, wti down by 1 10 of 1 . Yields up just a little bit on the margin by 1. 59 on the 10 year but the real story in the commodity market is the cynicism saying opec deal really . And this optimism saying, really , saudi capitulated. Since 2008, that is how long we have had to wait for opec to reach an agreement. The bulls are saying opec back together, i have missed you. Alix todays morning mustread is a must watch. Deutsche banks woes continue after we saw their shares slumping to a record low. Spoke about the troubles that Deutsche Banks troubles mean for Morgan Stanley. James we will support them as best we can is the whole financial ecosystem depends on institutions trading counterparties honorably and helping them through. I am not going to talk about thatche banks strategy obviously they have Strategic Issues they are working through and the market is impatient. Alix we have already seen a couple german borrowers pulled the deal for two Straight Days meaning there is some kind of trickle through when it comes to market reaction, the ability to lend, and a potential feed down to growth. Do you hear clients wanting to retreat from the markets . I do not think so, i am not seeing quite the drama. This is an institution that is facing some important Strategic Decisions as we did years ago, and others have in between. Let them sort it out. And that was james gorman what it seems is that Morgan Stanley is trying to give Deutsche Bank time to sort it out so they are not decreasing what they pay for their counterparty risk, they are not changing that. David bank solidarity . Jonathan these guys have been together. Will draw some parallels last year we had glencore in the news and the stock down, and the