Between the United Kingdom and the European Union, and to a stronger, fairer, more prosperous future for us all. For that is the prize if we get this negotiation right. A sovereign United Kingdom and a confident European Union, both free to chart their own course. A new partnership of values and interests. A new alliance that can stand strongly together in the world. And that is the goal towards which we must work in the months ahead as the relationship between britain and europe involves. However it does so, im clear that britains future is bright. Our fundamentals are strong. Our legal system respected around the world, our keen openness to foreign investment, enthusiasm for innovation, and ease of doing business. Some of the best universities and researchers you can find exceptionald National Talent for creativity and an indomitable spirit. It is our fundamental strengths that determine a countrys success, and that is why britains economy will always be strong. There are other reasons why our future should give us confidence. We will always be a champion of economic openness, we will always be a country whose pitch to the world is high standards at home. When we differ from the eu in our regulatory choices, it will not be to try to attain an unfair competitive advantage. It will be because we want rules that are right for britains particular situation. Both to way for us succeed it is for us to fulfill the potential of the partnership i have sent out today. For we should be in no doubt that in our collective endeavors in these negotiations were to prove insufficient to reach an agreement, it would be a failure in the eyes of history and a damaging blow to the future of our continent. Indeed, i believe the difference ifween where we would all be we fail, and where we could be if we achieve the kind of new partnership i have set out today to be so great it is beholden on all of us involved to demonstrate the leadership and flexibility needed to ensure that we succeed. Yes, the negotiations to get there will be difficult. But if we approach them in the right way, respectful of the challenges for both sides and pragmatic about resolving them, we can find a way forward that makes a success of this for all of our peoples. I recognize that this is not something that you, our European Partners, wanted to do. It is a distraction and what you want to get on with. But we have to get this right, and we both want to get this done as swiftly as possible. So it is up to leaders to set the tone. And the town i want to set is one of partnership and friendship. A tone of trust, the cornerstone of any relationship. For if we get the spirit of this negotiation right, if we get the spirit of this partnership right , then at the end of this process, we will find we are able to resolve the issues where we disagree respectfully and quickly. , then whenan do that this chapter of our european history is written, it will be remembered not for the differences we faced but for the vision we showed a not for the challenges we endured, but for the creativity we used to overcome them. Not for a relationship that ended, but a new partnership that began, a partnership of interests, a partnership of values, a partnership of ambition for a shared future. The u. K. Antie. U. , sidebyside and the eu, sidebyside, delivering prosperity and opportunity for all our people. This is the future in our grasp. Together, let us seize it. Thank you. [applause] thank you. There is an opportunity for some questions from the media. Ill go first to as you said, the 600,000 italians now live and work in the u. K. You said you want them to remain. How . What will change for them . We set outter may for those eu citizens currently living in United Kingdom who have made the u. K. Their home, including those 600,000 italians in the United Kingdom, we want them to be able to stay and have the same rights as they have at the moment. We are negotiating this with the European Union because as the british Prime Minister, i want u. K. Nationals living here in italy and elsewhere in the European Union to be able to maintain their rights, too. We are close to ensuring we have that agreement. I have set up today what i hope is a reassurance that those italian citizens living in the United Kingdom as we move ahead will know that it is our legal system that will guarantee those rights into the future. I think that is what people want to know. From my point of view, i value the contribution that italian citizens have made in the United Kingdom. I have quite a few italian citizens living in my own constituency and playing a real party in our social and Economic Life there. I want to ensure those citizens in the u. K. At the moment know that we want you to stay, we value your contribution, and what im setting forward today is a guarantee of your rights for the future. Laura . Thank you, Prime Minister david bbc news. What do you say to voters at who who chose to leave might be rather angry to hear that the immigration rules will be roughly the same for another few years, marcus will be roughly the same for another few years, the European Courts will still have a role for another five years im a potentially until 2021, five years after the referendum . Are they justified in being a bit cross about that . In your view, is no deal still better than a bad deal . Last minister may on that point, we continue to believe that, but the important thing is what i have done today is set out an entire speech which is about what a great deal we can the of the future of partnership between the u. K. And the European Union, if we approach this with ambition and creativity. I have set out how we can do that today and achieve a deal that i believe is in the best interest not just of u. K. Citizens but of People Living across the remaining 27 states in the remaining European Union. On the issue of immigration that you have set out, people voted to leave the eu. At the end of march 2019 and we will leave the European Union. People also noted to ensure that the process of leaving could be orderly and smooth so that people have confidence in their future and businesses had confidence in their future, too. That is what i have set up today, and if limitation period which provide for that smooth and orderly withdrawal. There will be a difference during that period because we will be asking eu citizens who come to the u. K. , they will be able to do so, but will be asking them to register. Thats an important Building Block for the full set of immigration rules that will be in when a new partnership is in place, when we take full control of our borders. That is an important stage in us taking control of our borders. Prime minister, on the implementation transition phase, you said we would still be under eu regulations and laws. Do you rule out being a member of the European Economic area during that period . Deal, on the final status you outlined a spectrum between canada and norway. It seems to me you were leaning closer toward norway and perhaps canada andlor than the foreign secretary. Is that a correct reading . Prime minister may this is one of the things i would say to you. I suggest that you start thinking not just about norway about the, but also fact that the u. K. Is in a completely different relationship with the eu from either of those countries when they started negotiating their relationships with the eu, and that gives us an opportunity to create a partnership that is a completely different. What we are talking about during the implementation period is a time for the practical changes that are necessary to put in place the full new partnership. Of course, you cannot do those practical changes until you know what the partnership is. The negotiations, we will leave at the march the end of march 2019. Negotiations will continue up to that time. But lets think creatively, lets be ambitious about what we can achieve. We start from an unprecedented position in terms of our current relationship with the eu. We are a member, coming out, and that enables us to build a different sort of partnership for the future. James . Prime minister, your strategy since lancaster house seems to be to layout positions and then conceded to what europe will agree to. It happened on the sequencing of talks, happening today on money, and is happening on their requirements for transition period. Can you point to a single concession from the eu that your negotiating strategy has won for you . Prime minister may during the negotiations we have at the moment, a number of issues that we have sent a position forward to the eu and we have agreement on a variety of issues that we are looking at. I challenge the picture that you have set out, james. What the United Kingdom has done throughout this process is actually set out our ambition, negotiating and symbols. Out in lancaster house, article 50 letter. The negotiating guidelines that came back from the European Union to a great extent me were the issues that we raised with them in the first place. Keep issues that we need to look at during this relationship. This is a negotiation. During that process, there will be positions put out, and we will come to an agreement. What im doing today is saying, here is an opportunity for both of us, the u. K. And the eu, to come to agree to a new partnership, a partnership that has not been in place with anybody else in the past because out,he reasons i just set u but can be one that can really show a great future for the eu and u. K. , for our future prosperity, for people not just in the u. K. But European Union as well. Jason . What would you say to those people who voted to leave last year and through those who believe we shouldve left already, turned off the direct debit, we should stop Free Movement straightaway and tell european judges to get lost. They have a right to feel a bit betrayed today, dont they . Prime minister may what the government is doing is ensuring that we deliver on what the people who voted to leave wanted, which is leaving the European Union. If we are going to ensure that we do that in a way that is has little damage and disruption to our economy and to peoples lives as possible, we need to do that in a smooth and orderly way. When we are very clear about is the implementation period will be timelimited and crucially that we will leave the European Union in march 2019. That is what the process of withdrawal asks for, that is what will happen. Tom . Your section on security, you said that the u. K. Is unconditionally committed to securing europes security. That therefore means that you will cooperate militarily, intelligence wise, with or without a deal, so therefore what do you say to people who accuse you of throwing away britains best cards in this negotiation . Prime minister may the issues around security and cooperation on criminal matters, justice and home Affairs Matters is important to all of us. We do face significant challenges, particularly in relation to the security issues, but we have seen over time i saw this particularly when i was home secretary how the cooperation with our European Partners is good for us and good for them. I think that members of the public would say to us is, we want you as the government to ensure that we can continue a partnership, corporation that is helping in terms of keeping us safe in the u. K. But also across the rest of europe. I think that is what people want us to do and that is what we will be doing. George . Prime minister, can i ask you to them you a specific questions . During the Implementation Phase you described, would britain be subject to new laws and regulations passed by brussels while we dont have a say in the making of those laws . The second question, you are setting out an idea of being close to the Single Market under this new arrangement. Would britain be prepared to pay for access to that Single Market . Something that some say is unconscionable. Prime minister may as i said in the speech, during the implementation period, and this is because it is in the interest of individuals and businesses to be able to have a period of time where they can make the adjustment to the new relationship, make the changes asos a serine to i. T. Systems or whatever, but know the basis they will be operating during the period, that would be operating on the current rules and framework. Of course, the details of that would have to be part of the negotiation. What i set out here is a principal in relation to that. I think that is important in the interest. It is not just of businesses but also individuals as well, so people know where they stand. As you know, george, the eu withdrawal bill we are putting through parliament brings the eu law to ensure that we have that smooth and orderly process and that people know that the point which we leave, they still know the basis that they are able to operate. I will take a final question. What do you not expect from brussels and from berlin after the speech . What i wouldr may hope people in brussels and berlin and across the European Union would see is that this is the not a kingdom setting out the opportunity for us to Work Together to negotiate what would be a strong partnership. I have use the term deep and special partnership, that will ensure the future prosperity of countries in the eu and the United Kingdom in the future. Andpe that people will feel will respond to it in a tone and a way of partnership and friendship do that is what the u. K. Is offering. I think its important not just for the u. K. But for the whole of the European Union. The remaining 27 will be considering what their future is as an eu, with the future structures of that should be. We want the eu to continue to be strong. Its in our National Interest for the eu to continue to be successful. What i have set out today is a way we can go forward together, sovereign United Kingdom, making its own decisions, but a strong and successful European Union working, too. Thank you. U. K. Prime minister theresa may wrapping up the q a in florence. She says the transition period will be around two years. The market moving element of the speech happened early on when she said the u. K. s objectives have not changed since she laid on her vision in lancaster house back in january. The transition period was a key takeaway that will be roughly around two years. The other key takeaway was the fact that she admitted the u. K. Would honor its commitments. She did not give a figure. Lets get to anna edwards in florence. That was fascinating, wasnt it. There was a lot of figures bandied around the head of prime speech, but she did not give a figure with regard to maybe with the u. K. Would pay during the transition, or be what the u. K. Might pay the actual bill. Indeed. We did not get numbers today. There was low expectations that we would actually get numbers. She has come all the way to florence not to talk numbers but it inspire, i suppose, draw on those renaissance values. We did not get the number around transition, the 20 billion that have been talked about previously. She certainly did not go as far to talk about what might be payable as a divorce bill. We did learn about the models, that are still not being embraced by the government. They dont want any of the models. We talked about. We learned about this to your transition. We learned about their intentions about security. The big question for me is one about the money, what about the divorce bill, will that be enough for them to say it was concrete proposals enough . Also, she talked a lot about cooperation, corporation with eu partners working handinhand him a collective endeavors, shared prosperity. I wonder how that message goes down in brussels on the weather they see it as such a shared project. That was one of the questions at the end from german newspaper journalists asking what kind of response the reason they would anticipate from brussels and berlin. It seems like there is not much talking going on between the two sides. Out a whole laid new framework for navigating through this and was hoping that the european side would see this of newiendly proffering ideas, but they are few and far. Etween in their they would put out reaction maybe it is already on the bloomberg. Im sure that we will get that to you. Waiting for,we are to essentially see, was there anything in here concrete enough for michelle to go confident we have made enough progress on the issues to turn the conversation to trade in october . How the tone goes down is also important. There was a lot of positive things to say on that front. She was positive in her words about the eu, cooperation that could exist between the u. K. And europe after this. She was also positive for the audience back at home in terms of the opportunity in brexit. Whether that tone will be enough, i remember listening to the finance minister of greece, a lot of experience in dealing with the eu. His view is this government has holds to too high a stall that brussels wants a deal that is good for both sides. He says that would undermine the principles that forged the European Union together. Ive heard from the European Commission who says they want a deal that is good for both sides. We have to see how that language goes down. Mark thank you. Lets stay with the speech. Lets bring in a cheap eurozone economist at pantheon. Reaction. T the market clearly, the tone, disappointed some market participants. Would you go as far to say that it was rather thin on exact details . I think actually it was quite significant. In some sense we are back on track in so far as, we are back on the eu track. Conceded to the fact that there are obligations that have to be paid, that have to be honored. We also got a lot more details on transition agreement. Its important to understand that if you are a hardcore we also got a lot more details on transition agreement. Brexitier, you are shaking your head and thinking, we are staying for a couple of years. Whereas if you are against brexit, you see these two years of transition as sort of a way to prolong it further. Tiptoe may is trying to and a possible line here, but i think we can work on this from the eu perspective. Mark a lot of it was platitudes. We have made progress, but where is the money . Show me the money. What money will the u. K. Pay the eu . Brexit bill,th the with the u. K. Will pay into the coffers dermot transition. Yes, she wants eu Citizens Rights to remain the same, she does not want a hard border between ireland and northern ireland. Beyond those platitudes, it was lacking in detail. I would be intrigued to know how mr. Barnier response, when he does. I wouldnk mr. Barnier, expect him to focus on the one positive bit from his perspective, namely that may conceded there are obligations that need to be paid, and the sequence of talk is back on track. If mrs. Mei says there is going to be a transition period during which the u. K. Basically is going to remain a member of the eu, we know exactly what is going to be paid. The u. K. Will pay just as it does now. Otherwise, we have to say that we dont believe what she said. One of the only concessions i heard was the idea that the European Court of justice will be listened to by british courts during that time. Does not go as far as the European Union wants but it is partially there. What other leverage does theresa may have . She was asked that question particularly on security and she admitted security is going to be given no matter what, so what are the leverage does britain have . Asthe u. K. Has security leverage but that is a very bold and dramatic harder to play for the u. K. If they went to the table and said, give us access to the Single Market, otherwise our royal navy boats and the military will go home. That is a tough card to play. I think the eu might walk away from such a deal. It is leverage but it is also very difficult to play for may. If you do that, there is a chance the whole thing breaks down. Innie a lot of uncertainty the room as to where to start asking questions, so many questions to be asked. One of the areas is what kind of deal will be made. Canada is not an option, according to may, the norway option is not an option. She kept talking about creative new options. Can you think of anything that would be one example . No, that is when it gets difficult. May says they are leaving the customs union, Single Market, but on the other hand, wants a custommade deal with the eu, close relationships. That is very difficult. The u. K. Will have to decide how far it wants to go. At some point, the u. K. Government will have to be ifest to the u. K. People, they really want to leave the customs unions and civil market. It will have economic consequences in terms of trading with the eu eva that is just the reality. If that is what you want politically, it will have economic costs. Mark from the business perspective, the Business Community, which a large section was calling for a threeyour seems ton, twoyears be a good compromise. Look at the market reaction, what is that telling us . Sterling declining against the euro during that speech. It is coming off of those lows. Bond yields falling during that speech. The focus seems to be on the fact that may said the objectives have not changed since january. How should investors, the Business Community respond to todays speech . I am not in front of my terminal right now so i cannot see whats happening in the market. My interpretation would be that of a we have an offer transitional deal from the u. K. , not the u. K. Would like a transitional who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Mark live from bloomberg World Headquarters in new york and london, i mark barton. Vonnie and im vonnie quinn. This is bloomberg markets. We will monitor developments following theresa mays big brexit speech. But now, switching to u. S. Politics. The war of words between President Donald Trump in north korea, taking yet another turn. Another un warned of countermeasure in history. Foreign minister suggested the threat could include testing a Hydrogen Bomb in the pacific ocean. Back,esident fired calling him a madman, says he will be tested like never before. Lets bring in kevin cirilli, a washington correspondent. In withhis kicked President Trump telling the world that china is also cut off with any banking relations with north korea. Obviously, there was going to be at a response. Kevin we have been carefully monitoring the escalating tensions between the United States as well as north korea, particularly following yesterdays Public Comments at the United Nations and that meeting. I thought the japanese Prime Minister, shinzo abe, saying itzed it best, is the latest test. Haleyday afternoon, nikki saying the world appreciates the talk b luntonde blunt talk and common sense approach. Mark we have a busy week ahead of us. Lets get to health care. Republicans win support canada republicans when in support for obamacare . Kevin i have been trying to get in touch with republican aides. People like senator rand paul. The president wants to get a win. Mitch mcconnell has now said when we have been reporting all week, which is essentially they want to get a vote by the end of next week, but it will be very interesting if they bring it to a vote. Though,ake a step back they have tried to put this up against senator Bernie Sanders his universalh health care system. It is interesting. On the flip side of that, something everyone will be talking about next week tax reform. We are anticipating new details monday or tuesday of next week, from finally tax reform details. Vonnie and then the reinstatement of a travel ban. A lot to look out for. We will hear about north korea in a few minutes. I want to ask you if there is an imminent threat of this as leading to another level . Kevin we saw yesterday you window Ambassador Nikki Haley answer that question in which he said that there is a lot of and takingen now military action. I think it was interesting how she said the purpose of the sanctions are to slow down the of dictator kim jong un. She clearly is trying to say what the goal of the sanctions are going to be. That said, it will be interesting to see what secretary ross has to say in terms of, sanctions we can do. At the end of the day, at some point, sanchez are going to run out. And whether they speed up or slow down, the provocations on the other side is anyones guest. Kevin cirilli, thank you. Lets see what wilbur ross has to say. It should take far he seriously the new sanctions. These are unprecedentedly severe. I think they will work and have a big impact because china yesterday came out with a very strong statement that their central bank is going to cut off the chinese banks from dealing with north korea. China has been the main trade partner for north korea followed by russia and then some very small ones. You cut off the currency flows, shooting off these rockets as rocket man wants to do, that is a pretty expensive thing. Got to get cash from somewhere. I think a lot of those parts must be imported. So china is key for having levered on north korea . At the same time, you have an agenda as the secretary of commerce with china as it comes to trade. How much has a complicated what you can accomplish in the trade area because we also need their help in a geopolitical area. Doesnt limit with what you can get done with china . The number one priority of the president to protect the american people. So, everything has to be focused number one on that. But i am going over to china this weekend, in fact, tomorrow morning. So we will see where we are on the other subjects. Where are we of the ever subjects what are we on the other subjects . There was a bilateral process put in place that you talked about. There were meetings in washington. As a matter fact, on steel. Behind for thought it would be at this point . The first 100 days was low hanging fruit. Important, it is been kicked away kicked around for 14 years. Wasng that into a reality much simpler than some of the bigger issues like global overcapacity and basic metals, intellectual Property Rights. Those are tough issues. Much more central issues, much bigger dollardenominated, so it shouldnt be too surprising that as it gets more complicated, it takes a little longer. Cut capacityfer to by 2020 to buy significant amount. The president rejected the deal that you endorsed. Why didnt he like the deal . It is more complicated than that. We were thinking through the whole approach the trade relations with china. And as you noticed, he buried quickly followed that up with the initiative on intellectual Property Rights. It is a question of timing of priorities. Jon lets deal with intellectual Property Rights later. The president says i want paris. Getting to paris the tariffs . Youre talking about rumors of what went on in the white house. I am not going to comment on those, but on steel, he has announced publicly that he wants the 232 report delayed until we get to the tax thing because we dont want to interfere with the legislative agenda. The tax thing is the single most important thing on our plate right now because that was Regulatory Reform is what will drive jobs drive job creation here. Jon the president is not asking for tariffs . Sec. Ross i did not say that. What i said is you are commenting on someones jon im afghan official if the president i am asking an official if the president is asking for tariffs right now. Sec. Ross i dont, on leaked information. I dont comment on leaked information. Not ross the report has formally issued and it will provide the president with options. Someones he has had to so once he has had a chance to digest the report, we will see what he comes up with. Vonnie that was commerce secretary wilbur ross. Lets check in with emma chandra. British Prime Minister theresa may has laid out plans for a twoyear brexit transition. She said neither the u. K. Or the e. U. Would be completely ready to implement all the arrangements for brexit when the u. K. Formally leaves in march of 2019. She promised on of the u. K. s commitment to the e. U. Budget. I do not want our partners to fear that they will need to pay more or receive less over the remainder of the current budget plans as a result of our decision to leave. The u. K. Want to commitments we have made during the period of our membership. She spoke earlier in florence and is trying to ended in a deadlock over brexit negotiations. North korea and the u. N. Is engaged. In a war of words President Trump says kim jong un is a madman who like starting killing his people. Thater north korea came after north korea said they would launch another Hydrogen Bomb. In puerto rico, Hurricane Maria chances of the resolution. The entire island has lost power and townsend and flooded by water. All this comes for months after puerto rico sought protection from creditors in the u. S. s biggest municipal policy error. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Mark thank you. Coming up, opec ministers meeting in vienna saying the are making Good Progress in bringing a global glut. We are live in begin of the latest. This is bloomberg. Live from london, i mark barton. Vonnie and in new york, im vonnie quinn. This is bloomberg markets. Time for the stock of the hour. Popping his carmax. Joining us to talk about the result is abigail doolittle. What is behind the pop . Abigail this is one of the largest used car dealers in the United States. They have had a good quarter. Looks like a mix of the used cars is strong, geared towards trucks and suvs. Plus, lets take a look at the index of used car values. That is climbing and is helping. This is impressive considering the company said they were hurt by Hurricane Harvey on a conference call. Here is the index on used cars. At the beginningd of the year, we had a ip. Dip. Ey had a there are a lot of high Quality Used Cars out there as opposed to new cars. Vonnie we have been hearing about the possibility of auto loans about the possibility of auto loan crisis in the making. Abigail they do have a big financing business. If the pop back into the bloomberg and take a look at this function, this is their percentage of car financing relative to earnings before taxes. 2009, itck in 2008 and was not a percentage at all. 37 ofn climbing higher, their earnings before taxes coming from financing, however, the outsourced what is considered to be subprime. This is a piece of the short story on this stock. There is a fairly high interest of 13 , but down from the highs of 20 . Perhaps because they are outsourcing those subprime loans. Mark lets get to the oil markets. Around 56 a barrel after the meeting of opec and its allies in vienna. It concluded without any recommendations to extend cuts. Down with an exclusive interview with Russias Energy minister, joining us from vienna. Aboutlues did novak give the future of the partnership between opec and nonopec . That was the quintessential question as to whether or not they would extend a make a recommendation for the extension of this agreement. We do not get a formal recommendation, but what is fascinating, is to talk to the key players and how they feel about the future of this. Take a look at what Alexander Novak have to say. Alexander it is not as bright as you see in many areas. We try these things very carefully. Over the past few months, you are seeing Significant Impact from shale producers. He also made it clear to me that he does not see this opecnonopec body staying around for an intimate amount of time an infinite amount of time. What did novak say about u. S. Shale . I want to point out to our viewers that this chart shows how opec production has been coming down. We have seen u. S. Inventories go , butot in a Straight Line an impact there. What did novak have to say . , the chart you point out vonnie, is really the underlying challenge that opecnot opec faces. Down someought output, they have been facing rising crude inventories that have not come down as fast as a lot of analysts would of liked. But bringing it back to the whole point, he wasnt terribly concerned about the prospect of u. S. Shale driving and further clouding the outlook of nonopec efforts. Take a listen. Sorry, we dont have audio for that. Lets talk about some of the other key takeaways. What were they from todays meeting . Several. Just to finish the point on Alexander Novak. He was internally worried about the prospect of those rising u. S. Inventories in u. S. Shale. It was a bit of a letdown in terms of expectations versus delivery. There was a lot of patting on the shoulder, hey, good job, will done. But overall, it wasnt much more than that. It was a wait and see. Later on, we can reassess based on the data in the First Quarter of 2018 and see if we are going to endorse an extension. We do not hear about nigeria or libya, two wildcards in this equation. They are exempt from this accord. We were thinking they would be pressed to play a larger role as a are seeing the recovery in the output. Also, there were whispers that there could be an additional way to measure some of the data. Looking at exports as well to try to pressure those who havent been pulling their weight. That did not happen either. In many ways, a bit of a missed opportunity perhaps, but argued we raising the stakes for the next meeting. Vonnie what have analysts been saying . Look, they have been something on the board in terms of the bandwagon. Slightly improved picture in terms of fundamental supply and demand. We understand that the inventories have dropped 20 . A much more favorable environment as opecnonopec met indiana. Met in vienna. This is a group that can afford to wait and got the market on their side. They expect this group to gradually ramp up production once it expires this agreement early next year. The main focus is going to continue. They reiterated 50 per barrel year end target. Morgan stanley putting out a upwards, changing a forecast. You are looking now at q4 target at 55 a barrel up from 50 a barrel. Ultimately, on the basis of these shifting structural fundamentals, look at brent as well. Mark great job today. Thank you. Reporting from vienna. Time from time for the Bloomberg Business flash. Jpmorgan will open and operational headquarters in poland. They will hire 7000 employees. They are among several banks relocating jobs. It will give both carries a chance to rapidly expand in germany. They were forced into solvency last month. That is your latest Bloomberg Business flash. Vonnie nor yell could be in store for a makeover. Sparking speculation. That is next. This is bloomberg. Vonnie live from new york and london, im vonnie quinn. Mark im mark barton. This is bloomberg markets. Change can be in the air for loreal. Shares of the french Cosmetics Company surging the most in seven years today on the speculation that the death of loreal heiress lillian betancourt could usher in new structure for the company. Nestle has a possibility of selling its stake in loreal. A columnist is here to talk about the options. What is most likely when it comes to this stake in what will happen next the loreal . Most likely nothing will happen shortterm. But after a period of time, nestle will sell its stake. Becausees that signify does that signify that the Cosmetics Market is at its peak . That is a second argument. We had this incredible boom driven by selfies and Everyone Wants to look good in their selfies. Function inat the the bloomberg, you will see that the dollar the betancourt case is the thirdlargest shareholder. What would happen to those shares . Looks like they will be inherited by the children. The interesting thing is there was an agreement, which expire six months after lillian betancourts death. It will expire in six months time. One option is for the betancourt to increase their stake. Idea ifdo we have any any has been public within the court case for intentions of the company . There was a comic today that they were still supportive of loreal. That doesnt really sort of tell us what they intend to do. Mark one option is loreal sells its stake from the purchase . But they dont have to. They had plenty of cash and a strong balance sheets. Even if it borrowed, it would have low gearing. Mark if nestle cells the stake for 20 3 , it is with 24 billion . Would you do with the money . That is the big issue. So far, they have been doing these really small deals. I think if you increase the buyback, and they have already announced 24 billion share buyback. And they want to sell the stakes. What would he think if they launch a bid for loreal . I dont think he would be very happy. You could see how it might make sense. They are all converging in this area. Dealt is a very, very big and it is risky. Overlap withmuch nestle being in the food business and gloria being and cosmetics. I think it would be catastrophic. If schneider came out and said i am going to sell the loreal plate, it would look like pressure from the investors. Mark great job. Next, thehat show is european close. This is bloomberg