Transcripts For BLOOMBERG Bloomberg Markets European Open 20240714

He could become the fourth president in history to face impeachment proceedings. Fliesaker Boris Johnson into a political crisis after the Supreme Court in the u. K. Rules his suspension of parliament unlawful. And oneway traffic. China prepares to buy more u. S. Pork as President Trump uses his u. N. Address to slam beijings trade practices. Christine lagarde calls it the biggest threat to Global Growth. It is mediocre growth. Ofis at risk because essentially one major threat, which is the trade war that we see. Now, of all the things vying for investors attention, Political Risk is pushing its way to the front. Donald trump is to face a formal impeachment inquiry. Speaker pelosi says the u. S. President has violated his oath of office and obligations under the constitution. Trump called it witchhunt garbage. Boris johnson has restated his vow to complete brexit next month. He said he profoundly disagrees with the u. K. Supreme court, but wilson comply with its ruling. Joining us now is our Senior Editor in singapore. Anna edwards is standing by in westminster. Talk us through the impeachment process here. Well, it is very early in the official process, although it seems like President Trump has been under some form of congressional investigation for quite some time now. The issue at center is whether or not President Trump asked a foreign country to meddle in u. S. Elections by digging up dirt on democratic president ial contender and former Vice President joe biden. President trump has said that this impeachment thing is just a distraction and a witchhunt and those are words he has used to try to get rid of some other controversies in the past. This one has broken a dam against what had been a resistance by democratic leaders, including nancy pelosi, to go forward with impeachment probes. Why is that . Remember, the whole russia investigation we have been hearing about for the last years, that was about possible collusion. This is about literally going and holding up aid to another country and having your lawyer trot about a country saying, please go investigate the democratic frontrunner for president , could you please give us something in him . That is kind of where we are here. This was seen as such a further thing that democrats felt, look, we cant possibly keep the lid on this any longer. This does not mean he is going to be removed, necessarily. That is the decision for the Republican Senate if it gets that far. This does allow democrats to widen the scopes of investigation, force compliance of some things, and turn the screws to the white house. Matt all right, so those are the allegations. He isre the chances that found guilty and thrown out of office, frankly . What are the chances this ends up in an actual impeachment at the senate level . Derek it is a good question. I like to think ive been in washington for a long time and impeachment is a legal process, but also a political process. Across the entire swath of u. S. History, there have only been two president s actually formerly formally impeached. You have to deal with the simple fact of reality that the senate is the place where you try these impeachment cases and that is run by Mitch Mcconnell, it is run by senate republicans. So, the likelihood of actual removal should instead be the answer to the question what are the chances that republicans in the senate vote to get rid of republican President Donald Trump . Matt all right, thanks very much. Lets get over to anna edwards covering the u. K. Supreme court decision. Donald trump called the impeachment witchhunt garbage. What does johnson have to say about the Supreme Court . Notarie he says he does agree with the decision at the Supreme Court. He said he will respect the decision, but he does not agree with it. He had a call with his cabinet last night and we understand that the leader of the house went further than Boris Johnson and said that with the Supreme Court had enacted was a coup. He said this was in overthrowing of the constitution by the Supreme Court. Boris johnson has said he does not agree with it. He said he did not will not resign. There have been calls for his resignation there been calls for those who advise him to resign as well. Today, we see parliament return, as though it never went away. They will be back here trying to get on with orderly business. 11 30 a. M. Jacob reesmogg and will make a statement. We dont know when we will hear from the Prime Minister. We have heard from the speaker that there will be plenty of statements. There will not be Prime Ministers questions, but we look forward to some lively action and debate in the house behind me. Matt all right. Anna edwards, thank you very much. We will continue to come back to you at westminster. Will continue to cover the political turmoil for us out of singapore. Lets get into the markets with mark cudmore, our managing editor for mliv. Story is thent most read story on bloomberg, you would expect that. How much effect is it having in markets . Mark it definitely had a little bit of a negative effect on markets. There is some kind of talk that that negative effect is because of the impeachment process or an escalated political battle with the democrats will distract from negotiating from china and make it less likely to have a deal. It is important to remember that aboutnterpretation is whether this ways into the trade deal calculations. Overall, impeachment is not really a market story. Buts a very big news story, it is not the thing that drives markets. People look back to the last impeachment process under the clinton government and from the day it started until it concluded, equities rally to massively the whole way through the process. Than more of a distraction a market event. It is definitely noise, but the trade deal is abstinent absolutely more dominant. Matt the economy was on fire when clinton was impeached. That is one reason equities rallied. Under nixon, we were heading into a recession. The markets went down, obviously. What about the situation wall street sit typically thinks gridlock is good, but is this gridlock good in terms of the trade war or bad . Look, it is a great question. It is important to put it in the context of the economy. It is not so much the impeachment process, it is what the economy is doing anyway. I think the economy in the u. S. Is going to a very bad place very quickly. I think that is the context we are seeing. As for gridlock, it is normally seen as good, but that is more worrying in an extreme situation in growth. When you really want that fiscal stimulus to support the monetary stimulus, it is getting toward this end. The u. S. Is the one country where the central bank does have a lot of tools. The government to provide fiscal stimulus is not quite as drastic as elsewhere, but it will matter at some point. I think the gridlock could become a more negative in a more negative growth scenario. But it will not be initially. Matt thanks very much, mark cudmore, managing editor mliv out of singapore. The biggest names in business and government will gather for the annual Bloomberg Business forum in new york. We will hear from top executives, world leaders, the names include jamie dimon, David Solomon, narendra modi. This is bloomberg. It is not in the baseline to have a recession. Growthid, it is mediocre , it is at risk because of essentially one major threat, which is the trade war that we see, either developing or brewing and the uncertainty that it generates for investors or for anybody making economic decisions. That is not to mention what mark carney called the tragedy on the horizon, the Climate Change impact on our economies. Now, butires action will produce effects later on. That was the incoming ecb president Christine Lagarde, saying how trade continues to be the number one risk to Global Growth. Joining us now from here in zurich across town is the head of ubs Global Family Office group. We heard miss lagarde talking about the possibility of a global recession. Earlier, mark cudmore says he thinks the u. S. Economy is headed toward a very bad place in a quick way. What is your view on the state of Global Growth right now . Well, clearly, uncertainty is the name of the game these days. Clientsook at what our nobody has indicated, their key concerns are mainly two geopolitics and the impact that can have on the economy and the second one is the environment and Climate Change. If you look at the next couple days, those are the two topics everyone is concerned about. More than half of our clients actually have a very negative view on the economy and expect a market downturn. That clearly does affect the way they look at their investment portfolio and their expectations. Matt are your clients still buying cash, are they put it in treasuries . What is the play . Sara putting everything in cash is a bit of an overstatement. Inhave seen indications clients increasing cash reserves. Represents a relatively small portion. They do lookhat, at the future and a bit more of a conservative way, so they will be more realistic in the way they invest. Mitigatingave risk investment strategies. A longterm have investment horizon. They have a broader spectrum of Asset Classes they can invest in. Focus on internal alternative investments. Classesthese two asset are longerterm and they allow them to navigate shorterterm uncertainties. There are focusing on these Asset Classes. Longertermy have a outlook and they are willing to take a little bit more risk, i wonder if more of your clients are investing in esg asset or sustainable assets. That is exactly true. Esg impact investing, Sustainable Investing has been something that we have been highlighting for a while. To be fair, it is still a. Elatively small portion it is an asset class that nobody can ignore anymore. It is no longer about doing something good for the environment or society in the past. If you look at the big investment themes that are going to affect the market in the only if you want 34 , they indicate they are already , the numberesting thatmilies that indicate they will be actively investing in these Asset Classes in the future is definitely increasing. They have indicated that in the next three years, they believe they will be actively involved in this asset class. Investors thate are already active in the sustainable type of investments, this asset class represents only roughly about 20 of the portfolio, but this is expected to increase over the next three years up to one third, so it is that has theea focus of families. It does mash with the overall concerns of Climate Change and the biggest effects to the economy and society. Capturing mix of returns on this asset class and matching the values of the families. Matt thank you so much. Ubs had a Family Office group joining us from the other side of town. Lets get the bloomberg first word news back in london. Good morning. Good morning, matt. President macron is stepping up assets to diffuse tensions with iran. Leader, saying it would be a lost opportunity if president rouhani met left without meeting his counterpart. No responsible government should subsidize irans bloodlust. Menacings irans behavior continues, sanctions will not be lifted. They will be tightened. Weworks chief is out. Salvagein an attempt to the ipo. They plan to go ahead with the listing, but it is unlikely to take place next month as planned. Comments from the Nation Central Bank added to speculations of a rate cut next month. Up thealso talked virtues of negative Interest Rates. Global news on air and on twitter powered by more than this isrnalists, bloomberg. Matt . Matt thanks very much. We are minutes away from the open. Up next, we will take a look at your stocks to watch, including adidas, after nike ownings earnings show the u. S. Rival is dodging trade war concerns. This is bloomberg. Matt we are minutes away from looking at the stocks to watch around the newsroom. Dani berger is looking at ease. Annmarie hordern focusing on adidas. What is the story . Annmarie first, im going to correct you. It is adidas. Im looking at adidas and kuma. Take a look at these nike shares. They reached a record high in after hours trading. They had a bit of a mixed summer, but beat estimates. They are starting. To dodge trade war concerns you can see the sentiment in the readout in europe. Matt all right, it is adidas because the name of the creator. Just because the beastie boys run dmc got it wrong, it does not mean you have to pronounce it that way, too. [laughter] santander has reported an impairment for the u. K. Unit. They say this is due to regulatory challenges. Division the u. K. That is as Interest Rates remain low. It is more bad news. It will be reported in the next quarterly earnings. What is the story on edf . Dani the French Electricity Company has issued a cost warning. The cost on the highend of the range could be as much as 22. 5 billion pounds. That is an eightfold increase. Matt thanks very much for joining us. You can get all the stocks to watch in your bloomberg. Matt we are in minute away from the open of cash equities trading. Lets go to Annmarie Hordern in london. Annmarie we are seeing some weakness across sheas a across asia. If it of a mixed picture. Slammingresident trump beijing trade practices. Bloomberg news has a scoop china is planning to buy more american pork. That would be optimistic for the trade war. Futures are barely pricing that in. Oil to the downside. We see an expansion possibly. Aramco starting to rebuild. A big day for u. K. Out on the green. Here are futures ahead of the open. Futures down to the green. Is looking like it is going to be a down day in the city of london. It has just gone 8 00, lets get your market open. We saw the european futures, they were pricing into the downside. There was a lot of Political Risk out there. Beijing to washington. It looks like the market is pricing that in. We have the trade war, a bit of a push paul. We have maybe some optimism in trade picking up with the pork. Then in the city of london, we down stocks in the city of london. U. S. Dollar. Higher , it isthe sector picture a wheel of red today. Energy shares were down and they look like they are going to take another hit today. Stockpiles, that is going to weigh on the brent price. Health care was one of the biggest gainers yesterday. I want to look at how consumer discretionarys will play out today given possible optimism in the trade war. Also what happened yesterday with nike and that was positive for the retail space. We have adidas up 0. 8 . Nike soared to a record high yesterday. Astrazeneca in the pharmaceutical industry is also up this morning. No massive moves just yet. Lets take a look at what is going on to the downside across the stoxx 600 this morning. There we go. Nestle to the downside, down more than 1 . Alone wegh this week learned about the fact that they are expanding their dividend from 3 to 5 or 6 . Matt . Matt all right, thanks very much. , openings the movers broadly lower as investors weigh the prospects for reduced trade tensions against a deepening political gridlock in washington. Donald trump is to face formal impeachment inquiry. Has saidancy pelosi the u. S. President has violated his oath of and obligations under the u. S. Constitution. The actions of the Trump Presidency reveal the dishonorable fact of the president s betrayal of his oath of a, of our national security, and of the integrity of our elections. Im announcing the house of representatives moving forward with an official impeachment inquiry. Now is the j. P. Morgan asset global morgan strategist. What does the impeachment mean to you . How do you reassess your portfolio as you look at this deepening political gridlock . Good morning. Now its really not the time to be making major changes to Asset Allocation on the back of the overnight news. Separate the to signal from the noise right now. From a political perspective, this is meaningful, but from a market perspective, there is not too much to read into it at this stage. Matt what about the Supreme Court move in the u. K. . To hit one that is going your portfolio more seriously . The Supreme Court falls into a similar category, really. A Major Development from a political process, but investors are questioning whether the status of the brexit negotiations have moved materially on that front. From my perspective, the Prime Minister remains in a similar position. He knows the easiest way out of this is to find a deal with the european union, but breaking through the Technical Details are proving to still be very difficult. Matt nonetheless, there are a lot of balls in the air. His geoPolitical Risk a concern for you . I think markets dont like uncertainty, that is something we can say simply. All of this news is clearly going to make investors slightly more cautious in terms of jumping into risk assets. In a time when the Global Economy is quite weak, we see market moves can be exacerbated by geopolitical news more broadly. There are reasons for investors to be thinking about ways in which they can be Building Greater balance into their portfolios to try to provide some offset to potentially higher market volatility ahead. Matt Jeff Gundlach said the chances of a recession by 2020 or 75 . Said 55 of High Net Worth individuals are concerned about a recession next year. What do you think . I think there are reasons to be cautious at this stage. The shift we have had the past few days has really been from some of the bleed through from the weakness we have had in the Manufacturing Sector for much of this year starting to shift more into the services sector. That is one area making me slightly more cautious. I will be watching the labor market closely because i think the consumer in the u. S. Has really been the bedrock of this expansion. If we were to see some of this manufacturing weakness feeding into services and then Companies Cutting back on jobs, that would make me a bit more skeptical running into 2020. Matt all right, it is a very good point. Keep your eye on those jobs numbers. You are going to stay with us for the hour. Up next i met a loss as to what is going to happen, but clearly brexit uncertainty is questioning many economic decisions on both sides of the channel. Incoming ecb president Christine Lagarde tells bloomberg of her dismay over brexit. We are live in westminster next as Boris Johnson returns to face the biggest crisis of his premiership. This is bloomberg. Berm come back to bloomberg markets, this is the european open. We are 10 minutes into the trading day. Looking at losses across the board. I want to get right back over to westminster right now were in edwards is joined by the brexit Party Chairman. Anna . Anna thanks very much. Joined by the brexit Party Chairman and member of the European Parliament for the brexit party. You said you dont think we will now brexit. There is no chance we are leaving on october 3. The government has essentially lost control of the events. What needs to happen as a general election. Anna there could be a deal. Look, they dont know who they are negotiating within the european union. The eu did say yesterday. Yes, but no one knows who is controlling the government, no one knows who is going to leave the government. If the opposition tabled a vote of noconfidence this week without an election, there could be a complete change in the government of this country. The people would be utterly furious. Boris needs to keep hold of events now. It is very important. In our view, he should table a quick bill and say we want a general election, the earliest that could be is in the first couple weeks of november. That would require requesting an extension, but weve got to get this resolved. The only way to resolve it is with the people. Anna that quick bill, how would he get that through . It would require a two thirds majority, but if he tries to pass a bill through the commons and the lords, that only requires 50 plus 1 . Anna does he have that . In that scenario, he is basically challenging parliament that we are deadlocked, the establishment does not want this to happen, its got to go back to the people, so he is challenging, where does loyalty truly lie . It does not lie with parliament, it lies to the people. They lend that sovereignty to parliament in parliament has now completely trailed failed. Anna should Boris Johnson resign . He should consider resigning as a show of leadership because if he doesnt, he will be buffeted around like a cork in a bath. Anna you do think he should resign. But as a show of strength to say, we need a general election, as part of that, i will resign, im challenging parliament to agree with me that we need an election and that would really put the pressure on them. How could you have an opposition that says . Anna they said they will back a general election, but they want to make sure a no deal general election does not happen. Yesterday thatid they want to have a referendum before an election. That means they want to take control of the government, have a parliamentary coup, and then not have an election toward the middle of next year. I think people would be utterly furious. Anna they could form another government within the rules. It is within the rules of this fixed term government. I think what people across the country would feel is how can this happen . How can you have a complete change in government from some form of centerright government of conservatives to a marxist government . Without a general election. Anna the reason is he did not even have a majority at the last election under theresa may. Possible his is the lesson the country will work out and learn is that there is a fundamental flaw, that you could have such a dramatic change in the current government without a general election. That is a coup. Anna we will hear from the tories later. They will talk about what they want to happen. What kind of deal will you do with the tory party . We made an open and generous deal that is still there. We said that if you hand back a ,lean blake break brexit than if you have a clean break brexit, we will not stand against a conservative mp we will take on the labour party in the heartland and all our polling shows we could win numerous seat in the various parts of wales and deliver a majority. Anna thanks for talking to us today. Member of the European Parliament for the brexit party. Matt thanks very much. Anna edwards in the green after this historical Supreme Court decision. Lets get to the top stocks. We go to Annmarie Hordern in london. Annmarie good morning. Im taking a look at total this morning down more than 1 . A lot of the oil majors are getting hit. U. S. ,dustry report in the signals that aramco is restoring capacity after the attack on their facilities. The biggest gain around one point, but it is up 0. 5 . They say they are on track for next year for their financial results. Than 4. 5 this morning after they announced they are raising the cost, the estimated cost for the Nuclear Reactors they are in the u. K. They are raising it by as much as 2. 9 billion pounds, and that is really driving the price today. Matt all right, thanks very much. Keeping our eye on those individual movers. Coming up, we have the biggest names in business and government gathering at the annual Bloomberg Global Business Forum in new york. We have the Top Bank Executives like jamie dimon, David Solomon, Michael Corbat all coming up live here in bloomberg. Welcome back to bloomberg markets. This is the european open. We are 20 minutes into the trading day. You can see red arrows across the board. Milan is down more than 1 . China is preparing to buy more u. S. Pork is negotiations the twonegotiate countries is set to restart next month. The bad blood between them came to the general fore at the uns General Assembly as President Trump used his speech to complain about chinese trade practices. We had an exclusive interview in u. S. One of the the trade war is one of the biggest risks facing the Global Economy. The aggregated risks are affecting the markets and it is creating a defensive posture among the markets. The biggest risks right now are really around the u. S. China trade and the Global Implications as it relates to the u. S. Economy. If you think about the juxtaposition of fed policy and the u. S. Growth, that is driving peoples decisionmaking on Asset Allocation right now. The capital flows from m a and ipos, is it starting to slow down as a result . The Capital Markets are wide open. It is still a very good time to transact. We say a regular flow of activity. It is certainly a little bit less constructive than it was six or nine months ago, but we see a wide open marketplace. Is the slightly weaker consumer, is that an indication that trade pieces are starting to come back, starting to impact to the u. S. Consumer, which has been the one pillar of growth . The economic view would be that the Manufacturing Sector in the u. S. Is clearly slowing down operating at a 0 growth rate. That is 10 of the economy in the u. S. The economy in the u. S. Is driven by the consumer and that data is pretty strong. You will see low to mid 2 growth in the consumer economy, which takes the economy to the 2 growth rate from 2019 until 2020. We are watching the data carefully and watching the geopolitics alongside that. Impeachment proceedings that have started or been initiated it seems, they were quickly a drag on the markets overnight in the u. S. Do they become a longerterm drag on the markets or is this a buying opportunity, the one we sell for example in 1998 over bill clinton . Play out for the markets . One of the things going on in the markets is the risk premium on politics and geopolitics is elevating. We had a pretty modest amount of risk premium in the marketplace around the broad category of geopolitics. That is starting to change in our view. The u. S. Election is an element of the broader risk premium that is going to be injected into the marketplace. Matt that is the Goldman Sachs president and coo john waldron speaking with Tom Mackenzie in beijing. Strategistmarket from ubs is still with us. What is your take on the state of the consumer . There are a lot of investment plays you can make surrounding the consumer. Of course. For me, the consumer is starting to soften, but from really robust levels. What we see when you look at Consumer Confidence in particular is that it rarely treads sideways for very long. It normally swings in peaks and troughs. We are asking whether or not you can still see new highs being made in Consumer Confidence and that can continue to drive the u. S. Economy or whether the data is indicative of something . I think the ongoing political uncertainty, be it in the u. S. Domestically or around the trade tensions, they are starting to weigh on the outlook. Aboutwhat do you think the u. S. China trade tensions . There is a lot of talk today about pork. Yesterday, there was talk about soybeans. Each day, we get some little bit of news that does not seem to move the needle. Hugh . I think that is right my interpretation is that these are gestures of goodwill from both sides. Tn off a potentially more constructive negotiation and a couple of weeks, but really you come back to the structural issues. It is much broader than trade. Particularly in the technology sector. I think both sides feel this is really a zerosum game and that particularly from a u. S. Perspective, the support that the policy in china are providing to Domestic Technology companies is really threatening the ability of u. S. Tech companies to be globally dominant in this marketplace, so im not reading too much into getting overly hopeful over a substantial deal in the weeks to come. Before 2020,out before the elections . Will we get a deal . Hugh i think we have learned that china are being patient in this scenario and are willing to wait this out, so i dont see a rush from either side to come to a structural conclusion of these issues. It is important to note that there is broadbased support within the u. S. Electorate for a tough stance on china. I think it would be wrong to assume that if we did see a democratic leader taking over next year that all of these issues would really go away. Matt all right, thank you very much. Global Market Strategist at j. P. Morgan asset management. Today is the first day of trading for a muchanticipated Software Company listing in frankfurt. Shares have opened up their ipo price despite the demand for highgrowth European Tech companies. Some have voiced concerns about the lofty valuation. With the details is dani burger. Some big demand because this is the biggest german tech ipo since 2000 and a lot of the reason people want to get into this is because there has been a dearth of listings in europe. There have only been 88 listings so far. That is by far the fewest in a decade. This is really a rarity, it is a fastgrowing tech company that generates cash and an operating profit. But there are still plenty of risks when it comes to this company. The deal values the firm at about 17 times billing. Byxpect their net debt the end of the year. There is a lot of german macroenvironment headwinds that are going to impact shares. Shares may be would have popped higher today, but because the market is falling, it is only up just a bit. It is more correlated to the market. I talked there is confidence the firm can get a higher valuation from the private equity behind the listing. They say the growth will allow them to service their debt and they come out a winner, retaining 58 of the listing. They said one of the big reasons they are bringing the company public, they get more liquidity in that position, so they can slowly ask that a company that they are very optimistic can see some high returns. Matt . Matt all right, thanks very much. Teamviewer has slipped slightly from its ipo price on the first day of trading. This is bloomberg. Erg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. 30 minutes into the trading day, lets get your headlines off of the bloomberg terminal. Residential harassment. Witchhuntmp cries again as he could face impeachment proceedings. Boris johnson in crisis after the Supreme Court ruled his suspension of parliament was unlawful. We are live in westminster. And oneway traffic. China prepares to buy more u. S. As President Trump uses berate them. Ch to it isne lagarde mediocre growth, a trick because threat,tially one major which is, you know, the trade war that we see. Matt good morning, welcome to bloomberg markets. This is the european open. I matt miller, and in the u. S. , a formalump is to face impeachment inquiry. Speaker nancy pelosi says the u. S. President has violated his oath of office and obligations under the constitution. Witchhuntd the move garbage. Derrick, talk us through the process here. Reporter sure, matt. I think the process is a little hazy if you have been following along with politics. It does get really complicated really quickly. So President Trump has been under investigation of some form or another were quite a long time about a range of things. Areink your viewers familiar with those, we do not need to rehash those. This is different. Here is why it is different. This is a move that starts the process rolling towards impeachment. Theachment would be if house decides the president actually broke a law of the definition high crimes and misdemeanors. Basicallyouse would have to go and legislatively indict him. The case then goes to a jury, which is the United States senate, and the senate decides whether or not to convict or acquit. Very, very, very infant stage of all of that. Are the chances, especially with Mitch Mcconnell leading the senate, trump actually gets kicked out of office over this . Matt, the question of impeachment is not just a question of legality. Even though it is a legal question, it is also very much a political question. When i am thinking about that question, i ask myself this the senate is controlled by republicans, right . So the question of will trump get removed from office by a Republican Senate is what are the chances that republicans in the senate vote to get rid of a republican president , donald trump . That is sort of the way to be thinking about this year. Now, what you are likely to get over the course of the next months, plural, as this goes on is that youre going to get a lot more information about what is going on with the central crux of the complaints, and the crux of the complaint is that President Trump has been asking or suggesting or wanting the government of ukraine to go dig up shirt on joe biden and his son, hunter biden. York mayor,rmer new rudy giuliani, has been traversing across ukraine, trying to gin up some interest, trying to get that done. Now the russian inquiry, a totally separate then, the question there was with whether President Trump had been colluding with a foreign power to help his campaign. Now, the question is whether or not he has directly asked someone to help influence the election from abroad. It is a similar charge but a little bit more of a direct link here. Matt yes, was there any quid pro quo is probably the main question here, and then if so, what do they do with that . Derek, thanks. Joining us from singapore. Now, Christine Lagarde is coming into the European Central bank as the first woman in history to lead the institution. Lacquargs francine asked her if she had any doubts about the job. Garde i had several issues, and one was i love the job i had at the imf, and i loved the people i worked with at imf, the relationships we build, and what the institution required. It was well positioned, but i think we, through hard work and brain andcus and the the heart, i think we maintained it at the core of the Global Financial safety net. Ne reluctance that i had. The second one was the thing that everybody assumed. Oh, she has never been a central banker before. How can she do that job . And i am not an idiot, and i do not have enough vanity to assume that i can do anything, so i talked to a lot of people who had been Central Bank Governors whom i trusted and who knew the , and they all supported me, and they all confirmed that, yes, under current circumstances and given the strength of the institution and the situation we are in in europe, i had to say yes. To saye because you had yes because you are the right person or the female leader, the first female leader . Rde i do not think it was the female thing, when people do the casting. The former Central Bank Governors and current Central Bank Governors, the point they made very clearly to me and which i believe as well is that a lot of diplomatic skills, political sense, understanding of the perspectives of finance ministers and euro country leaders, all of that will matter deeplyy more than a acquired, ingrained Market Experience or Monetary Policy determination. I have seen Monetary Policy players at their game for the last so many years, and i was a finance minister myself for four years, so i have seen that, and i think that there is such a inong and intelligent and powerful staff within the institution that i will get the right support, the right expertise. There is a fantastic member of the board who is, himself, a former governor of the central bank of ireland, and the Board Members are talented in their own respects, as well as staff, which is really solid, so i will try to listen to alternative voices, as well, because that is a must, but i am looking forward to working with all of them. Ecb that was incoming president Christine Lagarde speaking with our own Francine Lacqua at the global form in new york. We will hear from other bank executives, world leaders, including jamie dimon, narendra modi, and more. This is bloomberg. Matt welcome back to the european open. We are about 45 minutes into the trading day, and we are still seeing some pretty substantial drops of more than 1 , in fact more in paris and milan. Lets go to london. Good morning, naomi. Naomi could morning, matt. Chinese companies are preparing to buy more pork as talks will restart coming up. This is one day after President Trump used his u. N. Speech to hit out at china, saying beijing has failed to make the nation more bull market friendly. And the u. S. Is looking at the dispute over year subsidies to airbus. We have learned washington is considering an approach that means it may rotate products subject to tariff. It creates uncertainty and means the u. S. Could hit as Many Industries as possible. Is scandal over gucci widening. Bloomberg can report that some are being investigated for tax avoidance. This was from 2011 to 2014. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Matt . Matt naomi there. A crisis,son faces the Prime Minister cutting his trip to new york short after the u. K. Supreme court ruled he had broken the law by suspending parliament, really advising the queen to do it. Our reporter joining us from westminster. What have we seen . Les, yes, lets take a look at that. Boris johnson on his way back from new york. We will start the sort of probe rexitthats the prob side, and this is also involving lady hale. It was explained to me that this was a reference with some of the members on the team helping me out. I was not entirely clear on this. Playing it straight, the Prime Minister flies back to chaos, and we will see the house of commons and house of lords doting, 11 30 a. M. , and we not know yet when we will next year from the Prime Minister, but, of course, we are awaiting that. And to go to the remain side, they are chronicling the history of vermeer ships that have been short. They mentioned the premierships that have been short, former Prime Ministers who did not serve for very long, and a special thing waiting for you, Boris Johnson with 63 days so far. This goes to the heart of one of the questions, which is whether anybody will be forced to resign as a result of the Supreme Court ruling. Boris johnson said he will not resign, and he has expressed support for others. There have been plenty because for people to resign. We will see if that continues, and we will see what actions we see from the Rebel Alliance and whether they can put something meaningful in place. Well, first of all, that reminds me to renew my subscription to the daily mirror. Also, i wonder if the Rebel Alliance will Stay Together here. Bigrter yes, that is a question, because were member, the alliance was brought together by a no deal brexit, but there is not much that binds them otherwise, and they have very different views on a whole host of things, even different views on whether or not there should be a brexit, but we will see if they manage to hold together. They took action, you remember, before the prorogation that never happened, and a bill, which meant that Boris Johnson had to go to brussels to ask for t does noton so brexi on october 31. Ke perhaps they want to put in place more legislation and get more support to the idea that they can prevent a no deal brexit. We heard from the man he used to be the attorney general, one of the key former torys in that remain alliance, if you like, against Boris Johnson, and he said, we will not go out on accident on october 31. There is a key question if the rebels can come together. We have also heard from the jeremy corbyn. They will try to get rid of Boris Johnson, essentially, but to do that, they would have to decide that they can form some kind of alternative government, and that is not entirely clear either. We have heard from the labour party, and they want to make sure it that they have something on the table first. Matt the pound is responding. And in westminster, look at the Current Situation in terms of brexit and post the Supreme Court ruling. Brings in thek grownups, replacing theirs ceo as they look to save their ipo. Ceo as they their look to save their ipo. We bring you that story, next. It is not in the baseline to have a recession. That said, it is mediocre growth. Because of,k essentially, one major threat, which is, you know, the trade, the trade war that we see either developing or brewing and the uncertainty that it generates for investors and for anybody making economic decisions, but what i think was called the tragedy of the horizon, which is the Climate Change impact on our societies and their economies. That requires action now but will produce effects later on. Matt that was incoming ecb president Christine Lagarde speaking with Francine Lacqua about trade and how it continues to be the number one risk to Global Growth at bloombergs annual business form, global Business Forum in new york. Now, donald trump used his speech at the uns General Assembly to hammer away at various issues, decrying chinese trade practices and uncontrolled migration. He criticized globalists and warned about unregulated social media, but the main topic in new york was iran. Here with more with the United States and the Islamic Republican and the Islamic Republic is our reporter. Reporter the America First vision was on display. He complained about his adversaries and warned about uncontrolled migration, and one of his biggest complaints was directed at iran, when he calls. He countrys bloodlust President Trump no country should subsidize irans bloodlust. As long as their menacing behavior continues, sanctions will not be lifted. They will be tightened. Iranter trump did offer thelive branch and that u. S. Is never believed in permanent enemies. The world is now waiting to see what the iranian president says when he responds when he takes the podium. We got a glimpse when he spoke to fox news last night. Take a listen. Bump into onee another if we seek to pursue higher goals to benefit both countries, both people. It must be planned, and talks must be based on those plans, but prior to that, we must and theutual trust, trust is something that mr. Trump took away from this framework. We had an agreement. Mr. Trump exited without a valid justification and illegally. Reporter hearing from both ouhani, butrump and r Emmanuel Macron is still trying to play mediator. He used his time at the podium to try to fuse the tensions between washington and tehran. I very sincerely and profoundly believe that the time has come to resume negotiations an, and the u. S. , ir regional powers which are, first and foremost, affected by the security and stability of iran. On said it would be bad to go to new york without meeting trump, but at the moment, matt, the does not seem to be in the cards. Matt i reporter covering the turmoil between the two nations our reporter covering the turmoil between the nations. Thank you. The ceo has stepped down, adam neumann. Himscrutiny that was over was a significant distraction, and it was in the companys best interest to step down, and there now, andoceos right their goal is to get their ipo on track so they can get the money. Joining me is a Bloomberg Opinion writer in berlin. So what does this mean for their ipo prospects, and what is the clause here that is important . They need to get an ipo before they can get access to another 6 billion in funding . Reporter matt, good morning. It is extraordinary from weworks perspective. If you remember, mr. Neumann, his name was mentioned countless times in this document, and now before they are going public, he has been cast aside, and they have brought in two coceos, so his role will be less going forward, and what they seem to be wanting to do is bringing some adults into the room, an accountant, somebody also with a background at serious companies, like oracle and amazon, and then hopefully, in time, giving investors more confidence that this is a company they can invest in, but several problems remain, not least the fact that this is a company burning a lot of cash, and we were hearing may have that wework to consider job cuts, perhaps toning down their growth somewhat, and then you have to ask yourself, without their supposedly visionary leader and without the half redhot what else . Matt the softbank involvement, will that continue to be solid here . Going toll, there is be a lot of pressure on softbank, if they cannot get the ipo quickly. Somebody will have to put in cash, and the most obvious port of call is softbank, who has put in the most money so much the most money so far. Matt thank you, chris. You can get all of his work and that from his colleagues on the terminal and on the bloomberg. Com website, as well. Now, we will hear from a host of other executives when we go back to the global Business Forum. Jamie dimon is coming up, David Solomon is coming up, and tidjan up, as well. Ming this is bloomberg. Impeachment inquiry. President trump could become the fourth president in history to face antisemitic proceedings. Trump calls it a witch hunt. Impeachment proceedings. Trump calls it a witch hunt. We will speak to regina miller. Christine lagarde contraction is not her base case, giving her the biggest risk for the economy. It is mediocre growth. It is at risk because of, essentially, one major threat, which is, you