Democrats actions are tantamount to treason. Ton has a, pellele poor showing this week. The eu starts to question Boris Johnsons ability to deliver the brexit deal by october 31. Talks resume in brussels today. Matt less than a halfhour from the european open. Dax futures gaining. 0. 2 . Utures up it does look like we could have a risk on start to todays trading session. Look at thehave a futures which suggest movement. Troubles by some of the distractions on capitol hill. Waiting for new headlines on trade and the Global Growth story. We see some weakness. When you look at the japanese markets, a lot of exdividends. Probably speaking we see weakness. The overall market is expected to go higher. We could see weakness in technology. Micron not as optimistic as they were. Andee the tech heavy index look for some reaction in the european markets. Lets talk to our colleague mark cudmore from the mliv team. You about our question of the day, what is needed to stop this flight to safety . Have an overall theme in the last few months, whether it is gold or the yen or treasuries or mutual funds, we have seen this theme but we still have u. S. Equities near the highs. It is confusing investors. What will be the catalyst to the flows into haven assets doing wrong, and everybody should get on board chasing yields again. What if the havens are correct and u. S. Equities are wrong . The trade war does really matter. This keeps him looking like we are close to deciding which side will win, but im not sure we are that close. At some point we will have to face the two sides. I am in the bearish camp. Getting muchnot accommodative policy from Central Banks as the market would anticipate or appreciate. Do you agree . Getting central bank easing. You have to go back in time frame and context. Compared to a year ago we are pricing in an exceptional amount of easing. 10 months ago, november, every Major Central Bank was move, now as the next many have eased already and more easing is priced. And dojtral banks, ecb are the best examples, they will struggle to do more than they have already done. It is hard to move rates lower than they have got them. It is like pushing on a string. The fed still has ammo. Overall, the easing is priced in and that is one of the drivers. Anna what are your thoughts on technology . I have read about how it is performing in the u. S. , and maybe thats the problem with ipos coming to the market calling themselves technology, and that is not the sales pitch it used to be. Onron seems to be weighing some of the tech stocks in the asian session. Mark technology is a key sector for not just the u. S. Market but also global markets. It is so important for driving all the u. S. Equities higher. What really matters is what is happening in tech. Ipos asthese collapsing a sign we are reaching the end of the tech excitement. This does not undermine the fact that some of these companies are exceptional and will last for a long time. Fromll remove the froth the more tenuous ones. Matt are you a cyclist . Mark i am a cyclist but not a peleton user. Matt i want to get back to the markets and that the repo market fix may take half 1 trillion in treasury purchases by the federal reserve. Do you think we will see the fed get back to qe by another name . Do you think it will be something of that scale needed to fix the repo market woes . I absolutely think we will get back to qe by some other name in the next couple months. Hard to span is predict, but i think we might get there. Not the expert, other people are more qualified, it does not surprise me that a half trillion was mentioned. Cudmore,nk you mark joining us with his thoughts on the markets. The overall session in asia down by 0. 6 . China, we areut approaching the countries done war with the u. S. Has little for the financial system. A meeting with top regulators in beijing today, and other senior officials will meet with members of j. P. Morgan amongst others. Global banks are seeking to compete for an estimated 9 billion in annual profits. Lets talk about china and were growth comes from. Michelle qi, cio china, Eastspring Investments joins us in london. Muchlked about china, how is this a key for future growth for the companys you follow . Think the purpose of opening up the Capital Market is to bring inflows into the market. A open Capital Market will help china to raise more money from the Capital Markets rather than borrow from the banks. That will help Chinese Companies on the Balance Sheet. China needs foreign capital at this stage area and anna you think china needs to move from in some cases. How far is china from that . Michelle looking at different ,ectors like the manufacturing we see Chinese Brands have to replacete a bit the european competitors. Looking tors are replace some of the taiwanese competitors. Chinese companies are quick to from the bigmand mobile phone manufacturers like apple. This is still low compared to the u. S. Waiting forors are new headlines around trade. What is your assessment of the chinese position . Market is starting to digest that, because it is back and forth. If you look at the chinese market, going back to the fundamentals of the economy and companies. Valuation, and the risk factor, i think the trade war will not be solved in one go, it will be there for a long time. Intellectual property and some of the other Bigger Picture issues that dominate the u. S. Narrative. Michelle i think intellectual properties, the chinese have done a lot over the years to increase the awareness, but also with more Chinese Companies moving to more Technology Driven like huawei. Chinese companies will need intellectual properties protected. Much,thank you very michelle qi, cio china, Eastspring Investments. Trump lashesident out which adds fuel to the democratic impeachment inquiry. That is next. Matt welcome back to Bloomberg Markets european open. We are looking at gains across the board in terms of equity futures. Could see a positive start to trade, about 15 minutes to the kickoff. President trump has used a closeddoor meeting with matt disparage whistleblower complaints over his controversial home calls with the president of ukraine. He said the whistleblower had no direct knowledge and was almost a spy. To white house attempted lock down records of the ukraine call and could offer a roadmap for the impeachment probe. Nancy pelosi raised the specter of the white house coverup. Lets get more details from annmarie hordern. Continues in d. C. The two main points you need to focus on, the alleged number of government officials were surprised and alarmed about the conversation President Trump had on july 25 with his ukrainian counterpart. Lockdown ofd in a records. The whistleblower is saying this set of actions underscored that white house officials understood the gravity of what transpired in a call. This sets a roadmap for the Intelligence Committee to decide what they will investigate and who they need to talk to because a number of names were named. Anna we have been going over the details. What are people saying in d. C. . I want to start with what trump said in new york in a closed door meeting. He equates the whistleblower to a spy. President trump i want to know who is the person who gave the whistleblower the information . That is close to a spy. You know what we used to do in the old days with spies and treason. Out, but if you talk to republicans, one was saying he was not a whistleblower, he was not in the room. Saytalk to democrats, they this is critical, and nancy pelosi raising the specter of a white house coverup. Matt you could also question what he meant by what we used to do two spies in the old days. You could posit he is talking about capital punishment, which would be a serious threat. Where does this go from here . This could be weeks if not months. The main thing to look out for, the Intelligence Committee chair said lawmakers have contacted him, and we could hear from the whistleblower as early as next week. That testimony would be at the house Intelligence Committee. Anna thank you very much for the update. Lets tell you about what is coming up here. Peleton has become the major gas latest major ipo to flop. Wework is cutting costs after delaying its ipo and outing its ceo. Iposre so many underperforming . That is a hard topic at the moment. The ipo market is underperforming and there is so , making shares all over the place tumble. A very shaky market which is having an impact on these upcoming ipos. You mentioned peloton. Year, over and lyft clear underperformers in the market. We have seen valuations in the private markets, and that is setting High Expectations for those companies to go public. It is difficult for them to perform well when they go into the public market. Reason foris the such poor performance . Who is to blame for this poor performance . I am certain with some ipos you could point to a founder or attempts at unusual governance. Easures where do you see that across the board . They are all working on the same deal, you have the founder, investors, investment banks and of course the investors backing the company. Trying to getare as much value as possible. When you are in the middle of , it is a riskyt game. Prefer to remain rather than underperform. We may see those down the road. It is challenging times for companies. Deal a very attractive that every Company Wants to pursue in the future. Very challenging times for sure. Anna thank you very much. We are minutes away from the open. We will look at stocks to watch, including commerzbank. It is cutting its outlook. Bloomberg. Anna welcome back to Bloomberg Markets european open. X minutes until the start of equity trading. Six minutes until the start of equity trading. One of the big stories this morning is the announcement last night from commerzbank that it is saying its revenue is not going to grow this year. They refer to a continuing difficult market environment. They are pointing to the corporate client business as one area that is difficult for them. Last week they outlined plans for a strategic rebound. Announcements like the one last night will only increase the pressure on the ceo to get that done. What does it mean to the share price . Analysts were expecting something along these lines, so maybe a small downward movement in the share price this morning is what we are expecting. Matt you are looking at pictures of the towers there, the largest tower west of moscow in europe. I spoke with the cfo this morning, we will play that interview shortly. Keep your eyes out for that, Stephan Engels. The potential sale of iron ore operations by divesting noncore operations. That includes iron or operations in canada, brazil, liberia. Canada is the biggest one and could be worth as much as 2 billion. Expecting a pop in shares today. Anna this is bloomberg. I think the best companys succeed as a team and our shirts from custom ink help bring us together. We order custom ink to welcome new employees, personalize team shirts, and even for company events. The design lab is so easy to use. We just upload out logo and if we have any questions, Customer Service is there to help. Seeing our Team Together in custom ink gear is an amazing reminder of how far weve come as a business. [narrator] custom ink has hundreds of products to help you look and feel like a team. Upload your logo or start your design today at customink. Com anna we will keep an eye on commerzbank. Commerzbankng closely, this has fallen 97 from its highs. The question is how will investors feel about its fifth turnaround plan in less than five years. , listen toh the cfo what he had to say. Commerzbank 5. 0 is something we developed over the last month. It is sobering one has to say. It is not the first time commerzbank is taking decisions earlier than the rest of the market. Not everybody believe that to be a good idea. It is financed with a realistic assumption of Interest Rates and the environment. It may not look fantastic or optimistic, but it is realistic. The company has a Strong Industrial base is still on the right track. For a lot of people it is a first time in their work history they are saying growth being slower, and we are not talking about recession now. That makes the discussion more hectic than it should be. Matt do you see a recession coming in germany . Stephan we definitely see Slower Growth whether we go through one or two quarters of technical recession remains to be seen. Conflict,. S. China which is going back and forth. Nd has a lot of volatility back to germany, if you look at the latest legal decisions on theree, you can debate should have been more. This is always the case. This is the first time there is also activity in the government. Matt Slower Growth we see in the Bigger Picture. At commerzbank as well . You wanted to grow 3 per year, is that still your target . Stephan the base model still has to be in a world where your revenue shrinks by the Interest Rate environment automatically. You still need to focus on growing customers and customer assets, because assets will produce more revenue. Part of need a good more assets and revenue to compensate for the negative Interest Rate environment. Yes, growth on customers and assets is a clear part of the strategy. It will be a little more focused on two things. , sois we will not be keen the focus will be at a like loans or securities. Partsly, we will redirect of our investment in new Customer Growth into making more efforts increasing our work on the existing customer base. Basically it is still a growth case in retail or private clients as well as corporate clients. Matt you are not keen on positive growth, are you going to pass on negative rates . Stephan for retail clients, this is not the discussion anybody is having realistically. Something similar to what we are doing with corporate clients. We will have focused discussions about certain thresholds, but they are far away from the normal classical retail client would look at. Matt will you have a profit in 2020 . Stephan this is the crystal we are only a few months away. That would depend on when and how and to what extent we agree on the restructuring, and whether we broke it in one piece or two pieces. That is a lot of pieces to play with. Matt commerzbank cfo, Stephan Engels who will be leaving for dansk a talking to me about the latest Restructuring Plan at germanys secondbiggest bank. Also talking about rates, we are getting headlines out of the bank of england concerning the possibility of a rate cut their even with a brexit deal. The thoughts coming ahead of that speech, this is somebody who is typically seen as hawkish. May need a rate cut even if it avoids a no deal. His case centers around how he thinks uncertainties have to do with brexit and are likely to depress growth. Even if the departure from the eu is smooth or even cancel. This has very much to do with brexit, but takes into fact that the Global Growth story is weaker. Now, lucajoining us paolini, chief strategist, Pictet Asset Management. Good to see you. Thank you for joining us. Let me ask about the Global Growth story. We have a u. K. Policymaker siding Global Growth and brexit. , and do you see it heading what does that do to your strategy . How much are you flowing into cash . That globalclear growth peak was at the end of 2017. Same,ear the story is the u. K. Is not far from recession. We see a slowdown in the u. S. We are seeing some indication momentum is getting better, but investment is flat. This is not a good sign, and i the u. S. Risks even in are quite high. Everyone thinks the u. S. Is great, i do not think so. It is a global phenomenon. Fact that the boe will have to cut rates must be the worst kept secret in Central Banks. If there is a brexit, a hard brexit, dont you expect them to cut rates regardless . Luca i think so. The u. K. Economy is part of the global economy, and we see weakness across the board. That if there is a deal everything will be great. I think there will be a cut in the coming months. Will it make a difference . I do not think so. They will almost be forced to do something, and it is inevitable they will cut in the next few months. Anna i was reading from a former labour politician. Some view where the debate goes from here, but in terms of your strategy, if we are concerned about Global Growth and the uncertainty of brexit, how underweight on equities are you . Luca it is an incredibly difficult environment. At least you have a good valuation for bonds. The problem is valuation for bonds is unattractive. Equities look like a fair value but Earnings Growth is zero. ,he main risk is investors there is a lot of interest and we feel there is the potential for bonds, less cuts than expected. We like to be overweight cash for the time being. Us, you will stick with luca paolini, chief strategist, Pictet Asset Management. Up next we will bring you stocks on the move so far this morning, falling infineon after the disappointing forecast from micron. It is having farreaching results in terms of market moves. This is bloomberg. Matt welcome back to Bloomberg Markets european open. 12 minutes about into the trading session. We are looking at decent gains especially with the ftse up 0. 9 as the pound loses some ground. Individual stock movers, lets go to annmarie hordern. This morning across the board we have chipmakers in focus. Micronn technologies missed expectations. It warned of a slump, but infineon was downgraded. Commerzbank to the downside by 2. 5 . They downgraded the revenue outlook so they do not expect revenue to grow. The cfo saying they can grow revenue by 2023. 2 . Ore group up over Morgan Stanley has raised them, concerned about concerns about argentina are overdone. Anna quick word on the pound. Sizable moves this morning. The u. K. May need rate cuts even if it avoids no deal. The pound dropped by 0. 4 . Gives sohy the market much credibility to this change of view. Lets talk about another european economy, the french government unveiled its 20 budget 2020 budget. According to the draft, the lowest income tax rate will be cut to 11 from 14 . Housing levees will be phased out, and low earners will get a bigger bonus. Spending will hinder a manual macrons fiscal reform. They would outpace germany. Seems there are some gifts to the yellow vests. What are the highlights . It really is a yellow vests budget. You have about 10 billion euros of tax cuts in the french budget. Tax cuts will be for households and families. Only one billion euros for businesses. Some of these tax cuts, the income tax will be lowered and represented by 300 euros per year for an average of 95 of the french. The housing tax will be for 80 of the french over the next three years. , after thel bonuses yellow vests protests, and all a slowdown ofte the french economy, despite impact it will have on companies. Slowdownis despite the in terms of progress in reducing debteficit and the french which is close to 100 of gdp. Iswas summed up saying this not a technical budget, we had to react to the social crisis. These are political choices. With the president ial elections looming in 2022. Matt thank you for joining us. The french budget very important considering we see so much there that we do not see out of the budgets in berlin. Lets get back to luca paolini, chief strategist, Pictet Asset Management, he is our guest cohost for the hour. Are you impressed with what you see out of france . Would you like to see similar moves out of germany . That we is important have artie seen a pickup in spending. It has changed in circumstances to we need to do something, that is a big change. We see this stimulus in france, i think we are already seeing a change in the debate. And some real action. This is news that is optimistic for europe. Anna why so optimistic . You talk about corporate earnings stabilizing in europe. Is that what you expect to see given what we have seen from germany, and the trade tensions that do not directly target germany, but it is catching germany in the fallout. All of this in terms of the trade war, it is important , wheness we are obsessed we look at the european economy, what you see is a Resilient Service sector. A high. Ding at that is good news. Europe is europe. Seems to be worried, so for us it is an opportunity to increase our exposure. , chiefuca paolini strategist, Pictet Asset Management, our guest cohost of for the hour. Up next, a flash in the pan, rotation for momentum to value stocks ends as soon as it started. Will there be any reprieve for hedge funds . We will bring you the analysis next. This is bloomberg. Anna welcome back to Bloomberg Markets european open. 21 minutes into the trading day, and a slightly different picture, we have some Technology Stocks moving lower in europe but the overall moves on European Equity markets is upside. A crash in momentum stocks came out of nowhere, and hedge funds, 5 in the first two weeks in september. This blindsided us when it happened, and now it disappeared. Dani when it did blindside us, the real sufferers, the low momentum for hedge funds fell 5 in the beginning of september. Antst of wants qu suffering. Fundamental managers love momentum, so we see losses across the boards. There may be some reprieve because that rotation might have been a blip. We are seeing momentum on the leaderboards. This is over the past week, momentum up 1. 6 . Value basically flat. Pickup in yields, the benefit is value. A of financial stocks here. Analysts expect this to continue. Barclays has an interesting argument im a they say it is all about taxes. One form of tax efficient investing, this has to do with Capital Gains taxes. , trump says he can move and cut Capital Gains taxes without congresss removal. We see momentum fall, then trump says he is not going to make a move on Capital Gains tax, and that is when momentum goes back to normal. This is people trading on tax headlines, it is just a blip, and we should not see rotation continue. We should can matt thank you very much to dani burger talking about the rotation cause and effects. Luca paolini, chief strategist, Pictet Asset Management is still with us. What are your thoughts on this rotation . It now looks like nothing. Luca if you look at the performance the past few years on growth and negative value, what is important is when you look at valuations and stocks globally, it is a cyclical value and cyclical growth. Some banks and mining stocks, we believe the global economy, some of this is cyclical and can do quite well. That is just a tactical trade for the next three to six months. Anna let me ask you about where the fed goes, if we see this slower Global Growth story which seems well documented, the fed has taken out insurance against that. We have a chart that shows rates,expectations, for they have been assuming rate cuts. There are signs the market is rising to meet the fed a little bit, the market does price and one marquette between now one more cut between now and january. Luca i find it incredible the market is set to cut three times in the next 12 months, and expect earnings to go up. I the fed cuts three times, feel there is too much optimism. And too much optimism on earnings. Year i rate cut this think is unlikely but possible. If there is no recession, the fed will not cut. Matt if the fed boosts its Balance Sheet in a big way, will that make a difference to your outlook . Luca the Balance Sheet of the fed is an implication of value, there is more liquidity in the market. Is it going to make up the difference . I do not think so, i think a lot is already priced in and the fed will be cautious. You think we may see a recession coming to cut rates further . Luca i think they have to wait. The insurance cut is done. Next year nobody knows. I think growth will be weaker next year. Anna thank you Stephan Engels, cfo, commerzbank. Up to luca paolini, chief strategist, Pictet Asset Management. The revelations of the whistleblower, we will have the details, what difference does it make to Investment Strategy . We will talk about all of that. This is bloomberg. That moment you walk in the office and people are wearing the same gear, you feel a sense of connectiveness and belonging right away. Our shirts from custom ink help bring us together. [announcer] custom ink has hundreds of products to help you look and feel like a team. Get started today at customink. Com trading day, lets get your top headlines. President trump lashes out at the whistleblower, fueling impeachment inquiries. Say the whistleblowers actions are tantamount to treason. Peloton because the latest Public Offering to slump on opening day following a poor showing in frankfurt. And commerzbank 5. 0. Pricesvenue outlook and plunged after unveiling a new plan. It is sobering late realistic, but it is not the first Time Commerce has taken decisions little earlier than the rest of the market. Matt good morning, welcome to Bloomberg Markets. I am matt miller in frankfurt. Will play more of that interview throughout the day. I am alongside anna edwards in london. Anna indeed. Nice to be in the studio. Half an hour into the trading day, european markets are up by. 3 . Interesting to see the contrast. It is not a day for the individual stock movers third commerzbank has been there with a realism that seems to have dropped off the losers board. A mixed bag, really. The downside, lets see what we have got your got. Imperial brands is down by 2. 6 . We have focused a lot on tobacco and other products. We had a warning from macron technologies, which seems to have influenced the way semisolid are trading sem isticks are trading. News. Lets get first word the bank of england may have to cut rates even if the occasion avoids a no deal brexit heard that is according to a policymaker. His comments are sharp departure. Previously considered the most hawkish member of the Monetary Policy committee. His argument is the brexit uncertainty will continue to toa growth compared suppress growth. Richard clarida is reexamining the strategy and would make up for past deviations from its 2 inflation targets. Carrie lam is taking blame for the entire unrest rocking the city as the government is looking to reduce tensions ahead of the 20th anniversary. This weekend could see more mass demonstrations and police have gone for a application for a rally. Organizers say they will go ahead without police approval. Saudi arabia is dropping its strict dress code for foreign women as it attempts to boost towards. Used to have to wear a flowing cloak that has been a mandatory for decades. This is going to be clear in the online visa applications. Saudi women would like to experience it and see it as part of the culture bird some will decide not. Global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, mass matt . Matt thanks. Linet to pick up on a involving commerzbank. A half billion euros of real estate are going to be sold does commerzbank, interesting considering they are in the process of selling assets to fund job cuts and the new Restructuring Plan that has been put in place. At the same time, it looks like it is going to buy 2. 5 billion buy 2. 5 billion euros worth of real estate assets. Anna . Anna this is all according to people familiar with the matter. This is all according to people familiar with the matter. The announcement could come as early as friday and includes stores in berlin, frankfurt, hamburg, and munich. The u. K. May have to cut rates even if it avoids a no deal brexit according to the bank of england. The comments are sharp departure from someone who was previously considered the most hawkish member. Of our is the head european mliv blog, middle east, and africa. Let me ask you about the latest lines and then get to the broader market. This has had a weight on the pound. Where are we now . The market did not expect this. That is why we are seeing this reaction. The market has looking at until this point was a boe that has been very measured when comes to indications for policy and what happens with brexit. They have maintained that optionality. Either way, rate cuts could go either way. This is really a departure from all of that and that is why the market is reacting in such a way. What is the market expecting in terms of rates . Ive heard mark and other bank of england members talk about raising rates, but i have never whod anyone in the markets is really a buying that. Even with the inflation issue. Not really. We have seen his markets inching towards pricing a full rate cut for 2020. No one is really buying the case for rate hikes into brexit. But they have not been unwilling to price a full rate cut for next year up until now. Not heardid, we have an indication from the boe that a rate cut is on the table. Uncertainty. Evenhave maintained that as recently as the last boe rate decision. Just from reading the statement itself, you can tell they are holding out hope that there is possibility for a rate hike. Brexit aside, conditions in the u. K. Didnt warrant a weight a rate hike. Andation was above targets that is something they were very of. But this might be a bit of a game changer. Him interesting to see talk about how uncertainty should not be a recipe for policy inertia. For long time, they have just said the bank of england will not do anything that they are suggesting he could ends up end up with this uncertainty. And in that context, they should not feel they cannot do anything. Let me ask about the broader markets. We did see a lot of optimism in equities today. A real contrast to the asian session, which was weighed down by concerns around Technology Stocks and other issues. I think it has to do with a lack of bad news that is definitively driving the european markets. We have had a little bit of a quiet, or at least the truce, on the trade war front that is something european stocks and markets that are very exposed to the trade war story have been watching, and so there is a little bit of relief there. We have known that the european economy is in a bad state for a while, so that was kind of the big story late last week. I suppose that is petering off a little bit just because there has not been any new reminders of such thing. Rather than a big driver of optimism, i would say it is the absence of bad news. Thanks very much. We will let you get back to mliv. Our viewers can access it anytime on the terminal. Sometimes, you can find it on the mobile device. Next, we will bring you stocks on the move, including are slower mattel. Reviewing mittal, canadian and brazilian iron or asset. Ore assets. This is bloomberg. Anna welcome back. A positive session for European Equity markets. Weakness of the pound having an impact on the ftse 100. Lets get to the stock stories. Annmarie hordern has a rundown for you. Annmarie first, arcelormittal up 2 looking at potential sales of key assets in canada and brazil. The canadian one could be worth 2 billion. Looking to divest. Norsk hydro to the upside. They were out with news that a Brazilian Court has lifted an embargo that brings an end to 19 months of production curves on its key plant. This is the largest aluminum plant in the world. We know that is in everything from airplanes to beer cans. Ado in germany is up 3 . They announced a real estate sale selling a portfolio at good prices. This comes after all of the talk of rent freezes. This is quite positive. Matt get out while the getting is good. Thanks, it thanks. Lets talk about another major ipo to flop. 11 oneloton, felling its first day. That prompted endeavor to postpone its listing before it went public, and of course we have all heard way too much about we work cutting costs after its ipo disaster. Joining us is our deals reporter. Why are so many ipos underperforming . Well said. Choppy markets out there. It is becoming extremely difficult and challenging for companies to go public. Since the beginning of the year, takeover or left. It is just frantic. Hey underperformed bigtime we just saw them slumping theerday and pulling at 11th hour. It is really difficult and we will see what happens in the coming months. Markets are going to continue being volatile. We will see what happens. Companies and founders may have to reassess their thinking around evaluation. Probably lower their expectations. Better to have a clearcut deal rather than one that underperforms. Anna this is a difficult question to answer, i know, but who is to blame for the poor performance . Is the Banking Sector pricing them wrong . Is the market fatigued with technology . Here . S to blame fantastic question. It depends on who you ask, right . There is a lot of fingerpointing after these flops. At the end of the day, they are all in the same boat. They want the deal to succeed and it is just the uncertainty around market that is not helping anyone here. Investors backing these private companies have pushed valuations to a really high level, so that is making it very difficult for those valuations to continue in the public market. Are trying toks get as much value as possible and making it very, very hard for this companies to perform well at the beginning of trading. Look into need to here is the longterm picture and see how these Companies Perform and whether or not there is growth available longterm and profitability to come. The longterm picture is what we should be looking into, but definitely challenging the difficult markets at the moment. Matt thanks very much. Bloomberg deals reporter talking to us about the ipo difficulties we have seen in recent days. Up next, saudi arabia opens its doors to tourists and seeks to be a topfive world destination by 2030. The kingdoms tourism minister. This is bloomberg. Anna so if you are not put off and you feel like flying. Your not put off by all about flight shaming sticking to the travel theme, saudi arabia will allow easy access to the kingdom for the first time ever. Exempting them from the strict dress code that has been a hallmark of the society. The chairman of the commission for tourism and National Heritage told bloomberg how the country will change. Plan for 100 million visits from 40 million today and to become one of the top five destinations globally. Jobs or thering contribution for jobs in saudi arabia coming from tourism from 3 today to 10 , the global average. Lets talk about the Investment Opportunities. Obviously, Foreign Investors are interest. What kind of Investment Opportunities will they be able to participate in . Massive we are targeting the tourists and then investors. Have to deliver and achieve 100 million visits by 2030. Seatsessed the gap in the have a gap ofd about 250 million streets seats. Therefore, we invite airlines to carry more passengers heard what it comes to the airport, we need to increase the current capacity by 30 in at least the main airports. This is a massive opportunity for Construction Companies for engineering companies, for many, many investors. Then, cars, hotels,estaurants, lifestyle, malls so on and so forth, we will have a gap of 500,000. 250 planned to be delivered by the government. So on and so forth. 250,000 keys will come from the private sector. Encourage the private sector and the investor to come and explore the massive amount of opportunity from opening tourism to the world. That was the chairman of the Saudi Commission for tourism and National Heritage. Joining us for more is our golf economy and government reporter. Gulf economy and government reporter. First, good job of that interview. Second, how big of a change is it . I recall it being difficult together to go there. It is a huge change. Moving in ais liberalizing direction for three or four years and we have started seeing that when they allowed women to drive. They have relaxed gender mixing rules. Their opening cinemas and more Job Opportunities for women. , they have started situations where they allow women to get their passports and apply for licenses without needing the consent of a male family member. That thosell changes who knew saudi arabia would not believe is happening. So this is a reaction of the requirements and is another change that is happening in saudi arabia that many would not have imagined would come. Anna what is the new a visa process . Is it difficult to navigate or quite straightforward to jump on to riyadh . Ct citizens of 49 countries will be able to go ahead and apply for visas online. Others will go to embassies. This is a change because saudi arabia was a closed place to tourists. You had to either be a pilgrim or have to be or to get a business visit. But the changes in the oil prices causing the government and to rethink the economy open up the sector as a way of bringing in foreign money and employing their citizens. Anna thank you very much. Bloombergs golf gulf toorter on these attempts open up the saudi arabia economy and society. Still some way to go, of course. Thats it for the open. Stay with bloomberg television. Up next, we have got surveillance. The ftse 100 outperforms on a weak pound. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Nejra President Trump lashes out. Sounders f englands saunders says they may need a rate cut. We have been speaking to the cfo of the bank. It is it so realistic, one has to say. But it is not the first time commerzbank has taken decisions earlier than the rest of the market