London and various european capitals on whether or not Boris Johnsons deal will fly. The lira trading lower by around a percent today. I suspect that has to do more with Interest Rates than what is potentially happening in syria. Vonnie hsbc looking to cut 10,000 jobs, dropping its french Retail Business entirely. The interim ceo looking to potentially take the reins on a permanent basis. Banks begin reporting next week. We are with mike mayo, wells fargo managing director and head of u. S. Largecap research. Not a huge amount, but still, 10,000 jobs is very substantial. Does hsbc need to rethink its strategy and potentially become a china vanke once more . Mike i think all banks globally need to rethink their strategies. A response to slow revenue growth, what do you need to do to control the bottom line . Control expenses. One way you do that is with technology. Benefit of technology at banks is in the nontechnology space, and that comes down to headcount. Youre seeing that other banks, so whether it is 10,000 jobs here or 10,000 jobs there, in the u. S. There will be 200,000 less jobs on wall street and u. S. Banks over the next decade, so that is not just a u. S. Phenomenon. Vonnie so essentially one Major Global Bank less in terms of numbers of employees, you could put it that way. Hsbc ploys just over 200,000. A think came out with and tech report a bank and tech report. Why is now the time for mass layoffs due to technology . Mike we think this is going to be the decade of banking and the decade of banking and Technology Like never before. You are going to see a swap, bots for bankers, the biggest capital for labor swap in history. You are seeing it because customers are ready for technology, and the technology is there. Youre seeing it in artificial intelligence, big data, cloud, faster processing. The tone at the top of these banks hasnt moved as quickly as it should come about the message has gotten to the ceo and the boards that you need to adopt to technology, do it faster come up because everyone else is doing it. The other point, why technology now, is necessity is the mother of invention. With that Topline Revenue growth being so sluggish in the u. S. And globally, you need to find ways to cope with that. A way to do that is to use technology. Guy its going to be a huge week for Bank Earnings, yet banks are not trading on anything like the multiples of Tech Companies at the moment. What are those earnings going to have to deliver for the multiples to go up of u. S. Banks . Why wouldnt they trade like Tech Companies in terms of the multiples they enjoy if they are such big investors . Mike with our six month project, we worked with nine senior tech analysts at Wells Fargo Securities in the research group. Is u. S. Banks spent 150 billion a year on technology, more than any other industry. So first, if banks arent moneys worth outys of technology, maybe they should spend less on technology, or those Technology Companies better make sure the Business Case is sound. Having said that, what we think will happen, and the case for banks to continue spending on technology, is very simple. Revenues grow faster than expected, whether revenues are strong or weak. You will have Bank Earnings starting next week. We are likely to see sluggish topline growth. Then the question on the Conference Calls is how are you going to make sure that revenues grow faster than expenses. And guess what . If managements cant do that, theres a question with Business Model or management, because that is their job. One way to get that job done is with technology. Guy mike, vonnie asked a question earlier on about china and hsbc, whether it should become a china focused bank. There have been rumors floating around. We broke a story a few days back about the fact that the administration is considering portfolio flows limits, all kinds of different aspects of the way china and the u. S. Interact on a financial level. How will that affect wall street banks . Mike its harder to be a global bank. You see regulation in the u. S. , regulation country by country. The overhead cost, the Compliance Costs have become much more cumbersome to be a global bank. If you are not best in class in a certain region, you need to rethink your strategy. This goes back to a few decades ago, stick to your knitting. Stick to what you know and what you are good at. Otherwise, reconsider exiting markets. By the way, i go to the annual meeting for citigroup, the most global of the u. S. Banks, saying, why dont you become a little less global also . Why dont you sell your mexican business to somebody else . Why dont you focus more on what youre best at, even if mexico in citis case is good . Lets double down where you are doing the best job. Vonnie just explain a little more to us what you mean by the fact that technology will account for at least 200,000 fewer jobs in banking in the future. Do you mean that, for example, the back 5 to 1 3 of office staff will be reduced in place is like call centers or corporate headquarters, or that banks will go into other lines of business, syntax, certain fintech,sin tech certain types of cryptocurrency . Mike they can go ahead and reduce the back office staff and call centers and elsewhere. This is over many years. You dont just flip a switch and have this happen. If you are at a bank and you are advising or consulting a customer, if you are dealing face to face with the customer, thats fine. If you are a technologist, fine. Otherwise, you are in an area that can be automated, banks should go ahead and automate. By the way, this is winwinwin. The customers, their lives should be easier because the banks should be able to anticipate their needs easier. For the employees, instead of doing that monday night been a straight of work, they have more time to talk to the customer. For the banks themselves, they should become more efficient. We think u. S. Banks will become the most efficient in history over the next four to five years. Vonnie who is ahead of the game here . Obviously everyone is on top of this to some extent. You have an outperform rating on citi. Whos out ahead in terms of technology in the future . Goliath is winning. I was on bloomberg earlier this year saying break up the banks. The last four to five years, youve really seen a sea change in terms of performance. Bank of america and j. P. Morgan are leading the way when it comes to the use of technology to make banking easier for customers. Citigroup has the most room to improve, so we still recommend citigroup, but the largest banks , the ones with scale, have an advantage more than ever before. Take notice, the bb t and suntrust merger, which should close over the next month or two, what was the number one reason they gave for pursuing that merger . They said so that they could have more scale to make technology investments. This is the theme of the day. Guy the irony of all of this is that if you talk to people in Silicon Valley at the moment, in the epicenter of the global tech landscape, they will tell you that wall street banks are not exactly flavor of the month right now as a result of some of the ipos that have not gone well , and theres a move towards direct listing. Can i ask you what effect it would have in aggregate on the major u. S. Banks if Silicon Valley and the Tech Community decided to go a different way on ipos . Mike Silicon Valley is coming. That was in the jp morgan annual in 2014. Jamie dimon said that. So Silicon Valley is coming, whether it is for ipos or zero commissions or fintech. Those are some of the overall areas depressing revenues, and you should see some of that when banks report next week. The repo market story as well, im curious about your take on that. How do you see that playing out . Theres likely to be another squeeze toward the end of the year. What caused it . Does it affect your numbers . Mike it has not impacted our numbers right now. It seems to be not lifethreatening, but i think we all need to be in a heightened state of awareness. These things have happened at monthsend, quarterend, and yearend. There wasnt any of those, so that could raise some issues. You have quantitative easing, and that is still around here. You have fiscal policy, you have geopolitical risk. I think it makes the whole system a little more flammable, and hopefully central bankers are on the job. I think the message has gotten to them, like everyone is on the scene watching a little more closely than before. Vonnie you say in your report that there will be some addition because of technology as well. And hackingrity staff have to be ramped up and so on. Mike absolutely. If you deal with customers, banks are ramping up with that. If youre dealing with technology, banks are ramping up with that. If youre dealing with cybersecurity, you have a job for life. If you are in college right now and you major in cybersecurity or get your phd in that, that will be around for a long time to come. As a bank analyst or as a banker, Everybody Needs to be a little bit products all the. As part of my transfer a little bit part tech analyst. As part of my transfer vonnie let me just say, i always get nervous when a guest brings in a plastic bag. Mike every banker needs to be part tech. I dont really know how to be exactly vonnie oh, wow. Hes getting up. Mike im getting up here. This is part of my trance from from bank analyst to part tech. Youre going to have to help me. Vonnie i feel like we maybe need music at this part. Mike this is the transformation from bank analyst to techie. Vonnie thats what we can expect on the calls. Mike heres my hoodie to be a little more part techie. Its symbolic more than anything else. Bankers need to understand tech because if they dont understand tech well enough, they will not succeed in the decade ahead. Vonnie there you go. Mike mayo with a transformation here on bloomberg markets. Our thanks to mike mayo, wells fargo head of u. S. Largecap bank research. Here was first word news is viviana hurtado. Viviana a federal judge in new york ruling President Trump cant stop accountants from turning over his tax documents to investigators. Mr. Trumps lawyers say the investigation is politically motivated. When turkeys military launches an offense against American Allied kurdish fighters in syria, the u. S. Will step aside. That is a change to u. S. Policy. President trump tweeted, the u. S. Cant afford to be stuck in ridiculous, endless wars. China once to narrow the scope for any trade deal with the u. S. Beijing signaling it is increasingly reluctant to work toward a broad trade agreement pursued by President Trump. Bloomberg learning the chinese will not offer to reform industrial policies or subsidies. The u. S. Has complained about these key sticking points. Over to hong kong, where activists want to followup up on a chaotic weekend with more demonstrations. Erupting after hong kong chief executive carrie lam imposed an emergency rule to ban facemasks. That edict was largely ignored. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana hurtado. This is bloomberg. Guy thank you very much indeed. I want to update you on some the bed is coming up on bloomberg. Bloomberg surveillance anchor tom keene sits down with the new director ahead of the Imf World Bank annual meetings in washington. You do not want to miss that conversation. It starts at 10 00 a. M. In new york, 3 00 p. M. In london. With the liveyou pictures of hong kong. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets check in on those markets. Here with the details, emma chandra. Emma bit of a divergence across the atlantic. Europe looking to be able to recover from one of its worst weeks of 2019. The stoxx 600 gaining. The case in the u. S. Gaining some 0. 5 . That is not the case in the u. S. All of the major indices opening in the red. Losses of about 0. 3 for the s p 500 on the reemergence of some trade fears, as we hear that the chinese delegation are increasingly reluctant to agree on a broad deal. They meet with u. S. Negotiators later this week. Energy and tech leading the way lower for the s p 500. In terms of individual names, it is some of those most exposed to the trade war that are falling today. Wynn resorts having its worst day in some five weeks, exposed to china via its casinos in macau. Harley davidson also falling to percent. Fontanelle down some 1. 3 . This move on a monday, we have seen that move before. Have a chart put together by our producer. We can see that in the past 11 weeks, weve seen eight losses for the s p 500 on a monday, so perhaps tuesday might be a better day for us. Finally, some other movers in the auto sector. Gm is falling today, down about 1 , as we hear those talks with the union not going so well as that strike enters its fourth week. Ford also falling in sympathy, plus our colleagues at Bloomberg Intelligence say their ratings could be in jeopardy. Continental in europe falling close to 2 . Some of the auto parts suppliers falling on a note that says the fundamentals of the industry are not looking very good. Guy thank you very much indeed. It is the 18th straight week of protests in hong kong. Joining us now for the latest after the citys hectic threeday day weekend is bloombergs sophie kamaruddin. What is the latest . Sophie im standing here in causeway bay, one of 18 districts where calls were made throughout the day on social media for a gathering to take place. As you can see behind me, while there are Police Stationed on either side of this street here, there is no one really in attendance. We had maybe just two dozen or so, or even less, protesters with masks on, chanting glory to hong kong. As soon as the riot Police Arrived on the scene, they seemed to disperse. This is very different from the scenes across victoria harbour. Prince edward station, where a Police Station is also located, they are having hundreds of protesters there. Tear has been deployed, so theres still a bit of those confrontations going on on that side of the harbor. This after three days that saw thousands take to the streets in opposition to the mask law that was enacted midnight on friday. Carrie lams administration going through the executive council, not the legislative council, to invoke emergency powers. People Wearing Masks during public assemblies could be arrested, with jail time of up to one year and a fine of up to 25,000 hong kong, roughly 3200 u. S. Vonnie what is carrie lams longerterm strategy . Thats not exactly going to stop demonstrators from going out on the streets and demonstrating week after week. Has persisted in saying she will not give in to the other demands, other than the withdrawal of the extradition bill. For example, one of the demands is the independent inquiry into police misconduct. She claims that i Current Committee is overseeing that and is more than enough to do the task. When it comes to another demand to grant industry to those who have been arrested, we havent seen any discussion around that either. More than 1500 people have been arrested. There have been various charges, including writing and possession of offensive weapons including rioting and possession of offensive weapons. The first people charged with the antimask law were granted bail and will be heard in court. It seems like the goal is to maintain some sort of stability, but the criticism is that shes passing the buck onto the police to maintain order in the streets of hong kong. Guy thanks, sophie. Thanks for saying up so late for staying up so late. Vonnie still ahead, more whistleblowers emerging. The latest in the impeachment inquiry into the president. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Time for your latest Bloomberg Business flash. Facebook skeptics now have a forum for placing bets on the social Networks Digital currency libra on its launch date. There are derivatives that pay off on the likelihood that libra will be operational by the end of 2020. The original price equates to a 30 chance of the currency meeting that deadline. In india, ecommerce catching on in the smaller towns. Amazon and walmart reported record revenue for their sixday indian sales festival. American rivals have been dueling in india since walmart paid 16 billion for the control of a local pioneer. Both focused on smaller cities and rural areas. Nest insurance has become the latest tech unicorn. The startup that uses artificial raised 250 just billion from german insurer. Raise 250d does million from a german insurer. That values it at over 1 billion. That is your latest Bloomberg Business flash. Guy the s p is down, but not by much. People are waiting to see exact what the trade narrative is going to deliver. Negotiations get underway between china and the u. S. Thursday. We are trading a little off at the end of the market. Cnh seeing a little weakness. That china trade not getting much action in the bond market. Crude, 59. 43. Weirdly, airlines are getting a bit of a bid in europe despite that higher oil price. I would argue that trade is probably the biggest story. Last week it was the data. This week we focus on what is probably the markets main event right now. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets check in with the bloomberg first word news. Here with the details, viviana hurtado. Viviana north korea and the u. S. Disagree on how talks in sweden went over the weekend. Pyongyang saying it doesnt want to hold more discussions until the u. S. Withdraws hostile policies. The trumpet administration called those talks good. North korea has been pushing the u. S. To ease sanctions as they are continuing missile tests. U. K. Prime minister Boris Johnson not backing away from his threat on brexit. He repeated his pledge to take the u. K. Out of the European Union on october 31, if necessary without a deal. The Prime Minister getting a boost from a scottish court, indicating that the law that would force him to request a delay in the event of no deal ruled in his favor. Chief Justice John Roberts has said he wants to keep the spring court clear of washington partisan politics, but by constitutional law the Supreme Court clear of washington partisan politics, but by constitutional law, he if the house were to impeach the president. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Vonnie breaking news now, President Trump has won a reprieve in new yorks demand for his financial records. An Appeals Court has granted a temporary stay of a ruling actually just came down earlier forced theould have president to at least be transparent with his financial records. He lost his court fight to keep his tax records secret from new appealed. Immediately the Appeals Court granted a temporary stay of that ruling, so he has won a reprieve, at least for the moment, for the demand to release his financial records. We will be diving into the details in just a little bit with our own greg farrell. There are now at least two whistleblowers coming forward with complaint about President Trumps actions and doubt over whether the Trump Administration will let several witnesses speak to house panels as planned. Lets bring in Bloomberg Congress editor anna edgerton. A lot is due to happen this week. How much of it will actually happen . Anna thats an excellent question. We have a few depositions that have been scheduled in the house. Most of the house is in recess. Most of the numbers are not in washington this week, but the committees are still continuing this work. We expect to hear from a state apart to fishel who state Department Official who was in charge of ukraine policy. He is not going to testify today, but they are looking to reschedule that. Hear from the ambassador to the eu and the u. S. And bassett are to ukraine until trump recalled her u. S. Ambassador to ukraine until trump recalled her earlier this year. Two very interesting people who will give their take on this call and try to direct their investigation into these allegations. Guy the pace of this story seems to be accelerating. The more the president pushes back, does that accelerate the process from the democrat side . Anna it could, in one very specific way. House intelligence chairman adam schiff has warned the white house if they continue to stonewall and prevent people from testifying or providing documents, that could become an article of impeachment, that obstruction of congress could be one reason why the push for the president s impeachment. That was definitely seen as a warning shot to the white house, that if you continue to not cooperate with the investigation, that will make things harder for you. Vonnie we are hearing now of a second whistleblower, and potentially even multiple whistleblowers. Does that mean there could be a lot more to come out, that there might be more records and that testimony may, if it becomes public, be very fiery . Anna it depends. If this whistleblower, who, according to the attorneys representing the first whistleblower, they say they now represent a second who has firsthand knowledge of that phone call. If that is true, that is interesting, but we already have a rough transcript of the call. We could get some more context for that, but what will be more interesting is to see if there are similar phone calls with other foreign leaders or other whistleblowers who come out with even more information, not just regarding this one incident, but showing this to be a pattern of conduct from this administration and this president. Guy how important is firsthand in this . That has been one of the president s complaints, that the first was a blowers knowledge was almost secondhand the first whistleblowers knowledge was almost secondhand. Anna weve heard other republicans react to that. Senator Lindsey Graham this shouldnt even be considered a whistleblower because it is hearsay. The original whistleblower did have his or her information secondhand, but that was then corroborated by the Inspector General of the intelligence community. We had a very interesting statement from Chuck Grassley last week, the chairman of the Senate Finance committee, republican for iowa. He said, to protect whistleblowers, it doesnt matter how they got their information. This person still counts as a was a blower and should be afforded all the protections under law, regarded whether counts as a whistleblower and should be afforded all the protections under the law, regardless of whether information was secondhand. Vonnie back to breaking news now. A federal Appeals Court has granted President Trump a lastminute reprieve on the retrieveand that he his tax records. We are joined by our bloomberg legal reporter to untied is not. Weve got two decisions today. ,ne found against the president for all intents and purposes, and the other has granted, stay. Reporter exactly. The Manhattan District Attorney wanted to get a hold of the of the Trump Organization and trumps tax records. The courts said you are not above the law, and the president s team was ready to appeal immediately. The question was whether or not the approval that the Appellate Court would accept this by want to copy him except this by 1 00 p. M. Longterm, it is a losing argument, but longterm doesnt matter. The president s game at this point is to run out the clock as far into the future as possible, particularly deep into next year. Is aically speaking, this positive develop and for him. Theory, and in practice, president s cant be charged. Where does this whole process sit in that spectrum of what is an investigation, what is a criminal investigation . Im slightly confused by where this kind of investigation into his tax records is positioned. The part of this is process in the u. S. Theres the Justice Department, which we saw through the Mueller Report. One aspect of the Mueller Report is the Justice Department policy that a sitting president cannot be charged criminally. However, at the state level, theres no charge thats being filed. This is just an investigation that is proceeding into a similar aspect that has already resulted in a guilty plea at the federal level. So this is an interesting view for people outside the u. S. As to how the state versus federal system works. Another aspect of this is that the president s lawyers have a fishingat this is expedition by a grand jury. At the state level, grand jurys are allowed to do that. If there is some aspect of possible criminal behavior, they are allowed to gather evidence, and this will take time. So it is possible that if trump is no longer president in early 2021, it would be very easy if a criminal case had been billed by them to be charged had been built by them, to be charge. Whether that will happen in the next 12 to 14 months remains to be seen. Vonnie how long could this day before could this stay before . Already, the president has fended off the house financial committees attempts to get his financial records. Months himself several in the washington case, and there is still no end to that. This could buy him another minimum of three, maybe six or more months. It depends on whether the Second Circuit decides this is worth accelerated review, and we dont know yet whether or not they are going to speeded up because this is a special case or treat it like any old case, and which case a year could go by. Vonnie greg farrell, bloomberg investigative and legal reporter, thank you. For more on how investors are weighing all of this, and then the prospect of a china deal, lets welcome jason browne, Alexis Investment Partners founder and president. You obviously manage money for High Net Worth individuals and others. How are they managing money through this process . Now we are getting worried that there may in fact be some kind of deal, at least at midlevel, trying to get talks up and running again. Jason in general, people have been very pessimistic going into this. Any kind of neutralizing of negative news is probably a bit of a positive. I know from my perspective, ive been relatively positive on the market. I think the challenges are people that have been over rate bonds were overly negative, and the push themselves outside their normal equity allocations. If we get a little bit of stabilization, you may be seeing people underinvested charging back in. Vonnie where is stabilization . It does feel like weve been in a range for a while now. We had that little scare last week, and we are down a few tenths right now. We are starting earnings season. Do we potentially see this as the opportunity to get in . Jason i think the opportunity to get in, as weve learned over the last several months, is every time we get a pullback. Anytime we get any kind of easing or a bump in fear. If you like about what happened last week as a great example, we definitely had fear spiked pretty dramatically, and yet onkets resumed their rally almost no good news. Lastjason, what happened week as well with the data was that we got some negative data, and then the market said the fed is going to rescue us. We went from a 40 chance in october, to 80 or 90 chance of a cut in october. s Monetary Policy the antidote to this trade narrative for markets . Look biggeryou picture, it certainly is helpful to have global monetary relatively easy puzzles relatively easy policy. Easy Monetary Policy and then some easing of the amount of pressures, whether it is on trade, earnings expectations havent come down dramatically. Incremental, marginal good news may be good enough to continue to keep the rally moving. Guy when you look at where we are, we are a couple of Percentage Points away from record highs. The data are starting to get to grimm. The many factoring data, the grim, the to get manufacturing data. The surface data less so. Jason these are the same levels basically that we were at roughly 20 months ago, and then again roughly a year ago. So even though we had a really wonderful year to date rally, the reality is we havent gone anywhere for quite some time, during which overall, you have seen Earnings Growth even though they started to slow. Youve seen overall betterthanexpected economic news, more often and force than expected. I think the amount of some is in we have is really just a function of all of the negative news and the fact that it is not probably going to go away anytime soon. At the same time, where are people going to invest their money . At the end of the day, theres limited choices, and i think people are recognizing that more and more. Taking risk off hasnt worked out for them. Vonnie are your clients mainly calling you up about china and trade, or about 2020 . Jason my clients mainly call me up to check in and see if they are on track towards reaching their goals, things of that nature. I think the reality is people are probably more concerned at this point about a trade resolution than anything else. Thats sort of the general thing that people respond to. I think as we get closer to the election, we are likely to see more giveandtake, but a lot of where people come out on that sort of depends on where they came into it. Similar to last election. Guy are you advising your clients to be fully invested right now . Jason we are pretty fully invested. We do sell some covered call options. Iona little bit of golden portfolios. We are picking highquality i own avolatility little bit of gold in portfolios. We are picking highquality names, low volatility. I think what we are seeing is that the value to taking a lot of risk off the table is really pretty limited. We are getting paid to take riskier. Vonnie jason, thank you for coming into see us. That is jason browne, alexis president. Partners this is bloomberg. Guy live from london, im guy johnson. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Guy time for our stock of the hour. We are looking at the swedish oil and gas company. Shares rising close to 5 at the highs. Highs. Over to emma chandra. Emma in london, one of the best performers in europe today. It is all down to the opening of a new mega oilfield in the north sea, located midway between the u. K. And norway. The first oil was pumped from this oilfield over the weekend, two months ahead of schedule. Discovered the oilfield back in 2010, and that has been instrumental in trance forming loomed in transforming lundin into one of europes most Important Oil and gas companies. That has the biggest stake, more than 40 percent. Despite the ownership profile, we are seeing big moves in the stock, the biggest move in the stock for lundin today because as production ramps up, it will double total Oil Production for lundin by summer 2020. That means we are looking to see increased Dividend Payments in the very near term. That is your stock of the hour. Vonnie thank you for that. We are sticking with oil next, and it is rebounding today. We will discuss how upcoming u. S. China trade talks may sway cloudy demand outlook. Futures will be in focus. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Its time for futures in focus. Chris robinson joins us from the cme. Chris, it seems like every few days, we get a headlines about soybeans. Im curious as to what impact you are actually seeing on soybean futures. Is it all done . Has the repricing of the contract happened . Chris we dont know. We had a good repricing in the last two to three weeks. Got a lot of producers in better shape than they were when we were on contract lows. What are we looking at . On thursday, well get a new usda report, world supply and demand. That could impact prices. Thursday morning, once that comes out around 11 00 in chicago, it could be a repricing event. All in all, two things drove the soybean market this year. Obviously we had a very wet spring, and we also had the concern about what is really going on as we see this pingpong daily. We have a deal, the deal looks like it is going to get better, the deal goes away. Its been a very frustrating 2019 for farmers and producers, anybody that is a natural long. Seen a youve also little bit of a similar impact on corn, although probably more for demand supply type trade. We seen hedge funds cover shorts for the last few weeks. Does that continue as well . Chris chris well see chris well see. They probably wont do too much more between now and thursday. They were short about 160,000 contracts. They are still going in short, but on a scalable ratio, its not that big of a bet. Earlier in the year they had been short about 500,000 contracts. Thats what fueled a very nice rally, a one dollar 20 since rally in may. Thats a big part of it a 1. 20 rally in may. The money flow has been something to really watch. We will see on thursday. Right now these guys are short. If we get anything bullish, it would be a gift to farmers and producers because managed money will not ride those losers. They will cover those sorts. Vonnie i have to ask about oil because we are seeing a nice 2 bounce today. Where we just oversold last week . . What is bringing wti close to 54 a barrel . Chris its been a very technical trade, and a lot of people got caught in that headline trade, when the saudi oilfields were attacked. We had that big spike up. It actually was a very big buy technical level because we broke through trade line resistance. Then it repriced very quickly. In the last two weeks, we dropped 13 a barrel. If anybody was long and did not have an exit strategy, they certainly took a loss. Now we continue to see we are moving towards the apex of this technical chart. We keep bouncing between resistance at 58, support at around 52. A lot of people are concerned, is 50 going to hold . As we head into the rest of the year, with all the uncertainty, that is going to be the key level. 50 a barrel is a big come around number. It is a psychological number a big, round number. It is a psychological number. In 2020 we could have an extended rally. Vonnie Chris Robinson, thank you for your time today. That is Chris Robinson of t. J. Down at the cme. Guy hsbc looking to cut thousands of jobs. French Retail Business could take at least 4000 people off the payroll. Streamlining could lead to a hsbcs global workforce. The interim ceo now wants the job on a fulltime basis. Hong kong exchanges reported lee will raise its 36. 5 billion dollar offer for the london stock exchange. The Hong Kong Exchange has received traditional support for some of its key shareholders. The London Exchange rejected the initial takeover proposal last month. Instead, it wants to complete its own 27 billion takeover of data provider fi provider refinitiv. German factory orders fell 0. 6 in august, twice as much as forecast. Demand has fallen for 15 straight months. Thats your Bloomberg Business flash. Nomura international chief economist George Buckley will join us as we count you down to the european close. Vonnie we are now getting some headlines of u. S. Officials saying the u. S. Does not support the Turkish Operation which would see troops go into syria from turkey. Once again, a u. S. Officials saying trump told president erdogan the u. S. Wouldnt back in operation. Ration. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Guy china narrows the scope of trade talks with washington, not willing to commit to reform on industrial policy or state subsidies. Job cuts at hsbc. 10,000 positions on the line with europe bearing the brunt. Brexit talks between the u. K. And european leaders stall, casting doubt on an agreement by october 31. Live from london and new york, we are now counting you down to the european close on bloomberg markets. Guy we have 30 minutes left in the european trading day. From london, im guy johnson. Vonnie in new york, im vonnie quinn. We are off our lows, about 90 minutes into the session. The s p 500 down 0. 1 . Kohls the best performer, followed by nvidia. Dollar tree and some of the Dollar Stores are at the low end