Investors see trade tensions using. Winskongs prodemocracy in a landslide. Record numbers turn out for the first vote since the unrest began. Good morning. Lets have a look at what the futures are telling us about the European Equity session. The first of the week, looks like it could be positive. Factoring in a little bit of the balance we saw in the u. S. Market on friday and adding to that. U. S. Futures also suggests we will be higher. We saw that bounce in the u. S. On friday. Trump saying the u. S. Was very close to a trade tax. Lets put up that. Trading around the scraps of information with regard to trade dialogue between the u. S. And china. With that in mind lets get to the gmm. That shows us what is moving in the asia session. Hong kong up by 1. 4 . Trump line from friday. Also the news from headlines, china talking about tougher penalties for companies that break the rules around intellectual property. That may be is designed to sooth tensions between the u. S. And china between ip. Also factors around hong kong and devoting guessing taken place. Generally we are positive here. Heading towards our third month of gains for global stocks. Look out later in the week. Mind its good to our markets. Mark joins us now in singapore. Despite all the concerns around global trade, because we have managed to see the brighter side of trade recently, heading to the third month for gains as we edge towards the end of november. Is it going to be a positive and to the year . End to the year . Mark i think it is the same situation it was at the start of november. We got past the intimidating catalyst which was earnings season. The fed change, communicating they are only going to pause the easing cycle because it was only a midcycle using. We have gotten past those catalysts. That is why i think it is the same as a start of november. We will probably see slightly rocky but steady gains into year end. Willng parabolic, and it not be overly volatile. A little upanddown but overall we will make more progress. That is because there is nothing to derail the momentum. It is not because the earnings picture. An awful lot of liquidity in the system and there is nothing to change the trend. Anna centralbank liquidity, stock buybacks, all of those. Where does this leave the fixed income markets . One of our colleagues has been writing about how treasury investors are looking forward to a quiet year. We have seen not just stocks being boosted but fixed income markets being boosted this year. Treasury heading further best year since 2011. Mark an incredible year for bonds. Obviously most of those moves happened in august. All those moves and more. The yields have climbed off the yeartodate lows. An incredible first eight months of the year for the bond market. That was part of the trajectory that has boosted equity prices throughout the year. It will be relatively quiet into year end. Not much more volatility from here. We have slightly more positive risk assets rating but not taste on an excited growth narrative. And of course we have that kind of demand for those positive yields in the u. S. Treasuryverall the curve will stay quiet flat. And i think that will mean we might get awkward pressure in yields. Anna what do you blame for the troubles of going . Bitcoin . You can choose between the pbmc and avocados. Mark it is clearly avocados. I think the immediate dip in bitcoin was because the pboc clarified their enthusiasm for black chain is not the same as for cryptocurrency. There has been a longrunning theme is people get very excited by block chain. Dont think but i it is a reason to buy bitcoin. Worstn is one of the instructed cryptocurrency. It just has a first mover advantage. Many people mistook chinas support for block chain as meaning they are going if anything it would be the opposite. Pboc has clarified that today. That has seen bitcoin fall off fast. Made the point a few months ago that it seems like bitcoin is correlated to avocados. We noticed this the first half of the year. Now they have both crashed into the end of the year. I dont know. Bitcoin trading is generally pretty irrational. Inherent value so ultimately you just have to believe some other person will be more likely to buy it off you for no reason. So maybe the avocado reason might be the best. You about thesk pound. That reinforce the views the conservative party is well ahead in the polls. But we all remember 2017. As a result the markets are not getting too carried away. Uptick in sterling overnight. Mark i actually think sterling might drift lower. We have already priced in the optimism of one Party Getting a majority, and therefore that certainty the election will provide. This means a majority for the party that wants a harder brexit , and people are nervous about that. While we wont have Political Uncertainty anymore, we would have a scary situation for u. K. And for brexit. It will be hard for sterling to rally. I expect we might drift a little lower. How would we trade the election if conservatives got a majority . Then that would drift again as people start thinking about what happens next, about negotiating that Free Trade Agreement with the european union. And even if we agree on a brexit date, this is just a means of starting the muff tougher negotiations of trade after that. That scares people when they think about that. Maybe the markets would bounce on a kneejerk for the tories, but the markets quickly then would worry about the end of 2020 and potential for a cliff edge scenario. Mark, thank you very much. You can get involved with our question of the day. Today we are asking about alibaba. Lets get the bloomberg first word news update. Briefingaramco is potential investors in dubai as part of a sales place for the Energy Giants initial public offering. We have learned invitationonly meetings included discussions on strategy, and a dividend. These talks of the first outside saudi arabia. So 1. 5 s to sale of its stock. Seeking tois nominate a slate of 10 directors to the oil and gas producer. He owns a 1 billion stake in the company. He has been a vocal critic of occidentals pursuit of a rival. No comment from representatives of icahn or occidental. Xeroxs request to open its book after turning down its offer. They have not proven they are healthy enough for the deal. Hp says there are concerns about the business and outlook. Down its offer. Also says the 22 share bid undervalues hp. Former new york mayor like a Bloomberg Michael bloomberg is running for president. He will be joining a crowded race of democrats. He brings a mix of moderate policy. Says President Trump is an existential threat to the u. S. And its values. Michael bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. Global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thank you very much. Next, the jewel in the crown. Lvmh agrees to buy tiffanys for more than 16 billion. Its an enormous deal for the luxury sector and we will bring you details of it, next. And remember, Bloomberg Radio is live on your mobile device or on your radio. This is bloomberg. Anna welcome back. 7 43 in london. Features suggest we will be higher at the start. A lot of excitement around the latest trade headlines. Lvmh is buying tiffanys for more than 16 billion. Share in pay 135 a the biggest luxury goods deal ever. Joining us is senior luxury analyst at bloomberg. Let me ask you about the pricing. This is something that did not get away easily. Lvmh had to stump up more and more dollars. 14. 5, now toted at 16. 3, which is still a decent deal if you can afford to do so. If we are looking at what it is offering, there were questions because some smaller brands were valued over 23 times, but this is a big deal and no one else can afford it. We think this has come through. Anna what is it about the famous blue boxes . And is it about those boxes the jewelry that tiffanys deborah two fold, it is an entry price point for the recreatef lvmh to and redefine merchandise for the market of the younger generation. That is what is missing from the portfolio of lvmh. They are doing well with christiane dior at the highend. Secondly, if we look at the market , lvmh was priced at number three and now it reaches number one. What it does is raises its market share in the u. S. From 3. 3 to 17. 7 . Bigger was a much element in the u. S. Market and similarly in asia. Anna it is about Getting Better exposure in the u. S. , is it . Deborah and in asia also. To nearlye from 10 25 . There is a lot that lvmh can do generally globally with the brand. It also gives it a good footing in jewelry overall. When we think about how lvmh operates, it likes to be number one or number two. It gives it scale. Itself has seen a very strong run in its share price in the last decade. Deborah absolutely. And if we look at tiffany on the other side, it was down 3 in q2. It is struggling. It is not quite getting how to talk to the different consumers at the high end where it does compete with cartier and then others. We think lvmh will be able to help it. Ok, great. Thank you for your analysis. Thank you for joining us. Our senior luxury analyst here at bloomberg. Of about 6. 8lue billion dollars, the latest in a string of acquisitions for the drugmaker. At is adding a collect cholesterol drug to its arsenal. Why does this make sense . Why is it that novartis is going after medicine . This is a story that we broke last week and it is coming through. Company forsing the nearly 10 billion. Why does it make sense . Novartis has been on and acquisitions spree under this relatively new ceo. They have purchased a lot of experimental drugs. Including in cancer research. Expandw allows them to to an area where they felt they had a gap. Cholesterol. It is a cholesterol drug. Feltis an area where they they had a gap to fill. Some otherlements areas they have like heart disease. This continues the trend of making more acquisitions. M a mna clearly clearly the path forward. This is part of the broader story we see coming through from the swiss giant. That is right. And if there is some criticism from the analysts side is that there is only one product that this company offers. They would like the critics to have said there was a suite of products. This is sure to be a blockbuster. There is a lot of potential. Can the company make this work . We know some other Companies Like sanofi they have similar products but they have not quite had the effect that people wanted to say. This Company Takes a slightly different approach so this is sees some help. If they can manage to broaden the company into more than this one product, this will be a very fruitful sees some help. If they can acquisition. Anna and Great Potential in the drug business. Correct, absolutely. They have areas like heart disease. Expanding into cholesterol is a business. It is become ever more important. Fitsts into the area it into the idea of rebuilding the company. The ceo has already gotten rid of assets he did not feel were working well anymore. This is one of the bigger acquisitions. They did a bigger one last year but this is among the biggest ones they have done so far. We will probably see more from them in 2020. Anna thank you very much, benny. Minutes away from the open of the European Equity markets for another trading week. Look at we will take a the stocks we are watching including construction in the u. K. On this and other stocks that could be on the move. This is bloomberg. Away we are seven minutes from the start of equity trading for this monday morning. Let us get around the newsroom. Is focused onrn the luxury sector. Tom is looking at uni credit. In dani burger is focused on u. K. Stocks that could react to some politics. It looks like bernardo know finally got the bid he was hoping for. Is being ableting to expand the jewelry portfolio. Deborah aiken put it well in that lvmh does not like to play third fiddle. But alongside tiffanys, they could potentially unseat richemont at the top spot. And and now, to tom unicredit. What is going on with turkey . The joint venture of the company that controls a turkish bank that the italian lender with writedowns and a stock purchase last year. In august, people familiar with the matter said unicredit wanted direct control of its stake which would give it more options on the holding. In todays news, it shows the two companies are trying to finish this by the end of the year. Anna thank you, tom. Politicser come u. K. Rubbing up against u. K. Corporate. What can we expect . At theifically looking housing and construction sectors. The manifesto yesterday included pledges on construction. As well as the measures on housing. That includes a stock like persimmons. And othersso sse looking at their holdings offshore regarding labor. No shortage of u. K. Stocks moving today. Anna thank you to the team. Thank you for bringing us the stocks that you are watching. First go is where to watch the stocks. The latest news lines around trade and President Trump on friday and from the chinese on intellectual property could trigger a bounce. This is bloomberg. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Anna a minute to go into the start of cash equity trading for another trading week. A minute to go until the start of the trading day. Let us take a look at the handover from asia. Asian equities went higher. The trade narrative gaining momentum a little bit. Positive comments from President Trump on friday. As in futures to the upside. European futures also to the upside. Flagging what we are seeing on the pound. Where is the pound . Given that we have seen the conservative party x ending their lead in the polls. In 2017, we know that the polls may not be right. What is get to the futures. Higher at the start of the trading day. Ftse futures up 0. 3 . Dax futures up 0. 7 . Looking for trade sensitive stocks. Monday morning, European Equity markets getting underway and getting into their stride here at 8 00 in london. We have mna to talk about this morning including novartis. Putting their mark on their sectors with some deals they are doing with tiffany and metta co. Medicine 0. 4 to the, upside. There is the surge we are seeing with the pound. Where is the bounce . Seems to be asleep. We are seeing a bit more of that. How long it will last is a different question. The dollarpound is flat. Let us have a think about where this leaves the sector picture. The big picture narrative is dominant. The trade narrative is what we are looking at again. All of the sectors across the European Equity market are in positive territory. Int a small area of red industrials and staples. Let us have a look at the individual movers. This is what we have on the movers at the moment. Big gainerhere is a up by 3. 9 . Interesting to see some other orury Goods Companies highend consumer Goods Companies moving higher. Unicredit up by 2 . They are changing what they are doing in turkey. Lvmh is an acquiring business. 1. 7 even though they had to dump a little more cash to get tiffany. The luxury sector is doing quite well. Italianownside, the construction business. And john would is a faller john wood is also falling. Are on the movers. Of that bigthe back deal we announced up 0. 3 . European equity market opening higher. There is the latest move on the chinau. S. Trade front. It would raise penalties on intellectual property violations. Trying to smooth over a Sticking Point in conversations with washington. Let me ask for your latest. Houghts i think the news we had had over the weekend i think the news we had over the weekend a significant. The focus has been on the of the agreement. For example, a commitment for the chinese to purchase more products ortural disclosing more information about how they manage their currency. But intellectual property has been much more of a Sticking Point. The Chinese Administration opening up to suffer sanctions on that point is good news. There are reasons to because she is. We have seen further developments in the hong kong situation. News out ofsome new the u. S. Administration suggesting that by the end of this year may be a little too soon to get a phase one d. L. If you look at how markets have moved in the last month or so, investors are right in my mind that the good news might already be reflected in the markets. Anna i know you are still keen on u. S. Equities. I have a chart showing how expensive u. S. Corporate america is right now. This is a multiyear trends. That may have stalled a little in 2019. The u. S. Has been getting more expensive versus the rest of the world. Is that movement is that something that the movement in trade will change . Typically, what we are seeing is that the u. S. Has been a safe haven. And trade headlines headwinds have been rising, people have been looking to the u. S. As a pocket of safe the within that. If we look into next year and you were to see the trade some ofs clear allowing the more cyclical parts of the Global Economy to rebound, i think the good news could be positive for markets in europe and japan that are typically growthed into the global cycle. In that scenario, that is the time you would want to step in to places like europe. Anna what does that do to fixed income markets . You might think there is better news and Global Growth. Where does that leave treasuries . The treasury picture is asymmetric in this scenario. In this upside environment i described, the amount of yield to push higher in the u. S. Is still relatively limited. Even if you have better news on still haveg you negative Interest Rate policy from the ecb and the bank of japan both considering moving further negative in terms of the rate aspect. I think that will cap the amount that treasury yields can rise next year because of the way you see money flow from overseas investors hunting positive deals in the u. S. Anna we have had a few clues about whether we are seeing bottoming out in pmi. We have factory weakness in this chart. Bottoming out in that day dealt with the u. S. And germany. Do you see reasons to be a little more cheerful about Global Growth . I think we are getting there. If you squint hard on the data today, there are more reasons to be optimistic. I thought the employment numbers in the pmi for the u. S. Were particularly optimistic. Better news on u. S. Companies toentions to higher point better signs for growth in the months to come. I would highlight though that particularly in europe, the Services Sector is still weakening. While we may be seeing a bounce in manufacturing, there are other parts of the economy not moving quite so positively. It is too early for me to call the all clear for the Global Economy. Anna we will get to key u. S. Later. Thank you very much. Hugh gimber will stay with us. Up next, we will bring you some of the moving stocks this morning. And the reaction that we are seeing here in the share price, up 1. 5 for this company. We will get you the details on that news coming up next. This is bloomberg. Anna welcome back to the european open. 10 minutes into your trading day. M and a as well as optimism around trade. Gains fairly broadbased across the European Equity markets. The uks ruling party is playing it safe with its manifesto that includes promises to higher 50,000 extra nurses. Boris johnson aiming to consolidate his lead in the polls and avoid any slipups in the final two weeks of the campaign. Still with us is the strategists from j. P. Morgan. Early this morning, we were wondering where the pound was but now we do see a bounce. Athave the pound up 0. 3 128. 70 against the u. S. Dollar. What kind of reaction and the pound are you pricing into various scenarios for december 12 . Hugh if youre looking at betting markets, they are implying a bounce of a conservative majority at this stage. I think it is right to suggest that much of that is priced into the pound. If we were to see a conservative majority on the outcome of the election, i would be looking for something in the low one 30s at this stage. This range for the movement in the pound versus the dollar because i do think that Market Attention will quite quickly shift to the idea that we are running into another cliff fed at the end of december 2020 that we saw in the conservative manifesto yesterday. It commitment to not look beyond that transition period. I think markets will shift quickly away from some sorts of clarity. Sharply onto the future trading situation. What looks like a cliff edge and then the edge is moved away. Do you think the market now now makes the days Case Assumption now makes the base Case Assumption . , hang on,e market say this is a different government so the market cannot take no deal off the table. That i think at this stage no deal is less likely than previously. We have regularly demonstrated that we are not willing to consider a no deal brexit. And from the european side, they have been willing to offer concessions despite the mood music. Kick the u. K. And eu to the can down the road. It would not be a surprise to me if we sat here this Time Next Year with people debating whether we can force through another extension for the transition period even in the event that the conservatives have passed their brexit dale. I would not rule out further delays to this process. Anna u. K. Asset when we look at u. K. Equities, many tell us how cheap they look right now. How quickly the market will move from focusing on the elections to focusing on december 2020. Hugh i often speak to people whose site and idea of pentup demand that the u. K. Sees and that investors are keen to come back into the market. I am slightly less convinced about that given some of the longerterm questions that i have. I think the catalyst could be fiscal stimulus for the u. K. One of the only things we can be confident about from the election is we will have more spending in this country next year with whatever form of government the election provides. If the fiscal stimulus was significant and good enough to get the u. K. Economy going, that is a more likely catalyst to drive an uptick in u. K. Companies. Fiscal focus once again which is a big global thing is playing out in the u. K. Elections. Where does that leave Monetary Policy in the u. K. . Focus and on the other hand, you have a global slowdown in manufacturing that we have seen of late. And a downward pressure that is putting on the u. K. Economy and certainly the german economy. Where do you see this policy story heading . Hugh i think they will be looking to let the politics play out and they will want to avoid being viewed as overly political in that movement. If they were to make some sort of kneejerk reaction by changing policy for example at the end of january come i think there is a risk of being pulled back into politics which they have been so keen to avoid in the last few years. In the next few months, i see the bank of england on hold. I think for at least the next couple of courses, we have the bank of england on the sidelines waiting to see how the economy evolves before considering another rate cut make another rate cut late next year. Your top movers today with annmarie hordern. We have a host of corporate news. I want to start with praise me rismian, up 4 . Unicredit also to the upside more than 2 this morning having to do with talks they are in with the kco group. Unicredit wants to reduce its exposure. And the biggest fall are at the open, down 1 . This italian toll and Construction Companies will be in focus. A second highway bridge in italy has collapsed. There is concerned that these companies will be in focus from the government and will likely have a lot more scrutiny. Anna annmarie hordern, thank you for the update. Up next, in good shape. That is what philip lane says at policytral banks meeting. This is bloomberg. Anna welcome back to the european open. On 20 minutes into your trading day and European Equity markets are positive and focused on the trade narrative. With the geopolitical risk on the back burner. In turkey is beginning to test s 400 missile. We see a little bit of weakening in the turkish lira. There we are. It stands out very clearly on the session charge. Let us talk about what is going on in m a. Lvmh has purchased tiffany and will pay 135 a share. Joining us now is benedict to talk about other m a headlines this week. We are seeing this having an impact on other luxury good companies. M i a is something that is always being watched. Benedict there are three companies. Really, lvmh making a big splash in the jewelry space. The category where they were historically under exposed. They had a couple of watch brands. Some were better than others. Punchy as theyas are in the space of luxury clothing and handbags and champagne. They felt there was an opening here that they could address. Tiffany is one of the if not the last major recognizable jewelry rand available. When you think about it, jewelry is often no name. Tiffany really was one opportunity they could not let pass. Anna the rationale seems to be about tapping into the u. S. Consumer and perhaps the asian consumer as well. The lvmh share price goes higher even though they have to ramp up this did from where it had started. Perhaps relieved they did not have to pay more. Peoplet according to familiar, they had to go up to get this over the line. It is not a huge amount of money for them to get what they are getting though i would not say you could find it in the back of your sofa. They get much stronger in the u. S. And in asia, the bulk of tiffany sales come from there. So far, they have not been that strong in this space. It also keeps the asset out of the hands of their rivals. It really does a lot of things for them. It also puts lvmh back on the streak. They had not done anything for a couple of years. Operation asleanup it was viewed in terms of dior. Its sort of signals that the chairman of lvmh and a major shareholder is embracing m a again which is something many people like. Anna thank you, benedict. The managing editor of Global Business in berlin. Chief economist philip lane says policies are in good shape. And the baseline scenario of improving conditions. Rate cutso said that cannot be ruled out. Scenario such as a negative shock or a big recession are not the baseline case. Still with us, hugh. Talking about what the central , including the bank of england was going to do. It could be a similar narrative. Marketeading some analysis this morning that said that Christine Lagarde said on friday, only 60 of her address was on Monetary Policy and the rest was on other policy. Talk was about Christine Lagarde diplomatic skill set the and the reason for that choice. Away from the central banking background. And her speech last week was evidence of that as she focuses on working more closely with governments. I think the ecb recognizes there are limits to what they can do to stimulate the economy. Effectively, the policies have done their best in terms of collapsing yields across government and corporates and now it is about encouraging companies. Anna collapsing yields and creating negative yield. I have a chart talking about the extent of the negative yielding debt. We see the value of negatively yielding bonds. Falling 12. 5 trillion. Where does this leave investors . I read some analysis over the weekend that they are increasingly forced to liquidate assets. For Income Focused investors, i think there is a real challenge on where to source that income today and effectively, there is no free lunch in doing so. You are either being forced to p out on a Higher College higher spectrum, or you are looking at Equity Income as an alternative source but you are taking on much more draw down risk in that scenario. I think investors are looking at more alternatives. In my view, government bonds today are about capital appreciation. In a downside scenario, yields do have strength from current levels but it is not the income source that it has been in the past. Anna it still seems very good. A silver lining. Thank you. Coming up, saudi officials have met with investors in dubai as they look to further their process around aramco. Anna 30 minutes into your trading day. Good morning. The jewel in the crown. Lvmh agrees to purchase tiffany for more than 16 billion. And novartis has another acquisition. China says it will impose penalties. Pro hong kongs prodemocracy forces win a landslide in the local election. Good morning and welcome to bloomberg markets, the european open. Here in thewards city of london, bloombergs headquarters. A positive session for the European Equity markets. 530 stocks going higher. We have been slightly higher than this and that we got highlights reminding investors about the geopolitical risks around the relationship that turkey has with the u. S. And russia. We got the notification that they are testing the missile detection radar system in ankara. Broadly speaking though, we are seeing 532 stocks going higher. 4 bling business of by 4. 6 . Control of oner of their projects. And u. K. Domestic names moving higher, perhaps in response to some of the politics we have se in pl. The pound also a touch higher. Downside. It is very much the big picture story around both the trade , particularly so, and intellectual property. About what china is saying. Trade is focused on what President Trump had to say on friday about being close to a deal. Update on the bloomberg first word news. And after that, we stay here in london with leighann gerrans. China is raising penalties on intellectual property violations to address one of the key Sticking Point in trade talks with the u. S. Itsg is looking at lowering threshold. It also wants to make it easier for victims of ip threat to receive compensation. In the u. K. Come the conservative party has detailed its manifesto promising to hire 50,000 at her nurses and including a package of cuts for working people. It also promises to deliver brexit ending years of deadlock. Novartis is agreeing to purchase a Medicines Company in a 6. 8 billion deal wrapping up a promising cholesterol drug. The company says investors will get 85 per share. Is sharpening its focus on cutting edge drugs for cancer and other illnesses. Lvmh has agreed to purchase tiffany for just over 16 billion. The deal is for 135 a share. Lvmh is more dominant in fashion and cosmetics. This agreement gives it access security. Maybe elon musk will have the last laugh. He says tesla has received 200,000 orders for its cyber to windowste having unexpectedly shatter during thursdays big debut. Is fullydeposit refundable. Global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna . Anna fairly impressive images there. Now, to hong kong where it has been a big win for prodemocracy candidates. The 444 seats. Residents turned out in record numbers. Two. 9 Million People casting ballots. Bloombergs yvonne mann joins us from hong kong. Will this the a resounding win . Is tough to say. We have seen a couple of days of quiet up to the elections right now. Record turnouts with resounding support for these antigovernment protests that have gone for six months now. The key question is how it comes down to carrie lam and how she responds to this stunning election vote this weekend. It was a full sweep. All 18 of the District Councils prodemocraticy lawmakers. Before sunday, all of which were controlled by probeijing, proestablishment lawmakers. We will see how carrie lam well response. She did reply to an earliers they meant this morning saying she has been listening. This election result does not mean that these protests are over in any way. A lot believe she should concede to this five demands that the voters have been demanding in the last few weeks. Anna we have heard from carrie lam. That is what the government of beijing has said. There is little political power. What leverage do they have except for changing the relationship they have with hong kong and china. You got that right when it comes to the elections. This was very symbolic. This was more about political stances and more about the Public Opinion of where they stand over this movement that has gone on for so long now. That is the key thing. There is a better essay when it comes to big issues like developing the next chief executive. Theyy be a victoria ultimately have one or have at least solidified when 117 feet in this 1200 member election committee. They have a choice on who they pick for the next leader that it will certainly show the cracks. For beijing, we heard the long can anna thank you very much. Other big stories coming in from saudi arabia. Metsaudi aramco officials with officials in dubai with investors in dubai yesterday. Areinvestor meetings aramcos first outside saudi arabia since the most Profitable Company said it would sell 15 percent of its stock on riyadh. Where do we stand . In a muchhyped listing ending up much more local than had been anticipated. It has sidelined global banks as saudi arabia looks to move local investors. Joining us now is bloombergs managing editor for energy and commodities, will kennedy. Thank you. I looked at my bloomberg and it says they have been through dubai and now into saudi arabia. They want to drop support regionally as well as in saudi arabia. How difficult is this . We expected roadshows in new york it and washington, all of the central course. There was a lot of money. I wanted to stay out of it as the valuation was to rich. We are monitoring the government. Theyre looking to draw on the strong links between the gcc areas and the fund managers. I am not surprised that is what they are going through today. Will they achieve the targets they have set for themselves . Ran a story last week saying already the banks running the deal expect subscription to be covered. Hopefully some money will reach back. Anna how has this made it more difficult with what is going on with the oil price . It is either drifting downward or drifting. It has held up fairly well. People see a little bit of tightness going into the end of the year. Opinion is divided on how the oil market will come out. Many see an oversupply. I am optimistic. Inre is some tightness supply with shale slowing down. Reasons, it of seems a fairly steady market situation. Lvmh has purchase tiffany. Move is lifting some of the names of the other luxury goods. This is bloomberg. Anna welcome back to the European Market open. 8 44 in london. The European Equity markets are very much on the front foot. The stoxx 600 up by 0. 6 . Once againound trade with scraps of information. We are trading on that as well as some m a. Amory harder and has more on the stocks on the move. Has more onhordern the stocks on the move. A look these stocks are higher including rio tinto. Alsoon that optimism but iron or prices. A lot of iron ore prices. Thatunday times reported National Grid is looking to protect their shareholders. They are moving to create an overseas Holding Company to protect their shareholders. If the labour party were to come to party. 2 . Up nearly i think we can finally say that the ceo can have his breakfast at tiffanys. For going for that deal. Point 5 higher than the original 120 bit. What this does is open lvmh to the jewelry space. Aght now, it was trading at third of the Global Market share for jewelry. Now, it could potentially take over the first spot. Ina with that kind of deal, am sure they can have breakfast, lunch, and dinner at tiffanys if they wish to. Let us look at some of the other deals driving markets in europe. Joining us now is aaron who is with us to talk about this and the trends we are seeing. Let us start with lvmh then. Why is it by tiffany . It is not just about the American Consumer but also the asian consumer. If you know one thing about this chairman, he likes to be number one in every sector he is in. This deal puts him in a connect with the current number one. He wants to expand in jewelry. Anna what is the strategy of lvmh for tiffany Going Forward . Will they do Something Different . Lvmh has a market cap of 200 million. It is a mega company. They can invest in marketing and expand in markets like asia, china where demand is growing. Toa we have a lot of m a talk about this morning including novartis. Novartis is acquiring a cholesterol company. This is a big bet on one very promising drug. The idea is he is not purchasing a portfolio of drugs. , thees a lot of potential ceo of novartis. If the trials go well, it could have blockbuster potential. Anna just looking at the share price, we wonder if novartis has overpaid. Today, you dont always expect to see the acquiring go higher. It does seem like a hefty price, a 45 premium. The question will be down the road. We can only question if they are overpaying in a few years. They seem extremely important. Anna what about the m a story more generally. M a. An pull up on the go november may be turning out to be a little bit different. Europe is getting away with a bit of hibernation whereas in weekend. We work every a tripling of european acquisitions of u. S. Targets. European companies are looking for growth and the u. S. Remains a fastest a faster growing company. Novartis as lvmh a well as other companies. 2019 but much left in if we look into your m a crystal ball, what do you see . We have seen a six year. Ullpen bull run beforea is, do the deals you go into the market. With brexit, that could be a tag a catalyst. I think what we will see is a big rush until things slow down. Quite a lot of activity at the end of this year and the beginning of next for a drop off. Anna a lot of people have criticized President Trumps ,trategy around trade saying this will weigh in on corporate boardrooms. How does that fit alongside the buoyant m a environment . Chinese m a is extremely quiet which reflects the trade wars. You will not see a lot of chinau. S. You still see the stock market rallying. There is a lot of risk so i think it is the newsroom. Anna thank you very much for the update. If you are at a terminal subscribing come you can get the latest m a. Up next, we get the latest. Thank you for the confident photos. That is coming up later shortly in the audience. We have Richard Jones, a team member. Anna welcome back to the european open. 53 minutes into your trading day, a day lifted i trade talk and whether a phase one deal could be done as well as some m a here in europe. We will get the number from germany in just a few minutes time. And Richard Jones is with us from berlin. Rate to speak with you. What should we be looking out for come you are there in berlin . The expectation is that we will get an acrosstheboard better set of readings on november them we did last month. The Current Conditions are expected to rise as are the expectations. Across the board, positivity will be welcomed. If you look at the pmi readings from friday, they were quite mixed. At the manufacturing reading bumping up nicely but the ened, we didk not expect. It is too soon to say that we are out of the emergency. Ifo numbers later today the iphone numbers later today will be interesting. Anna what do you think is price in in terms of trade to the rates markets . I know you focus on those a great deal. ,f we do get a phase one deal you might expect to see yields go higher but how much higher could they go up . What is the thinking there . Toi think we really do need get a phase one trade deal signed in order to get any upward traction right now. On theough china taking numbers. Has not moved because there still is no deal. A deal in do get place, i dont think for example that in the u. S. Space, we would have a visitor later in the month. From a stock perspective, it looks like we are heading toward the third month of gains. I suppose there is a lot of optimism spread in there. Is there a next vacation that we will continue to see Balance Sheet generosity from Central Banks. What is the thinking . I think the last two points you made are key. There is an expectation in the market that the fed will continue easing policy next year. In october, we saw a sharp rise in the Balance Sheets of the four biggest Central Banks and the world. Ecb will start its next level of want buying now. We will see some rallies later. Because they have an interesting interestrate. Anna thank you for joining us. Delivering the number on the iphone number. You can get involved in our question of the day. We are talking about the alibaba chaired deal. Server surveillance it is up next and will take you through the positive picture here on bloomberg. This is bloomberg. Rebuke to china, hong kong prodemocracy forces win a local election and a stunning vote against the beijing backed government. Boris johnson launches a manifesto and pledges to hire more nurses, cut taxes for the working people and get pregnant done. Brexit done. And the largest luxury goods deal ever. Welcome to bloomberg surveillance. Im Francine Lacqua in london