Northern england. Johnson trigger the december 12 snap election after months of deadlock over exit policy in parliament where his tory party did not have a majority. President ial candidate Elizabeth Warren has been given a clean bill of health. Her personal physician says her weight, blood pressure, and cholesterol levels all within normal ranges. The doctors report says her only medical condition is hypothyroidism, for which she takes medication. Her doctors say she follows a healthy diet and exercises regularly. The 70yearold is the only toptier candidate to release medical records so far. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Live from bloomberg World Headquarters in new york, im vonnie quinn. Amanda live in toronto, im amanda lang. We are joined by our bloomberg and Bnn Bloomberg audiences. Governor Stephen Poulos says he will step down once his term expires next june. What challenges faces replacement . Soars, the labor market turns and stellar performance in november. Nonfarm payroll surged 266,000 even unemployment fell to 3. 5 . Cutting deep. Saudi arabia surprise the oil market with production cuts so deep a have not been seen on a sustained basis since 2014. Lets get a quick check on the major averages. It was not just john stated that had stocks flying, also plenty of good earnings report, also from autos they really cheered investors having disappointed them last month. We also had an upgrade of homebuilders from goldman sachs. Plenty other catalysts, including remarks on china and the potential trade deal. The dow up 1. 25 . The nasdaq up more than 1 . The 10year, this is where the jobs data was more evident. Right around the time we got the data, 8 30 this morning, a massive shift upwards in yields. As far as 1. 86. Back down to 1. 83 now. Over the last few days this is just todays chart we took from 1. 70 and back to where we are. Amanda slightly different picture in the canadian job market that we saw in the u. S. Today. I want to look at that data. We are seeing some real weakness. This is from 1. 70 and back to where we are. A notoriously funny report, a survey, so slightly unreliable. In terms of the loss of jobs, 71,000, well below the expectations for growth. It pushed canadas Unemployment Rate up to 5. 9 . We at gains running atunemployme challenges that faces the successor to bank of Canada Governor Stephen Poloz. He says he will step down in june, the official end of his term, that is a sevenyour mandate coming to an end. First question, how surprising is it . We dont see a lot of twoterm governors here. I wonder whether you were surprised when Stephen Poloz said he would go . I dont think it was a surprise. Had mused about the possibility of staying around year, but largely the expectation was that he would be a one term governor, particularly given his age. 64 years old. Another seven years would taken year, but largely the expectation was that he wouldbeyond 70. No one really expected him to stay beyond the june. There was some question about whether it we did enter some , that thecession government may want some continuity there. That doesnt seem to be the base case. He officially announced that he is leaving, after many months of speculation. Vonnie the timing was a lot of it unfortunate given a job stayed out of canada today. Negative job creation. In theere be a change type of Monetary Policy that the bank of canada engages in with the next governor . right now for the bank of canada, the question is whether they want to follow all of this global easing that has occurred elsewhere. The Canadian Central Bank under poloz has been an outlier. It was one of the few banks that actually normalized Interest Rates in 2017, 2018, hiked five times over that time as the canadian economy finally showed signs of slowly recovering from the collapse of oil prices in 2015. Poloz has been very reluctant to reverse course. Those were hardfought gains for poloz. So whether he is forced to cut before he leaves, markets are not really anticipating that the next three or so Rate Decision that he will oversee will see a rate cut. Whether someone will come in and change course is a possibility, but at the same time, canada is unique in the world with extremely high debt levels, among the highest in the world, certainly the highest in the g7. On much canadian policymakers can actually cut Interest Rates. Amanda when we take it on balance, hebalance, he is arounr longer, it is too late to do the eulogies just yet. In terms of how hell be rated. He got outside by lowering rates when others were raising, but it did not hurt the canadian dollar. Export dollars state where you want it, mid 70s. How will people say, in total, how Stephen Poloz did . Theo i think really well. By one measure, how do you want to grade central bankers . You want inflation to be low and wanted economy to be near capacity. That is where the canadian economy is right now. Inflation is on target, has been at 2 for a while. The canadian economy is running their capacity. By that measure, canadas economy is doing well. Poloz, who was very dovish early on in his mandate, is responsible for that. On the flip side, of course, the cost of keeping rates low for a long part of his 10 year tenure before the rate hikes in 2017, canadians continue to put on debt. That away on the economy going forward, will be a constraint on the next governor. Overall, the economy has done well, he can be given credit for that, but the canadian economy will have to come at one point, figure out how to overcome this massive Household Debt burden. Vonnie our thanks to theo argitis. Surging u. S. Job growth in november and revisions higher for october sent stocks and the u. S. Dollar higher. Larry kudlow gave us his take on the numbers. Larry despite a certain amount of pessimism, the economy is outperforming expectations. Economic policies from the president are working. And america is going back to work. I just think that is crucial. Oxford joining us now is chief economist gregory daco. Does that take any fed move off the table for 2020 . Gregory we have a meeting coming up next week, and the fed will be on hold. If we look into 2020, this report does not change the overall picture of an economy that is gradually maturing. Gradually slowing jobs growth despite this good november number. As we look into 2020 we expect to see lingering headwinds. Weaker global growth. Trade tensions are not expected to dissipate. We also see Income Growth gradually erode. As we look into 2020, we think growth will continue to slow, perhaps toward 1. 5 , and the fed will likely act with another rate cut. Amanda tell us what you think should happen with wages . We see wage growth above 3 here, which is certainly above the comfort zone for most central banks. Should that moderate, given we will see growth moderate . Gregory wage growth right now is not too hot, not too cold. 3 is ideal in this environment. Businesses are facing an environment where they have limited Pricing Power and Profit Margins have been squeezed. Riseo that the input costs from tariffs. Businesses have to be cautious with weight growth. 3 wage growth, which is enough to sustain real disposable Income Growth, is enough to support Consumer Spending in that range of 2 to 2. 5 , and support economic activity. That is just right in terms of the wage growth number. Vonnie what do you look for in terms of gdp growth in 2020 . Gregory we have growth right now trending around 2. 25 . Still supported by strong Consumer Spending growth, but as we look into next year, we see Business Investment remaining on standby. , whichglobal growth despite some indications of green shoots, has stabilized at a low level. Tensions remained elevated as we saw with brazil, argentina, and france. And we have the trade tensions with china which represents a big risk. In that environment, businesses will be cautious with regard to investment and hiring. In that environment, Income Growth will gradually erode and Consumer Spending will moderate. Not a recession environment, not a booming economy. That is why we have to be careful with the job number. A strong number but we are still seeing erosion in terms of economic activity. Calls forme of your 2020 i know you are not making a call on the market but curious about what you think about fundamentals when you say housing could go sideways, trade tensions continue. At all speaks to me to say that equities may be fully valued. Gregory i think there is certainly a Downside Risk for equities. There has been an environment that any time are positive rumors on the trade front, stock prices rise. In this type of environment, there is a risk to the downside. Last year, we were in a similar environment. We had a strong labor market, trade tensions on the rise, and we had the fed giving hawkish signals. If you are in that environment again this year, with the risk of a government shutdown, if the president does not get funding for his wall, we could be in the same situation, which would be unfortunate for the markets. I think the right approach is a cautious one where we expect moderation in job growth, which can still sustain stock prices, but the risks are still tilted to the downside. Vonnie we were talking about the canadian dollar, what about the u. S. Dollar . Pretty strong but there are headwinds. Gregory in general, we view the dollar as remaining relatively strong. The growth fundamentals supporting the u. S. Dollar are likely to remain in place. The u. S. Economy continues to outpace the rest of the world. The fed still has a tighter stance than most other central banks, that should support the Interest Rate differential. Some of the long run anchors such as the deficit will take twice, but perhaps more into 2021, 2022. In the current environment, or growth differentials, Monetary Policy differentials support a stronger dollar. Amanda great to have you with us, gregory daco. Still ahead, oil is jumping as saudi arabia delivers a welcome surprise. Two days of meetings between opec members and allies has produced it. We will tell you more about that next. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn in new york. Amanda im amanda lang in toronto. Minister Energy Abdulaziz Bin Salman took production down to levels we have not seen on a sustained basis since 2014. He explained in an interview with an recorder and annmarie hordern, why the necessary by the cuts are necessary. The markets require it. There will be additional stock in the thirdquarter. We think the best thing to do is to preemptively double our production to make sure that we this as we go on to the end of 2020. Annmarie joins us now from vienna. An important interview there. It was a surprise. Theeep saying these are deepest sustained cuts, which suggests we worry about the sustainability of them. Did he say anything about that, that we can rely on them lasting . Annmarie he said they had to take action because of what is coming on next year, so they are preempting that oversupply that many analysts were talking about. Certainly was a massive surprise to the market. All the traders, analysts have been saying today, opec was going to be a nonevent. That 500,000 barrels is basically what they been producing physically in the market, and they are just adding that on paper. He waited for the press conference to announce that. On top of the fact that he said they wanted to make sure that the supply and demand situation is on target for next year, he also said he felt like it was ok to take this next step or the kingdom, to cut deeper. He feels he has reassurances from his partners, particularly iraq and nigeria, who have not complied with their quotas, that they will start to cut. The western in Opening Statements about the cheaters to stop cheating. At the press conference, which notably does not really happened, but a rack and nigeria, those ministers were alongside, which sends a bit of a signal, naming and shaming to the markets. He is confident that they are able to do that. I also asked him if he is about losing market share. He said no Saudi Oil Minister will go back to the 2004 pump at will. It looks like the cuts are here to stay. Vonnie it is significant that the saudis took the bulk of the cuts. Russia had a minimal cut. What does this mean for the future of opec and its partner countries, opec . Annmarie it was minimal in a sense of today, those 200,000 barrels from november. Rafa year, saudi arabia has led the effort, they are the de facto leader of the opec group, and led the effort to cut more to prop up prices, they would say to stabilize the market. I think you will continually see the saudis willing to do that, but only if and this seems to be their strategy, this quid quo pro strategy only willing to do that if the partners agree with them as well. They also continue to cut. Amanda obviously, there will be some optimism felt around the fact that opec members were able to pull together. Is this a renewed solidarity after what seemed like a fractious time . Annmarie it was definitely a different atmosphere, different sheriff in town with a Saudi Oil Minister. It is pretty astonishing i have covered a number of these opec meetings. The fact that the surprise cut from the saudis, this additional 300,000 barrels, was announced at the press conference, is pretty significant. Things definitely get leaked that these opec meetings, hundreds of reporters running around. I think this is a new signal on how things are going to get done. While these events are important for the markets, they are serious diplomatic events. The Saudi Oil Minister kept the surprise for the end of the day. Vonnie annmarie hordern, thank you. Uber releases its first and longawaited safety report. How the disclosures are weighing on shares. We go to San Francisco next. This is bloomberg. Is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn in new york. Amanda im amanda lang in toronto. Found more thanber 3000 allegations of Sexual Assault involving drivers and passengers on its platform last year. They reported a numbers late yesterday in the first ever safety disclosure. Shares are trading down more than 2 today. Joining us now is our Technology Reporter from San Francisco. The moree down but terrifying thing is the amount of violations that came out of the report. Today . Uber responding this has been the result of two years of work uber has been doing on this. They have been pretty much quiet today, nothing new to add beyond this report that dropped like a bombshell yesterday. Like you said, 3000 Sexual Assaults were reported on the platform in the past year. While 99. 9 of all trips end with no problems, this is still a massive number. Amanda it is, and we include the nine murders in 2018, 58 crash related deaths. None of them are good numbers. You can imagine uber would like them to be zero. The effort here was for disclosure, full transparency. The early going here, it seems to have backfired. Is this still the right approach, the way to go for uber . Lizette this was a voluntary decision on their part. Like you said, these numbers are shocking. There is nothing to compare them to. It is hard to say whether uber is safer than lyft or a traditional taxi, or even Public Transit for that matter. None of those groups have disclosed their numbers. Has pledged to do so but they have not provided a date. Vonnie it certainly gives regulators some ammo, should they wish to get rid of uber or curtail their activities. What will uber do about that in terms of defending themselves and regulatory screwed me . Lizette the question that some regulators would have to talk true and work through on their , how does this compare to other numbers . This is a horrible disclosure , and ity have made works out to basically eight assaults a day on the platform. While this is less than 1 of total trips, it is still a big number. They will probably listen to some advocates, like with the National Sexual violence center, as well as other ones, every other major group has weighed in on this, talking about center, as well td the fact that many of them worked with uber to make this happen. Who knows what regulators will do. Typically, they do listen to people that have been working in the field for decades, like these groups, but uber, like lyft, a big part of their promise was that they would keep people safe. You have been out for a night drinking, you are going to take to get home safely. This proves that this is not 100 safe. Amanda lizette chapman, we appreciate your time. To get home safely. Reminder to bloomberg users, you can interact with all the charts you have seen on the net work. The function on the terminal is gtv. All of the analysis is there backing them up. From toronto and new york, this is bloomberg. U. S. Official says the gunman who opened fire at the Naval Air Station in florida today was an aviation student from saudi arabia. Authorities are investigating if the shooting was terrorismrelated. It left four people dead including the assailant. Seven people were wounded. The shooting was the second at a naval base this week. The house has approved a bill that would restore sections of the Voting Rights act that were whats required officials in 15 states to receive federal approval before making changes to the voting process. 1965ill would amend the law to impose new obligations on states at a local jurisdictions, erasing a 2013 Supreme Court decision. Supporters say it would help erase voter suppression. The bill moves to be sad, where it is unlikely to pass. Senate, where it is unlikely to pass. Opec decided to redistribute production cuts among its members. This is following
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