What is going to be the outcome of this summit . The trilateral meeting . Seeing is that one leg of that triangle is in a bad situation has been japan and south korea on hostile terms for the past year. What they managed to do was pull forers of japan together their first summit in 15 months. We have seen the opening remarks from that meeting. Remarkably warm, considering what has been said over the past year or so. Both sides have pointed out the importance of the relationship and said they really want to improve it. The disadvantage they both face is their own populations at home are not necessarily keen on that idea we have seen a pull in japan that isin 70 of voters see no need to improve relations in any kind of hurry. What is chinajapan relations . That is something shinzo abe has been anxious to make an achievement of his long period in office. When he took office in 2012, relations were so bad there were concerns about military conflict over a territorial dispute. What he wants to achieve next year is to have xi jinping come to japan on a state visit. Though he has been raising issues such as human rights, especially in hong kong, i think what he wants is a very smooth relationship. The rest of this meeting continues tomorrow. Anna on the italian road network and the conflict that seems to be ongoing, what is the latest on the decision to revoke the motorway licenses . The italian cabinet met yesterday and is planning to go concessionvoke the business empire. What they are trying to do is reduce the amount of compensation, the indemnity they would have to pay. The family are fighting back. They have threatened legal action. This is going to drag on. While the cabinet has improved has approved this decree, they still have to debate in parliament. The collapsember of that bridge. How long is this likely to drag on . Be athink this is going to long and bitter day. The Democratic Party is supporting contes government on this. It is going to be weeks if not months before this is resolved. Anna thanks very much. Thanks to isabel and japan and also dan joining us from italy with the latest stories were keeping an eye on december 24. Its talk about a story we need to be following. The embattled playmaker named chair and ceo. The board decided to change was necessary. The latest twist in turmoil surrounding the ground and 737 max. Dead grounded 737 max. It is interesting timing. It comes just after disappointment around their Space Program. That didace capsule not fulfill its mission, that is the last nail in the coffin. They had a difficult week stretching further back, a very difficult month from these. Rashes what they have done recently is announced production will be suspended. They have a public falling out with the faa, the u. S. Aviation regulator. Pressure from the company to get the plane up and the air sooner. All of that culminated in a Board Meeting. Thens decided there and they needed that clean slate. They needed something new. He is quite liked inside the company, a nononsense, humble man. He never got total right to get the Company Going again, to navigate the different stakeholders. Victims, the people who perished in these crashes, we have the suppliers, we have regulators, so getting these different constituencies on board was something that ultimately the feeling from the boeing board was that we could not navigate that anymore, which is why we are seeing this change. The outd out of of the loop when he made comments to congress. What do we make of the new it is not that new. David calhoun. What do we know about him . A more diverse background then just engineering and aviation. Relatively new. He was made chairman in october. Dennis muilenburg used to have chairman and ceo roles. David calhoun took that role. This is somebody who is very ingrained in corporate america. He has a ge background, which is interesting. Boeing does tend to lean on ge. We have seen it before. The first time boeing has ousted , fired, or nudged out a ceo. In the past, they typically relied on ge people to right the ship. To stop the be bleeding. The 737 production is halted. That is going to send massive ripples through the supply chain all the way to customers and being able to navigate forward, to define when this plane might be able to fly again. Navigate intog to the next year. Anna benedict, let us lean on you for your expertise in another sector. The car sector. Bmw under pressure. The carmaker is being investigated by the sec. What is the story . What is it they are supposed to have done with numbers at the sec . They are scrutinizing sales practices at bmw. Not the first time a european carmaker has come under scrutiny. Fiat chrysler a similar experience. The question is, at what point is a car considered stalled . What we are talking about is a practice referred to as car punting where you hand a car over to the dealership and they will use it as a replacement car for people who are getting that car serviced as a demonstration car. The company will mark it as sold. Constitute ally sold car . They sold about 25,000 cars a month. Not very much. If they have to change the way they report sales, that might mean they have to hand the lottery crown back to daimler. Bad news. They did not admit to wrongdoing. Hugee amount of not a amount of money, but potentially embarrassing at the end of the. Ear anna meanwhile, bmw and daimler being disrupted by tesla. Thank you very much up on the competition with oil above 100 a barrel a distant memory. We will talk about the long decade for Energy Companies and what is next. That is next. Bloomberg radio is available to you on your mobile device. Anna welcome back to the European Market open. Low volumes expected as we have seen for much of this week. We will be fairly flat at the start of the european trading day. Look at the Bloomberg Business flash in london. Is being scrutinized by the securities and Exchange Commission over its sales reporting practices, months after the regulator fined Fiat Chrysler over similar issues as the german carmaker is in a tight race with daimler for leadership in the u. S. Luxury auto market. Bmw says it will cooperate fully with that investigation. Considering selling a majority stake. One of the options being considered to address u. S. Concerns. Washington is worried the video out is a Security Threat. Shares are hitting a record high. The automaker secured 1. 4 billion dollars in financing for its shanghai factory. The deal with local chinese banks comes as they prepare to begin deliveries of chinese made model three sedans. Tesla is hoping the shanghai plant will help build on recent momentum in the country. That is your Bloomberg Business flash. Anna thanks very much. Lets talk about oil prices. Plus has finally come to an agreement on supply cuts. Adhering to the reduction is the real test. Nonopec has tumbled. Irante recent reductions, historically pumped more for more, Stuart Wallace joins us. Good morning to you. Thank you for coming and. Opec plus, have they done enough to give markets a little bit of confidence they are going to be able to . Just about. The market has faith in saudi arabia. It is a sweeping statement, but it is broadly true. If you think about the list of countries you just gave, they are unreliable. On the one hand, you cannot blame them because they are in an economic pickle and they need as many barrels as they can get. On the other hand, dont join an organization that controls Market Sentiment if you are not going to do it. It comes down to saudi arabia with help. Market sentiment going into next year is a lot more worried about the demand picture and a lot more worried about supply from the u. S. The various parts of this agreement, they have their own ideas about where they want low prices to be. Thei arabia comes now with added complexities of the saudi aramco ipo. To what extent do you think the aramco listing is impacting saudi thinking . I think it is. If you think about what they have purchased going into this ,po, you know miss dividends normas cash flows. You need oil prices relatively high. Enormous dividends enormous cash flows. You need oil prices relatively high. Demand is destroyed relatively quickly. The norway,lso north sea, that kind of thing. What about the possibility of an International Listing for aramco . That was incredibly slow for this ipo. What are the prospects as we head into 2020 . Theyre going to give at least a year or thereabouts. Right now the market is looking at that valuation saying if you , how on earth are you going to manage . What has changed to make International Investors think it is worth more than six months ago . The demand side not looking great. On the other hand it does offer a yield of sorts. The list is long. What exactly is the incentive for International Investors to buy into this company . That is going to be the break for many International Investors. As an international investor, you might find it wanting . It depends how you think about it. Lots of otheran place in saudi arabia. It is also true to say the last barrel of oil pumped will almost certainly be from saudi arabia. That cost is so low. If youre going to invest in an oil company not particularly. Program,ing up on the boeings ceo is out. We have some takes on the shakeup in our morning call next. Anna welcome back to the european open. A fairly flat start to the equity trading day expected. As we head into 2020, what are the risks for the Global Economy . The former treasury secretary says a future financial crisis is less likely to have its origins in the united states. He spoke to David Rubenstein. Was on the verge of going bankrupt. You did not have authority to save them. In hindsight, is there anything you could have done differently with respect to lehman . I will tell you, i dont think there was. We tried everything we could to get a buyer. Problemas a bigger because they were insolvent. Way that alone was going to solve the problem. It was a capital or a loan guaranty guarantee. As you look at the system today, could Something Like that happen again . Are we better able to protect against Something Like that . Our Financial System is much stronger than it was. The banks are better capitalized. It is less likely to start in the u. S. Tinder toess dry start a fire. I hate to say this, but we have Less Authority today than we had been. The number one problem we had had ay far was we Financial System that had outgrown our regulatory system. Our regulatory system and authorities put inplace after the great depression, we had a situation where 60 of credit was blowing outside the banking system. That was hank paulson on the David Rubenstein show. Worth reflecting on. Lets get a bloomberg first word news update. Mission to on a create an investment bank. The nation is opening up its financial industry, but it also wants to beef up its own players to go toe to with wall street giants. Chinas brokers dont have much of an international presence. The 131 brokers have about as as Goldman Sachs by itself. Germany expects the north sea gas pipeline to be delayed. Cost rising due to u. S. Sanctions on the project, but only around 70 of the pipeline still needs to be made. In. Home sales rising november. Momentum in Residential Real Estate helping to underpin the economy, increase demand for new homes has been fueled by historically cheap borrowing costs and the lowest on employment rate since the 1960s. 2019 has been a good year. Almostrichest man added 70 billion this year. Alibabas jack ma grew his by 11 million. The big winner was his net worth grew by nearly 36 billion dollars. Amazons jeff bezos lost over 13 billion. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna all those billions lost. Thanks very much. Ouster of the chief executive at going. Is the shakeup enough to restore confidence in the firm . According to analysts it is enough to restore confidence. They say the new ceo is not sure what changes he will make, however, they are likely to turn up the financial deck. Analysts striking a different tone saying the timing is odd, to do this in the middle of a crisis. Usually ceo change comes at the end. Street might be looking at this and expecting too much too soon given the timing of this announcement. Jeffries striking a similar tone to cowen saying this was necessary to get the confidence of consumers and investors. Anna we will have to watch how the new management performs. Lets take a look at stories we are watching. Bmw being investigated by the sec. We heard from our colleague earlier on in berlin. When you register a sale in your books, the carmaker is in a tight race with mercedes over the luxury lead in the united states. Tesla, quite a competitor at the smaller end of the luxury spectrum. Coming up, its the market open. Futures suggesting a flat start to the trading day when things get underway in london and across the continent. This is bloomberg. Anna a minute to go until the start of cash equity trading tuesday morning. Bmw faces an investigation. The german automaker coming under scrutiny for its sales reporting practices. The other trade war. Leaders from japan, south korea, and china meet at a trilateral summit today. Reverse export controls. And the daunting task of rescuing the 737 max. The new boeing ceo. This gesture and that we wont go anywhere in a hurry. U. S. Futures also fairly flat. Highs. Off alltime and a Strong Performance in the u. S. In terms of the stock market. That is the backdrop for what is expected to be a fairly muted session. The session in asia was fairly muted and limited. It is december 24, Christmas Eve which means shorter working hours in some parts of the world and likely lower volume then on usual days. The euro stocks index is down. The ftse 100 up just a touch. Not moving anywhere in a hurry. 129. 30 four the pound. Following from the gains made around the u. K. Election time. Flat. Llar index the only sizable move showing up on the fx gmm is the swiss franc losing 0. 1 this morning. We are all in gray showing there are no outsized moves. Let us look at the sector perspective. On a day like today when you wont expect big moose coming you would expect a mixed performance from the sectors. Health care and staples in the red. The financials moving to the downside. Industrials, a slight area of green. Energy Companies Moving higher. Information moving positive. Not a lot of movers. The overall moves come a touch to the downside. The balance of gainers and losers 300 up on the stoxx 600. Some of those may already be closed. The ones that remain, 160 going higher. 140 going lower. Markets will be a technology the christmas holiday. Lan security is also a gain or. To the downside, virgin money also weaker. And bt groups moving lower as well. Bmwm w was what we were is what we were talking about earlier this morning. We have yet to see an opening price. Tona is stepping up measures support the economy in 2020 with a multipart policy drive. The premier said the government will continue to lower the amount banks have to be putting aside as reserve. Supporting domestic consumption. Joining us now on set to talk 2019,where we are in Shanti Kelemen. Good to seo. Let us talk about where we are headed from the risk perspective. And where we are headed for 2020. The roaring 20s perhaps. Shanti we are fairly positive but we are not running hugely in equities. Valuations are highly. We are at a better value than bonds given the Interest Rates but we need a lot of things to go right. We need a trade deal to get done. We need Central Banks to continue to be accommodative. It is not a guarantee that all of those things will happen. Anna not a guarantee that we will get those things under the christmas tree. Our live blog question is how far can stocks rise . If we get there, is there a level you have in mind that starts to disrupt the flow in stocks . U. S. , yieldshe have already come down a bit. I dont think if we moved to 2 that that will be drastic. That is still very low. When you think about it relative to september 2018, it was at two and a bit. What about Recession Risk going into 2020 . You are not too concerned. Around zero,ering this has been a long cycle. More recently, we have seen it backing up towards zero again and away from the recessionary suggestive level. We probably worry the most about Consumer Spending falling off because that is what has held up the economy. We had a falloff in manufacturing across the globe. Construction has been weaker in a lot of places in europe and Consumer Spending has held up the economy. When percent growth in europe and 2 in the u. S. Not great but it has done the job. We want to have that stay strong. Central banks should stay accommodative. In fiscal stimulus from governments. They have already done a lot in the u. S. Anna we will look to europe and see if we get something from germany and elsewhere. Retail investors are not or have not necessarily been positioned for a leg up in equities. Retail haswth in been in bonds and money markets. Many got overly bearish this time last year understandably and a lot of people did not tile back in. They pulled money out. Room means there is still for people to rotate into equities. More has gone on in the last month as people have become more optimistic but positioning is not aggressive at this point. Anna you talk about retail investors. 2019ing a wall of worry in seems to be applicable in many asset classes. Who wouldve thought at the beginning of the year that we would be taking on decade beating returns . Market participants seem to be worrying about a lot. Shanti we are good at worrying. We have improved on that in the last decade. Goodan also look at it as come of the s p is all. If you look at it from september last year when we were at over 2900 and the s p, we have done about 10 this year from that point in time. It is arbitrary to say take these arbitrary dates and measure stuff. I look at it from the previous high, what have we done since then . And that is about 10 . Anna Shanti Kelemen, thank you. Regulation on big tech trades. We will talk to Shanti Kelemen on her top picks including technology. This is bloomberg. Anna welcome back to the european open. Dayinutes into your trading and we see very small moves on European Equity markets. Let us mention for you that some of these markets are closed already. I should have remembered that germany is already closed. The German Market and italian closed. Re a number of markets in europe closing early. Gmt. E u. K. , 12 00 france also closes early at 1 00. Spain closes early as well. And south africa closing at 10 00 gmt. That is a recap of the market closures we have for you today and therefore, low volumes and small moves. The Big Tech Companies are coming under more and more pressure. Shanti kelemen at Brown Shipley is still with us. You Like Technology stocks. Is it despite regulatory concerns or risks in 2020 . Shanti there are risks from the regulatory scope but Companies Still have tremendous margins and huge growth opportunities. Huge scale businesses. On the regulatory side, the risk is we might get a less risk candidate in america and that or we may notary know until april or may. And we have to talk about breakups. On the other hand, we think about actually breaking up some of those companies. Very difficult from a legal perspective and would take a long time. Are moreose businesses focused, with a have higher valuations . It is a risk and could be painful but i dont think it is a reason not to invest in them. Anna the risk of breakup is the issue for some and for others it might be competition. Thinking about netflix. We are seeing a lot of content owners wanting to take what they see as a share of the netflix winnings. Our Companies Like that going to be thrown around . Shanti it depends on which ones. Look at facebook and google. A near monopoly on online advertising. And then you can look at Something Like a netflix that in mediaof competition entertainment streaming. You have to be selective. And then there is hardware. To entry andiers big capital costs. It can favor some of the incumbents in that respect. Oil. And you are short oil. I have a chart that is interesting. Over the last decade, thinking about where we have been on oil prices. Blue, oile s p 500 in prices in white and s p 500 Energy Stocks in the yellow. It has really underperformed in the last decade. We are not sitting on 100 oil anymore. We went up higher in this decade and earlier. What is the reason you are short on oil at this point . Shanti it was about the rise of u. S. Shale and the decline of opec. For oil, it is more of a longterm view. What is happening i think to oil there is Rapid Advances in battery technology. It can be cheaper to use in the long run then extracting oil from the ground. And then you add on the Environmental Issues to that. The advantage of oil is it is being used around the world for a means of transport but that will be eroded as we get better. Anna and other forms of energy . Stage i think there is a where it is hard to pick the winners that will be there. Oil and Oil Companies in our portfolio now then would be dictated by the market. Anna Shanti Kelemen is staying with us. Here is leighann gerrans. Leighann bmw is being scrutinized by the securities commission. Because of its practices. Charged withalso this practice. It is in a tight race with daimler. Bmw says it will cooperate fully with the investigation. Messagess disclosed internally from regulators. Related to the 737 max. It comes as the playmaker has oust to its chief executive. Hoping a change in leadership would restore confidence in the company and fixed the relationship with regulators. Selling a majority stake in tictoc. An option being considered to address u. S. Concerns. Watching tin is worried it is a Security Threat saying half of the business could raise substantially more than 10 billion. Tesla shares are hitting a record high. The automaker secures one point 4 billion in financing for its shanghai factory. The deal with local chinese banks comes as it begins preparing for delivery of its model three. They hope this will build on recent momentum in the country. That is your Bloomberg Business flash. Anna . Anna thank you, leighann gerrans. It is been a rocky year for u. S. Ipos. We have more on this story next. This is bloomberg. \ anna welcome back to the european open. Maybe 20 minutes into your trading day where markets are open. Many markets are closed and many will be closing early. It has been a roller coaster year for u. S. Ipos with many failures but also fresh records. Many plans has been canceled. Unprofitable companies are raising money in initial public offerings. Ipos include aof number of socalled unicorns. Skidsshares have hit the and all have come under scrutiny. As growth versus profit gets louder after the wework debacle. Other ipos have reached records. Despite losing two thirds of its value since late july, the stock ranks among the top 10 performers. According to data compiled by bloomberg. Earlier this month, the ceo of beyond meat spoke about what is next. If you look at the mobile phone in relation to the landline, nobody had to denigrate the landline. We do not feel we have to denigrate animal protein. We just want to provide a new and better choice. Nearly at a 5 billion dollars valuation keeping many investors on the sidelines. Let us discuss this with dani burger. And shanti calm and, investment director at Brown Shipley. Why have Unprofitable Companies been able to raise so much money from ipos . This has not been a barrier heading into the markets. Dani Many Companies use to wait until they were profitable before listing. In the last two decades, investment banks have taken over the job of bookmaking. They can take on more risks. They are more comfortable with companies that dont yet have a profit. And then we have companies with untested modes of technology. It is harder to price and sometimes we get these valuations that are wildly incorrect. Anna what is it about valuations for a private company contrasted with a public one . Willingt investors be to pay such high prices for private companies in fundraising . Why is there a disparity . Dani the answer depends on who you ask. Talk manager who i did last week. On the other hand, if you listen like the cofounder of the second Biggest Hedge Fund in the world, he says there is an allusion of calm in private markets. When it goes public, you see erratic movement in stock price and you get an irrational bias where investors are scared off the volatility. Even if the companies are highly correlated, investors will sell the company. Anna what are your thoughts for ipos as we head into 2020 . 2019 was marked by a lot of disappointment in the ipo market. Shanti i think it is showing a turning point. The wework debacle showed that investors do do our homework. Are you going to list . Will you sell to someone else . It turns out investors are not willing to tolerate Corporate Governance and no revenues. Pe investors will have to rethink where they are putting their money. Ipos come of these with considerable concerns. One had to pare back significantly. A domestic listing. Shanti it is hard to read too much into the valuation given how little it was loaded and how narrow the Investor Base is. The risk is there is a narrow range of opinions about a company. Softbank had their opinion about wework. They kept putting money in. Once you get thousands of market participants, hopefully you get a more accurate reflection of the value of a company. Anna why are so Many Companies opting for a direct listing instead of the more traditional ipo route . Means youct listing go directly to the market maker. Process. Expensive it is one of the reasons why Silicon Valley and others are turning to the process. The other thing you dont get is a top on day one. With direct listing, a market supplyirectly matches and demand so you do not get a wild mismatch with what it is priced debt and what it eventually is traded at. Sec opened an investigation. Looking at sit it out. It is a looking at sit to citadel. It is unclear what they are investigating. You excited, are about ipos in 2020 . Shanti hopefully, we are a little wiser after 2019. Profitable is it will be interesting to see how the market perceives it. We will have to see what else comes up. Anna thank you to dani burger from bloomberg and our thanks to Shanti Kelemen, investment director from Brown Shipley. Up next, a trade war of its own. Japan, china and south korea are meeting today in china. We have already heard from the south korean side urging some rollback of some of the tensions that they have seen in the relationship. With japan. Beuth koreas moon and a acknowledging different concerns in various spheres. We will see how this could be resolved within asia. This is bloomberg. Anna welcome back to the european open. 30 minutes into your trading day. The chart looks quite dramatic. The stoxx 600. Butell a little at the open back up towards the plot line. Almost entirely flat on the European Equity market. Remember, german, swiss, and italian markets are already shut today. When we talk about where the markets have gone to. Many have never started. Many are closing early. Tomorrow is Christmas Day with most markets around the world closed. The u. S. Will be open while most others will remain shut her is known as boxing day in the u. K. On friday it is business as usual as we head to the end of the year. Business as usual but with lower volumes. Let us get the bloomberg first word news. Leighann in china, the government is trying to set up the economy for a stronger start in 2020. Launching a multipronged push. Suggesting that further reserve cuts are on the way. The reduction will free up funds to lend to the private sector. In the u. S. , new home sales rising in november. The best three months for demand. This reflects a sustained momentum in Residential Real Estate helping to underpin the economy. Increased demand for new homes is being fueled by historically cheap borrowing costs and the lowest Unemployment Rate since the 1960s. The fed may be doing more to quiet the repo market beyond its liquidity injection. The amount understand that the amount outstanding and its foreign reserves since mid september. The change is adding reserves back into the system and may reflect a shift in Foreign Central Bank behavior or maybe a policy step. In hong kong, residents are looking for apartments. Protests lookent set to drag into next year. Real estate brokers have seen a surge of interest in the last few weeks. Among the most popular destinations include australia and canada. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Anna . Much,thank you very leighann gerrans. Dating back more than seven decades. Leader the south korean at a trilateral summit in china. The legacy of japans colonial role continues to impact relations with neighbors locked in a trade war of their own. On the agenda today is export control security. And the white list. A vicious cycle created by measures and countermeasures would not be ideal for either country. Japan has requested the related trading authorities to hold talks but the negotiations have not made progress in the last three years so it is true that we have lost trust. This morning, the japanese government decided to remove korea from its socalled white list countries. It is a selfish and destructive act that will cripple the Global Supply chain. It is sure to draw condemnation from the international community. South korea has unilaterally committed acts that violate japankorea claims agreement. Thating International Laws have become the basis for normalizing diplomatic relations. If japan chooses the path of dialogue and cooperation, we will gladly join hands. We will strive with japan to create an east asia that engages in fair trade and cooperation. South korea is an important neighbor. I urge the country to keep the promises between the two under international law. Anna a look at get some of the tensions and how they played out over the year. Technology the trade spat has farreaching impacts. There is the issue of north korea. Japan and south korea are major u. S. Military allies in the region. Atting key security pacts risk. Have we made progress . Live with us is bloombergs john yu. What is the impact of this . The leadersd talking. Have they made any progress . I dont think we were expecting japan and south korea to suddenly declare they had solved all of their problems but we have had a lot of dialogue. This is the first meeting between the south Korean Leader abe. Rime minister the fact that the meeting took place is a sign of cooling tensions. They had a meeting earlier with the prepare the premier with china. They separately had a bilateral that ended about a year ago. About an hour or so ago. Both sides expressed their opinions. And that they needed more dialogue to work through this together. Anna you mentioned signs of cooling. Are there . The meeting took place which in arelf may be positive but there other signs that these countries could find a path forward . Steps have been taken to try the situation. South korea had threatened to back out of a security treaty that included japan. They did not do that. There have been steps to continue the dialogue including today. Tent onhbors are in seeing the relationship healed. They are taking place in china today. Beijing would like to see the situation return to normal as it were given the overall trade situation with the u. S. Everyone would like to see more certainty. Anna john, thank you so much. Opec plus 1can keep Oil Production down . We discuss that next. This is bloomberg. Anna welcome back to the european open. We are just coming up on 40 minutes into your trading day. A fairly flat session for those markets open here in europe. The german and swiss markets have already closed. Early closings of other markets. Plus has finally come to an agreement about cuts. Energyk to the saudi minister in vienna. He is a proud person. I know he made us all also proud the cousin he took upon him a good decision. This decision you will see coming you have seen it now. 4. 6 times oversubscription. I think we would all be proud as saudis. You will see that his calculation of what aramco is worth would be there. We like what we have seen so far. Thatll be sold for 1. 7 but would be more than enough to believe that it will go higher. Wall street Money Managers are not stupid. Why dont you think International Wall street traders do not get about aramco . And seeing an in relationship with the government doing everything to build its image and its assets and the endowment it has in terms of reserves. How on earth someone can compare aramco with only 60 years of openended ability to exploit 2 66 billion barrels of oil and god knows how many cubic feet of gas with, by the way, a good chunk of shale gas that we will be surprised that we will be producing some years from now. Heavily well endowed company with reserves come a long concession agreement, with talent coming human resources, well developed. Everyility to attract person that can help. Good training programs. Good investment internationally. Ofe aspiration and clarity what this company will do in the future. Very well diversified portfolio. That portfolio will be even enhanced. Energyhat was the saudi minister speaking to bloombergs Annmarie Hordern earlier this month. Stewart allis joins us Stuart Wallace joins us once again. Are the markets convinced enough that the saudis will cut back . They have faith in saudi arabia but not much faith in anyone else in that group. When it comes to russia and the rest come i dont inc. There is nearly as much confidence as they have in saudi. Alwayshe saudis thinking about the pricing they want for the oil price. What is in their mind at the moment . What price are they thinking of . 60. 53. Itting at the closest benchmark they have to their grade 66 is about bang in the middle of their target. On the other hand, if it goes much below 60, they have a real problem with their budget. 20 30 below where they need to be. They could borrow but that is not good for an economy trying to turn itself around. Aramcoas the listing of complicated their thinking . Somethink it has to extent. The Overall Mission remains the same. To control or gauge of sentiment and try to shift it in the right direction. Of a aramco itself, they need a huge amount of money every year to fulfill all of the promises they made. Anna will they still encourage International Investors . There has been talk of doing an International Listing. It has been going on for years. They may look at it in another year. I think the valuations we are seeing on the saudi stock market will make them happy but it makes it virtually impossible for them to sell a significant portion of the company anywhere else in the world. Anna thank you for joining us once again on this Christmas Eve. Let us get to our top stock stories. There are some that are very much on the move. Dani burger has found a few open markets. Dani believe it or not, not everyone is off for the Christmas Holidays already. Broker has largest announced they are going to purchase lewis brokers. The hope is that this will expand their stronghold in europe. It is mostly a european broker they are purchasing. Shares up almost 1 . The purchase of ellison surface tech. For 200 million. They think this will enhance their earnings. 2019, they see earnings of 58 million. Finally, it has been quite a volatile ride for this company. You will recall a couple of weeks ago they let go there ceo and chief exploration officer. Another issue they had was that their plant in ghana lost power. They say this is back up and running. This is their jubilee field. Up almost 2 . Anna dani burger with some of the movers this morning. A little bit of m a to finish off 2019. The american plane maker, the eing ousting there ceo. Their ceo. This is bloomberg. Anna welcome back to the european open. Into a very quiet trading day in europe. Many markets are already closed including germany. Some of the markets having a shortened trading day which applies to the u. K. , france and spain. Is aboutcally abe to hold a News Conference following a trilateral meeting with the chinese premier and the south korean president in china. Interesting focus on what is going on in japan between japan and south korea at the moment. We are waiting for that press conference to start in about eight or nine minutes time. Let us get a Bloomberg Business flash. Here is leighann gerrans in london. Bmw is beingann scrutinized. Over its reporting practices. This comes as the german carmaker is in a tight race with daimler. Bmw says it will core operate fully with the investigation. Bytedance is considering selling tictoc to address u. S. Concerns. Washington is worried the Popular Video app is a Security Threat. Tesla sales are hitting a record high. Secured 1. 4 has billion in financing for its shanghai factory. The deal with local chinese is preparings it for delivery for the model three. Tesla hopes the shanghai factory will help it builds momentum in the country. That is your Bloomberg Business flash. Anna thank you so much. Its embattledoved ceo, Dennis Muilenburg. This tod decided to do restore confidence in the company. For more, our Global Business editor benedict has been covering this story from the european angle. He joins us now from berlin. Why does boeing say this move is necessary. It comes after the wellknown story around the 737 max. The new information surrounds the Space Program. Benedict the Space Program is probably the last nail in the coffin for the ceo ousted yesterday. It was supposed to dock at the International Space station but the caps off never made it there. A much bigger issue weigh in the company is the future of the 737. The cash cow airplane grounded for many months and nobody knows when it may be back in the sky. , the ceo thaturg out yesterday had put fairly optimistic projections on when the plane might fly again. Not long ago he said by the end of the year. That is not happening. There was some unhappiness on the side of the regulators byy felt pressured by boeing these fairly optimistic projections. A buildup toward the ousting of Dennis Muilenburg there was no reliable timeline on the 737. They had stopped production on the plane. There was unhappiness on the regulator side and the customer side. They all came together and bubbled over and the Board Meeting on sunday was where they decided that enough was enough. New has beenmebody with the business for a little while. He has a different background than engineering and aviation. An addict he joined benedict he joined in october. Had unitedenburg the chairman and ceo. Isr calhoun is a stop a stopgap or a permanent solution is unclear. Those we have spoken to in the last 24 hours are suggesting that he is as top gap. A stop gap. They have been bleeding cash because they have kept producing the 737 and parking them on the tarmac. None of them have been handed over or sold to customers. Billion ofut 50 unused kit gathering dust and nobody knows when it might come back. David calhoun will need to figure that out. A wellconnected person in the u. S. And in corporate circles. He has a ge background and a hevate equity background and will have to see if he can pull together all of these constituencies to right the ship in the next few months. Anna another story i know you have been following. Bmw being investigated. What is the story . Benedict simply when is a car considered sold. Bmw handed over cars to the u. S. Dealers using them as demonstration cars or loaner cars. This is the probe. As sold whene cars in fact they were not properly sold to the end consumer. We have seen this with Fiat Chrysler as well. Y agreed to pay 40 bill 40 million in september to settle this. Not huge amounts of company for companies this size but an embarrassment. Anna thank you so much. Boeings airbus and on the bmw story. Markets will be closing early in the u. K. And france. This is bloomberg. For the news of china, japan and south korea. Everything from trade is on the agenda. We will take you there live very shortly. Boeing drops its pilot. David calhoun will replace as the new ceo. And bmw sales pro. The german automaker is being investigated months after Fiat Chrysler paid a penalty for a similar issue