Higher. Eurodollar up by 0. 4 . Is the ecb getting worried at this point . 1. 2163. The dollar is broadly lower. The pound just taking out 1. 35. We havent been at these levels since this time last year. What is fascinating here is what is happening with bond markets as well. Weve basically got yields and stocks moving in the same direction. That is something that is pretty interesting now. It certainly points to this reflation trade at the moment, with the catalyst still having legs. Alix the question is how long is that last. Lets dig into some of the top stories guy was minting. Germany extending its partial lockdown. Sweden shutting some schools as well. Joining us with more is sam fazeli, Bloomberg Intelligence senior pharmaceutical analyst. We have seen more targeted lockdowns and extensions. Is any of that working now in europe . Sam yes, they are. Funny that we have countries going at different paces which is normal because they have different issues with regards to the number of people infected. Its rules a bit. France relaxed rules. In all honesty, the only difference i can feel now in france, and i think it is the same in the u. K. , is how you can socialize with people. Other than that, everything is open and running. The fact that other countries are going through this is because they didnt take the right precautions before, and now they are doing what france on the u. K. Did before that. Guy are we starting to see the thanksgiving effect in the u. S. Numbers . What does that tell us about christmas here in europe . Every country will have its own little path at the end of the day. I dont think that there is going to be a christmas specifically in any country that is going to be the same as each other. That is the problem that we are going to have to face and accept. Alix will that be excepted . Dan what else will that be accepted . Sam what else can you do . Everyone is exhausted with this. But people understand that in order to keep it under control and knock it on its head while we wait for our vaccinations, you have to just behave and stick by the rules. Some will break it. I thing most will stick with it. We we are going to guy are going to leave it there. Thanks very much, indeed. Boeing getting a landmark order for its 737 max jets with ryanair. Joining us on the phone to discuss all of this, bloombergs European Aviation reporter sid phillips. Lets talk about what is happening here. This is a monster deal for boeing. I am wondering on the timing for ryanair. Just talked me through why Michael Oleary is making such a big commitment at this point to such a controversial aircraft. Sid this is a massive deal for boeing, especially at a time when the max jet is going back into service after almost two years of being grounded following those two fatal crashes. It really shows the commitment for ryanair in terms of the growth that it sees coming up as travel returns from the pandemic. Obviously ryanair, like everybody else, has cut capacity, but they have been talking about how they see an explosion of travel when travel is allowed and once the vaccines are all out, and covid is under control. Alix so why . What is ryanair seeing that is going to leave them this optimistic to really put some money into this . Siddharth it is a couple of things. It is over a couple of years, not just for one year. They are saying that long term, they expect to gain market share, and essentially effect that the plane has much lower operating costs, as well as having more seats, would allow them to gain market share while cutting cost. That is what makes them so confident about this plane. They have furthered their purchase by making 75 more, taking the total to 210 planes. Guy what kind of a risk is michael taking here at ryanair . How much flex ability do you think there is in this contract if, for instance, case counts continued to climb . If there is a problem with the rollout in the vaccine . If the season isnt going to be as strong as into debated . If the Summer Season isnt going to be as strong as anticipated . Siddharth that is one of the details we need to ask ryanair because yes, it is a massive risk, especially at a time when travel is sort of limping back. Every airline has got a different view on the recovery. Shorthaul travel, which ryanair specializes in, is expect it to be among the fastest to grow back, while longhaul travel may take a little longer. Alix do we have an idea if the planes they ordered were the ones sitting on the lot from boeing . As guy helped me understand, is there another door that ryanair needs . Can we get a little granular on that . Siddharth this is not the plane of that deal. This is a special variant has more seats, and as a result, have an extra emergency exit, so they are not exactly the same as the planes on the ground, but ryanairs special variant is a higher capacity version of the plane. Thisin terms of where leaves the rest of the industry, will they follow . There are a number of big users of the 737 around the world. Ryanair is the big one out of europe. Southwest is the big one in the United States. Do you think we are going to see similar deals over the next few weeks and months . Siddharth it will be interesting to see what airlines do because a lot of their Balance Sheets have been constrained by the covid virus, and resulting collapse and travel, so it will be very interesting to see how they plan for the recovery in the coming months as we move forward. Guy we are going to leave it there. Sid, thank you very much, indeed. We look forward to talking to the ceos shortly to get answers to these questions in a little more detail. Dave calhoun, the boeing ceo. Michael oleary, ryanair ceo. A conversation with them next. This is bloomberg. Ritika lets check in on the bloomberg first word news now. President trump is expected to sign a bill that could lead to Chinese Companies getting kicked off americas stock exchanges. The measure approved by Congress Call for u. S. Regulators to ancial the companies fin results. Chinese firms will have at least three years to comply. It may be president trumps last chance to shape the fed. The senate is expected to confirm the nomination of Christopher Waller to serve on the Federal Reserve board. Waller has been the Research Director at the st. Louis fed. The number of americans hospitalized for covid19 is at a record high. The department of health and Human Services says more than 14 of hospital beds in u. S. Hospitals are now taken by coronavirus patients. Texas has the highest number of beds occupied by covid patients, with more than 9200. Rhode island has the greatest percentage of beds taken by virus patients at almost 24 . France is putting pressure on European Union negotiators not to make anymore more trade concessions to the u. K. , warning they could veto a brexit deal between the eu and the u. K. If they dont like the terms. Negotiators are trying to reach an agreement in the next few days. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Guy thank you very much, indeed. Lets get back to the big news from the travel sector today. Boeing receiving a huge boost for its troubled 737 max in the form of a monster order from ryanair. Will buy an carrier additional 75 of the aircraft, with 50 set to be delivered next year. It is a landmark deal for an aircraft that has been so troubled over the last couple of it was grounded. Lets get more details now on the deal. Joining us now on bloomberg tv and radio are boeings ceo david calhoun, and ryanair ceo Michael Oleary. Gentlemen, good morning. Thank you very much for your time today. We greatly appreciate it. Michael, if i might start with you, this is a huge order for a very controversial aircraft. Why are you making this commitment now . Why have you decided that this is time to do this . And are you 100 convinced that this aircraft is safe . David good morning. It is good to talk to you. I am convinced that this is the time and the moment. Owen has gone for a torrid year with the grounding of the max and the impact of covid. I think you look at the work that the team at boeing, the have done. This is the most audited, most regulated, safest aircraft ever to be delivered. This aircraft has already flown for 22 months before the tragic accidents that befell it. 47 Million People have already flown in a boeing max aircraft. But the systems of been redesigned. They have been upgraded. This comprehensive training. We have three max simulators already up and running. We put our pilots through it. They love the aircraft. Heartened i think by the theystrong support that gave to the work that dave and the team at boeing have done. It is a great aircraft. It is a safe aircraft. We cant wait to take delivery of these planes, and we know our customer is going to enjoy slang on them as early as the summer of 21 enjoy flying on them as 2021. As the summer of guy youve got an awful lot of aircraft parked on the lot right now. The ones michael are ordering are not those aircraft, not the ones currently built. They are going to be, i understand, new ones, ryanair variants. What do you do with the ones you have currently sitting on the lot . Are you going to make any money, considering it is such a buyers market, after the transaction youve done with michael . David the forecast for depleting that inventory is roughly a two year timeframe. We are confident that can be done. The must important thing about the economic associate with that is how you do it, how patient you can be as you lift through this recovery. We have incredible faith in the recovery of the industry. If anything, relative to the early projections we made with respect to recovery, this Vaccine Development for potential Global Distribution over the course of 2021, if anything accelerates our view of recovery and the faith in that recovery, relative to where we the covidwe began crisis. We will be more and more patient. It will still take us to full years. I am confident of that. We have enough liquidity to allow for that. That is the way we are playing it. What i am very confident in, and i think what this order is a testament to, is the value of the airplane to the airlines. , low cost,odel lowfare, is the model that is creating the growth track that our industry has enjoyed for so long. It allows for more passengers. It introduces passengers to the industry. Its birth tourism. Tourism. E it spurs all of those things. For him to choose this aircraft is a testament to that value. That is what we will have to hang our hats on. Guy michael, positive words from dave about the outlook in terms of demand, but i just looked at your november traffic numbers out yesterday. They were down 82 . Isnt this purchase a little out of kilter anticipated demand at the moment . Why are you putting your Balance Sheet at risk . Is there any flexibility in the terms of the deal if demand is not come back as fast as you anticipate . Michael actually, there isnt, nor do we need that sexy ability that flexibility. The secondbeen in locked down. I think by the time we get into the new year, the vaccines are coming. They are already beginning to be licensed. This is, travel is going to snap back very strongly. This is an order not for next summer. This is for the next five years, the next decade across europe. The economics of this aircraft, i have been banging on about this for the last five years, it is a game changer. It offers us more seats. We carry eight more passengers per flight, with more legroom, more comfort, but it burned 16 less fuel. I spentst full year, 200 billion in fuel. I can now pass those savings to my customers any form of lower fares. If travel doesnt recover as quickly as we predicted, we leave some of the older ones grounded at the moment. I on them. I dont have to pay monthly lease rentals. Team cans dave and the deliver me these aircraft that carry more passengers but burn less fuel, and have 40 lower noisy mission, i will fly those aircraft. I will ground some of my older fleet if i have to. Im convinced that europe is going to rebound very strongly. I think you will see vaccines widely available by the end of the first quarter. Europe has been locked up for the last 12 months. I think there is huge pentup demand for travel. I dont think people will go back to longhaul travel that quickly next year, but i think you are going to see by midsummer next year a huge demand for the beaches of portugal, spain, italy, and greece. Business travel starting to move again. We are going to get back to people moving using lower fares, but this aircraft order is going to allow ryanair to lower our cost, lower our prices, and to lead what i think will be a very strong recovery in europe. Also, the capacity has been lost in europe. Thomas cook has gone bust. Many of the Legacy Airlines have reduced their fleets quite sick. Desk fleets quite significantly fleets quite significantly. We are going to get our young people in europe back to work. Guy that is the picture in europe. Michael talks about the opportunities he sees there. Do you think similar opportunities exist in the United States . If they do, do you think we will see similar orders from the big 737 users in the United States . I am thinking particularly here of southwest. Have you talked to them about a top up a deal like the one michael has just done . David i am not going to call out individual airlines as to who goes first or so forth, but i do want to reiterate the timeline that michael outlined. We are not measuring recovery in months. We all know weve got a rough couple of months ahead of us. Everyone is prepared for it. But that Vaccine Distribution will change the psychology of the flying public. Ultimately this will get under control, and i have a similar view of the summer months for the u. S. Airlines. Backat summer month comes and bookings increase, and i think they will increase quickly because pentup demand is real, and it is real in the United States as it is in europe, i believe then the competitive juices that exist in the airline industry, and they are serious juices, they will come to bear, and airlines will want to reestablish their leading competitive positions. So that usually results in orders. I am not going to guess exactly which one or when or any of the sort, but i have a lot of faith in the recovery, and i have a lot of faith in the competition that exists amongst the u. S. Airlines, and i believe this market will return quickly. Michael i think if we get some of the details of one of the following orders, we are already talking about an order for the max 10 which is going to be the new, larger 737, the 228 seat aircraft. We are looking forward again to 2024. , 2025 we are going to need to 2024, 20 when he five. We are going to need a bigger to 2024, 2025. We are going to need bigger aircraft in europe. Alix david, i wanted to follow on both of those points. Conversations might be advancing for other orders with ryanair, but a lot of the American Airlines are settled with a ton of debt. They are asking the government for more and more bailout money. What is your degree of confidence that you are going to have followthrough with big orders from some of the key players . I know you wont give a specific timeline, but youve got to have a confidence level. David i agree. I do believe the bill being discussed as we speak in the United States legislature is very important to that snapback because if the airlines can sustain their operations from now until this virus and the psychology associated with it begins to move the other way, they will be that much more capable of a robust recovery. In other words, starting up those operations, bringing those airplanes back into service, etc. So i think this is a very important piece of legislation, and i am very hopeful they get something done on that front. With respect to Balance Sheets, each of the airlines have their liquidity challenges, as does boeing. They are committed to the recovery. Their planes actually serve as an incredibly secure collateral for lenders. So capital availability is actually a little more robust than people think. It is a question of who moves first, and to what extent do they move first. They all have different plans, different ways to come out. I cant guess as to how and when they do that, but i do have competitiveness, and i think they are all going to want to win when that robust recovery shows up. Alix there seems to be steps to solve the airbus boeing tariff issue. I wanted to know if the deal for the airplanes compensated for any risk in the middle of a u. S. Administration transition. Anhael i think as industry, whether you are an airbus customer, a boeing customer, we want an end to the tariff wars. It does not serve our customers, our Tourism Industries will not benefit from the imposition of tariffs. There is unanimity across the house. I think there will be a rapprochement with the European Unions. I certainly think the americans do. It is not in the interest of our consumers. Look at the devastation upon the u. S. Tourism industry, europes tourism industry. Our hotels are empty, Visitor Attractions are empty. We gotot to getting to get these things moving again. I am confident that a deal will be done between the european and the american authorities, hopefully early in the new year. David i might add that the Current Administration i think is intent on trying to resolve this during their tenure. I know there is still open and constructive dialogue going on on that front. I have faith both now and later. Guy michael, lets return to desire, and customers to get on that airplane. Dave dismissing earlier a rebrand for the aircraft. My colleague Julie Johnson breaking that story a year ago, apparently it was discussed at the paris air show. Do you think it would be a good idea to rebrand the aircraft . The using there is going to be an issue with getting consumers on them . Michael honestly, dont think so. It is the 737. 737 has been the most successful Aircraft Program in the history of civil aviation. Do i think our customers will care if they are getting on a max aircraft . Honestly, most of them wont know, but if anybody does, we are so proud and so assured of these aircraft, if some buddy once to get off of a max aircraft, you can go on the next flight operated by an ng. There will be no quibbles about it because it is so safe. I think once people get on the plane, see the interiors, enjoy the experience quieter, more fuelefficient and in the airfaresf aviation, have conquered almost every known fear of air travel. Customers will convert to these aircraft very quickly. I go back a couple of years with the 787, issues with the lithium ion battery. Fixed, redesigned. The 787 has been a fantastically successor program, and the 737 max will be, too. Guy thank, indeed, Michael Oleary, dave calhoun thank you very much, indeed, Michael Oleary, dave calhoun. This is bloomberg. Wanna lose weight and be healthier . Its time for aerotrainer. A more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. It allows for over 20 exercises. Do the aerotrainer super crunch, push ups, aero squat. It inflates in 30 seconds. Aerotrainer is tested to support over 500 pounds. Lose weight, look great, and be healthy. Go to aerotrainer. Com. Thats aero trainer. Com. Guy stocks finishing the day in europe. Lets talk about the session weve been seeing. Pushing up towards the end of the day. More positive sentiment coming out of United States driving equity markets back to the green. Yields moving lower over the last hour, which is interesting. In terms of where we are, still not back up to the 400 level. Lets talk about how we are looking from individual market point of view, some of the individual assets, eurodollar 1. 2150. We are pushing ever higher. Is it going to be a problem for the ecb . We have a cable rate that went through 1. 35, may be optimization maybe optimism surrounding the brexit talks. We are up nearly 1 today. Bond yields moving lower. Prices moving higher at the moment, which seems against the grain in terms of what we are seeing. Broad moves in the data not fully reflected. Certainly the data we saw today, the climbing case count we are seeing stateside. Nevertheless, but numbers tomorrow, friday payroll date in the United States. Individual market throughout europe, the ftse 100 is up considering the pound is up. 6480 seven is where we are trading there. The dax giving up a little bit. The periphery trading let show you what the ryanair share price is doing. Dayair has had a less good in terms of the share prices we have seen comparative bowing. Compared to boeing. Ryanair still up 2. 66 . The travel sector getting a boost from the transaction today and the delta outlook, very positive. Ryanair benefiting from both. The sector trading up. Rollsroyce picking up a bit. Rollsroyce up 14 . A note suggesting earlier on it is looking for way back into the narrowbody market, which has not been here for many years. Interesting to see if it can make that transaction. A lot of volume, but less margin. Alix lets wrap this in with what it means for the fx market as brexit talks continue. The Eu Recovery Fund is in doubt. Joining us is jane foley. We had verbal intervention last time from philip lane and also doubts about the Eu Recovery Fund. Does this mean the move is sustainable . Jane i think the politics has come to bear and could way in the next few weeks. If we look at the technical factors driving up eurodollar, they are still very much there. If you look at real Interest Rates, they are in favor of a weaker dollar and firmer euro. If you look at the most recent cpi data we have from germany, that is very weak. That is a problem for the ecb because if the market begins to think they cannot do that much to fight off the deflationary can they disturb this pattern we have in terms of real Interest Rates and push the euro lower . I think they have a difficult hand to play next week at their ecb meeting. They may not be able to weaken that euro. What might be able to is the politics turned sour. That could be because of the budget delays related to hungry and poland to hungary and poland. Guy eurodollar is just one part of the equation for the ecb. We have not seen the same appreciation of the euro against chinese currencies, which is a critical part for economies like germany which export a great deal. Do you think the ecb will take a more nuanced approach to what is happening if we do not see a significant appreciation going against the chinese remember the the chinese remimbi. There are talks the poc is getting concerned about what is happening with its currency. E what you just described the Effective Exchange rate is far more important than any individual Exchange Rate. They will be looking at this. You are quite right. I think the pboc has become concerned about the threat to its currency. That affects market sentiment. There is perception in the market asia is doing a lot better in recent months because they have handled the covid19 crisis better, and their economy is responding to grants. There has been a lot of money piling into asia and china. That is driving up the Exchange Rate. We have seen the pboc react. Theyre concerned about the increase of the chinese remember the against the yen. China has been buying bonds potentially to contain the movement to that Exchange Rate. It is likely we will see more management from the pboc in that way. It does mean that from an Effective Exchange rate, the weakness of the dollar will be offset by the strength of the remimbi for countries such as japan and europe as well. Alix you mention fundamental reasons for the strength in the yuan. What part does the weaker dollar continued to play in this when you have the bloomberg dollar index at another low since april 2018. What is this responsibility . Jane it is quite disruptive. We tend to concentrate on eurodollar. If we look throughout at what Central Banks are having to do, they are having to try to push back against the dollar. The fed has to carry on doing quantitative easing. The market thinks it could carry on pushing down on the yield curve if need be and therefore weakening the dollar. We have seen at the start of this month a real pushback from the rba. , quite candidly in a speech in november, said he was pushing down, or introducing quantitative easing along the longer end of the curve to stop the Interest Rate differential on australian bonds bringing in overseas investors. That is the sort of currency intervention. Qe is seen more of our currency intervention and a push down on Interest Rates and is the market assumes the fed will carry on doing that, i think it is the case that other totral banks will carry on stop the currencies appreciating too much against the u. S. Dollar. 1. 35 on the cable rate. Going down to the wire on brexit. Your thoughts . Jane that is probably the wrong Exchange Rate to be looking at. Eurosterling tells a different picture. What we have an eurosterling is sterling weakening in the last couple of days back up above the 90 level. If we look at eurosterling what we have seen is Sterling Holding firm, holding below the 90 level. Actually finding it quite hard to hold above that there it weakness we have seen in sterling the last 24 hours reflective of these concerns that it brexit deal may not be done. We have had a lot of pushback from france, from other eu ministers concerned that michel barnier, there negotiator, might be giving too much to the u. K. Side. Could go to the wire. Alix i am skeptical we will ever get a moment when we know if we have a hard brexit or not, and we have this rolling uncertainty we have already had for the last four years, what are the Options Markets and positioning telling us . Jane we have seen a rise in nervousness. We have seen a new deadline approached, december 18. We have this rolling of deadlines for the last couple of years. That is surely the deadline of deadlines. I think there is expectations we could see something over the next few days, and i think right now the market does need clarity. We know that whatever happens in terms of whether we get the skinny deal or not, there are going to be lines at the borders in the u. K. , there is going to be disruption, there is going to be political fallout. That political clout will carry on until next year. Whether or not we get a deal at this stage. Guy we are all on standby for the weekend. Thank you very much for your time. Jane foley of rabbo bank. Really appreciate it. ,he ftse firmer, but only just fading into the close. These are the final numbers. Up. 5 on the london market. 64. 90 on the climate. 6490 on the continent. The ftse dropping off its highs into the close. We count down to the weekend to try to figure out where we are on brexit and the allimportant payroll number out of the states tomorrow. All of that covered on the payroll at the top of the hour. Jon ferro and i will be taking you through the hour. This is bloomberg. Ritika this is the european close. Coming up, an exclusive interview with letizia james, new York Attorney general. That is at 3 00 in new york, 8 00 in london. This is bloomberg. Live from london, i am guy johnson. Alix steel in new york. This is european close. And is putting its trucking just ticks into two separate companies after looking at strategic alternatives, looking for buyers and deciding this was the right move. The market seems to like the idea. Share prices rallying we welcome the chairman and ceo, brad jacobs. Businessat selling the , why is this split the right way to go . Year we have looked all long at what would be the best way to improve and create significant equity value. As we disclosed in january, we thought about selling or spinning four of our five Business Units and we looked at every permutation, and at the end of the year we came to the conclusion having a nice clean separation in our transportation business, which is everything that goes on trucks, and our contract logistic business, which is warehouse, is the best way operationally and financially to create significant value. It at simplicity, it is easy to understand, we can focus more, we can have Better Capital allocation, better equity currency in order to do acquisitions, and from a financial perspective, investors will be able to see more clearly the extremely attractive Financial Result we have in those businesses and hopefully give us a valuation much closer to or above our competitors, many of whom, we have better numbers. Alix the elephant in the room as the debt and the leverage. How will you get both of these companies to Investment Grade . Brad i do not want to get ahead of the grading agencies. What i can tell you is we will have both of them be Investment Grade. Maybe one will be ahead of the other, but in due course both will be Investment Grade. A possible commitment we are making carry we heard talking to our stakeholders make the company more simple. Clearly by dividing it into two have come and become Investment Grade. From an operational point of view, separation is great. From a financial point of view, we should be able to get a much higher multiple if we are more pure plays. Takedo you think you will a different view in the future of gearing companies up . You came into the crisis with a lot of leverage. I am wondering if you learned lessons and maybe that is not the desirable way to work your way forward . Agreeim not sure i would with the concept of a lot of leverage rate of leverage. A. Have three times ebit wouldve grown, apply that to Debt Reduction and been down two times ebita just doing that. I am comfortable with the leverage we have had. It does not matter what i think, it matters what the market thinks. The market clearly rewards companies with lower leverage. I will paraphrase do not argue with reality because reality always wins. The reality of the market is we need lower leverage, so that is what we are going to do. Alix there is a conversation you will have additional cost because the two companies, when you have a conglomerate you can streamline costs. There is worries that will change. The Bargaining Power with other companies will be limited. Walk us through how you will manage that. Brad therell be some because we will need two boards and we will have to add executives and had a rockstar cfo, we will have to have a rockstar head of strategy. There will be positions to fill and costs involved in that. Overall we should be able to offset all of that with being focused for the pure play. You have been a serial consolidator. You think you will continue to be a serial consolidator and you think the world no longer rewards consolidation and trying to get some of those costs out of the business . Brad i have been a consolidator. The teams ive led, we have done over 500 acquisitions. We have created tons of value for shareholders. I believe in the value of m a when it is done correctly and when it is not just buying something but also having a clear plan and executing on that plan to optimize it. I have seen firsthand tremendous value created from m a. I am not close to m a. In the last years weve only done one deal for five years, and it is not closed yet. We are not a one trick pony. Bizan do m a and below the and grow the business operationally. We have grown the business without any acquisitions by trillions of dollars of Revenue Growth and we have grown the to 1. 6 billion. We have added 500 million of ebita. I believe in the power of acquisitions and in the power of running a business very tightly. Go, before we let you operations across 17 different countries. I would love to know your role, exposure, and capacity for Vaccine Distribution. Been active in vaccines and last as two weeks and are honored to do that. Our expedite business will be transforming transporting vaccine and temperature control vehicles. All of the Pharma Companies producing the vaccine are customers of ours. Where we are participating is not where the fedex, ups will do , which is the heavy lifting we are participating in the secondary market. Syringes, saline, styrofoam packaging, dry ice, refrigerants , temperature controlled packing material. We have a lot of customers who need to transport that and that is what we are doing great as much as we are going to profit inspiring and gives us a lot of positive knowledge of the company that we are participating in one of the most and cast of things humans have ever done. Guy brad jacobs, Xpo Logistics ceo. Ray to talk to you. This is bloomberg. Great to talk to you. This is bloomberg. Alix breaking news. Opecplus agreeing to a small production hike in january according to delegates. About 500,000 barrels of oil a day with the monthly review. Joining us to break it down is julian lee, Bloomberg Oil strategist. What is your take on this . Monthly meetings, five hundred thousand barrels of oil a day in january. What is your initial reaction . Julian this is clearly a compromise. It is not what anyone was initially putting forward. Relaxing ofwanted a the output restrictions that began later in the first quarter. Others wanted a bigger increase sooner. They seem to have met somewhere in the middle, which i guess is where diplomacy takes you. What they appear to have agreed is they will increase output by half a Million Barrels a day from the start of january and they will then hold monthly ministerial meetings to assess the market and decide whether or not they can add a further 500,000 barrels a day or perhaps a different amount every subsequent month. That will be a lot of meetings. Guy they are kicking the barrel down the road. Will we have to go through this every time . This has been highly controversial, this meeting. Will we see more of it . Julian it is very possible we will. One of the reasons they are taking this down the road is there is huge uncertainty over whether the market can withstand additional volume from the producer group. Demand recovery is still patchy. Inis still fairly weak certain parts of the world, there are still large inventories of crude oil and Refined Products hanging over the market. Downwants to bring those in order to rebalance supply and demand, so they do not want to open the taps too quickly. Who brought this deal home . The headline was russia was chairing and not the saudis. Who made this happen . Julian i think they all made it happen. It is unclear where the proposal originated. Thes unclear precisely why Saudi Oil Minister stepped back from chairing the meeting. There are two possibilities. We know there was a fundamental disagreement between saudi opec metd the uae when as a group on monday, so this deciding to saudis step back from chairing the meeting in order to create space for tempers to ease and to ,opefully reduce the tensions or it could have been the saudis are deeply upset by the uae and this is monday i hesitate to use the words temper tantrum because that demeans it, but this is perhaps a reaction to that. At the moment we do not know. Alix thanks a lot. A fascinating outcome. Bloombergs julian lee. If you want to know more about oil, because obviously you do, tune in for the return of commodities edge at 1 00 in new york. We will break down the headlines from opec and tap into the bold, bitcoin and tap into the gold, bitcoin, and copper markets. That was interesting couple of hours. There is more stimulus conversation in the u. S. Mitch mcconnell pushing for some kind of deal. Guy i am fascinated to see what happens with the deficits toil deficit story in the oil market. We talked with the ceo of boeing and ryanair. Wondering what airbus makes of all of this . Plenty of great conversations coming up. David westin will be taking over. Senator bill cassidy of louisiana will be joining, next. This is bloomberg. David from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. Get a check on the markets with abigail doolittle. Equity markets are up mildly. Some encouraging news on the stimulus. What is really going on . Abigail you may be the expert on this one. We have had interesting off air conversations. You are right in terms of the stimulus on the table, showing the idea there is some bipartisan support that some sort of a deal will get done, not too big, not too small. More record highs for the s p 500. The top sector is energy. That is encouraging around the idea of stimulus and the recovery of the economy. That would cause demand for oil. We also have the russell 2000 smallcap index railing even more, up 1 . Not a record high. Stocks across the board rallying. A piece of it is the dollar. The dollar is weak,