Was that he expected to have a part of that deal. Investors did pushup stocks. The s p 500 hitting a fresh record asia markets climbing to their highest level in three months. Stock markets picking up on some of the news. A bit of green, bit of red we are tipping slightly weaker other factors around the fed whether we get signals or rates around this month. Numbers coming out on gdp and on the jobs front we also weighed through the latest on brexit and a general election significant risk lets peel into these sectors to see what is gaining or losing. Dont forget investors have been dealing with much of the same dialogue all of these different fronts. Most of 2019 have to deal with banks at the bottom. Sliding by about a third a percent. Health care trying to recover some losses. Not a bad month so far which is what weve seen on pace utilities towards the charts along with the industrials as we talk about the trade optimism. Technology slightly weaker we have shares of alphabet raking through those numbers chemicals on the flat line insurance stocks trading flat. Glen co angelo american and travel getting into the green. Easy jets among top performers lets look at the individual markets. For the uk, 17. 19 is where we sit. It is been quite a challenging trade with the brexit news and whether there will be another vote the ftse is down 1 as we push forward. In contrast, the dax has been gaining. Up 4 . Going with the spanish market. Elsewhere, if you are looking for losses, its the health care losses that have moved to the down side. 2 on the back foot. The earnings, the big focus has been bp, despite posting a sharp drop in the net income as the market was hit by sharp drops in oil. Replacing the profit of 2. 3 billion bp flagged up to a 2. 3 billion charge as it prepares for a 10 billion asset sale by the end of 1019 speaking to cnbc earlier this morning, bp ceo said the company is getting closer to the end of a sweeping overhaul. We are about twothirds of the way through. We think what we laid out in 2016 is also strategy. We have twothirds of those projects on stream that will ramp up through 2021 we have a series of targets in 2021, which are set to generate Free Cash Flow while it is difficult with what is going on with u. S. And china, demand was soft by the middle point of the year, it dipped to a Million Barrels a day. Now it looks like it could be around 900,000 a day there you go. The chairman of the bc energy group. Good morning to you. Is he right on your reckoning about the softness of demand running through the end of the year and into 2020 we put the number to 800,000 barrels a day growth next year probably coming around one million. Overall the market is looking sluggish slowly everyone relies demand growth is not the driver the market has more upside right now. We are coming into the year where demand is relatively strong for crude oil youll see a lot of refining buying happening you may see them go up towards 70 that is going to support for Companies Like bp. The major question for the oil majors is translating into what this means for equities the question is around Energy Transition and how companies will be able to adopt and how quickly theyll be able to adapt. Do you think that the oil majors are it actually working at the pace they need to given the momentum behind the public backlash, investor backlash on their markets. I think there on top of their game next years, well have Oil Demand Growth worldwide. What you may see with all the Public Opinion is that people may be afraid to invest in oil leading to better returns for those who are invested when security and supply is not there, people start crying and they need it most and the prices go up. The reason they look good, they have done their homework what they have done is cut their cost he will tell you, look, we have managed to bring their cost down they still make a good return. So around 10 to 15 . Youve got oil up around 15 but natural gas down 15 what is going on in that this year was dramatic on gas. We see a lot of oil and gas coming out of the market the u. S. Is pushing everywhere when you look at it, there is only one way to go that is the european storage that is filling up we are about 95 full. Asia doesnt have storage so much china is a big buyer but they are not able to support so much when they are not buying you need storage and cold weather. Thats not yet the case. We had a fascinating account about saudi aramco what do you make of the choices that will be presented when there is another major player likely to be in the market first of all, i think thats a country risk you are dealing with here where you have to take a view thats number one . It is number one overall. Where the country is oil, yes that will be a reasonable return you have seen the numbers from aramco bare in mind the transition they are going through. What that means in terms of stability, that is a challenge the country has its pluses and minuses. The valuation was the day. That is not going to be helpful for anyone it has been an interesting 2019 coming out of last year, where we were asking questions about the discipline back to the price. Do you think theyve successfully achieved that absolutely. They have been cutting more. Saudi arabia has been cutting about 500,000 barrels more when you peel a look from where they are right now, where they have been overcutting. Additional cuts they need to do are not so much. As long as they and russia stick together, the market is going to have a good defense on the down side if they dont, you may see briefly 40 before again it will bring it up. Right now, the market looks very very good for them is shael production a factor . That has changed the game historicy it goes in cycles. Overinvestment, then the market came down. You can switch on and off shale. We have huge growth rates but beyond the peek. This year, we have higher rate than next year you will see now a slow down of the growth rates in the u. S. I want to come back to the comments you made about russia and saudi arabia the relationship really agreed on the cuts. Putin made his visit to the kingdom. First visit in over a decade how is this affecting the dynamic. I think they were working with each other. Today, he is the king in the middle east. Hes completely outsmarted the u. S. It looks like without him, nothing works. It looks like right now they are moving together. The saudis need the russians for the russians, doing a little bit, maintaining a higher price is good for them the russians only need to defend 40, maybe 50 saudis wish to have 70. That is hard to achieve. Thank you lets get back to karen. I want to take you to earnings reaction of orange, the French Company sliding over 1 . The threemonth performance solid. Up more than 6 in that time the sales growth boosted by greater demand in middle east and africa out weighing sales in france and spain. They declared an inter rim dividend for 2019. Deutsche boerse posts a jump also backed targets for the year on an earnings per share basis, they missed expectations due to operating costs that is due to impact prices today. In the meantime, come erzbank has posted a rise in profit. Boosted by cost cutting and added more customers and grew its assets the german lender is due to publish results. Swedbank is due to publish. They will consider sanctions and the result of the probe is due early next year. Share price down more than 2 in reaction to the news taking its threemonth picture slightly lower. Coming up on the show, the s p 500 hits a fresh record high all eyes on whether that number can be topped. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Rowithout the Commission Fees and account minimums. So, you can start investing today, wherever you are even on the bus. Ooh, like this guy. Yeah, i bet hes investing right now. Hes taking charge. Hes grabbing the bull by the horns and he just missed his stop, yeah. Its time to do money, so what are you waiting for. Download now and get your first stock on us. Robinhood. No coverup spray here. Cheaper aerosols can cover up odors in a flowery fog. But febreze air effects eliminates odors. With a 100 natural propellent. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Washington is considering increasing sanctions according to the office of the u. S. Trade representative. The exemption is due to expire on november 28 they are close to securing a phase one trade deal the u. S. federal trade commissions is considering restricting American Companies from buying equipment from huawei and zte the companies will be voted on next month the chinese firms will be able to test the partial ban. A look at markets and where it stood. It was a positive day. The s p closed at a new record high investor optimism coming to a high around the expectations as. Talking about sentiment if that is improving here. If i want to get leverage to that, should i be going back into emerging markets at this point . Emerging markets have done quite well if you look at china. They are up 23 , 24 outside of china, it is only 10 to 12 it is being hit very hard by what is going on with the u. S. Dollar, which is tremendously overvalued we are looking for that sentiment to improve the emerging market stories is a domestic story then we are positive wherever you look, there do seem to be one or two countries within blocks that are struggling some because of the stronger dollar i thought these countries were all getting their houses in order. Clearly not when you look at argentina w argentina when you look at Pension Funds and those. Obviously localized areas. When you start looking at emerging markets everybody is thinking about china, russia, brazil. It is more than an expert led story. I want to show you the process. There have been 10 reversals when you mentioned walking wounded, i thought you were talking u. S. Dollar traders. The argument still exists, that the fed will still be ahead of other central banks. Particularly the ecb on a dominant form. The bank of japan as well purely based on that story, there is an argument for the story there that is the ultimate safe haven. Thats what theyve been focused on you say the risk. Risk on, you buy the u. S. Dollar why do you think the weakness is coming risk on tends not to be the same as trade in the risk office u. S. Dollar is very overvalued on the ppb basis if you look at it versus sterling, despite a recent run you look at the run at 5 or 6 as well. It is Comfortable Holding the dollar as things improve, you start to see things flow out of the u. S. Back to asia thats what well likely see the next 6 to 12 months. Back to europe, we have the ecb resuming their bond buying what kind of impact do you expect to see . It is very difficult with yields so negative it cant be good news for bond prices we have seen equity prices jump around 8 . We have looked at what has happened since draghi has come into power purchasing into the system, which is incredible. Thats the size of the uk economy that has gone back into markets to help support things europe with the negative rates they are keeping rates flat. That is quite negative the out look for europe despite the change in terms of lagarde coming into power is still rocky in our point of view if we do see the Different National governments take up draghi and madam lagardes call for more miss call spending, do you think this will be the sentiment for equities i think two things need to happen in europe remember europe is still growing 1. 8, 1. 9 year on year the first thing, we need to see signs of historically ending and the ways us and china are spendi spending money the other is bank lending. It is hard to see brother improve in a meaningful way at the moment if banks are not lending. Thats why we are remaining caution. Coming back to what we have determined in the way of companies. Not as bad as investors feared a lot has come down to expectations what have you taken away from what we have heard from management, particularly the commentary on out look crucial as to what will happen in 2020, without a doubt revenue and earnings weve had a lot of buy backs announced. Cost cutting across the board is estimate weve touched on the revenues that weve touched on. Expectations around 6. 6 we know numbers have been brought down in terms of earnings announcements youve got an opportunity, so it seems you know the uk market and the fundamentals it is overdiscounted absolutely. Sentiment is really negative when you buy the ftse 100, most of your revenue exposer is actually u. S. Market as soon as you get clarity things will improve, there is a lot of support that sterling is a 10 value. That will help exports the fundamental story, domestic story. Foreign investment, weve seen as a positive catalyst if we have an election somewhere between 9th and 12th and the conservatives get a sufficiently large majority to push through their own brexit plan, would you see that as a positive yes, definitely it removes the uncertainty and encourages investment again especially in the uk youll likely see the sterling strengthen as it approaches the ppc levels the overall environment will be more positive. Will you take about the uncertainty that will be alleviated that is just the beginning of brexit this idea that brexit is done and dusted once we get the official decision of leaving is it likely companies will make the switch on and begin vesting again . Sentiment is much better than it was three months, six months, 12 months ago. Let me ask you about uk property we were chatting that a lot of investors had been chatting of april tide for housing in the uk there has been some murmuring that some would be tackled by Boris Johnson in an election 170,000 average price of uk property do you think this will be an election promise or policy could well be isnt a single client meeting i go into where uk isnt discussed. It is a hot topic. For us, it still feels and seems beaten up. Despite the fact that youve got international investors. You would think it would be natural. Absolutely. Theyve put a lot of Foreign Investors off. That balance has been really weak we havent seen the numbers come through in terms of transactions from our perspective, uk real estate much safer than an asset class such as gold until we see the flow back into the uk, we are unlikely to see the market do anything reasonable thank you yogi. Boris johnson takes another stand at a christmas election avi after lawmakers vote down his plan more when we return. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. My mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Bp shares leak lower pushing the oil giant to the first quarterly net loss the u. S. China trade war is weighing on the oil major. Demand has gone softer. We came into the year, demand was growing. It dipped in the middle of the year now it looks like maybe 900,000 barrels a day, maybe lower that is around the whole issue of u. S. china resources. Capping sales growth in the third quarter. Alphabet shares fall after googles Parent Company misses profit estimates as rising cost misses add performance uk Prime Minister loses attempt at snap third election while the uk agrees to a brexit delay. European markets retreating a bit after six days of gains. The stoxx 600 currently down about. 4 kicking off last night with alphabets earnings. We have bp and orange. Investors pausing for a breath after the move supported in large part by the trade optimism as well as earnings coming through in the u. S. As we await the fed decision and whether we get a hawkish cut from over in the u. S. Lets look at the different sectors. Red across the board no sector trading in the green at the top of the board, more defensive sectors. Food and bev flat lined. Health care, travel and lease your round out basic resources around 0. 9 . Oil and gas round out the worst performers no sector trading over 1 higher or lower brexit uncertainty as we await the next step as Boris Johnson vows to yet again get support for his call to the december election looking at the individual stocks, lets see what the losers and movers are this morning. One stock i would Pay Attention to, royal mail comes as jp morgan cut their recommendation. Despite a record close for the s p 500 yesterday. Boris johnson is set to make another attempt to hold an election on 12 of december a few short bills after he failed to gain the backing of twothirds of mps. Johnson has accepted a flexation from the eu but earned the block that further delay is not possible b to clarify here, we are not doing special programming at the end of the week. Interesting because this was his do or die promise. We saw 100 Million Pounds and much spent on advertising and a lot of look at the currency being minted a lot lost in confidence on this issue. In terms of what happened next, we had attempted to get insight on the federal election. Today, hes pushing an idea that has been proposed already. It will require the simple majority that will be required to happen if they can find compromise on the day of election the government would like december it reduces the time for parliament to push the brexit deal through the democrats and the other markets are entirely opposed anyone listening to this know that brexit is a dominating factor what is the chance domestic policies have some sway. Thats a really good question a lot of criticism of holding an election ahead of the second referendum say that all the big issues would be secondary. People would be focused about how they can stop brexit or make it happen. One of the organizations pushing to prevent, already talking about huge amounts of data mining so that people can vote strategically. When you Start Talking about investment, policing, Health Care People will pay as much attention to that. Fourday working weeks in the recent conference. Just the effort of trying to get to that single issue this is the challenge to these parties at a time where the support base is very much in target you have people interested in the labor policy really difficult to figure out how this shakes out in a country where you have positive look as well you explained the parties what about labor jere Jeremy Corbyn has sat on the fence so far labor have said they dont like the possibility that no deal is still on the table it is becoming some what of an argument theyve said so long as last night, indicating he would support an election. He has concern of where students are. It is getting close to end of the term for young people. We have a shot of downing street this is a live shot of cabinet members turning up this morning. Cold. Do you recognize him . And the man in the blue, who is that . A fairly fit group. Two out of three wearing their running gear, it seems Cabinet Meeting to try to figure out the conservative tactics. As parliament opens around midday theyll have about six hours and maybe later. We could see another one of these late night decisions that are pivotal for the politics im sure youll be staying up to cover ra. European leaders have bid farewell to mario draghi he has officially handed over a symbol of office what im reading is that is a replica. It feels a little bit like last orders for the policy. The worst sound you could hear into a pub when you are really hitting stride. Thats an insight into your life, karen. We push on. Former imf manager Christine Lagarde officially takes over. Saying draghis legacy went beyond policy. Translator what you are passing on to us, dear mario, is the torch of saving the euro from now on, this way that you traced, the humanism of eight years was seen through concrete actions through us i know that president designate lagarde will take over she knows the place and importance of this legacy and also the importance she attaches to independence and responsibility linked to this. I know that she will make sure she can also leave her mark in this institution incoming president lagarde reiterated she would commit to the policy the europe does not belong to you or the ecb however well it serves it. It belong to them, to the peopl of europe. We are stewards we are just passing through. Getting to annette discussing whether it is the last round of negative rates and kwa quantitative easing. The main impact is to get close to its affect. To put the foot of the peddle here would not be a wise decision having said that, what Christine Lagarde is going to do is a review of the Monetary Policy tools and mandate of the ecb there will be working groups inside assessing how effective the tools are and whether it is necessary to keep them es spshl wi especially when we talk about the increase in rates. I guess we have to wait and see what the ecb working groups are coming up with which tools are good and which are not i think she has a task to reunite the governing council. We all know the september decision was highly critically received by many states like germany and Northern Hemisphere doesnt like the idea of reinstati reinstating quantity ative easing there is dissent when it comes to that decision she has to reunite and form a team which is working and perhaps appease those critics as well in the governing council. I caught up with one who was once upon a time also a member of the governing council when at the time, when mario draghi uttered the famous words, whatever it takes. I asked him what he thinks would shape in and Christine Lagarde would inherit when it comes to the ecb. Take a listen. She is probably the best choice she is outstanding in Team Building and communication she will handle the situation. It appears from the outside that governi governing council is divided my expectations that she goes out and interacts with the german and dutch public. Why is it your view that the dutch public especially what happens inside it has a bit to do with what happens in the central bank. Citizens have different expectations from what they expect from their central bank if you look at what is happening in the netherlands, you could say they are overstepping their mandate. You are saying, they leave us alone. History has very much tapered what citizens expect that makes the ecb task from 19 Different Countries currently, so difficult. I think we are in for Interesting Times i think one thing is clear that she will not just sit on what she inherited but try to do something more active also quite soon that Strategic Review will start. This will see actionable conclusions and perhaps even some changes in the Monetary Policy tool back back to you. House democrats will hold a vote on how to make the trump impeachment proceedings public reporter a key witness in the imimpeach inquiry against President Trump, a no show on capitol hill this is deeply regrettable. Former National Security advisor was on the now famous phone call held with the uk leader when President Trump saysed the president of ukraine to investigate conspiracy alleging interference came from ukraine and not russia we had a very good conversation with the ukrainian president. He has gone to court to fight the deposition adam schiff says it is not helping the president s case. They believe his testimony would be incriminating of the president. It is plain and powerful evidence of obstruction of congress the president attacking chairman schiff. Hes a corrupt politician a leaker this president is innocent and has not done anything impeachable. On thursday, the house holes the first formal vote. Nancy pelosi says its purpose is to remove all doubt that the Trump Administration will continue to obstruct the house one more key witness, tim mo morrison plans to testify even if the white house tries to block him. Coming up, alphabet costs rise driving shares lower. More on that when we return. Odors are still trapped in your fabrics. Febreze fabric eliminates those odors. And try Febreze Unstopables with twice the freshscent power. Tackle tough odors with irresistible freshness. La la la la la saudi aramco could announce a launch to the ipo this weekend. The oil giant will make a statement on sunday detailing on the vesting market within weeks will come the he delays rorgt they will then begin trading on december 11 speaking at a conference inry a riad said the deal is attracting institutional cash we will have more and more Share Holders from institutions, retail anything more to add on that . Thank you very much shares of tiffany closed in session after a driller confirmed it has received a nonbinding all cash take over from lvmh. Alphabet shares fell as they report their highest ever reported costs after a hiring spree and investment in services elizabeth joins us with more details. It was a miss on the bottom line earnings per share came in 10. 12 compared to an estimate of 12. 42. So that was a big miss there moring into data centers, head count. Revenues were very strong. 40. 5 billion. That was driven by the advertising business that still makes up a majority of google sales. You can see here, 85 of revenues overall strong growth, the company pointed to particularly strong growth in youtube and search in other revenue segment, thats where investment is coming from. Hardware, phones the new pixal 4 phone is out we have the other bets small slice of revenues there. Still reporting a loss in that business ultimately is the expansion outside of the core business that is getting a lot of attention from analysts as it tries to understand googles business and some of these other ven tors like the hardware in the broader eco system i want to pick up on the point that you made to the fact that yes, the majority of googles revenue comes from advertising. They are making a huge push to other venters. Not a lot of new numbers. We have learned a lot of opt in this case. All we know from a numbers perspective is what they disclose which is that there is a 8 billion run rate. That is significant still behind the key competitors. Amazon and microsoft we know they want to gain traction because the cloud is a high business. There is sti an investment. Should we talk about fitbit a lot of rumors that google is going after fitbit investors question how much more mileage that would be but it would put google in direct competition with apple an interesting story. Weve heard that fitbit is a prime target a lot of loyal users use it. Licensing its Wearable Technology in addition to expanding its own portfolio. We heard the ceo of google emphasize how they want to be involved in the user from day tonight. It could be in a wearable, in your nest or Google Assistant or your driverless car. We talk about how 5g will affect this, every part of that will be controlled by google and the battle for your home and that eco system there. If we break out and look at youtube, how is that comparing we dont get those numbers. We know ad sales are strong. No clear numbers behind that which is a dig frustration you see the analysts saying give us some predictability. Right we get it from other companies we know other companies are vesting heavily in streaming we heard that is happening from google, we just dont know exactly how much and what the path will be that wraps up the program thank you for tuning in this morning. Worldwide exchange is coming up after this. It is 5 00 a. M. And here are your top five at 5 00. The trade war olive branch maybe, the white house considering another show of faith. Trade talks continue one year since the first fatal 737 max crash. Boeing will finally face lawmakers today. Beyond meat getting burned we speak with an i