Final day of campaigning ahead of tomorrows election basic resources outperform stocks amid information the u. S. Could push back tariffs on chinese goods. Credit suisse citing joongoi pressure and trade tensions. Good morning and welcome to street signs. We have a very busy show for you. The top story, the Worlds Largest ipo has made its debut saudi aramco shares have made its way 10 higher on the exchange after listing for 32 per share giving the company a market value of around 1. 88 trillion, we can round up to 1. 9 trillion, not quite 2 trillion lets go to hadley it has finally happened. The ipo has occurred the stock is trading and yet still shy of that 2 trillion number 1. 8 not that bad especially given the negative press weve heard. Rounds and rounds of pretty negative press it is pretty fantastic for me to see this not just having covered the kingdom for 10 years you about from the initial announcement in 2016 when the saudi prince made this part of the situation for saudi vision 2030. Talking about how quickly we might see this hit 2 trillion given the fact that we have seen it trade up already this morning. A lot of questions about how much the government and investors would be willing to pump up this price well have to continue to watch that to give you a sense of the scope and size and the Retail Investment about 13 of the population bought into this that does speak into the confidence the saudis have in the crowned prince and the company itself 13. 3 of investment coming from saudi government institutions. 22 coming from nonsaudi foreign investors, final value coming in over 105 billion the base dividend is 75 billion for the year frankly, this is something closely tied we think to the yield and something investors are going to be watching closely as how they decide to allocate that investment. This does have to stack up against other International Oil companies in terms of what the yield will be and what those dividends will look like especially against the back drop of these oil prices weve seen earlier, we saw folks coming out to speak about this. The speaker of aramco was very happy saying they seem to have finally gotten to a new starting point. The ceo and chairman of aramco he was made the ceo in the days leading up and what was the worst terror attacks and remember we have seen how much damage was inflicted on the company. They were able to get back on line and didnt miss shipments Company Opinion that now was the right time to bring this ipo to market they seem to have done it. Impressive turn around when you put it in contact of those attacks. Thank you for all of your coverage on this very important day for aramco the head of news for s p global. I want to ask you about the geographic break down. Looking at the numbers, if you strip out the regional players, what is left is only about 5 . There wasnt a big take up outside the region, outside saudi arabia why was it so low . I think they had a big problem selling this overseas. Some of the Big Fund Managers here in london were skeptical. One on price the price wasnt right two, on the esg. You have to take into account this esg issue if you quantify the oil output, which is aramco, if you quantify that in carbon, it is about 1. 6 billion tons of co 2 a year. That is about a third of europes entire output that is the whole european block. It is vast it is bigger than all the major five iocs it will now compete with in terms of its carbon foot print. Oil managers look at that. When you sit with bp and shell and exon, they really stress how diversified their investments are. Moving away from oil and having alternative Revenue Streams which you can give to the new economy that will come from Climate Change and Energy Commission on those two points big numbers you throw out there. Those two things dont necessarily change when we look at trading and the future of aramco do you expect more when it comes to market and when it comes to boosting governance. Those two factors arent going to change . Retail investors buy high i think the fact that the stock has popped so much today nearly 2 trillion valuation if you are an International Fund manager, you are thinking, lets wait for some of the air to come out of this and watch saudi arabia do they really want to invest as an International Fund manager in hong kong and new york and london being framed is a proxy. Essentially you are funding the 2030 vision plan they are not interested in that. They are interested in returns do you expect that the stock is going to trade as a proxy for the oil price. How correlated is that going to be even though there are plans to invest more downstream and become more diversified in the future there are plenty of other competitors already. There was a saudi budget released on page 29. I covered 15usaudi arabia for a long time. Going out to 2022. Net revenue falls out to 2022. Youll be in a situation where youve had income for the government the majority of it is oil will have fallen into 2022. We are in a miss call Government Debt is going the way by way of 30 gdp. From 2021 onwards. You get a situation where actually debt outstrips income theyll have higher net debt rather than income they are training reserves if you really want a forecast of what aramco earnings are going to look like, look at this budget there thank you for weighing in on this historic day. I think that is pretty undisputed pushing on to the uk the british pound has weakened against the dollar after raising the likelihood of a Hung Parliament the conservative predicts majority has been cut down closing the gap on Boris Johnsons party. Party leaders made their pitches to voters. I think it is time for the whole country, symbolically, to get in the cab of the jcb and remove the current blockage that we have in our parliamentary system we put forward a manifesto for this country it is a full program it will end injustice and poverty and invest for the future we are are determined to win this election. What do we get from this Prime Minister it is absolutely clear we get lie after lie after lie the Prime Minister who said he would guarantee the rights of those three million nationals from other eu countries. He said. He promise he would guarantee their rights how long, how long did it take before he was stocking hostility towards those very people in our country . Lets take a look at sterling which is trading a little on the back foot down 10 basis points versus the dollar at 1. 3143. Im pleased to bring in our next guest, former chief strategist to former Prime Minister tony blair. Thank you for coming into our studio lets pick up on the poll numbers raising the prospect of a Hung Parliament. The majority now expected at 28 seats. What do you pin that down to i wouldnt put too much on any poll right now a lot of people have already voted through postal voting. I think it is possible my own view is that understates where the race is right now. I do think one thing that is happening. Tactical voting where we have a very different electoral system, he can get away with winning and with little more than a third of the vote what is happening is that people realize that the chance of labor getting the majority is zero johnson having a bit of power or a lot of power i think the country are getting sickened at the thought of a lot of power that means the people like me who are historically labor might look to vote for a livdem candidate. This tactical voting actually cost you your election if you look at whats happened to that particular party they solidly declined in the polls. Latest projections are showing at most theyll probably pick up a couple of seats. What do you put that up to partly back to the point of our electoral system historically, we are a two party system it looks like that can break down people like me, it is possible in the uk elections where you are not using the government and it is possible for people to express their opinions on the parties on that approach i think actually having a policy saying they will revoke article 15 i think that was a mistake the leader of the liberal democrats presenting herself as standing to be the Prime Minister that was a mistake meanwhile, i think the focus in the campaign has gone very much to the Prime Minister. The truth is, i think the country wants neither. We are in the least worse option option election. We may end up with the country saying we dont want either. You are the third person we have in a row moving away from the choice of brexit to a choice of person. The voters are not really convinced by either side in the situation, as it stands if we do end up with the tory majority, what does that tell you about the mandate on brexit. He will have a majority to deliver the Brexit Agreement he has secured. The problems begin again look, he won the referendum by lying. Get brexit done is another form of lying well be living with this for a very long time as a reality of that becomes apparent, youll see a lot of anger and disappointment it has been one of the joyless elections i can remember anywhere in the world. He bounced out his slogan. Get labor done get labor done putting a tax on a few people, the world can be rescued there is no big argument about the state of the country and our people ive been going out and campaigning in different parts of the country ive never met an election and atmosphere that is so down about the country. Whoever wins in those circumstances is a very big challenge. Surely this scenario you are painting based on your experience and going out campaigning and the commentary weve had has been an election of the best possible choices does this mean we are in for a political realignment. If this isnt the cause or the catalyst to see that, what is going to be . The thing we are seeing all the time, tories are moved to one extreme. There for why is the Center Ground not being filled by something. I dont have the answer to that. I think it is partly this point about our electoral system the only way that can change if i have had pound, we have a chance to change the electoral system we went for another referendum. This mess is actually created by brexit i think until the country faces that you cant really turn back the clock. One question for you, if labor doesnt win, what happens to Jeremy Corbyn . Does he stay on . Well look, if you look at the rating he has now. It is hard to see how he thinks he merits that we have elections tomorrow, well see what happens i expect there is no result i see liking now that fills with great joy. I really hope that country given that it doesnt want either of them, gives power to either of them and it is a Hung Parliament and it goes back to the people where it should be given that the uk is not going to be part of the eu anymore, we should say it in english. The former chief strategist of former Prime Minister tony blair. Coming up, looking at Christine Lagarde in a few moments ake ide. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Looking to simplifye your skin care routine without sacrificing results . Try olay total effects. One dose provides more vitamin b3 than 50 cups of kale and improves 7 key areas of visibly healthy skin. Try olay total effects. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. A very warm welcome back to street signs. A bit of lack luster morning coming together. Early on, we saw the dax and ftse 100 outperforming we see the dax flat lining the cac and ftse mib slightly underperforming. Investors awaiting big developments later today with the Federal Reserve meeting where investors expect the fed to keep rates but will look to Jerome Powell and you have the uk voting tomorrow a pull back in the pound a image or of the conservatives has slipped from 28. It was a lot greater than that two weeks ago. Looking at the sectors basic resources outperforming up about a third of a percent auto up about half a percent real estate, media and Household Goods underperforming. No major moves as investors seem to be exhibiting cautiousness and the tariff deadline coming up we could see a delay, nevertheless those investors waiting for the concrete news. All eyes will be on Christine Lagarde tomorrow as she chairs her first meeting as ecb press she is not expected to announce any policy changes or to move rates toward record lows looking for signs of unity and whether lagarde will continue calls for the government to boost spending high ahead of expectations tomorrow. He h ed morris, it is great to have you with us. Lets talk about madam lagardes first meeting. Trying to figure out what style shell have compared to her predecessor. In this Strategic Review it seems at the top, it needs to be the communication coming out of the ecb ever since september it has been mayhem good morning, joumanna. Thank you for having me. Tomorrow is a big day, a pivotal day for Christine Lagarde. It is a first big test we all know you only have one opportunity to make a good First Impression i expect a record turn out for investors watching a lot has been said. I agree with that. Her style of communication will be different from draghis draghi has been very, very reliable there was not a slip of the tongue in eight years i remember so the bar is very high. Shell have to introduce her own style. It will take investors and commentators some time to get used to that and interpret what shes trying to say. There are two learning processes here one for Christine Lagarde to express the general public and much more scrutiny and then there is a learning process from the rest of us for trying to read her weve been pretty profishent in the end but this is a new start for all of us. What do you think she does with all of the disgruntaled members. I referred to that, the members that have spoken out in protest that have spoken out many people not happy. Germany, austria to name a few what will she do to try to get them on board, if at all right now, there is a truce, i would say. It has gotten very quiet the Strategic Review you refer to early on will be key. This is where the Big Decisions will be taken. The last review happened in 2003 this is going to be very important. All the members of the governing council will try to make their voice heard. What should be done is in order to prevent this ambush to be seen and this openly debated discord in the counsel is to make the voting more transparent. First of all, have a formal vote and publish the vote you dont want the votes to be associated with particular nations. This has happened. Everyone knows what the view is. In a way, the association coming from is already there. Give them a platform to voice their opinions in an orderly way. That will help to gauge what the future projectry policy would be i would hope at the end of this process in terms of review and communication would be more transparent and open about what the Government Council has debated and what they have voted and decided on it. Very opaque and the ecb is unique in that all of them publish the votes and i think the ecb should fall into line with this best practice outside the realm of the policy is a green policy and becoming a hotter and hotter topic when it comes to the European Central bank. Do you think there is any conflict of interest focusing on that primary mandate of price stability . No. I dont think there is a conflict the mandate is clear primary mandate is price stability. Thats in the treaty secondary is to support the policies as long as it doesnt interfere. The European CommissionFlagship Initiative is the Green New Deal the president Just Announced last week. This is totally consistent with the mandate. The question is how much the ecb can really do. In some quarters, there is a saturated expectation of the major influence. Cannot it cant help. Theregulation like pricing of different type of energy this is all a measure of government this is not the responsibility of the ecb they can help, they should help and probably would help. It can only be a marginal player in all of this chief economic advisor. Well take a short break now coming up on the show. Uk Party Leaders get set for a dash the race to downing street may be tighter than expected details next beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Welcome back to street signs. Im Julianna Tatelbaum and im Joumanna Bercetche. These are your headlines the Worlds Largest ipo makes its debut as aramco goes up 10 giving them a 1. 9 trillion valuation. The pound weakens against the dollar after raising the prospect of a Hung Parliament as the uk prepares for a final day of frantic campaigning basic resources outperform the stocks amid reform that the u. S. Could push out fresh tariffs against chinese goods. Democrats put out two articles of impeachment making him the fourth president in history to face such charges saudi aramco shares have opened 10 higher in their debut. Speaking earlier, the ceo gave his reaction to the listing. This was agreed based on the full analysis. We are happy with the results today the market response to our results we continue to be the leader globally when it comes to Energy Sector and at the same time, we are looking at sustained and growing dividends to our investors meanwhile, the pound has weakened against the dollar. The poll raised the likelihood of a Hung Parliament in the uk election the predicted image or has been cut down to 28 saets from 68 two weeks ago closing the gap on Boris Johnsons party. Lets get to willem in Central London with more reporter you mentioned the poll that has come out we are joined by one of our leading poll experts professor of politics at University Walk us through what you learned from last night at yougov. We saw the image or shrink there is a margin for error. What does that mean . First they are saying we think the conservative lead is nine points. That is slightly less than all polls but bang in line with yougovs last poll given those numbers, we expect the tories to have around 309 seats, which is what youd expect the poll is confirming what wed long expected which is that the conservative lead has narrowed the lead in the polls a fortnite ago was some what bigger than it was at the beginning of the campaign actually at 10 points, the actual lead now is what it was at the beginning of the campaign this emphasizes two things weve long known from all of the polling. The first is we have to remember what the conservatives have to do in this election. If they are going to get the withdrawal treaty that will secure the uks exit from the union by the 31st of january, they have to get the overall majority it isnt enough to get more seats. They have to get past the 326 mark no other party is willing to withdraw not even the other party that was supporting to get to the three two six, the tories have to do very well. We have been expecting a six or sevenpoint lead once you get a poll that says nine points, you get quite close. You pointed out, those that have analyzed this have pointed out, all polls are subject to a margin of error. It is only a sample of the population you cant rule out the possibility that maybe well end up with fewer than 326 tory seats. That is still by far the less likely of the two. From what youve seen of the numbers over the last two weeks and these ones that have honed in on constituency details is there a powerful force of would be labor in favor of brexit or typical conservatives interested in maintaining the union there has been a way in which the level of support of conservatives that remains voters to essentially remain the same it is below a fifth of the vote. It has not gone up or down all of the progress has been among the voters at the expense of the brexit party. Equally, labor progress it is just equally made progress the progress made has been primarily among remained voters. The vote among lead voters has been today it may have gone up against lead voters a bit most of the progress has been on the remaining side at the end of the day, what seems to be going on is that it becomes even more clearly in the eyes of the voters in which you need to leave and labor will become more clearly the party to vote for the remain vote is still much more divided between labor and democrats than the lead vote is on the other side. The foundation of Boris Johnsons lead is that he rest on that fact 70 voters on the conservative party rather than less than half for t for the other party. If you are a voter, if you you are a currency watcher watching the vote tomorrow, what should you be looking out for to understand it looks as though the crucial battleground is marginal labor seats. Particularly marginal labor seats which voted to leave in 2016 around 4 5s of the marginal labor seats are votes that voted to leave in 2016 given that labor are clearly weakened than they were in 2016. This is the source of labor concern and conservative hopes conservatives are hoping in these constituencies, many have swung from 2016 will swing even further and those think that voting for Boris Johnson is the only way to get it done. Rexland, ashfield, these are all traditional labor seats in wales, north of england where we think perhaps the conservatives might be able to win if Boris Johnson is going to get a relatively secure majority, hell have to win significant number of these seats. One of the things to worry about in the poll is while he is still picking some of them up according to yougeoov, some mayb eluding his grasp. Thank you saying some of those key marginal seats that have been labor supporting are not quite as easy in the grasp for the conservatives as they had hoped. Thank you for that interview. Indeed, as you mentioned, all eyes will be on the latest polls. Tomorrow is the big day. General election is tomorrow ftse 100 about five points lower. If you look at the individual composition, property developers, domestic banks are trading close to the bottom. We see that german index has switched broadly speaking, that move is pretty negative. The cac down about a quarter a percentage point wall street journal article pointing to a possibility of extension of the december 15 tariff date giving a boost to he can withities vernight we are not really seeing it in europe keep an eye out as well on the Central Bank Meetings. The fed not expected to do anything on the monetary front investors will be looking for language and of course the Central Bank Meeting tomorrow. Trading lightly on the back foot to the tune of 1. 1080. Today, we are dropping a little bit. That is on back of some strength we are seeing in the green back. You can see all eyes on the pound this morning we got very close to that 1. 32 level before pairing back before the yougov number came out pointing to the majority conservative has over labor. With 28 seats over 60 plus a couple of weeks ago. That is downward for that lead that the conservative party has over labor well have to see the results on friday morning that is the picture for Foreign Exchange lets take a quick look at futures as well. After citing negative session yesterday, the three futures opening slightly moderate. The dow slightly above we have cpi numbers to look at later as well. A couple of stories for you reporting a 14 rise the spanish retailer credited results to its ability to adapt quickly to Design Trends it expects 4 to 6 growth. Credit suisse has peared back profit targets saying return on tangible equity will exceed 8 in 2019 but be below the previous goal, which is the same for 2020 they still plan to dish out more than half to Share Holders with a bigger dividend and Share Buy Back bit of a reaction to the stock down 0. 4 percentage point. Also coming up, the battle lines with drown as democrats move one step close tor to impeaching the president the reaction after the break thats why more dishwasher brands recommend cascade platinum. Its speciallydesigned with the soaking, scrubbing and rinsing built right in. Cascade platinums unique actionpacs dissolve quickly. To remove stuckon food. For sparklingclean dishes, the first time. Choose the detergent that lets your dishwasher do the dishes cascade platinum. The number one recommended brand in north america. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back, the World Trade Organization has lost two of the last three judges on the body after the u. S. Blocked a series of appointments the lozs mean the de facto Supreme Court of global trade is now unable to issue rulings on key disputes theyve delivered rulings on over 120 cases seven judges are supposed to sit on the panel but that number has dwindled since american protest over wto practices the director general flagged the consequences of parl liesing the panel. If we do have the law of the judge, the reality is that the first victim would be predictability if you dont have predictability, you dont get investments. You dont get Economic Growth or jobs it is a losing proposition for everybody out there. He gave his outlook for trade tensions between the u. S. And china. This is a conversation that is inescapable as we move ahead. As we negotiate new rules, new disciplines, new agreements, there will be more scrutiny about how much does each country contribute it will be difficult to get countries like china, brazil, korea and other significantly larger developing countries in the same basket as very small economies. And then, are they developed maybe they are advanced in some areas and not so in other areas. I think what we are trying to get is to see whether countries can contribute more where they can in a differentiated way instead of having a basket where you put in that basket all types of countries that would be very different in nature and size and in level of development. So i think it is inevitable we are going to have this conversation but it is early to tell how we are going to figure this out for the future. The fed is expected to keep rates on hold for todays policy meeting. The u. S. Economy was void. Trade uncertainties remain the deadlines for potential new tariffs on chinese goods the head of research from Standard Charter thanks for joining us today ahead of the fed meeting what do you think is going to be powells key message for the Community Today . Look, i think hes going to argue that the u. S. Economy is in a good position with decent growth and low inflation i dont think hell try to break new ground on policy and reinforce the steady as she goes type message i think the market isnt looking to much fire workers compensationing out in this either the big milestone to watch is the december 15 tariff deadline and Jerome Powell watching as well how much do you think that will factor into President Trumps strategy when it comes to the tariff deadline given that weve seen a big reaction when it comes to trade and the fed meetings in the past i think the president will probably pressure the fed to lower rates and do whatever it can to get the dollar down irrespective to what they have regarding trade and what they do it is the mindset that they have that they would like to see more stimulus in the economy. That said, given that inflation is so low. Well below targets and regulations going nowhere. Wages going moderate the constraints you would see are much less than they normally are. I want to rewind the clock to where we were a year ago, december 2018, the fed hiked rates and another two then for 2019 after that, they pivoted sharply, turned extremely dovish and now cut rates three times. So the messaging was completely wrong 12 months ago. Looking at where the rates are today, do you think the Monetary Policy right now being administered by the fed is appropriate for the economy . I think you can say that president helped stomp them out of a bad, long inflation period a year ago through his comments. Right now, look, there is no sign there is really no distortions in the economy, you cant point to any segment that is booming segments are strong but not out of line the way they were in 2007, 1999 or 2000 what theyve done is realize their estimates are so off base that they have to be guided by what the economy is telling them right now, the economy isnt telling them inflation is visible. You say inflation isnt visible, by the way, the wage growth is tracking 3 . You could argue that todays meeting is less important than the message they provide for 2020 i think that is correct but i think theyll be careful not to give more messaging than they have information to give at this stage of the cycle, close to full employment but maybe not there. They are going to say, look, nothing is moving very fast. Gdp is debating one to five. That is a very narrow range. We cant afford to see how things play out. Well be careful to give the message but rather the forecast theyll give next year that will lead to a policy change. What does this mean for a give back as we lead to 2020 we are pretty dollar negative we think europe economic process are stronger i was there a couple of weeks ago. There is more optimism in the air. The fed expansion in the balance sheet. There is a dollar liquidity that the banks need they seem to be shifting on the reliance of the rates that will pass through the sellby date and much more welcoming to the fiscal stimulus. The money manager and private sector people are on board to that shift in the Monetary Policy positioning is short euro, it is not long euro, so that should help as well well leave it there. Interesting ahead of the ecb meeting. Global leader and macrostrategy at Standard Charters for the fourth time in u. S. History, the president is facing impeachment charges. The house has formally announced articles of impeachment. Mr. Trump is not backing down calling the process political madness. Tracie potts joins us. Can you walk us through the time line how likely is it we see the house formally impeach the president by year end . Highly likely it will happen before years end. In fact, it is likely it will happen next week before the holiday break. The process here is debate in the committee tonight, a Committee Vote in the morning and full and final vote on impeachment expected and likely next week. The house of representatives is controlled by democrats. They have been orchestrating and pushing for this effort to impeach. What is not likely to happen is President Trump eventually being found guilty and removed from office because our constitution says that process has to happen in the senate, which is controlled by his party, republicans. They are already saying they do not expect 20 republicans to Cross Party Lines and vote against this president based on the evidence theyve seen so far. That evidence of two articles of impeachment or charges, obstruction of congress for not allowing white house officials to testify and abuse of power for the socalled quid pro quo forcing the biden invest gags in ukraine. Saying they think this is impeachment light because they are withholding possible charges of bribery and the russian invest gags. Thank you for bringing clarity. Lets look at u. S. Futures before we hand you over to our colleagues state side. We are headed for a muted day of trade. Looking at singledigit moves at the hope that is it for us today im Joumanna Bercetche and im Julianna Tatelbaum. Worldwide exchange is up next. Most people think of verizon as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Introducing a razor that works differently. The Gillette Skinguard has a guard between the blades that helps protect skin. The Gillette Skinguard. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. It is 5 00 a. M. At cnbc global headquarters. Here is your five at 5 00. The pressure is on with jay powell in the limelight. 1. 8 trillion and beyond the Worlds Largest ipo surging past expectations on the first day of trading we have a live report from saudi arabia coming up delay to a deal investors hopeful. The u. S. Will kick the canon the tariff hike in december on