Trump says he and janet yellen are doing well together. This is bloomberg. Im mark barton in london. Stocks marginally higher today, up by a 20th 1 . Overis up a smidgen dollar. Long andng to talk hard about barclays. Look at barclays shares. Down 5. 7 . Deutsche bank down 2 . Getting some details from the norwegian central bank. Rates will be kept unchanged today. Riskslance of economic unchanged since september. Unchanged at 0. 5 . Heres the news with sebastian. Donald trump says hes thinking about getting janet yellen another term as fed chair. Terrific and they are doing very well together. Familiar to people the matter, gary cohn is not open to the fed. Mindel holly faye was speaking asked lucidly to bloomberg. I have a meeting with two banks. They will come and apply for licenses to operate in saudi arabia. Were open. The u. S. House has in responseanctions to irans support for hezbollah. The two bills market first action against iran since President Trump refused to continue the compliance over the nuclear pact. China has begun marketing its First Sovereign dollar bond. Since 2004. According to people familiar, the offer is 1 billion. The same amount of 10 year debt we offered at a premium of 4250 basis points. To European Union has agreed start internal propositions preparations in case the brexit of progress. They are worried the end of the year. Preparations will begin at the same time in case of a more positive outcome. Critical 48 for a hours. Kellys efforts catalonias to push for independence are coming. In madrid, this medicine and started today vote on the implementation of article 155. The turkish there only losses against the u. S. Dollar. The German Government so they will restrict financing to the country. Actively working to cut funding to turkey. Global news 24 hours a day. Powered by more than 2700 journalists and analysts in over 120 countries. Im Sebastian Salek and this is bloomberg. Thanks a lot. The ecb meets today to discuss how and when to bring its Bond Buying Program to it. Its one of the most hotly debated decisions of mario draghi said here. They have a ninemonth extension of qe to january. There are a range of potential outcomes. Joining us now, the managing director of pimco. Are you in line with the i would joinrew that consensus group. The view is so widely adopted. There are 50 dozen people out there who feel exactly the same. A surprise to the more dovish on the raucous side . Hawkish side . Andrew it begs the question of how these numbers it up to the press. Put in numberyou out there which is a low hurdle and you can surprise and exceeded exceed it. You look at the economic rationale of it, this a clear case for winding it down. Any number that is approximately around to 50 billion 250 billion, around eight to nine months. When is the next rate happening . The ambiguity because the well past parse use of words. Detail we saw bit more around their constructive ambiguity on for guidance. Very very important. That term, anchoring inflation expectations, i think we will see it today. Is it a date not going to come . It makes sense for the ecb to maintain as much optionality flexibility as possible. That would mean not specifying an end dates today. Fully in line with the consensus on the 30 billion. Now, youy 13 from 6230 can go from 30 20 in one go. 30, you to 0 in one go. 0 to can easily be normalized also faster . Theew if you look at what market is pricing, we can only look at rates. Thats not much. For japan, that would be fantastic. For developed nations, thats not much. There is a case for a faster exit. It has to do with the fact that growth is very strong. There are changes in the phillips curve. The relationship between unemployment and inflation. Theres a case to rebuild your policy flexibility while Global Growth is strong and seek synchronized. There are a worry on this kind of management to the executive order to put the ecb on a clear exit path before draghi retires in 2019. Mark how to invest . Andrew thats the tricky bit. Mark be the tricky one to the end. We are anticipating a yields will gradually move world but we are in a with the new normal. Growth is laura, inflation is lower, policy rates will be lower. Theres not much of a term of upside with yields. Evaluation across the board is very strict. We air all the more conservative side, looking for areas where there is more quality insecurities. Mortgage markets for example. Some parts of the emerging markets. This is more of a defensive construction of portfolios. Thats the angle we are coming from. Will stay with us. We will bring you that ecb decision today. Bloomberg it here on at 12 45 u. K. Time. Do not miss this mans news conference. Valenti coming up today including President Trump signaling janet yellen is still in the running. Gary cohen is set to be ruled out. We will discuss the finalists. We will speak to the ceo of Deutsche Bank after the lender posted results. This is bloomberg. Mark you are watching bloomberg surveillance. Heres Sebastian Salek. Sebastian Deutsche Bank has reported a bigger than expected drop in revenues. It keeps living bank ground to rivals. The 24 drop expected by analysts exceeded. Berkeley ceo has said he won a panic after one bad trading quarter but now he has had three. Has dropped in fixed income revenue. It performed better than Deutsche Bank. We want to see a better performance there. It really hasnt impacted our market share. Our market share has held in their given what the other banks have done. All of us expect a return to more normalized levels at a recovery of market revenues in Investment Banking space. Profit has fallen. Net income starts at 1. 4 6 billion euros. That compares with a 1. 8 4 billion euros of five analysts experts about my bloomberg. President donald trump is thinking about giving janet yellen another term as Federal Reserve chair as he bounces the desire to put his stamp on the central bank with the risk of changing leadership amid a stock market rally. People, trumphree to appoint gary cohn to the job. Should look at the odds, andrew . These are the betting odds. Jerome powell 60 . Yellen 19 . Taylor similar. Kevin walsh, bottom of the pile. Is that in line with pimcos thinking . Think the powell thing is a little bit of an outlier. I think was coming up here is the trump is maybe looking at the substance, at what has been done. The existing management and regime is doing a pretty good job. Thats maybe what were saying. Mark it would be a good thing if yellen is reappointed . Andrew that is what were seeing in these developments. Mark give me the impact on bond markets. What does it mean for yields . As you give your answer we will look at the 10 year and some key levels in the last couple of days. Quite the walsh one is in the more be i. S. School of thought. Weighed lobally way to lose and accommodative. There is a potential large regime change. The taylor one is a bit overemphasized. Than much more pragmatic what is rule suggests. Hes alluded to that in recent statements. Course, is more continuity and more to say. How is the one that is a little order to place. Everyone is after the 2. 4 question. If it significant . Or is it another psychological level . Do we make too much of this . Foreign technical analysis, these are very important things but in the grand scheme of things, think about this. Of you the trillions theidity of liquidity fed is put into the system. Look for the Balance Sheet will be in two or three years time and then think about the 2. 4 . There is some argue is that suggesting could be a lot higher. Refinancing that that that the fed will no longer buy. That is contingent on a continuation of growth. Its july 2019. This will be the longest expansion since 1945, if we get that far. There are strong arguments on both sides. We can stay in his new normal range. What were hike this year . What might care for you . What camp are you in . We will forecast the dots for next year of the year after and maybe a little bit more on the optimistic, aggressive side. We are seeing that long adjustment coming down to a new normal, a neutral type of level. That is the mediumterm direction were heading it. Will stay with us. Barclays. Look at the shares. Down 7 . They are falling the most since brexit. Biggest decline since january the 27th last year. Next, brexit plan b. The eu prepares a backup plan. We are going to discuss the state of negotiations next. This is bloomberg. Youre watching bloomberg surveillance. Nejra cehic is watching the market. Nejra not a lot of action. We are ready much changed that unchanged on europes benchmark. You have text that underperforming. A lot of that is down to nokia dragging those down. Interesting to keep an eye out financials as well. They are pretty much unchanged but a number of the bank are falling of the session. You have materials outperforming their. Interesting that those commodity producers are outperforming because we are not being illustrated Industrial Metals today or in oil. If we take a look at euroyen, eurodollar get a week high. Euroyen interesting because it is near an almost twoyear high. Over whether we see any retracement on this. We hasnt given nazi retracement levels on that. Fibonacci some retracement levels of that. We are pretty steady in this session. 2. 43 . The next resistance area for yields is 2. 48 . Stop the eu has agreed to start internal preparations on the possibility that the u. K. Will not meet a were agreement with the eu. They have started the prospect of not making enough progress to allow trade talks to begin at the end of the year. Andrew is still with us. From your german seats, how do you deal view brexit pro burress progress. Andrew from the continent, the progress is on the slow side. Its not such a big issue that it is. The 27 remaining in the eu is very adamant that based into those four principles. So long as the u. K. Signs off on this or principles signs off on those four principles, its very simple to solve. While we see right now in terms of this intend to the plan, its just there. Its a rational contingent the plan. Contingency plan. We are looking at a harder cut off. This is showing us the probability of a u. K. Rate hike. The. 5, we want to look at. The probability of a hike next thursday, 19 . 90 . Is it warranted . If you compare the u. K. To the u. S. , they look broadly similar in terms of their economics. Look at the policy rates. There is somewhat of a difference. That number is pretty warranted. Its ok. Mark you get bond market . Andrew similar thing. Its an extension of the front end. Euros are a lot lower versus treasuries. More Exchange Rate pastor into the inflation. I think, from our perspective, we would prefer exposure in the u. S. Than the u. K. Mark thanks for coming in. Managing director at pimco. Well be joined by Deutsche Bank chief executive to talk about the lenders future. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Watching are bloomberg surveillance. Heres Sebastian Salek. Of united president States Donald trump is thinking of giving janet yellen another term as fed chair. He thinks she is terrific and is doing very well. According to three people familiar with the matter, trump is not predicted to appoint gary cohn. Barclays ceo says he will not panic after one bad quarter, base at three. He trails most wall street route rivals but street perform better than Deutsche Bank. We want to see a better performance there. It hasnt impacted our market share. Our market share has held in their, given what the other banks have done. I think all of us expect a return to a more normalized level of volatility and recovery of market revenues. State is set for a warrant state is set for a crucial 48 hours with catalonia addressing independence. Madrid, the Spanish Senate begins a twoday vote on the thetation of article 155, cost is no tool that could oust the leader of catalonia from office. Global news 24 hours a day. Powered by more than 2700 journalists and analysts in over 120 countries. Im Sebastian Salek. This is bloomberg. Mark its been more than four months since guitarist saudiors, including arabia, cut ties with the allstate. Despite the conditions, donna bank is looking to expand its global reach as the country works to emerge from the shadow of the boycott. Would you say the worst is over when it comes to these tensions between qatar and its neighbors . Raghavan absolutely. You have seen the performance of the banks. Clearly, the banks have done extremely well. If you look at the combined banking system, stability is improved,idity has expansion is around 5 . Clearly the worst is over. We are incrementally adding and see opportunities globally, regionally, and coming to terms with the reality. Deposits haveent slowed. 2 . Andrew if you understand the dynamics of the market space, there were immediate reactions. But if you look at the trinity deposits in june, july, and september, its a decrease. Is instilling conference confidence. If you look at the central bank is proactively managed, liquidity for the moke local banks has improved. Banks are also stretching. Nternationally mark some breaking days. Saudi crown prince is backed extending the opec output cuts into 2018. Just crossing the bloomberg terminal. This is an interview weve done. Extendingcrown prince the opec output into 2018. Breaking news. Russia said a few weeks ago. Saudi arabia now accident. Seems the cuts will be extended. Just finetuning deciding. Raghavan thats the right move. You see the reaction of the oil price. Stimulate theto oil fiscal prudence for the economists. Theyre are taking the right kind of steps. They are coming together. The oil price will be stable and functional. Mark do we go to 60 for wti . Raghavan i will not be surprised at 60. To Interest Rate is likely go up. The dollar is weakening. Continue the to output cuts, it will drive to 60. Mark not been affected at all. Raghavan it will be enhanced. The scale of productivity. For the today. That will have relatives rodney purvis. Are doing well. Mark on the matter of the u. S. , do you keep and i under the next venture might be . Does it matter to you . Are you throwing her hat into the ring on who you think it should be . Raghavan i think janet yellen is doing a great job. She is in line with the global makeup. She recognizes there are still challenges to constructively engage in monetary policy. She is moderate in pursuit of practice. I think she will continue. Mark is a she will be made. Raghavan she should continue in my opinion. You said to me youre talking to four lenders the possibility of raising longterm funding. How are you progressing . Raghavan we are down to a few options and is going to terms. We want to borrow costeffectively. What will be the Lending Conditions . We want to make sure we have Cost Effective methods. Mark dollar bond sales . Other currencies . Private placement . Raghavan its private placement. Im sure will be able to start out. Mark times . Gimme times . It should be next three months time. You also said he want to sell some assets in the uae. Any progress . We are progressing. Were contemplating options. Have two branches, one in dubai and another in on without me. In abu dhabi. We can have a swap. Thats possibly an option. We are making sure the Financial Assets are being hatched and we can improve on for the liquidity. All sort of options are open. Mark finally, as you said, you want to expand the reach. I was i going . How is that going . Raghavan were scaling up our indian activity. We are going to have a new branch in chennai very soon. Synchronize growth in line with qatars economic momentum is early on. Mark great to see you. Raghavan pleasure. Mark its all happening today. The chief executive officer of the bank. Lets go back to the breaking news. Erik schatzker is in riyadh. The saudi prince back in the extension of the opaque opec into 2018. The ultimate prize is an interview with the grab prince. We had one in thats exactly what he said. He wants to see the production cuts that opec and nonopec producers agreed to extended beyond the march 2018 deadline. He believes the oil market has entered a new era and the control over output is the only way to support prices. This, as you know, is the first formal commitment by saudi arabia, the Worlds Largest oil producer, to maintaining the limits on production that have supported an increase in prices well into the 50s. I just looked at it is trending at 58. Invasive effectively certain that opec will extend these production cuts when it meets next month. While i say its almost certain . , who was then largest nonopec producer who is going to discuss, has led his support to an extension. Heres a direct quote from the conference. Everyone is benefiting. This is the first time we have opec and nonopec deals in stabilizing the market. These cuts started in january as a belated response to the collapse in order prices from 2014. Asked in the them again is a no choice option for saudi arabia. Why . Because the supply glut has proven very hard to defeat. Especially with the rebound in u. S. Shale are put. Cheryl output. Heres another quote. The markets has already swallowed the new supply. Its been swallowed. Now it is part of supply. Now we are going into a new era. He believes it is actually certain that saudi arabia, russia, and others have to extend these cuts. Back to you. Mark great job. We will speak you later. Saudi crown prince backing that extension of the opec production cuts beyond march 2018. Speaking in an interview with bloomberg news. Up next in frankfurt. You will hear from the Deutsche Bank ceo. This is bloomberg. Mark youre watching global news 24 hours a day. Powered