Betterthanexpected chinese data, giving a lift to the market. It may have gotten a little bit better. Opec up 1. 7 . Of november manufacturing also ,oming out, that tmi figure indicating a contraction because its below 50 but better than the 46. 6 that was our preliminary preview. Coming up its merger monday, all things deals with the cohead of global m a a jp morgan. Lets get straight to the bloomberg first word news. Signaling they will consider deeper cuts ahead of the latest opec plus summit. This is despite the rest of the coalition showing reluctance to refuse output reduce output even further. The meeting in vienna starts in december the fifth. The Junior Coalition partner in the German Government electing a new leadership, throwing the government into crisis. Social democrats are bringing in a team that vocally opposes the alliance with chancellor Angela Merkel. The new leadership signaling it wont bring an abrupt end to the coalition and its more likely to put forward a set of new demands. Hong kong retail sales plunging more than 24 is the latest sign the unrest is hitting the citys economy hard. This weekend saw a return of protesters. Police fired tear gas and later a group of protesters blocked roads and set fire to a subway station entrance. The European Union will challenge the u. S. And china on climate targets as the fight against Global Warming becomes a Major International issue and by the end of the century, the block is looking to target net zero emissions but how much investment is needed to achieve this goal. At least another 175 billion euros a year. Keeps pilings debt up after a decade of easy money, the world has a record 250 trillion of debt, thats almost three times the Global Economic output. About 32,500 for every man, woman, and child on earth did global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Francine thanks so much. Less than a month until the new decade, lets take it off with a look for m a. A search is but mergers and acquisitions on track to may be top last years total. Worth 2. 7als trillion putting us just a quarter of a trillion dollars away from last years total. My next guest leads the global team focusing on all aspects of m a advisory, the global cohead of m a at jp morgan. Good morning and thanks for giving us a bit of your time. Think im positively surprised its been as robust as its been, another year we will be challenging that 4 trillion mark we saw. Right now we are running about 5 below last year so really another very strong good year for m a. Francine is it different regions to 2018 and is it different sectors . What is defined the year is transforming north america. I have deals that have values greater than there has been 45 such deals this year, 35 of those have involved u. S. Corporations, the u. S. Has accounted for 60 of volumes in 2019, so thats been the feature of the market and i think thats also a wakeup call for the rest of the world and particularly for europe because of the strength continues where u. S. Companies do 50 or 100 billion deals and continue doubling in size, if it persists, at some point maybe japanese corporations will start losing their Competitive Edge so i do think looking forward, what i hope and expect is more activity from outside the u. S. Francine so if people by other companies for a number of reasons. They want critical mass, they want higher margins, they see the one jewel in the crown they dont have. Our people actually consolidating for the right reasons . Logical,arket is very it makes sense for Pharma Company to hedge their r d bets by acquiring companies that have late product r d. It makes sense for it to be consolidation. It makes sense for consolidation online brokers. It makes sense for payments to become global in scale. Logical has been very in terms of their decisionmaking for m a. Its also a discipline market because weve seen a lot of separation activity. Where Companies Want to focus where its so separating health care with donna her, novartis separating out and its also a discipline market. Francine is it because they are under pressure . Does the car industry need to consolidate because if you dont you go out of business . You have to evolve and keep moving forward, you cannot stay in this market, you cannot remain still. I dont think its defense. You just have to become more global, you have to find sources of growth and in many cases the economy is strong. But you have to support that with deliberate quality sources. Is it crossborder or themselves . A combination of both. Something for the rest of the companies out side of north america i think its a wakeup call. We talk about european banking consolidation. We talk of a number of European Companies that should be merged, boa would what needs to happen for chief executive to have the stomach . In my judgment has been a change in this Fourth Quarter because i think so much of m a is correlated to confidence to certainty and in the european arena theres been a lot of sources of uncertainty and i think its been easy for ceos to hold back and see what happens. This onslaught of activity in north america has enough to say we have to get on with it and , we have seeneals European Companies that i think the dam has broken and guess what, yes there is uncertainty but we have to get on with us. Francine i dont know if theres a direct correlation. If i was an executive and set i want to buy something, do i wait for all share prices to be this high or do i need the more depressed because i feel like im getting a bargain . Market everybodys share prices being supported. Theres so much liquidity supporting us, i think that strength in share prices providing a strong currency is also providing if you are concerned about asset valuations, it provides a great balance where im buying something, but im also benefiting from that same share price. Francine how are these deals in the u. S. Funded . For this reason, increasingly we are saying i think ceos are feeling good about their own currency and if they use that strong currency its a great equator, its a great balance against asset prices that might also be equally supported. Francine so the u. S. Doing good, what does europe get paid get . Asia as well . Hernan the easy rule of thumb was to say north american volumes directly double europe and then europe doubles asiapacific. China,cific excluding the asiapacific m a volumes are 80 of those of europe heard even without china its really getting on and we are seeing a big increase. I think the region that has been lagging and has to get moving his europe. Francine what needs to happen in europe for them to have more appetite . Ceos havejust think to come to grips and come to terms with this market uncertainty. I dont think it will go away. I think its becoming its coming from different fronts and i think you just have to see through that and focus on what your competitors are doing on the threat to your own competitiveness and get on with the program. Francine thank you so much. He is sticking around, from Jpmorgan Chase bank. In the meantime, russia and pipelinening a new gas and we are following everything alive. You can follow on the bloomberg terminal. Includinging up will have the we latest live from berlin. With both mainry Political Parties at the top end of londons property market. We speak to the chief executive of developer. This is bloomberg. Chinane russia and marking the opening of a new gas pipeline. The pageantry was really quite telling. We have president xi and , actuallyputin looking at the opening together. We have full live coverage from all angles on something which could be significant because is not only a gas line, we will keep an eye on that and bring you any breaking news. Lets get to the Bloomberg Business flash in new york city. Deutsche bank denied the u. S. Federal government is widening its investigation into the lender. The u. S. Is investigating the banks role in the dirty money scandal. I of investigations if deutsche helped move painted money into the u. S. Goldman sachs will avoid hard profitability targets at its investor day in january according to the financial times. The Investment Bank will instead focus its core wall street business, the centerpiece of the announcement, they say it will launch a new Merchant Bank with more than 130 billion of assets. A record u. S. Online sales reached on black friday, nearly 7. 5 billion in sales were made by a smart phone or computer. The second biggest Digital Sales day in american history. This is behind 2018s cyber monday. Sety could be even bigger to outshine that record by about 19 . Thats your Bloomberg Business flash. As 2020ow its approaches, lets continue the m a conversation. At 2020, whats the role of private equity . A lot of people saying they are just sitting on cash and there is more cash and opportunity, you will have billions of cash coming in. Equity we think private is one of the features of the market in 2020, they have now surpassed the one trillion mark in terms of dry powder. Every Company Seems youve raised a 10 billion fund. Blackstone announced a 26 billion fund and private equity activity accounts for about 25 or 30 of the market. We think going into next year is going to cross the 30 mark in the activity opportunities will importantly taking Public Companies private because i think if there is a slight adjustment to the market, that will bring prices under pressure and i think im importantly is whilst in the past there was a premium required to take a company private, there is a discount to that premium. Theres a lot of ceos who actually dont like the market scrutiny and are very openminded to take the company private. I think thats a combination of the dry powder and that will bring opportunities for private equity. Francine Big Companies a little bit like what we saw. Francine hernan the constraint is how much equity you put to work. I think we have seldom seen private equity deployed more than 1 billion for single transaction. There different reports of that being challenged. As you go larger and the scale youll need any number of these firms to Work Together and associate themselves. As the size gets larger and more challenging. Or 10 billion deal size, thats one where there is the possibility. Francine why so much money and private the equities . Does that skew up all the risks for how investors should be looking and if there is all this cash and private equity then it changes the m a. I think it brings different opportunities. My sense is that private equity used to be the only game in town in terms of Financial Investors and now you see sovereign wealth funds, theres many more sources of Financial Investors looking into dealmaking and thats contributed to returns coming down, i dont see private equity needing to extract 25 or 30 , i think the return criteria has become more logical to some extent and that facilitates dealmaking where their own investors are happy to express the terms. Francine is money going to come back, do you have an idea of for the government is in some of the policies in place . Hernan the general sentiment i get from the u. K. , whether in north america or asia is we want to understand the rules of the game, is not so much about brexit or no brexit, its tell us the rules of the game and once we will engage. But until we know the rules its difficult for us to engage. Francine we touched on the car industry and health care, his payments a big one right for right for consolidation . Think it makes sense that a sector that was regional to some extent is gradually becoming more global. Its a very scalable sector. Francine is there a downside to all this m a . Every time youve to advise the chief executive you would warn them of, does it have to be a culture for . Weve talked about regulatory risk, i find that we are almost doing deals backwards or the other way around. We used to figure out a deal, negotiated deal, announce a deal and then we start dealing with all the different stakeholders and now it seems like we are doing it backwards. We start figuring out who are the stakeholders, once we understand those constraints, then we structure the deal and we announce it. We are almost going backwards to address those. Francine thanks for joining us today. Global cohead of m a for Jpmorgan Chase bank. Up next the coalition and crisis. His a Ruling Alliance at risk . This is bloomberg. This is bloomberg surveillance. Germanys government has been thrown into turmoil after the social democrats elected new leadership that voiced opposition to the Ruling Alliance. Bloombergsow is German Government reporter. What do these new leaders stand for . This government has been bad for their city. They have called into question or at least toying with the idea of getting out of this coalition but the image is not so clearcut. Is former finance minister actually a pragmatist. He does see the new elections would not do any good for the social democrats and would rather like to stay. The lawmaker is really an ideologue and she thinks this government really needs to move much further to the left, given a much longer and she would like to leave this government right now. Francine is there any wiggle room for negotiations . Mind thate to keep in they also dont want new elections but they have made clear that the coalition has agreed in the cdu has already bent over to do everything to keep the spd in. Theyve introduced a lot of social reforms that passed a new minimum wage, basic pension and say enough is enough we are not going to make major concessions anymore. Thees they do want to keep broad coalition, they are probably going to sit down with them and negotiate but the room for compromise is limited. Coming up, Hong Kong Retail sales slumped as chaos cripples the economy. We will be have the latest on the fallout from the ongoing protests. This is bloomberg. Beyond the routine checkups. 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. Francine hong kong protests. Crippling the citys economy. The u. K. Labour party is closing in on conservatives, markets underpricing the chance of global governance. Duo ishas established me a Ruling Alliance and a risk. Good morning, good afternoon, good evening. This is bloomberg surveillance , and i am Francine Lacqua in london. Everything about 50 means it is an expansion. Everything below 50 means it is a contraction. We have european figures early on. Still a contraction but better than expected. You can see the pound at 1. 20905 at 1. 2905. It is still below 50 at 48. 9 pounds. 1. 2 907, and we are a weekend two days from the u. K. Election. Lets check in with the biggest stock numbers with Annmarie Hordern. Annmarie the biggest gainer on as theyx 600, up 5 sell oil fields in uganda, come after the president of uganda met with the ceo. Rio tinto is up more than 1. 5 . We are seeing all the miners rise this morning, rio tinto upgraded rbc, and they will benefit. Ted baker down 2 this money. The start of trading, it has plunged more than 10 , and this comes as the overstated the value of their inventory. It has been a rough year for the company, missing a number of sales updates. So much, thank you Annmarie Hordern. Plunging 24 in hong kong. An ongoing sign that the unrest is hitting the economy. Firedsed the Police Tear Gas into the tourist district. Roads were blocked and fire was set to subway stations. Asia correspondent enda curran. If you break it down for us, how bad is it . Ina it was pretty bad october, francine, and that was broadly expected. We know that tourism on the retail spending side of things has been getting hit. Chinas ohs by slowdown own slowdown as well. We know that the broader economy is suffering is well under the trade into logistics side of things. That is suffering because of the world slowdown in global demand. There are two ways of looking at it. On the political side in terms of protesters, no sign of a circuit weaker. There is an impasse that remains on the World Economy side, the demand for trade of goods is in something of a sluggish stabilization. To combine that, looking for hong kongs economy, it is pretty bleak at the moment and that is why we are looking at a recession. We hope perhaps for some kind of a turnaround into next year. Beijing oneat does for hong kong . If the protests continue, do ory want to safeguard it, will it be unrest if hong kong loses that jewel . Enda if they keep moving money in and out to into and out of china, the rule of law here gives it a vital role in terms of settling and agreeing on contracts for trading in securities and the like. There is no doubt that what hong kongs economy may be what it was may not be what it was in the past, it still plays an important one in chinas economy. That will continue to be the case. We do know the that on the political side there is no sign of a circuit breaker. We know the protesters have their demands. We know that the government seems resolute and inside of things in terms of insisting there is no violence before any kind of concessions can play place can take place. As long as that continues, it should be said that the broad property story and the Financial Services side of things seem to