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 th