5 things to start your day

Welcome to your morning markets update, delivered every weekday before the European open. Good morning. The Israeli prime minister will need to stand trial, Christine Lagarde gives her first public speech as head of the ECB and the Aramco IPO is progressing. Here's what's moving markets. Netanyahu Trial For the first time, a sitting Israeli prime minister will stand trial after the Justice Ministry  indicted Benjamin Netanyahu in each of the three cases in which he was entangled. While Netanyahu has said he has no intention of resigning and that he's the victim of left-wing opponents, the indictments on bribery and fraud charges come amid a tumultuous time for Israeli politics. He's been unable to form a governing coalition after back-to-back elections this year and challenger Benny Gantz also failed, leaving a high chance of a third vote early next year. For more about Netanyahu and the charges, click here. Lagarde's Debut After three weeks in the job, Christine Lagarde will give her first public speech Friday morning as European Central Bank president. She'll be speaking at a banking conference in Frankfurt and investors will be looking for any clues on rate policy as lower-for-longer rates keep putting pressure on lenders' margins. Beyond that, they'll be listening for comments on banking integration, which could potentially provide fresh impetus to the banking sector's rebound that has stalled this month. Aramco Subscription Subscriptions to the initial public offering of Aramco reached about $19.5 billion during the first five days of the offering period, Samba Capital said. The totals suggest that the institutional part of the deal is about 90% covered, and 46% of the retail tranche. Global banks have been sidelined after the offering was pared back to a mostly domestic one when international money managers balked at the reduced price target of $1.6 trillion to $1.71 trillion. Another thing for Aramco investors to worry about: Climate change could make it difficult for some of its refining facilities to operate in the next few decades, a report showed. Land Tax Boris Johnson's Conservatives want to make it more expensive for foreigners to buy a house in the U.K. The Tories plan a 3% surcharge — that's on top of the current land tax known as stamp duty — in an effort to damp demand and keep housing prices in check. Housing is a hot issue all over election campaigning, with the Liberal Democrats pledging to build 300,000 homes a year and Labour promising to build at least an additional 150,000 council and social homes annually. Of course, that's not all Labour leader Jeremy Corbyn has in his manifesto. Read here for more on his remedy for voters' austerity fatigue.  Coming Up… Asian stocks were mixed as investors await details on trade discussions. It's an extremely quiet day for European earnings reports as the season winds down, while next week, investors can look forward to updates from Compass Group and Remy Cointreau. In Hong Kong, voters are scheduled to go to the polls Sunday for the first time since the unrest started in June, though the government has threatened to postpone if there is a renewed round of violence. And Angela Merkel's Christian Democratic Union holds a two-day party convention today and tomorrow. One thing they may not discuss: who will be their candidate to become Germany's next chancellor.  What We've Been Reading This is what's caught our eye over the past 24 hours.  What's a bigger problem than a potential recession? How we loved frequent-flyer programs to death. Deutsche Bank's last-ditch plan to save the best of its business. Marie Kondo is selling stuff that sparks her joy. Hong Kong's rich are planning escape routes. For money. Borat actor wants Facebook to combat fake news. Being French is best, index shows. And finally, here's what Cormac Mullen is interested in this morning More upside for cyclical stocks and a "baby bond market." That's what awaits investors in 2020, according to the Goldman Sachs strategy team which published its annual outlook on Thursday. The investment giant sees a stabilization of global growth which will allow riskier assets to outperform, even though major central banks are likely to make little changes to monetary policy. Still, caution remains with the strategists not expecting the type of "go-go" global growth that would sink the dollar or cause a major bear market for bonds. The Goldman team see benchmark Treasury yields rising to 2.25% next year from around 1.77% Friday. They expect cyclical stocks in the U.S. and emerging markets to outperform. In Europe, Goldman recommends shorting 10-year U.K. gilts as well as the euro versus the pound and favors Italian over Portuguese sovereign bonds. And for those curious about what keeps the Goldman strategists up at night - it's liquidity, or lack thereof. The deterioration in market liquidity conditions stemming from the financial crisis remains a major source of vulnerability for investors, the strategists said. Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more. FOLLOW US SEND TO A FRIEND You received this message because you are subscribed to Bloomberg's Five Things - Europe newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022