pulse.e: welcome to the these are our top stories. china slowdown. contraction continues for the manufacturing sector with pmi falling to its lowest level in six years. asian stocks and commodities fall on the news. china is open for business. the country's official news agency says the nation will buy 300 boeing planes. the future of martin winterkorn hangs in the balance as the carmaker's executive committee meets today.

welcome to "the pulse" live from london. i am francine lacqua. we have some very exciting interviews. in an hour's time, we speak exclusive to national austria bank's chief executive ewald nowotny. we are also getting manufacturing figures. those are services and pmi. there you go. for september. manufacturing pmi falling to 52. in line with expectations. let's have a look at whether euro-dollar has moved on the back of that. 1.115. we have seen a little bit of volatility. half the people we speak to still expect parity by the end of the year. other saying that ain't going to happen, given what the fed has indicated. now, there is further evidence of the china slowdown after a private manufacturing gauge fell

to the lowest in 6.5 years. the pmi reading missed estimates and showed contraction for the seventh straight month. asian markets fell on the news. let's get the latest with caroline hyde. caroline: let's have a look at asia trading because this is where the pain was felt. aboutgain, the concern the global economy. the chinese economy front and center in investors minds. we had three days of losses in terms of asia trading. the three-day route since august, where we really saw the concern about the chinese economy come front and center. the hang seng down more than 2% on the day. clearly being hit by the manufacturing -- because miners were feeling the most of the pain. the hang seng staying below 2% on the back of their concern, that, of course, the -- fell to the lowest since march, 2013. contraction for six straight months. fluctuated.e're

between losses, gains. we seem to be on the higher sides of things. not quite so concerned because our economy looks like it is going a little bit better. of course, we did see slight slowdown in the numbers coming from the eurozone. expectationseating when it comes to services and manufacturing to we saw growth rate that contraction. and germany posting growth once again. that helping european stock staying in the green this morning. basically flat on the morning after the particular eurozone figure in terms of growth across the markets for september. let's have a look at volatility. come and gone a little bit today. we saw it spiked higher. the fear index. here in europe. up 19% yesterday. today, coming off those highs, down by a few percentage points. volatility does seem to be

easing after yesterday spike. all eyes, though, still remain on the auto makers. volkswagen a slight gain today coming off of it slows. still down 34% over the last three trading days. its is a third wipe of market valuation. more than 27 billion euros wiped over its value. we have to chief executive martin winterkorn in front of the supervisory board. you will be speaking about that a lot more with hans nichols. how far thisut could go, the impact on other industry companies being hit today. francine: they give so much with the very latest on the markets. let's stay with china. president xi jingping beget a weeklong u.s. visit yesterday with a trip to seattle. speaking to a gathering of business owners including bill

gates he says that china will not devalue the yuan. >> given the economic and financial situation at home and abroad, there is no basis for continuous depreciation of the renmimbi. but we will stick to the plan to have the exchange rate -- and have the market flow those ways. we are against currency war. we will not lower interest rates to boost exports. francine: david tweed joins us with the latest. david is in hong kong for us. can you take xi's words that there will not be for the devaluation? david: when you consider what happened in august to china's foreign currency reserves and the estimate is that at least 93 if not more billion dollars was spent defending china's currency after the devaluation, probably you can look at what he had to

say in a speech in front of an audience to say that probably for now we are not going to see any further devaluation. ifot of people are saying china would allow its currency to be even more responsive to market forces, given the source of numbers we saw coming out today with the pmi, one might expect to see further declines us the value of the yuan vers other currencies. we will not see a step down. not like the one we saw in mexico in 1982 when they promise to defend the currency and six months later we got a 40% evaluation. this is going to be a very managed to fair. francine: xi's just put in an order for boeings. david: extra day. it is a landmark deal. this is how to win friends and influence people. also, pretty interesting as well was the announcement coming via xinhua that boeing is going to open a finishing or completion

plant in china. this is going to be boeing's biggest foreign expansion outside the u.s.. a fairly big deal. but it is all about checking up with -- catching up with airbus. it only has a completion plan north of beijing. very interesting to look at the numbers. 300 planes comes right smack in the middle expectations, it was 250, maybe even as many as 500. xi is heading to the united kingdom . month.t it does not look like he is playing one versus the other, but in seattle, pretty good news when you can announce such a massive purchase of planes. francine: think you so much. while president xi is in america, david cameron is in china. britain's second-largest trading partner by 2025.

he outlined plans to link the country stock markets. want to see our stock markets in london and shanghai formally connected. with u.k. firms raising funds from chinese savers and chinese firms listing in london. this week we announced a landmark feasibility study to look at how we could do this. connecting our stock exchanges means more jobs, more investment, higher living standards in both our count ries. a win for china and a win for britain. francine: let's bring in michael metcalf from state street global markets. great to have you on the program. we heard from xi jingping in seattle making statements about the renmimbi, saying, there will not be more devaluations. a turkey day. ckyy need to put -- a tri

day. they need to calm the markets. can we believe him? and david course tweed mention this is that if they allow the currency to freely flow, it could potentially go out awful lot further. in one estimate we had in terms of looking at purchasing power, it should be trading at 6.80 to get to fair value. the interesting thing about the indications of this is that it puts perspective -- we call this a devaluation. in real terms, the chinese currency has been incredibly strong. they have just corrected a very small part of that. terms of the deliberate moves, they are trying to prevent it. you can take them for his were that they are not trying to do a competitive valuation. they have allowed the exact opposite. almost went too

far. they let it devalue a little bit and then they try to rein it back in. michael: there are two things at play. there is the valuation point and the competitiveness of chinese exports and the fear of capital outflow. i think it is the fear that made them step in. markets are pretty efficient. that's the sort of the fair value for the renmimbi. they cannot do that because they are worried that will lead to unstable capital outflows. a managed weakening in the currency to that level over a longer period might be more appropriate. primene: the indian minister goes to the u.s. and he goes to see obama and then tech companies. the chinese premier goes to tech companies and then obama. can you in for from that or is it just coincidence? michael: not necessarily. the thing i do think is very interesting and the relation to two story she tehe began the program with. the china pmi.

6.5 year low by one measure. and then your other story -- 300 boeings. idea of a lot of effort being made of diplomatic ties. yes, the global economy is very integrated. we are very dependent on china. but here's the interesting thing. chinese pmi came out at 47. let's see what the european pmi does and the u.s. pmi. there is this assumption that everything is driven by emerging market growth. but actually develop market growth is ok. there is an interesting contrast between the stories we are running today. francine: yesterday we had figures from alabama. -- from alibaba. and they were not that bad. given what the fed has done, are you more worried about equities getting ahead of themselves now then you were a couple months ago? because, if we do not have a process of normalization, then this cheap money fuels asset

bubbles. michael: we need to stop the normalization process. francine: but we are not. michael: i tried to argue that last week. here's the interesting thought. there is an uncertainty about chinese growth. i think the fed by highlighting the weakness of the global economy has shown a light on that uncertainty, almost in the sense fed it. if you look at the market reaction since the fed, the fed you doite dovish, yet not get a rally in equities because you're compounding investor fears. it is a perverse situation now where the best thing for equities might be for them to hike. francine: do think they will the sheer? -- this year? october? in september when i have a news conference? michael: they could have hiked and said they are having a press conference at the same time. we get too micro on these

things. they cannot possibly hike in december because it might snow. it is that kind of parliament. of argument. kind if you continue to get spikes in the market, that is a problem. the inflation numbers are worth watching. headline inflation is going to be very soft. it's really important to the u.s. that core inflation is stable. that is the key. the labor market is done. we should have normalized already. it is about core inflation. francine: you're right. we are looking at whether it is snowing to see whether the fed does something. maybe forward guidance was a huge mistake in communication was terrible. do think the ecb is doing a better job at this? we are speaking with ewald nowotny.

we have a clear indication from all the members that we will need more q.e. the commentary has been fascinating as to how dovish they have been. so when they get -- it seems really likely to us that we look at deflation this month. the crisis in the eurozone has falling on an annual basis. trivia to sit to see how the e -- it will be really interesting to see how the ecb reacts. very good as using that as a communication device to say, we are going to be there. we are going to be dovish. we are going to potentially ease further. francine: the only thing that will play on this the currency. it is not translating to the real economy. michael: this is one of the reasons they need to be dovish. if you look at all of the q.e. programs and the reactions of the currency -- the ecb was good at the announcement. since then, it is strong. you look at all of the q.e.

programs, the only program that has not had a better impact on the currency is the bank of england's second q.e. program which was disarmed -- was disturbed by the european crisis. there is a bit of work for the ecb to do to talk the currency down to promise further easing. francine: michael, great to have you on the program. now, after volkswagen admitted to cheating on emissions test in a scandal that could cause billions of dollars in fines, ceo martin winterkorn faces a showdown with the carmakers board members. our international correspondent hans nichols has the latest. he joins us live from berlin. martin winterkorn has worked for vw for three decades. he is part of the machinery that led to the scandal. can he keep the job? hans: he is a details man. he prides himself on knowing all aspects of the company. and what you are hearing, at least from some members of the supervisory board, is they wanted a for nation him, how he did not know about this?

that came from the premier of lower saxony. n, the old schedule was that on friday he was expected to have his contract extended through 2018. a week ago when i spoke to limit the frankfurt auto show, he seemed confident and pretty forward-looking. winterkorn: first of all, my contract has not been extended. executive committee has been proposed to be extended by the supervisors board. chairman ofs to the a supervisory board, let me say that for more than 14 years we have been working together closely up in th -- i've been the engineer. he was focusing on business matters. so, it's an excellent cooperation on a personal level. let me say for this reason that orn corporation for the next years is a good sign for the grouping well-placed. hans: francine, dr. winterkorn

clearly appreciates the importance of the executive board. he will be making his case to them tonight on that executive board we have wolfgang porsche. union representative. and then you have stefan weil. then on friday, the full board meets. dr. winterkorn's fate hangs in their hands. francine: do we have any idea of who could be a successor? hans: well, there a couple of names. theius mueller. porsche. ceo of then there is herbert diess. he recently came over from bmw. a fresh face.

if the board is looking for new leadership, herbert diess may be their best bet. spiegel reported yesterday that on friday it uellerbe mathias m replacing dr. winterkorn. what we had from dr. winterkorn yesterday is a clear indication he plans to fight. francine: this weekend, intoberg best will go detail about vw. be sure to tune in on saturday and sunday at 12:00, 4:00 p.m. and 9:30 p.m. on bloomberg tv and online. e.u. interior minister's having agreed to shelter 120,000 refugees ahead of a leader summit. despite objections from four eastern european nations.

jones, what has been the reaction to this european agreement? jones: there are couple of things. first of all, as soon as the ministers announces agreement last night they admitted it is modest and it is not enough to actually address the full refugee situation. this agreement is for 120,000 refugees to be distributed across the e.u. but the projection is that one million refugees are going to be coming into the e.u this you and. -- this year and in each year for a couple years. this is to solve part of the problem. the other thing is that this agreement was put through over the objections of these four eastern member states. the e.u. usually works on consensus. and the fact that they had to put this agreement through over these objections really points to the divisiveness of this issue among the e.u. member states. e.u. leaderses, expected to take further

measures when they hold a summit later today. can we expect anything concrete? jones: they're going to work on the long-term solutions to this problem. now they have got the 120,000 agreement in there, and they are going to be looking to see what they can do in terms of the frontiers of the e.u. try to beef up border surveillance and the procedures for fingerprinting that the refugees go through when they enter the e. at the bordersu. at the same time, they try to focus on the root of the problem -- the countries of origin. turkey, jordan and lebanon. try to come up with a program that puts money in facilities into those countries. to deal with the problem before the wateres cross of the continent to get to europe. francine: one impact is a crisis having a businesses operating in europe? jones: as you can imagine, the

train travel in eastern europe has been disrupted to a great deal by this influx of refugees. at the same time and also understandably, the crew ship industry is feeling an impact. carnival cruise has had to pick up refugees in tehhe sea to save them. the ceo told bloomberg there is consternation among perspectives about just such scenes. francine: great to have you in the program. thanks much for coming in. with the latest of the refugee crisis. let's get more analysis on your's refugees crisis -- on europe's refugee crisis. hans, over to you. hans: that is right. i'm joined by dr. sinn. when we look at these refugee crisis, what is it going to mean for the german economy, the european economy? is there an opportunity to hire some of these refuges?

>> of course. it makes no sense to let the men and pay them for doing nothing. they will have to be integrated into the society and into the labor market and everyone agrees. however, it is not clear that everyone can stay, because most people say they want asylum but they come for economic reasons. then they would be sent back home. hans: do you expect the unemployment rate to tick upwards if indeed it is one million new asylum applicants for the year 2015? inn: of course. we have the minimum wage. it is binding. there will not be more jobs simple because more people are looking for jobs. these extra people who come to the labor market will migrate into unemployment if they are not themselves unemployed then they will push others into unemployment. that is the unfortunate truth in the market economy. hans: what do you expect unemployment to go to? 6.4%. mr. sinn: i don't know.

it is a matter of calculation how many of these million will go to the labor market. if it is half of them, then it is 1/6 of the number we have, so one percentage point. hans: that is a significant increase. at what point is there a political backlash in germany? we have seen a little bit in the csu. to accepting all these refugees that angela merkel has called in the country to do. merkel did not say that we'll all be excepted. she said those who are entitled to be accepted as refugees, they can say. but the majority of those who come will not be accepted and the question is, what to do with these? i think it would be fair to introduce a point system for regular immigration from non-e.u. countries and that a be

applied to these refugees who have not been accepted as true asylum seekers. hans: shifting gears for the other story dominating the headlines here in germany -- what is happening with volkswagen. without asking to comment specifically, what does it mean for german industry, germany's reputation for building great cars? they apparently have been flouting the rules of the epa. it is, of course, not very good for the image. it is the same thing as the subprime crisis in america when america produced fraudulent abs papers and sold them to the agenciesre the rating set some standards and they had been met in the test business, but in the normal situation, where the risks were not correlated. were correlated. this whole thing to network.

in the risks were much bigger than anticipated when they gave the a-plus ratings and so on. it is the same thing. it is right with tory arbitrage -- regulatory arbitrage which we always see when there is a system of testing. what undercuts that is who does business outside this regulatory system. hans: this is in fact the it -- affect the entire german auto industry? mr. sinn: well, that depends on how much fuss is made out of this. by the competitors. aey will try to impose negative signal for the entire automotive industry in germany. whether they succeed, it is not clear. diesel engines are produced everywhere in the world. i think there are similar problems in other companies, too. diesel is very clean, but you can always impose standards so

that it will become very difficult. for carbon dioxide. it is not that clean when you get down to nitrous oxide. that's why paris has a smog problem. what does this mean for the future of diesel? sinn: it is the problem of the world. you can always find when you have technical devices standards that do not fit. for example, there are now led lens coming from china and the german industry says they do not satisfied our safety standards. why do they say that? in order to get rid of competitors could i think this is a similar thing. one should not overblown it. one should take it as it is. it is a minor thing and it is not such a gigantic aspect , which some people give it. xi jingping hans: we just heard a view from one of the most preeminent economists in germany. it is a minor thing. i will not ask dr. sinn if he

drives a diesel. i suspect he bikes to work. francine: i know you will ask them offset. hans nichols. up next, more on vw. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

francine: welcome back to "the pulse" live from london. i am francine lacqua. these are our top headlines. latest on china's economic weakness has sent asian markets lowers. the gauge of manufacturing in 6.5fell to its lowest years, underscoring the challenges facing the nation's factories. meanwhile, the chinese president did his best to talk up his country's economy in the first major event of his visit to the u.s.. xi jingping emphasized the government's determination to

maintain economic growth while stabilizing its markets. >> recent abnormal ups and downs in china's stock market have caused concerns. stock prices fluctuate. it is the duty of the government to ensure an open, fair and just market order and prevent panic from happening. this time, the chinese government took steps to stabilize the market and contain panic in the stock market and avoided a systemic risk. u.k. chancellor george osborne has set up a goal of making china britain's second-largest trading partner by 2025. he also outlined plans to link the country's stock markets. i want to see: our stockmarket in london and shanghai formally connected with u.k. firms raising funds from

firmse savers and chinese listing in london. this week we announced a landmark feasibility study to can do that.we connecting our stock exchanges mean more jobs -- means more jobs, higher liver standards inhigher living standards both our countries. francine: the volkswagen ceo dr. winterkorn's job hangs in the balance over the emissions get a pic he will get a chance to make his case later today before the firm's executive committee. the key question is how much he knew about the scheme designed to dupe u.s. regulators and drivers over pollution from these legends. the controversy around vw unfolds, european carmakers have been hit. ceo waited on what the crisis means. >> today, there is doubt existing.

focusing on one company, but in a certain way infiltrated for the other companies. i am sure you will see in the next hour statements made by every carmaker. each one station's situation and his own company. i'm not so worried about it. i can understand the reaction in the market. easy for every single member to make their own statement about what they are practicing and what kind of devices they have and what kind of technology they have. i think most of the companies are in order. i think every company has its challenge. we tried to face the challenge in the most transparent, truthful way possible. me, it is a moving target because the technology is moving all the time. this is a competitive game, also. every region has its own testing, has its own emissions and carmakers have to adapt to this. we have to adapt to this in the most truthful and transparent way. when we have problems we share

them with the regulators. at the same time, technology is evolving a lot. a lot of things today are possible which were not possible a few years ago. what is important for the industry is to give some kind of visibility about what has to come. the scandalw, as involves the world's top carmaker, a number of european companies are gathering in new york for climate week. earlier, i spoke to the unilver boss paul polman. polman: would you want to buy from a company that has child labor or that does not have sustainable practices? would you want to buy from a company that contributes to the issues of societies rather than the solutions? increasingly citizens of this world, again with the benefit of th transparency of the internete are able to separate and we see that in our own company. the expectations also up.

this is a moving thing. we, for example, moved from 10% sustainable sourcing of our agricultural business to 60%. the tremendous improvement. we have done it in five years. talk abouthen you purpose built business models, does this come for you because you have been passionate about it? does it come from -- was there a turning point where you thought this has to be done for myself and my business? mr. polman: our business is a business that addresses these basic issues of system any the sustainable development agenda. it is our duty as ceo's to set an example and be sure we are not driven by the shareholder primacy. but driven by the needs of the consumers. the business will also perform. francine: now, up next, as e.u. interior ministers agree to

00 refugees, we visit the largest migrant camp. ♪

francine: welcome back to "the pulse" live from london. way toeurope is certain cope with their refugees from

syria, it is turkey, lebanon, and jordan which have taken the line share. jordan is now hosted the middle east's largest refugee camp from where bloomberg's elliott gotkine sent this report. elliott: there are syrian refugee camps and then there's this. at its peak, it was home to 130,000 refugees. that number has come down to 80,000, but even so, if this were a city, it would be jordan's fourth biggest. on the southern edge, we need h er family. they are from a damascus suburb with 1400 killed -. their main worry making ends meet. >> my husband was missing in syria for 2.5 years, so came here to join my mother appeared i do not regret coming because my son had to be treated for kidney cancer. but we are poor. sometimes you borrow money from the neighbors.

staying here is not a long-term option. it would be a dream to go to europe. partly it is because your office better prospects. partly because jordan is struggling to cope it hosts 630,000 syrian refugees. the government says the true figure is 1.5 million, almost the population. that is like britain taking in 15 million syrians. refugee agency's top man in jordan says the international community is not doing enough. >> the support was not efficient to do our work. what we are seeing in regards to people moving towards europe is a direct consequence of that. wp's havet month, had to cut food support. 440,000 refugees. refugees are struggling to find a way to survive. so, has europe done enough? not really. elliott: unable to legally work,

thousands of refugees are returning to syria and its war 15 kilometers to the north. for those that stay, life goes on as normally as it can. ♪ there are even weddings. a hopeful site in a sometimes hopeless place. elliott gotkine, bloomberg, jordan. francine: now, our next guest says the inflow of refugees creates an opportunity for boosting long-term growth in europe. but that opportunity is not being sees because of the political backlash. he is the chair of european political economy at the london school of economics. program have you on the as always. this seems like a perfect concoction to get this policy run. there is a backlash against refugees right at a time where politically we are fragile. we see the rise of more extreme parties. economically, you argue this makes sense. paul: let me first say that we

have to do it irrespective of the economic arguments. it is a moral duty to do this. but it is good to know that it is good for us. that we will prosper. so these people want to work. many of them have skills we lack. wayallowing them in is a to animate the economy, to boost productivity, also demand, because these people are going to spend. so, it's a golden opportunity for europe and we should not let it go. francine: we spent a lot of time looking at this, and you talk about moral duty. is there a danger that by accepting refugees against the will of some country's citizens will bring the vote to more extreme parties in the future? paul: yes. some people are very much against it, but it is important that enough other people stand up and say, but wait a minute.

not only is there a moral argument to do it, but we have a good economic reason why we should do it. and that should be said we should not stop saying it because, on the extreme right, people hate it. we should continue to tell that story. francine: also, the extreme left is the story they do not want to hear. angela merkel is the one politician who seems to be getting it right. she's leading the pack in the sense, and she seems very compassionate. again, the argument she is making his economics just because germany does not have enough children to sustain pensions in the future. paul: i think she started correctly. expresses the now political limitations because in her own party there is a lot of opposition and conservatives who do not like it, are afraid of the extreme right. i think she has been courageous in this area. and signaled to - -the right direction for europe. francine: we find the european

union interior ministers agreeing to shelter 120,000 refugees. this is a starting point, but it will not be enough. paul: not be enough. also, my feeling about this quota is this is not going to work. tell the syrian the good news that he has to go to italy. he may be going to italy but in the end he will end up elsewhere. he will want to go to germany or to britain or belgium, holland. these things you cannot really regulate. you can initially give some guidance, but ultimate, these people will want to go where there are opportunities. francine: do you think at the end of the day, europe all caps is right? there has been criticism -- do you think at the end of the day europe will get this right? you have so many different countries involved. you to not have a single voice. at the end of the day, will we do a right thing as a region? paul: that is what i hope.

we see in different areas, like in monetaryand union, we have taken a step forward. have opened upwe borders. now we see the structure is not enough. we have to do much more to make it work. it could't, in fact, unravel. so that is the critical moment that we have. i'm hopeful we can push forward, yeah. francine: with the backing of citizens and the only way of getting that is the economic push. do we need more? i'm reluctant to call it marketing. but this is story that needs to be told. paul: we should not be afraid of saying it. say,imes i hear colleagues don't do that, don't say this because you will make the extreme right more popular. i think that is the wrong approach. we should say it. and tell that story. francine: the economics makes

sense, o soaring refugees because they will be more productive because they will have jobs maybe that others do not want. we see especially in the north of european some jobs are not being taken by the indigenous population. and these people are willing to do it. so, let's do it. let's open our borders spurred some and he countries in the past that have done that have prospered. the united states is the obvious example. but many others stories like in the 17th or 18th century. the hugeunots from france going to prussia. these are successful stories. francine: why is it so difficult at the moment? is it social media? in a global world, people make an opinion before they know what is happening. not a sociologist. i do not understand everything, but it strikes me that it has to do with fears. people are afraid.

quite often people that are afraid are the least in contact with -- you see in london, for example, there is much less fear about foreigners in london event in a small town in england. almost none. it is the same pattern all the time. people are afraid. they are fearful. i do not know what to do about it, but we should try to tell a story that will make them less fearful. francine: we are jumping from one to the other, but this is a huge crisis, humanitarian crisis we deal with. how much do you worry about the west, the economics? the factor is a macro environment that seems to be pointing to a fed that is resistant to normalize because of turmoil and a china that we can't figure out? paul: yeah. yeah. it's worrisome. i was disappointed the fed did not raise the interest rate. all it had to do was to raise it

a percent. it would not do anything in terms of reducing the recovery in the united states, but it would have signaled that now is the topical back to normal. this would have been a positive signal for the markets. the fed believes we are in a normal time, we are going back. now there is more uncertainty. i think this was the wrong decision, but that was my personal view. china, of course, remains the big uncertainty but that should not tie the hands of the federal reserve. the federal reserve should be concerned about the united states, and this is on the right path. francine: thank you for all of that analysis. now, up next, with a new iphone coming out this friday, we take a look at whether the new figures make it a worthwhile purchase. we are right on "the pulse." ♪

francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on your tablet and phone and bloomberg.com. the fbi has recovered personal and work-related e-mails from the private consumer -- private server used by hillary clinton. now, that is according to a person familiar with the investigation. the uncovering of personal e-mails that clinton said had been deleted raises the possibility that the correspondence could eventually become public. now, pope francis has arrived in

the united states on his first visit there. world's onef the billion roman catholics. president obama and his family met the pope at an airbase near washington after his chartered flight touchdown from cuba. in a fiat. airbase he's using more modest cars. scientists have announced the discovery of a previously unknown species of dinosaur. is unique tous northern alaska and raises questions about how experts have used dinosaurs -- view dinosaur physiology. a u.s. federal judges overturned a copyright claim to the song "happy birthday," putting the lyrics in the public domain. the court found the original copyright only covers the music and not the lyrics. they brought the lawsuit after being informed they would have to pay $1500 in royalties to use a song in a documentary about

its history. that seems crazy. the countdown is on for apple fans with the latest iphone coming out on friday morning. nothing looks that different from the outside, but it's what's inside the 6s and 6s plus that counts. reporter: this is the new apple iphone 6s and 6s plus. let me cut to the chase -- should you buy one? probably. 8 years since it debuted, i still think the iphone is the best smartphone you can buy. roid phones has made improvements, but the way apple was able to develop the hardware and software together still makes for the best user experience. these new s models are typical productypical two year cycle. nothing looks different on the outside, but a lot has changed inside. let's start with the display.

apple has added another dimension to the multitouch and called it 3d touch. basically, if you press harder than normal, you can pull up shortcuts for different apps. like right click on your mouse. a couple of things. first, it does take getting used to. push the wrong way and you wind up getting all of your apps to do that jiggling thing. then there is a matter of what you can do with it. now things are a little bit limited. that i can sure preview of mail message or jump to a new note, but other uses are questionable. who exactly needs a shortcut to call up a private browsing page? fourthly, apple is allowing developers to use the technology so we may see more clever applications in the future. the other big changes have to do with the cameras. the rear facing one has been upgraded to 12 megapixels and can shoot 4k video.

it can take life photo, which captures the moments before and after the shutter has been released. one thought about all these live photos and 4k video, they do take up more room on your phone. if you're in the apple store, walked past that 16 gigabyte model and get an iphone with more storage. the front facing camera cannot take better selfies, thanks to a display that can act like a flash. it will match the ambient color of the room so you cannot come out looking like a zombie. but what makes these new iphones the best smartphones you can buy are the fundamentals. the new processor is ludicrously fast , as is the touch i.d. sensor which works instantly. there is a raft of improvements thanks to the new ios 9. you can activate a battery saving low power mode, get directions on maps and find faster thanks to an improved search and siri. >> hello.

it is these behind the scenes of greens that matter -- up grades that matter. these new iphones actually begin to fade away and focus more on what you are doing. the best things about the new are nots and 6s plus, all the new things that grab your attention. it is all the stuff in the background that you never noticed. francine: i wish i listen to this before ordering mine. it also comes in rose gold. let's see if it picks up with customers. for those listening on bloomberg radio, the first word is up next. the second hour "the pulse" is coming up. we've an exclusive interview with the national bank of austria government and the ecb governor councilmember. ewald nowotny. how dovish will he be? will he suggest more q.e. on a trade weighted basis, the euro has been creeping up.

we will hear more from our interview with the unilever ceo on sustainability. we will talk about volkswagen 30 can follow me on twitter. i'll see you in a couple minutes. ♪

francine: china's it slow down contraction continues for the manufacturing sector with pmi falling to its lowest level in six years. the president told top u.s. executives that china is open for business. the official news agency says boeing planes.00 and vw hangs in the balance as the executive board meets today. good morning to our viewers in europe and africa, good evening

to those in asia, and good morning to those waking up in the united states. this is "the pulse," live from london. coming up shortly, we speak exclusively to the national bank of austria governor and ecb governing council member, ewald -- stay tuned for that. of thes further evidence china slowdown down this morning after a private manufacturing gauge fell to the lowest in six and a half years. it is a contraction in the sector for the seventh straight month. let's get straight to caroline hyde with the latest. caroline: we really started off with negative sentiment in the market. have a little look at what the hang seng did earlier today, down by 2.25%. chinese manufacturing data came in and posted for the sixth straight month a decline in manufacturing. gauge isanufacturing

the lowest since march, 2009, showing contraction. we saw commodities selloff, asian stocks selloff, and a rebound in europe. interestingly, we have not fueled the negative sentiment into our own trading -- in fact we are rebounding. is our own data looking rather rosy? we saw outperformance when it came to september preliminary manufacturing and services data. pmi came out as france, one. germany also showing growth. the eurozone comes out on top as well with growth throughout the board. european stocks were fluctuating. we were at one point in negative territory but are now coming back up, trading higher. the euro-dollars basically flat. i want to have a look at volatility. that is coming down. we have had a rocky two days.

we have had the worst since august 24, the worst rout in the market since the financial crisis. suddenly we turned a little bit rosier, volatility coming down. today, just coming off those highs, volatility coming back down, in the stock that everyone has their eye on is rising. it was a negative territory but now it is up 3%. ebbswagen got to such a low that we saw one third of the market valuation slashed off. it was down by 30% and today it just rose 3%, as the chief executive faces up to the supervisory board. the question to ask is whether it will stop with vw or if it will spread to other partners in other industries.

caroline connan thank you. caroline hyde with the latest. xi jinping began a weeklong u.s. trip yesterday with a trip to seattle, speaking to a gathering of business leaders, xi said china would maintain strong growth and that it wouldn't devalue the yuan to boost exports. diplomatice financial situation at home and abroad there is no reason for the depreciation of the rnb. we will have the exchange rate decided by market supply and demand and allow it to flow both ways. we are against competitive depreciation and currency war. we will not lower the exchange rate to boost exports. tweed joins us with the latest. can we take xi's word that there will be further devaluation? david: i think you have to

consider the context. this was in a major policy speech in front of u.s. business leaders who are very, very interested in exactly what the value of the you want will be. -- of the yuan will be. but another thing is that we pendingen china susp $90 billion in foreign reserves to expand the currency. in that context, yes, you'd be pretty brave to be betting against the yuan at the moment. francine: what did he say about the stock market intervention? david: well, that was interesting as well. china has had a lot of creditors in its handling of the stock market crisis back in the summer. what he said was -- look, us coming into the market is to try and diffuse panic. it is not as if china is the only country that has done this. the united states that it. -- did it.

he didn't name other countries but he pointed out that other countries have intervened, and that is exactly what china will do. he used the phrase "visible and toisible hand," if it needs reduce the fear, reduce panic, create what he calls a fair market for all. francine: david, thank you so much. david tweed there with the latest on xi jinping in the u.s. let's see what else is on the radar. while xi is in america, george osborne is in china. outlined plans for the country's equity markets. >> i want to see our stock markets, in london and in shanghai, only connected, with u.k. firms raising funds for chinese and chinese firms in london.

we have announced with the chinese government a landmark feasibility study to look at how we can do this. connecting our stock exchanges means more jobs, more investment, higher living standards in both our countries. a win for china, a win for britain. francine: george osborne there. thisve had pmi data morning, showing that the economy is probably maintaining its .4% rate of expansion in the third quarter and will continue to grow. later, mario draghi will give testimony to the european parliament, the right now we have an exclusive interview. let's get to jonathan ferro in vienna with a member of the ecb governing capital. jon. jonathan: francine, good morning. i am pleased to say that i am joined by the governing council member, abel novatni. good morning. over the last few weeks, a

series of ecb officials have come out and talked about downside risks. a source of that may well be china. they are painting a very ugly picture and i guess my first question would be, are things really that bad, and what are the sources of risks as you see them? >> well, i think it is not about that bad, but one has to have a realistic perspective. is that wet we see have increasing risks with regard to emerging markets. it is not just china. perhaps china is the number one. about other emerging markets. brazil, in russia, in other emerging markets. that is something that is clearly a downside risk.

with regard to the european economy, we see that there are also some upside perspectives. for instance, the european emerging markets like eastern european markets, that are close to my home country of austria, they are in a very good economic perspective. high growth rates. emerging europe is in good shape. of course, russia, ukraine, other countries -- poland is excellent, czech republic is excellent. and we have a positive perspective that the low oil price means an increase in income. but we see those different elements together, and we see that they might have the effect

on the potential export basis of the eurozone. jonathan: europe seems to be having difficulty reaching for inflation. can you pinpoint why? there are some obvious answers, of course. we see that there has been further decline in the oil materials,raw and these are all elements that banks cannot influence to rectally. if we look at code inflation rates -- co-inflation rates, they have been rather still. one has to see that there are some extraordinary elements that might have a strong influence,

maybe even for this month in the coming months. those,you can look at whether they have a direct influence, we are of course clearly below the 2% mark, but we are on a much more equilibrium perspective. jonathan: over the last month, where is this coming from -- the fx channel, for the credit channel? ewald: it is difficult to distinguish. had --se, we depreciation of the euro, which obviously did not have a strong effect on a reflation very perspective. regard to creditors in general, we see a certain

improvement in the euro area. the problem is that it does not expect to inflate into investment during the economy, and that is of course one of the main elements that we need, not only for short round but for potentials. jonathan: follow-up on that. the depreciation of the euro has higherthrough to inflation rates. has the importance of the fx channel diminished over the last year? ewald: that is an interesting c discussion. we have the feeling -- yes, it has diminished. on, let's say, the export side, the movement of exports, it is not as close as it has been. t a large parttha of the changes has to be in the medium-term, not the short term. so perhaps it is too early to

keep a clear answer, but for the first time, there has been a certain lowering of -- this weakening of the connection. jonathan: what is the policy response, therefore, when you look at the situation for the ecb? -- asensus is building consensus is building, doing more. when you look at that argument, when you look at emerging markets, slowing down into european data, we haven't seen that so much yet. what i want to gauge is what is the best policy response for central bank? do you wait for it to show up in the data or do you respond early? how would you react? ewald: first, i think it is very important to recognize that central banks in the ecb are not the only players in economic policy. what we see today is that with

, we seeening of exports an increasing role of domestic which has not been observed to the extent that we had hoped for because we have very low wage increases in most of the european countries. ofn we have the question demand from the public sector. there we have have a restrictive stance. now we think it is more of a neutral stance. maybe this is -- and only then, we have to look at what is the role of the central bank in this specific situation.

ecb haveanks and the certain potential ways to act, noti think one should overestimate the difficulties, and should not overburden monetary policy. especiallylement, an tricky situation of low demand, rates, andm interest that means fiscal policy in the medium-term to pay -- jonathan: on the issue of monetary policy, there seem to be three options on the table for the ecb. you can increase the size of the current asset price, adjust the competition, or you can extend the date. as you go into the next few ecb meetings of those options on the table, should you need to move,

which option would you be willing to reach for? ewald: i think this really deserves a much more thorough examination. know th eqeou program we have now is running until september, 2016. . a continuation of this program , withve a similar effect regard to the other options, there might be a way for some combinations, but personally, i think it is too early to tell, too early to make a clear because itategy, will be very important to see what will be the developments in the medium-term. i think central-bank policy should be a steady hand policy. toohould not move in a

activist way, so i'm not sure that there is a need to act in this short period of time, but if we see this, we have the influence to do it. jonathan: given the current parameters where you can by 33% to security, given those parameters, do you have the capacity to increase that program beyond 60 billion euros should you need to? ewald: yes. i think there is a space to do this. could buy more of the same or we could get into other asset categories that we do not buy now. which asset classes would you be looking at the on what you currently buy? ewald: i would not, personally, but there is a discussion about

what other asset classes might be. for instance, there has been a discussion concerning corporate bonds, which is an interesting asset class. the role of corporate bronzes very different in the eurozone. we do noter hand, have risksharing with qe, so maybe this is not such a big problem. that is something that i can do. there is another element where i think there is a common interest that we have. it is already part of our assets. thinks a market where we further development should be possible. now, the results have been rather disappointing.

we had hoped for more. this has to be seen in the context that abs structures are still very different with the need for unification, for a clear and simple abs structure. as soon as this is achieved, and as soon as it is known that the ecb is prepared to buy, i think that should be a strong incentive from the banking side to create this simple, safe type of abs. i would welcome additional supply. jonathan: just a couple more questions -- that could take a long time, and if the ecb wants to stimulate the economy, is that an option that you would be willing to reach for in a short-term should you need to? it is that it discussion is happening seriously? -- i am muchnot

side,n the cos cautious but certainly this is something you could set in motion. jonathan: final question. the ecb's response complicated what may or may not happen elsewhere. the pboc has made their own policy reactions to what is happening domestically. the federal reserve has held off. i would ask the question -- how much does monetary policy action or inaction congregate the ecb's policy? ewald: well, of course we know we are in a very interconnected world. every policy action may have some effect on the other hand, i would not overestimate these effects or this big economy by itself. that callsomething

for immediate reaction. jonathan: in terms of guidance -- and final question -- as we sit down and look at the economy in the eurozone in the months to come, many people anticipating the ecb will do more, what other pieces of information should we be focusing on in the coming months? ewald: well, it is the obvious one. look at inflation rates, and i think from my point of view, it has to look at headline inflation, which may be thickly bys this is one should not but there is this, the inflation side. we at the ecb are also on the side of financial stability. connected with

the stability of the economy as and reduce the effects and number of countries. if we take it together, there is an upswing in the euro area. it is not as strong as we have expected, but still positive. for me, this is the most important settlement because for what ise developments, interesting are wage developments. we have seen that wage growth up till now has been very low. towe think that one answer consumption,is especially in countries that are strong surplus countries, that is a very important indicator, havee see that we do

certain dynamics in which i think for me, this is a very important leading indicator for things to come. jonathan: thank you very much for your time. francine, back to you from here in vienna, austria. francine: thank you so much. this is what we need to focus on after that interview -- he sounds a little less dovish than we were expecting. 'srio draghi horslds quarterly meeting at 2:00 p.m. u.k. time. 2:45, manufacturing pmi data out of the u.s.. for more of what to expect, let's bring in stephen. stephen great to have you on,. we were listening to that interview. he seemed a little less dovish than i would have expected him to be, because he didn't commit to what the ecb was pushed to do.

it was interesting to hear him talk about the linkage between the yeaeuro and exports were not as linked. stephen: to some extent, you would not expect him to be so transparent with future transactions, especially with the timing relatively far off. i think he is also highlighting the fact that recent economic data, while globally has been relatively weak, there are signs of stabilization. there isn't any call for alarm at this point in time, but having said all that, if history is any guideline, if you look to the fed's own policy with their really portends the fact that we think it is likely the ecb will extend their qe program once the current one meets its deadline. francine: let a figure this out. it seems they have abandoned their inflation mandate. it is completely out of their control -- no matter what they do, this is linked to the price and commodities. so why not just focus on growth?

stephen: the central bankers have historically had dual mandates with respect to inflation and employment, and currently we have no inflation anywhere. but i think you could also point to the fact that inflation is being caused in large part by the common commodity prices, which in many ways could be a form of disinflation. the big fear is do we go into a deflationary environment. despite the fact that we aren't seeing any signs of inflation, there are also of the type of deflation that would be destructive to an economy in the form of delayed consumption, because what you are seeing is still continuing asset price growth. really, when you think about inflation as a whole, core inflation is steady. secondarily you are starting to see service inflation starting to pick up. francine: what is your main take from the ecb? the ecb willink continue to engage in a qe program. it will be very difficult to

hold the process. so i think what it means for the euro is that while on the one hand there could be pushed down, globally we are all engaged in qe. what it ultimately results in an arranged down training level, and what i think most central banks of the comfortable with, i think the fed is very happy with where it is right now, they just don't want to see it had toward parity. francine: will he have parity? pains draghi is at th -- stephen: i think it is highly unlikely that we had toward parity, in part because you are seeing the fed reacting as well to the current exchange rate. what will prevent us from heading to parity, although there is always the case in touch upon it, but it will be sustained -- it is a reactive policy process. francine: stephen, great to have you on. thanks for coming in. coming up, the scandal which has way to 24 billion euros from the

market value of one of the world's best-known car companies. after the break, who is to blame for folks like an's crash -- for crash?ik volkswagen's ♪

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francine: welcome back to "the pulse," live from london. i'm francine lacqua, can these are bloomberg's top headlines. the latest sign of china's economic weakness has sent equities plummeting. pmi fell to its lowest in six and a half years, underscoring the challenges facing the nation's factories. xi jinping did his hard to talk off his country's economy in h first major visit to the u.s.is tech leaders in

seattle, he said he would maintain economic growth while reforming and stabilizing the market. >> recent abnormal ups and downs in china's stock market have caused wide concern. stock prices fluctuate in accordance with laws, and it is the duty of the government to ensure an open, fair, and just market order, and prevent massive panic from happening. this time, the chinese government took steps to stabilize the market and contain panic in the stock market, and thus avoided the risk. francine: the ceo of volkswagen has his job hanging in the balance. he will get a chance to make his case later today before the executive committee. the key question is how much he knew about the scheme to dupe regulators and drivers over pollution. it is 10:30 london time and let's check in on the markets. mark: european stocks rebounded

from the biggest lost since august. you remember what happened that day, when the stoxx 600 had its biggest drop in seven years. investors are seemingly shrugging off that private gauge of chinese manufacturing, which fell to its weakest since march, 2009. in the eurozone, the confident manufacturing and services showed growth. not as much as expected, the third-quarter average still at the highest level in more than four years. over to you, mr. mario draghi. he addresses the european parliament at 2:00 p.m. london time amid calls for an extension on an expansion of the ecb's qb program. -- qe program. jonathan ferro just spoke to the ecb governing council member. in his words, there is room to buy more of the same under qe. european stocks are rising.

rising in greece, spain, the u.k., france, and germany. have a look at what is happening to the euro against the dollar. up by 1/5 of 1%. areve a question for you -- dollar bulls throwing in the tower after the federal reserve kept the policy unchanged last week? to parityanks rallied with the euro by the end of the year, compared to 14 of the start at the quarter, according to analyst estimates. volkswagen.s lik they are up by 3.4% over the last two days. we have seen a slider 35%, which equates to 29 billion euros of value. faces theexecutive executive committee of the supervisory board today. a big know from deutsche bank.

vw is anhat investor's, cutting its recommendation to hold. it cut the price target to 130 euros. impossible to quantify further lawsuit costs. the slide, though, the two days slide in the share price, has dropped for now. is his job safe? that is the question of the day. . francinefrancine: mark, thank y. 25 minutes from now, "surveillance" will start. tom, there is the vw executive committee, and mr. draghi is expected to talk about ecb. focused on the pope here in new york and i will get to that in a moment. we have a wonderful guest to talk about vw. we have robert nardelli, who has

immense experience in bad things happening to corporations. he has lived through good times and bad times for companies like general electric and chrysler and home depot. we are thrilled to bring you him in our 7:00 hour and we will address the w at that moment. and also we will get an update on money -- it is cheap, it is free. whether it is the bank of england said, money is dirt cheap. we will talk about the ipo market and a bit on mergers and acquisitions. and we will go to jonathan ferro. he is on the road with the ecb interview, but far more portly, these markets are most interesting. francine: jon did this great interview with one of the ecb governing council members. he was a lot less dovish than i was expecting him to be, and the ecb is saying that there is still divergence to in the fed and ecb. tom: well, it is one big punch

bowl filled to the brim, and the dollar dynamics over the last few days are most interesting. when we don't have a strong euro and the weekend -- what's interesting is finally we have a truly strong dollar. we are going to show a chart on "surveillance" of the great broad trade weighted u.s. dollar and it really has to leg up, which shows you a strong dollar like what we saw in the late 1990's. francine: tom, you mentioned the pope. this is a pope that has been humble compared to his predecessors. he is arriving in a fiat. tom: he is arriving in a fiat, which speaks volumes about his tenure in one of cyrus. -- in buenos aires. it will be interesting to see

how he plays and the president plays the idea of the politics versus religion in the face of the moment. are perhapse scheduled to be on the south lawn of the white house today. i will be honest, i can't get there, francine, on how you put 15,000 people on the white house lawn. but i guess they will do that at 9:00 or 10:00. francine: looking forward to the coverage. he has been very vocal on climate change. meeting for a climate change meeting and it will be fascinating to hear. tom in about 22 minutes. the scandal around the w unfolds and european carmakers have been hit. one weighed in on what it means for the industry. >> today there is doubt existing, concentrated on one company, but in a certain way on other companies.

i ensure you will see in the next hour statements made by every carmaker, each one examining situation in their own way. i can understand that the first reaction the market is suspicion. we need every single member of the association to make their own statement about what they are practicing and what kind of devices they have. kind of technology they are dropping. this is essential for every manufacturer. i think most of the companies are in order. i think every company has the challenge and will try to face it in the most transparent way possible. at the same time, it is a moving target, because technology is moving all the time. every country and every region has its own testing, has its own omissions, and carmakers have to adapt. we have to adapt to this in the most truthful and transparent way. when we have problems, we need to share them with the regulators.

at the same time, technology is evolving a lot. a lot of things are possible which were not possible a few years ago. what is important for the industry is to give some kind of visibility as to what is happening. francine: let's get more on all this with natalie. before we get to you, we are getting breaking news from the ec the, speaking at the parliament of a vw, saying that they are extremely concerned with the case and they are in close contact with authorities. they are also in close contact with volkswagen. the big question -- what will happen after tuesday. the two options -- either he knew about it or didn't. the press statement he made apologized, sincerely apologizing, suggesting he didn't know. you would ask how could someone like him not know? the second thought that would

come to mind is that at a senior management level, people would have had to do something. francine: are we going to get fireworks today? this is momentous because he has fought in the past previous battles. if he can stay in power, either because he didn't know or because he did, who was the likely successor? natalie: the likely successor is yet to be stated. there is not one clear candidate at the moment. i think we should really focus on how far they will extend this, how far-reaching it was. that is already impacting other car manufacturers on a global basis. snowballing in a lot of economies. francine: yesterday we heard that this is affecting 10 million cars just five volkswagen. this is absolutely huge.

what was your reaction. n? do immediately think other companies were involved or would you say this was a huge mess? natalie: to be honest, i thought volkswagen was on top of it. they install the device to literally -- it was not something they were cheating on with safety regulations, it was being deliberately done. but you can also see how some of the other manufacturers say they had nothing to do with it. on the other hand, they are not a global standard. this is different across different countries and there are loopholes to jump through. full of old slag and for all of it. fault folksu can't lacking? why? this was cheating. natalie: you have to look at the system. people have said for years that the system is flawed. francine: so you are saying that

we knew they were cheating and we should have looked into an earlier? natalie: yes. a lot earlier. than is is only coming out now but it has been since 2012. folks like and tried to hush it up and do a voluntary recall. knowing it butn this is the first time it came out. so he can only have known, right? natalie: yes. he should have known. even before that, he was head of r&d for a couple years before that. francine: what are you most worried about? they're are looking at $18 billion in possible penalties. this could increase because there are probes around the world. the weakest point for volkswagen, they have lost the trust -- had you regain it? natalie: that will be quite difficult. it is in a very slow market.

i think it only makes up 3% of global sales, but it is the trusted they have to regain, especially because they have been advertising their cars for the last couple years. -- it ishave they going to be quite hard to regain that consumer trust. what i think is important is how volkswagen decides to face the challenge and come forward, either with the message of we are trying to hold together or send a clear message. francine: do you think that given this they won't retain their number one spot? natalie: at the moment, it does not seem likely. maybe in due time, depending on how they emerge, perhaps. vote we are looking at the chain right now and it is tumbling down. they can't even sell cars at the moment as well. we have to wait and see.

francine: thank you so much. natalie sauber. , as the interior minister's agree to shuffle 100,000 refugees, the largest migrant camp. ♪

francine: welcome back to "the pulse," live from london.

there are bloomberg's top headlines. an oil producers cutting its output targets for 2017 as it sees the future of low crude prices. they expect to produce 2.6 million barrels, down from a previous forecast of 2.8 million. they also announced a round of investment cuts and project delays to protect its dividends. the u.k. chancellor george osborne has set out the goal to make china its second-largest trading partner by 2025. he also outlined plans for the stock market. >> i want to see our stock markets in london and in shanghai formally connected, with u.k. firms raising funds for chinese estates and chinese firms listing in london. this week we have announced with the chinese government a landmark feasibility study to look at how we could do this. connecting our stock exchanges means more jobs, more

investment, higher living standards in both our countries. a win.l a win for china and a win for britain. minister'su interior have agreed to shelter 100,000 refugees. four nations backed the plan proposed by hungary, the czech republic, slovakia, andrew mania. -- and romania. neighboring countries like turkey, lebanon, and jordan have taken the lions share of those fleeing the civil war. jordan is now host to the middle east. for more, elliott got consensus report. there are syrian refugee camps and then there is this. it home to 130,000 syrian refugees, the numbers coming down to around 80,000, but even so, if this would be -- if this were a city would be the fourth biggest in the country. this is omalik. they are from gutta, the

damascus suburb where 1400 people were killed in a nerve gas attack. there may worry now is making ends meet. my husband was missing in syria for 2.5 years, so i came here to join my mother. i don't regret coming because my son had to be treated for kidney cancer, that we are poor. sometimes we borrow money from the neighbors. staying here is a long-term option. would be a dream to go to europe. elliott: partly it is because europe offers better prospect, partly because jordan is struggling to cope. officially at host about 630,000 syrian refugees, mostly in urban areas. the government's signature figure is 1.5 million, almost a quarter of the population. think about it -- that is like britain taking in 15 million syrians. the human refugee managers say it isn't doing enough. for usas not sufficient to do our work and what we are

seeing now in regards to the people living toward europe is a direct consequence of that. in the last month, they have to cut their support for the 440,000 refugees. they are struggling to find a way to survive in countries. has europe done enough question mark no, not really. to legally work, thousands of refugees are returning to syria, and its raging war, 15 kilometers to the north. for those that stay, life goes on as normally as it can. there are even weddings. a hopeful site in a sometimes hopeless place. elliott gotkine, bloomberg. francine: coming up, everything you need to know for the rest of your trading day. draghi is in the spotlight. ♪

francine: welcome back to "the pulse," live from london. here are bloomberg's top headlines. personnel and work-related e-mails were recovered from a private e-mail server used by hillary clinton during her time as secretary of state, according to a person familiar with the investigation. the uncovering of personal

e-mails that she said had been deleted raises the possibility that correspondence could eventually become public. scientists have announced the discovery of a previously unknown species of dinosaur. is duckbilled hardrosaur the fourth species unique to modern alaska and raises question about how experts view dinosaur physiology. a u.s. federal judge has overturned claims for the song "happy birthday to you," putting the lyrics in the public domain. the original copyright only cover the melody and not the lyrics. $1500 ind have to pay order to use the song in a documentary about its history. for a look at what we are watching, we are joined by hans nichols in berlin. hans, let's start with the w. -- with vw. the ceo faces the executive committee today. hans: he will be meeting with them tonight. we think the meeting is around 5:00.

it is in the small town in lower saxony, close to hanover. i don't mean to give you a geography lesson that it is important. hanover is the seat of government in lower saxony. lower voting share. what the lower saxony premier does on his future is very important. critical, andry in some ways, i am looking at what happens there. francine: interesting. either he knew they cheated and he can survive or they didn't know, and then why didn't he know? mario draghi is also set to speak. you are looking for indications that the already said policies are diverging but they aren't at the moment because everything is on hold.

hans: if that is on hold until october. you listen to the commentary over the last 48 hours -- october as possible. people were expecting mario draghi to stick in front of the european parliament, and there is a lot of speculation that he could increase or hint at the size of more asset purchases. when will you do that question mark no one knows. the data doesn't look great. the pmi data was in great, so that is another thing, cutting for more stimulus and help for the european economy. francine: hans, thank you so much. hans nichols with the vw story. he will be on it very closely. keep it here on bloomberg tv, stay tuned for "surveillance." bloomberg.com,on we will be getting our greatest minds of summit to talk about vw. that is the story that will be leading this week for the german auto industry, and of course what it means for the ceo.

you can follow that online or on the bloomberg terminal. you can follow us on twitter. have a good rest of the day. ♪

announcer: this is "bloomberg surveillance." tom: china economic data disappoints. this is president -- this as president xi discusses

security. market volatility increases the tension seen in currencies. the dollar strengthens. and the president and 15,000 great pope francis of the white house. good morning, everyone. this is bloomberg surveillance, live from our world headquarters in new york. it is wednesday, joining me this morning, vonnie quinn. from vienna, jon ferro. jon:, good morning. jon: good morning to you. i am here in austria to break down what the ecb councilmember thinks about the world right now and how the ecb can respond. tom: it is everything with a punch bowl filled to the brim and you are seeing that in market volatility. right now, a busy morning. let's get to top headlines. here is funny.