dax futures higher. of gains we've had so far. caroline: check out the amount of value that has been added to stocks. here in europe, 300 and 50 billion euros. it is been minas, it is been off all leading the charge as we open up we're already up on the ftse 100. uphave the dax currently just a little bit delayed. it, the opening cause already. i want to show you this particular chart. this is the all country world index.

we have seen a complete rally, just an opportunity and in large part this is in some ways been help by auto prices. there really feeding into the stock momentum. they're trading in the u.s., why? because they all think janet yellen will not pull the trigger in 2015. the federal minutes adding fuel to that fire. see ath 40% of we will rate hike this year. about a frenzy on a friday. signing a letter of intent with businesses to raise its ownership in mrn, this could be raising by 40%. out for the stock

performance drop the day. this is increasing exposure to aluminum. anteresting movie we saw alco missa shares and after hours. this country -- company is getting into a commodity. of the on the back danish trucking company slashing their cash. their spending 1.3 5 billion per share. is selling a temper sent the ipo as it goes ever closer. thank you. we might wrap up a big week on a bit of a hive. the dax is up almost one full percentage point. a big today gain over in china. let's get to shery in hong kong.

shery: asian stocks are heading for the best we can almost four years. it is the best week gives it almost two months. there is speculation that the fed is in a hurry to raise rates, on top of that investors are thinking the chinese government may do more to boost the economy. still has an hour to go. they're reversing yesterday's losses. the nikkei rose despite their retail plunging after they missed earnings estimates. we also saw the asx 100 gaining 1.3% lead by those energy stocks higher because of oil extending gains. korea and taiwan close. malaysia more than 1%, they're one of those take asian energy exporters.

net the buyers in equities, -- in equities buying $19 million this month alone after dumping $3.5 billion in september. more demand for local assets, we are seeing the indian currency heading for a second weekly gain. we are seeing malaysia and heading forrrency the best week in over a decade. jonathan: thank you very much. a huge week for miners and energy. here is what is happening in today's a show. federal delay. when will the fed run out of excuses? grexit, a kind of messy departure. sorry, but that

apology could come to 20 billion euros. federal reserve minutes show a delay increasing risk rates. when will the fed run out of excuses. >> the fed is not in charge of making sure investors make money, they're making sure the's financial stability is in short. that is the concern. >> they look pretty good for the majority of the committee that they will continue to grow at some point this year. our guess is december. it will have an impact on the dollar, but the fed hasn't placed a lot of weight of the impact of foreign policy. >> the exact timing of the move is not decisive for the bank of england. we will take our responsibility

and will determine the timing for the start of the process of monetary policy normalization consistent with the u.k.. >> i am in favor, as soon as it is possible to normalize what we do with monetary policy. us, but is ahead of let's not postpone it. it is the right time. >> the fact is, america's recovery is anemic. i think they did the right thing. jonathan: let's could the investors take now, we're joined by michael metcalf. michael, great to have you with us. i am waiting for the fed minutes. how close were they to hiking? it seems they weren't that close at all. michael: it is slightly confusing, i personally thought they would go in september. after froms we got

the fed to suggest that it was a close call. i think markets were prepped for that last night. the minutes were more or less exactly what the yellen said in the press conference, that they weren't that close them are putting former weight on the international situation. jonathan: put this together with that ugly payroll support on friday and this explosion not about rate hikes but about more stimulus, i have to thank my colleague in the united states, overlaid with the amount of times qe4 gets mentioned. this chart almost a perfect correlation. look at that come every time markets a swing people start talking about qe4. shows -- bernanke mentioned it, there was a problem here where central banks look like the whole market. whenever there is market volatility people assume the reflection trade.

this great rally we've had in risk assets is a inflation trade. their expectations -- there are expectations. they better deliver, markets are very sensitive. they are so sensitive. mandate? is it a on the labor market, and ugly payroll report, but unemployment is still low. is it still a green light coming from the labor market? michael: i think the revisions of a payroll report for a surprise, the fed has been clear. they say look at a range of indicators. it captures a whole range of market indicators. that is still improving. maybe that payroll report was a bit of a blip. it is corroborating evidence

that is why it has been meaningful. in general, the market is pretty good. they have improved more than expected this year. that is it, it is up 5%. that is clear. question, it final needs to be about inflation. that should have perhaps the biggest importance. we did an interview with stanley fischer a couple of months ago who set up we have a soul mandate we would be thinking about doing more at this point. when you look at the inflation dynamic, the amount of time they mention the dollar in the , that concern about inflation not just here and now. michael: they are concerned. we have an interesting view of inflation through online prices that we collect. there was some interesting research done on that that suggests that headline inflation is euro, but if you take energy and the impact of the dollar, it is 2% annual. there is no problem with core

inflation in the u.s.. jonathan: that is a question for the bond market. i will give you that question after the break. up next, domestic grexit of pimco, more on the lawsuit against the company he cofounded after the break.

jonathan: here are bloomberg's top stories. swagen says changing all the

affected vehicles could take years. the company did not make a corporate decision, claiming it was done by a few engineers in germany. >> on behalf of our company, and our colleagues in germany, i would like to offer a sincere volkswagen's use of things to defeat the testing regime. feeling ofn upbeat the u.s. economy was darkened by threatens from abroad. the threats for emerging markets raised risk. speaking of the imf, world bank meeting in peru mark carney said that while the u.s. economy is important, he underlined his independence in from fed policy.

>> the movie is not decisive for the time of the move of the bank of england. we will take our responsibilities and determine the time for the start of the process of monetary policy for normalization consistent with the u.k.. you will struggle to find an economist that think the bank of england will move before the fed. what can you say? welcome back to bloomberg tv, let's get a check on the market. an eight-day winning streak for the ftse 100. it is up 6/10 of 1%. they are really pushing on this week, the best week since 2009. the dax is also higher. the bond market and bond investors for the wrong reasons. a year after bill gross was ousted from the firm he is looking for vindication. his dissatisfaction with the way he left talked with money

management of pimco. >> i did not like how my left. i did not like or care for the aspersions that i might've lost my touch. i don't think i have lost my touch. here 18 hours a day, believe it or not. that speaks to interest, and hopefully performance will speak to confidence. jonathan: now he is suing pimco for do want to million dollars. caroline hyde has more. caroline: this is bill gross trying to rewrite the script that will shortly be a film in the making. this is phenomenal stuff. the land bridge at the pace is using to sue pimco. it is driven by a lost for power, he said. and a desire to improve their own financial position and

reputation. the words he used to hit at some of the executives that he claims colleagues worked together in a cup all c --abal. risk-averse, and the plain-vanilla stuff. part of theed his bonus he was set to get for 2014. that was on track to be $254 million. he says he's going to give it to charity. it is really underlining the fact that this is about reputation, not money. >> as bill has said, and i am repeating, to the extent he gets any compensation from this

lawsuit it is going to charity. now he just wants to tell his story because he thinks his view of facts and his understanding has been misrepresented. caroline: record amounts of money coming out of what was the acus money-management and the top mutual fund in the world. their response of far is saying and ouruit has no merit legal team will be responding in court in due cause. so says a spokesperson for pimco. the clashes have been all over the media. issue is that this is not about the clients. too much focus on money and compensation and the potentially risk-taking in the fighting at

the top. caroline hyde, thank you very much. let's welcome back in michael metcalf. michael, i will not ask you about the lawsuit. i don't expect a response, but i will ask it about the series financial management story that underpins this story. bill gross has a simple focus on a specific kind of security. in your view, what is the right approach? michael: there isn't one, but what we are learning is the difficulty of the environment. we are talking about lower for longer, and in developed markets that is a real challenge to get the returns that investors demand.

they need to manage the currency and a more sophisticated way to go into emerging markets. there is a lot of pressure to hunt for yield. these pressures -- in part, they could be cyclical. they could get a lot worse. jonathan: the chair, and men well known in the bond market got it dead right to last year. percentr, one in half thereabouts, what kind of world would you have to see to make a similar call? michael: i think it is a very different world from what our central projection is. we have a bit of a reflection rally right now. 1.5%, you're talking global recession, global growth and maybe 1%.

makesatively, the fed massive policy mistakes and rates are at 2% in next year and the curve is completely reverted. that they telling us want to make that kind of mistake. that is what we learn. jonathan: final question, pimco saying the worst is over for the commodity market. i ask this question all week, going into 2016, the energy downward pressure on headline inflation will start dropping out pretty soon. i don't hear many people talking about it and what it means for the bond market. what is your view, michael? michael: the effects of start now. is a really good chance that the inflation readings in terms of headline inflation this is the base. we thought it was the base earlier in the year. the really steep falls and oil prices came right at the end of

the year. this is the interesting thing in terms of inflation. that is right for here, here is the risk for the rally this week. they don't respond to that sweet spot be have been deflation right now because it will go away. it will go away and inflation will be higher. jonathan: a big thing for the end of this year. michael metcalf, thank you very much for joining us this morning. up next, a sorry affair, vw's top executive apologizing but says it was not a companywide conspiracy. ♪

volkswagen's u.s. ceo says a missions cheating was something individuals that. hans nichols is in berlin. an individual policy, not a companywide policy. what else to the have to say? hans: he said sorry a lot, he was trying to impress that he was embarrassed this happened was company. he vacillated sometimes talking about how angry he was. but he also said there was not an easy solution and they will take a long time to fix this. he did not play out a timeline

just said they are still working on it and there was not a simple software solution. >> roughly 500,000 cards are affected, around 430,000 cars are the gen one which were the very early ones that were started in 2009. that ase cars we believe software only solution will not be possible because in order to be quite frank if it would've been possible they would've it met the standards in the first place. hans: just moments ago is spokesperson put out a statement saying they are looking into whether or not the software is illegal in the european union. what the bigger engines there may be a software fix. for the 1.8 and the 1.6 it is more complicated. jonathan: hans, it isn't all bad news is it?

they had a good month in september. has always been a profit center for the company. in the back half, the volkswagen scandal was out so you can't discount it. u.s. sales up 16.2%, china up to %. -- 2.9 the fact that china is growing, that could be a positive sign. hans daigle's in berlin, thank you very much. what a week it has been in the ftse 100. wasound up the week that for the mining industry after the break. 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.

jonathan: good morning and welcome back to "on the move," 100 on an eight-day winning streak. the longest winning streak since january. mining is having its biggest week since 2009. i will talk about that in just a moment. very quickly, a dollar heading for the worst week since june. a federal reserve seems nervous about hiking interest rates and a massive week for ems, the best sense 2009. a stronger indonesian currency,

quite a week for emerging-market assets. let's go to caroline hyde for the stocks to watch. the biggest aluminum producer, alcoa, missed estimates. he with more is caroline hyde. caroline: big slump in terms of profitability. upon us, ouron is cobalt always kicks it off but it was a gloomy start. sales down by 11%. itnwhile, the prophet we saw seems it is half of what analysts had been expecting. no wonder we saw shares dropped 4% in after-hours trading. the reason is the glut that we are seeing currently in aluminum is all about china. this is the issue, china has been ramping up its supply. supply up 28%, down go the prices when you look at

aluminum. half of where they were in 2008. they're down by 20% so far this year. up, butld a creep back the supply and the glut is endless. this is what the pressure has been building on the likes of alcoa which is the number one producer of aluminum in the united states. it is taking drastic action. they are split in the company in two. has been going really well for the business. he has been focusing on new areas of the business, meanwhile the legacy part of the mining business will be brought into two it could be investment great aimed at the manufacturing operations. meanwhile, we're likely to see a junk rating for the legacy business. it does seem to be winning some

big contracts particularly in the new areas. the past week we have had 2 in termsollars worth of contracts. one coming in from lockheed martin, we understand. meanwhile, airbus will need high-tech material. i don't know my planes nearly enough, but the area is clear. the pipeline is clear. now they just need to fix those prices. hyde, thankroline you very much. we welcome and ben davis, mining analysts. the ftse 350 mining index, first of all good morning, and what a week. i wonder if anything has changed fundamentally or is this just a relief rally? : we would it as a relief

rally. the fundamentals have not changed for us. they will continue to deteriorate in the key commodities including copper. ore, it is your big cord. is anyone prepared for $30 iron ore? talk to me about the commodity, what drives it down there? : we still have a lot of lagging supply additions coming into the market. this month we have roy hill coming online, that will be 50 million tons starting in october. dxt year, we have s 11 another 90 million tons that'll wrap up over time. that is a huge amount of capacity additions which will be have to be displaced. realistically, we could see demanded down next year. jonathan: let's get to the pain factor, a straightforward

strategy. we want to maintain market share, we will maintain volume. ok with crisis where they are now, with prices down there's that change? ben: i don't think it does. this is been about five years in the making. they will keep following through with their supply additions and see their producers come to the market. painful, you need prices to go a lot lower to get out of that high cost whether it is anglo-american or south african. jonathan: they need to be somewhere the mining sector, i wonder if that changes. ben: with mining i would not recommend any places to hide on a permanent basis.

you might have some tactical relief like we're seeing today. the dividend coverage will be continued to be called into question. certainly on spot prices that will be a shortfall in paying. jonathan: i will sit the obvious here and bring up glencore versus copper and show the audience how correlated the glencore stock is to the price of copper. then i think about another story and go further left field. vw, and what it means for the platinum industry. if ipo platinum against some of that it would not add up. what is going on with platinum? ben: it is strange, it is been on a steady decline for a number of years. the past few weeks there has been excitement for markets. americans have managed to agree

to terms to sell their platinum accents -- assets. is dragging the likes of aluminum up as well even though at current prices it is effectively bust. me but thealk to significance of the bw story. ben: it is not absolutely clear what will be the and result of this. how much that will be going is the catalyst. that is 40% of platinum demand. if that did get eroded, it could be in trouble. that would be a shift to palladium, but they dig up less palladium in the new platinum. jonathan: a quick word on cutting supplies, glencore cutting zinc up by 8.6% this morning. i wonder if this is the

beginning of a cycle of cuts, cuts, cuts that we should of seen a couple of years ago. n: glencore is trying to make a statement here. clearly, the aim of this was the rise in zinc. whether other market participants will be out it probably just hope glencore doesn't -- jonathan: you said there was nowhere to hide, but if you had to, where would you go? ben: probably to the diamond stocks. middle china will eventually recover from the shocks they have had and demand should get back there sometime in the future. jonathan: thank you very much for joining us this morning. up next, could europe's migrant crisis be about to claim its first political scalp. ♪

jonathan: welcome back in good morning here are the top stories. china slowing growth and the threat to emerging markets raised risk that the dollar concerned them further. speaking of the imf, a meeting in peru. mark carney said that while the

state of the u.s. economy is important to everybody, he proclaimed his independence from fed policy. >> the exact timing of the fed moves is not decisive for the moves of the bank of england. we will determine the timing for the start of the process of monetary policy normalization consistent with the u.k.. jonathan: bill gross is suing pimco after his departure last year. he said the company he cofounded pushed him out to get his hands -- their hands on his bonus. he wants to expose what he calls dishonest behavior. welcome back to bloomberg tv, it is friday morning what a week it has been. up now heading to the biggest week of gains since 2011. the dax also high this morning. on the screen a huge week for the ftse 350 mining index.

let's take a look with caroline hyde. bollard: let's dig into and this is zinc and copper doing really well the best in six years since 2009. why? glencore action has been raining in their output of zinc. they will cut to their output therefore we are seeing supply pushing downward. the price is coming back up for zinc. meanwhile, dsv so back should this morning. people like the fact that it w ill be resurrecting a deal that they dropped last year. now they are resurrecting it and ti, a logisticsu powerhouse.

the danish company buying into america, the shareholders like it. company,n insurance there was a concern about its profitability. net profit being hurt by one off events and investment loss. -- thatet hit overall was added to the fact that had negative investments and barclays is doing that as well. they were higher than expected claims. caroline, thank you very much. vienna heads to the polls this weekend. could it social democratic mayor be the first politician in europe to be toppled by the refugee crisis? chart of the joined us on the phone from austria. talk me through how the migrant

crisis has affected the election. jonathan: what you are seeing is basically one crisis bleeding through into another. we have the financial crisis into a political crisis, stagnating rages -- wages. the refugee crisis we are seeing a doubling of the silent applications through the first eight months of the year. mobilization of right-wing populists were challenging social democratic rule stop jonathan: the backlash, i want to talk to you about that. is it a recent phenomenon? does it have to deal with these phenomenons, or does it always deal with the political agenda in austria? grownan: the backlash has over the last several elections. been a transit zone

for refugees. what is different now is that refugees want to stay in austria. what you are seeing, even though ofnna is comprised of 40% people who coming from a migrant background -- this sudden influx and the sheer numbers are creating fear that people will entering theime employment market in finding an affordable place to live. one issue is seeping into the other. jonathan: great to have you with us, joining us from the government's team in vienna. talking about politics, and a few hours we find out who won peace pr -- nobel ize. angela merkel could pick up the prize. hans, what might be good for angela merkel not so good for

her political career. hans: it is because what she would get it for, that his -- is her open arms approach to the refugee crisis. her political sending in germany has taken a battering. she was at 75% a few months ago, she is down to 47% now. 3-1, all of that is speculation. the only people they know this is the five members of the norwegian committee. if he does get it will bring attention in germany to what has been not an unpopular position but one on the refugees that internally within her own party is getting a harsh look. there was considerable concern, we should run through some of the other names. no one knows whether merkel is close to it. the other names include eric

priest helping with the gps coordinates to the people aren't stranded. there is pope francis, there is ukwegwe who is helping victims in this country. of candidatest out there. we have to wait until an hour and 13 minutes by my clock we will know. if it is merkel, it will cast some tension on something that is complicated. i want to expand of the politics in germany. she risked so much in her reaction to the refugee crisis. the accusation that she just follows the mood of the electorate. there's that still hold? that is not quite fair on

the refugee crisis because she has been in front of her own party and the coalition party. backlash is coming because those parties are now saying she has gone too far. more importantly, she did not anticipate the consequences. her critics are saying that she did not anticipate that would accelerate the arrival or the pace of new arrivals. that is by the latest figures from the german government is that 1.5 million applicants -- last year they had 400,000 applicants. jonathan: hans nichols, a remarkable political story. up next, we wrap up all the market action. it is all about commodities. details the next.

jonathan: welcome back to bloomberg tv. a huge week for markets once again. glencore seems to be a constant in this segment. some this story moves on monday. it's hong kong listing surged more than 70% at one point. the mining index is set for its oft week since the start

2009. keeping it in commodities, wti broke through for the first time since july of this week. emerging market currencies are heading for their biggest weekly gain in over six years. investors bet that the fed will keep rates low for longer. check out the u.s. dollar versus the indonesian currency. it's best week against the dollar since 2001. a big relief rally in emerging markets. what will happen with the fed in the u.s. dollar, a reaction to an ugly payroll number and the federal reserve suggests the global risk is what some of our guests and bloomberg tv had to say. not the charge of making sure investors make money. leads toof money instability, that is the

concern. >> our expectation is that they feel pretty good for the majority and will continue to go at some point this year. our guess is more december. it will have an impact on the daughter. complex when an authority says we we data dependent an hour to drivers will be unemployment and inflation, what we say is that inflation numbers have to be solid. we have to see them. there is not much on that right now. to normalize what we do in monetary policy. us, but theahead of small step is there. anemic, irecovery is think the did the right thing

not to raise interest rates. jonathan: that is almost it for this hour, manus cranny follows it up. he joins us now. the fed, it did not look like there with a close to hiking at all. high, how didr is they get out of this mess at the one-two hike before the end of the year? the market is not expecting it. manus: they avoided a policy misstep. it is a good thing they did not go -- it is just phenomenal how the markets are grasping for the next six. that is what the start -- it is been a blinding starts to q4. you look at six days in a row up, the basic resources up 25% the most since 2008.

pimco might be calling the bottom of the market, but if you go further down you will see that goldman sachs is reaffirming their bearish view in terms of the downturn from china. they are trying to predict the future, but risk assets like the fact that the fed doesn't hold. the market likes it, make hey, six months, he is walking off. us, we have james bevan. jonathan: manus cranny, thank you very much. in the meantime, i am on twitter. what a week it has been.

the ftse on an eight-day winning streak. best of luck for the rest of the trading day. ♪

manus: the china effect. minutes from the federal reserves the september meeting show threats from abroad weighed on the decision not to raise rates. the imf managing director says inflation and wages aren't there yet. either inflation numbers hae solid. we have to see them, and for the moment, there is not much on that horizon, neither on inflation nor on wages. $2.5 trillion rally continues. reload to riskier assets, betting a fed won't rush to raise rates. commodities come back. oil surges