guy:y: glenn court suspended. suspended. still my fisher says a rate hike is still a possibility. announce today. we think, and what could be the largest tech merger ever. welcome to "countdown." i am guy johnson. let's me run you through what we have learned over the weekend

and how that will work its way into the week. asia is a flying at the moment. shanghai is at the front on the moment. the asian market is delivering, but what does that based on? we think it could be based on a lot of chat around the market. we could be saying further stimulus from beijing. it is interesting because you can compare and contrast that with what is going on in the west right now. you can see on the shanghai composite, a nice move this morning. we are up 3.5%. let me show you what is happening right now with u.s. features. what we see at the moment is a negative story. let's focus and a p are. s&p tradingw and negative. the are not down by much.

we have a lot coming up throughout the day. this is what stanley fischer has said overnight. participants myself -- and is a pay to that achieving these conditions would entail an initial increase in the federal funds rate later this year. he cannot take december off the table. we will get a lot of commentary throughout the rest of the day. charles evans and lyle are talking late into today. into thatoing on story as well. the asian markets are fascinating. glencore is suspended. we will get more on that at 7:00. the asian markets are on the

front foot. let's get to david ingles and get that story. david: good morning. you mentioned expectations. that being said, we are looking at two things. let's get to the emerging-market currencies here. the fed before the end of the year, mike jack rates up. -- might jack rates up. there are two sector groups. consumer goods and health care were up, roughly speaking. keep in mind, japan markets are closed today. roughly speaking, we are up ofugh to offset the weakness the australian session. the big market story of the day. we are coming up to the lunch

break. we do see strength coming off of that break. tom came out, he is a veteran technical analyst. he was able to correctly predict this drop. and of course, it rallies. he came out and spoke to bloomberg and what he is saying is that the shanghai composite may actually rally to 41 hundredths before the end of the year, before dropping to 21 hundredths. very quickly, the malaysian ringgit alluded to this. let me get to the one-day charge. some risk onseeing trade when it comes to the equity market, it is these same stories across the currency states. we see weakness here.

back to you. guy: thank you very much. we just heard chinese stocks are rallying today on expectation that we make it more stimulus down the way. we are watching what is happening with the fed. a long with the timing of the rate decision. the discussion of the economy is dominating discussions. spoke to oneua finance minister with a china'sarly keen eye on finance minister. >> when it comes to china and an australian point of view, obviously, china is our most important trade relationship. that is very strong growth by international standards. we are very supportive of the withny of chinese efforts

the move from investment driven growth to more sustainable domestic consumption. we understand there is a process to go through. , goingoptimistic forward. guy: the australian finance minister writes, it will be a very busy week this week in terms of the data we will be getting. consumer prices come out wednesday. in the u k, inflation day is u.s.ay and the industrial production is friday. jpmorgan, bank of america, goldman sachs, and citi all this week. it is a busy week. mma story.about the

we understand they are planning to pay $30 a share. caroline hyde is here with more details. be aine: this could record-breaking deal for the tech sector. some $33 a share. but dig into the details. we could see an 18% premium on emc trade. that is in excess of $60 billion. 25 billions -- $25 billion of cash. this is a virtualization software company. holder, a biggest majority shareholder in vmware. toy will give protections the likes of emc stockholders. they will it short that they get a certain price point if there

is disruption and the market. stills what they are negotiating. this is what is taking them long into the sunday evening. the boards of these companies. mgnt seeking the emc deal. let's look at what is in it for dell. the privately owned company taken private by silver lake and michael dell himself. this is what emc really is. it is about driving in to storing and managing data, making it more lucrative. diversifying it from just a away from the pc market. they will dig into that more lucrative era of enterprise. that is where the money is. create one of the biggest providers of computing products.

this is what we have got to keep a keen watch on. we will get the detail of the price. the deal is in the works and has been for the past week. dell will need cash to pump into this to be able to pay the $25 in cash for the company. high-yield limitations. the high yields markets have started to slow off. on the banks. and then sell that to high-yield debt holders. will that be a concern for the market? bonds of emc have been dropping. --dholders are buried about are worried about whether this will put them lower in the food chain. they want to sell more bonds. will they get lower down in the food chain? will they ranked lower to the new that? this is what is dropping emc bonds of the moment.

meanwhile, reports and other companies right now, in other newspapers, there could be a go -shop provision. will emc be able to put themselves out. can they go to the likes of hewlett-packard? could it drives that $33 a share even higher? is that what elliott management wants? there are many things to work out, but this could be a record-breaking deal. guy: caroline, thank you very much. they marks the start of london metal exchange. percent so far this year. the industry players are gathering here in london at the conference. the copper andth coal ceo. he said copper prices will drop further. if they do so, they are playing

a dangerous game. >> we are not trading on fundamentals. atre are a lot of shots selling copper. remember, they decided to change the rules and relation to the equity markets where people were no longer authorized to short sell. therefore, we have a series of players who have used copper as a property for the chinese economy. today, we are not give the price resistance. are, ine prices relation to the cost curve. of thatbring you more interview later on the program. what else do we have coming up on "countdown?" we think we will get an announcement on acid sales at glencore.

we will break that story down for you when we come back. ♪

guy: 6:1 five in london. good morning, cure of the stories you need to know. stanley fischer says the economy might be strong enough to merit a rate increase. expected to announce today, regarding emc. this will be the largest ever technology merger. emc alone has a market capitalization of $53 billion. the trading of glencore stocks have been halted in hong kong,

pending announcement regarding assett stocks. glencore has not identified which assets might go yet. copper minesnd are in reasonably good bet. asia has the mental and mining reporter talking. david, what has it said regarding the trading in hong kong thus far? david: as you said, glencore has not said a great deal yet. we do know it has halted its stock in hong kong trading ahead of announcement of details australia.assets in in chile, they are related to a proposed asset. last month glencore outlined its

debt reduction plan. it would remove to dog -- $2 billion from its sales. there are potential mental streaming deals. glencore has assets in australia. it also produced its precious metals and minds in south america and australia. both of those options appear on the table. can you explain what a streaming deal is? we may have to talk about this later in the day. david: sure. theaming deals are aimed at sale forward part of its production. tech resources in north america have announced in the last couple weeks streaming deals. a company to reduce

the debt on its balance sheet. companies areese looking to shore up their balance sheets. that i guess, is the motivation for glencore. we know there are buyers out there in the market looking to do these kinds of transactions. it would look to be a good fit at this point. guy: thank you for your coverage. the commodities theme today. today marks the start of five days of events at the london metal exchange, ahead of the conference. jeans-sebastian. we asked him about china, which of course, is the world's largest copper consumer. you said, china accounts for 40% of the copper consumption.

remember, there were steel mines in mongolia. we have a $2 million copper trade with china. but i look at my customers in china, do they have issues in raising the credit? the business we do in china is based on credit. yes when you're ago. we were very careful. but today, i am not concerned. i believe that the chinese government has the will and has the financial means to sort of the issue, if there was an issue. the past, look at they have a track record of doing so. is,last piece of the puzzle pmi and so and so forth.

look at thet weeks, metrics. they are moving in the right direction. when i look atn, my ability to place a product, do i have issues today? the answer is, absolutely not. one of the key drivers for the copper consumption is power and industry. yes, today china is a very important customer. up.ill pick it will take, as you said, 10 years down the road or 20 years down the road. i'm not concerned about copper. an-sebastien jacques joining us from rio there.

they have the first party last night in london. chief energy correspondent was of course, there. glencore is dominating. >> > absolutely. there are mostly about two things. one, because of the cuts with copper and zinc. a lot of the traders i have already spoken with you last they are saying getting letters of credit and getting the customers in china to buy copper. guy: it is getting increasingly complicated. what is the expectation? what is the view of where things go at the moment? will that have a meaningful impact on those predictions? where do prices go from here? >> i think when you look at side you have

glencore. in on the other, they are trying to refinance the market. commodity prices are going to go lower. the dollar is going to strengthen. in china wilma perform. everyone in the metals industry is asked, will you agree with glencore? yesterday of the parties, most of the parse of the tents arrived in london -- most of the participants arrived in london. can i say that? is it on demand expectations? the market set up at the moment is really quite curious. if you think there is going to be a chinese intervention or something is going to happen, and the possibility of a squeeze and the assets is definitely

there. how much do i need to think about fundamentals? how much do i need to think about how the market set up is working at the moment? >> the look at copper, we have a surplus. the commodities including oil, we have a surplus. the market will undo the what is happening next -- will anticipate what is happening next year. is, we haveing already more than an idea of the companies reacting in the investment plans to the low commodity prices. companies have cut with production. we have seen this with glencore. as a production cuts. -- asset production cuts. it is very much, if you take a snapshot of the situation, today, you can you are looking at how the market is going to be looking into the first quarter and first half of next year,

then the situation potentially could improve. you could begin to think the current prices are at lows. guy: does the week have a different five? >> -- have a different vibe? >> i think there are two things very different. one is china. potential.s a remote people are worried china could go into a recession. but what of beijing lost control of the situation and we go into a recession next year? i have never seen the industry talking so openly about this. have a veryaders bad first half of the year. it is a complicated situation in the alumina market. -- aluminum market. turnaroundn a lot of

, a of traders moving. some of them are leaving one company for another. guy: what are the implications of the latter? the market is in flux right now as you start to see people move around. there is a story in asia this morning. when you start to see that kind of volatility inside businesses. >> i tend to think that when we see this kind of movement, trending jobs, creating new businesses, companies cutting production, that is the mark of the bottom. when people are losing their jobs, that is when they rally. l&e, weu look at the have probably already seen below. the lows were probably already there. it feels like we are worried

about what is going on. maybe what you are missing is the recovery. guy: thank you very much. bloomberg's chief energy correspondent. coming up, a guest who describes the market's environment is a world turned upon its head. the chief investment officer for the u.k. and eastern europe. here after the break. london metal exchange week, always fantastic. and industry in flux at the moment. what does that tell us? right now, we are pointed at a negative open. they are 30 minutes away from finding out how europe will open. we think it will be a negative open as well. commodities are front and center today. when car is a company these guys will be thinking about. -- glencore is a company these guys will be thinking about.

we will be back in a couple minutes. ♪

guy: it is 6:30 in london. 7:30 in brussels. stanley fischer says the u.s. economy may be strong enough to merit an interest rate increase by the end of the year. but he cautioned that policymakers are monitoring the job scope and international develops as they decide on the precise timing of the liftoff. the largest ever tech merger in history. this is pending the $37 billion

deal. this is currently the biggest at $3 billion. 43 pounds a share. that is still the low the target price. -- below the target price. agree onompanies must a deal. wednesday,o that by or the transaction will fall apart. what do we need to know about the markets? caroline hyde has the details. caroline: interesting stuff going in the markets. looking at china, we are on a roll. they are excluding japan at the moment. these chineseat stock rally. we are driving higher, more than 3.7% higher.

that is for the past three days. the shanghai composite is working today. it is putting in heavy lifting. this is the highest close in three weeks. the reason there is so much buoyancy and the chinese market is based on stimulus. steps the the government might take. still seegly, we do perhaps, a little bit of weight put on futures in the united states. put int of the optimism china, when you are looking at the west stocks, we are looking at a down day because of what stanley fischer has been saying. we could see a rate hike this year. the dollar is currently continuing its way downward.

percentwn by 8/10 of a when you're looking at the dollar. it is the lowest in almost one year. the least confident that the dollar will strengthen, despite that talk from stanley fischer. it seems the fx market is not buying this talk. we could see a rate hike as soon as this year. it is interesting that the dollar continues to weaken. one asset classes moving all of is the turkisht lira. it is dropping against the dollar. the turkish lira is losing value at the moment. that is linked into those tragic events that happened over the weekend, with the deadly terror attack. guy: thank you. 97 people killed, the worst attack in the country. let's go to elliott who has more.

still no official claims as to who carried out the attack. the government is pointing the finger. the terrorist groups in turkey are the prime suspects. let's not forget the turkish government is waging a battle on two fronts, against islamic states that is over the borders anin i raq and syria. at the same time, as it joins the fray against islamic states, it relaunched its battle with the pkk. within hours, the turkish air force carried out strikes against pkk positions. also within hours, the cleared and international cease-fire to the run ups of the november 1

elections. there are reports coming out of turkey this morning of a city and in the main the kurdish southeast having been killed by the pkk. some very tense times in turkey. some in the company -- in the country are blaming the government for the very least at not preventing this attack. they had some kind of hand in this, to try and sway the upcoming elections. the fact of the matter is, we do not know for sure who carried out these deadly attacks over the weekend. we do know, there is a political situation in turkey. we have got elections coming up again in november. presumably, this will have a meaningful impact on that set up as well. it is hard to say what impact it will have. that depends on developments here on in. the intact suggests the results

of the november 1 election will be similar to the one we had in june. in other words, deadlock. of winningbe short an absolute majority. it will have to engage in coalition talks. that will be very tough in the wake of these attacks in ankara. the crisis summit with the onlyition leaders will have 2 out of 3. one declined. we of other reports coming out today saying that last night, assailants smashed windows at a party office in east send bowl. this is in the wake of those attacks.

the turkish lira is declining this morning as well. this is still a very human story. turkey is officially engaged in three days of mourning. about 20 people were killed in the deadliest attack there in history. guy: thank you very much indeed. is really caught between a rock and a hard place. this is a massive factor in how the markets are viewing it. d is very much in the forefront of many people's minds. the imf bank meeting yesterday. he for it closed, francine lacqua sat down with the former boss.b what the implications of the

rate hike might be. >> if and when. but the question is when. my opinion,, in considered as a good sign. that they know that the inflation will go back to what is considered the precondition. it is good news. what about the interest rate hike? >> they will make the decision and it is up to them. my own understanding is we are in a world that is extremely complex, multidimensional, and also, a multilayered world. it is not absurd that the central rings are moving -- the

central banks are moving rates as a result. if we wait for an absolutely normal period when you have a cycle that is very, very nice, say, up to ad point. we are not in that universe. we are in a much more complex universe. the universe where whatever the theyoes, in my opinion, will continue to assuage rates. what ever you do, whatever is necessary at each period of time taking it into account, the anti-inflation expectation. guy: francine spoke to jean-claude.

let's talk to michael full of ben, the chief investment sullivan,r -- michael the chief investment officer for eastern uk. becoming slightly more optimistic about what is happening in the emerging markets and the energy story. michael: your reaction to what has been going on in markets in the past couple months depends. you are probably a little bit more cautious. this is largely a portfolio crisis. the volatility and markets come from a range in factors. the increased volatility, for example. we are noticing the opposite of that. last week was almost the opposite of what we saw in august. there is a very germanic impact on prices. in terms of what we are doing,

we were overall neutral on equities. a lot of value has emerged in commodities. we were underweight since april. now, we are now overweight energies. we are trying to avoid making very big moves in a very volatile marketplace. more value emerges and you get momentum, adding to specific strategies. market, if this is a intra-market effect what we are thing right now, where is the biggest pricing that exists? they were aggressively underweight. see this rolling back. how much more is there to do to get people up to the correct weight as you would see it on energy? rising in argy is

pretty steadfast manner. volatility is being underpriced. we had a period without a 10% correction in the s&p. qe smothered volatility. levels intouilt low their risk models. in emerging markets, we have not had many emerging market crises in the past 10 years. that is now being repriced as we lack ofsome cases, the the properties in the emerging markets come through. at 52.9%. trading

we are beginning to come off it now. we still don't know what iranian oil's will look like towards the end of the year. or what supply we will see. we don't fully understand the implications of those covenants expiring. he was production is definitely down. there is a lot of this in the old market right now. let's say there are a lot of asking, where will the market be again? prices: i believe that until they cause pain and cause people to change their behavior. you've seen this large in the mining sector right now. also, the same in energy. you have the big oil producers cutting back investments. companies,-producing those centered around opec, are feeling the pain on a fiscal basis. a lot of talk within those c

ompanies. it is more stable than it is no t. are many say oil prices likely to remain cap in the fourth quarter. michael will stay with us. we have plenty more to talk to him about. coming up on "countdown," the iconic race towards the ipo. we're looking at a man who will be made a billionaire after this. ferrari is after the break. ♪

guy: 6:47 in london and 7:47 in harris. the federal reserve chair stanley fischer says there may be an increase by the end of the year. he caution policymakers are

monitoring job growth and international development. they decide the precise timing of the liftoff. it will be the largest ever tech merger. it will be $37 billion in total. emc alone has a market cap of $53 billion. eu launches under the banner, britain is stronger in europe. it will be unpatriotic for br itain under the training block. -- trading block. tech.talk

recent has exploded in years. countriesion dollar have been produced in the process -- companies have been produced. elliott has more. elliott: i am joined by the chief business officer. thank you for joining me. you will get better acquainted with your recent purchase. consumers flag dodgy charges. how does that fit in with day today? >> it is a perfect fit, actually. we have this moment where you get your money in the bank. then, some of the relationship afterwards is when buyers pay

their bills. we have a conversation and get to know them better. product, want another they usually go look somewhere else. the coming of together is it creates a lot of engagement and provides value to the borrowers. we want to keep the conversation with the product. you are becoming more like a bank. to enable and is advance financial well-being. you can control your credit and identity. it is a perfect fit for us. we would like to enhance and grow the umbrella of servitude to the customers. not being a bank is difficult. you bought a startup. it traded at $60 million

overall. initial happening? >> we have money in the bank from the last trade. w ae are breaking even. it is always an option. we can do that whenever we want to, but we don't have media plans. when you look at media coverage, it is back to where it started. we think we took a different path and are focusing on the consumers. they are doing small business loans, etc. there is a mission and a focus. we are obviously looking at their performance as well. their performance so far is not what makes us think whether we are going to go public or not. it is just our own plans and

execution will determine that. are they friendly? are they enemies? what are they? >> our conversation with the banks is very involved and engaged. round, we had five banks participating. we see a lot of strategic value in banks, and vice versa. we will probably hear more about banks collaborating. we refer borrowers to prosper. things are starting to invest in capital. there is a lot of play here, rather than enemies or frenemies, for that matter. joiott: thank you for ining us.

back to you. right, let's change gears. let's talk about ferrari, racing toward the ipo. we are talking about a man who is about to become very much richer. >> the billionaires have been able to put an evaluation on him. it is mostly from his stake in the company. the ipo is coming. he is probably going to do very well. interesting banks story. anyone with the name will have an interesting take story. he did not even think about getting in that race. >> they discouraged him from racing. he is the only surviving son.

guy: is there anyone who will do well out of this as well? it will be interesting to see how the shares trade? this is a luxury plan. year are raising 15% a for the past five years. even with the downtrend, they are still doing well. guy: do they know or have indian tatian of how going -- have any indication of how going public will change things? >> the big question is how they will change or go with the brand? they are doing merchandise. guy: production lent it down to make it more exclusive. have they achieved that? it is going to be interesting. influence is a little

less, it will be interesting to see how it works. act, will be a balancing and how they continue to grow and expand, but keep that exclusivity. that will be the challenge for them. guy: would you be interested in a bit of ferrari? michael: i think it is interesting. they have an old world manufacturing base. they are positioning it as a luxury good. ofn thinking about how some the football companies have traded in the recent years. interested and how the business world developed. a lot of people are watching ferrari. they were going to use this money and try to develop other brands.

this is good news. >> absolutely. they want to get back into the u.s.. which they want. and that is a very difficult thing to do. they are going to redevelop maserati and jeep. they will bring some glory back to those brands. i am certain you cannot buy a diesel ferrari, but shy mabye.s, twice that is where the investment has to go somewhere down the road. electric. electric cars. and that is expensive. thank you so much. stay with us. we are a couple minutes away on getting an idea of how the european markets will open.

we are a couple minutes away ncore making a fairly big announcement. when we come back, we will watch that stock carefully. ♪

guy: glencore will start selling. it has announced it will start making asset sales. has said a rate hike this year is still a possibility. and delivering on the dow. we think today could be the largest ever tech merger. you are watching "countdown." i am guy johnson.

we have breaking news from glencore. caroline: glencore is indeed looking to sell assets in australia and chile. this is as glencore struggles to pay down $10 billion of debt. received already expressions of interest in some purchases. this will allow potentially interested buyers to buy potentially both of the assets in australia and chile, or indeed separately. there have been a number of unsolicited expressions of interest. the first in chile and go bar in australia. lows. it reach phenomenal losing at 70% at one point. they are dropping more than 30% a day when it came to glencore stocks. it has recovered a lot of those

losses as the company manages to shore up its balance sheet and managed to start disposing assets. this time, the breaking news, the reason we saw shares suspending, trading in asia trade is because there was an announcement when it comes to their copper assets in australia and in chile. they are already receiving interest. news withing glencore. we will be returning to this. we think european equities will open in just under one hour from now. a fairly flat open this morning. asia is flying at the moment. europe looks like it will open flat. euro stocks just at the flat level. dax is up a touch.

nevertheless, a very flat open from what was a very cracking week last week for european exports. asia is up at the moment. west look like they will open a. let's find out what is driving the europe story. a very solidn start to the trading. this is being led on the shanghai composite. it is up i 3%, adding to those very impressive gains we saw across the asian region at the end of last week. the number of stocks are hitting that mark. many of the property stocks are meeting again. there has been commentary that it will increase fiscal support for shantytown redevelopment. that is driving a lot of the property stocks in china. is up another 1%.

japan closed today, taking momentum out of the region. we did see australia close lower today, down by 9/10 of 1%. the picture of the asia-pacific index. you can see health care is getting a little bit of a switch out as consumer services. there has been good buying in the telcos and the miners. the chinese property stocks i was talking about her here. we have strong numbers coming through. this suggests that spending is still happening in china. that is a good overall sign. capital is leading the games and industrials are doing incredibly well in china. one thing we are seeing investors switch out of is investing markets. we have u.s. and the equity

features as well. stanley fischer said last week there is a potential for rates to rise by the end of the year in the u.s.. auities in the u.s. also got visit last week. the ringgit is down by 1% after having a stellar week at the end of last week. guy: asian markets at the front. u.s. and european equities look like they'll open more caches lee. we have a flat open here in europe, putting us toward a flat open in the u.s. as well. we will see that in 55 minutes time. egarding the news is r glencore. when you are thinking about the world, how important is glencore to your thinking? positioned into the

physical space and the trading side of things. when you think about the influences about what will happen, is it immaterial part of the equation? twicel: glencore is worth of what it was, but half of what it was worth three months ago. that shows the volatility. it are several pressure points in the economy. the second you think about it in terms of how they open up opportunities, we have recently taken investment grade neutrals. they are getting more stretch. these individual cases will open up other opportunities. this willories like , dropping into panic

for the first time since 2011. pointends to be a decent at which to pick up some risk in equities. guy: let's try and think about where commodities go. goldman sachs things they go south and glencore thinks they go north. how important is the fed in which way we swing on that? months, in the last two we have seen the magic of the fed. we see the fed run into communication problems. a couple of things happened. the former head of fed communications are confusing. are giving very

different views. that own views, versus the views of the fed in that is not helping. fed press conference and the speech at amherst where she really was not clear. the market is now just a backing off and placing a big premium on the fed. numbers are taking the fed out of the picture. it is less likely the fed will be aggressive in coming months. they maybe we'll will get a rise in december. for should lock in the data credibility. for commodities and markets, a lot of the volatility and shakeup in positions is already in place. ,uy: is the fed less important or is listening to the fed less important? michael: i think listening to

the fed, i think is less important. a scale of volatility and scale of positions we have seen in the past two months means a lot of people are now protected for an environment where the fed will raise rates. equity markets and look at the unwind of positions in the commodity people are really set up now. the market is much less sensitive when it comes to a fed rate increase. guy: are we underestimating, rb overthinking the fed -- are we under thinking the fed? or are we overthinking? : she was very polite wenches spoke about reserving the right. aboutite when she spoke

reversing. guy: i think a lot of people knew what she was saying. michael: you can interpret that in two ways. one, that qe works and we don't need anymore. perhaps if we do more the economy will be better. the change in dynamic there is where in germany, or the dax came off 25%, you had a couple tancesporate instan they are morehere open to the idea of more qe. pushing down the euro. i think they are positioned very

carefully, towards giving himself the opportunity to raise qe if he thinks he needs to do that. if that is going to be the case, the next step in the conversation will be talking with the economics team and the ecb. how much margarine to expand the balance sheet? -- how much do we need to expand the balance sheet? guy: thank you very much, indeed. today marks the start of five days in the london metal exchange. are here in london to figure out what happens next. we caught up with jean-seb astien. he tells us copper prices will drop further, but they are playing a dangerous game. -sebastien: we are not

trading on foreign metals. we've seen the pickup in terms of selling copper in china a few months ago. the government decided to change the rules in relation to the equity markets where people were no longer authorized to short sell. have a series of failures in the market. the chinesesed in economy and therefore, started to short sell. how the prices are, compared to the cost curve. guy: we will bring you more of that interview later in the program. coming up, the chief energy correspondent about glencore's decision to sell in chile and australia. then, london metal week. on "countdown."

♪

guy: these are the stories you need to know. the federal reserve chair says there may be an interest rate increase by the end of the year. they are monitoring domestic jobs and international developments. they will decide the exact timing of that left off. eu campaign to keep the launches. that set to rebuff claims it will be the patchy avec cause for britain -- the patriotic cause. glencore says it has started selling assets in australia and chile. receiving response to

a number of unsolicited expressions of interest for these mines. that is the latest in the trading giant's plan. the agricultural business, plus this. it is a big week. last week we were talking about energy and this week it is metal week. thes get a sense of glencore story and how that fits into the london metal exchange story. we have the chief energy correspondent joining us as well. sullivan is with us as well. let's work through what glencore announced this morning. this is a process they are

starting after receiving unsolicited expressions of interest. it is on top of the $10 billion that the opposite of glencore announced in september. glencore here is trying to get a sense of the market with that $10 million figure. glencore is is trying to get out in front and deal with the problem. the other is, they are selling assets during this part of the cycle. veryencore has always been good at picking assets during the bottom of a cycle. in 2008 and 2009, they were right, andts left, center. particularly in africa. cycle, they are selling assets at the bottom of the cycle. they are actually trying to than $10and do more

billion. that will affect the equity price. it is not the best sign of the cycle to be selling a coppermine. a fear years ago, -- a few years ago, copper was trading at much higher prices. yesterday was the first day of the week. this is the bottom of the cycle. or is there more still to come? >> i think from the very first parties sunday night, the move is, this is not the bottom of the cycle. ishink also that trade announcing production cuts. glencore is announcing copper cuts. it seems that panic is building

their and the pain is very intense. are very close to the bottom if we are not at the bottom. guy: neil is here. of 50 now.ng north it is good to have you. are we on our way back up again? is this the bottom? neil: the prize has been hovering in the upper 40's since the beginning of august. it has not been moving much in one way or the other. except in the last few days, as you suggested. there is a little bit of geopolitical premium built in due to the complicated situation in syria with the russians and iranians. plus the fact, i think as people start to look forward, and that is what the markets are doing, they can see situation whereby production from high cost producers is starting to move

down. it will move down quite substantially. meanwhile, on the other side of the balance, oil demand growth globally and is higher than we expected in reaction to low prices. you can see a situation where the market, which has had a consistent supply for some time now, you can see the markets start to rebalance, albeit slowly. we have a lift off as you suggested in your inductor remarks, but we should not get too carried away. michael, you are getting a little more positive about the emerging markets. oil goes up, commodities go up. that is the precursor for a rally. or is it the other way around? there is a demand story there. he chinese maybe helping that. which way around does it work? generallywe see a stable dollar, which helps

investors in terms of the risk appetite. equities are at a 10 year low. you have to be very selective. russia, poland, india, some of will bouncempanies, back. individual companies, as in turkey, have had an unfortunate weekend. select companies will continue to have their own macro crisis. others, i think will benefit from this. guy: where is the demand of story? where does it go from here? we're still trying to understand what the demand story looks like? will the fed raise rates? demand is actually growing with one of the fastest rates we have seen in the past 15 years. they have been revising the growth forecast up. guy: is that where we should be focusing?

neil: yes. nobody believes prices will rise sharply at the end of 2015 into 2016. prices will remain low and remain supportive to economies which are heavily dependent on oil. in china, there has been a huge focus on the traditional growth areas over the past 20 years. that is manufacturing heavy, highly intensive energy uses. the services sector and other parts of the chinese economy are still doing well. there still less energy intensive. india is very exciting. a lot of other developing showingies are strong developing growth. a villainted out as on the supply side, because it has been producing very slowly, all demand growth in the u.s. is 4% up from last year. the demand story is beginning to pick up.

we cannot be sure it will remain strong, but it is picking up. guy: you categorize the demand story and what is happening with supply, with goldman versus glencore. will do this and manage the supply side of the equation. go all the way across the commodity complex? >> there is a big difference. more or lesse stopped investing. in mining and copper, it takes a lot longer to see that kind of supply. i think in this debate between goldman sachs and glencore, there is a very interesting point that a trader was making to me at the start of the parties. goldman can do nothing about the talking ither than

down. glencore actually has a lot of lovers in the market. glencore cuts production, the deal will sink and prices rally. we saw the biggest rally and prices on friday. that was after glencore announced a production cut. i think we need to pay a lot of attention. it is absolutely trying to change the conversation. he knows that conversation, that sentiment he has generated with these five days of conversations with metal mining bankers are very important. really,he is trying really hard to change the conversation and change the sentiment. guy: i thought you said it was a longer cycle story. and that is interesting, talking about the miners and the longer cycle. neil, what price do u.s. rigs come back on again? neil: it is a moving target. one year ago we were saying they could not survive at $70 a barrel for $80 a barrel.

we have found production has been way more resilient than we expected. the question is, if the price stays at $50-$60, we cannot be sure. i don't think we have yet seen the shakeout from the fall in production that is still to happen. once the press does become established, say in the middle of 2016, subject to the impact of the iranian return to the market, we may well find the american high cost producers toward the end of the year are looking to start increasing their production again. for the moment, we are not sure. guy: thank you very much. a big week for commodities. all. you continuing the coverage from metal week. we are 30 minutes away from the start of most euro equity

trading sessions. we take it will be a flat day. when corporal be fascinating when it opens this morning. theasset sale from top of $10 billion previously announced. that's when we come back. ♪ .

guy: welcome back. here are the stories you need to know about for you glencore said it is selling assets in austria and chile and the move is in response to receiving a number of unsolicited expressions for the mines. the plan to cut debt. we think that is on top of the $10 billion it is already announced. federal reserve stanley fischer said the u.s. economy may be stroganoff for a right height -- and interest rate hike increase by the end of the year. and dell will announce it is

acquiring emc according to a person familiar. the deal would create the computing giant to be the largest ever tech merger. a market cap of $53 billion. interesting session in asia. china on the front. let's find out what is driving that. juliette: good morning. japan's market closed for public allday but it has been about china once again. the shanghai composite picture in a late trade and it is awful by more than 3% today really driving the gains across of the asian region. we are seeing the shanghai composite at levels wherever not seen in seven weeks. on track to close at a seven-week high.

it is all on increase speculation of more stimulus coming through from the chinese government through cutting interest rates or the reserve ratio requirement. on saturday, the state council put on the website information suggesting that tax cuts for redevelopments are going to be increased, giving a lot of support i should say to a number of industrial and property stocks in china really driving the gains across asia. you mentioned glencore share suspended in hong kong. and dougseng index kospi closed higher by 0.1%. australia's stocks, with asx closing down by almost 1%. closing low work but it has been all about those solid gains from the shanghai composite. on track for the best close in seven weeks. the solid rally we sign asian markets last week. they had the biggest gain in almost four years on the

regional #index last week. guy: wow. thank you. in hong kong. 20 minutes from the start of european equity trading and asia is flying. europe looks like it will open fairly flat. some numbers and show you where we are anticipating things will go up. flat.nk very down by a touch. dax marginally higher. pretty much a flat. maybe in response to stanley fischer and the fed hike that could come by the end of the year. american features and the negative. the calculation of the miss price on cash is that it shall view we are likely to get a negative open as well. a flat open in the united states. we will monitor that as we work our way in. i want to show you this chart. we will wait to see how it opens. it opens around now but it takes

a moment for prices to come in and we will monitor following the attacks. the live run has been very much under pressure. the stock story continues to be the stock story that has been for the last week and what is happening with glencore. we think it will sell to copper mines, one in australia and one in chile. david stronger is in melbourne and tracking the story. the stock was suspended earlier, what do we know about the assets? mentioned glencore talked about is the operation in chile and in australia. in chile, one of the number of copper operations glory -- glencore has and their and not one of the bigger assets. cobar has been mindless is the late 18's -- 1800's and it

produces copper and some silver. we know for what glencore said, unsolicited interested in these 2 assets and that is a global nt for assess underway. web sing plenty of sales by compromise and transactions. -- we have seen plenty of sales by coppermine transactions. ?uy: why is that why are people interested. why copper? david: sure, if you look at the price of this year, you would think it is strange. why would you be interested in copper asset? it is the forecast of a deficit to come. that is what is driving interest. essentially, the problem comes down to this -- supply is now forecast with rising demand. lots of aging minds in output falling -- mines and output is

falling. supply forecast to fall over the coming years and the market is forecasting a deficit. according to the macquarie group, they predict it could be as soon as next year driven by some of the -- with seen by producers like glencore. guy: thank you for the update. david stringer on the glencore story. abmher big stock story is is raising its stake of a bid around 43 pounds a share. this is according to people familiar with the matter. price leaving the sites at all. expire andine will what we know and what we need to know from our reporter. and another guesses joining us. a sense. let's think about this.

we have had three offers now and we think will get a fourth. 48 and then38 to 42. the you consider 38 and 42, next number should be 44. already agreeing and lobbying to consider the offer and that is going to mean other things rise slowly and may be up to 43 which is what we're hearing. guy: we have until wednesday, right? the deadline deal in the u.k. thomas: that is right. has until wednesday to put up or shut up and negotiate or to simply walk away and not approach sab anymore for six months. guy: is the syriza people you're

talking to it gets done -- is the sense of people you're talking to it gets done or sabmiller walking away? thomas: it is a contentious issue. shareholders on sabmiller came out opposing ab inbev's offer but not the rationale. it could mean it really is handling over -- haggling overprice. they would be happy around 44. abi said they consider their offer generous and creating for shareholders. so, icing at the moment it will be a bit of a haggling overprice. guy: you will be a busy man. haines is here and they head of research at af investments.

good morning. off a massiveme win european equities, global equities when is a rose, -- when is a rose, much of -- when they rose, more on monday. what do you do with your money? john: a reasonable strategy through the year that the repeated challenges to the peace of mind receiving was china. it was a proper challenge in the first time we had a new factor to worry about rather than a repeat of all factors. what we are seeing is people's waking up that china is controlling its own destiny. it will do what it says it will do. there is no cost to panic which means this is -- no cause to panic which means business as

usual. let's enjoy it so they can raise rates. guy: this year? john haynes: i think there will be plenty of people pleased by them as some in emerging markets. a large amount of money trying to flop on both sides which itself is causing volatility. at some point you have to get the uncertainty out of the way and know you have to do it. on the way and get on with the business of worrying about what is real in the world -- how many things you are selling and how many people you are employing and it will make a bit of difference to those 2 factors of an interest rate of a quarter or half. exactly. get it out of the way. and we that is the case are not as bad a state as some people suggest we are, the market being underweight energy and being underweight mining stocks is the wrong way around. web seen a bit of catch up and fund managers.

i've talked about people and they agree with me and you wonder when the real rollover it comes through. if people have been underweight, how quickly can as they get overweight those? john haynes: one of the new factors in the market today is the role of ets. a lot of the volatility is about people playing macro through eps. one assumes you could do this to get back into those things as fast. companies like glencore which is orsively over hit on fears what it cannot do in a certain environment. i would have thought you would of seen it going the other way when people decided it was ok. if you are a traitor and want to play a bounce, you should position yourself soon. i think china will be ok. guy: even if you are a fund manager, you have to think about your portfolio. are funded: if you

manager, you're probably happy that lower commodity prices will stay around for some time. ist the market will take out they are not going lower forever. they will take of the doubt out and that is reasonable to think oil will be between $40 and $60 for the next three years and invest, that is fine. that does not mean a portfolio manager looking for growth wants to change his portfolio. it means if you're trying to take the edge out of the cycle, the opportunity is definitely in the commodities. guy: john haynes, had a researcher -- head researcher and will return in little later. we are counting you down. 17 minutes away. front andf stories center. glencore seems to be the main one. watching that very carefully. we think announcement of asset sales on top of the 10 billion

announce. a gray day in london. ♪

guy: it is 7:45 a.m. in london. the stories you need to know. glencore said it will sell 2 copper mines. one in australia and one in chile. it has announced the plan to cut debt by around $10 billion. prices plunged last month. raise $2d it plans to billion from the sale of stakes in agricultural assets and precious metals. we think -- it gets quite confusing. federal reserve vice chair stella fisher said the u.s. economy may be strong enough for a rate hike. jobs growth and national development on the precise in time. dell will announce it is

acquiring emc, according to a person familiar with the matter. it would create a computing giant of the largest ever tech merger we think. it will be close to $37 billion. alone has a market cap of more than $53 billion. stocks to watch. we know some of the names but a few surprises from caroline hyde. caroline: i will be digging into individual stocks. keep an eye on the turkish market in general. just opening a few minutes ago and it is going to be under pressure. the tragic terror attack on the weekend. the country in mourning. stocks have been pushing to the downside and efs on the turkish lira as well. and keep an tale eye on terms of asset classes and the turkish lira in turkish stocks opening in a -- a few

minutes ago. digging into certain stocks to watch as you're looking at 0.4% decline in turkey. your attention to glencore and the roller coaster we have seen in the stock. a look at the u.k. company it is there london-based share. glencore's stock roller coaster plunging at 1.30% per day as the commodity rout wore out on glencore and the concerns about its debt load. it is tackling the debt load and they said theyd are up for grabs and had interest shown from some parties in these particular assets and co. to brought together or individually. keep an eye on glencore on the open because it could rally further. it could sell assets and pay down some of the $10 billion worth of debt. a look at other stocks. target.r, m&a

will it get a sweetened price point? world's biggest brewer offered, not enough. what about 45 per pound per share? there could be a sweetened the deal for 43 pounds. miller is undecided. the board has been talking. a 2% premium on what is being offered. sabmiller was at least 7% premium, 45% to get the shareholders to acquiesce. many shareholders speaking out. altria back to the deal for sabmiller and accommodation of the broom juggernauts. i wanted to keep an eye on germany. 9%ld be jumping in excess of area the time it does happen -- had over the past 12 months. the spike of trade in september and the erosion and the stock

market as everybody realized have to close nuclear assets. and pay for the cleanup. didn't they have enough money set aside? yes, concerns the german minister. eon on 9% and could see the fact they do indeed have enough cash to be able to shut her and cleanup -- shutter and cleanup. guy: caroline: -- caroline hyde, thank you. bank of america merrill lynch as we speak putting got a note that rab has been raised to neutral. a good day when the stock goes up by 9%. what with thing will happen with this rav store. him --iful impact on how stocks will open. we're focused on sabmiller and of course glencore front and center. confirmed quite a lot over the

last half hour. a sea of green. higher.we will get better than what it was before. germany looks like it will outperform. it could be up by 0.4%. u.s. futures as well. around 0.1%ng up by now. it was negative a little earlier. columbus day and that will affect the story in little bit later on. john haynes, head of research. let's focus stateside. we kick off the earnings season this week and banks are front and center on surprisingly, what will they deliver for us? john haynes: i think they will be pretty down. a lot of the american local banks, domestic, has had most of the tailwind they can have. some extraordinary earnings and that has basically been

declining and revenues. it is really hard without an interest rate rising. -- if theyd said raise rates, looks like a better by? john haynes: will be much happier about that. and the big banks reporting which is jpmorgan and citigroup. they,om guess as to where now and their position in their trading books and fundamentals area we will see and have a good lead. the s&p reporting, how do the earnings season will go? john haynes: the consistence and no reason we had early announcements -- the consensus and no reason we had early announcements that almost all of it, in fact all of it. the energy sector dragged. that and a positive 2%-3% earnings growth.

and we have gone past the worst part of the negative comparisons from energy and the dollar. i suspect that if people brace of themselves for a little bit of bad news out of the far east, the tone of the conversation might be quite positive and that is what you are seeing. to buy-- guy: an excuse and not sell? john haynes: in the context of the recent scares is just that, scarce, not a real worries. people are looking for excuses. guy: how will europeans season be? john haynes: more sensitive to demand in the far east but internally the momentum is improving faster than the u.s. the u.s. is that a platform. european financials have a lot more to go for then the americans. we will get a reasonably good earnings season out of europe.

i am crossing my fingers because with a lot of it. [laughter] guy: on that note, we will leave it. john haynes. we are six mins away from the european equity markets opening. jon ferro is here. so much doom and gloom over the last couple of weeks. the ftse 100 is on an eight day winning streak. the markets rebound has been commodity markets and the miners and wasn't it in focus with glencore beginning the process of selling assets in chile and in australia. it is worth point out this a trading company that's prolific at trading. they buy the bottom. to the magnitude of the problem in the mining sector glencore has to sell assets at potentially of the bottom of the cycle. the young that we will talk

about political risk. wake up to brexit. -- and we will talk about political risk. the banks are screaming investors need to start paying attention. a big topic for us. guy: looking for. an exciting hour. -- and looking forward. is wrapping up. it's a loose i we will get another positive reception for european equities. glencore will be a big story. -- it looks like we'll get another positive read from european equities. it looks like we will get a positive open. it is a positive open. we will take a break and jon ferro is up next. ♪

jonathan: good morning and welcome to "on the move i am jonathan ferro. , moments awayndon from the start of european trading. to your morning break. the process of selling assets in chile and australia. it reacts to the commodity rout. asian stocks rally. a seven-week high. the biggest weekly gain in almost four years. wake up to brexit. that campaign to keep the u.k. in the european union begins today. ubs and morgan stanley tell investors to start paying attention. 20 seconds away from the market opening.

are you paying attention to features almost dead flat. by 40 points. a rally in asia, does a carry through to your? your open with caroline hyde. caroline: does it carry to seven days of gain? the longest winning streak since july. maybe a little caution creeping up to the market. stanley fischer adding to the voices saying we could see a rate hike this year. the dollar is not really reacting. how much do we factor in a rate ofe and a continuation cheaper money that has been driving stocks higher over the past couple of weeks? we are waiting for europe to open and the ftse 100 is data flat. cac 40 is completely fact. a little bit of caution. a little bit of caution when it comes to risk appetite across the board. chinese shares are doing very well on the back of stimulus. here in pe