they come. ahead of the market open, ftse futures that little bit lower. the dollar is stronger, making more headlines. let's get your morning market open with nejra cehic. nejra: it is all about the world's two biggest economies. investors looking ahead two minutes from the fed's october meeting. at the moment, traders are pricing in a 66% possibility of a fed rate rise in november after some mixed data yesterday. the key, that inflation number from october coming in line. we've got the u.s. economy and the fed on one hand. on the other hand, there's china , with president xi jinping saying the economy faces considerable downward pressure. let's look at how the markets in europe are reacting. just opening here and it looks like it could be red across the

board. ftse 100 down. dax down over 0.5%. , almost byweaker too 0.7%. let's take a look at the dollar. this is going to be the currency in focus today. looking pretty flat, but it is at a seven-month high against the euro. look at the dollar index. the bloomberg dollar index tracks the dollar against a basket of 10 major currencies. that is at a record high. that is the dollar. i'll keep you up-to-date on equities. we've got to look at the commodity markets as well. gold coming in pretty flat. this is trading near a five-year low. expectations increase for that fed rate rise. coming off its worst stretch of losses since

1950. silver acts both as a precious metal and industrial metal. it is facing downward pressure from both sides. almosting a little, up 0.3%. copper extending losses. copper is at a 2009 low. the lme, that dropped 25% this year. it is on course for its worst year since the financial crisis. jonathan: nejra cehic, thank you very much. let's get the update out of asia. juliette saly in hong kong. we saw the latest operation in paris have a bit of an impact on the region in asia. we have seen gains on the nikkei in early trade. it closed pretty flat on wednesday. macquarrie up around 7%. in australia, that market closed before we heard the latest from

paris. we had seen some weakness from mining players, in particular gold star which announced a fatality at its mine this morning. paladin energy down almost 8% in australia. new zealand closed slightly higher. a bit of a flat session in korea. we saw that rebound from the won yesterday. the shanghai market closing down around 1% in china. president xi also saying some positive comments about the overall economy. we do see weakness coming through in equity markets. volumes in china were down around 14% lower than normal. here are some of the stocks. citigroup securities closing higher on a new chairman. insurance players like china life, in australia, miners coming under pressure. bhp billiton falling below 20

australian dollars i share for the first time in years. subdued session in the agent -- the asian region today. jonathan: thank you very much. here's what's happening in today's program. first, the terror raid in paris. police surround suspects in a suburb. dollar liftoff. the greenback trades close to a record ahead of the october minutes. and, commodities casualty. glencore faces its longest losing streak as the metals rout takes the wind out of its debt cutting plan. first, we start in paris, where an address linked to friday's attack is being rated. three people are said to the killed. the french prosecutor has confirmed the target of the rate

is the suspected mastermind of the attack, abdelhamid abaaoud. inndan greeley is saint-denis and joins us live. give us the update. brendan: this morning, several residents were broken with explosives and told to remain in their homes. that order has been lifted. they've been moving the police cordon in. we are now about 600 meters from the address where the attack took place. what we know so far is there have been explosions, and gunfire, all morning sporadically. three people have been killed. one woman killed herself with a suicide vest. we do not know whether any of those were abdelhamid abaaoud, who is suspected of planning the attacks from brussels in belgium. jonathan: as you see the level of security around you, over the

last few days, we've seen crowds emerge. butow this is a suburb, talk about what is going on around you. this is a city that is still very much nervous. paris, we here, in saw people being pulled over by police. this morning, what you see around you are the police of the raid unit. this is the french antiterrorist unit. a very militarized police presence. what's gone now are several military style trucks that have left. jon,now, guy -- excuse me, all over the city for the last three days, you see people still flinch when they hear sirens. there are police sirens all the time. as in new york after september 11, people gather in groups. i've seen residents in this area, saint-denis, talking to

each other, trying to figure out what's happening, asking me, looking at their cell phones. the news is still coming in, even here. jonathan: brendan greeley in saint-denis. much more from him throughout the morning. for now, i want to bring in andy lynch. the ecb talking about the potential for this to ripple through the european economy. i spoke to peter a couple days ago. there is concern about what this can mean. at this point, you just can't make the call, can you? andy: it is far too early. this is ongoing and developing. i think one interesting thing is what mr. hollande and mr. valls did say, that france is going to increase spending. they are not going to be constrained by the european stability pact because as they

put it, this is a case of war. national priorities now trump european complications. what we could see, coupled with , quite a bitnding of fiscal stimulus. actually, there could be a bit of a tailwind in the european 2017my going into 2016 and if we see public spending picking up. jonathan: we've had two real big .ush backs out of the weekend one is geopolitics. the other is what you mentioned, the boost to the budgets. which is more significant for you? andy: probably for europe it is the budget. at a more global level, the ,ncreasing accommodation

bringing russia back in from the cold. i think that's a much more significant issue at a global level. for europe, i think fiscal spending is what will matter. jonathan: andy lynch, stay with us. up next, the dollar takes flight. expectations there will be a 2015 lift. the dollar at a seven-month high against the euro. ♪

jonathan: good morning and welcome back to "on the move." it is still picked back in wall street. that is going to get brighter ahead of fed minutes with the euro trending low against a strong dollar. let's get to bloomberg's top stories. french officials say three people were killed as police raided an address in the northern suburb of saint-denis in connection to last week's terror attacks in paris. the french prosecutor has confirmed the target of the rate is the suspected mastermind of the attacks, abdelhamid abaaoud. china's house price recovery slowed in october. less risk and challenged authorities' efforts to revive markets.

jinping hasident xi acknowledge outside risk to growth while assuring fellow leaders that asia's biggest economy is resilient and committed to reforms. he said the economy is dealing with complicated internal and external environments and the temporary pang of deep reforms. here's the headline in the fx market. a dollar high. expectations for a fed hike in december have lifted the dollar to a seven-month high against the euro ahead of the release of the october fed minutes. the greenback climbed after u.s. data showed inflation and factory output increasing last month. want to bring in andy lynch of schroders. beyond the first rate hike, the conversation seems to be about the second rate hike. are you surprised as you look at the probability of a fed hike in december that it is around 60%

to 70%? not much higher? andy: i am given the strength we've seen in payrolls data. more importantly, the wage growth data. wages are finally starting to increase. is, thatre inflation basically translates to 2% real wage increases. time, we12 months start lapping the fall in the crude oil price, that drag on inflation is taken out, if real wages are still at 2%, we could be talking about nominal rises of 3.5%, maybe 4%. a data point.have the dollar. the fx analysts go to the history books and history tells us that we rally for the fed hike. socgen shows that on the way back down, we actually get a weaker dollar.

the 2004hat in tightening cycle. we can bring that chart up. does that tell you anything about the current situation? historically, we don't have an example of where we are now. --y: i think this is where this time, it might be different. other cycles,se europe, the u.k., japan, were trying to the almost a similar rate cycle to the fed. we've got mr. draghi saying, more qe is coming. then we've got the fed starting to raise rates. i think that divergence in monetary policy is something we haven't ever seen before. i wouldn't because it about looking at history as a good guide to what's going to happen. say in fatal thing to

any interview, but the facts this time are different and the consequences could be different as well. jonathan: we look at the dollar and the fx market, stocks, commodities. manager, areequity you taking any notice of the fx markets? andy: absolutely. a lot of companies across europe have got either a lot of foreign earnings, or if they are a clothing retailer, they've got a lot of dollar-based import costs . for someone like that, a rising dollar is bad news. if they can't increase prices to you and i, they are going to

face a margin squeeze. if you are a european exporter, it is great news for you. you have the choice of earning more profit or taking more market share. jonathan: the execs come on this program. i asked them what are they doing. they say, we diversify because we have such wide exposure. what they say to me, we hedge. it is quite easy to say, this is my revenue. but if they hedge, they don't get a tailwind or the headwind either way. andy: hedging just delays the impact. no company is going to be hedging 3, 5 years into the future. jonathan: is next year the critical year? andy: we may well be hedged for the first half of 2016. as you start getting into the second half, that is where we will start seeing the impact in the numbers. the market will start

anticipating those impacts earlier. we will see the impact in the stock market before we see it in the reported numbers. they are being prudent. they are hedging. they are managing risk. are only managing it for 6-12 months. jonathan: final question, when the fed minutes come out later this evening, do you read them? andy: i have to admit that i have some very good friends of mine who read them and send me the highlighted bits that they feel are important. so i have some very good friends who do the hard work for me and give me the bits that i need. jonathan: now we know what andy lynch is into. up next on this program, we take you from the fx market to commodities. glencore crushed. it falls for a record 10th

straight day. ♪

jonathan: good morning and welcome back to "on the move." the commodities market remains under pressure. copper grinds down to a six-year low. gold dropping to the lowest level since february 2010. it has been rough and ugly. john mayer joins us now.

andy lynch is still with us. lows, are dollar trades more than commodities trades for you? john: it is a lot about the dollar. every time the dollar moves up, the expectations move up, the commodity prices go down a bit more. china is not buying as much as it was. i think we have to wait a little while. it is not all over in china. there's still growth. there's still demand. jonathan: let's talk about demand. we mentioned china. world tradeabout volumes. andy, you talked about world trade volumes. we have this conversation about whether that income trait is talking -- is changing somewhat? what is the view? andy: my view is that it is a combination of both.

some re-shoring into central and eastern europe, into mexico, which reduces the need for asia. i don't think that explains the sharp fall we've seen in trade volumes in the last six months. to me, that suggests something deeper going on and something ugly in the basement. jonathan: john, something deeper going on. when we talk about glencore, we will do that. on the supply side of the question, i would like to bring up a chart for the viewers. it is the differentiation opexeen capex and economies. the appetite for gasoline is still rising. the appetite for steel, concrete, cement, iron ore, that is falling. we've got to draw a distinction, haven't we?

john: sure. a lot of the chinese metal industry is losing. werecommend they are -- reckon they are losing $50 on every ton of steel. there are some producers in china that have cleaned their act up. same with aluminum. their industry is losing money. if we go back 50 years, china bust its economy on overproduction of steel. they don't want to do that again. they remember the famine they went into following that. memories on painful times. they are trying to clean it up. good numbers on the sales manager index recently. there is a readjustment going on. there's a lot of infrastructure programs and developments they were pushing ahead on that have been stalled partly because the government swept money back into government coffers and partly

because they said, we want to clean up some corruption here. jonathan: in a capitalist society, you wouldn't be able to produce below cost. in a society with an economy like china, where rates are being cut aggressively, that is a fact. it has been happening over the last 12 months now. that capacity is not coming out aggressively, is it? john: not aggressively. they are careful. they don't want millions of people suddenly out of work. their economy, or their political system, doesn't tolerate that so well. it is going to cost them some money, of course. part of the cost of that is lower commodity prices around the world. as they produce at underwater prices. but this will turn around. this is a very hard second half. jonathan: john, you're going to

stay with us. final question to andy. at what point do you have a look at the miners, given the capacity out of the market, at what point do you reach for the equities get? --y: we have to see [indiscernible] there's a lot of pain already but we haven't seen too many of the smaller producers listed around the world actually going bust, being forced to liquidate assets, close down. when we see that happening on a larger scale, that suggests to me that is when the market clearing process is happening. that, that is when i dust off the old research file. jonathan: andy lynch, nice to have you with us. the lack of players going bust. we will talk about the ugly

duckling of the ftse 100. it is glencore with a record 10th day losing. there is pressure to do even more with their debt cutting plan. ♪

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what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. jonathan: good morning, and welcome back to "on the move." markets ler, the ftse 100 down. the dax down by 66 point. which of the board, euro weakness against dollar strength the story for a wild. that is not the story this morning. it is up by a third of 1%. also high this morning up by 12%. copper the lowest since may of 2009.

that losing streak continues by 8/10 of 1%. let's get you up-to-date on the stock market moves. >> i'm watching the biggest movers of the moment, starting leading the losses. this is the french industrial gas giant it announced a takeover of air gas in the u.s. to the tune of 10 point $3 billion. this is a push into the u.s. market, the biggest -- biggest deal in nine years. leak itsallow it to competitors. the shares are moving lower. it could be because they have paid a pretty hefty premium for airgas. moving on to syngenta, this company we were told by people familiar projected a $42 billion bid by china previous to that it had rejected a $47 billion bid

from onset of. but now we are hearing that month said that was having internal discussions on the merit of a new author -- offer. glencore, 10 days of losses a record losing streak for this stock. haves for copper and zinc reached six-year lows. $8 losses today, white about billion off of their companies's value. he focused now it's on this 10 billion dollar debt cutting plan. the pressure is back on to try those efforts harder and faster. jonathan: thank you very much. transparency, the chairman of , a nonexecutive director at the glencore. let's talk about the company. a ten-day losing streak, the longest losing streak on record. what is it mean for the debt cutting plan?

do they need to be even more aggressive? heren-house expert is alongside john mayer of sp. great to have you with us both. i want to get a grip on this, the equity price move, how does that spell across to the balance sheet? spillovere actual from an equity price that gets hit across the balance sheet. the share price is reflecting the fallen commodity prices that we are seen in coal, copper, zinc they are the crucial ones. credit ratings agencies use ratios, net debt, so investors will he looking at those ratios and saying next year figures could be a certain percentage lower. that will come down to maintain those ratios and keep them in a crucial read it -- credit rating. question is, on a ten-day losing streak to they

look at this and say the debt cutting plan we had is not enough anymore. think they have to make that decision, the $10 billion to bes not enough, or has done quicker. glencore has already outlined a number of moves -- they made a lot of them. 75% is already in the bag, by any sense they have time to wrap this up has largely evacuee -- evaporated. it could deliver big revenue to the company. jonathan: it is difficult for the credit rating agency because you're making a judgment call because you are using it as a proxy for the commodity market in general. not necessarily because you're expressing a view on the balance sheet with the debt cutting plan. which one is it at the moment? are we just pound a glencore stock? i use the term we loosely. john: the market has it in for

glencore. that reallyroups dislike it as a company. therefore any reason they will push that down. that is why we are seeing shares at these levels. remember we got that the 73 couple of months ago the shares bounced very quickly and convincingly -- there is the market that thnks it is a solid group. potentialforget the for the trading business to trade itself out of trouble. i think the opportunity is to trade its way out after a traded itself in. jonathan: we got the trading on what offset any weaknesses in the mining division, has it? se: the last day glencore shares went up on november the fourth, on that day when they reaffirmed they were trading i think a lot of people

on that they were surprised that the glencore could be so positive about the trading business. i think that speaks to the need for glencore to get out there and trade more positive news and a bit of momentum in the stock because sense that it has been down every single day. jonathan: does this make you a buyer? john: i think these shares are issenting an opportunity, it more a trading market right now than perhaps a long-term market. you buy something on the aort-term, perhaps it becomes longer-term position. it will be a very painful second half for these companies. results will be hard in february and march when they come through. jonathan: the remarkable thing, you look at the major miners in orld, they're the only one cutting capacity. investors would normally reward that, but they are now getting

punished. does it become a positive at some point? se: despite what glencore did have some losses so that is a rational thing they're doing. they failed to engage in that activity because they are still massively profitable, or significantly profitable at these price levels. the prices continue to fall, i think there was further pressure on some of the operations. i can't see it becoming it positive anytime soon. lower,n: we get hit lower, lower, you have to go back to 2009 of a level where it is lower. when you look at the copper market, is that the one out of all the commodities that you think could rebound? john: i think zinc is more likely to rebound su sooner -- sooner than copper. we have seen that china will use

10% less copper, so although they as an economy is still growing, where is his growth coming from? props more that is coming from services then importing raw materials the transforming those. so, it is still pretty tough times for these metals. prices are pushing lower on the u.s. dollar gains. is awe really need to see pickup in demand, and a not sure where that is happening right now. jonathan: jesse, final question, the stories about what they have to do more. will they, and where are we, on the agriculture unit? without be enough to offset the pain? e: let's be clear, they have done one streaming asset to deal for 900 million dollars. they scrapped the dividend saving $2.4 billion reducing working capital, they are key.

the one crucial stake with unheard much about is this agriculture unit in that could deliver quite a significant amount of cash. they have a minority stake anything up to 49% in some people value that a $10 billion. jonathan: gentlemen, thank you very much. we keep going commodity markets, breaking news let's get out for the details. is italy's biggest utility, we just had a headline saying they would cut the 59,000 andy 14% to that is by 2019. that is to cut costs it comes after some news earlier this morning that they will buy back the renewable energy business to boost to growth and a deal. that is expected to close by the end of march. enel is targeting a reduction of operating costs of one billion

euros. this comes on the back of its last earnings words at the third-quarter profit declined more than 9%. this looks like a cost-cutting estimate, cutting headcount by 14% at 2019. much,an: thank you very we keep it on the energy market on commodities and china specifically. up next, chinese pressure and the take on the economy. ♪

jonathan: good morning, and welcome back. 0.4%.se 100 is lower by equity markets at a big move higher today, the dax down by 55 points. just the board very quickly, yesterday was about the fx market and the commodity market, this morning very much the same thing but a slight reversal on the euro-dollar this morning. for -- pain for a lot of people with that stronger u.s. dollar. the pound capable, i bit of a bounceback this morning. copper, lower in the metal market that continues. gold touched a 2010 low.

the other market moves this morning, we would keep you up-to-date on them throughout the program. let's not be to bloomberg's top stories. french officials say at least two people were killed as please rated an edge rest in the northern area of saint-denis. a total of five people have been arrested in the area, the target is the suspected mastermind, abdelhamid abaaoud. china's recovery slowed in october. oversupply and less prosperous challenged authorities and efforts to revive the market with interest rate cuts and easing of mortgage restrictions. chinese president acknowledged downside risk to growth while assuring fellow leaders that the economy is resilient and committed to reform. he said the economy is dealing

with complicated internal and external environment. has the temporary pain of deep reforms. let's get more on china. enda, great to have you with us this morning. today's data, property prices, water they saying about the condition of the chinese economy? guess, at the tail end, oversupply is on one end. of them shifting anytime soon. on the other side, the first and second tier cities like beijing and shanghai than the so-called third and fourth tier cities is they won'tlem -- shift after market. this could be disappointed to policy as we discussed before they have brought in measures to stoke lending and get consumers borrowing. they brought in tax incentives. it is not yet working out.

it is not all doom and gloom, there are some signs of stability in pockets of the market but they were hoping by now for more bang for their buck . jonathan: the president xi making some headlines this morning, and saying they face significant downward pressure. what does that say as someone who as significant as him is acknowledging the problems they face? language,s striking really, and was probably a reminder to anyone hoping for a quick turnaround that it will probably not happen in a hurry. they continue to point to a sluggish growth. even though there are pockets doing well at the retail sector is doing well in spite of the downturn, that is not enough to offset the slowdown in those old key drivers. .he old economy, so to speak we know the housing market is slow, and that is dragging on big parts of the economy.

we know the export sector remained under pressure. until we see all of those areas of the economy clicking into gear, we will not see china taking on much. economists hope they will get traction to the end of the year but time is running out now. backnus is probably going under the fiscal side of things because of the feeling of the rate cuts may be aren't having the traction that people felt or thought they would have. she is reminding us that it is a stark quinton's -- coincidence. jonathan: the commodity bullish isanyone copper. they are also hoping for a quick turnaround. the president had a quick word of warning. a 2009 low, that continues. talking about moves lower, the biggest loser on the stoxx 600. the french and gas giant said it will pay more than $10 billion for the u.s. company airgas. the biggest takeover in nine

years. why did the deal -- why the deal, why now? >> the market is consolidating quite a bit. lower prices in the u.s. make it very attractive for european players. similar u.s. acquisition to get that market scale. with this deal, they will go ahead of them. america and germany is going from 24% to 42%. jonathan: can we expect this cycle to be more aggressive? chiefit depends a lot on of financing. we wondered if there is a rate cut what in fact does that have. so far, it has been a great deal for them. we look at numbers that about $3.5 trillion. we might be the 2007 record. mnathan: another big year for

&a and people who draw comparisons, but it could've been a much bigger year. people were expecting some significant consolidation in the commodity sector. the 16?t in : we are seeing a lot of conversations happening but say it is like catching a falling knife. prices have not bottomed out yet, and what are the risks of those kind of transactions? and priceshe assets people wander still much too high. what will force them to capitulate? uth: consolidation happening in the industries, that could maybe started off and you would see a trigger affect. or if they feel like they can't just a on the sidelines anymore. the premium they're playing as a 50% premium to the price

average. that is quite the price to be paying just because you want to be number one in that market. jonathan: great to have you with us this morning. program,xt, on this the fed went ahead as investors suggest a december rate hike could be a done deal as attentions turn. we get more clues in this evening's federal reserve minutes. ♪

jonathan: markets this morning a 53 minutes into the session. the 5300 still off, a significant mover is 20 minutes ago talk about glencore stock on a 10 day losing streak. mapping that this morning, positive territory, it is a volatile place for the commodity markets. looking at rio and glencore supporting the ftse 100 right now. the dax is lower by 63 points. those are the equity market moves, a busy trading day ahead. some data out of the u.s. later. we will get a reading on that with housing stats as well this afternoon. is then offend -- event federal reserve releasing october meeting minutes. i was just talking to richard jones and we both said that

seems like a long time ago. first -- fortunately, he said next to me now. it seems like ages ago. meeting,ged the next we sit here everyone expecting that we will get a move in december. as for the detail we want, why they gave almost guidance ? richard: i think you're absolutely right about that, the devil is in the detail in these things. if you think it back to the september meeting, before they released bit officials coming out saying it was a really close cut thing, them of the minutes came out to did not look close at all. so the double is in the details. we had a big shift in expectations. now, we have about a two thirds chance we get lift off in december. is the risk that these minutes

or not quite as hawkish as the market pricing is let us to believe? i don't know, but again, the devil is in the details. jonathan: as we go into next month it will be huge for the ecb we have that final payroll support for 2015 as well. be asking,n i will what stops them from making a move in december? any idea? richard: they are still notionally data dependent. if you had a big reversal of that it will numbers like we saw earlier with them is nothing you could take from the previous report that was good, we had a knockout report last time. something really week, similar to the september reading, would definitely give them pod. it would certainly shift market from the 65% now to maybe the high 50's. jonathan: geopolitical risk is

flying up again, the attention shifts, and i wonder if they can deliver what would be a dovish hike. we can have a debate about what the dollar means the u.s. economy, we know it matters to them because they keep talking about it. the dollar keeps pushing higher, that is on the radar screen. richard: i think you are absolutely right. the dollar index is at a seven month high. indexes off the charts, it is really something that concerns them. we talked about how much the pound concerns the bank of england. both of those banks are in the same boat. jonathan: what do you think it impacts them to? richard jones, the giver a much. federal reserve minutes coming up. look out for that, the first hour of trading equity market in the red coming back off of the biggest one-day rally in over a month. up by 29 points.

you want to talk about these markets? i'm on to her. good morning to you -- on the ♪

>> shots fired in the paris suburb. two are dead after a paris raid. it says russia moves to cooperate with friends in syria. fed minutes do tonight. the dollar rises and gold slumps as bets rise on a rate hike. china's risk. china's whole price recovery xi saysnd president the country still faces downward pressure. welcome to "the pulse," live from london.