30 minutes. mark: european stocks retreating from their highs. the european close starts right now. ♪ erik: we will be taking you from new york to london to brussels in the next half hour. at the chartlook just in case it floats tiger. he threw me a little bit we talked earlier about the index. we rose to a three-month high last week it had the biggest weekly gain in over a month. it looks like it will finish the day lower. the big movers today were commodities. the bloomberg commodity index to a 16m a 19 to a --

year low, excuse me. the big story of the day was from home retail. the sunday times says the private equity companies are considering and that for retail. the price tag is one billion pounds. a small she is compared to the $160 billion deal we have today. i would like to know from you, what the takeaway is from today's manufacturing service data. mark: the ecb would have been encouraged right the economic component when you bring together the services and the manufacturing composite. he have the best economic activity in for .5 years -- 4.5 years. don't forget what mario draghi's head on friday. he said the ecb will do what is

necessary to rapidly accelerated inflation. we are looking as much ahead to the meeting of the ecb as you are waiting for the meeting of the fed on the 16th. council hasverning to be encouraged by the pickup in economic activity. no inflation, but our fingers are crossed there will in the month ahead. now to our first word news. >> more than 20's aspects are now being held after five more were a rest did in connection with the paris attacks. the belgian capital has been a in a lockdown since saturday. an islamic militant group says only two gunmen carried out the attack last friday in a hotel in mali. an african news agency received a statement reportedly from

the group claiming responsibility. deathnmen are claimed blamed for killing 19 people at the hotel. convicted spy jonathan pollard will make it to israel eventually. last week he was released represented north carolina. lifed served 30 years of a sentence for spying on israelis. for now he is hard from leaving the u.s.. the dispute from flight attendants. the union went on strike for a weekend that forced lufthansa to cancel 4700 flights. and an associated press analysis finds airplanes spend more than 23 minutes on average taxiing between gates and runways. that is the longest it has been, and it is a 52nd increase over second increase over

last year. that is a look at our first word news. you can get more on these and other breaking stories 20 hours a day at the new bloomberg.com. erik: thank you. for more on our top story, french president françois hollande has bring on board to build a coalition to fight islamic state. he met with prime minister david today. the uk's national security depends on its economic security. >> we must do more to tackle the threat of returning foreign fighters. this requires a pan-european effort and we need a strong european border to protect our security more effectively with screenings of systematic security checks, and greater sharing of data among member states. delay,, without further

agreed to the rules that will allow us to ship passenger name records. it is really good to get more data is ridiculous we can get more information from countries eu that eachhe you other. erik: we go back to mark barton. clearly onstates board in the effort to fight islamic state. françois hollande to meet president obama in washington. thursday. american it will be a busy week for the french president. let's start with this whistle stop to her of some of the world capitals. can forgenk hollande a coalition against islamic state? >> probably not one that includes russia and the united states.

that is his biggest challenge. acting as a diplomat. this is shuttle diplomacy. he may be trying to convince president obama to do more in concert with the russians as they have already indicated they are willing to do. it is delicate. it is unclear if you will come away with any deliverables are in germany there will be a show of solidarity. but there is very little isication that angela merkel going to the race for government to start partaking in airstrikes. have gonefurthest they is arming the opposition groups. that has been very controversial in parliament and the broader public. to your point, it makes me wonder why these face-to-face meetings are necessary beyond the obvious photobomb. -- photo off. p.

it seems fairly clear what certain countries are prepared to do, vis-à-vis islamic state. it seems that creswell a lot feels a sense of ur energy, as well as his counterparts in brussels and his counter mr. cameron. he may try to to convey the urgency in person. there is a lot of back and forth. i think at least for might have covering the white house it is pretty clear that heads of state and hav heads of government value the time they have one-on-one when they can try to advance the ball. even if that is just an incremental advancement, these conversations are useful. when you look at his domestic position he was 15% of the polls before this, he is now up percent or 7% depending on which poll you look at.

he is still in the low 20% and this trip maybe the action needed. mark: brussels is still in lockdown for a third day. how long will these extraordinary measures less? -- last? indicationsare no of easing. he is still at large. one of the potential suicide bomber's who did not blow himself up, and he crossed back to paris, and went through to belgium. wo of his companions from that evening have been detained and questioned. there have been reports in a lot of local press that he could be anywhere. no indication from the belgian authorities that he has been apprehended. just on the business impacts of the terror

attacks. it is hotels and restaurants that are beginning to see the early impacts of the attacks and can we say whether this will have a long-term impact? effects are transitory. it could have a slight downturn in tourism and services, which we should know was still north of 50. it still signals expansion. affect manufacturing. it did not affect the eurozone number which is showing some pretty robust growth, the most for most growth we have had in the past couple of years. but it is still european growth. it is not going to mean that the engines are running full steam and the economy is taking off. it is just not totally anemic. .3%. let's get back to erik. jumps,he dollar

commodities take a new dive. after the break we will drill down into the selloff and tell you what it may mean for a fed rate hike. ♪

mark: bloomberg markets, live from london and new york is european close. in the 5100 12 for the first day in sex. it is finishing lower today. erik: that would mirror the declines and other european stocks. things are looking brighter here in the united right now it is time for the bloomberg is this flash -- business flash.

not only is this the biggest deal ever in pharmaceuticals it would be the biggest tax inversion. to operateompanies in the united states that have it overseas address for lower taxres. honda, toyota, nissan have said they will which using toccata quit using- takata. you can find more business news at bloomberg.com. let's take you back to london, following the selloff in commodities all the way to metals. mark: the bloomberg commodity .ndex at its lowest

rising last week, industrials, .ental leading the losses rising against most of its major peers after san francisco president john williams says there's a strong case for a rate hike in december if the u.s. data holds. joining us now is andrew popper. .hank you for joining us today make some sense of this elevated selloff. the bloomberg commodity interest is that is lowest level since 1999. love i'll is related to the concerns about the chinese economy. although the chinese economy is far from being in a situation of a hard lending it is still slowing down. demand, the

manufacturing sector in general, is on its way down. so i think it is the decline in commodities, due to the situation in china, and to the slowdown in concerns about other emerging market economies. on the other hand, as you noted the economic outlook in europe is quite positive. the price aspect is falling for a ninth consecutive. that has to concern the ecb. andrew: exactly. that is when we had a dovish speech last week from mario draghi. this is an encouragement for the market. his presentation last week i thought was very interesting. it hits all the good points.

on the one hand, he took stock from the successes so far of quantitative easing, but they impressive results program started. inflation is getting close to target frequency a whole slew of pmi emphasis today that is positive. the economy is returning to growth. credit is expanding. there is a lot of good news. but at the same time he is very much aware of the headwinds. one of the course is the commodities, the slowdown in china, the overall situation and concern about the emerging markets. month, not least, unfortunate incidents of terrorism going on the the -- beyond the human tragedy. they will have an economic impact.

maybe not a very serious one, but it will be fluid seeing consumer confidence, tourism, traveling. that gives mr. draghi and the to sufficient incentive continue their quantitative easing, maybe to expand it. resort to further cut in rates. so because of that we have a very favorable environment in europe for equities regardless of what happens today. erik.let's bring in erik: as you pointed out it is a fundamental story that is is what is going on. weakening demand in china and emerging markets and a production glut on the supply side. how much supply destruction does there need to be to bring these markets back into balance with existing demand? obviously, it varies from market to market. the situation that was brought

to our attention today is about oil. as long as opec, it was pointed out, is not willing to take more serious measures to reduce production, we will not have a reduction in the glut of oil. in this particular case of a the intention is to hurt the suppliers of alternative sources of energy. the are willing to absorb somene in prices for members of opec. but it will vary from sector to sector. it will mean a reduction in supply for some of the commodities, which is already taking place. mark: thank you for joining us today. isk us through what happening to the u.s. market. a big difference to what is happening here. you had your best week last week for the s&p for almost a year. question,nswer your

u.s. stocks are slightly higher, but what is noteworthy about this is because as goldman sachs has pointed out, there are five stocks almost single-handedly responsible for the direction of u.s. averages right now. amazon, google, ge, and microsoft. and facebook. a number of those stocks trade on the nasdaq. let's take you to abigail who has more on other stocks, electronic arts among them. abigail: the stock is off today after gamestop missed estimates. arts trades at a premium to the group, explaining today's decline. but you could say it is justified after an expected return to mid to high single

digit growth in the fiscal year 2017. it is was than 45% year to date. erik: thank you. up, the battle of the charts. commodities slumped to a 16 year low. he will have something to tell us. mark: eyewear. -- i will. analysis toechnical tell you what could be next. stay with us. ♪

erik: you are watching bloomberg markets live from downtown manhattan. the european close. it is time for a battle of the charts. he some of the most informative, telling tribes of the day. joe weisenthal, anchor of what you miss is with us.

mark, i want you to begin. mark: we are looking at the bloomberg commodity index, which today has risen to its highest level since 1998. let's dive into it from a technical analysis standpoint we have looked at it over the timeframe. the 200 day moving average is green line. traditionally for a market that is rising you want short-term history to be above long-term history. but as you can see very clearly right then sense long-term history has been above short-term history with the 200 day moving average above the 50 day moving average. that is called a debt cross. since back in august, the bloomberg commodity index fell by 9%. look at the relative strength as well. the market is oversold. us that below 30 tells

an aspect is oversold. .t is at 25 the relative strength says it is oversold, but the trend tells us it is a negative one. figure that one out. erik: i like that chart. the pressure is on. talk about the german economy. data, a got the pmi survey of companies. there are two separate things to look at. once the services industry and one is the manufacturing industry. all your services injured or -- in germany are stronger. this is the story of the global economy. everywhere you look services are doing better than manufacturing. there is this global trade slump, this commodities slumped. 55.64 services, 52.6 for manufacturing. growing in both, but services are hotter.

is really encouraging because the last bit of data we had manufacturing was for september. we saw an unexpected drop in factory orders and production. this data for the new quarter shows the economy, which is our part is holding up. erik: do i have to decide a winner? joe: participation prize. erik: i have some criteria. technical analysis. 50 day moving average. the 200 a moving average. debt mentioned the words cross, he was probably going to win. but i thought there is no way he is going to win if joe comes through with this comparison of german services and manufacturing. the keyword i missed was inflation.

this was inflationary, so i'm afraid joe i'm going to toward the winner with a trophy to mark barton in london for his technical analysis of commodities. and while i have you both, when we looking at tomorrow? mark: check this out. -- francoisl on hollande continues with a meeting with president obama. they are forming a coalition against islamic state. he ends in moscow on thursday when he meets with president vladimir putin. on theimonyhas health of the economy. erik: q3 revisions. ♪

noon in new york. >> welcome to bloomberg markets.

♪ scarlet: good afternoon. alix: here is what we're watching at this hour. partial remains of lockdown as police carry out raids in an attempt to stop a terrorist attack. seals the deal would allergan. a $150 billion merger, and the biggest and yet in using a controversial tax strategy. ratesan expected raising get an expertt we opinion. scarlet: let's go to julie hyman for the latest. it looks like we are extending this winning streak