escalates,mir putin as russia cuts ties to turkey, vladimir putin and friends walk along -- francois hollande coordinate. the euro is on course for its longest losing streak against the yen. moreetails big day, as companies insist it is not black friday, we speak to one ceo who is still cashing in. welcome to countdown. i am an edwards from london. you are watching bloomberg, this is countdown.

let us talk about the currency market very briefly. as an introduction to set the scene this morning, the euro-yen set for the worst ever losing streak against the euro since 19 59. this particular pair getting a bit of a chill ahead of the ecb mating that is looming. story than broader that. it is the euro weakening generally, against most of those 60 major pairs apart from the danish krone. as you can see, that was back in march and april time. an interesting one to watch. we will have more on that and does the moment. let us get to the bloomberg. nejra: france and russia have agreed to coordinate strikes in syria to increase the focus on jihadist militants. that is after president francois

hollande and president vladimir putin met. differences over assad. commerce sales surged yesterday, raising questions about how many will show up for brick and mortar promotions for lack friday. according to adobe, sales are expected to total $1.7 billion. president ping announced a major overhaul to make the largest army or combat ready. he told military officials that all branches of the armed forces will come under a joint military command. he is also insisting that the military maintains correct political direction. and the euro is set for its longest stretch of weekly decline versus the yen since its creation in 1999. that is as anticipation builds that the ecb will surprise with the size of stimulus next week .

and that is your bloomberg first word. for more on the stories and others, at the bloomberg.com. anna: thank you very much. let us put the current trading picture into perspective. let's get up to asia and find out what is moving markets over there in the trading day. yvonne man is standing by with a pretty good picture. yvonne: we are seeing a selloff in the asian pacific. not a good friday. not really a great week as we wrap things up. required, given the u.s. holiday -- thanksgiving yesterday. we are seeing some read here, the shanghai composite down 3%. that is the biggest since september. the china industrial profit, that was a big culprit here -- 4.6% fall on the year. five straight months we have industrial profits drop. and that is down one third of a percent as we wrap things up. we did get core inflation numbers falling 1/10 of 1%. core inflation, that was the one

to watch, that excludes all food and energy. still, far from the bank of japan's 2% inflation project. but on the broad sink we are seeing an up trend. we did see that they did raise 6-monthrence rate, chart, you can see where hitting levels the summer, you may remember the evaluation that sparked this global selloff. ghed onde on the -- wei the concern that the remedy that china will get the slower than anticipated imf reserve currency back, that decision happening next week, as well as china's pmi. securitieses today, -- those are be investigated by a regulator right now. for a legend rule violations.

close to 9%. we talked about this all week. the ceo and chairman is still missing. they did send inspectors to the office. suspensions, the still waiting on a statement on that. anna: yvonne man with the latest. five minutes past 6:00. france and russia agree to coordinate strikes against syria to increase the focus on jihadist militants. >> president clinton and i -- president leonard hamilton and i will exchange council of all kinds, notably between our armed forces. the accounts of the islamic state will take place in a coordinated fashion to increase our effectiveness, particularly attacks on the transport of oil. thirdly, and president has given support your, the forces fighting against the terrorist

groups must not be affected by our actions. need to hit them and daesh. anna: president francois hollande was rallying support. ryan chilcote is in moscow. merkel, and now lender putin are all on board. has francois hollande succeeded? ryan: in terms of the pledge that he got from vladimir putin, the russian president planning to coordinate strikes with france. and also to avoid, using the russian president's words, going after moderate forces -- by not just the islamic state but of course the syrian government, itself. if the russian president makes good on that pledge, that he made at that press conference yesterday, and the talks with the french president, that would indeed be progress. but the united states, many of the u.s. allies are fighting in

above,bombing syria from they complain that the russians have been going after pretty much everybody but the islamic state read because their main goal there has been to prop up bashar al-assad, not to go after the islamic state read but if vladimir putin keeps his word, as the french president suggests he would, that wendy be progress. and progress would be the most we could expect out of this meeting. anna: yes, indeed. a major slideshow to all this, that is the geopolitical situation. what about the economic situation, the fallout from turkey down in the russian airplane? we understand letter putin has ramped up sanctions. morning, itday looked like it might because medic -- the introduction of sanctions, restrictions on

turkey. then it got worse. the russians announcing they will not just be parting with furniture, children's close, and food, and were a lot of food is coming -- a lot of vegetables -- coming from turkey after russia imposed similar restrictions against them, but the russian prime minister then spoke and said that even turkish companies could be banned from doing business in russia. no specific measures -- but very serious rhetoric coming from the russians suggesting they have prepared the economic embargo, this trade war with turkey right to the hill. anna? anna: ryan, thank you very much. ryan chilcote joining us from moscow. ekerre joined by hans red from morgan stanley.

good morning to you. let's talk about the geophysical angle. is this playing out in your fx fear right now? certain currencies in focus. hans: while i remained generally bearish, i will also say the russian ruble is not that bad. of course, we have to increase the risk premium in the ruble. but when you look at other factors, they are quite supported for the ruble going forward. russia is back in play. you will see that the sanctions against russia are going to be reviewed. so thquestion is, they are seeking this alliance against state, iislamic think it is very unlikely. i think you will have a partial list of the sanctions, which should be positive for the currency.

secondly, there is a restructuring story taking place in russia. third, when you look into what happened the last couple of years, a significant decline in the russian ruble. fromhas allowed revenues exports of oil and other commodities to be less hit when compared to others. i think that is going to stabilize, as well as the local investment. so the outlook for the ruble is not as bad as far as emerging market currency goes. anna: some people have suggested in that very seat that there could be this rapprochement that could be seen as traumatic for the ruble. but on the other hand, the russian economy, it is still entrenched. you seem to believe in that? hans: the structural changes in the economy are visible. on the oil price, of course, we have to admit that there is quite a bearish factor going forward. if you want to play that on the

oil-neutral way, you could buy the russian ruble and say you take canada or norway against it, you take the oil and get it out of there. on a relative basis, the ruble should be ok. it is no longer perceived as weak as a year or two years ago. anna: geopolitical influence on european economics, perhaps, as you describe it, you and the dutch prim finance minister talking about short-term investments. how is this changing the landscape, do you think, from that perspective -- from the fiscal side? hans: when you take a textbook, you say there is a better fiscal approach, fiscal expansion is a currency support. i think that could have some small stabilization into the euro. but beyond that, you need to look into the growth potential

of the european economy. how much -- all economists estimate the growth potential at 1%. it is inevitably lower than it used to be. the question you have to raise, how can you generate a return of let's say 2.5%, as many pension funds in europe are supposed to do, within an economy that has low growth potential? that actually means the real money accounts become exporters of long-term capital. i think that is going to take the euro longer. you have mentioned this before, we have seen the euro in a losing state environment for some time. at one point, and i think it may be around early december you will have a rebound in the currency, but i think that is going to be short-lived. and providing opportunities for selling. anna: we would talk more about the euro. hans, join us for morgan

stanley, thank you coming up next, the inflation gauge is falling for the third and month. -- isimulus on his way stimulus on its way? that is coming up, next. ♪

anna: welcome back. here in london it is 16 minutes past 6:00. let us get to the bloomberg business news. chartered is up against another hurdle when the bank of england releases stress test results rate last year, regulators stepped up scrutiny on exposure to emerging markets. like others, they generate most earnings in adrian aiming to see what the perspectives found for the superjumbo, the company is pitching a new version, said to be the ideal congestion buster

for carrying children to mecca. ceosaudi arabian airline said he declined to comment further. and goldman sachs as appointed england's new national rugby coach to the of eyes report in japan. eddie jones will join the board. he recently coached japan's national team to win an unprecedented three games and this year's rugby cup. for more on the stories, had to bloomberg.com. anna: interesting search for talent there. thank you. let us tell you what is happening in the asian trading session. the shanghai extending losses, it was actually down as much as 5% a few moments ago. now down by 4.8%. brokerages, and also we have had weak industrial profit numbers come through the for the month of october, underlining the weakness in the manufacturing story.

and underlining the crackdown on the finance industry that is taking place, ever since we saw that route in equities this summer. that is the chinese market at the moment. let us turn to japan. core consumer prices fell for the third straight month. cpi fell and the jobless rate the lowest in 20 years. we in tokyo with a closer look of the data. what does the consumer spending number tell us there? that is another part of the story. plenty of data out of japan. what does the number tell us? >> there are several aspects to that number. the court cpi number which excludes fresh foods was down, hovering around zero. andif you look at all food energy, there was actually a rise in the number. that is what the boj will probably be looking at. governor corona has said the inflation numbers are improving. if you look at the core, that

could be the. in terms of whether that will tell us much about further easing by the boj, it is unclear. different aspects of the number, you can look at it different ways. unemployment is a good number, the lowest in 20 years. but labor force participation is down. and the overall labor force has actually declined. wages ofd basically, not been keeping up -- even though you have a very strong labor force. and that also meant that household spending numbers were down as well today. anna: jodi, thank you for joining us. setting up that conversation for us. let us get another perspective. umada joins us from hong kong with analysis. the to have you on the program. in japan, we seem to have core - -core when it comes to

inflation. tell us what you look at? the indices are a bit silly. there are far to many and confuses people. the number we are looking at and a number i recommend you should are theng at too core inflation index around the world, the cpi -- excluding energy and food. now japan is really the only advanced economy or they call for inflation and index them and only excluding food. that, minusok at food and energy, the boj inflation index is up 1.2% year-over-year. still far off at 2% target. but definitely moving in the right direction. isis more importantly, it starting to move more steadily at the beginning of the year. and of course, over the past 20 years, it used to be negative.

that is really a very, very good development. anna: we have an interesting situation with the unemployment picture in japan. a 20 year low on unemployment. the government has been trying to increase participation, get more women in the workforce. what is that really low unemployment number, the tight labor market, tell us about japan? mikio: partly, it is demographic. the labor force is shrinking, as were journalists correctly pointed out. and so it is not entirely due to a strong economy, of course. and you need to increase both the size of the labor market by basically involving more women in the workforce. that is however a social issue. social attitudes, whatever the government would like to do, they simply take more time and told they unfold in a broader way. i think we have simply be more patient. but the big picture is still moving in the right direction

there, as well. the: what do you make about conversation about more quantitative data from the boj? does the data today play into your thinking? mikio: well, you know, if i had to make a choice, i am probably in the camp that doesn't really see the need for qe in the future. theill depend on what federal reserve does next month, and also the ecb. but if you look only at the domestic japanese economy, the case for qe is not that strong. all of the nominal aggregates are moving in the bank of direction. i think they will wait to see what the fed does, how it plays out, before they make a move themselves. anna: thank you for joining us. capitaltrategist at lgt partners there in hong kong. hans is still with us from morgan stanley. weigh in with your thoughts on

the japanese debate. will we see more qe? boj: my guess is that the have to change behavior. it used to be progressive, but it is now converted. that actually means they will ease if necessary. but most on the monetary side, to break the disinflation there he room, that has been done. all of you on the market, the market is still looking into the disinflation equilibrium will still be there. what i mean by that is, when you ordersort orders and oil are weak, there should be more easing. what you need to look at, too, the service sector industry is picking up in japan. reading forat the

services, there is a higher-level level now than 2006. that is very important to break the disinflation equilibrium. the unwanted rate is declining because of the declining workforce, in a stable participation rate. but nonetheless, it is declining and they are showing tightness. wages are going to pick up. when they are picking up, you have an impact on consumer spending. last but not least, it is all about the high cash level defined in the sector in japan of totalt is about 22% balance sheet volume. one of the highest you find globally. why is that? because you have a corporate tax rate that is internationally not competitive. that is where japan is going to work/ . when you have now more fiscal

approach, less monetary policy approach, you/the corporate tax rate, in order to have higher dividends and more equity buyback programs. under that circumstance, it is a completely different set up -- compared to 2013. reason wes the worriehe are bullish. anna: you mentioned wages, something the government has pointed to. unemployment is low. corporate profits are high. why are wages are higher than they are now? hans: i think that is a reaction to that. when you have a tight labor market, it is a completely different competitive decision. the power is going to change into the hands of wage earners. and they will demand more. and as they make more, that is how you overcome the time lag. you should expect them being ahead of the other events, but it is lagging other events.

2016 come in a year, it is likely to show a year in japan where wages in japan are growing slowly higher. and you were talking about the poor inflation rate. and of course, it comes down from 4.9% to 4.7%. if you take the tokyo reading, there is a different picture. most important, when you look at the long-term perspective of where core inflation has been coming from, it is a straight line going up. i think that is important. so japan is no longer in this inflationary equilibrium, it is headed toward something new. last and the best argument for against strength, it is due to demographic. the pension fund industry is no longer increasing, it is declining because of the negative net cash flow in the pension industry for the liquidation of asset holdings. that may well include --

anna: we arty have three measures to talk about. hans stays with us. coming up, we're going to talk about corporate. debt debt. more on that story, when we come back. ♪ we live in a pick and choose world.

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anna: welcome back. 6:30 in london. let us get to bloomberg first word news. nejra: france and russia have agreed to coordinate strikes in syria to increase the focus on jihadist militants freed that is after president francois hollande and president letter putin met for three hours. they failed to bridge differences over bashar al-assad. today marks the kickoff of the holiday shopping season. but commerce sales surge, raising questions about how many show up for brick and mortar promotions for black friday. yesterday online sales are expected to total $1.7 billion. president ping announced a major

overhaul of the chinese military to make the world's largest army more combat ready. he told military officials that all branches of the armed forces come under a joint military command. he is also insisting that the military maintain correct political direction. and the euro is set for its longest stretch of weekly decline versus the yen since its creation in 1999. that is as anticipation builds that the ecb will surprise some investors the size of the stimulus next week. the euro is headed for its biggest monthly loss against the dollar since march. for more on these stories, had to bloomberg.com. anna: the shanghai composite down more than 4% in the session today, after some of the largest brokerages announced probes into the businesses. what is behind the drop in the shanghai composite? a real focus on the financials it seems. >> there's a lot going on today.

for one thing, we have had several security companies announced they are the focus of regulatory probes. the government does seem to be doubling down on the investigation into what happened with the stock market collapse earlier in june. that is one thing. we also had industrial profit data, it was not good data. and the third thing is, more signs of company defaulting on debt. this is something that has cropped up more lately. the six company this year announced it might not be some of its -- might not be able to repay some of its debt. signs of trouble broadly across the chinese economy today. anna: did we learn anything new about the state of the chinese economy? you have highlighted quite a few negatives. is there more evidence of a faltering economy? nick: i think the most worrying of those three is probably the bond default.

you can argue that it is a good sign that the government is saying we are going to let some of the struggling companies fail. we are not going to back them up. we are going to give the market a greater hand. on the one hand come you could say it is a good thing. there is so much debt packed into the system, a lot of people have been wondering when will the reckoning come? will companies be up to pay off debt? it is increasingly looking like they may not. that is really going to send tremors into the system. in the stock market is a real sort of -- it is very jittery, very short term. these are not warren buffett investors. any hint of trouble and they run for the exits. i think that is what you are seeing today. anna: nick, thank you very much. let's keep on the subject of global debt. a more global story, we heard that a renewable country is edging poster to becoming spain's biggest ever bankruptcy. and u.s. company bonds are

demanding some of the biggest premiums since the financial crisis. let us be to simon, credit strategist here at bloomberg. hans is still with us, from morgan stanley. simon, great to see you. does any of this worry you? the big picture perspective, before we look at the details in the market at the moment, the junk premium over investment-grade notes, does that worry things to come? simon: very interesting things to look at, given the context of other events with had recently. and that is the fact that some of these weaker high yields the countries have in feasting on, and the prospect of the fed liftoff in december, perhaps it will drift higher to the global yield. being higher in the u.s. these companies will become a lot more challenging over the course of the coming year. i think this is one of the key

questions that they have been going through, whether they can generate enough cash flow to service the 9 billion euro debt that they have. they have gone into protection, which gives them a four-month race areperiod. anna; if companies are increasingly having trouble paying their debt, maybe it is companies we are talking about, doesn't bode well for the economy? shale in the u.s. -- simon: from an investment on anctive, they focus idiosyncratic yield. we're going to get a much more careful and considered approach. and the risk is that in these know,ies, which now, you we have to see how much cash flow -- how many widgets are being made by these companies?

rather than cheap and plentiful credit to keep the lights on. anna: making no assumptions about what the ecb, the fed does -- what do they tell us? yield you alluded to the market. that has been steeping out ahead of the fed liftoff and anticipated. whereas in the eurozone, you have much flatter curse. ves. further stimulus from the ecb, the market is still considering given buying opportunity, the backstop from the ecb. i have a number of voices focusing in on debt. is that some in the flashes on your dashboard is a worrying factor? ons: we have been working this the past 14 months. you look at last year, we look pretty much into asian debt, and

we look into what does it mean when you have an environment of debt and overcapacity? when you have overcapacity, your return on investment is declining. and on the low end of this decline, the outlook that the global funding costs are going up, they have a major study that came to similar conclusions. in which we look into how much of the global decline in bond rates do you explain developments in the u.s.? our conclusion was about 60%. what is happening now, now that the u.s. is hiking interest rate, this is happening in an environment where the term -- and is relatively low a historic context. it means you cannot have a situation like in 2004, where lower bond rates were compensated with lower bond yields. the term premium is so low. they will go up, too.

we are in an environment where the fed will influence global funding costs. that is in an environment where the debt is high, return is low and falling, that must lead to deleveraging. that means savings, and in the case of asia, capital exports. where to? the core of the u.s. block -- the united states of america. anna: hans, thank you very much. we leave the conversation there. simon, thank you for joining us. hans stays with us. let's head to moscow. ryan chilcote is joined by the ceo of a company that is seeing that her days the most in the second. good to see you again. ryan: very interesting, anna. i am joined by not only the ceo of a big commodity producer that is kind of a surprising story in a sense that it is doing ok, at a time when most, as you know, are not. he happens to be the youngest ceo of any public company here

in russia. you do know this is the largest country. there are a lot of them. at 33, is that right? andrey, you are the youngest read a $5 billion business, the third-largest phosphate reducer in the world, when you look at your share price for say your london shares, you are doing ok. when we see this huge depression in the share price of commodity producers? what is different about producing phosphates? : some other general business, the difference is that we have the most significant fundamental business in our industry. so basically, people start to change from rice protein. again, that brings much more demand through the commodity.

for instance, china -- the largest consumer of soybeans. brazil, the largest exporter of soybeans. brazil is one of the largest customers for china. ryan: there is still some weakness obviously out there in the market. your peers say that demands increase from 59 million tons, this is the global demand picture, to 66 -- may be a bit more than that next. what you see happening? andrey: in terms of demand, since last november in the energy price collapse, there was a country that benefited from it. bring ae able to subsidy. andhe other side, brazil, makes production for the farmer much worse. not much better in terms of the economy. so i think the real demand is there.

the real demand for fertilizer is there. sees 66d if mosaic million tons next year, you say what? andrey: usually, we are a bit conservative that compared to most they. if you look at the real fundamentals of the business, year-to-year, quite significant demand from all of the countries. ryan: where do you see prices going? ndrey: today, we saw the reduction of prices. in our business, it is the off-season. the application is not finished. andhe end of december january, people start to buy again. demand for the application. aboutyour market cap is $5 billion. do you think you are undervalued? andrewy: sure.

in december 2011 we made an ipo of $14. today, we are 25% bigger in terms of volume. we are more profitable, the margin is 44%. our net profit is 23%. we are the most profitable company in the phosphate business in the world. ryan: we only have 30 seconds. russians tell me they are penalized on the discount, is there a discount? andrewy: it is true. consensus ofn the all investment banking analysts who cover our company, you would find the numbers 35% discount, it is very clear. today, our current multiple only the dots between 4% and 5%. if you compare us to others, it

should be a percent or 9%. ryan: thank you very much. we will be here throughout the day talking about president francois hollande meeting with a russian president, they met right behind me at the kremlin. more to come. anna, back to you. anna: ryan chilcote in moscow. up next, black friday on both sides of the atlantic. theirme have turned backs on this very american holiday. we take a closer look at the british experience, coming up. ♪

anna: welcome back. 6:46 in london. it is friday morning raid let's get to nejra. nejra: standard chartered commonly passed the assessment

last year, but regulators are stepping up scrutiny on the exposure to emerging market read standard chartered generates most of its earnings in asia. airbus is looking for a saudi order. the company is pitching a new 615-seat version that it says will be the ideal congestion lester for carrying children to mecca. the ceo said let's month that he was evaluating the airplane, but he has declined to comment further. and goldman sachs has appended england's new national rugby coach to the board in japan. eddie jones will join the nine member board. he recently coached japan's national team to an unprecedented three games in the rugby world cup. that is your bloomberg business flash. for more on the stories and others, had to bloomberg.com. anna: the friday after thanksgiving is known as black friday in the u.s. the shopping extravaganza has

been exported to european shores, not always with pleasant outcomes. caroline hyde has some analysis for us. caroline: it is pretty phenomenal. it will be quieter on streets, but online will be doing the heavy lifting. and the numbers are still somewhat i watering when it comes to europe. billion to be sold in the u.k. alone when it comes to online and high street shopping. that is 3 million pounds per minute to be sold in the u.k. on the back of black friday. the entire weekend will see a surge of almost 3.5 billion pounds. that is including cyber monday of course. the put this into perspective, the u.k. will spend more on black friday then spain, italy, the netherlands -- all combined. this black friday phenomenon has really washed over the u.k.

but some retailers are shying away from being on the high street so much. you are looking at pictures from last year. disaster,bit of a pr owned by walmart. they are the one that brought it over to the u.k. two years ago. 2013, it went big on black friday. there was such a physical damage in the u k that now this year they're not doing black friday at all. tesco is going to be slightly calmer. instead, having deals every single friday -- rather than this friday alone. but the pandora's box has been open. you're also going to have john lewis doing price matching, some higher end stores getting in on the christmas come early act. and amazon serving up thousands of deals in excess, it is really driving and expecting its biggest shopping day ever. anna: caroline, thank you very

much. another company taking part, the online retailer is inspecting a 400% surge in order today. joining us for the first interview today, is the ceo of the parent company of very.uk. why have you decided to participate in this, some that can have risk for brands? they have not enjoyed the experience entirely. >> well, i can understand their point of view. black friday does not increase the size -- customers are not buying anymore over the course of the agreed it does concentrate their buys into a short. . and it creates operational headaches. and a couple of governments providing discounts, when they grievously paid full price. i understand why some people stay out of it. it is not a great fit for them. for different reasons. but we like. and we are going big this year.

we expect a 35% bump year on year. it is a good exercise for our customers. it is not vanity, we are in this to make money. we think we can get a good deal and make money. anna: outs, when you make the most money? it looks busy behind you already. it is only 7:00 this morning. alex: as you can see behind me, we are warning already. we have been going since midnight. we think about 9:00 a.m. to 11 a.m. will be our biggest time. all they can we expect it be busy today. all day, we expect customers to be rushing out to get the tech and toys that we are giving them. from our point of view, the reason we think this is a commercial exercise, it is part of because we have great relationships with the supply traders -- you can negotiate good deals on behalf of your customers. but also, this is a great time to find new customers. we aim to acquire 100,000 new

customers over the course of this black fortnight. over half we expect to trade again. that means healthy long-term profits for us trade anna: is there a danger of always expecting deals, that seems to be one of the issues over recent years? i think it depends on who you are. i can understand some not taking part, next customers do not expect deals. i can understand others not taking part. if you are about every day low pricing, it could be counterproductive to offer surprise discounts. i thought i was getting it for year.est of the exciting promotions throughout the year, our customers love the deal. we are the first to respond because of the relationships we have with our suppliers. over 12 months have gone into

this. we can make our customers happy and ourselves happy, as well. the: in the u.s., they have thanksgiving followed by this materialistic black friday. here in europe, we don't get thanksgiving. binget get this sort of spending. does that were you at all? alex: well, you are right. i don't think many very customers were cutting into thanks giving turkey yesterday. this is not a big deal as far as the festival is concerned in the u.k. and you are also right that black friday has been a u.s. import. but it is here to stay. and the choice for retailers is do you participate or not? and if you do, how do you make it work for you? we are participating because it is a great fit for our customers, products, for the supplier relationships we have. and it is great for new customer acquisition ambitions we have read last year, we proved we can

do this profitably. we and do the same again this year. anna: alex, thank you for joining us. the luck with the day. the ceo of shop. hans is still with us, global fx strategy at morgan stanley. let's talk about the ecb, what we are expecting in december. there is all kinds of speculation right now, an expectation and anticipation ahead of the meeting. how drastic, how surprising you think mario draghi will be? hans: the expectation will be to deliver again and again until the market embraces for that. and the accommodations and the comments coming out of the ecb suggests that the ecb is committed to stabilize price expectation. they're looking pretty much into global risk. they see that over the past six months, it has become more uncertain. therefore, they are considering,

the quantitative easing -- to increase the maturity of the program. and maybe as well, the pool of eligible assets they're going to buy. exchange markets, that is entirely what you see on the deposit rate. now if those commentaries which recently have been flying around based on the comment by an unnamed ecb official, if they are about to split the deposit rate, actually, the ecb may consider to offer a bigger slash in the deposit rate. something like going in the direction of switzerland. and if that is the case, you could have the euro getting hit again. but then we have to consider as well the market which is already positioned for that. i think that the market is going to be very reluctant to take those bets ahead of mario draghi

the given his reputation. after that, i think there will be a period you have profit. after this sort of december we have had some you have open meeting. then you have the fed, they're very likely to go into a dovish rate hike. maybe that week is the week of profit making. anna: it is a busy week. parity? hans: the risk is certainly the lower euro levels. and when you think about what could prevent the euro from declining at the current rate going further, if you get the turnaround in risk, that would actually stop the export of long-term capital. so if we would enter the year with, let's say, the s&p declining sharply, the you pro-dollar will stabilize. and you can take emerging-market currencies. redeker, thank you

for joining us, from morgan stanley. we will take a short break. could the ecb disappointed? we will have further analysis. and we will keep a look at the chinese market, a very weak trading there. ♪

anna: putin escalates as russia starts cutting economic sites to turkey. francois hollande agrees to coordinate strikes in syria. will druggy deliver? the euro is on course for its longest weekly losing streak against the yen. ecb fireworks next week. retails big day. we look at the winners and losers. welcome to "countdown." i'm anna edwards. it is 7:00 in london. let's take a look at what's happening on the markets.

we were tracking what has been a pretty weak session on the asian markets, the chinese market in particular. how is that going to read across into the european session? down in the middle of your screen, euro stocks is down by around 7/10 of 1% at the start of the session, the ftse and cac and dax all seem weaker. generally a weaker picture on these markets. that is our expectation for the start of friday trading session. let's get the bloomberg first word with nejra cehic. nejra: france and russia agreed to coordinate strikes in syria to focus on jihadis militants, after putin and hollande met in moscow yesterday. they failed to bridge differences over syria and assad. today marks the traditional kickoff of the holiday shopping season. howaises questions about

many shoppers will show up for brick-and-mortar promotions for black friday. according to adobe systems, yesterday's online sales are expected to top $1.7 billion. xi jingping announced a major overhaul of the military to make the world's largest army more combat ready. agency, heo a news told military officials that all bridges of the armed forces will come under a joint military command. he is also insisted that the military maintain "correct political direction." the longest stretch of weekly declines in the euro since 1999 as anticipation builds for the the size of the stimulus. that is headed for its biggest monthly loss against the dollar since march. for more on these stories and more, had to bloomberg.com. anna: let's have a quick word on the u.k. housing market.

figures are coming through at a .1% increase, an estimate of .5%. the year on year number is also looking weaker, coming in at 3.7%. nationwide estimated house price numbers from the u.k.. let's check in on yvonne man. real weakness coming through in the chinese market, even in relation to the rest of asia this morning. yvonne: that's right, anna. china is spreading across the asian pacific. we ended with the shanghai down 5.5%, the biggest drop we have seen since august. a three-month low. that china industrial profit was one big black spot, falling 4.6% on year, five straight months where industrial profits have fallen. we also have this security on manyr track

brokerages in hong kong and china. there is also a lot weighing on the yen, as we talk about that later. the nikkei is down one third of 1%, ending the day. we are still in a tug-of-war on that ¥20,000 mark line on that extra and as we saw, japan budget coming from the prime minister this year providing cash for pensioners to help with the tpp deal. we also have jobless numbers at a 20 year low and the so-called higher, which has been rising for some time. let's talk about the yen. a lot going on next week -- the imf will be deciding on whether to include it as a reserve

currency. look -- there is concern that the weighting will be stronger. there was a little bit of weakness, but you take a look at the six month chart, and we are at the level we saw back in august, when there was that devaluation. morgan stanley expects the yen default to 6.91 by the end of next year, a 7% drop. let's take a look at some movers here in japan. we saw a rebound in the industrial metals, this smelter boost today and mining also rose. of course these probes, the big story in china, a weak sentiment insecurity. -- in security.

10% in thet down shanghai market. this is another one being investigated -- the ceo still remains missing. we see this ramp-up, this intensification of these efforts to put blame on the stock market route we saw. certainly destroying the calm the chinese market we saw after that rout. yvonne man there in hong kong. japan's core consumer prices fell for a third month of october. core cpi fell by 1/10 of 1% while the jobless rate reached its lowest level in 20 years. jodi schneider is in tokyo with a closer look at the data. good to see you. what does this inflation data tell us? we had a raft of data and there were so many measures of an nation in japan -- tell us the top line. jodi: the core issue mentioned is the number that had dropped,

that just excludes fresh food, but includes everything else. that is near zero. it is pretty far from the 2% inflation target. thatore core rose, and excludes energy prices and food. that is a number that the boj is going to be looking at very closely. kuroda has said that the trend is improving, the inflation trend is improving, and this could give some backing to that, support to that view. it really is causing economists to be split on whether the bank of japan will further ease in the next few months. they have a meeting in december. a few economists surveyed think they will ease, but have think they will not, but they will stick with this inflation trend even though inflation is by one measure quite well. anna: interesting.

i talked to morgan stanley earlier and he said that the boj moved from enthusiastic to reluctant. thank you very much, jodi schneider from tokyo. that is the picture in asia -- let's move to russia. putinent hollande and coordinated strikes in syria to vocus on jihadis the militants. >> president putin and i are in agreement on three basic points. first, we will exchange information of all kinds into notably between our armed forces. the attacks against the islamic state will be intensified and will take ways in a coordinated action to increase their effectiveness, particularly effects of the transport of oil. president putin has given support that the forces fighting against daesh an terrorist groups must not be affected by our actions. we need to hit the terrorist groups and daesh. anna: hollande was in moscow during an intensive week of

rallying support against the islamic state. ryan chilcote is in moscow -- good to see you. cameron, obama, merkel, along on board. has he succeeded in his aim of getting everyone on the same page? ryan: maybe. maybe just a little. i think the biggest take away from president putin's press conference with the french president yesterday was when he said they would try to avoid areas where there are members of the so-called "moderate opposition" to bashar al-assad. that has been the biggest criticism of russia's bombing campaign so far, that they are going after assad's enemies and not just the islamic state. if the russian president keeps to that pledge and felt that pledge -- he has made that pledge before -- and that would be progress. but i think there were many signs of continued differences

between france and russia as there were agreements. one of those would be about assad's fate. the russians said that president -- president clinton said that bashar al-assad would be a natural ally to russia and the west in its efforts in fighting the islamic state, whereas the french president says he has to go, he has no role of france's future. too early to say -- let's see what the russians do not a president hollande is there. anna: there is something of an economic sideshow taking place, the impact of turkey's downing of a russian plane. understand that clinton has no ramped up restrictions against turkey -- the lesson on the details. ryan: president clinton ratcheted up the rhetoric, and than we heard from

the russian prime minister, who has been charged with preparing these sanctions. he testified and said he has given his government two days to do it and that they should be very, very serious. have a listen to the kinds of documents he said need to be prepared. documents the russian government is working on will be about the introduction of restrictions for turkish structures and the territory of russia. restrictions that bans on product imports, on implementations of services provided by turkish companies and other restrictive measures. have the russians post-sanctions against the eu, and on eu food imports, that didn't have a huge impact on the eu like these sanctions may have on turkey. you look at the effective travel ban that is now in place,

russians made up more than 3 million tourists that traveled to turkey in the first nine months. the single biggest destination for russian tourists anywhere in the world, and they are the second biggest source of tourist for turkey after the germans. they even have a kremlin the med resort. fact that those tourists will be going in those numbers is a huge problem, particularly from an economic perspective if you think about the current account deficit in turkey. the russians and the cash they brought in helped to offset that. if that isn't helping, it will put a lot of pressure on the lira. the ruvell has been hit but the lira has been hit much more. anna: i understand that 12% of tourism revenue in turkey comes from russia, so that could be a substantial impact. ryan chilcote on the rooftops in moscow. michael franklin is that both

for security where he oversees more than one billion pounds in assets. good to see you. geopolitics in some investor context. do you see an impact from the geopolitical tensions? we were looking for reaction in gold and oil but things are more nuanced now. klin: after the paris attacks, markets rally -- they are incredibly hard-nosed about these things, and they will look through the events in that situation. markets continue to power up until there is a big conflict. the issue we have got in syria and iraq is that so many people are involved, you feel the potential for something to go wrong, something even worse to go wrong between the allies there. it is quite huge. that could pose problems. anna: that is a big unknown. in terms of what you do know

now, you do have some interesting calls around gold, or at least around one company. is that a call on the gold price? ours is a very efficient producer so they are quite well insulated. they have industrial production around $700, and that is quite a big upside. technically the gold price looks as if it is falling a base with the need for recovery, although that may change quick quickly, but at the moment that is the way it is looking. at is partly a play on the company and the commodity. otherwise we are quite lucky in the u.k., because we have reasonably strong underlying economy, and we do have opportunities here. as long as we can look inside the u.k., we can continue to focus on that. anna: is that your fear -- your made interest. what are you interested that house builders? we had that news from george

osborne about doubling the government investment in the housing market -- what is that mean to you? mr. franklin: apart from the initial reaction, you have to look at over the next one or two years to see how it goes. we have the luxury of conservatives -- we know which party is in and how long it will be there, at least in theory. we do have the issue of what will happen in the eu in the referendum on that. that will create uncertainty. otherwise things are reasonably on track. the autumn statement pointed to the assumptions that george osborne made, that we would have quite a strong growth, and he justify the changes he made. if we get that growth than he has a big problem. so for the moment it is ok. anna: michael franklin stays with us a little longer on the program. can china neutralize its pollution output?

the world's worst polluter is amassing clean energy capacity to levels that counsel out its carbon dioxide emissions. a special report from beijing, up next. ♪

anna: welcome back. 19 minutes past 7:00 in london. let's get to the bloomberg business flash. standard chartered is up against another hurdle next week from the bank of england, releasing their stress test results. although it comfortably past assessments last year, regulators are stepping up scrutiny on exposure to emerging markets. hsbc generates most of its earnings in asia. considering the sale on contact lenses. 3%.unit overall grew the proposed sale is that a preliminary stage in the company may decide against it.

at goldman sachs, a new national rugby coach to the advisory board in japan. you will join the nine-member advisory board on january 1. he recently coach japan's national team to the rugby world cup. that is your bloomberg business flash. anna: china's emissions of are forecasted lower this year as it ties to tackle climate change. bloomberg's stephen engle reports from beijing. chinaephen: shook northern saw the return of the dreaded air pockets. the clouds were so thick that the government warned people to stay indoors. the seriousness of the situation reaches far beyond what we can see, suspended in the air. thentists increasingly link

environment to disease and climate change, as punctuated by jack ma. >> when i was 12 years old, i and io swim in a lake, almost died because the water was much deeper than i thought. five years ago, when i went to that late again, it was dry. a lot of people have disease. two years ago, very few people have heard about cancer, and now most of families and friends have cancer. stephen: from rancid waterways to breathtaking air-quality, china has had a hard time hiding its pollution problem. as winter sets in and the temperature drops, coal-fired power plants will start cranking nasty stuff that gets clogged in your lungs will start going up. this, once again, becomes the face of modern china. that's not to say beijing is in trying to scrub the air, and its

image. beijing does have blue sky days themthis one, but to get consistently the government is putting a lid on some of its biggest emitters. ofs smokestack has been part the city skyline for more than half a century, usually billowing black and soft. however at the end of march, beijing shut it down. beijing is trying to clean up its notoriously smoggy air. and investors at home and abroad are taking note. >> the chinese economy being emphasized by beijing -- if you're in pollution cleanup, there will be finds the matter where you are. >> it is building more windfarms than any other country. in the last five years they established many gigawatts of new power. 130 has come from coal and this year we are expecting 25 from

wind and solar. stephen: an upside to china's strong economy is its burning of fossil fuels at a slower rate. to bad urban residents can breathe slower until or if this eventually blows over. for more on sustainable investment, a miss chamberlain joins us now. us is mikewith franklin from both ford securities. thank you for coming on. when you look at sustainable investment, are you looking at it through a moral lens or because to ignore those risks could have financial consequences? mr. chamberlain mr. chamberlain: very much the latter. i think it often gets mistaken and setral perspective

of things like climate change, which we look at when we look at investment. anna: do you have an issue with getting enough data around it to make the decisions that you need ? guest was saying that it is sometimes quite a challenge to get hold of the underlying information to tell you how sustainable a company's products or processes? mr. chamberlayne: i think the data is improving a huge amount at the moment. there are a lot more providers of the kind of data that we would look at, so that is appreciation of longer-term risks an opportunity. s, and alsomsci, ir true cost, measuring carbon footprint. that is a very topical thing at the moment, with the u.s. sector in such poor performance. anna: talking about your

thoughts on coal and oil -- i spoke to an investor in favor of environmental and social governance. he says he doesn't shy away from investing in oil company because it is better to influence a strategy. does that hold water with you? mr. chamberlayne: i think there is a risk of confusing a moral debate with an investment debate. a lot of the investment debate comes from whether you should or shouldn't own carbon intensive businesses. sometimes that is confused with a moral debate. i think there is a very strong investment rationale to not. it comes back to climate change, which there are large investment implications with this issue. in fact i think it is one of the largest investment issues of our time. if you look at the data, and from my perspective there is a huge amount of consensus building, if you look at the data it is very simple.

we have a carbon budget in terms of staying within a two degree limit. effectively with can only in ite so many times. -- so many tons. if you look at the amount -- anna: do you invest with an esg hat on? mr. franklin: sadly, no. tobacco is one i am wary of but that is on personal grounds. we don't have a mandate specifically for that, but if we did we could take account of it. that itit is the view makes sense to do things on a sensible basis. anna: stay with us, both of you. thank you. coming up, calculating london's

prime real estate. housing is next. ♪

anna: welcome back. the sun is just coming up in london. 7:30 here in london. from theirn update nejra. have: france and russia agreed to coordinate in syria after president hollande and putin met for almost three hours in moscow yesterday. the two leaders failed to bridge differences. today marks the traditional kickoff of the holiday shopping season. e-commerce sales surged yesterday, raising questions about how many shoppers would show up to brick-and-mortar promotions. according to adobe systems,

yesterday's online sales total to $1.7 billion. xi jingping announced a major overhaul of china's military to make the world's largest army more combat ready. heording to a news agency, told military officials that all branches of the armed forces would come under a joint military command. he has also said that the military will maintain "correct political direction." an update on the u.k. housing market -- nationwide reports that the housing market missed estimates for a monthly and yearly basis. it came in at .1% versus .5% in october. for more on these stories and others, had to bloomberg.com. anna: you have been looking at u.k. housing data -- let's get more on that. nejra: i have a nationwide report. it missed estimates for house prices earned for november, but also for the year so prices rose

not .1% -- rose .1%. the u.k. operation also showed a bit of a dip in u.k. house prices in november. this tends to be a seasonal thing in the u.k. where you get fewer people looking for homes ahead of the christmas period. much ofd scene is very growth in the u.s. housing market, and a lot of people are flagging this as a concern in terms of the lack of supply in the market. the royal institution chartered surveyors, saying that buying a home in the u.k. is just going to get even harder. they say prices continue to climb in october and that long-term prices are expected to rise by 4.5% for the next five years. in order to address the supply

concerns we heard from george osborne in a statement earlier announced where he incentive for u.k. homebuilders to build more homes. he saw a lot of homebuilder stocks rally off the back of that and as we are looking ahead, i can tell you that some of the best performers have indeed been u.k. homebuilders. the likes of tyler wimpey, the likes of berkeley, all at least up 25% year to date. anna: thank you. let's keep the subject of housing -- a new interactive track of london properties today. you.ve a sneak preview for adam bloomberg joins us now to tell us more. it is a map that we wanted to build so we could look at long-term trends in property and a snapshot of what's going on in london. at the moment you were seeing

nationwide data come out today. we wanted to build something durable off official data, so we have the u.k. land registry official statistics tracking all the way back to 2006. anna: and we have nice video. adam: you can see the map, the headline figures, sales volume, the most extensive properties. you can select different views, different london boroughs, you can isolate individual areas and find stories within them. london has actually fallen quite considerably in the past , if or so, and you can see you compare, you can see that the grass effectively has surprising boroughs outperforming central boroughs like westminster.

that will launch when we get the october data. anna: who does it aim for? investors, analysts? adam: there is a dual use -- there is information about private sectors in central london and there is information if you scan for areas where if you are a homebuyer, trying to find opportunities for your new home in london, you are able to see if somewhere is rising or falling, under par. give you an opportunity to find what you are looking for. anna: we spoke to zac goldsmith earlier about his plan for the london property market -- thank you for joining us. less than half an hour to go until the start of the european equity trading day. let's have a look at what futures tell us about the start of friday session.

looks like a fairly weak session, down by 7/10 of 1%, the worst on the cac. 24 minutes away from the start of european trading. a weak session of the asian markets, in particular around the shanghai story. brokerage businesses in shanghai, a couple talking about how the government launched opponents to activities and fairly weak data indicates a weak manufacturing backdrop again. the shanghai composite is down 5% over in shenzhen. the euro is set for its longest decline versus the yen since the common currency's creation in 1999. this comes as anticipation builds with fresh stimulus measures. michael franklin is still with us. we are also joined by richard

jones -- good to see you. what is going on with euro-yen? what is that telling us? richard: i saw that you had hans redeker, and i thought what he said was interesting. the boj has gone from being a progressive user to a reluctant easer. i think that is being reflected in the exchange rate. what i like looking at is the two constituent parts of this pair. you look at the euro and the yen, and a lower yen is much worse news for the beoj than the ecb. it is good to have the euro broadly weakening, but they are of the euro being weaker against the dollar and sterling as their primary concern. the boj, the dollar-yen is 46% of that index and euro-yen is

39%. i don't love the term currency wars, but if we take those as what's going on among central banks right now, euro-yen will have a nice bit of frosting on the cake for the ecb. anna: michael, do you look at the euro and think it has further to fall? i know you are mostly focused on the u.k. you look at the pound versus the euro. the euro is weaker versus most things. mr. franklin: obviously we are watching what's going on with the ecb and the extent to which that may impact the u.k. a couple years ago the u.k. was trying to recover and europe was on its back. we try to stimulate the economy and get it back up to growth but we are still in limbo with that. it is looking quite fragile at the moment and that is reflected in the currency. with also coming through

hans redeker -- how much expectation there is on what the ecb will do. there must be a real risk that they don't deliver something went everything we read talks about how big the effort will be for the ecb. richard: the risk is markets being disappointed by the ecb not unloading the entire bazooka next week. but if you look at it from the ecb perspective, the fed leader will impact the euro-dollar exchange rate. is the ecb thinking it will be aggressive? look at what happens after the fed does what it does, and then perhaps save a little bit of powder for the january meeting. if the euro has reversed its current weakening pattern, they can still have a little bit left. anna: some months ago, we were talking about one question -- whether the ecb would extend its current quantitive easing program. now there seem to be many more irons in the fire for mario

draghi on decisions they could make around this. that will be interesting, the balance of efforts. richard: loads of different permutations -- today expand kiwi, cut the deposit rate? how much? there are a lot of different moving parts here, and the scope for disappointment or and interpretation of they haven't done as much as market spot is open. i think will be interesting. anna: i thought it was interesting when we watched doors osborne on wednesday -- lost george osborne, he was giving us a brighter forecast for the growth the u.k. economy, and it highlighted a diversion to pass that economies are on, or at least the momentum behind it. mr. franklin: that's right. you have to look very carefully at how these currencies are relating to each other, and implications.

what's going on with the u.s. dollar and the fed, we are looking for interest rates to rise here until late next year and possibly 2017. it doesn't seem to be an issue. sterling is bouncing around between the dollar and the euro. we see some growth in all of that. anna: how much do you think mario draghi wishes he could wait to see what the fed does? chard: or does he think that he has first mover advantage? i'm not sure. i think he has a pretty firm ideas about what he wants to do. i think the timing before the fed is not material -- you will do what he wants to do. what the fed does will impact on i think he is prepared to do what he needs to do for his economy, and then react to the fed if you needs to. anna: mike, you think the fed will move in december? there is an increasing percentage chance. mr. franklin: yep. [laughter] anna: 72% now.

mean, you can't assume anything. you see changes in data coming out day-to-day. the fed might say -- look what is happening in shanghai. it may not be related, but they may be concerned that it is unsettling everything, and they have to step back. god help us if they do. with this market cycle, the current year is looking as if we make it something but with the fed delaying that interest rate change, it will have the effects of offsetting the market moves. anna: richard, thank you very much. richard jones with the ecb. like franklin stays with us. , minutes away from the start of the european trading day. what stocks to watch. black friday whether you like it or not. post-thanksgiving phenomenon arising in the u.k.

have retailers change their stance? ♪

anna: welcome back. 7:46 in london. let's get the business flash. nejra: standard chartered is up against another hurdle next week in the bank of england releases its stress test results. although it passed last year, regulators are stepping up scrutiny. generateshartered most of its earnings in asia. is aiming to steal a prospective saudi order for the superjumbo. they are featuring a new version featuring ideal congestion to carry pilgrims to mecca. this ceo said that he was evaluating it and declined to comment further on their recent comments.

sale of a contact lens care division. revenue fell more than 7% last year while the unit overall grew 20%. it is at a preliminary stage and the company may decide against it. goldman sachs has appointed england's new national rugby codes to the advisory board in japan. he will join a nine-member advisory board after coaching the national team to win an unprecedented game in this year's rugby world cup. for more on these stories and others, head to bloomberg.com. anna: thank you very much. minutes to go until the start of the european trading day -- but have a look at what it will tell us. over the last 15 minutes or so, those numbers have been improving -- we were expecting something weaker at the start of trade when we checked in. in trade, so that

tends to lessen the news flow and the volume but we are down around .5%. ks the start of black friday -- caroline hyde joins us with analysis. which retailers can we expect to move at the open? caroline: many are still embracing black friday -- like sainsbury's and home retails, very much showing off the where is you can get at a discount. it was really walmart and asda which led the charge on high street, embracing black friday and discounts before the holiday season. but that not only read to damage on their own profit but also damage their stores and customers -- fights broke out and it was a pr disaster.

the likes of the online world is what is front and center and that is why we are expecting close to 1.4 billion pounds spent in the u.k. alone, spending more than germany, spain, the netherlands, france combined. amazon in the areas of online growth has been leading the charge, amazon likely to see its biggest they ever in the u.k., one of 7000 deals. liberty and some of the high-end department stores and oxen street are where you can get to those companies. we are still expecting a bit of a rush for the deals -- perhaps slightly slower when it comes to the queues on high street. have a look at what stocks to watch -- sainsbury's and home retail embracing black friday and they could move on the open -- there were reports of a slow

area of growth on high street, online players that could do well. anna: i'm going to jump in because it seems we've lost your mike -- apologies. updateas giving us an and what to expect with retails. let's get back to mike franklin. black friday -- is this an event to participate in? mr. franklin: i have survived the experience so i tend to keep away from the stores. i can see the attraction of doing it online but it does strengthen the profile of certain companies when they can't deliver online. last year they weren't up to it and now hopefully they will be, but it does create problems. they also have to decide how

much of their christmas sales they will give up. withholding -- to an investor who was a knowledge and that it --sn't grow in the market they think it is worth doing. let's talk about your investment strategy. we talked a little bit about randy gold. parish elements is one of your picks and housing. mr. franklin: the sector had a good run already so we are wary about going for it again. we do look at the situations in the market from the bottom up -- we look at the technicals and the fundamental positions. it looks as if they are in for quite a good run -- they are well represented in the sector.

and we have also just put out a recommendation -- anna: what is the story behind that one? mr. franklin: they have exposure to the housing sector, though not in the same way but they stand to benefit. you still have a benign environment for people looking to take out mortgages -- as long as the economy holds up, people will be able to afford to move into properties and that is good news for house builders. anna: you don't think it has become wholly unaffordable? mr. franklin: given that interest rates aren't expected to go up until late next year, even though we could see some rates firm up slightly, i think there are still chances -- particularly if housebuilding gets into its stride with more properties coming on stream outside london or wherever people are looking. anna: another one you are looking at -- they are focusing on dissent, aren't they?

it is very topical. mr. franklin: after the terrorist attacks, that has come .ery much to the fore governments are shifting their priorities. the way they have reacted to that -- more money is being pushed into this area. many companies stand to benefit. anna: it will be a busy december for investors. mr. franklin: i think so -- but we can't be sure. you just have to play it as it comes from day-to-day. you can't be sure which way the market will go. anna: thank you very much. michael franklin. we are minutes from the start of friday's equity trading session -- let's get to jon ferro who will be with us during on the move. jonathan: one number matters -- 5.48%, the fallen

chinese stocks, the biggest drop since august. the sentiment is clearly in focus, industrial profits slumping into the widest rocher firms -- they could spill over in the early part of the session with futures down by 40%. geopolitics is in focus as well. russia starts cutting economic ties with turkey as hollande and putin agree to coordinate strikes. the odds that, the effects market -- a seven-week losing streak, a record. we will be discussing it in the next hour. anna: plenty for them to get ."to during "on the move the euro set for its worst losing run since 1999 -- perhaps ever, if you think about it

starting when the euro was formed in 1999. that pre-ecb chill. it is weaker against many of the major currencies except the danish currency. he will pick up on that -- and also the chinese equity markets. that is what we have to deal with into the european session. the ecb ratet, decision on thursday, opec on friday, and friday is also u.s. jobs day so look out for that -- crucial running up to the fed decision. have a good weekend. ♪

jonathan: good morning and welcome to "on the move." i'm jonathan ferro, here in london, minutes away from the start of european trading. plungesghai composite over 5% after chinese industrial profits slumped into the country's largest grocers. escalation risk as russia cuts economic ties to turkey. putin and hollande agreed to coordinate strikes in syria. the euro is on course for its longest weekly losing streak ever since the japanese yen. ahead of the open, the front downis down -- the ftse is

-- looks like it could spill over into the open. let's get the market open with caroline hyde. caroline: shivers down the spine of european equity investors -- a downward day coming after three-month highs, concerns once again about the slowdown in china. you will be hearing from evil a man in hong kong. and investigations into brokerages -- down goes the ftse , and we expect an overall down day across europe. we are also concerned about where metals are heading today -- that will affect oil majors. central banks -- what will the ecb do next week? what will the federal reserve do mid-december? could we see the end of stimulus in the united states?