manus: oil investors increase their short position at the fastest pace in about a year as they lose confidence that opec will reach a deal. at the algerian energy minister tells bloomberg that this time around, the meeting will be different. doha, iran was not present. they will be present in algeria. manus: labor pains. jeremy corbyn wins the leadership contest. division however, remains. we are live in liverpool with

more on what this means for the brexit process. and currency call. japan's former feivice finance ministers says there is more room for the yen to run. this is ahead of kuroda's speech. welcome to "countdown." i'm manus cranny. anna: welcome to liverpool. i'm anna edwards, live at the labour party conference. hismy corbyn titans hightens grip on power. what does that mean for international investors? that could have an effect on the brakes the negotiations. they could have implications to how interventionist we see the opposition here in the u.k.

we will hear from the shadow finance minister later today. ofsays that windthe winds globalization are blowing in a new way. the conversation we will be having this morning is very much influenced by what is happening in algeria and the comments you just brought up about what we can expect in algeria. manus: absolutely. and the prospect, anna, as well, trump and clinton go head to head in a national debate. where the price of a barrel of the saudi and will nation return to a swing nation? let's have a look at your risk radar. equity markets in europe are little bit lower. the dollar-lira is at the top. the lira has dropped 1.8%. moody's cut turkey to junk.

erdogan says he is not that bothered about it. of course, snp cut the global ratings back in july. the lira has dropped by 40% since the federal reserve said the extra stimulus measures were finishing in 2013. the algerian oil minister, saying that actually, saudi arabia will possibly agree to a cut in can output back to january levels. what would that mean for the market? we are waiting for kuroda to speak. there is a whole variety of opinions out there on the yen market. we will hear from mr. yen a little bit later on. gradually, the yen will appreciate. japan's economy can cope with 9 5. it is the best performing her

and see around the world. by the way, the currency devaluation, are they pushing the exports? not according to the bloomberg story. we have gold at the bottom there, anna. animatedpretty week last week. but the bets on gold are changing. anna: that is an interesting line on currency. mr. yen told bloomberg that he thought if the yen got to 90, and then to 80, that is when they would start conversations with the u.s. about combined action. now it's good to be bloomberg first word news. reporter: saudi arabia says they have stepped up efforts to support lenders as they grapple with the effects of lower oil prices. the monetary agency in saudi arabia says they will give banks $5.3 billion. seven-day introducing

and 28 day repurchase agreements as part of its supportive policy. draghi will visit brussels with his increasingly urgent message that governments must act to bolster the economy. he will address a closed-door session on wednesday. one of his main concerns is governments are being too slow to implement structural reforms. the turkish lira has fallen to a seven-week low after moody's cut the country's credit rating to junk. the rising risks related to the external financing needs and weakening credit fundamentals weighed on the decision. this follows a downgrade by the snp, the failed coup, and his subsequent crackdown by erdogan. china's central bank has drained the most funds in seven months.

adds to speculation it is keeping a tight reign on supply is part of efforts to curb excessive leverage. the brexit vote has leapft 3/4 of ceo's saying they would consider moving their headquarters out of the u.k. 69% said theyme, are confident that britain's economy will continue to grow over the next year. and hillary clinton and donald trump will face each other in the first of three televised u.s. presidential debates. it will be moderated by nbc's lester holt. you can follow that from 2:00 u.k. time. sad news, arnold palmer has died at the age of 87. he won seven major titles, four masters, two british opens, and one u.s. open.

palmer was responsible for bringing golf into the mainstream in the 1960's. he was also a pioneer in the field of sports marketing. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. you can find more stories on the bloomberg at top . anna: thank you very much. we will certainly put that survey on brexit reaction on bloomberg. for the moment, let's get back to the market action and see how markets are responding to the oil conversation. juliet sally has the latest for us in hong kong. juliet: anna, not a great start to the week. in fact, asian stocks are continuing on the downbeat they had on friday's session, country bidding to that retreat from 14 month highs they reached during

the thursday session. member, the regional index was up by 4% over the course of last week. we are expecting to see trepidation this week ahead of the opec talks. we can also see pressure coming through from those energy players, despite that rebound coming through in asian trade. looking at the hang seng, it is up by .7%. we have seen quite a bit of weight is coming through from the casinos today. quite a biteen coming from the casinos today. there has been a lot of pressure coming through on it for stocks today. it is a pretty flat day in australia to round out the session. there have been quite a few movers in the region we have been watching. hanjin shipping deal is still going on.

it has about 40 of its 97 vessels now able to unload cargo. hanjin, up by 7%. by 6.5%.s up have a look at this big jump in hong kong. its parent company makes a bid to move. trading for the first time since the bid on september 14. manus: thank you very much. saudi arabia has offered to cut its oil output to january levels . that is according to the algerian oil energy minister. he spoke with bloomberg. nouredine bouterfa said the exporteriggest crude was willing to act on what he called a critical situation. saudi is a very important member of the organization. so, saudi is ready to do the

maximum for success of this event. it is ready for a freeze and ready to lower production. also talkedrfa about his hopes for this meeting. if opec hashat decided to meet, even in an informal meeting, that is because they think it is important. since the last meeting in june, the situation has deteriorated. now it is much more critical. it is important to see what measures need to be taken in the short, or even very short-term, to find a solution for the situation not benefiting any opec member. we are hoping, like the meeting in iran, that opec members will be able to make a decision, or at least the principles of a decision that could become country in the next formal meeting. reporter: what do you think is

likely to happen? production cuts? output freeze? importanthe most thing is to stabilize the market. if we do this, we will see your reaction in prices. so, do we need to do an output ofreeze? i think several scenarios will be studied. we should not forget the issue of prices. will come from a sequence of cuts or decisions. ine connanoly joins us now. why does the algerian oil minister have higher hopes for this meeting than the one in doha, which fell apart? >> the main difference between algeria and doha is that this time, iran is going to be here.

in doha, iran did not join the meeting and the saudi's walked out of the deal because of this. this time though, iran is here in algeria. also, we have returned him to pre-sanction levels at 3.6 million barrels a day last for asthma. th -- a day for last month. the possibility for a successful meeting is higher this time than in doha. he also said this meeting, which is supposed to be an informal meeting, could actually at anytime, if the ministers find a consensus, transform itself into an extra ordinary opec formal meeting that could result ina decision, or at least, set out

the basis for a future decision in thvienna in november. anna: so, the presence of iran could make the difference. what the potential scenarios are coming out of this? summary directions could be taken from here. -- so many directions could be taken from here. >> anything could happen. in fact, the last big production cut we have seen from opec in 2008 happened right here in algeria. in 2008, they decided on a cute supply cut. that is not likely to happen today. it is more likely we will see possible exceptions for countries like iran, iraq, libya, and nigeria. nigeria have hadhavb

to reduce output lately. they could be exemptions for these countries. if opec does nothing here this week in algeria, citigroup dicts it will bepre difficult to hold prices at $40 a barrel. manus: a great interview. a beautiful shot there, by the way, in algeria. our guest,now is chief european economist at jefferies. thanks for coming in. just listening to the algerian oil minister, this is what they are talking about. this is the white line in deciding oil production. they are talking about taking it back to january. they only this market around

$50, don't they? >> i think they probably do, yes. that would not be so bad for the global politics. l pricely, a firmer oi would be absolutely fine. so, you have a situation where particularly europe, especially with being very weak, we are in a situation where we don't want the prices to move that far. anna: david, good morning. if you compare the levels of production we saw from the saudi's in january with those in august, and now there is this talk of freezing around january levels, you would see a drop of around 5%. would that be material to the european economies that you track? >> i am thinking not, no. $60 a barrel, that would push up inflation.

that would be the issue. remainsif the price stable, that is absolutely fine. manus: the other chart i have got is the surplus. there are a couple big drivers int ht he the oil market. one is the dollar and the other is overall global demand. the surplus in the oil market are raging. these surpluses, you need global demand to really eat away here. that comes down to your prospectiv perspective on globad strength, doesn't it? >> it does. period of in this exceptional weakness in the global economy. things have not normalized. world trade is not very strong. this is an issue for the oil

market. it is helping these services diminish and the oil price normalized at all. manus: the ecb has given up on the thought of normalizing growth. i'm going to hold that thought. david, stay with us. you are the chief economist over at jefferies. coming up, highlights for your week ahead. the first of three televised debates between hillary clinton and donald trump. tomorrow, the 2017 budget forecasts. and wednesday, bloomberg markets hosts its annual most influential summit. thursday, janet yellen addresses the cabinet through a video link, i should say. on friday, we get another snapshot of the u.s. economy's personal spending data. anna? anna: much more is still to come

on the program. coming up, the so-called mr. yen makes a call on his namesake. more on that bloomberg interview, coming up next. in6:30, we are back liverpool with the acting director of the british chamber of commerce. more to talk about on the subject of brexit, and havow interventionist government policy should be. more on "countdown," coming up. ♪

anna: welcome back, everybody. i'm anna edwards, live at the labour party conference. manus: and i manus cranny in london. it is 1:21 in hong kong.

let's get to the business flash. reporter: thank you. angela merkel has ruled out any state assistance for deutsche bank. thisagazine that reported said the german leader has declined to step into the legal issues with the u.s. government. tudor investment has closed its singapore trading desk as part of a global shakeup, according to people familiar with the matter. will11 billion hedge fund maintain staff, focusing on quantitative research. the moves comes after tudor dismissed 15% of its workforce last month. and the german chemical maker has agreed to purchase the u.s. competitor for about $2.1 billion in cash. $33.50 ad pay

share, a 19% premium on the friday close. this will help laxess to expand its flame retardant't businesses. that is your bloomberg business flash. anna: let's talk about japan a little bit. we have heard from the former ,ice finance minister of japan also known often as mr. yen. today he said that given the monetary policy divergence between the u.s. and japan, some appreciation in the japanese currency is only natural. speaking to bloomberg, he gave his call on where he sees the yen heading. probably haveuld a slow appreciation. seeuld not be surprised to 1.90 yen at the end of next year. manus: would not be surprised to

see 90 yen to the dollar. he also defended kuroda's fiscal policy. >> shifting to the yield curve at this point is appropriate. his objective at this moment. you know, since he took over in march of 2013, his aggressive easing of monetary policy has worked. manus: david is still with us. currencies are famed as being great drivers of economies. de have pretty much poo-pooe the idea for japan. as the bank of japan lost control of the currency? >> i am not sure any central bank that the moment have control of their currency. it is difficult for anyone to engineer ewweak

currencies. i think they can still help, though they might not boost export volumes in how we expected, but basically, they do help margins in the export sector. they do shift away from imports. so, it does help. the problem with japan is it is quite a closed economy. it is not like that u.k or the eurozone, where they are much more open. for japan, they need a much, much weaker yen to generate the same kind of boost in gdp. but yes, currencies still matter, i think. reflectvid, how do you on what we heard last week from the boj? one economist said over the weekend at last week we had tightening, and then mr. yen talking about a stronger yen. at the same time, i had two

economists and investors last week telling me with a closer to helicopter money. >> we actually viewed as what happened last week as part of policy. gjb's,e to purchase basically, until we see inflation over 2%. it is also interesting about what happens next. jgb market,all the but a large portion of it. speculatingsors was about moving to an income policy as well, where you basically increase wages within the public sector, which is what the u.s. did in the 1930's. it could drive up for example, inflation. that was an option the imf thought the japanese authorities

should seriously look at. i wonder if we will see more out of japan over the next few months. manus: hold that thought,d david. more to come potentially from central banks. ♪

anchor: welcome back to "countdown." i am manus cranny in london. we should see what is on the front page of daybreak this morning. oil, that is what we are focused on. the unofficial gathering of opec nations, and the fading hope of a deal from opec this week. is it? -- aicate familiar with delicate familiar says not to expect an agreement. they are going to be discussing what is needed, but no great

announcement. oil is rebounding this morning. remaking nearly three quarters of its loss on friday. next story that daybreak is covering is the start of the program, and impact on the turkish currency. turkish cuts. in a review conducted after july's unsuccessful coup. we heard in that interview between president carte --president erdogan. manus: banks are never far from our new main headlines, and final torture "daybreak" this morning. angela merkel has ruled out any state assistance for germany's biggest lender in its battle for the potential $14 billion finance.

this is one of those stories that will not go away in terms of what deutsche bank has provided for on an accounting basis in terms of their potential liability to litigation in the united states of america and with what they may well have to pay in terms of fines. this is a very clear message if it is to be believed from focus magazine. daybreak.ur a lot of talk about the asian markets. stop that dropped the most in two weeks. oil has managed to eek out a rebound. talk us through the retreat in these asian markets. >> i was interested to see the stories in daybreak very much on message in terms of what is happening in your market today as well. it is a risk off day. we are seeing stocks down and bond yields coming down across a lot of asia. let us start with the msci asia-pacific index. we are down some a 10th of april .8%.- some 0

we are seeing losses in mainland china and in hong kong as well. about what is happening in the oil markets. this is the main focus today, why i have got it as my central chart. we thought wti.com is for wti droppedwe saw almost 4%. central bank's are going to continue pumping cheap money. i have got the wti rise in blue and wti short positions in white. money managers increasing their short positions in crude by the most in more than a year during and september 20. reflecting skepticism any kind of agreement could be reached at this informal opec gathering in algiers later this week after similar discussions failed in april. you cannot see it's a much here because it this is weekly prices. ped some prices, edging

higher that report saudi arabia has proposed cutting its production to january level of if iran cap it's output. finally, moving on to the turkish lira. emerging market assets in a hit across the board today. the lira leading declines. citing risks related to external financing leads and weakening credit fundamentals. the lira weakening over two days. over two days. it has hit its weakest over seven weeks. manus: great roundup on the markets. let us talk about politics. jeremy corbyn has held onto the control of the you k's opposition. a labour party taking 60% of the

vote -- 62% of the vote. john mcdonald addresses conference today. what he is expected to pledge, and interventionist labor government post-brexit. and is in liverpool. i will leave that to anna. good to be with you this weekend. to pick upall seem on the beatles theme. thank you very much. let us bring in our next guest and talk about what any of this means for business, what any of this that is happening for business. at a marshall joins us, acting director general at the bcc. he's going to talk later about a more interventionist policy. is against the free market. they want more intervention. what does this as have to say about that? interventionood

and bad intervention. good intervention is when a government comes in and create the fundamentals for business to thrive you read in the uk that means things like -- thrive. in uk, that means things like significant investment. newintervention is in intervention. that is start to worry. policiesterms of the you have heard about so far from jeremy corbyn and his party, anything that his business would be worried about? when you're talking about the policy, who decides which businesses are going to be supported is one thing that brings to mind. >> one thing to say about labour party policy is it is very embryonic at the moment. even before that election, their party policies were not clear.larly they were still formulating them. we are about to come out to ask

questions about the questions about the question that we want you in the business community. i think it is early days yet. to talk about what would've intervention labor would undertake if it were in government as well. anna: the start of a long process. manus. manus: very good day to you. i presume, apart from death, one wants to know about taxation. what do you think we want to sque from this corbyn-e johnna in terms of taxation? in terms of corporate taxation? >> i have to say, in business, and a lot of the businesses i see, there is little appetite for them. the uk has a competitive corporate tax rate in a lot of cases. it has got incredibly high input taxes, the cost businesses pay before they turn over money. thee are things we have british chambers are trying to

see cut. touches on employing people, on property, etc., are quite high and that actually is a this waiter. corporate tax rates the just right -- seem just right. or soft, what are you expecting to see, a harder or soft brexit. >> every day you see stories or here rumors that it has moved toward -- you see stories or hear rumors that it has moved toward hard or soft. in some sectors of the business community, it is seen important. in other sectors, there is no problem with the higher brexit because they are not trading with the eu. business in the uk is incredibly diverse. number 10 is controlling things so tightly. same: i have read the

plethora of articles over the , softd, hard brexit brexit, boris brexit, timing of this, what would be a hard, ugly brexit for your members? what is the worst case scenario if he said "my--, i cannot believe this has happened -- if gosh, i can't believe that this has happened. >> if we did not have the best possible terms of trade with the eu, if we did not have some source of negotiated agreement and had to fall back completely on wto rules. a lot of businesses do not know what they are going to lose until they lose it. negotiating that rather than having it come to a rough conclusion would make them happy. the want to see some of existing free-trade agreements at the uk has got grandfathered in some way because many of those were negotiated under eu

auspices. they want to see those become uk trade agreements in their own right. i will get on, grow my business with clarity. tellingremy corbyn was me the labour party is investigating, learning what they can from norway. not necessarily an off-the-shelf solution, but learning from them. other models you see a workable? >> they will not work for the uk because you have got a number of very small countries negotiating for a small position. we are in a different position. i think the prime minister is right when she says they need to be a uk specific agreement. we have got this interesting story. 76% of uk ceo's are considering moving their business away from the uk because of exit. you possibly speak to a

different constituency. what proportion are your members are saying we would move? >> there are some with production models are business -- or business models were saying they would move somewhere of myr i might move a bit business to a place that makes it easier to do business, but you're not seeing mass moves of any kind, and i think about that survey and i say to myself, 72% of ceos are considering moving their office. that happened on an annual or biannual raises anyway. they are always looking for the most advantageous place to move their business. if that were to materialize, where those became an active search, that is where i would become concerned. anna: thank you for giving your thoughts and early in the report. manus, let us come back to you. let us continue the conversation about what the british want from brexit. breaking news from japan as

well. manus: they want to get up early and come speak with you, anna. mr. corona, he is not -- mr. on the tape. pursuing easing any more forceful manner under the new regime, which we understand is targeting the you curve -- the u-curve. policy judgment should be based on economic impact on the old, and that he will keep making the up efforts to reach the price target. this all goes back to the announcement last thursday were the bank of japan said they are targeting the u-curve. to pursue easing in a more forceful manner under the new regime. dollar yen has not even blipped on this.

no real reaction, as it were, in the currency market thus far. kuroda doubling down in verbal interventions. we are relentlessly pursuing innovation, those lights coming from the head of the bank of japan. hardly effective to make a modest price commitment. let us return to brexit. anna mentioned the survey. kpmg e survey. that is according to a survey, 100 business leaders, on the accountancy firm kpmg. 69% said they are confident rich in's economy will continue to britain's economy will continue to grow. bit of a mirage that

we have got a good set of numbers, good confidence numbers, because we do not know what brexit really means yet. this set of numbers at the moment, which carney is being lambasted for, shows things are not that bad, and if we keep going at this rate, the policy response has ultimately been wrong. >> i am not sure that it's all right. at the end of the day, if they do not have access in august, the economy may have gone in recession. at the time, we did not know when they would trigger article 50. there would be no policy response. the economy could have gone into recession. we wait on next year and the 50ing of triggering article does really matter because we have got all of these elections going through next year in europe. you can imagine with a trigger it early in the year. who have this perception there is no deal possible. their feet.- with

the squeeze coming through the exchange rates is going to affect real incomes at some point early next year. tolation in the uk is going pick up. you can imagine the story where all this confusion around article 50 having been triggered, no deal on the table, we could tip into recession. it is still open. we do not know what is going to happen. there is to be a very good chance of further policy response in the uk. i would not rule out temporary reduction next march from philip hammond. the timing of triggering article 50 really does matter. anna: a tiny matters, and what is the timing thing that does the damage to the uk economy, do you think, david, because george osborne was talking about waiting till next year because of the other elections taking place in europe.

we are seeing some reporting, the telegraph reporting that big u.s. banks were putting pressure on the government to find out what the timing is going to be because they want to make plans. what is the timing that makes the best choice? difficult a very question to answer. at the end of the day, it would be better if it was later next year. no serious regression is going to start until after the german elections, so maybe october, november. we have got european elections coming through in may of 2019. a good thing if the uk at that point was exiting the eu so we did not have to go through being part of those eu elections. article 50u trigger before may of 2017. that obviously throws up this problem with triggering it just ahead of the french elections. who knows? i think we have got to be in a position to know what we want in the uk before we trigger it. i do not know how detailed these

discussions are going at the moment. i think at some point in the second -- next year, that is the best time. manus: one response. flawed?ing structurally a five-week low, it has not been the panacea in history to save british exports. >> in terms of helping current accounts, part of the issue with the uk swinging into a deficit was the fact that we had a major loss of investment income on our international assets. a weaker currency boosts those in sterling terms. it would help the current account problem which from keeping investors wishing to buy sterling assets, a good thing. manus: think you so much. david owen, chief economist at jefferies. coming up, the referendum, the italian prime minister is set to announce the date of the vote he staked his political future on.

we are going to cross to rome. that is coming up next. at 7:00 a.m., we have more with the algerian energy minister ahead of the informal meeting at opec. of course, we are going to talk tech. this is bloomberg. ♪

anna: welcome back to "countdown ," everybody. too.: i am in shock, and 1:51 in hong kong. let us talk about mr. k the banke governor at

of japan. let me tell you exactly what he has been saying. options including negative rates. dollar yen, no major reaction. every time the bank of japan seems to get more aggressive, yen teams to strengthen. the main tool for easing, short and long-term rate cuts. yield curve control. this reflects back to the comment last week from the bank of japan that they are targeting yield curve. yield curve control gives more flexibility with the jgb's that they buy. the fluctuation in jgb's reflects back to those comments y may change the amount of jgb's they buy in a given month. this is of course the shape and location of the yield curve will remain broadly the same. there is no better opportunity than now to overcome deflation. verbal intervention

personified. the dollar yen trades at 100.7. jgb's, a phlegmatic reaction from the jgb market. the bank of japan is determined it needed to make strong commitment. it report and invention, monday morning, from the governor at the bank of japan. jgb's 30 year government bonds at the bottom of your screen. up a tick. focus on what is happening in italy this week. a date for the italian referendum on constitutional reform is due to be set today. the prime minister's cabinet will approve new economic forecasts when it meets for conversations later on. for more, let us be with our room bureau chief. is not available to us. we welcome back to our guest in the studio. perhaps you can weigh in with your thoughts on how this all

goes in italy, waiting for this referendum on constitutional change, or does it have broader implications for you? >> it has certainly been an issue that clients have been concerned about. if you loses his constitutional vote, he falls, and then we have a state of uncertainty hitting italy. why, within the eurozone, italian bonds have been underperforming spanish bonds for some time. get concern may sort of worse as we go toward the actual vote itself. david: it does matter. italy can survive with no government for a while, but it is another concern for the ecb to announce something that is more aggressive in december because the timing of this italian vote is going to be very close to the december meeting on the ecb. manus: if you were a skeptic at rested andll me well

back in grinch form, merkel could be gone next year, and hollande could be gone next year. this could be a heady cocktail of big risk in europe. >> absolutely. manus: that is a whole other debate. merkel's first be driving the bus. if she is gone -- >> it is a big issue. david: cap with more pressure on everybody else to you doing more. -- that with more pressure on everybody else to be doing more. if you have got a situation where the politics is not happening, fiscal policy will not occur. the ecb is forced to do more of the same at the bank of japan. that is not where marriott drug draghies to be -- mario wishes to be. anna: he will be touring

european capitals, calling on governments to spend more. what kind of reception will he get when he goes to germany with that message? david: i think they are aware of the issues that things in germany have to change. obviously, we are not going to see him announcing fiscal easing. the scale of what is required to get europe going from the fiscal countries if the two is able to relax fiscal policies would have to do it by several percentage points gdp, and that is not going to happen. we are left in this world of week growth for the eurozone over all. politically, things next year will get pretty difficult. with the brexit discussions on top. from there you draw the, that -- from mario draghi, that is a huge issue. david, chief european economist at jefferies.

in another war of words is on the way. growth in supply is slowing, but is it? this is bloomberg. ♪

anna: bearish bets, oil investors increasing their positions. they lose confidence opec will reach its deal. the algerian energy minister told bloomberg that this time a around, the meeting will be different. >> iran is going to be present in algeria. it is easier to discuss with those around the table than those who are not here. labor pains. jeremy corbyn wins the uk opposition parties leadership contest, but little is resolved as divisions remain. poore live here in little

with what this means -- liverpool for what this means. " warm welcome to "countdown, everybody. i am here at the labour party conference. you have spoken to jeremy corbyn. he is back in power. what does it all mean? jeremy corbyn cementing his grip on power, increasing his grip on power in winning once again the leadership of the opposition labor party here in the u k. what does that mean for an international audience, for

international investors and businesses? it tells us how left-leaning the opposition will be. how electable it may be, that is something jeremy corbyn will dispute. opinion polls put labor well behind the conservatives. what does that mean for the current stability to carry on with their business as usual planning that brexit? we will hear from john mcdonald, the finance minister. he will be speaking here to conference in liverpool. what matters in terms of the overnight news flow for markets is the conversation around the oil price, what we can and cannot expect to come out of algeria. manus: where the oil price goes is going to dictate a certain amount of the risk. let us check in on the futures. we have a drop in equity markets around europe. 0.1%.wn about the s&p rallied those futures at

the top, lowered as well. down 0.2%. these are european equity markets go slightly better at bid last week. lower going to see this for longer. the fed is on pause. the bank of japan is adjusting its overall tone and intonation. let us have a look at the risk radar. dollar yen is one of the most closely watched elements in the market today. we had mr. kuroda, the head of the bank of japan, the governor of the ink of japan talking about the possibility of easing options including a cut in negative rates. this is everything the market had assumed was potentially off the table for a wild. dollar yen continues to strengthen, 100.85. this of course continuing to double the rate we lost 1.8% over the last two trading

sessions. we have a seven-week low. the leader in turkey, dismissing it as being quite an irrelevant -- you are touching a seven-week low on dollar lira. crude up 1%. many voices and noises coming out of algiers. we are present, we are going to bring you the news flow at the brakes on the ground in algiers. the meeting before the meeting, so to speak. indication saudi might agree to cut their output back to january levels according to the algerian energy minister. gold down to 10th of 1%. down 0.2% -- gold down 0.2%. that is your risk radar and those are your equities. absolutely.

u.s. politics, oil market, central-bank odyssey out of japan, all keeping us on our toes this morning. first word news with christine harvey. >> thank you, anna. arabia's central bank has stepped up efforts to support lenders in the arab world's biggest economy as they grapple with the offensive low oil prices. the saudi arabia monetary agency says it will give inc. $5.3 billion in the form of time deposits. it is introducing seven-day and 28 date repurchase agreement as part of its "supportive monetary policy." visit brusselsll and berlin this week with his increasingly urgent message that governments must act to bolster the economy. the ecb bank president will testify to the european parliament today and it a closed-door session of german lawmakers on wednesday. one of his main concerns are

that governments are being too slow to examine structural reform. -- to implement structural reform. the turkish lira has fallen to a seven-week low. the ratings agency cited risks related to the country's external financing leads. global downgrade by s&p ratings in the wake of july's any subsequent crackdown by president carter gone. -- president erdogan. that is the biggest one-day withdrawals since march. it adds to speculation that it onkeeping a tight rein supply. hillary clinton and donald trump will face each other in the first of three televised u.s. presidential debate later. theevents will be held at

university in york and be moderated by nbc's lester holt. global means, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on bloomberg at -- i am christine harvey. this is bloomberg. anna: they give christine harvey there. let us find out how the asian market session has been doing. juliette saly has more details for us. governor kuroda keeping us alive to new news flows this morning. anna,te: that is right, probably not the news flow that equity markets were looking for. we have seen the yen strengthened back towards 100 to the dollar as governor kuroda was speaking, is make it away, the bank of japan will try to hit that 2% rise inflation target as it does not seem at

the market agrees with the nikkei closing down by one and 25%.by 1. here in hong kong, the hang seng is down 0.8% in late trade. hong kong stocks dropping the most in two weeks. a lot of analysts we have spoken think the rally in the hong kong market could be overdone. you have to remember this index has risen 13% so far this quarter. the shanghai market also down. still one hour to go. it is off by 1%. career down 0.4%. australia closing flat. one of the best -- korea down zero .4%. australia closing flat. just having a look at that yen. it can see it is weaker by 0.2%. that was the fluctuation and movement on we heard governor kuroda speaking 20 or so minutes

ago. we had movement coming through in the asian currencies. new zealand's trade deficit whiting was expected in august. ng was expectedi in august. a lot of selling coming through in asian equity markets to kickstart the trading week. red on thet of screens. great roundup, juliette saly in hong kong press. let us talk about oil and algiers. that is one of our biggest focuses. saudi arabia has said it will cut back oil output back to january levels. there was -- the world's biggest crude exporter was willing to act in a critical situation. saudi is a very important

member of the organization, so saudi is ready to do the maximum for the success of this event. it is ready for any eventuality. it is ready for a freeze. it is ready to lower production. it is available to make it a success. manus: he also talked about his hopes for the meeting. i think that if opec has anided to meet, even in informal meeting that is because opec things it is important to discuss the situation. meeting inast june, situation has been. it is more critical. it is important to see what measures should be taken in the short or very short term to find a solution for a situation that is not benefiting any opec member. we are hoping, like we did in the meeting in iran, that the opec members will be able to make a decision or at least set out the principles of a decision that could become concrete at the next formal meeting in

dna. >> what you -- in vienna. >> what do you think is likely to happen? today, the most important is to stabilize the market. if we stabilize the market, we will see a reduction in prices. do we need to do an output freeze? i think several scenarios will be studied. think we should not forget the issue of prices even though prices will be a consequence of the cut or freeze decisions. to -- int us get algiers. to thee, you spoke algerian oil minister. great interview, by the way. meeting asof this they begin to arrive, tell us what you think?

>> the sun is rising on the day of algiers. that could be a good sign. the main difference between today andthat could be a good s. -- in april is that. is going to be here. iran did not join the last meeting. iran has come back to productionsanctions levels, 3.6 million barrels per day last month. of course, the situation in the old market has also deteriorated. the algerian energy minister i prettyith seemed to be optimistic that the saudi's are already toy outcome

do something to stabilize the market. he told me that at any point, if there is a consensus, the ministers could actually transform this informal opec meeting into a formal extraordinary opec meeting, w taken, orion could be the basis for decision in november in the anna. -- in vienna. us -- caroling joining caroline joining us from algiers. joining us in the studio is john medecin.-- john he's confident the saudi's may return to swing producers. this is opec production. it is banging it out. they cannot get the stuff out of the ground quick enough. it suits them to have a bit of a freeze? think as an investor, we

should be focused rather more on the economics. me, i finding, for that what is a bit of an element of danger is what could come out of libya, where the country is today producing $50,000 -- 50,000 barrels per day. whatever is being said in order to stabilize the markets, what really will be important will be the amount of crude coming to the market. for that, i think libya is a lot more important tipping point in the discussions actually coming from the opec meeting. jean, it is an in liverpool. andatch for the detail, which players are involved, if there are any exemptions for certain countries. what does that do for your

strategy from here? what does that mean. investment strategy if we do see some kind of agreement? jean: for us, the name of the word is "selectivity." view that the current oil price, $30 per barrel was not sustainable, because many producers in the u.s. could not afford to keep paying at this level. what we have seen since the start of the year is actually an adjustment of the u.s. oil production lower. opec very well knows that if they create a higher price umbrella, there will be a renewed supply coming out of the u.s.. put upto artificially the price is a strategy that might be a short-term gain for medium-term pain. for an investor right now, when i would definitively advocate is some form of selectivity now that we have seen the oil price bouncing back from the beginning

of the year. case in point, in the u.s., we have seen a dramatic divergence andeen the -- investment, -- a dramatic drop in the production. market for more picking companies than the market for making big allocations in the sector. jean medecin, thank you very much. what is coming up on programming, john prescott is us.g to be talking to he is the deputy prime minister under tony blair for around 10 years. we will have a conversation coming up shortly. he had been talked of many times as the potential contender for the leadership of the labor party. he is talking a different game now. we will talk to him later on

during programming. this is bloomberg. ♪

manus: 7:19 in the city of london. a gray day is monday morning. that is reflected in the equity markets. london futures are lower down by 0.4%. it is all down to the price of oil. it is all down to what happens next at the big debates. hillary andween trump caps off tonight. -- kicks off tonight. >> angela merkel has ruled out any state assistance for torture bank according to focus magazine, which cited government officials. declinedn lender has to step into the bank's legal issues with the u.s. justice department has the boj may seek sanctions against its

mortgage-backed security assistance. that is according to people familiar with the matter. one of the people says the $11 billion hedge fund which was founded by walter jones will jonesin -- paul tudor will maintain -- maker has agreed to buy u.s. competitor for about $2.1 billion in cash. $33.50 perwould pay share. that is a premium on the close. nxess.l help lax manus: christine, thank you very much. christine harvey there. risk is being ignored. risk is being ignored according to markets. decision. week said

decision.ek's fed oil and gold rising for three sessions in a row. there is a break in the trend this morning. these are the etf's, following those products. let us bring in jean medecin. a benevolent fed, and engaged bank of japan, and policy divergence abound. as you still as bullish were at the start of this? very awaree still that this bullish equity market is very dependent on what is happening on the bond side. we have seen, as you have mentioned with your graph, some kinds of -- today's would-be we colorization of bonds and equities, you cannot manage by

adjusting your equity exposure. that is your level of bonds exposure. in my view, it is the most sophisticated technique as far as construction. i would argue that is a good way to hedge your equity exposure, and to be short of the bond side to protect your equity exposure from some have correction on the bond market. without mine, if we look at the 30 year government bond market, it had the best week since july last week. we also saw flattening of the curve, the steepest drop so far this year. market,ft in the bond how pronounced a shift could that be relative to the equity market? jean: i think we have still the cover for the central bank and that is creating an environment for investing. what we know also that there is a little bit of complacency as far as investors are concerned, in particular in the u.s., when

you look at the discrepancy between real inflation numbers, it is clear the market, we have seen a temporary blip. if it is not a temporary blip and we see repricing on these inflation expectations, it will be a bit of a problem for the market. manus: near-term, what could be customert in 10 years years? achievable -- 10 what is achievable? jean: the growth numbers are pretty mediocre. we do not see growth that reading. the rate hike that we are seeing in the u.s. have a lot more to do with some form of monetary policy normalization and nothing to do with the acceleration of the economic momentum. it is, if you just look at the economic numbers, no reason to panic. it is more about risk management

that making a directional view on the bond yields. manus: let us talk about some of the individual names you got. we had the twitter story on friday. you have picked off amazon as holdings.of your core what justifies that in a ew of let's say facebook, apple, twitter. what is the appeal of amazon over the others? are at the turning point where you see some kind of acceleration of the earnings stream. teach in techly companies, the strong pushback you get from investors is the price that you pay for those companies. amazon, i think, is just at the beginning of this kind of acceleration of earnings, which makesry to common view, it relatively attractive from a valuation standpoint. for similar reasons, i would advocate more generally for the

group, those companies which are relatively more expensive, are in my view, relatively less risky than cheaper companies. youyou compare the -- have actually a higher beta. investors right now are much better remunerated by buying into visibility and earnings growth than trying to capture an elusive cyclical bounceback or by -- manus: always great to get your input on countdown with anna and myself. that is "countdown." thank you for being with us. --t is it for jean medecin for "countdown." equities are lower. time to reconsider more deeper,

negative rates. wti up 44/84. this is bloomberg. ♪

guy: welcome to "on the move." 8:30 7:30 in london and in berlin. i'm guy johnson. caroline hyde is that today. oil speculators abandon hope that opec might deliver a supply deal this week. we are live to talk about that story. in the red. the bank of japan's governor suggests his next move could be to cut deeper into negative territory. reporteda merkel