vonnie: we're going to take you from washington to berlin and cover stories out of wall street, portugal and the united kingdom. here's what we're watching. brexit concerns sparked selling in the british pound today. u.k. chancellor philip hammond is in the u.s. to try to reassure banks that britain is still open for business. our editor in chief sits down with hammond this hour. nejra: another shoe drops at deutsche bank. an audit shows the bankhead mismarked as many as 37 deals including colluding with -- colluding to conceal the italian vendors losses. vonnie: portugal secretary of state for treasury joins us this hour. the country's bonds are among

the worst performing this year. we will ask felix how he plans to attract more investment in portugal. about 30 minutes into the trading day in the u.s.. julie hyman has the latest. julie: we are seeing stocks in the u.s. pullback a little bit this morning. all three major averages trading lower at the moment, not by that much but we are seeing groups like health care pullback as drugmakers continue to come under fire, particularly mylan over the pricing of epipen and we are seeing financial shares after a big advance yesterday. oil prices continue to be in focus. they continue to move higher and energy shares are one of the soul groups of the s&p rising today. oil above $50 a barrel. no specific catalyst, just a general upsurge we have seen recently on this talk about opec cut plan. cuts -- as well as that supply data yesterday coming in with an

unexpected drop. we've been watching it yields in the united states. claims data that came in lower than estimated. sending the yield higher. ..7 poor percent -- 1.74% as we have seen a yield go higher, gold has been going lower. take a look at the bloomberg, g #btv 4058. the yield on the 10 year versus bullion. cold in blue. we have -- it has gone higher, rebounding here we have gold in the blue line pushing lower as abigail doolittle pointed out to me earlier, it is now below its 200 day moving average. individually, in terms of stock stories, twitter once again a big story. recode reported that the company would not be getting a bit from alphabet.

also that apple and disney were likely not interested. you can see shares are tumbling by 17%. reports yesterday that twitter upht want to get a big stone by the time it comes up with earnings. -- saw salesforce.com shells shares are rising. might not have to pay a higher price or perhaps the deal won't happen at all. many investors were not to bullish on those prospects. nejra: about 90 minutes into the close of trading in europe. let's have a look at where asset classes are trading. we start with a mixed picture grid italy's ftse having higher up 6/10 of a percent. some banks pushing the index higher. portugal down 5/10 of a percent. under -- other indices lower too. the pound keeps taking a pounding. sterling at 12641.

down almost 9/10 of a percent at the 31 year low. a lot of the story is about dollar strength so that is likely playing into it but it is also about those brexit concerns. euro down to tenths of 1%. interms of what is happening bond markets we are yields push higher across the spectrum. particularly when we look at 10 year yields, portugal's 10 year yield up almost seven basis points. if we take a look at the stoxx 600 the equity benchmark, we are off by about 2/10 of a percent. it is a second day of losses. what is interesting about happening in europe today and what happened yesterday is that yesterday we saw banks gain while the stoxx 600 fell for the first time in seven days three and if we take a look at the stoxx 600 bank index it is headed for its greatest three-day gain in a month. the stoxx 600 and banks have actually moved in lockstep this year.

this might bef speculation that we will see a pullback in stimulus from central banks. higher rates tend to be good for the financial. perhaps the knee-jerk is that we see money moving into financials. even deutsche bank gaining after a commission by germany's -- it mismarked dozens of transactions on its own books. stocks down overall but banks gaining. if we take a look here i wanted to highlight the dynamics happening in the bond markets. spread. to year yield the reason i drawn attention to this is that the yield premium investors earned for holding two-year treasuries over those german bonds has widened to the .ost since july 2006 perhaps there's expectation still of that policy divergence vonnie:.ort-term

u.k. chancellor of the executor philip hammond is in new york today. he's on a mission to reassure wall street leaders brexit will force them to shift operations away from london. hammonds first trip to the u.s. since replacing george osborne in july. he sat down with john micklethwait. >> the night before you got your bankers you addressed -- you would take the cause. now we have a situation over the past week where you see all this talk of hard brexit come sterling has gone down, people don't see the city is something -- that it looks like the government will go and defend. is that fair? you have a lot of worried financiers in this room. what would you say to them? >> i don't think it is fair. not the correct analysis of what has happened this week, john. we don't recognize this distinction between heart brexit and software exit. we want to get the right -- and

soft briggs it. we want to get the right brexit. this has to be about mutual advantage. it has to be about a mutually beneficial solution. is financial services sector a very important part of the u.k. economy. the largest single value contributes sector and we will place a high priority on getting the right solution with our european union partners. >> do you think it should be treated differently to any other sector? as you said it is britain's most important, surely it is are some degree of priority. >> manufacturing sectors for example, if we were to end up in a wto rather than a negotiated deal, manufacturing would know what that meant. financial services are not really covered effectively by

wto rules. it is different when we have to deal with each sector according to its specific needs. we are still in the process of analyzing with people in the financial services sector and other sectors across the economy to understand the specific needs they have. one of the things that is already clear is the initial response of we must have this. when you drill down there are some really specific needs, some really specific issues that we have to understand and we have to factor into the way we conduct negotiations. >> we can drill down into one or two of those, the issue of euro clearing, that is one which comes up repeatedly when you talk to people in the city. do you think it is possible to hang on if britain is outside the single market? >> the ecb tried previously to force clearing of euro

denominated financial insurance to take place inside the european union. the case went to the european court of justice and the court found the ecb did not have any power to make such a ruling. we have not tested be discriminatory issues as it were yet treated in britain leaves the european union there will still be a number of countries who do not use the euro country -- the euro currency who are entitled to the protections of the single market. it is by no means clear to me that the rules of the single market, even after britain has left, would permit the ecb to require euro denominated instruments to be cleared inside eurozone >>. he would not expect that sort of business to come towards new york or other places which do have that form of treaty already?

>> i think what i'm saying is, if the ecb was minded to try its hand as it were to try again to dictate how euro denominated clearing took place, that would be a legal process that would take time. i think that is some way down the line. >> the issue of foreign workers. your colleague said reducing the number of foreign workers which sent shockwaves through parts of wall street employ a lot of people in london i'm obviously not british. cityt going to make the much harder? >> we have to recognize parts of the mood in the u k that drove the referendum decision is a mood about the pressure on wages at the lowest end, entry-level jobs and the economy. from large-scale migration, largely from eastern europe.

we have to address that issue. that's the clear mandate we've received from the british people. problem is not highly skilled and highly paid bankers, brain surgeons, software engineers. you will not find if you walk around towns in britain and ask people how they feel about migration that they have a problem with people with high skills and high earnings coming to the u.k. because they recognize that those people are a positive contribution to the u.k. economy. the issue we have to deal with his people with low skills competing for entry-level jobs. >> you know as well as i do that migration tends to be another sign of a healthy economy and now we're going to put -- britain is going to put a stop on that. does not limit the speed of the economy? even for political reasons you've explained.

>> it may limit the nominal growth of the economy but what we've seen in the last few years is an economy that is growing but gdp per capita has hardly grown at all. is aat we need to drive growth in gdp per capita. we need to see our economic expansion coming from an improvement in productivity, not simply from bringing ever larger numbers of low skilled people into the economy. we will need some low skilled people. the uk's demographics are different from most if not all of our neighbors in europe for various reasons including patterns of historical migration into the u.k. a relatively low dependency ratio depending on many of our counterparts and we have a population that is still growing before immigration. germany has a population which is shrinking fast before immigration so they have a different set of challenges that they need to respond to in ways

that meet their needs for the u.k., continues large-scale low skilled migration is not the way forward. >> that laundry list from the finance side. a big issue is passed porting. the idea that if you -- you are able to trade freely with the rest of europe. some form ofe is heart brexit or accepts to the single market is curtailed -- or is there a soft option like equivalence? >> there are different options. itt porting, equivalence and would be one of the u.k. government's objectives to ensure that the parts of the financial services sector that are -- that do business in europe are able to continue doing business in europe. not all of the financial services sector in london exists to do business in europe. london is a global center but some parts do need access to

european market. i don't want to always conduct this debate in terms of the u.k. needing access to european union market. there are many substantial businesses across the eu in the real economy, car manufacturers, who regularly use the city of london as a resource to underpin their business, accessing the ofp and broad after markets london to support their businesses. they should be advocates for maintaining what is europe's financial connection point in london. a thing you imagine where some sectors advance at some speeds, so that others, is it going to come down to that degree of? >> the subset within financial services do a different needs and priorities. in our engagement with them over

the last weeks we have been learning a lot more about what the precise needs and priorities are. frankly, sometimes we been by what the needs of different sectors are. what we are not going to do is give up low bible account of how we approach the negotiation and what our tactics are. i can reassure people in the financial services sector that we are listening to what they are saying and understanding the nuance positions different subsectors have about their needs. >> the thing everyone in business seems to be worried about are the last few days is the idea that you have set a limit of two years from march to deal with this. people are beginning to say can't we have a longer transition period? is that the sort of way of calming things down?

>> we hear that concern and that suggestion. there have also been people in the european union, political figures in the european union, saying we need a longer period to do this. process ofe negotiation is something that we will now begin to discuss with the european union. how we actually go about the business of negotiating these separate things, the arrangements for the uk's exit from the european union and the arrangement for future relations between the u.k. and the european union. the truth of the matter is article 50 of the treaty of anyon was inserted without real focus on the detail of it because nobody thought it would be used. i think the more that we are looking at the way it works the more people on both sides are realizing that it does not answer quite a lot of the questions. betweenhave to agree

the two sides how we're going to manage this process. i hope now that we've set the ball rolling we will be able to do that in a constructive way. customsssue of the union. debate going on in your party were some people are saying america can deal with europeans will i can britain be outside the customs union? do you agree with that? keyhe challenge for us, two parts to customs union, the country of origin rules and the goodss stuff around moving smoothly across borders. after 40 years in the european union we've got an economy that is heavily integrated with the economies of the european union. probably the single most obvious example is the automotive industry. where we have complex supply chain with subassemblies moving backwards and forwards across national boundaries within the

european union into and out of the u.k. before they end up in final vehicles for domestic consumption or export. there are be a frictional cost to not being involved in customs union. one of the things we've got to do, we are doing at the moment, analyzing the benefits and costs of being in or not being in a customs union. we have to look at this in rational terms. there are costs and benefits. >> is the underlying rational state that we're in now, we're heading toward a heart brings it -- a hard brexit. the british government is going to walk into the room and say we want to be of the control migration and the response of europeans is straightforward, you get one of those things or the other. this weekve learned

is migration matters more than the single market. >> i don't accept that. you are right of course, the opening position of the european union will be that it's either or. an extreme statement of the fourion that the so-called freedoms are indivisible and the communal access to any of the markets unless there is adherence to all of the four freedoms. there will be a discussion and a will have to involve giving take on both sides because you can have negotiated solution otherwise. >> to you think there will begin given take on the european side on this issue? you either have it or you don't. >> there will be give-and-take there is a solution which provides advantage to both sides. we don't delude ourselves that our union p and partners us any favors.

-- our european partners was any favors. a deal which delivers advantage for both sides. large balancevery of payments surplus with the u.k. there are large numbers of european firms to european workers, trades unions who also have a strong interest in maintaining access to the u.k. market for the 234 billion pounds sterling worth of exports of goods and services to the u.k. every year from the european union. we understand it has to be a win-win solution we have to recognize and this was the point that came out of the conservative party conference, that the decision of the british people on the 23rd of june included in place of a requirement that we do not have full freedom of movement in the way that it has operated in the past. there has to be a control of the

way people from the european union come into the u.k. that is not the same as saying we will not allow any people from the european union to come into the u.k. it is simply about controls and manages the process. >> sweden is one of the people we would most hope to support the british getting good deals. , verysponse from them was set the british are leaving, we would love to do anything that brings them in. when it comes down to this issue , we are not going to budge. >> you are inviting me to set out the details of our negotiating position here. i would expect everyone of our negotiating partners in the eu to stick firmly to their public starting position line and not give anything away. i have never been involved in a negotiation where the end position after two years of negotiating is exactly the same

as the starting position. we understand the opening position of the european union. european union understands the opening position of the u.k. let's get engaged in a sensible discussion. >> much more coming up with u.k. chancellor philip hammond. he tells us where he sees the economic advantages of a brexit. later we will hear from another top financial figure, portugal's secretary of state for treasury, ricardo felix joins us to discuss what brings it means for the portuguese economy and lots more. that interview, coming up. this is bloomberg. ♪

vonnie: you're watching bloomberg markets. let's get back to that

special conversation on the british economy and brexit in the second half of his interview u.k.john micklethwait, chancellor of the exchequer dilip hammond dug into the -- philip hammond dug into the potential risks and rewards of a british exit from the eu. >> we've been talking about how you try and deal with this issue . it you think there is any economic advantage to brexit? >> in the long-term, yes. withtward looking nation strong trading links and investment links around the world. outside the european union we will build on those historic trading links. we will leverage the advantage of an economy which is, in many andects, more mid-atlantic 20 miles off the coast of europe . the way it's labor market works,

attitudes of doing business and of course legal system. i think most people in britain feel probably halfway across the atlantic between the u.s. and europe rather than just 20 miles off the coast of europe in 3000 miles away from the u.s. john: they listen to theresa may 's speech and they heard this voice which sounded much more critical of business meant pretty much everything we have heard for a long time. more critical than cameron , more critical than tony blair. is this a government that is antibusiness in some way? ? was that the message you want to send mr. hammond: absolutely not. this is a pro-business government, strongly supportive of open markets to my free markets, open economies, free trade. -- and have a problem of it is not just a british problem . a developed world problem, in

keeping our populations engaged and supportive of our market capitalism economic model. that the economy is not working for them anymore. that they are the losers of globalization. that it works for some and it does not work for all. a recognition that we have to reengage those people who feel they don't have a stake in the economy anymore. for liberalest market capitalism to be firmly rooted we have to address any symptoms, any signs of a sizable group of our population coming disenchanted with the model where the in the u.s., europe, the u.k., we need to seize that challenge, and respond to it and that is what we intend to do.

the point that theresa may was particularly making is that the health of the economic model overall depends on government being prepared to intervene in deal with market failures, deal with rogue operators. we had one or two bad examples of companies abusing market power. richters abusing control of companies. companies abusing workers -- directors abusing control of companies. companies abusing workers. 100 something years ago the u.s. had to be robust about monopolistic models in order to ensure the health of capitalism. john: but if you have taken the theodore roosevelt style thing that would ensure -- that would imply whether you still cling to that idea of liberal economics, -- that seems to what you're saying. mr. hammond: the prime minister

said clearly the limit to the power of government, that does not mean governments have no power at all. governments do have a power and responsibility to intervene. certainly when markets are broken they have an obligation to intervene to make sure that they work properly and effectively. this should not be anything that alarmed people in the vast who operate responsibly, competitively and getting this right is essential to allowing us to continue to send out patched wrong message that the best way of making people free and prosperous is to have a liberal market economy that works, drives the creation of wealth and distribution of wealth across that economy and a way that sees everyone benefiting from that economic growth john:. can i ask you about something? sterling, which strangely has

gone down rather rapidly since brexit. is it roughly the level which you think works for the british economy? to the pluses and minuses roughly balance out? mr. hammond: we don't target in exchange rate level. andave a free exchange rate the market will make judgment on the appropriate level of sterling at any given time. history tells us those judgments can move fairly significantly unfairly small provocations. one of the self-denying ordinances for chancellors is that we don't speculate on what are the appropriate exchange rates for sterling. john: you don't seem unhappy about the current level. auld it be unusual for chancellor to protest that sterling was to hire t -- too high or too low?

mr. hammond: we are committed to free-flowing market exchange rate system. john: this issue of investments. is that something that one can expect to see a lot of investments outside of london?in britain you have this imbalance between london on you buying such a large part of the economy. your predecessor tried to build a strategy in the north. is that still going to be the target or will it be doubled in that direction? mr. hammond: you're right. we have a productivity problem and u.k. generally and one of the drivers of it is a big regional disparity. benefits of cities outside the u.k. and city regions. in the north we've got four major connotations within a few miles of each other. are hugely underinvested in

transport infrastructure linking them together. simple to turn them into a single labor goods and services market with huge potential benefits to the economy and productivity of that region which is why the northern powerhouse idea was born in the first place. to support northern powerhouse and indeed other such approaches around the u.k. as part of our commitment to drive the improvement of the u.k. plus productivity. on your specific question about infrastructure, obviously in the u.k. a lot of our infrastructure investment is done by the private sector, but the parts done by the public sector, roads, rails, flood defenses and so on, we recognize that we do could deficit, that we drive productivity improvement by further investment. we recognize that we have an opportunity to borrow very

cheaply, as you know we have the longest average maturity of public debt than any developed country and despite our high andls of debt to gdp continuing deficit all the signals we have from the market saw that we do have the capacity for carefully targeted and specifically defined investments in productive infrastructure. john: issue more government bonds to do this. mr. hammond: we are looking at the case for a carefully investmentensible, in productive infrastructure and i shall set out the statement how we're going to take this idea forward. it will be firmly anchored and properly constrained with an overall framework. we recognize with the kind of debt to gdp ratio we've got we can simply have an unconstrained program of public spending

however well targeted and beneficial to the economy, it must be firmly anchored within a set of fiscal rules and a plan to bring our budget deficit back to balance over a sensible period of time. recognize ouro economy has suffered a significant shock with the brexit decision and there will be april 2 of uncertainty followed by a period possibly a structural adjustment as we leave the european union. we have to be able to accommodate that and support the economy. john: certainly a band of the british press which would say present which best friends it has not had any effect at all. british economy is growing, why is hammond going on about things getting worse and we had to deal with this? mr. hammond: there is a part of the british press sing precisely that. the answer is the data the media is mostly focused on is backward aoking dated which tells us

very good news story. the u.k. economy was more robust we thought in the first half of this year. that employment was stronger than we thought. that growth was higher than we thought and that is all good news. it means we go into this period when there will be more uncertainty with a much stronger they still he thought we had. it does not alter the fact the consensus, the median of economic forecasters is suggesting that growth will slow over the coming year in 2017 as we go through this period of negotiation until we have picture of what the european -- john: is it a question of investments. maybe people are not bringing this out but certainly people would know this about putting stuff in until every thing

clears out. is that the center of your worry? mr. hammond: i think business investment is the key focus. we understand business responds to uncertainty by postponing decisions and probably by requiring a higher rate of return than it does make decisions. if the climate is uncertain. we want to bring back as much certainty as we can as quickly as we can and support the economy in the meantime. if investment decisions or postpone there can be a second order effect on employment and on consumer confidence in being able to support employment and consumer confidence through a period when investment decisions are perhaps being postponed and investment is slowing down is an important way of managing the uncertainty. john: one area of certainty which people here look for, the

bank of england, perhaps -- mark carney. -- there islcome the issue about whether he served longer than his initial -- mr. hammond: i think the governor is doing a great job. committee is the arbiter on monetary policy decisions. in my view, very effectively. it helped us recover from the financial crisis and they have helped us to smooth the response to this shocked that occurred on 23rd of june. obviously mark carney said when he took the job on that he was not guaranteeing to stay for the whole eight years. but il make his decision certainly would welcome his

decision to stay if that is the decision he makes. nejra: that was philip hammond speaking with bloomberg's editor in chief john micklethwait in new york. vonnie: portugal secretary of state of treasury ricardo felix joins us. this is bloomberg. ♪

nejra: live from london and new attentiontheir vonnie: portugal is scheduled to hand in its budget proposal next

week and concerns over spending cuts and the money and needs to pump into ailing banks is weighing on investors minds. ricardo felix joins us now to discuss the state of the country's finances. are you visiting investors here in the united states? ricardo: thank you for having me. we are visiting investors here passing our message related to budget guidelines for the next year on all the action in order to revamp the situation in the elements of this year. simplenow in a much more -- commitment to the european authorities related with the and european union area presented a budget that fulfills commitment. vonnie: what category of

investor are you going after and where along the portugal curve would you like to see them find this? ricardo: different investors from hedge fund, most of the preferrednds suggest maturities on the five to 10 year period. but they are open to different maturities as soon as rating conditions improve which is something that might happen as economic growth starts accelerating. most likely actions on rating agencies. you.: great to talk to you mentioned the ratings. the one ratings company that has you at investment-grade right .ow is db rs

how concerned are you about potentially losing that investment-grade rating it as it would mean your bonds are ineligible for the ecb to buy. painted picture of how bad that would be if that happened. we have been very focused on doing our job in order to create conditions for providing stability under reduced uncertainty. close contactn with rating agencies frequently over the last months. all the rating agencies wrote so far they remain comfortable with the rating notes they have for portugal. very focused on maintaining the situation of the rating in portugal. db rs, it is very important rating agent as imagined -- as you mentioned. we are aware that we need to .resent the budget

the budget to bring presented on the 14th of october has all the ingredients that are necessary in order to grant db rs and other rating agencies confidence related with the fact that we will for phil commitments in particular aiming at below 2.5% this year and the budget will include the deficit for the next 2%,, below to consent -- such that sustainability is insured and the rating -- the trend is declining. nejra: so you are fairly confident that the outlook will also be maintained by db rs? ricardo: yes. we are pretty confident that the information that will disclose from the conversations we had --dbrs that the outlook will be maintained. nejra: in the case of portugal's

bonds being the worst performers among developed markets, what can you do to change that? i've got a quote from an analyst saying that investors need to gain confidence in the government to implement reform rather than scaling past reforms back. concretely, what are you going to do to attract investors back into portuguese debt? ricardo: let me say that no reforms related to social security of labor markets has been rolled back. containeds have been and they will be maintained over the future. reforms that are needed now and that we are taking forms forward are related with the illusion of the banking sector in dealing with nonperforming loans. we are doing great efforts related to that such that after bank recapitalization and the

bank capital levels improved -- muchl of the spirits better than the one found in the latest thing we can assess the --uation by recognizing considering the possibility of theerent measures discussion about the possible is something on the table. this needs to be something that has the ownership of the banking system and the banking systems be cautious -- conscious that they need to lead this process of resolving the issue of balance sheets while the government will act as a coordination mechanism such that it mitigates and helps solving this issue. nejra: i just want to show viewers the terminal which shows the spread in terms of portugal

bonds to german bonds. it is rising, obviously nowhere near the levels through the crisis but there is a variety of investors. fall?ebt to gdp ratio will that be something that will convince and vectors -- investors that portugal is getting its act together? ricardo: the next year -- this year we need to take into account that we need to have a resolution in the later part of last year this year we've been accumulating cash to redeem in october.als if you look at the net excluding deposits you see that the situation -- vonnie: what are you targeting. you were targeting -- ricardo: the figure we are targeting is a bit higher for 17

because we have slower growth in 2016 than expected. this was related with evolution on the external side. slightly higher debt to gdp ratio would materialize. on the next year with conditions we can see a decline in debt to gdp ratio. this is something that depends on the market and budget conditions. vonnie: what are your current times for any early repayment of the ims bailout? any plan to repay anything in the final quarter of this year? ricardo: we are discussing recapitalization which is authorized by the commission of the 2.7 billion euros. recapitalization debt is needed depends on procedure that is

being carried on now. once we have this procedure finished and we know the exact amount of funds that need to be injected, that will determine how much of the existing funding can be allocated to repayment or to do bonds in the markets. we should expect 2017 to have some early repayments. having early repayments, just one dimension of the policies issues. recapitalization, is that going to involve the debt?f some junior have you started asking investors about their interest in the securities? ricardo: the recapitalization of bank andestate owned

will remain as that. the agreement involves an authorization plus the issuance at least one billion euros by the time of recapitalization. the other one, up to 18 months ahead. this process and -- involves change. tai a different government model by were there is professional management -- that will manage to achieve this mandate without further expansion from the government on the daily management basis of the banks. essentially it is the port of teicher involved in the preparation of this process. one billion euros off of sub debt.

quite promising in terms of the full amount that is needed. of course now about how much it will cost. because of this, according to the information that you have that is still preliminary, might be at an acceptable price. nejra: i want to ask you about brexit. what redlines does portugal have in terms of coming to an agreement with the u.k.? what impact do you have -- what impact do you expect?on the portuguese economy portugal has been ricardo: and long traditional operating partner at u.k.. in this respect exit -- brexit needs to be taken into account. we think we should have a discussion with u.k. such that --preserve relations between

u.k. is an important trading partner. a very important partner in terms of financial relations and we should preserve. vonnie: the government indicated on wages to indirect taxes. how do you plan on achieving this and is it fair? ricardo: over the last year the budget has started by having you foster andt promote labor income and create incentives for people to provide -- to supply labor. reduction in personal income taxes and by an increase in direct taxes. smaller dimension in terms of magnitude. -- inhould not involve

particular it should involve tax in some specific groups. vonnie: we have to leave it there. ricardo felix. thank you for joining us in new york. continue down to the european close. this is bloomberg. ♪

nejra: vonnie: you're watching bloomberg markets. it's time for our latest bloomberg business flash. look at this business -- plans to sell six -- post a cell's dock in an idea. people say the ipo will give the company a value of about $7 billion including debt. shares will begin trading early november. walmart has forecast earnings as it trails estimates. the world's largest retailer

will spend more to renovate stores in increase e-commerce keep abilities. walmart has had better-than-expected growth but the chain wants to improve online operations so he can better compete with amazon.com. bloombergr latest business flash. nejra: coming up on the european close german auditor finds joyce --ack -- deutsche bank concealing the italian lenders losses. more on this story ahead. a quick check on the markets. thet half an hour away from european close. interesting things happening with the stock 600 down 2/10 of a percent. otherpicture across indices. this is bloomberg. ♪

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>> you're watching the european close on bloomberg markets. from are going to take you washington and two stories on wall street, germany, and the u.k. the u.k. chancellor philip hammond -- an audit by german regulators shows the think it may have mismarked as many as 37 deals, including colluding with italy. emerging markets may have been outperforming this year. it has been the asset class du jour.