♪ guy: welcome to on the move. in london.a.m. we are counting you down to the european open. what an open it will be. i am alongside caroline hyde over in frankfurt. friday flash crash. falls as much as 6.1% against the dollar. will the ftse enter a bull market today? deutsche bank is said to be

holding talks about its options including an asset management ipo. what will it take to restore confidence? and a spinoff, energy goes public, pricing at the top end of the range. in europe's biggest ipo. we will be speaking to the company ceo. isoline: the ftse 100 higher. the outperform or because of the flash crash of the pound. aversion to all about the great british pound once again. little bit talk a about what is going on with the fair value in what is happening with the pound. the pound having an impact around the world. and it will have an impact on the ftse. if there was ever a chart, there it is. the flash crash of the pound rippling around the world. you do not have the british pound sitting up your very often.

down by 1.23%. that is where we are trading. seeill be interesting to how this ripples around the world because of the performance. we will find out whether the ftse enters a bull market today. at the moment, fair value suggests not but we are getting close. will we break the record highs this morning? let us get you a bloomberg first word news with juliette saly. deutsche bank is holding informal talks with security for to explore options including raising capital. should mounting legal bills require it. the say senior advisers at top wall street firms are speaking to representatives of the german lender about ideas including a share sale and asset disposal. the bank is mulling an ipo a set of its asset management unit.

deutsche bank has declined to comment. china's foreign exchange reserves declined to a five-year low in september with speculation that the central bank resumes selling dollars to court that you want. it shrank to $3.17 trillion. double dose of monetary and fiscal stimulus including using by the central bank next month so says one of the prime minister's economic advisers. haseckons fiscal restraint limited the effectiveness of the bank of japan's radical monetary easing and it is the biggest reason that inflation has not risen to the 2% target. to beane matthew is said the strongest storm and one of the costliest to hit the u.s. since 2005. it is bearing down on florida's east coast forcing nuclear reactors to shut creating fuel

shortages and knocking out electricity to millions of people. four storm is expected to make landfall near cape canaveral and then track along the atlantic coast racking up as much as $50 billion in economic losses. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. i am juliette saly. this is bloomberg. guy: thank you, juliet. let us get more on what has been happening with the pound, plunging overnight. on some trading platforms, the decline was even bigger than 6.1%. the biggest decline since were exit. they say it was exacerbated by computer initiated tell orders. that seems to be happening more and more often. we are in singapore. a lot of fingers are being pointed at the algorithms overnight. is that a fair criticism? >> probably.

no one really knows what happened. the speed at which it happened 10 only be explained by computers. the trouble with computers is that they work together and they have orders to sell at a certain level or when there is a sizable move. if someone made a trade that it enough to trigger the orders, all of the computers move in and it all happens very fast. it is hard to blame someone else. i think it is computers at the end of the day. caroline: we have seen this happen with the rand and the kiwi earlier. what can be done? a one of the problems is foreign exchange market is still mostly over-the-counter. it is largely unregulated. i will get a lot of hate bell for saying that. some regulation of the foreign exchange market is necessary. but it is completely unregulated.

the truth is that it is becoming more and more leveraged. two thirds of the market is traded in options. that means you're just trading on your debt. you have to hardly put any collateral behind it which is a problem. when you add computers to the mix, you will see a lot of flash pressures coming up. i think it is a problem that is becoming more and more on the regulators' mind. let us get more now from the head of a global fx strategy from aberdeen asset management. let us kickoff and talk a little bit about what we got yesterday from the chancellor of the exchequer speaking yesterday. the u.k. chancellor said this --

-- guy: we will come back to that in just a moment. let us talk about what is going on in the market. give us your take on what happened overnight. >> no one can really know for certain what is behind this abrupt drop in sterling. but regardless of what really caused the massive move of 6% overnight, there is an overarching point. it is not just about brexit in the sense of free access to the single market and trade becoming costlier anymore. i think investors has started questioning that they are becoming perplexed about the uk's vision towards immigration, openness, and friendliness towards business. this is paramount giving the

global status that the u.k. has enjoyed for so many years. i can only remain bearish on sterling here. perplexed by you what is coming out of the chancellor's mouth? are you bearish on the pound? >> i think it is difficult to be bearish or bullish on the pounds. it suggests we will go lower. the uncertainty around brexit suggests we will go lower however we have had better economic news since the referendum than anyone would've expected which supports the pound. unlessels a one day bank it continues -- this feels a one day thing unless it continues. it is a difficult one to analyze. guy: talk us through how clients

are reacting. everyone isch confused. the more we talk with clients around europe, the more we see that the question has moved away from the soft brexit into hard brexit right now and everyone has started questioning what they are going to do as far as investment projects are concerned. in terms of the actual play, it is fair to say that over the past few weeks, we have seen the recent closing of sorts that right now, the clients are repositioning short sterling again. of course, all of this factors into inflation. we have a great chart showing how inflation expectations in the u.k. have spiked? .

inflation been long linked assets for a long time. you get that response from credit. you almost do not need to double up on that debt. we will shift higher in inflation. that is guaranteed from the shift we have seen. guy: what will the bank be doing surrounding all of this? it has been aggressively buying into the markets, more so than many expected. what would be the next step? isthe big question now december. do they cut again this year? and this is less and less likely. they have really looked through some of these moves. >> the pound is down a lot. oil is up over $52 a barrel. these inflationary forces are pushing things on a little bit. if you are only going to cut

1.5%, you can probably wait until next year. wading through this short-term volatility. guy: give me a sense of what you think the bank of england will do given the inflationary spike we are expecting. is there a sense that the bank needs to keep its powder dry? we have been warned that it will be a bumpy ride by the exchequer. >> we are reaching a state where there is not much point in keeping the powder dry. furtherthere will be raising in november. i do not think from listening to -- mpcr of nbc numbers members -- there was a speech by bread -- been broadly recently which is illuminating. uncertaintying that

is keeping away investment. that does not mean that this will not happen further down the road. i think there is further easing coming and further weakness in sterling. guy: we will wrap it up there. thank you for joining us. coming up on the show, jobs day things standing hawkish. it is europe's biggest ipo. rba spinoff energy goes public today. we will speak to the ceo at 8:45 a.m. london time. still to come, will the new lows in the pound drive the ftse to record highs? we will bring you all of the action from the market open. this is bloomberg. ♪

guy: 7:45 a.m. in london. it is to 40 5 a.m. in the u.s. and it is jobs day. investors will be focusing on the all-important non-farm payroll that comes out at 1:30 p.m. u.k. time. another month of unspectacular but solid growth is expected. set, we have on

ever guessed from aberdeen asset management. are you with the market in the december move? >> i think yes. we will see what we see with the jobs report today. anything less than 200 in the consensus area, there is still a good probability but less so. -- is around the 250 number. guy: you think 250. >> the big recovery from the august levels. the employment component to that, and the inflation component, all of that pointed to a higher number. big number.at is a give us a sense of what the bond market reaction to that will be? will there be an upward shift in

yields? >> we have seen a big move over the last week. -- aboutern about well whether we would get a tapering has pushed yields higher and that may be enough to offset what could be a big number from the payrolls today. to be lesstends logical than people expect. if we see a 250 number, we will see treasuries to klein again. guy: this is a bit of fun. this is the league of champions. and this is what you can do. you enter to 50. the survey number is around the 180 level. 172. the numbers that people are going with our around north of that. quite a punchy figure. how do you expect the u.s. economy to grow from here? the fed will not be just looking at this number. but it will look at what the

what the occurs -- lead indicators are telling us. is there a sense that the u.s. economy is gathering momentum? >> i think we have got gradual growth in the u.s. but we have a volatile payroll number and we have a really volatile survey number coming through. the linkage of one to another would suggest a bigger number than what people are expecting. it does not necessarily mean that we will go gangbusters growth in the u.s. yieldse: if we do see edged higher in u.s. treasuries, are you exposed to u.s. debt, particularly corporate? the durationdged risk of high-yield in the u.s. for now, we are quite happy to hold that position.

if it goes much higher, it might be an opportunity in the short term to go longer. it feels a safer place to be though with all of the risks stacking up against you with the yields staying where they are. the spread has been widening out. how wide does that become? how far can we push that relationship? >> not much further. and we have seen germany go back into the positive. that is a reaction to the pushing up of the u.s. yields. there is very little going on for the german yields to get their teeth in. it is all about what change we will get in the u.s. that gap between the u.s. and germany should narrow but at the moment it does not feel like a positive narrowing. will be keeping a close eye on those bond yields.

forks to watch coming up you. we are edging towards the market open. biggest ipo in europe, glencore. energys are on rva and as it spins off its clean energy units. ♪

guy: you will come back. it is looking pretty depressing

out there in london this morning. not just the weather but the pound. it is trading sharply lower after the big move overnight. down.down, the ftse is up. that me take you to my terminal. atare trading on the futures an elevated level. that is the fair value -- .576 higher. overo want to take you here. the ftse is up year to date 12%. when we are approaching bull market territory, in euro terms, we are down by 7.2 percent. it all depends on where you sit. traveling to the u.k. is a little bit cheaper. but all eyes on some key german tax. deutsche bank called higher. so much news.

deutsche bank is speaking to the department of justice. will the ipo asset management unit in the press. are they potentially looking at a capital raise? also, so much news in terms of our ipo's here in germany. energy, the biggest ipo in europe, energy is coming to the market. we have seen that particular stock down after spinning off the unit. they will keep 75% of the clean energy part of the business. the ceopeaking to later. and another utility to keep an eye on because of activist investors. reported here in europe. ipo's. a sense of we are seeing some money come to the market. will this be snapped up? pushedyone is getting

out of their fixed income assets and they are looking for other assets. it from the credit side for quite a while. decent dividend opportunity for people. guy: facilities have had a bad time, why am i buying this? >> in terms of credit, they have been rock solid and that reflects the concerned people have for the end of qe. are still looking for that kind of opportunity and this is a good way of getting it. guy: we will come back and chat in a bit. coming up, the open of the market. like it is going to be a very solid open for the european market -- for the ftse market. the ftse 100 and 200.

6190 is where we are pointing to at the moment. the fair value takes us just north of the 7000 mark. the market open is coming up next. ♪

guy: good morning. i'm guy johnson. we are here in the city of london alongside caroline hyde in frankfurt. where moments away from the start of trading. crash.e: friday's flash the pounder plunges as much as 6.1% against the dollar in a move that's -- that traders say was exacerbated. with the ftse enter a bull market today. capital raising questions. deutsche bank is said to be holding court -- including an ipo. what will it take to restore profit. rwe spinoff energy goes public pricing at the top end of its range and europe's biggest ipo

since glencore. will be speaking first to the company's ceo -- we will be speaking first to the company's ceo. guy: we are moments away from the start of european trading. we are waiting to see what the ftse looks like. let's see how the pound effect is rippling through. this is what we are expecting today, a positive start to the ftse 100. the white line is a ftse 100 -- is at the ftse 100. it is now climbing higher, we are up 2% -- we are up to since. story.n fx translation let's get the details of what is happening in the gilt market with manus cranny peter manus: there is no doubt about it -- manus cranny. manus: there is no doubt about it, there is a huge issue in the market. trade that really do hold up in the market.

the disputes are going to be prevalent. equities around the rest of europe on the side of financials . deutsche bank is going to be the lead. german production coming in with a rise of 1%. this is the sterling flash crash . this is the brexit day where we dropped by 8%. we broke the bandwidth of standard deviation. we down 1.5 standard deviations. you want to see this chart. 4108, the break of 120 opens up a new channel on the downside. 105 could be on the cards. great british break off. .he break evens are rising the consequence of the slowest sterling -- of this lower sterling is felt everywhere. the break evens rose by 24 basis

points, the biggest rise since 2013. it futures are down 70 points on the opening trade. we have a drop of 70 on the overall gilt market. this is where the real pressure begins to come to bear with inflation. rising follow the wrong reasons. mr. hammond was quick to say they don't necessarily -- they are not concerned regarding the level of sterling. delta lloyd is in focus with an in. they are undervaluing the bids and the company. they are not opposed to the transaction. it was 5.3. down 27.97, bidding for delta lloyd. program. a divestment

up by $10 billion. we understand they are going to sell the business for over $3 billion. do we have an opening price for deutsche bank? three weeks ago, it took a question that he would come to the market for capital. john cryan's word. stock up .3%. credit suisse as deutsche bank -- credit suisse adds deutsche bank to its performing stock. with that in mind, the question for the markets is this, will they support and equity raising? they have 10% of deutsche bank. it is going to be an important part of the question. manus cranny off of bloomberg radio. deutsche bank working on an ipo.

this comes as a report suggests the embattled member is holding formal talks with is pretty firm to explore crises management options including capital raising. news -- clearly a number of options are being explored. talk to me about how those options are set up. what are the most likely? >> it is been an exploratory stage. they are assessing what could be the option based on what the final legal bill comes to in terms of boosting those capital buffers that could take a hit if a fine were to be higher than the bank has provision for. if there was a fine that was higher than that, they want to set aside and think about selling an asset, or indeed

selling stock. those are the options there. in a set of decision, we understand is going to be -- icult to make until caroline: leeza, one of the options is m&a. anyeemed to shake up exertion that we will see deutsche come together. abn said they were in talks to merge but the dutch seem to back that to one side. could we see consolidation in the banking sector? consolidation across european banking was something that we were not likely to see for the next couple of years. suddenly the summer you had results talking about the need for consolidation along european banks. the bill yesterday which we understand was set aside does

raise the prospect of banks looking beyond the borders again to consolidate. this would be banks of different countries and it would've been the biggest deal since the financial crisis. it certainly does get that type of conversation going. guy: looking at deutsche right now. team is turning around and saying we need to raise money. we've got to put more capital to work. every time we have seen this happen, it has gotten worse. you wonder how many more rounds we are going to go through and how much more i'm going to be diluted and hit down the road pit why do i think this is the worst point? will get better from here? >> you have a few hurdles to get over before you go anywhere near deutsche bank. point, -- there is good to be capital raising after that. three, -- i think so.

certainly in our view that they will need to come clean about the level three assets. what kind of values are there? how they are dealing with the ledger of this book? and how are they going to get to the end point of all of this? it swept up by changes in regulation and go back to the 40 billiongasquet 40 weighted s -- the 400 billion weighted assets. what they will say is our liquidity position is solid. we got more than 200 billion. we are in no way being forced close to the edge. is there anyway you might look it comes toshing the credit? what would it take to give from deutsche bank to make it look appetizing? luke: time. at the moment it seems that is what they are running out of.

this is a story for us in two or three years. we've got so many other options in the banking sector to look at . deutsche bank with all of its problems is an easy one to avoid. guy: a elisa, thinking very much indeed. -- lisa, thank you very much indeed. visitne: i'm going to hop to the exchange to speak to the energy chief executive, the biggest ipo guy we have seen here in europe since 2011, since the heady days of glencore. we'll have to see how that particular company performs today. we'll see how it continues to perform. i will be back in a moment. guy, handing it over to you. this is bloomberg, stay tuned. ♪

guy: welcome back. you're watching "on the move." let's take a look at what is happening with european equities could stoxx 600 -- european equities. stoxx 600 down. we are 100 points away from that a little bit less. nevertheless, we have seen the pound affect coming through on a day when european markets are generally lower, the ftse 100 is once again hire. let's show you how we are breaking down in terms of perspectives.

italy's back in to what is happening -- it leads back in to what is happening in the pound story. the only sector to be in positive territory right now. it is doing really well and that is a translation affect story as it is coming through as a result of the pound story. let's break it down in terms of the individual stocks in the stoxx 600. easyjet down by 3.8%. that is the negative aspect. look at stocks like anglo, bhp trading up really quite strongly. let's move on that with the flash crash that happened overnight. so much of what is being discussed. what are the implications of it? interesting to see what is happening with guilds. that is the tenure guilt. that's the 10 year guilt. here's the bloomberg first word news with sebastian salek.

that is according to people familiar with the discussion. advisors at top wall street firms are sticking to the german lender about ideas including a share sell. the equity reports the bank is running an ipo any management unit. there's a bank declined to comment. china's foreign exchange revert -- reserve declined a five-year loan. the pbo sete says it will stockpile $3.1 trillion just below economists estimates. japan needs a double dose of monetary and fiscal stimulus including further easing by the central bank next month. of premised abe economic advisers. -- says one of prime minister abe's economic advisers.

hurricane matthew is said to be disturbed storm and one of the costliest to hit the u.s. since 2005. it is been down on the east coast creating fuel shortages and threatening to knock out electric to millions of people. the category four storm with winds up to 130 miles an hour is expected to make landfall near cape canaveral. nearlyg up -- racking up $15 billion. salek and this is bloomberg. guy: thank you very much. let's talk about what is happening in the gilt market. we are seeing yields pushing higher come up toward that 1%. this is the u.k. 10 year. luke hickmore still with us. how much is that going to run? luke: it is becoming difficult to note. it feels like we're going to test 1% today, but that is a

pretty strong level for a test. it is a big move. guy: the last few days have been massive. luke: huge. at some point, people need yields, they come back into this market. it starts -- they start looking through the inflationary prices and higher oil. range.in a the range is probably shifted a little bit higher because of the sterling fall overnight. be 72 100.ay to 100. 70 guy: nevertheless during the break we were looking at an oil and sterling. it is gone but one way, sharply higher. luke: this is the problem the market is got. all of the detail impacts it is good to have in terms of

inflation numbers. -- it is going to have in terms of inflation numbers. we have a competitive retailing industry which will hold back inflation. every other measure is going to start going up. we could be going into next year with a high inflation number. it is whether it lasts. in a years time, are we going to be talking about inflation, probably not. guy: where is the sweet spot on the curve? luke: i think you're going to be going into the shorter dated stuff. pricing out of the december rate. they will wait until the new year. that seems to be pushing way out into next year. maybe in the front near -- front end, it is an b-2s and threes and fours. the other side, if you get it shift higher in yields, you tend to see the long end flat in a

little bit. states intounited the tens 30's curve. guy: when we look at what is happening in terms of the positioning and the markets and the foreign percent -- foreign participation, how is the next changing? luke: international anticipation builds have dropped off. again, is the shift and sterling about capital slight or market consents volatility? this we are going to have to wait. the lack on these numbers is huge. we are only really getting q1 numbers but it is suggesting a lot of people have left the gilt market. ther the bank of england -- expansion of qe into corporate bonds, starting to see people come back in. getting new issuance of sterling corporate bonds. to a look close as always but i think it probably continues to pressure for the next few months

in terms of the flows of .ortfolio flows in the currency for now, these are difficult markets to put your finger on. the back of it -- back of your head concern tell you? you think about what is happening here. do we extrapolate? is a dangerous to extrapolate? -- is it dangerous to extrapolate? luke: it is always dangerous to extrapolate. the blanket we have had of central bank intervention has beenolatility low lifted a couple of times and the last few days and the markets reaction has been pretty dull. that is what worries me. it is avoiding the complacency of sticking to a position and hoping for the best. we're thinking seriously about how much we want to have an exposure to yields and whether we need to be cutting it back

ahead of a big shift higher in yields. it doesn't feel it is yet but it is coming. guy: talking about ecb is all. it has been an interesting week. up next, we are going to continue the conversation with look. we are going to talk about ecb and how draghi could paper -- could taper, should taper. it is a difficult conversation. we don't understand the dynamics of where the ecb is on the story. we will talk about the pound is well. .e are down by 1.47% we saw a massive move overnight. we are seeing energy opening as a speak. opening at 37.30 in frankfurt. that is where caroline is heading right now. she will be reporting on that business in a few minutes time. this is bloomberg. ♪

guy: welcome back. 8:22 in london. opening up -- 37.30. we will be speaking to the ceo. caroline is going to have a conversation. -- whatfor to what it exactly is said here. it was an interesting week. what has been happening in european government.

.e have many taper tantrum jobs the ecb is considering winding down its easing program. sense of whatyour we got this week? to my mind, the market reaction of the story was more interesting than the process story that was in there. it is thinking, we are to shift to a fiscal stimulus at some point. that is going to have an impact in terms of inflation. we are not going to get support from the central banks. they start believing in that that this is the kind of market reaction we are going to get. this is nothing compared to what would've happened if it was a real tapering from the ecb, rather than just tapering -- just chattering. expectation your you go the ecb downgraded its

euro forecast but it did not upgrade its inflation forecast. it tells you a lot about the demand weakness that exists. luke: we are seeing inflation very low. not even a single digit in terms of core inflation in europe. .here is some risk the currency is going to be a part of that. -- recoveringery commodity market is going to be a part of that. you are seeing some signs of decent growth coming through from germany. that is going to be key driver for the next year for inflation around europe. yields are fairly well supported by the fundamentals in europe. they will come up and gain a little bit. this is a fair level to reflect really where they are. we are going to worry about italy for the next couple of weeks until the referendum. the politicians are still

wrangling in spain to get a government formed that is secure. the periphery in spain at least has shifted to moving with credit markets. italy is focused on that referendum. guy: if you ever the ecb bed, ever -- howou suppressed are yields as a result of the qe program? luke: on a pure guesstimate of how much support you've got fridley, if we did not have the referendum, how much spread what a trade out of germany? it would be to 50 or 300 basis points. it is still has the largest that gdp. that is going to be conservative going forward. until you get constitution change in italy, they are locked up in terms of changing the structure.

guy: if they downgraded portugal, will be the ripple affect? luke: portugal doesn't seem to have a float. it has been on its own in terms of coming going. -- coming and going and it has not made a lot of difference to anybody. portugal seems to be there and people have isolated their views on portugal. i think that is probably fair. it is a different set of problems. guy: when you look at what is happening in the u.s. money markets, the fact that it is tapping into libor and pushing global investors into peripheral europe, is that a dangerous trade? luke: as long as europe six -- europe sticks together, it is not a dangerous trade. guy: it is a solid trade? luke: it is ok.

guy: luke, it has been great to see you. indeed.u very much up next, back to the pound. class crash out in asia. more on that story -- class crash out in asia. more that story next. this is bloomberg. ♪

guy: welcome back. you're watching "on the move." let me talk you through the markets and show you what is happening. look at the impact the pound is having on the ftse 100. the highs are 71.22. 78 are where we are trading. let me walk you through some of the individual movers. it is interesting the breakdown we are seeing today. hit.et taking another the pound and the impact we have seen already by the company is a big factor for investors. we are pressing more of that in? .8%been stuff brought up by

. anglo, look at the translation affect. you're seeing the ftse 100 as the pound price starts to rise. they are respectively global stocks priced in pound, lifted on the ftse 100 and they are .ocketing today at 3.2% the pound continues and probably will be for some time the biggest topic of conversation. it is the brexit. speaking yesterday with john micklethwait, he says philip hammond says he was not targeting a sterling exchange rate. >> we don't target and exchange rate level. we have a free exchange rate. the market will make its judgment on the appropriate level of sterling at any given time. history tells us those judgments can move fairly significantly on fairly small provocations. one of the self-denying ordinances for chancellors is we

don't speculate on the appropriate exchange rates for sterling. >> you don't seem unhappy about the current levels. >> it would not be unusual for the tesla to protect the sterling too high or too low -- for the chancellor to protect the sterling too high or too low. free-floating market exchange rate. guy: the chancellor in new york trying to woo global banks suggesting the pound is the place to be. it may well be if you are a global company. as 6.1% fell as much overnight against the dollar. sayas a move that traders was exacerbated by sell orders. for more, let's ring in paul dobson -- let's bring in paul dobson. what has been your reaction? paul: a mix of consternation,

outrage and a lot of handwringing. maybe you can explain what the sequence of events was. it is not the first time that financial markets have had a flash crash. we are close to the second anniversary when treasuries had that extra ordinary lift up and back down again. it seems like the new zealand dollar -- news like this makes me think about the day that swiss went flying. guy: how are people repositioning? are they repositioning? people are still find this -- are still finding their seats after the initial move. of -- betweenort banks and customers. we are going to be talking to -- a big problem in the wake of the

swiss franc rally. until people have worked out what their positions are and where they are trading on stuff like that, no one is going to know how they are going to take their positions. guy: certain platforms have lower levels we saw quoted the way we quoted. some really difficult trades right down to the bottom. it is incredible to see how those -- it is going to be cool to see how those are sorted out. trails,ere will beat all the banks will be talking to their customers. they will try to work out where options might've been filled. where stock markets might've been filled. [indiscernible] 30 seconds which and fx markets is a lifetime. where does it leave the pound going forward from here? outhe expectation to widen

your stocks? does it change the nature in the way it is traded? fundamental reassessments. we have been worried about the pound. overnight during wide-out to levels which are pretty extraordinary. we have seen a big jump up and volatility, metrics, prices and options pushing higher because there is more uncertainty about how far and how fast it can move. the pound has felt like it is going to freefall. then after we pushed through those 30 year lows, of the weakest level since 1985 against the dollar now. people have seen those obvious next levels. the noises that are coming out of government are not helping at the moment. guy: i am stunned at the level

of inactivity surrounding the story in the u.k. it is way down the news agenda on many bulletins. paul, thank you very much indeed. what has been happening with the pound. we are going to be talking about what is happening with german stocks. peter terium speaks first to bloomberg as the green energy begins trading and fight for it. now.ng at 3674 right that story is next. this is bloomberg. ♪

caroline: welcome back to "on the move." i am joined by customer can get the. a positive time to be chair. >> it is the biggest ipo in germany since 2000 and we are very happy about this. it is 138 million shares of total volume up to 5 billion. this is a large event. it is a very positive event as you can see by the first price which was above the range. caroline: new investors interested. re we going to see more? there is more positive energy in the air right now and markets. there might be -- the ipo

climate has been warming up. we have had one last year -- last week. next week, there is more markets.in the capital it is not all focused on the negativity that we have been seeing over the last few weeks. caroline: gives a sense of your response to negativity. we are saying share cells, we are seeing concerns about the lender here in germany. carsten: we live in times where there is a lot of lyrical change on the agenda. -- lot of political change on the agenda. quiet and continuous development just like energy has shown with their ipo is what we should be striving for in order to help society and the economy. will deutsche bank be

one of those businesses? carsten: i think it's bank is doing fine and will continue to do fine. it will be helped by a lot of people because it is a mainstay of banking in europe. caroline: what about frankford positions in the world? -- doexit many feeling you believe that? carsten: i believe it is important in terms of medical change to bridge gaps. frank for it is one of those places -- in terms of political change to bridge gaps. frankford is one of those places. that is sort of the way forward overall to stimulate the economy which needs a little bit of help. caroline: -- carsten: assisting capital markets to function and the most important function are

corporate's. caroline: thank you for speaking to us. desk thee speaking to biggest one in europe since 2011. guy. guy: caroline will be back in just a moment. let's get your bloomberg business flash with sebastian salek. sebastian: the market chips and itplays the note 7 recalled operating income rose 5.5%. samsung did not satisfy the economic impact and it could be between one and $2 billion. nnt the lord has rejected group. wednesday -- -- the 29% remains.

shares of delta lloyd are trading higher. -- promised a merger with abn amro earlier this year but it was rejected. had it gone through, it would've been the biggest aching measure in europe -- biggest banking measure -- banking merger in europe. rio tinto says -- receive a dividend -- that is the world's sickest -- second-biggest mining ompany -- >> [indiscernible] to anybody -- we should not forget that it is a long-term project to build underground -- remember the underground is 80% of the project. it would take us five years to build the info structure and

seven to nine years. to be able to -- you need to be profitable. until we get to a state which is 10 years down the road, will not pay dividend to anybody. sebastian: elon musk is losing some of his biggest cheerleaders on wall street at the time. two of the companies top underwriters. he is said to be looking to raise $2 billion and a new round of risk. snapchat has begun filings for an initial public offering. that is according to people familiar. the company which changed his name to snap inc. could list as soon as march. the health of the tennis economy and the outcome of the u.s. presidential election. that is your bloomberg business flash. guy. guy: rba's green energy business

started trading in frankfurt. now trading at 36 dead. this is europe's biggest ipo since glencore listed back in 2011. let's find out what the company's boss thinks of day one. caroline: peter terium is here. the chief executive of energy. -- executive of innogy. is that steady for you? they came first quote out at 37.30 was a confirmation of how the market values it. the first a you see a lot of trading. it is going to be a bumpy ride today and maybe monday. so far, it holds up. it is a good sign because we have not overpriced the market. we're not disappointing any of our first investors. it is a good start. caroline: rba keeps 75% of the

business. wv -- rwe has many provisions therefore shares have a pretty good dividend yield. we're talking years if not decades to come. it is good for rwe and it is good for energy. really a comfortable position to be in. ? it is interesting that you are waving goodbye. is it a shrinking business model? p to go we have made a lot of promises to capital markets. it was me going out and making this promises. it is fair. i can do that as the ceo of innogy.

fulfill theds to obligations that started today. caroline: champagne flowing here . what if you turn your attentions to the ratings agencies? have set up energy such that it is a very stable investment grade. wtlong as we are part of our -- rwe, the majority will not get a rating. we do a standalone waiting so the market has a good deal on that. the evaluation of energy is almost already on a standalone basis. caroline: how difficult is it to go out and gemma investor support. has the deutsche bank story has been hit on your own shares? .eter: not really a hit we had a bit of an exciting

moment. the deutsche bank was a miner one for us. the quantitive easing discussion that we have had in the middle of this week certainly was impactng that would companies like energy companies. with the most investors, specifically the long money in the u.k. and america, is looking for a long-term investment. it is not the emotions of the data that determine. it is the long-term business case. caroline: are you worried about deutsche bank? peter: society like germany needs a stable german or european-based bank. deutsche bank is that. if we would lose that, they'll be very difficult but only for financial markets. does not have a local player

that could help them. caroline: to support deutsche bank and potentially by shares his rba -- is that peter: then i given us money to invest in deutsche bank, and i am sure those investors who want to pay money on deutsche bank will do it himself and do it directly and we have a good relationship with deutsche bank. stable customers and stable partners. caroline: congratulations on the first day of trading. we are here with the chief executive of energy -- of innogy. 36 euros, guy. guy: fascinating on deutsche. really interesting comments coming through in the way that support is going to be manifesting itself. caroline, lovely interview. let's talk about other german companies that are having a tough time. i am talking about deutsche bank and what is happening with

rocket internet? starting a startup could be difficult. rocket internet is learning that, maintaining out to -- meaning that's maintaining out to two -- what is going on? jeremy kahn joins us. jeremy, it is one of the biggest tech players, famous for cloning businesses and rolling in the states into europe. what is happening here? with a rocket, i think the problem is investors wanted to see more of these companies have a special exit and since the ipo in 2014, with the exception of a sale they did of a company called lozada earlier this year, they're not been any big exits. there -- they have not been able to show the disorders they do have have enabled to -- they

have not been able to show the startups they do have are able show profit. investors are getting very impatient when they are not seeing equity. guy: is there a conversation issue? theye of the things that told us is they think rocket does not provide enough equity compensation to the people working. they do not have very much skin in the game and there's a lot of churn. people are not putting up -- putting in a lot of effort. story.remy, great i urge people to check it out on our bloomberg terminal. fascinating to hear what is going on inside this is this. hailed as one of the top performing startups here in europe. jeremy kahn, thank you very much

indeed. let's talk about the day ahead. it has already been a frenetic session. we are going to get a reading of u.k. industrial production. german ipo very strong. get your guess in. where does pay go on your bloomberg? u.s. stanng, we get .isher speaking the meeting in washington. i wonder if i should ask him a pound question. let's show you what is happening with the british pound. you can see that massive drop, a flash crash, for the british pound. 6%.rate took is down move andfascinating

the implications of which are still being digested. let's kick it around. let's figure out where we go from here. athanasios vamvakidis joins us. what you make of it? athanasios: this is not supposed to be happening that he keeps happening. it has been weakening in the last couple of weeks. we find a u.k. data because of all of these headlines. most likely we are going to get half brexit. it is not clear what the move is overnight. most likely it has to do with self fulfilling prophecies -- the lack of liquidity led to this move. second, i think this issue with liquidity is extremely important. that are supposed to

happen once every hundred years because -- there is a problem with liquidity and affects market. this has to do with regulation and banks like us cannot step in in such cases to provide liquidity to the market. guy: it does seem there are point in time. we have seen it all week this week that is been selling around 7:15 a.m. in london. asian traders are waiting for the -- the official liquidity and a time zone to be able to execute the orders they want to deliver. where are the gaps? athanasios: during -- liquidity is much more problematic. there's something that goes beyond that. fx is supposed to be the most liquid market. apparently it is not. what we have done -- the reason we have at the study which we

devastated in the last couple of fx,s for the same volume of you hit about 60% sharper moves and the market. cannotrge extent, banks take the risk that they used to take so in past cases instead of stepping into the market and taking the other side of the debate, they are not there. moves.e these excessive guy: what can i expect now in terms of listening on sterling? statewide? -- stay wide? do we see people repositioning the stoxx? how is this shaking the market up? athanasios: this position was not so much stress. the flows which have seen before were all one way. increasely this will the short position in the market

. the big question is at what point the market will start focusing on the debt. -- focusing on the data. at this point, brexit uncertainty -- guy: has the market priced out central bank intervention now? is the expectation -- i am thinking of all of the other ancillary reasons. at the end of this week, looking back, data strong, monday, tuesday, wednesday. banks start to think about what it is going to do next. do we price it out now? -- the marketter has reacted so much to the headlines about hard brexit. delete the comment about this particularly the comment about guy: i someone describe it

the lazy remainder. thank you very much indeed. i'm going to join jon ferro on the radio. ♪

francine: sterling zwicker pounding -- the currency plummets more than 6% in two minutes. pledges discussions with a possible $14 billion fine on the table. germany's biggest bank is said to be exploring options for raising capital. december. the markets expecting a fed rate hike by the end of the year. investors await the latest jobs numbers from the u.s. ♪ >> welcome to "the pulse." live from the birds european headquarters. i am nejra