>> trumps tax revolution. says hispresident plans to slash taxes will be the largest cut in american history. minister firese the starting gun on his october election. the bank of england's marked

20 years of independence.

>> almost 90% of 3.3 million eligible ballots have voted for statehood. hasgovernment in baghdad pledged to do whatever it takes to prevent succession. the kingdom bolsters its finances amid an economic overhaul. there has been $4.5 billion of the 30 year offering. submit $40vestors billion in beds. banksw zealand central has held rates at a record low.

the economic growth outlook weakens and inflation slows. the new zealand dollar fell on the announcement. the german finance minister is ready to get -- give up the post that made him a dominant figure during the euro crisis. he is a veteran of angela merkel's three previous cabinets. he was charged with helping to renegotiate the unification of east and west germany after the fall of the berlin wall. u.k. consumer confidence rose to its highest level in six months. the report from the center for to signs that consumer spending is starting to recover after being held back by faster inflation. hefner has of hugh died at 91. he died from natural causes,

surrounded by friends and family at his home, the playboy mansion. his wishes are to be buried in the crypt next to the grave of maryland munro. monroe.yn global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

it is backed by $1.5 billion in its ipo. we hear this news that mastec, densoo, -- mazda and could be forming a process to accelerate that. . cosmetic stocks have risen as well. we are hearing that duty-free sales have increased at seoul airport. cosmetics were up 21.8% year on year. in dollar terms in august. >> thank you. president donald trump and the republican leaders have projected unity for their long-awaited tax plan that would represent a major legislative when the.

>> he called the framework a major revolutionary change during a speech in indiana. >> we're going to cut taxes for the middle class, make the tax code simpler and more fair for everyone. we're going to bring back the jobs and wealth that have left our country. our reporter joins us to break down the details. there is already a hefty deficit in the united states of america. how are going to find this? -- to fund this? said they're looking to allow for $1.5 trillion in tax cuts that would add to the deficit. a significant departure from

what republicans said in the tax, which is they want any cut to be revenue neutral. that is a position they have been forced into, because they had to abandon their revenue raising proposal, a border of adjustment tax. -- a border adjustment tax. they're looking for ways to raise money for this tax reform efforts. ares difficult when they looking to reduce taxes on some of the wealthiest americans. that is the basics of it. the other challenges the administration faces in bringing this through? one of the things we are seeing already is the president ining out and boxing them in terms of the timing, creating expectations when it comes to drawing a redline on

the corporate tax rate, where he said that the proposal is that 20%. that is a nonnegotiable redline. he wanted to go lower than that. you knew that was a chunky thing to start drawing lines in the sand. toaddition -- a tricky thing start drawing lines in the sand. he told conservatives he expected the senate would act by the end of october. time frame,ry quick especially when it comes to congress. he is creating this expectation that congress is going to act quickly. folks like us will be pointing it out if it doesn't. >> where do democrats stand? the so-called framework for tax reform has more gaps. what are democrats going to want? >> there is a lot of criticism from democrats this proposal

taxses too much on giving breaks and reducing rates on the wealthy. and it doesn't do enough of for the middle class. the details in the proposal on how the middle class would actually be helped our sk -- are sketchy. it is also getting into the midterm elections. those are going to rip up come january in terms of the primaries and things like that. democrats and republicans are going to slip into a campaign mode. given the level of acrimony in washington, there is not a whole lot of incentive for democrats to want to work with republicans on this issue, particularly if the latter pursues the reconciliation process. republicanrequire votes to pass the tax overhaul. >> thank you.

joining us here is the ceo of investment management. we have this chart which shows a couple of the trump trades. what are your expectations? this is a framework. we have yet to see the effect. if it does come through, it could have a positive affect -- positive effect. it takes time for this to come through. there will be some cuts. a little bit of reinvestment. >> do you believe everything? a lot of money companies take will be buybacks. it might affect the share price

in the short term. >> he needs to win. he needs this to get across the line in whatever form. the dollar is on the turn. we look at this story this morning. you need more of a steepness in the curve before the dollar follows through. you didn't be stance on the bond market this morning. you didtalking about -- the stance on the bond market this morning. markets moved by this? >> not yet. republicans, one of the main reasons they broke up with president trump is because -- they backed president is because this is what they believe in ideology -- ideologically.

you can argue if -- it is good for the dollar and profits. we will see how that affects markets. is it because it is good for the u.s. recovery? the united states economy has been strengthening. people are worried it is running out of steam. this might be a further stimulus for the economy. >> how high do these yields go? calling 1.9% on the tenure by the end of this year. merrill lynch, 2.85%. we are currently at two point -- 2.34%. what are your expectations? >> we will wait and see. bank'sfederal reserve president spoke.

he said he opposes further rate increases, contradicting janet yellen. he warned the market. he said, you are not on board with what the docs are saying. -- with what the dots are saying. 74.5%.

they have to end this very low interest rate. because of what they were doing, because of what they planned, they are not going to have to do a number of things they would've had it to do otherwise. 130 basis points. we end up with a lower rate. how much lower? >> uncharted territory. we're going to end up in the low two's. >> stay with us. >> the bank of england celebrates 20 years of independence. what will this mean in the future? japan's parliament dissolved ahead of a snap general election. this is bloomberg. ♪

>> 6:19 in london. 1:19 in a cigna poor. a fairly strong session in the united states around the tax story yesterday. is the bank of england's mark of 20 years of independence from the united kingdom. from britain, from central banking and the world beyond. the latest round of brexit talks wrapped up in brussels. >> we get the policy announcements from the central banks of egypt and mexico. >> let us go to the bloomberg

business flash. telecom is set to name genish as its ceo. it was approved unanimously yesterday. the move cements the telecom management lineup after being led by three ceos in the past 18 months. novartis is considering a deal for radio pharmaceutical companies advanced accelerator applications. this drugmaker has approached aaa about a deal. that comes at it is seeking acquisitions to boost growth. the civil aviation authority is launching enforcement action ryanair forna -- failing to give customers accurate information about their flights. this consultation will last

seven days. that is your bloomberg businessflash. >> thank you. the bank of england was granted operational independence over monetary policy. >> the central bank is holding a 320-yeare to mark its history. negotiations continue over the u.k.'s relationship with europe. wraps up the fourth round of talks in brussels. with hermys inv estment amn -- management -- the investmentys management, still with us. i remember when this big government policy was brought in. it was a sea change in central banking.

said, -- thement bank said, you playing ping-pong with us. the bank of england had one target. people were buried about inflation. -- worried about inflation. they have failed to make inflation at below 2% over the years. we have this very weak recovery from the bottom of the crisis. terling, they vast let on brexit politics and the bank of england. on brexitcillate politics and the bank of england. should a rate hike be good news?

this shows the panic play of hawks and doves. saunders. zero.'s at but they risk losing all that credibility? >> the doves in there. they are going to have to start to tighten. higheron continues to be than they expected. knew the pound has brexit,y the day after people said, this will push inflation up. and people said, it will be temporary. the fact that we are talking about rate hikes, is that because inflation has proved to be stickier?

have we forgotten all the things we of said? -- we have said? rney was waiting to see the negative affects of brexit. some of which are still there. the underlying fundamental case if brexit hadn't happened, he would've hiked. but they will have to try to do something about the inflation. labor said it theresa may had failed with donald trump. the united states is leading against bom -- levying against bombardier. is this a hallmark against the ability to have a global trade war go >>

>> the united states has a lot of internal capability. they are not that dependent on the outside world. president trump has been talking openly about protectionism. in this environment, it depends upon how much people want to negotiate. people are saying we are not going to buy the few fighter jets. i am not entirely sure. 20% does not mean that tariffs are coming through. system goestates through many iterations. the americans are saying, we will be quite tough with this. this is a taste of the world post-brexit. >> people are asking what does this mean for a trade deal?

thank you very much. next, after voting overwhelmingly for independence, iraqi kurds call for a dialogue with baghdad. the oil markets are on the move.

>> 6:30 in london. 2:30 in tokyo. outs of talk about of -- ab japanese politics. let us go to the markets. interestingly, some weakness in japanese stocks. index is set for its

longest stretch of orderly gains since 2013. a rising trend overall. looking at the 10 year treasury newss, quite a bit of regarding tax reform in the u.s.. 34% is where we are. averagebove the moving for 200 days since july 2008. the dollar is hitting a six week high on its fourth week of gains. breaking out of its short-term trend. weakening., testing its 50 day moving average. it has gone below it for the first break of that in two months. shinzo abe has dissolved parliament ahead of the general election.

you have the tokyo governor. and the gap has narrowed in the opinion polls. party mayocratic decided to merge with the tokyo governor's new party. where briano tokyo folwwler joins us. can you sum up what compelled abe to call up this snap election at this point? brian: you were on december. ething.are on to som the reason he is seizing this opportunity, there are three good reasons. the economy is a solid. economic expansion has happened for six straight quarters.

the labor market hasn't been this tight for a few years. there is a feeling of relative prosperity. the geopolitical tensions have played into his hand. he has emerged as a leader who looks consistently stable, thoughtful. people agreed that is important during this time. maybe the most interesting ike as is the rise of ko the tokyo governor. abe is seizing the opportunity to go ahead with the elections before the opposition has a chance to organize. that is what his big back is. -- his big bet is. >> let us talk about the tokyo governor. 18% of the respondents would vote for her party.

second behind the liberal democratic party. she is quite a formidable force. >> absolutely. .henomenal to see she has been successful at the local level. her party defeated the ldp at the local level in july. she has encouraged members of other opposition parties to defect into her camp. this looks to them like a winner in terms of leadership. how does she play out the -- nationally? into the ruarl -- rural parts of japan? japan off ofwean nuclear power and freeze that planned hike of the sales tax. we will see how that resonates.

>> thank you. brian fowler. fascinating story. interesting that financial markets have had a little sign of concern about this political shift in japan. committed to japanese equities? >> there is some money coming out of etf's. there is a good a story there. a possibility of a tax rise. find japanesehis politics unfathomable. that is why it takes time to react. they want them -- they want to see how it plays out. of franceve echoes

and other places. this is quite interesting. ferment in its political structure. trent -- trump was a spoiler, brexit was a spoiler, i have the risk from markets is that there could be less economics. >> absolutely. this is good for the markets. are trying to appeal to populism -- the appeal to populism might stop that. >> do you draw a line between quantitative easing and a rise of populism? wants to draw a

link with his policies and the financial crisis. i'm going to be completely destroyed by everyone. m is the result of the pain of the financial crisis. because the way that quantitative easing helped itng us out of the crisis, left many people across many nations disenfranchised. up wages. you had a cut back on basic services. employment, but people are not happy. up and theyot gone have no access to services. ease, butessary to people feel left out. >> is the next step more fiscal

latitude? is that the next step, in rebalancing some of those iss ues? >> we started by talking about the united states. the answer is more fiscal eas ing. that is the stimulus. least mccrone and corbin are calling for the exact opposite, a fiscal tightening. let us see how that plays out. macron and corbyn are calling for the exact opposite, a fiscal tightening. >> the iraqi kurds voted overwhelmingly in favor of

independence. spokesperson for the kurdistan government called for a serious dialogue. our reporter joins us. how is this to play out?

>> direct instructions from the there,ent to avoid going you can see much more of that as they flex said their muscles and to try to get more leverage. 50 percent of the population, women, would be allowed to drive on their own. significant is all this paper coming to the market as we get longer and longer into the distance? >> good timing. allowing women to drive. it is the second u.s. dollar bond issuance. they are trying to's -- to cover some of the finances as they embrace a lot of reforms. you are looking at $4.5 billion. bids.llion in

with 2026 paper, let me jump into my bloomberg. the yield on saturday, 2026 rising the most since july. many switch to the new paper. we'll have to see how they deployed. plenty of expectations now that women are back at the wheel. >> thank you. sakher, you have been visiting saudi arabia. your thoughts on the unexpected change in western newsrooms? i was talking to one of the saudi princes, who was putting forward aion -- vision of a major reform in the country.

they want to change something else. they looked towards turkey, and see a touristy market for muslim nations. they are thinking about revitalizing their economy. they are allowing women over 30 to drive. recently, the political situation still remains unsettled. mean?t does it we have a new economist in the region. $90 billion. the decision to allow women to allow $90 billion by 2030. 42% of the uae participate in

the economy. this is revolutionary. >> this wants to win over the middle class. we saw this recovery benefiting one segment of society more than the majority. this could be the framework with which they can benefit. >> we're waiting for the latest update.

do you see that coming to london? >> the disclosure is necessary. >> thank you for being with us. the ceo of hermes investment. saker conversation with continues with bloomberg radio. >> the personification of productivity. let us talk about robo-takeover. we will focus on automation. "the largest it tax cut in our country's history. look at his plans to reform the u.s. tax code. this is bloomberg. ♪

>> it is a 3:47 in the afternoon. the dollar weaker this morning. the commodities and yuan could trigger. >> let us to a bloomberg business flash update. the civil aviation authority is launching enforcement action against ryanair for failing to give customers an accurate -- accurate information about their rides. there is a consequential consultation that could last seven days. promote the to general manager for operations to ceo. the selection was approved unanimously by the company's renumeration and nomination committee.

the move cemented in the telecom carrier's management lineup. is considering a deal for radiopharmaceutical company advanced accelerator applications. the drugmaker has approached aaa about a deal, as the company is seeking acquisitions to boost growth. apple has agreed to terms with bid topital in its $18 boost its memory chip unit. the iphone maker is part -- has accepted the offer.

gadgets including the digital home hub and the spot. the screens provide a platform for customers to view movies and books from amazon prime. it is the latest move to compete with apple and google in the race to up with homes with smart devices. that is your bloomberg business flash. wrecks 200 million new jobs will be needed by 2020 to make up those lost by automation. accelerated programs help entrepreneurs to create new jobs . the sorts of global challenges that entrepreneurs are working towards solving? 1.3 billion people don't have

electricity. that is more people than one thomas anderson -- when thomas edison turn on the first lightbulb because of population growth. we are working with companies who look at these problems. they see market opportunities and design solutions. >> in terms of the entrepreneurs you talk to, what was the biggest challenge for them? have a social impact, but to make money. >> every business designs solutions to problems sets. that is how we all make money. these entrepreneurs choose to solve problems sets that most people think are impossible. the solution to societal challenges is to solve harder problems. >> what is the answer when it comes to automation, and the extent to which it is going to

take employees out of the equation? the statistics are scary. 47% of theed states, jobs that exist today one exist in 2035. where are future jobs going to come from? foundation says all net new jobs will be created by entrepreneurs. we don't know what those jobs are going to look like. we know these entrepreneurs will impact partnership. they are the job creators are of tomorrow. >> give us a concept of the timeframe's language these ceos think in terms of short-medium -- short, medium, and long-term. there is a great deal of idealism versus a economies. run intocompanies can

roadblocks financially. 1.3 billion people don't have access to electricity. most of those people live on less than two dollars a day. one company is bringing solar to those communities. they are reaching 70 million households. at where trends are going, seven out of 10 of the fastest-growing economies are on the african continent. enter burners are going into markets we don't consider to be markets. -- entrepreneurs are going into markets we don't consider to be markets. they might be in this game for 15 years. at the end of the day, a billionaire is about impacting a

billion people. they will become billion-dollar companies in the process. have the world forum. this brings together many of the businesses in you have been working with. it brings them together to learn from each other. what are the kinds of things they need to share? entrepreneurship is hard. no matter what company you are starting. 10 of these companies would have normally failed in five years. the average age of companies in this program are eight years old. how do you grow and employee base? base?employee $150 million of financing from the sovereign wealth fund in a market not used to investing?

>> we cover these kind of stories. think these more millennial-orientated leaders are moral == -- are more socially aware. talk about the scope of people that are hungry to work with you. >> one of the cofounders of barclays, the largest financial group in the world. >> you can watch the show using tv . and attack atn in

the bottom of the screen. bottom of the screen. markets are reacting to donald trump's outline. you're seeing a real move along with the indonesian. rupee. the dollar is stronger. equities are in good form. what is going to happen? we saw some initial reaction to what donald trump is proposing about u.s. taxes. that is being tempered in asia because of the oil majors that have been weighing on that particular markets. one hour and four minutes to the start of your cash trading.

wewe will look at these numbers when we crossed the bloomberg. -- across the bloomberg. -- cross the bloomberg. launching an enforcement action against ryanair. all the markets are next. ♪ who knew that phones would start doing everything?

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his plan to cut taxes will spur economic growth and will be the largest cuts in american history. the dollars bid. anna: japan's prime minister fires the starting gun on the october snap election. manus: the bank of england marks 20 years of independence. we will hear from the governor mark carney and stanley fischer. regionalbreak down the backlash and what this could mean for oil markets.

yous: you're welcome to bloomberg daybreak: europe. anna: a warm welcome, it has gone 8:00 in germany. the consumers confidence, the previous number 10.9. you're seeing as we run up to the election, this would have been taken at that time. you're looking at a fairly high breaking above the 11 level so you're seeing a nice rise in german confidence. anna: let's talk about what is talking -- happening in the retail sector. third quarter sales missing estimates put the pretext profit number comes in line with estimates. we have been

delivered by the company. the growth margin looks in line with estimates. looks to be amber little week. they talk about continued rapid growth, online sales are estimated to grow 25%. next year the plan to launch another new brand, they have an aggressive summer sale. it succeeded in improving their inventory. they say they got off to a good start for you it was in the second quarter that they warned they would need to discount more in the third quarter after -- after an annual 27 percent surge. that is something they were concerned about and from what they are saying they managed to do something to tackle that. sales slowed somewhat toward the end of september. manus: they are reiterating their guidance growth of 10% in

ebitdaf the adjusted lines. bookings are up 7%. , up byre some bookings 7% shoes. -- 7%. and equity trading at the start of the session. this week could be higher, picking up the optimism we saw built into the u.s. session. inspired optimism around the russell 2000 and we were talking about how some of the companies we pickedstarting and up optimism in the european trade. at thelet's have a look

risk radar. the bond market, this may have a consequence. when you look at the government bond, you have broken the 200 day moving average, the market needs to see a steeper curve and taking the dollar further. what is speaking the markets? how do you fund tax cuts, it is not a difficult question but it is for the bond market and they are a little bit spooked. the probability of a rate hike 73% this morning. bonds will be in focus. i .6 in saw it up yesterday's session. effort tax repatriation work? we get kasey numbers so be aware of that. you're talking about the bond markets. and german bund traders

[inaudible] we are seeing some movement this morning. can be in serious danger with the day unfolding. what happens with the ecb versus the fed and the german inflation data which will come out across the nation as we go forward through the day. anna: let's get a bloomberg first word news update. juliette: japan's prime minister has dissolved the lower house of parliament coming ahead of us snap election expected to be held in october 22. the dissolution of the more powerful of the parliament comes a year before it is required by law. the iraqi kurds have voted overwhelmingly in favor of or --ndence, almost 93% voted. fromesult is retaliation

turkey and the government in baghdad is pledging to do what it takes to prevent the session. saudi arabia has raised $12.5 billion as the kingdom bolsters its finances during a economic overhaul. the government sold $3 billion of five-year notes and $4.5 billion of the 30 year offering and said investors submitted $40 billion in bids. new zealand's central bank has held interest rates at a record governore acting signaled he does not expect to raise rates for some time at the economic growth outlook weakens and inflation slowed. the new zealand dollar fell in the announcement. the finance minister in germany is ready to give up the post that gave him -- made him a dominant figure in signals a watershed moment. it was a veteran of three

previous candidates and served under helmut kohl. the bank of england's chief economist said an interest rate increase should be considered good news for the u.k. rather than a source of fear. he is among the majority of policymakers who believe that the economy is nearing the point where a reduction in some stimulus might be warranted. today the boe is marking 20 years of independence from the government. u.k. consumer confidence rose to its highest level since belowber but remains pre-brexit levels. signs consumer spending is starting to recover after being held back by faster inflation in the wake of the decision to leave the eu and hugh hefner, the founder of playboy magazine has died, aged 91. he died from natural causes

surrounded by friends and family at his home. the playboy mansion in los angeles. cryptto be buried in a near marilyn monroe. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. find more stories on the bloomberg at top . japan closing out the session, the nikkei is higher and rebounding from the selloff with japanese stocks. you have australia hired by point one of 1% but the weakness in hong kong and -- in the taiex and other markets that is dragging the overall regional index down. that is the longest losing streak we have seen since december. of squaring on what has not been such a great month

for the msci asia-pacific index. a big debut on the stock exchange. as high as $.18 -- 18%. seeing must and tell you to arise on a report that they are teaming up to accelerate the pace of electric vehicle making in japan. this is the report according to the nhk. korean cosmetic stocks on the rise on news that we saw presales of korean cosmetics at a record high in august of 21.8%. channel bit of a back considering the lockdown on travel. manus: resident donald trump and republican leaders have projected unity. the framework a revolutionary change that will spur the economic growth and

higher wages for average workers during his speech in indiana. good morning. a revelation and shake up the way americans pay their tactic -- taxes. are you as shakeup as donald trump says we should be? >> the challenge here is the devil is in the details. we have become accustomed to grant statements followed by little follow-through. the one slight difference in this case is that republicans were born to cut taxes. the question is what is the extent of that and is it just tax cuts or is it some sort of fundamental reform? anna: it seems markets are eager to trade without the details. we saw the russell outperform

thosew companies, all of outperforming. in the last couple of weeks as we talked more about that that happened again. guest: there's a certain amount of that. we must recognize that the russell has outperformed -- and some of that is positioning. cover some people to of their positions. there is something in that and the reality is the russell 2000 valuations are still very stretched. relative to the s&p. mark thatre is one thebroken, we did it in treasury market breaking 2.3%. there is a shakedown in the european markets. but on markets want to know how you will pay for something.

do you expect steeper curves, a more aggressive move from the bond market when it gets more detail or until he gets more detail? guest: what happens in markets is it is not necessarily happen for some time and when it does it happens really quickly and aggressively. the answerould frame to that question is at the beginning of this year one could have postulated the fed would raise the rate three or four times which is what they have done and 10 year treasuries have to 2.m 2.62 -- down bond markets are where you have the greatest risks and complacency. iwould reframe that and say think inflation is trending back toward 2%. and itig risk

complacency, where do we end up on that? guest: when one looks at markets, the real challenge is how bonds attract investors who are less willing or able to take risks. the greatest risks are embedded and it is not too difficult to see u.s. treasuries at three and above 3%. with -- mr.u concur gillespie would suggest 3% is attainable. what james bullard made the speech in the past and he you'rem surprised that not more with the fed. r we underpricing inflation pressure in the u.s.? guest: we would agree with that. is,n where unemployment given where the trends in gdp growth are, we think inflation

is underpriced and we would have normal inflation positions in portfolios. it is not that expensive tampa man and it provides you a good risk return opportunity. anna: what is the time horizon? think about where the projections are, the market is pricing in 121.5 hikes between now and this time next year. we think that is the pessimistic view of what the fed could do. manus: the other big set piece is corporate dollars repatriated to the u.s. so we think about it and call it $1 billion. i can still borrow 3.5%. will they bring it home, will it make a material change because -- last few greater asians

reiteration's, money was spent on buybacks. it was great for equities but it may not be so great for capital expenditure. guest: the key, this goes back to the devil being in the details and the challenge has been is you have some sort of perpetuation of -- ray patry flow to it would shareholders. anna: there might be a need to have that kind of detail in there. does the trump trade push the dollar higher? we had a chart earlier talking about maybe we need a steeper curve. guest: we think curves are flat in the u.s. manus: it has been tracking, the

dollar has been tracking the curves. guest: we are surprised at how flat they are. anyre not factoring in risk. the one challenge to the stronger dollar view is it is based under the assumption that other central banks do not follow the fed to some extent. there is a perception the fed will raise rates but people are complacent. tank --ralian reserve the canadian banks have raised rates. we think that's the one thing we would say about the potential to rise materially is you need to know what other central banks will do in that environment. anna: thank you. manus: dissolving the diet. calling an early general election and we focus on the political risk in the world's

third biggest economy. anna: we will look at merkel's options as she seeks to form a coalition. this is bloomberg. ♪

manus: it has gone to 20 p.m. in hong kong and 7:20 a.m. in london. are futures telling us about the start of trade? we have tax break optimism perhaps affecting european markets. the a's in session was down .2 of a percent with the oil prices weighing. bunds are on the move and the treasury in the u.s. is moving aggressively. the bund markets are on the march. more about that in moment. juliette saly has your business

flash. juliette: the u.k. civil aviation authority is enforcing action against ryanair. the regular has asked for a meeting with airline is part of a consultation that will last seven days and could take legal breaching consumer protection laws if necessary. mark zuckerberg has defended his company after donald trump tweeted facebook was always anti-trump that the social media moguls that he should not have thatssed as crazy the idea [inaudible] on socialors focus media's role in russia's efforts to interfere in the 2016 presidential election. apple has agreed to terms with bain capital in the $18 billion bid for the memory chip unit. the iphone maker is part of a

consortium brain has assembled. toshiba spokesman said the company is aiming to conclude the contract as soon as possible and apple did not respond to requests for comment. that is your bloomberg business flash. talk about what is happening in japan. shinzo abe has dissolved parliament ahead of the election on -- in october. manus: our guest is still with us. here we are, shinzo of a reckons i have a fair wind sign me. there has been a bit of a direction, the u.s. election do not go smoothly. how much risk are we under pricing that shinzo abe may not be as victoria's as he thinks he

might be? >> markets have got this probably right. equity markets have continued to rally and the yen is being broadly weaker. what we are saying is that possibility that of a winds is high and the probability of something materially changing is low. i would not use the word complacency. that is a good way to lose money. what we's -- would say is based on the data where looking at, we think there is a reasonable chance that he retains the market. anna: let's talk about other parts of the world. the political scene has been busy this year. radar, lurks the potential for an independence referendum. is this something that the

periphery risks more political sit -- political concerns around europe? >> that is one that has been going on and lingering in the background for decades. the language of education and in schools and move from spanish to cattle and use it in place a long-term trend that is difficult to change. stage ait is that this relatively isolated incident. what you're seeing in europe is a very big pickup in terms of growth and those growth expectations that are coming into europe a much greater than people would have predicted 6, 9, and 12 months ago. backdrop ofith the a functioning franco-german relationship. manus: a little bit of breaking news coming through from china.

this is a demand made by china, energy car output by 2020. this is requiring a minimum by all companies by 2019 and sales of 20,000e with sales cars would be eligible. anna: they broke nose over the weekend -- news over the weekend. let's get back to what we were talking about in europe, not too concerned about what is being -- going on in spain. this is what you think is an interesting one to keep our eye on. >> the question is who sees

bunde in and years -- y yields. if you want to short german bunds it will cost 20 basis points a year. in the markets is there is a close relationship between european financials and which is onields one of the charts you pulled up. if you have a negative view on takeyields, you can negative position on financials. thank you very much. stocks are set for a higher opening, there is a tailwind coming in from the asian market. it is it from anna and i. argentina's president joins

bloomberg for an exclusive interview later in the day at 630 u.k. time. anna: the market open is next. this is bloomberg. ♪

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thursday morning, good morning. welcome to bloomberg markets, cash equities opening shortly. it has been a big open already for the bund market. i am guy johnson in london. matt miller is in berlin. treasuries boosting the dollar and sending small caps a soaring. we will speak to an investor who's biggest short position is the russell 2000. how long will he hold that position. hitting the gas.