anna: maintaining momentum. stocks and the you want extend losses. the clock ticks for catalonia. the region has just three hours to renounce its claim to independent. we are live in barcelona. anna: an exclusive, the ceo hits back at critics over possible ipo. 25% governance rule, there is a liquidity test. manus: and the campaign mounts against yellen. conservatives urge president

trump to not reappoint the fed chair. they are expected to meet today. anna: a warm welcome. i'm anna edwards. outlook 2017he sales, thirdonth quarter cells coming in at 13.1 billion, roger with the 1.4 billion the analysts had penciled in. the real question going into the numbers as to what extent can be success in newer multiple sclerosis meds offset cancer drugs? they are relying on new drugs to

drive growth as the biggest medicines that have been treating cancer. we got diagnostic sales and other areas of the business being broken out here. said it wouldy show a rise by mid-single-digit percentages. manus: that's good to sap and their numbers. revenue diet from sap, will be 23 point $4 billion to three -- $23.8 billion. lowerentally a little bit , 23 point or-23.8, the original guidance was 23 and three.

new guidance for them. sales outlook, strong business software, and what they're trying to do is be focus come getting customers to focus come getting customers to of eight their sap. they are saying they raise their sales target for 2017. more customers have signed up for the new business. executive extent when your clients on that part of the business. new numbers just hitting the bloomberg is well. third order revenue missing the lowest estimates out there, but on track to reach the outlook for 2017. the ceo will join bloomberg for his first view of the day, coming up in just a few moments. manus: were trying to get the risk radar.

the first question i have is, where were you in 1987, ryu at school? -- were you at school? the dow jones lost 508 points, the biggest loss in history. if that event risk cap at, and no one is calling that as a base case scenario, you would essentially lose 5000 points. that would be the equivalent -- there are things to learn from the debacle. historyw much does rhyme, that's the west and asked about how the similarities are enough to fuel a bull market in worry. whether there are real parallels, we will see. number for gdpod out of china, 6.8% but it failed to reignite the market i any

substantial margin. msci asia-pacific trading just a touch higher. south korean central banks trading their outlook but that has not lifted the market. we are flat in the united states. the dow, the biggest increase in five weeks and another record on the s&p. delivered the forecast for the first sales growth in almost five years. the beige book as well, crude $52, and will hear from a call on the oil market a livid later. >> china's robust factory out put in consumer spending cap a nation's economy humming in the first order. gdp rose 6.8% as industrial production increased .6%. retail sales jumped 10.3% from a year earlier. a firmves president xi

footing to deliver on his pollution andn in shift to a more sustainable growth path. asking the probe ties between hsbc ends denver charter. according to the financial times, chancellor philip hammond said he passed on can learn that the bank -- passed on concerns that the bank have handled illicit funds link to the family by hong kong and divide. heart of thehe political scandal in south africa and have to night any wrongdoing. spokesman for hsbc and standard chartered declined comment. 's separates leader has until 9:00 a.m. you great time to clarify his vision on independence or face dismissal and the prospect of the region being governed trump madrid.

-- governed from madrid. he insists he has a mandate to secession but has not made an outright declaration. spanish authorities have threatened to invoke an article to take control of the region. in the u.s., house conservatives are urging president trump not to reappoint fed chair janet yellen was expected to meet with him later today. one representative circulating a letter for colleagues on the house financial services committee to sign against her appointment. he says janet yellen would not be a great successor to janet yellen. oil has traded near the highest close in three weeks as exports from northern iraq fell by more than half amid fighting between government troops and curtis forces. -- kurdish forces. is in a comfortable range and would not rise above $60 a barrel without some kind of disruption.

inc. markets have priced in some and we expectent to see prices may be spiking up toward extinct. -- up toward 60. >> and its 30's anniversary of black monday. october 19, 1980 evan, all the ringgit -- single biggest day stop market crash. the day marked a divide between old and new markets, being the first significant instance of computer-driven trading running amok. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . manus: always good to see you. that's get a market update from hong kong. afternoon, what's

happening in new zealand, stocks trading at a record high and the kiwi dollar getting hammered as reports emerge that the opposition labor party is the first partner of -- the kiwi dollar around the 71 handle right there. it has been a busy session in asia. the nikkei to 25 extending gains for a 13th session. the best street since 1988. assets under pressure the bank of korea revealed the cost be losing 15%. some ofhares dragging hang seng losing .2% chinese stocks are falling as the latest run of data failed to induce investors, perhaps indicating an upside surprise.

reports that ipo has -- apple has cut orders for november and december. korean aerospace surging as a resumes trading in sold today. philip -- the company says it's on track to reach its target for 2017. joining us from the netherlands for his first interview at the day is the ceo. good morning, eric. if any investors are concerned that the revenue number in that third quarter was a little bit light compared to estimates, should they be concerned? morning, and thank you for having me. they should not be concerned. q3 is a good quarter, the company is growing by 1.3%. this is once again coming from activities that have been growing 22% during the quarter.

it represents more than two thirds. it'se same time, profitable because the have continued improving by 50 basis points and stands at 10.5% for the quarter. our transformation is a journey. happy to see the rigorous implementation of a strategy is paying off. isus: part of that strategy bidding and a number of different areas. i wonder if you can take us in terms of what your bidding for, certain contracts. what is the movement in the u.s.? eric: we have been worldwide. in q3, quite success on winning big contracts. with sought alliance

american tower corporation. there are two leaders in their respective industries that are merging. ellen one hand, the world of telik medications and the world of smart connected lighting. lightingg to integrate and we will in that fashion not only improve wireless global access that lighting. anna: can i ask you about the home unit? i know it's set to return to profitability, that's the expect patient. when is that likely to happen? or,: we are entering cute ,hich is -- were entering q4 being already profitable. we believe we are well on track growingve and were not

looking at the past, we are growing looking at the future. thexample, we've launched possibility that you will have in your home to synchronize your life with movies, gaming, with music, enhancing your entertainment experience. that onf we extrapolate the consumer side, what more are you going to have to spend terms of let's say communication with people like in terms of using smart tech and doing something better in our homes with lighting? is there are marketing cost there for you? are you going to spend more on that side of the business? right,ou're absolutely we have to put it on the table when it comes to exactly what q4,e been doing in q3 and where we start growing

substantially. were talking about 28% in q3. , amazon isand launching the new speaker in order to make an easier connected smartphone. where -- campaign anna: if i could ask about the competitive environment in the united states. we heard that there are forecast that the next order missed estimates. that's in shares down lower. eric: we see dynamic markets in lapses. when it comes to business. we said since august of last most of the competitors on

that market saw the same thing. manus: always great to get your opinion on how you see the world. thank you very much for joining us here today. anna: coming up, we'll be in beijing, and a draft of newly read the -- newly released chinese data. manus: and were live in barcelona as the countdown for catalonia enters its final hours. will the rest of the region declare independence? this is bloomberg. ♪

anna: this is "bloomberg daybreak: europe." 1:18 in the afternoon in singapore. let's talk about earnings we've had coming out of switzerland,

numbers from the world's largest food company and that is a horse, nestlé. nine-month organic sales growth of 216%. ahead of estimate of 2.5%. that's with additional restructuring expenses and guided from where they see pricing in the giving us or detailed sales numbers is well. his the company that been under , suggesting the competition has been allowing to the environment resulting from changing consumer habits. a relatively new ceo mark snyder, an update from the company, for your trading ,perating margin narrowed excluding foreign-exchange, so we will keep an idea on nestlé -- keep an eye on nestlé. let's talk about china.

economic expansion continues, momentum for the third quarter feels robust for iphone and were spending. estimates in aed bloomberg survey. retails health and production jumped in september. let's go to beijing where our correspondent is standing by for us. economic data released earlier today i'm any surprises in their? there?surprises in >> surprisingly resilient is what they've said brown -- set about this growth. are acting for the full year earnings to economists we've been speaking to its growth of weeks .7%, which would be in line with what we got in 2016.

for the a bad backdrop party congress that continues here in they doing -- in beijing. it points to resilience in terms of demand picture abroad. remainingmer spending come we saw fix asset investment and industrial production coming in about all caps. it follows that speech by president xi yesterday talking about higher quality development. the question going forward is how much stomach to the chinese authorities have or a lower wrote the environment if the going to aggressively tackled the debt and put kurds in place on things like pollution -- like the debt picture. still very much a question in play. wants to's whether xi

step back from him of those commitment made by his medicine. is there any indication the central bank might take further steps to liberalize the yuan? eric: what the pboc governor said at that meeting was essentially he was dialing back expectations. he given this interview a week ago where he suggested he didn't want to see some of the capital controls fall back as well. this was a much more conservative speech talking about the trading ben, saying it's not a concern it moment. current move the but it's not a priority at the moment. ,t points to leverage question pointing out that household debt was rising. we heard on the banking regulator think they will ramp

up supervision of the banking sector and take more controlled approach for the property sector. anna: tom mackenzie there with the latest. good morning to you, stephen. a perfect place for us to start, expectation around liberalization of chinese currency. a couple of weeks ago, it seemed to be moving the dollar on the day. suggestedere given more liberalization of the currency, but now dialing back on that. >> i think the move we saw in september or on over was largely china falling into place with agreements from the g20 that sought to move the appreciation of the dollar down. down,igher, it settled but over the course of the last

few weeks it probably temporary does not reflect the long-term or medium-term fundamental trend which is lower. manus: so the foreign-exchange numbers rise for the first time in two years. what does that indicate in terms of the proclivity support the yuan? is that over reading one months data? >> they definitely intervened it september. that's with the agreements that the dollar weakness was going to little to our, too fast. in fx look at evaluation and bond markets, ipo -- hypothetical portfolio, if anything this year, they're probably lagging, so we've seen most em central banks and building reserves as the dollar has weakened as commodity prices have firms. china is probably lacking.

they're not indicating a preference for significant renminbi weakness. or and be was not being singled out over a speculation of a slowdown in china. overall't fit with the medium-term trajectory of reform and shipped to a different model of growth. liberalize is probably a little too generous, but they want the yuan to be -- >> they want two-way flow within the range. only majore of the central banks settings x the rules of the impossible trinity. if you want a stable exchange rate, you have to win with the flow capital.

it's as simple as that. our experience with liberalization and free broadcast over the next decade, it probably lapsed a little bit because we haven't managed to do it. we've had mold a natural crises and so. anna: extraneous -- exchange rate will push on. what does reform look like if it doesn't me more flexibility? -- doesn't mean more flexibility? faster china's growth rate in the short run, the more likely the quality will deteriorate. reform aims to improve the quality of growth. overstated,sed and but the reforms will be aimed at holding up middle-class. manus: we have a lot more to get

through with stephen, are market strategist for the day. will they declare independence for catalonia, and how will spain react? this is bloomberg. ♪

manus: nice shot of tokyo, 2:30 in the afternoon. dollar-yen seeing a little bit of movement. a couple of breaking pieces of news for you. in the advertising world, how does this look? anna: second-quarter revenue falling 2.6%. the company seeing improvement in the second half. the ceo amy for higher growth and margin three years, apparently. to $129 china as it billion that were estimated do they see better second half growth than the first half.

hurt the advertising sector in the second order, results showing weaker industry trends. concerns,investor except change a little bit from the second order. nothing i have the storm that we were in according to be forward-looking trend. manus: world's largest producer of may 2 order micro chip with $89 billion, of the on the estimate of 87.7 taiwanese dollars. the net income, the offering of it comes in at 98 $1 billion. the margin slips ever so slightly, 49.9% in terms of capital indenture. android sales have an flattening in the third and these guys at

taiwan and the conductor have been spending $20 billion in the , it comes-of-the-art down to demand for the iphone. all, i'll walk you through a couple of things, waiting on announcement out of new zealand on coalition new government that's going to be formed. did new zealand dollar very much under pressure at the moment. we've seen that for developing overnight so keep an eye out what developing their. i want to buy the lens a little bit and take it out to g20 and so you what's happening -- show you what's happening. yields are rising. there was an announcement earlier on about korea and indications are that at least one member of the committee there for a rate -- voted for rate hike in that cause the market a little bit by surprise. moves in the south

korean bond market across the curve. let's talk about was happening on the gms. will wait for the announcement may run out at spain. indicating a fairly that open your in europe at the moment it keep an eye on this line you're a little later on events of the news coming out later on. i want to take you to the euro-dollar decade contract which is effectively where u.s. rates are going. you have 100 minus the number where we are now. that's where the applied rate is going forward. whether tatars going to be the new chair, you see the spike in good pricing in the possibility that he will come in and take a little bit of insurance on this contract here. manus: let's turn our attention

forpain where the contest catalonia is entering its final hours. the central government could take control of the region. maria, good to see you this morning. butre in the final hours you've been here on a number of occasions before. what are these final options at this stage? >> good morning, manus. it may not be a good omen as to what to expect today. the deadline to drop the claim for independent or have the dreaded essentially take control. the question is, what can he do? he could simply decide to ignore this to clarify his position.

both sides of, under major pressure and he could potentially declare those unilaterally. we do know that this is the final warning, all instruments are ready, and will have to eventually be triggered. anna: the article is pretty much a given now, certainly that's what has been suggested. run us through what happens over the next you hours. we have the fed line of yours away. what happens after that? exactly, the government is saying we could potentially think about suspending article 155. but if we don't get it, we will have to trigger it. it could be triggered today.

there isn't it you summit later in the afternoon. if not coming to do it tomorrow. the cabinet in spain always meet on friday. he needs a document with all the measures he is going to take, including person who will replace him. we expect a two day vote and debate. it could also take longer. we could see article 155 being triggered today or tomorrow but not being enacted until later next week. manus: thank you very much, maria, the count down to the final moment in catalonia there. great that you listen into that because there's a lovely piece saying separatism isn't the

answer. crushed thenot rebellion, but remain -- bring the remaining parts of spain together. how cataclysmic but the be?ggering of article 155 th >> spain is an example of another instance of lyrical tensions bubbling underneath the service. you have a number of different political forces, shifts we are seeing in politics at the national level at a number of different member states. it's another instance that political forces and tensions bubbling beneath the surface. u.s. and u.k.hat get assistance have allowed experimentation with alternative little outcomes. trump, brexit, those may not be easy outcomes to go through, but

it allows that to happen. that e.u. seems to be heading toward a stance that is more rigid and it's not allowing for those stored moments to come out. it's an issue in the long run. it's climbing a wall of worry. some of these moments of anti-eu are based on an stance. where does this leave european assets and eurozone assets ever having these challenges? it's catalonia for the moment, but it could indeed be elsewhere. this all the time, it seems to be a mainstream narrative. the eurozone is normalizing.

actually, if conditions were qemal, there would be no ecb and financial risk would be our larger. that's a normal direction for the eurozone. persist because of the ecb presence in these markets. i don't think were looking at the type of reverberations we've seen in the past four for the foreseeable future. 2018-20 that transition is a different story. manus: you say that wrote this slow this year and two. that is slightly contrary. >> growth will be moderate this year. next but this is not normal, this is abnormal. >> financially the economic architecture is unfinished. normal would be this situation in spain getting reflected in

credit spreads. it has not enough to derail the euro. where are you trading at the moment? >> anything above 960 is a good value for selling stock. the currency is cheap, very cheap on a number of different metrics. itthe ecb normalizes policy continues that process, when the best way to plate is five telling euros. . manus: the interest rate , noncommercial futures position it spread, that u.s. european spread continue to widen, is that your best case

scenario? debate, there's a lot of is going to be the next fed chair if there is a new fed chair. the red rate hikes come it doesn't matter in the grand of angst. what matters for the currency market is when they will move to pricing that first piece of the cycle. we don't see that until very late in 2018. that will be the catalyst for further euro-dollar strength. anna: the london stock exchange group has hit on criticism that listing rules were bent to pave 'se way for saudi arabia potential ipo. manus: i guess spoke lucidly to

nejra cehic -- lucidly to nejra cehic. >> i read some of the comments, there's not a 25% governments ofe that mandate the mention 20% liquidity. there is a liquidity test that in the past, there have been instances of companies that were extremely large at obviously would provide stand to liquidity that were allowed to list on the preemie market with less than 25%. it happens in the united states all the time as well. , --s not confuse government governance, and a liquidity test, which is less than 25% of the economic arctic, but there is nothing ready to ensure smooth trading with the

underlying security. reaction that their continuing shelving the international art of the ipo? does this have anything to do with-- >> again, i cannot comment. based do you think it's becoming let's -- less a traffic -- less attractive with brexit looming? >> the number of ipos, the funds international companies, when you have 100 to nominated bonds. we raised over 40 billion pounds capital year to date. if you look at any of the , the same applies to partners and colleagues.

the amount is on the increase and quite sharply. , chinesestructure debt it's quite the opposite. numbers tell us that the activity is actually sustained. anna: that was the ceo from the london stock exchange. will get sales and revenue numbers at 7:00 a.m.. manus: tune in to bloomberg radio live on your mobile. david cole joins us to talk about the big things in the fx. a campaign against janet yellen serving a second term as fed chair. anna: later we will look back at

black monday, the worst single day for the stock market to drop in history. it happened more than 30 years ago today. this is bloomberg. ♪

anna: is is "bloomberg daybreak: europe." 1:48 in new york. a little bit of sluggishness at

the start of trade. here we are in the asian equity session is pretty flat. manus: and negotiations may not in in success. anna: also use on the outlook for oil prices. we were engaged, we've been are somebut there , they're looking for clean deals. it's difficult to know exactly how it's going to in-depth. manus: it's a stumbling block price. >> you are leading me on here, manus, you mustn't do that. [laughter]

think it's really more the overall terms and conditions. manus: you're saying with the kurdistan issue, we did see above $60. ?o they need to fix and >> -- do they need to expand? >> they probably would like to spend. that will be increasingly difficult for them because there's increasing pressure on production in many of these countries. seems to bee that moving into a northerly direction, they probably need to ask dan. -- probably need to expand. manus: what can you tell me about the physical draw? we understand there's been a lot of physical draw down on tankers. can you confirm that kind of drawdown?

stocks are a long way below where they were. the market has tightened up. in quitethe market was stand straight. ares: finally, the crackers pesky.kers are the ones probably biggest downside to the markets in terms of price, the fact that we still see huge amounts of incremental production raising in the state. removing a lot of oil from the u.s. all the way out to the worries, and i think that will have an impact. in the short-term, i tend to be a bit bearish. he along with everybody

else it's the price of a barrel of oil at four and five dollars. anybody watching inflation, watch those numbers. conservatives have down to the campaign to urge president trump not to read point janet yellen. they're expected to meet with the president later today. manus: warren davidson said he circulating a letter from against janetsign yellen's reappointment. this campaign, the conservatives are rallying their calls against janet yellen. they're shifting sands in who we think might make it to the top. john taylor seems to have made quite an impression.

were trying to define what influence the individual has over the group. cycle,e we are in the the fed rates are not going to matter too much of the dollar anymore. it's not a huge deal. if taylor were to get the appointment, the rate market and -- from what i've seen, they want us trade badly. year were priced a little over one, but less than the fed. the risk is that it kind of gets , it could mean 2% on the dollar in the near term. anna: we get someone who is considered to be white hawkish, we don't get anything more hawkish than what the fed is already paying. >> i think we think that taylor move slowly. any new chair going to be

invention very much five financial markets and investors. at the risk going to fast, taylor will probably be a relaxed fed chair in that regard. if you listen to his recent interviews, is more concerned about fed and parents see and also said why clearly that rule is not meant to tie the hands of the central bank unconditionally. the other issue, if you look at the funds rate, the taylor rule in the fed are not far from each other. the taylor rule just says we should be there already, effectively. it's not about the final destination. i'm surprised you say for rate hikes from the united date would not appear to change the direction of the dollar. >> we are likely to get three

this year. the dollar fell this year. fed communicating roughly 34 next year. for next year.e up.odity prices are firming the market presumably is just jumping on a bandwagon. presuming there might be a more aggressive taylor. this is perhaps the party way to look at the market. where do you want to buy against the dollar if that is your base case scenario? >> think the dollar will lose 3%-5% of its value over the next 12 months. what i think you need to do now is petition for the risk of a

rally in the dollar. is it likely someone who's a bit more hawkish would do? that janet yellen is not going to get the nomination. given the constraints that red hat on financial conditions and so on. anna: thank you very much for joining us. manus: always a good spirited conversation there. here's what we will be watching. anna: industry slump in the second order. we'll keep an eye on that and also nestlé. some of the numbers did the estimates. manus: s.a.p. raising their sales or cast for 2017.

futures indicated a little bit lower in london. ♪ who knew that phones would start doing everything?

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resident xi a platform to deliver. anna: the clock ticks for catalonia. the region has two hours -- regent has to hours to renounce his claim. >> there is a 25% governance ale that -- there is liquidity test. anna: the campaign mounts against yellen. house representatives urge president trump not to reappoint

the fed chair. the two are expected to meet today. manus: welcome to bloomberg daybreak europe, our flagship morning show. i am manus cranny. anna: i am anna edwards. a little bit earlier we mentioned labor has won the support of the party to form a new zealand government. we are hearing from the leader saying that he may be deputy prime minister if he chooses to take the role and also giving some comments on capitalism, capitalism must get back its human face is the one of -- one of the lines coming through. manus: the new zealand dollar is taking a kicking to quote the mliv team.

over 1.4%. aboutis is about concern what happens next. they expect change to -- to change the reserve banking. this could either controversial in the newnitiatives zealand party on this changing political landscape. silly not the political hubris that has upended markets. >> lets to talk about and lots to talk about about in the new zealand party on this changing political landscape. the london stock exchange. business- leaving the by the end of 2018. the board is initiating to find a successor that sees succession planning. this is the gift third-quarter numbers, but by -- i-17 percent. comments about market volatility. withight in a conversation

-- talking exclusively to bloomberg and firing at critics around the ipo for aramco. that is the talk of london in on aramco.s comments we should rerun the comment. there has been criticism from some of the investment community . whether that will be enough free flow in a potential aramco listing in london to qualify for premium listing at the london stock exchange. >> there are some who say there is a 25% liquidity role as far as -- as part of inclusion in the premium market. i have read some of the comments. there is a 25% governance role a minimum of 25% liquidity. there is a liquidity test.

manus: making it clear that no rules were bent and he is set to go at the end of 2018. these are the products that they deliver, the underlying sales for unilever coming in at 2.6%. the market had an estimate of 2.2%. the landscape is dominated. they are cutting costs and the m2 cover more than a billion. headre reviewing the dual structure of the business in terms of the underlying sales. 2% of 5%. they are trying to reassure the markets even know they missed on the underlying number. the revenue is going to be a little bit in the pipeline.

pricing, they are raising prices, 2.4% is what they have managed to eke out. this is the theme that is coming u.k..h in the raising prices, 2.4%. the estimate was for 2% of a price hike. volumeerhaps sacrificing as the volume is up 0.2%. that is where the disappointment side from is in the volume of things. should we move to the futures? lots of earnings to factor as we mentioned. after we had record record for the u.s. stock markets and we're taking a positive breath in some of the european equity markets. london flat down a couple of tips. u.s. features taking a little bit of a knock. let's look at the risk radar. the asian equity market still roaring ahead and some of

those markets of 1/8 of 1%. >> up for percent month today. the china's -- chinese data not lighting a fire under the asian equity session. markets,of the u.s. the biggest increase in five weeks and another record on the s&p. that,eaker on the back of changing the political landscape and the formation of a labor lead market. bund marketave the and the oat's. not having any great market impact in terms of rushing into any kind of payment. 162 .14.

let's get your first word news. >> the u.k. has reportedly asked financial enforcement agencies to prove ties between hsbc and standard chartered to south africa's gupta family. the chancellor said he passed on concerns from peter hain that the bank may have handled illicit funds linked to the family by hong kong and divide. the group have denied any wrongdoing. catalonia's separatist leader has until 9:00 a.m. et time to clarify his position of independence or face dismissal and the prospect of the region being governed from madrid. insists he has amended for succession but has not made an all right declaration. spanish authorities have

threatened to invoke article 155 and take control of the region. in the u.s. house conservatives are urging president trump not to reappoint janet yellen who is expected to meet with him later today. representative foreign davidson a letter to sign against her reappointment. he says janet yellen would not be a great successor to janet yellen. oil has traded near the highest close in three weeks as exports from northern iraq l by more than half amid fighting between government troops and kurdish forces. give us his outlook for the market. >> i think in the short-term there is some kind of event, you some otherolitics or disruptive event. i think that the market feels comfortable to trade in this range that it is right now.

we played you the incorrect video clip of the ceo talking about the outlook for oil. we would like to apologize for that. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more on the terminal at top . anna: thank you. let's check in on the market action in asia. >> it was quite a busy session and asia that the key we saw the limelight late into the day getting battered at the opposition labor party. he restocks closed at a record high and take a look at what is going on with the nikkei 225 rushing for the 13th day. that is the best winning streak since 1988. kospi revealing i hawkish

till. -- tilt. chinese stocks are falling. taiwanese stocks managed to close higher despite the pressure. tsmc climbing to a fresh record after third-quarter earnings beat kobe steel. product madeobe's it standard and data from honda and masa. surging, aerospace is the company avoided delisting. the -- that is a market snapshot. manus: thank you. let's turn to china. we have the economic numbers, and gdp increased six when he

percent. anna: retail sales and industrial production jumped in september. that data comes on day two of the country twice a decade communist party congress. let's cross to tiananmen square. great to see you. we have this data, it is robust, we are chugging along and were there any surprises in the backdrop? i think what it does is reformed the idea, the view that had that youts would see a slowdown in china. jp following on from the 6.9% that we got in the second

quarter and the data points whether that is the producer prices or pmi, four points is resilient growth and this number solidifies the idea. what we are expecting for the full year according to economists surveyed isjp gdp of 6.7% which is above the government's target of around 6.5%. the credit expansion continues and that is one caveat to this infrastructure spending but also the consumer picking up. the retail sales number coming in, double digits and industrial numbers coming in. it is a resilient picture that is being built that. haveses the question you , expected to, if this congress more powerful than he was leaning into it. there is a resilient economic backdrop. doesn't mean he will have the courage to knuckle down on dealing with questions of debt, questions of overcapacity, questions of putting curves in place along -- around pollution. there are questions as to how

much stomach he's got and the government has got to push down the growth embers number -- in order to tackle the issues that affect china. upside is kind of therefore reform? your right to allude, it he is making a more conservative pitch for the session then we attended in the great hall when he said reform of the yuan is a long process. he was asked about the trading van and whether there were any plans to adjust that. he said no, it is not in focus, it is not too important. he is not seeing any major moves leade market that would them to change that.

we also heard from him in terms of the corporate leveraging. the corporate's are two highly leveraged and he said household debt is increasing. regulators will pay close attention to the banking sector, later supervision in the next few years and saying that loans to the real estate sector would come under the spotlight. real estate the cleat -- the clear theme when he said properties should be lifted and not used to speculate. , out andeat to see you about in china. that is tom mackenzie on the ground. thanks for coming in. looking at the data, the data is solid. six point 8% as more than chugging. china is strong and this is a very strong political that that has been handed. >> the party congress is going to lead to an overarching

direction. going to bes is continued on the short-term stability that enables them to enact longer-term reforms. anna: how do you play china, do you get direct expects are -- exposure to a growing middle class buying into chinese equities or do you say we are buying through the european corporate's that have exposure to china. what is the best way to play china? caroline: there are a few ways you can do it. we have a cyclical tilt so we are overweight consumer discretionary. you can take the longer-term view on it and play some of the more demographics but they should be there underpinning things for years to come. ganus: we broke the danun numbers and they are focused on the demographics.

nether vicarious trade is through the commodities and this is what we put together, shanghai composite shares. i do not know if you call it the renaissance but this is a correlation. is the november commodity index. is that another road to take with china? areline: commodities integral to the growth in china but what we have been seeing is this rebalancing that has been occurring and we expect to continue. withweak around the edges some of the restrictions they have put on the chinese steel producers has meant that they are focused on importing iron ore rather than domestic iron ore. there are little tweaks that occur around the edges but ultimately china is still growing very quickly albeit slower trajectory. for gdp to slow to 6.4 because of the operating

leverage in the equity market that could continue to do well. anna: are you concerned about the way that china might seek to doubles in the chinese economy whether that is around debt or move on the currency with widening trading bands, are you concerned any of that would affect the equity markets? caroline: the tried the direct intervention and they will not be going back there again because it did not go so well. with widening trading bands, are you concerned any of that would there are focused measures that they tried from time to time in the areas where they feel things are getting overheated area that will continue but ultimately, part of a move to a more liberal market, there will need to be some events that occur in order in the freelyst operating markets. manus: thank you. let's check on the markets. anna: what are we expecting for

the start of the trading day? the equity session was flat and got a boost but not by much, 1/8 of 1%. some interesting we spoke with him earlier, he hit back at the criticism. n[inaudible]n -- that mandates a minimum. there is a liquidity test and in the past there has been instances of companies which were extremely large that would provide very substantial liquidity that were allowed to list on the premium market. with less than 25%. this happens in the u.s. all the time as well. let's not confuse governance in

the case of the 25% test and 25% threshold and liquidity test which is ensuring that there is smith liquidity to ensure trading of the underlying security. >> what is your reaction to recent press reports that saudi aramco is considering shelving the international part of the ipo, is this to do with london becoming less attractive? our business is up substantially, the number of raise, also international companies, we have 100 bonds and we raised over if you -- 40 billion pounds of capital year to date. if you look at any of these , the same applies to our partners and colleagues.

liquidity of debt and and the range of ipos is on the increase, in fact quite surely be -- quite sharply. outgoing london stock a change -- stock exchange ceo. nestle has reported the sales growthmonth since it began reporting the figure in 1999 and forecast stimulus growth for the full year. the world's biggest food company said revenue climbed 2.6% on an organic bases beating analysts forecasts. the company expects additional restructuring costs to 500 million francs this year. the operating margin will decline to 60 basis points. roush's third quarter

[inaudible] continue to offset slowing growth for its own drugs. revenue rose to $13.4 billion meeting -- eating analyst estimates. they reiterated its forecast for the year saying that sales and core earnings which excludes some cost will grow by mid to single digits at a constant exchange rate. sap has raised its sale forecast customerss more signed up for the companies flagship software. of company expects revenue between 23.4 billion euros and 23.8 billion euros. up 100 million euros from its previous forecast. they also said sales for the third quarter -- quarter rose 4% missing analyst estimates. jpmorgan executive has been

picked to run the securities and thatnge commission unit regulates u.s. stock markets and wall street brokerages. at head of market structure the new york-based bank will oversee the sec's trading and markets division. the group deals with some of the dressing matters facing the agency including the construction of a massive trade database to help regulators police the stock market as well as rising rules -- writing rails for exchanges and dark bulls. 's ceo isexpress stepping down. he will be replaced in february vice-chairman at the company and has been at amex for three decades. he helped lead the firm's through the fallout of the september 11 terrorist attacks and the 2008 financial crisis. that is your bloomberg business flash. anna: thank you.

question, whoine remembers this day in 1987? the biggest single day market collapse in history. it redefined the financial landscape. manus: we're all still here 30 years on and we have a roaring bull market with comparable conditions create or do we? make the same mistakes? of course this lends itself to history and a beautiful chart. trump onst one-day record, if it was to happen again today it would be the equivalent of 5000 points off the dow. have investors such as ubs learned lessons from 1987? guest: there's nothing like an

anniversary of a major event remind people of the risk there is in the market and a lot of people rightly so are becoming quite aware of how far we have come in the equity markets where the valuations ree and what the next risks out there are. the backdrop is pretty strong, global growth is accelerating, and we feel confident that is feeding into the earnings picture and it will continue to drive markets higher over the next six to 12 months. we are not going to see the same performance we have seen in the recent years. some of the conditions that are liquidity isay, different, the market is bigger, it is difficult to draw a comparison with something that was so long ago when construction of the indices have changed and the way we trade has changed. we have program trading at that

point so people draw that parallel. we keep hitting the all-time highs on the essence -- s&p 500. we are on this key anniversary. are you neutral along this decent picture for earnings, you are neutral on u.s. equities. guest: yes. we keep reaching new highs but we are reaching new highs on earnings. as you're getting earnings growth it justifies the price increase. we have seen a re-rating of the market as well and that is what people who have concerns about the market are focused on, that ibm valuation. backdrop,k at the this is the ea function on the unilever pushing up prices but still not hitting the numbers at the market wants. in terms of earnings report card, are you expecting an at in

europe relative to the u.s. or will it all -- or will all tides rise? guest: the strong back drop will support earnings globally. eurozone will outperform the u.s. a little bit in the q3 numbers. partly because the eurozone has its domestic economic recovery underway. but because the u.s. will be seeing some impact from the storms and the hurricanes on their q3 earnings, it will drag the growth rate down but we expect it to rebound in q4. us,: thank you for joining caroline simmons. from theat is it daybreak europe team, the market open is next. we give you a glimpse on barcelona. cutoff time inhe terms of the decision they need to make to earn independence. anna: what will the response be

from madrid? what to set your clocks for. this is bloomberg. ♪ is this a phone?

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this is the european open, first trade of the cash session coming up shortly. i am guy johnson in london alongside matt miller in berlin. what are we watching? 90 minutes until catalonia must cenfirm its independen decision. we will get the views on the future of the exchange and the saudi aramco ipo.