>> it is my particular delight that i am able to welcome donald and melania trump to japan. visit in theric north korea situation which is ever more tense. visit.he first nation to this made this historic significance even greater. this way, two of us were able to show to the rest of the world the unshakable japan u.s. alliance. thank you, donald. for the last two days, i was able to have an in-depth discussion with donald on a plethora of issues that the international community is concerned with.

agreement asmplete to the measures to be taken upon analysis of the latest situation in north korea, given a good amount of time. consistently supports the position of president trump when he says that all options are on the table. through the talks over two days, i reaffirm that japan and the u.s. are 100% together. for more than 20 something the international community attempted dialogue with north korea. at the time of the agreement of 1994 and the agreement of 2006, north korea committed in abandoning their nuclear program. each time, the promise was broken. in korea buying time for their nuclear and

missile development while we were making efforts for dialogue. there was no point in the dialogue for the sake of dialogue with north korea. now is the time not for dialogue, but applying a maximum level of pressure on north korea. we completely agreed that to make north korea change their musty, japan and the u.s. take leadership in closely collaborating with the international community so we can enhance the pressure to the maximum level through all possible means. i agree with president trump that we welcome china strengthening pressure over north korea and it is incumbent on china to play an even greater role to let north korea relinquished their nuclear and missile developments. again themed once

importance of trilateral theeration amongst japan, u.s., and the republic of korea. before this press conference, president and mrs. trump were good enough to meet with the theers of abductees that familymembers of -- the members of abductees. i thank them for listening so intently. until the days that all families of of deked these embrace their loved ones, that day comes, and till then my mission is not complete. i have renewed my resolve to work in full force to seek the resolution of this issue. i have decided to take our own

additional sanction measures in order to seek the solution of a and objection issues. tomorrow there will be a assets ofn freezing 35 north korea entities and individuals. japan and the u.s. will continue to cooperate closely. discussed bilateral economic issues with president trump. we welcome that in the second held last month between deputy prime minister and vice the importance, of strengthening bilateral economic trade and investment relations was confirmed. deeper into our dialogue. we agreed that we will continue our discussion in order to invigorate more the bilateral

trade investment in areas of law enforcement and energy and infrastructure, among others. japan and the u.s. are the two , havingconomic leaders 30% of the world economy. the significance of the alliance is not limited on security front alone. economic field, it greatly contributes to the prosperity of the region and the world. i, together with president trump, shall work not only in the field of bilateral trade but also lead in the high standard rulemaking in trade and investment broadly. i am determined to see to it so bothboth the japan -- japan and the u.s. lead the region and the global economic bywth by arqule into efforts

creating fair and effective economic order. the east asian summit meetings that we will be going to after this. vastvers the vast rate -- area of asia. the center of the world with more than half of the world's population. we must enhance the maritime border that is free and open for the peace and prosperity of this region. strengthen our cooperation towards free and open indo pacific. alliance, iwavering shall play a leadership role for the peace and prosperity of this region had in hand with president trump. i had very serious discussions with president trump. i also had an opportunity to --y golf with our top row,

tsuyama.eki ma the match was a net and neck competition in my opinion. give his. trump will evaluation. the dinner that mrs. trump joined was such a relaxed didn'tere that we almost realize how time flew. thank you very much. president trump, the floor is yours. president trump: this has been a truly enjoyable trip and one where we are, pushing a lot. i agree with you that our relationship is extraordinary

and i agree with you also that there has never been such a close relationship between the leaders of two countries. these two countries, japan and the united states. we will spend a lot of time with you over the years. -- milan he and melania and i-- are greatly welcome in your land of incredible history, culture, tradition, and spirit. let me congratulate you on your great success in the recent elections. easily very big and very . i'm not at all surprised. share in common a deep loyalty to our citizens and a deep faith in the destiny of our and of our people and countries working together.

i also want to take a moment to continue sending our thoughts, prayers, and deepest condolences to the victims of a horrific assault on a church, a beautiful sad, sutherland springs, texas. wonderful areal, with incredible people. who would ever think anything like this could happen? i want to send my condolences, the condolences of our first lady. in tragic times, americans always pull together. we are always strongest when we are unified. victims,milies of the all of the americans are praying for you, supporting you, and greedy with you alongside. i want to thank you and the people of japan for your friendship. we have so many great things we

can accomplish together. are in the process of a college in those things. it was a thrill for my daughter ivanka to be able to participate in the world assembly for women and promote women entrepreneurship side-by-side. the two nations are enhancing policies to empower women and harness the great potential of our great economies. you were the first leader to visit me after my election, and now it is my pleasure to join you in your homeland to further strengthen the historic ties between our two great nations. this is my first visit to the indo pacific region as president. asave been here before, but president this has been my first and it is my first. i am thrilled that my first stop was with you, a great friend.

we are going to other countries where i have also developed some great friendships. we are going to work to straighten a lot of things out. this includes military problems. we have a lot of things to work on. this is a real honor to be with you. japan is a very special place. the japanese people are thriving. your cities are vibrance. you have built one of the world's most powerful economies. i don't know if it's as good as ours, i think not. ok? we are going to try to keep it that way. but you will be second. for all of its modern splendor, the people of japan maintain a of a richespect culture, heritage, and traditions. honoring the past even as you blaze new trails into the future.

very strongly looking into the future is japan. we demonstrate every day that respect for history and heritage true foundation for progress. our nation's share in enduring bond. america and japan face many challenges. ,here are many things we face but we will be facing them together, in friendship and as allies. we are working to counter the dangers aggressions of the regime in north korea. the regime continued development of unlawful weapons programs including its illegal nuclear tests and outrageous launches of ballistic missiles directly over japanese territory. threat to the civilized world and international peace and stability.

we will not stand for that. the era of strategic patience is over. some people said that my , butric is very strong look has what has happened with very weak rhetoric over the last 25 years. look where we are right now. minister abe has also shared meeting tragic stories of japanese young people that north korea has inducted over the years. together, we met with the yakota, who was inducted in 1977. no child should be subjected to such cruelty. no parent should ever have to endure 40 years of heartbreak. young, wonderful

man in our country. we all know the story of otto. it's a horrible story, a sad story, and we can't let that happen. do not let that happen. the united states of america stands in solidarity with the people of japan against the north korean minutes. history has proven over and over that strong and free nations will always prevail over tyrants who oppress their people. a powerful and enduring u.s. japan alliance includes more than 50,000 members of the u.s. initary stationed right here japan. in addition to that, we have 33,000 stationed in south korea. american and japanese military personnel trained together, work

together, and will stand together to defend the security and sovereignty of both of our countries. i want to thank the entire japanese people for acting as such gracious hosts and strong partners for men and women in the armed forces. is also committed to improving our economic relationship with japan. as president of the united states, i am committed to achieving a fair, free, and reciprocal creating relationship. we see equal and reliable access exportsican excess -- to japan's markets in order to eliminate our chronic trade imbalances and deficits to japan. it's something we have all been working on very hard. pursue closer to economic ties, i believe it will create new and exciting opportunities to achieve greater prosperity and both of our

nations and to advance new frontiers in science, medicine, and technology. the united states respects and honors japan's heritage and admires your deep well of perseverance. i appreciate very much your acknowledging and stating the statesat the united economy has done so well since our election in november. close to 2 million jobs, the highest stock market in our history, so many different things are happening for the better, including the cutting of massive amounts of regulation which is one of the reasons the market is reacting the way it is reacting. this mutual respect for culture and sovereignty will continue to bring our nations closer and closer together. it will open up new avenues of

cooperation and success. mr. prime minister, thank you again for inviting me today and for opening the arms of your majestic country. the american delegation, all of whom are right here in this -- tolook forward to's working side-by-side with you in friendship. we will have success rarely seen between two countries. japan and the united states of america, two very special places. thank you for having us. thank you very much. >> thank you very much, mr. president. now we will accept questions from the press. if you wish to speak, please raise your hand and be another.d by me or by these come to be standing

microphone and identify yourself. first, japanese press. i will ask for a question from the japanese press which be -- will be followed by the u.s. of accompanying press. for nashsk questions fromtwo -- ask questions two people specifically. anyone to speak up? from nhk. this is for mr. abe. prime minister, you and mr. trump have agreed on the pressure on north korea. going to korea and china and then there will be a meeting for mr. abe.

what is your idea about the significance of this meeting? other hand, north korea is still fixing its attitude. theresponding to relinquishing of nuclear development. what is necessary in order to avoid any accidental military confrontation? the japan u.s. alliance is the foundation of regional peace and prosperity. with the u.s. partner strong, the peace of this region becomes unshakable. i consider at this time we were able to reaffirm strong bonds and ties between the united states on this opportunity of the visit of president trump. this is quite significant for the regional peace. on the north korean situation between president trump and myself, we confirm that we are together 100%. pressurenhance the

that the entire community exercises over north korea to the maximum extent by both the united states and japan collaborating and working toward china and russia. no one likes conflict. i don't like it. trump neither. but north korea continues its many so we against need to collaborate so they change their policy. we must exercise our pressure korea, we will change our policy, so please come talk to us. this is the most important thing to reflect. we have complete agreement with president trump. together with many countries, i'm sure we share the same thinking. also, the free and open maritime order based upon the rule of law

is a foundation of the international community. on his first leg of his tour in asia, president and i were able to reaffirm that both countries will look towards the indo pacific. meetingll be a leaders and a summit meeting. in these meetings, i'd like to take leadership in driving this kind of discussion. free and open indo pacific strategy, in country would agree with this strategy with whatever withry we can collaborate for the implementation of the strategy. we will continue to have a partnership between japan and the united states so we can continue jointly to the peace and stability of the region. united states first question

will go to steve holland from reuters. pardon me, thank you sir. in response to the texas shooting what policies would you support to reduce these violent actions. is gun control the answer? secondly, you spoke about the warmth of the north korean. the korean people. what is your message for them? also what about free trade? >> as far as the north korean they aree concerned, regime. oppressive i think i can tell you this. i hope it all works out. it will be better for everybody. it would be better for north korea but it would be better for

everybody. we hope that going to take place. , ther as your question first part of your question, i think that mental health is the problem here. preliminary reports, a very deranged individual. a lot of problems over a long. of time. we have a lot of mental problems in our country as well as to other countries. a situation with guns, it's a little soon to go into it. fortunately another person with a gun was shooting in the opposite direction. then it would not have been as bad as it was. -- then it would be not as bad as it was. this is a very sad event. thank you. president trump, trade and

economic matters are bilateral issues. we did discuss. on the economic matter, how the u.s. and japanese economy should be. there is dialogue going on both countries. there were two meetings already. on the question of the economy regarding president trump and bilateral trade, we would like to see the entire region have high standards rulemaking. it's something we want to pursue. we will make efforts to create an economic order that is fair and effective. regarding both economies, we would like to see the mutual development of both economies. states, already

since the start of trump's administration, partly thanks to the japanese investment, 17,000 jobs have been created in the united states. , theyuntries of the world make the investment, but the japanese investment ranks in terms of job creation. the economic relations between the two countries may develop further, thereby developing jobs, thereby growing the economy. increasing both economies, opens economic dialogue framework. it would be quite relevant. we will go back to the japanese press for question. >> i have a question to president trump. family mongerse

-- members of abductees and an actual abductee. how can you comment on your meeting with them? is every possibility of u.s. military action? how do you think about the object is being rescued once the military action is imminent? >> i think it is very sad. abducted by hostile country. for purposes of language, for purposes it could be any number of other regions -- reasons. inwill see what happens terms of the open conclusion. i didn't put it in my speech at the united nations. many people in japan were thrilled that i did. that were talking

about were forgotten about. the forgotten people where they were. maybe they were forgotten people . but the greek prime minister did not forget at all. perhaps the regime itself with send them back. john one -- kim jong-un would send them back, that would be the start of something special. if they would do that. i spoke with people who were devastated, and they have been devastated for many years. they think they are alive but they do not know. probably makes it even tougher that way. we will see what happens. you.ank the second question for the united states, mark landlord, new york times.

>> thank you very much. my first question is to president trump. mr. president, you have spent the last two days reaffirming the u.s. japan alliance and have begun sketching out this vision of a free and open into specific. in today's you will travel to china, a country that is neither free nor open. my question is, how can the u.s. be a force for freedom and openness in this region without inevitably coming into conflict with china? to the prime minister, mr. prime minister, the president has spoken on many occasions in the past about hoping to see the japanese take a strong role in their own defense. he would like to sell a japan military equipment. there were press reports that the japanese didn't shoot the north korean missile out of the sky. did this subject,?

-- did this subject come up? i will say, if i primeke a piece of the minister's answer, he was shooting on the sky when he buys military equipment from the united states. he will easily shoot it out of the sky, just as we shot something out of the sky and saudi arabia, you saw. that was a rapidly moving objects, that was a needle in the sky, and it was hit immediately and exploded without damage. of the things that is very important that the prime minister of japan is going to be purchasing massive amounts of military equipment, as he should. we make the best military equipment by far. purchasing it from the united states, whether it is the f-35 fighter, which is the greatest in the world, total stealth, or

whether it is missiles of many a lot of kinds, it's jobs for us and a lot of safety for japan and other countries that are likewise purchasing a lot of military equipment from us that frankly a year ago and two years ago were not. as far as china is concerned, my relationship with president xi is excellent. i like him a lot, i consider him a friend, he considers me a friend. he revisits china, i represent the united states. his views are different but they are pretty similar on trade. the probably have with china is ,hat for decades they have been it's been a very unfair, let me be kind to previous ministrations, it's been a very unfair trade situation. our trade deficit is massive. it's hundreds of millions of dollars a year.

to 500e from 350 billion billion. that doesn't include intellectual property. we have started discussions with china because it has to come down. that has to do with free trade, fair trade, more reciprocal trade. i like reciprocal the best. explain to someone they are going to charge tariffs in order to equalize when you are going to do other things, some people that do not get it, they don't like to hear that. boeing you hear -- say that it's going to be reciprocal, we will charge the same as they are charging us, the people that don't want a 5% or 10% tariff, a reciprocal sale, that could be 100%. it's much more understandable when you talk about reciprocal. reciprocal trade is very important to me. not just china. with japan are so many others.

there is one country that charges us 100% tax and we sell things into that country. and yet when they sell the same product into our country, we charge them nothing. i have been against that for a long time. you will be seeing, we do things about it. it takes a. of time to do that. of time to a period do that. you have to put out notices. you have to wait 90 days to put up the next. then you have to wait another 120 days. then 30 days. being caught up. some of it was unnecessary step to kerley. things changing with trading with the united states and the united states worker and company because i've your company does a company but as an extension of the worker. that have been treating our

companies, our country, and our workers very unfairly. you will be seeing that the united states will take very, very strong action. it has artie started the most of the legal foundation has been done and we are going to see a very big difference and it is going to happen very soon because the united states, by many countries, has been treated very, very unfairly when it comes to trade. they give a much. -- thank you very much. regardingster abe: japan, defense equipments, a lot of them we purchase from the united states. the north korean situation has become very tough. the asian pacific security situation has become very tough. we qualitatively and quantitatively -- quantitatively have to enhance our capability. 2a isocke

another plan to purchase from the united states. the quality and the quantity must be enhanced. in that process, we will be buying more from the united states. that is what i'm thinking. now, north korea. .orth korea launched missiles after that, we traced them. we were able to graph and trace where they were going. missile defense is something where it is based on cooperation between japan and the united states. his cooperation between the two intercepting and shooting down. if is is necessary, we will do that. necessary, but in doing so, the u.s. and japan will closely coordinate our actions. thank you.

with this, we will into the joint press conference by the two leaders of japan and the united states. thank you very much. that was u.s. president donald trump speaking in a news conference in tokyo with japan's prime minister shinzo abe. a lot about their friendship, their deep relationship, dear friends, unshakable ties. trump talking about the close relationship and enduring bond. not so much about economics, law on security. manus: early in the conversation, we saw trump talking about the maximum level of pressure. now is not the time for dialogue on north korea. some people criticize them for his rhetoric. in terms of it being too strong. he said week rhetoric didn't get them very far. anna: let's bring in stephen engle.

what were the key takeaways for you? you're absolutely right. the two gentlemen do not talk much more than what they have artie said about the economic relationship. donald trump, again reaffirmed he wants free, fair, and reciprocal trade. he wants to reduce that $69 billion trade deficit they have with japan in 2016. most of the comments from both gentlemen were on north korea, where they stand side-by-side in the face of immigrants coming from pyongyang. shinzo abe said they had in death conversations on a plethora of issues and are on complete agreement on the measures to take against north korea. in fact, shinzo abe mentioned they will take additional japanese sanctions against north , freezing assets of 35 north korea entities or individuals. a further step to try to paralyze the north korean

economy. the time for dialogue is over according to donald trump. era of strategic patience is over and that week rhetoric has not yielded any progress. donald trump says they stand in solidarity with japan. against north korea. manus: thank you very much. our guest has been listening to in the greenerence room. listening to the two of them, it sounds as if no great progress on trade, i think the phrase was free and open. indo pacific. a trifecta between south korea, japan, and the usa. a lot used bilateral relationships of global. your take? theost of my take is rhetoric is similar to the type of rhetoric we got me 1980's. that reagan era trade policies

with japan which encouraged massive expansion and demand from the japanese, trying to get that surplus down with the united states. it looked their economy. i'm sure that prime minister abe is going to be quite careful how he manages this process. he will buy bonds off the united states, but i'm not sure where his push on bilateral trade deals goes. it's about trump saying he's been treated unfairly. trump will continue his trip to south korea and china and says he will have more news on trade. that's what the conversation will go you know a lot of the news has been on geopolitics. we are waiting to find out what he wants to level it's the chinese. quite their friendship. lots of friendship but also

you already running big surpluses and we are running the deficits. maybe we are going to end up saying, you need to sign commercial deals with the countries -- companies that are traveling with me. not willing instead of nicely and say nice things. stay with us. there's a lot more to get through from kit. let's show you what's happening in the markets. the yen hitting its weakest since march. crucial for inflation to exceed 2%. it's a stark contrast between the boj and other central banks. some of the conversation around trade has been shaky.

we saw the u.s. market capping its longest run of weekly gain since 2013. trump says one of the reasons that markets are so effusive is the prospect of low regulation. you have nymex crude there as well. you have a push in saudi arabia. we will have more of that. some of the top officials ousted. we've also had a couple of corporate numbers come through. softbank came out with their numbers. that's the telecoms operator in japan trying to do deal between sprint and t-mobile. it be the highest estimates. beat the highest estimates. looking at the next three years is going to be tough. that's the message from the ceo. i'm talking about ma he wasi-san, the ceo,

at that meeting and talk to president trump. anna: we will be back with the ,audi arabia and story shortly with the softbank ceo saying that has no effect on his plans. ♪ in the u.s., 26 people have been killed after a gunman opened fire at a church after sunday's services. this is in solon springs. -- sutherland springs. 52 67se ratio change rob years old. the shooter was later found dead. u.s. secretary of commerce wilbur ross has to about his financial disclosures to the government.

that is after he did not disclose business ties to the son-in-law of vladimir putin. the story was part of a raft of articles published by news articles based on the so-called paradise papers, documents leaked from the bermuda long-term appleby. we will be joined by wilbur ross at 12:30 p.m. u.k. -- you take time. -- u.k. time. michael flynn is close to being charged by mike might just -- charged by miller. -- mueller. this is in relation to a possible plan to remove an opponent from the turkish president in exchange for millions of dollars. for former members of the government have been freed from bond in belgium.

puidgemont turned himself into those released yesterday. global news 24 hours a day. powered by more than 2700 journalists and analysts in over 120 countries. you can find more stories on the bloomberg at top . we begin at the league's best weakest level since may. the nikkei is pretty flat. the pboc governor signaled worries about leverage in that system. the asx 200 closing lower by about .1%. the cost to their assault by .33%. coffee -- the kopsi in soul down by .33%.

manus, anna? manus: thank you very much. saudi arabia's king solomon embarked in a sweeping crackdown over the weekend. arrested various princes including one of the world's richest men. the kingdom is still trying to come to terms with rapid changes shaking the kingdom. that theys a concern are shooting themselves in the and somewhat by creating stirring the waters uncertainty themselves. but i think he is really taking the long view and looking ahead want nobody to i have their hands and any cookie jars and make sure that i have for control and the buck stops with me. >> the scope of this purchase surprising. a number of princes arrested. the number of ministers that are implicated.

i think the message is that be at the kingdom holding or other ,articipants of private sector he will require loyalty. that's the message. in terms of the answer, in terms of the investments in saudi arabia proper. manus: it's about control. our reporter is in the kingdom. thereaction so far from populace, i think there is a #trending. #november4revolution. this seems to be popular so far. >> that's what it looks like. the scale and scope of these efforts, picking up some businessmen. these are household names. if you think of the famous businessmen in whatever country you are in, that's the kind of crackdown happening on the basis of corruption charges.

the market reaction has been so far relatively mute. this is expected, this is a centralization of power that is necessary to get the kind of reforms through that they are targeting. it's going to be a chart to look at. that's the best against the packet. back against -- the bet against the peg. this story is contained only market side. on the equity side with similar. it comes right down to a reform process and a clear message to the overall business community. -- he expects everyone to rally around him. the prince has significant holdings. from a european perspective, we

may looking at a hotel holder. from a global perspective, one of the companies in play? holdingave kingdom which is 95% owned by him. we are near kingdom tower as well. in terms of his other holdings, it's a long list. citigroup. twitter. list. -- lyft. 20th century fox. controlling stakes in some of the key hotels in london. the plaza near city. city. plaza in new york to point out here. the anticorruption committee has the power and to is, we don't

know what will happen to these and uncial names that have been rounded up. is there going to be a resolution or is it going to escalate before gets called? manus: -- manus: is it -- great reporting. weak dollar go straight to our guest. the political exertion that you have here is it manifest in the equity market. do think we're in for a bit more turbulence? kit: a little more turbulence. decision to do with the panic as the balance weekends -- with the paint get -- the peg at the balance weekends is about what you want to do with wages saudi arabia. does saudi arabia need a wage

cut three currency devaluation? which way do you want to go? i'm not sure that is a currency that is open to speculation. there's nervousness but the nervousness does not go very far. the bigger currencies are the ones that will react to the old rice. price -- oill price. you think foreign crackdowns on alleged corruption? will they look favorably? they like it if it's part of a clear sign of leadership and stability.

hotels targeted prisons, then everyone is going i'm surprised a little bit. are in foreign investors anti-global economy kind of move. a little bit more from program.ghout the the japanese yen tumbled to its lowest against the dollar since march. japan's that is crucial for inflation to exceed the 2% target. kuroda emphasized he will continue existing id economy until the target is reached area for more, let's bring in brian fowler. he joins us now from tokyo. were the comments more forceful

than usual? i think a few things are happening. i don't think mr. kuroda said anything new in terms of policy. he may be a little bit more confident. oil is at a two-year high. the prospect of that phil tearing through the economy is buoying his feelings. course president trump visiting japan and earlier in the day we had reported comments he was talking on and on again about unfair trade practices. i think people in the market were concerned that might develop throughout the day. it did not. but earlier in the day there was a sense that we might see some comments that would push down the yen. the bank of japan is in a wholly different position of rhetoric and action versus the fed or the bank of england with the european central bank. do you think today the rhetoric

backkuroda is a push against the timeline of discussion about tapering? >> i think that is right. i think he is dealing comfortable where he is right now. what we have heard from sources, there is a likelihood that he will be asked to serve a second term. i think he is now in a position to say exactly what he believes witches is he needs more time and will take more time. don't put any pressure on me and tried to get ahead of the game. we are going to get there. that's what he wants us to believe. much talkk you very to kit juckes again. -- again. is important here? did of urgency and policy? the yen and the euro have

been week for the last two years because the doj and the ecb have been holding the balloon or ball at the bottom of the some important. -- bottom of the swimming pool. is firmly holding his ball at the bottom of the pool. manus: he is holding his ball under the water. is he going to do more? targeting the 10 year government bond? kit: he is preparing us for the day when he turns around and pay at 50 basis points. it's a long way away. he's doing something else. what comes to threaten and permit only is risk aversion.

i've got saudi arabia, i've got president trump talking about unfair actresses -- practices. you do think the yen is undervalued but it's going to take some time for that ball to rise? for dollar yen is give or take 100. if monetary policy is completely devoted to having an undervalued currency, you can keep it there. it's only when you have another policy need at the same time that you can't put the whole thing together. manus: there's a few members of said that if the ink -- if the yen strengthens you to geopolitical risks, and has a large impact on the economy, the bank of japan would change the guidelines. it's flexible and not problematic. that says to me that they have open season on doing more. they don't like what they

got at the beginning of last year when dollar-yen went down to 98. send's no desire to dollar-yen to 125 or 130. they don't need a cheap yen. they need the yen to stay stable and not strengthen, driving inflation in the wrong direction. they are very happy with it here. anna: we have a very stable pound this morning. the cbi conference today. theresa may is going to talk about the importance of limitation. , known by some others is the transition deal. it's a wasting effort, though. what is it to you for that to shore up the pound? kit: not quite yet. i think welessons find is that sterling is a very cheap currency now and with a

thenof terrible huge price if it's not going down it's because, if you have any good news, you would get much more of reaction. manus: it's going to be interesting to see if the comments on preston on sunday galvanize. do think he is trying to re-sticky the bank of england? i'm not sure they can. i think yes to carry on with steady policy. i'm sure the idea of the rate rise was not that it would weaken the plan. manus: thank you so much. kit juckes is the chief strategist. has: up next, saudi arabia thrown a curve ball. a sweeping arrest of high-profile nationals. we are live as the stock exchange opens next.

you will get the latest on the ground. investorsldings and across the kingdom will be looking for some reaction. losses are recouped broadly. this is bloomberg. ♪

manus: study corruption crackdown. we are live in riyadh after the arrest of billionaires and top officials including prince halloween that's why lock i will lead -- trump's agent saw a joint news conference for the leaders addressed north korea. >> now is the time, not for dialogue, but for applying maximum level of pressure on north korea. manus: kuroda asked easing. the governor stresses the need of new policy as the yen touches a seven month low against the dollar. links --e papers .2

linked papers point to link between putin -- ♪ manus: welcome to bloomberg daybreak europe. i am manus cranny. .nna: i am anna edwards we get manufacturing orders. september manufacturing orders rise by 1%. the estimate for it drop. this number looks to be much better than had been anticipated . unexpected rise as the economy powers ahead. our reporter over in germany on this. german manufacturing numbers rising for second month, adding to the size that the economy will start rising at a solid pace. according to the bundesbank, germany is on track to continue upgrade to the third quarter

with manufacturing set to remain a polar -- remain a pillar. economists had expected the number to fall back this month because of the stress we saw and september but that is not been the case. mancos just a couple of lines coming through, a statement coming into -- manus: just a couple of lines come through, a statement. they received a letter from tci management and they will be providing input to identify his successor. they did follow proper process in regard to successor. brightened to quit. monthhey announced last that he would leave at the end of 2018, the chairman celebrated his remarkable achievement.

be a little bit of discourse in terms of's succession planning. -- in term of succession planning. anna: we will watch that one. manus: they've got 5%. anna: let's get a look at what is happening in the saudi arabia stock exchange right now. exchange,on the stock we saw a drop as 2.2% but i was recouped by the kingdom holdings. -- but that was recouped the kingdom holdings. the stocks rebounded yesterday but down a half percent today. manus: we are going to keep an i on the likes of twitter. the prince has been a holder since 1991. on the five occasions where you have seen this on the selloff, it is not translated into the

holdings in the united states of america. let's talk about the european open -- london, paris, all a little more tempered. .ou have trump talking to abe it seems they leaned toward the geopolitics of north korea. i would emphasize, a very slight lowering. anna: that would be on par with what we're looking at in the asian session. let's put up the risk radar. and read headline around south africa, the main stock index rising to a record, passing that 60,000 mark for the first time. keep an eye on that. .2%.sian session down by president trump around trade, the grievances with japan. that u.s.-led set -- that is setting a slightly negative tone.

a lot of love in the room between the two gentlemen. taking morning around the edge of the asia-pacific session. we have witnessed in the yen come through. -- oilect ending extending its gain above $50 a barrel. two senior figures and saudi oil. manus: you have wti trading up at $56, the highest level since 2015. shall we have a look at the bond market? we have the the french government bonds opening up. no great shakes on the bund. juliette? u.s., 26 people have been killed after a gunman opened fire at a church in texas . another 20 were wounded in the attack at the first baptist church in a small town in wilson county. the victims ranged in age from

five to 72 years old. authorities have not said what may have motivated the shooter was later found dead in his vehicle. japanese prime minister shinzo abe has announced land to take additional sanction measures against north korea over nuclear elevation. freezing that he will announce freezing assets. he made the announcement during a joint news conference after having talks with president donald trump on a three-day visit in tokyo. the u.s. commerce secretary, wilbur ross, faces questions about his financial disclosures to congress after a report that he did not disclose business ties to the son-in-law of vladimir putin. the story was a part of a row of articles published based on the "paradise papers."

we will be joined by wilbur ross at: 30 p.m. u.k. time. michael flynn, the former might test form a national security adviser, is close to being charged as a part of the investigation being carried out by robert mueller. according to nbc news, mueller's team is looking at charges of money laundering and lying to federal agents. he has reported -- to remove an opponent of turkish president erdogan. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . you. juliette, thank saudi arabia's king salman ordered security forces to arrest senior princes. manus: the roundup risks

overwhelming investors who are trying to get there has around the rapid change in the kingdom. yousef gamal el-din is live for us. the reaction so far, the currency has reacted a little bit more than the equity markets p we are just opening in saudi arabia. seven minutes past 8:00. yousef: that is how things are shaping up. he goes back to the point that we were elucidating and what we have been hearing from a lot of investors, this is priced in. out,is important to point how they have been here many times, is that -- you found a capital holding its breath. coming off the back of the weekend with these big changes on the political front. you are seeing the ballistic missile that was intercepted or the skies of riyadh. these are unprecedented developments. he can see a little bit of anxiety -- you can see a little bit of anxiety.

these are very influential figures. the question that begs is where do we go from here. are we going to fast? which is ironic. yousef, prince waleed has had a lot of holdings. we will focus on the hotel sites , from a european perspective, the technology very much in the limelight. he has been at the forefront of the arrests that have been made in terms of former and current officials. the minister of economy was sacked. , thisst powerful figures is a man that is short of $20 billion in net worth. he controls takes all around the world. -- he controls stakes all around the world.

you're looking at twitter, three digit million dollar investment 5.7% and a core portfolio of hotels. domestically he controls kingdom holdings. his tower has always been a landmark of the saudi skies. key hotels in london in new york city as well. manus: let's see how twitter, citigroup and other key holding start the trading day. great reporting on the ground in riyadh. joins us now. shakedown by nbs. mohammed bin salman, he is pro- oil cuts and pro-the opec/non-opec deal. oil, this is the december brent contract spread deck 2018.

it is rising. oil is up. he is pro-the cuts good news? >> in general, it is good news for the oil market. there was a big imbalance between demand and supply. it is helping the bouncing. if you look the curve, it is very interesting because it has moved a lot. the oil market is very tight. brent -- you are long brent. what was the timing you are expecting to see that payoff because you do see that oil price heading higher. despite opec, we didn't see the expected move. guest: we became more bullish when oil what the $45 to $48 and there was hardly time to belong but now the market is moved a lot so we will need to reduce

control. this is in the context of what is happening. it is good news. quick price match. stock's second-worst performer on the title this morning -- on the tight i will -- you are seeing a, cello group -- of course and that hourly holdings on twitter and citigroup, you have a whole host of holdings. anna: we will watch out for reactions. donald trump and shinzo abe also making news overnight. they just wrapped up a joint news conference. joining us now, stephen engle. what are some of the key takeaways? they talk more about security and trade. trump has been talking about trade. right.: that is

can i say this? the two world leaders have such a bromance. they were so complementary and that press conference saying donald trump calling shinzo abe "a great friend." shinzo abe saying that trump is a "dear friend." they are chumming it up. he is going to get into some sticky issues. in south korea and japan -- in china. this press conference, really dominated by the north korea issue, a shared vision pensions %be says u.s. and japan are 100 together on their approach to north korea pensions abe said they had in-depth conversations on a number of issues. they are in complete agreement on measures to take. shinzo abe announcing they are going to up the unilateral

sanctions against north korea. they are going to freeze the assets of 35 north korean entities as of tomorrow. he gave some concrete details. he also said he shares a view with donald trump that they need to get china on board to exert its pressure on pyongyang, saying it is incumbent on beijing to get north korea to and its missile and nuclear program. anna, you are right, donald trump has been talking about the need for free, fair and more reciprocal trade in asia as the u.s. runs trade deficit with all five nations. however in the press conference, they were short on the details, on the progress on a bilateral trade agreement that is in the works between japan and the u.s. now that tpp is no longer in the multilateral transatlantic partnership.

manus: stephen engle, thank you so much. is that a lot? and seems to be a little love in the room. -- anna: seems to be a lot of love in the room. wally,mckissic is they're having a bromance. couple of bigger issues. trump wants japan to do more business in the united states but maybe 90% of the cars that are sold in japan, there produced in the united states of america. how important is it that this asian tour works for trade? michele: if he take japan, they have a 70 billion surplus with the u.s. so it is a big -- it is important for them to deliver something, but there was a lot of romance in the room, but in the end, trump killed the tpp

right away. him and a big issue for as much as they can try to work together because of of korea, it is a difficult subject for them. anna: maybe even strong friendships have limits. talking about where the u.s. story goes from here, your stocks, longest run of weekly stocks,nce 2013 -- u.s. longest run of weekly gains since 2013. president trump and that press conference taking credit for most of that. michele: he takes credit for that. the most sensible way to do it is to look at things that have left behind which energy stocks are some of the resources stocks . there are a lot of areas that have been left behind in the u.s. and that is a sensible way to stay long and participate but not to be excessive.

manus: we have touched upon it, it is a new week. we'll give it another go. anna, you talked about the stoxx . the s&p, one of the longest runs since 2013. i wonder have a got groupthink going on in terms of volatility. look where we are. look where vix is. is it that so many people are now trotted into his craze that we cannot see the woods for the trees. if the market prepared for any kind of a jolt? michele: i don't think it is prepared. a lot of the drivers of this have been funds so the systematic traders, that is a big topic for the market. i'm not sure everyone is really focused on that. if you take the daily average volumes of the s&p, 10%, the rest is either passive.

it is a big driver of markets and because markets have tended to go higher and volatility is low, the risk is very high. anna: is it going to be systematic concern for the fed? janet yellen talked about high levels of stocks and the not fall back. powell is going to be the new guy the fed. how much should they be worried? michele: i don't think it is going to be systematic issue. they will be in effect because of the systematic trade developing deleveraging. that is an issue we have to face . it is not going to cost a stock market meltdown, but when there will be a north korea issue, there will contradict. -- they will contribution. manus: a nice, soft dollar has added to the trump trade.

it has added to the u.s. manufacturing. you cannot get away from that. u.s.ear green index on the is green. this is tied to the dollar. it moves the dollar. monday morning, we are rounding it out. there you go. back to seriousness. the dollar has turned. do you like this dollar? do you want to be short yen daca the yen move into jet -- short yen? the and move into -- michele: the dollar move is interesting because everybody is short. i think it has had the worst over the past 30 years until now. there's is a tendency for the dollar to be stronger.

it is very difficult, and it will depend on whether or not u.s. whichx in the is probably needed. that comes through, they will be bullish for the dollar. anna: michele gesualdi, think he so much. -- thank you so much. i think we've got the all share south africa index in their. .4%.e up a little bit by the reason, south africa's main index rising to 60,000 for the first time. we have the tadawul in their. guess in there, dropping a little bit. 1.1%. -- manus: dropping european equities are falling, that's like profit-taking risk aversion. i don't know which were to use. asian stocks drop a little bit.

china central banks warning about a financial risk. systemicxtent china is . anna: adding the comments from president trump around trade. let's get the bloomberg business flash with juliette saly. juliette: anna, thank you. republicans should slow down the consideration of attacks overall allege it reports offshore tax avoidance i multinational companies -- advanced -- avoidance by multinational companies like apple. even poke in chairman of the house ways and means committee says he will stick to his plans to consider the bill. softbank has -- as its u.s. unit sprint faces an uncertain future after talks of a merger with t-mobile collapsed.

over the weekend, merger talks between sprint and t-mobile collapsed as softbank so it -- softbank sort giving up control. king to list adi ronan: on the new york comic -- list saudi aramco on the new york stock exchange. the call came out of the blue for aramco. that is your bloomberg business flash. manus: the u.k. prime minister faces the titans of british business today as the government struggles ahead of sexual harassment scandals. anna: theresa may will speak at the conference where she will face pressure to give reassurances over easing the impact of brexit on business. your thoughts on u.k. assets right now? if you're going to have exposure

to u.k. stocks, where do you go? international exposure? michele: the message area because the stocks have phone a lot. some have fallen 50%. they offer very good value, discounting severe recession in the care economy which may materialize. at this level, it is quite interesting. it is one of the highest levels that we have seen. manus: the growth numbers have been less than impressive. are you a believer, you more the dips? are you out as far as the 350? you believe any for the dips -- we may see a transition period. this that suit -- does that suit the economic level in the u.k. echo -- u.k.?

michele: it is quite picky because you'll know what a negotiation is going to yield. the timeline is quite interesting, because there to get to the next stage of negotiations by the next year. it is quite tight. this may cause a drawdown in some of the stocks. anna: it seems like a lot of people are focused on the bank of england last week. the pound has been focused on that for some time. ever since the rank of england decision on thursday, there been suggestions that we move the pound being moved by the politics. michele: essentially the bank of england has very little ability to help the economy if something happens. a downturn, it is difficult for health to be -- difficult for help to be sawed from these resources. manus: we had articles this

weekend. and dropping yield and rising price assumption on the bank of england is one and done. they are selling gilts. there's better value overseas. do you think that is a contrarian take? would you go along with that? michele: that are more interesting things to do in the fixed income market than buying gilts. there's been a lot of investors looking at china because of the yields have risen to 3.9%. political stability and some investors will settle to do that. this will be suffering. anna: the pboc governor talking about leverage. michele: he is always commenting on something but what is

important is who the next chair will be. two candidates and their question wrong. they will be running backs. they know about npl's and leverage. michele gesualdi, thank you for being with anna and i did a couple of stocks that are worth watching. ,se of his downtown in riyadh kingdom holding is down. prince leads holdings. anna: pool keep an eye on -- we will keep an eye on u.s. companies. all of that, he has been a prominent investor in. keep an eye on those. european open is up next. will be joined by wilbur ross at 12:30 u.k. time. remember there is bloomberg radio. manus: if you are traveling to

work, you can get bloomberg radio. where in the digital radio in the london area parents stocks -- area. stocks in for a slightly lower opening. ♪

guy: monday morning. welcome to bloomberg markets, the european open. equity trading about to start. we'll bring you the first trade of the day. i am guy johnson. what are we watching? the big question, will the arrest of the french hit european stocks in u.s. stocks. hotel group is about to open pit he has a significant stake there appeared twitter and apple, they e