>> deal or no deal. brexit secretary david davis says he will be a 50% chance of a breakthrough during default talks this year. supply surge. shale becomings. the biggest oil and gas boom in history. the u.s. chief tax house votes. ads homet trump hed from asia. welcome. this is "bloomberg daybreak: europe," our flagship morning show in london. i'm anna edwards. matt: i'm matt miller, here in

frankfurt. standing outside of the ecb this morning, it is zero degrees. it could heat up after janet yellen and kuroda darken the door to meet with mario draghi. anna: zero degrees, that is challenging for your reporting. we have got some breaking news across the bloomberg this morning. let's get to that. we get numbers from japan, post this morning. they are still posting the final dividend at 25 yen. the first-half net income is coming at 181.2 billion yen. 400full year is still billion yen. key to this business is how much the government owns of it. japan has aner in reporting that we could see the finance ministry wanting to raise more money by releasing shares in thes fiscal year, startingi in april.

those are the headlines out of japan this morning. we've got numbers out of germany, though. matt? matt: yeah, we have rwe coming out and this is an interesting stock to watch because it is up 80% over the last 12 months. so, rwe has been doing well, 12 month adjusted net income, barely beating the estimate. but i guess they beat is a beat. it is confirming the forecast in the upper end of its projected range. so, rwe coming up better than expected, better than expected nine month income, and the forecast will stick to the upper end of its previous range. anna: we are looking at the corporate news flow this morning. let's get to our charts this morning, though, as we kick off the program.

this could be a contender for the chart of the week. we will see how the inflation data goes later this week. these are the 10 year treasury yields in the u.s. then, we don't get pce this week. we get cpi, so a different measure of inflation, but just drawing a correlation between these two sets of information, which is interesting in and of itself. if we get a cpi estimate that comes in below the estimate, for the fixed income sector, how much flatter will be yield curve get? that seems to be one of the key things to watch out for. in terms of how we have been trading overnight, though, matt, asian equities are down by 0.2%. take us through some of the elements on the risk radar. matt: yeah, actually asian equities are some of the most interesting asset classes we can follow on the risk radar. first off, the nikkei, because

of the drop it has been going through since thursday. the nikkei really plunged. it seems to have stemmed the losses for now. australian stocks, on the other hand, really dropping as commodity prices come down through the woodhouse sale we talked about yesterday. so, australian stocks losing about 1%, a little bit less. also interesting to watch, chinese debt, as investors push the yield down there on the 10 year because of some negative, or worse than expected economic news we got -- we got kind of a trilogy of bad economic news out of japan. then, keep an eye on the pound. may'st that as government comes under pressure. we could see more volatility. we are trading right now around 1.31, which is not that bad. let's get to your world and national news. reporter: in u.s. the chief tax

house writer says he is confident that there are enough republican votes to pass the legislation this week. kevin brady does not anticipate any major changes. the white house says president trump will seek the taxes on thursday morning. house ways and means committee chair kevin brady joins us at 6 p.m. u.k. time. the republican senate it candidate roy moore is facing a fresh accusation of sexual assault. the former alabama judge sexually assaulted a young woman when she was 16. mitch mcconnell says he believes moore's other accusers and called on him to drop out of the campaign, even as moore continues to deny the allegations. u.k. prime minister theresa may has told putin that britain is ready to fight back against the terms of destabilizing democracy. she said this included "meddling

in elections." her comments market division with the was president donald trump, who said he believes putin. theresa may: we know what you are doing and you will not succeed because you underestimate the resilience of our democracy, the enduring attraction of free and open societies and the commitment of western nations to the alliances that finbind us. ed: china'a economic expansion dialed back in october. % fromrial output rose 6.2 a year earlier, fractionally below forecasts, and down from a 6.6% expansion during the previous months. fixed asset investment for the first 10 months of the year grew 7.3%, matching estimates. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world.

you can find more stories on the bloomberg at top . let's check of the markets in asia with sophie kamaruddin. sophie: thanks, ed. we are highlighting that chinese data. we see the hang seng with a little change now, but the broad assessment here is the reaction to that data miss is fairly muted. japanese stocks fluctuated ahead of the bdp. a fifth day of losses. shares in sydney were the laggards, falling by 0.9%. i'm flipping the board to show you some of the equity movers in asia. we have the likes of woodstock petroleum on the radar. we lost this in sydney over here as shell sold the entire stake of the company. geelyg kong you have leading gains on the hang seng after it acquired a u.s. firm.

china is said to be considering an ascension of new electric car permits. noble shares are falling for a fifth session in singapore, sliding to a low from creditor dbs. now, anna and matt, they have lost 88% during 2017. anna: thank you so much. we are getting headlines crossing bloomberg from communications over in india. the latest in the headlines is a default on a $2020 bond. new, the first of their concerns on their inability to pay the reporting. after saying over the weekend that it missed local

debt payments. the story was about local debt repayments and today the headline was that reliance communications are said to the bond.ing 2020 dolalr bllar david davis has said it is 50-50 whether he gets through brexit talks by the severe. that is according to european business leaders. however, his spokesperson said it was categorically untrue that david davis had said that. bill returnsrohdraw to the house of commons today, stalled by the struggles faced by theresa may. very good to have you on the program, karsten junis. let's talk about the u.k. then this chart is 937. this is all to do with where the pound will go if we don't get a

deal by the end of this year. daviscomments from david suggest you think that is 50-50. we took a survey of what fx fed strategists think. they say there is a range, depending on what we get by december. >> the levels we are currently trading are already showing a risk premium for not getting a deal because we are just below the middle of that range. 1.30. trading at 1.31, look, i think it is a messy situation, very messy politics. frustrating slow progress into the negotiations, and on the back of it you have these concerns about the stability within the british government. 40 mp's are considering a no-confidence vote for may. ti think, there is a chance it

could get worse. because, the market is going to be heaped with a number of headlines and it will be difficult to extract the signal from the noise. ultimately, logic will prevail. logic tells you that the u.k. needs the eu more than the eu needs the u.k., which tells you that eventually, and regardless of any flexing of muscles that is going to be done from personal negotiations, i think we will enter the stage. the u.k. is going to accept the european proposal on the bill, and they are going to unlock the discussions about trade. anna: let's head to the other side of that relationship with matt miller, who is in frankfurt. matt: i am wondering then, what you do as an investor. is it all about the pound? are there any other plays, because you think the market is as present as and so, it is a great opportunity to make some

profits. >> i have to say, sterling is definitely not one of my top actuallys in trying to make money here because it is subject to a lot of headline risk and volatility. i think so far, the price action we have had over the last five or six months tells us the 1.30 level is a pretty strong support level and seems to be saying to us that the market, at this level, priced in a relatively reasonable brexit risk premium. so, i think, if you want to be relatively tactical, and want to play it smart, any level between 1.30 to 1.31 should represent a good buying opportunity, mostly against the dollar, not against the euro. i say this because i have a relatively bearish outlook for the dollar. in the end, we are going to have

some unlocking of the process towards the discussions about trade. anna: so, if you make that assumption then. where do we end up on the inflation story? kenny overlay what the inflation story is, or what the bank of england does? i don't think that monetary policy is going to be a major driving force for sterling going into 2018. it is mostly going to be politics. i think personally, it was a mistake to hike rates in november because they increased the risks of compounding for uncertainty. it's not going to be the end of the world at the end of the day -- we are only talking about one rate hike, but i think governor carney hinted it is going to be a very slow process. btv708, this is inflation

and the things driving inflation in the united kingdom. do we see this peaking? it's set to come in at, what? 3.1%? ed: we don't know if it is 3.1% or 3.2%. sterling, on a trade weighted basis did well this year. which means we are seeing the exchange rate pass-through from the negotiations with sterling that went on during the second half of 2016. the typical acts we will get between three and four quarters seem to be dropping out as we go forward. that is where i think it is reasonable to suspect that we are moving in that way. anna: thank you, vasileios gkionakis stays with us. diving back. china's factory output and retail sales slowed in october. u.s. shales the

surge is the biggest oil and gas boom in history. we then head to abu dhabi. this is bloomberg. ♪ matt: good morning and welcome

to "bloomberg daybreak: europe. " i'm matt miller come live from the central bank in frankfurt. the pictures you are looking at our from singapore, where it is a bit later in the day. also, a little bit later in the trading day. the msci asian index down a little this morning, the some of the asian markets are trading up. the nikkei, for example, has reversed just slightly. it has been over the last three trading days. let's get to your world and national news now. ed: at&t will try to dig into plan take over taiwan was for.

in the event of a trial over the at&tbillion dollars deal, will cut off access to communication between the white house and doj. at&t and time warner declined to comment, while the justice department referred to earlier statements from the department in the warehouse. credit suisse will pay $135 million to resolve currency manipulation allegations by the new banking regulator. trade has been prodded by executives in some cases. they shared information about current clients and talk to traders from other banks. in some instances, the traders ranked customer orders to boost the bank's profits. kelly to manage it has amassed -- elliott management has amassed ints position for a potential sale. elliott has held discussions with the company and is urging

it to consider taking it further. taubman didtive for not immediately respond to a request for comment. anna: thank you. china's economic expansion dialback just a notch last month. we saw less growth than estimated in the chinese government bonds extended and declined. we have 10 year yields hitting 4%. joining us now is bloomberg's tom mackenzie. he's in beijing. what are some of the factors behind the slightly softer data? comehave been expected to in at 10.5%. a fairly significant miss at 10%. it is chian. so, there's an element of disappointment around that.

there are a couple of factors though. we had this massive shopping festival over the weekend, a single they shopping event, and maybe, customers had their shopping spree put on hold until that had happened. hwe are having a pickup in inflation, softening wages, and putting caps on the housing market. that could put more important pressure on the chinese consumer client. as in terms of industrial output, we did see the numbers that led into it. we will get a slightly suffer ofter open. we've had a couple of factors, particularly a really tough dreams,n on some .specially in the arctic you mentioned the one market.

we hear likes of amz, we will get a lot more pressure from the ball event. policymakers appear to be connected to this. barclays says growth is likely to be strong in 208. yes, it could be a turning point in terms of what we are seeing in chian's data. saysberg intelligence there is trade off now, when it comes to b deleveraging campaign, there are other ways. there is now this consensus around of having to deal with the financial system. anna: tom mackenzie, joining us there. let's turn our attention to china, then. this chart, the monthly ecb

tracker). blue estimate.na in terms of the bigger picture, the extent to which they were able to deleverage the economy little bit without derailing the go story. i think that is about right. first of all, let's make sure we don't get such a headlining by showing in a very long ride. basically before 2010, 2009 and 2008 it was a totally different year. so, we have been in years of a structural slow down. that is natural for what happens with growth for such an economy. i think what we really want to thethat ties in with

russian endeavor. perspective, i'm not getting worried. 10 is one of the places where if you want to find tiit, you can. anna: you can find it. >> reporter: no worries. r related to fea your ability to control the economy. matt: well, on the other hand, it is also a place where you can expect some state return, at casileios. what do you think about the currency effect of people who knew we were purchasing chinese assets. this year i think we've

change imported churcant into how the ecb readings data. they've been quite successful in what they were intending to do, which was basically stem the pressure coming up from the capital outflows. this has managed to stabilize in exchange rate. it was not long ago, i think it nine months ago that the u.s. and china would be at the top, i think moving forward we are going to see some further depreciation of the .emainderj so, there is going to be something that creates the risk of investors through the currency channel. drops in u.k. usually

the last two motnhs. is that something that moves your wheels, or are you windowdressing? when we go back in, we had to do some sort of historical analysis and fair-minded that we are looking at different windows of 30 different regimes. right now one has a bang that movies. also, we have the trade weighted moving.ut the pboc is i'm not entirely sure who i trust. much veryk you we're getting some comments coming through from donald trump, who says the time and date of his segments are yet to come. he says he will make a major statement on the white house and he says it will come through during a twitter post today.

he is heading back to the united states today and we will continue to focus on his visit to the philippines. we will talk about that and his plans for taxes.this is bloomberg . ♪

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this is "bloomberg daybreak: in londond it's 6:30 and 3:30 in tokyo, where the islar against the tyen unchanged. let's get over to the news headlines. their numbersus for the third-quarter adjusted e-bit, $897 million, which is a touch shy of the estimate. sales for the third quarter, 2.5 billion euros.

so, missing a couple of the estimates just slightly and sticking to their guidance. they have been doing a lot of m&a. the ceo has been on the scene over the last eight months, but five years ago they had been over $100 million of m&a. also, increasing small, medium and larger businesses as well. the adjusted e-bit, coming in $231 million. sales, 3.7 6 billion euros. that's a touch -- broadly in line, really. this is the business that is planning to merge operations with those of german rivals. french government has backed this. they see it as a way of competing with the chinese. newsve got some breaking

in germany as well then, matt. matt: that is right. standing on the shie, looking quarter.irst the margin for the second quarter was 2%. we were looking for on $1.48 billion. so, just below expectations. finnian's outlook is being moved up. you might see a jump today. the outlook is more important than the backwards looking earnings. with get some more of the markets and for that, we go to nejra cehic in teh studio. nejra: we see a little weakness the cost the student equity i'm showing

moderation in the chinese economy. 's more to do with inflation data, but also the deleveraging campaign that we .ve seen since the enc continuing to talk about curve flattening, we see flatting everywhere. here, it's a technical signal, one of a couple that perhaps shows it is time to put on those gloves. first, the moment engaged, showing the 530 to somebody over soeul. what this chart showing is the document has reached the long-term economic health. we saw this unchanged a month ago. you are seeing is a bit of a bearish skew on your ability for

that. and one month volatility spiking from the concerns over the u.s., and of course, we have got focus on central bank this week as well. anna: president trump says he is going to make a major statement the white house. whether or not it will happen is not entirely clear. he added the talent base is yet to come. the president clearly in the philippines extended his trip. so he could join had to stay at the east asia summit. david engel, good to see you again. what's leading the stocks? estter: well, the really stuckis

here. china needs to remain in a framework agreement in august. they will announce the official charges, which donald trump offered to mediate those differences. i think a no lot of peoplea nodded politely. japan has been very critical of their humanity. there is a humanitarian crisis in myanmar -- and there are others, jubilee go issues, trade. you just mentioned about that announcement that donald trump was going to make, probably when he returns to washington and we are all speculating. summuit has been fairly divided.

maybe they have some sort of concessions from china carlos correa. speciala lot of reasoning when now. who knows? anna: yes, the mind boggles, stephen. thank you, stephen engle, turning if there with the news and the situation as to what sir donald trump mykonos later? asia, and that has been the focus since last week. had this had any big picture impact for you. are you pleased to build relationships with strongmen of the region and he said something about bilateral trade. have we learned how to sing through this visit? >> i have learned quite a lot. i think the fact he is trying to build strong relationships with china is actually a very positive thing. as other than that, as far

his vision or his plans for trade, or if you like, for trade protectionism, i don't think we have learned quite a lot. i still think that the risk for an increasing protection. it's not our central scenario. thsis trip todoes asia or donald trump's trade policy change the way you see your investments? tom: -- ed: it does not change them to a significant exent, i shale say. reconcile andg to there is the upside in reconciling. half of the margin should be considered positive. in terms of investment decisions, i don't think i have

really learned to love that . anna: we will be looking at a lot of inflation this week. i pulled this chart at the start of the program. uph it, we put pce against treasury yields. what are you expecting from the inflation story and how significant is it from december? it is a bit tricky and i will tell you why i think it is a bit tricky. on the other hand, you should get another miss. rough, yes, especially if you have turned into a text. at the same time, i think the fed has proven time after time that it is going to do a rate hike in december. the market is also inclined to believe that.

so, if we do get a miss, i think we will see some trimming, but it would will be marginal, as well as the fed rate hike was thinking. however, we actually affect the curve further on, which means if we do get a miss, you will start seeing a pair of s flapping wind. ed did not seem to think this cpi number had much to do with the breaking downs. bloomberg, talking about things all things united states. ofin brady, a key voi ce course, on this event right now. the u.s. national ways and means committee raises money. he iea predicted the

pedestrians would get out and like. tracy alloway is at that conference and she can expand to us just what it is. how much of a headache does the u.s. shale surge to open? .e have got the iae that report actually does a really good job of its planning on a high-level the transformation that we are seeing, in terms of being landscape.l, oil, we think you will be able to buy big oil powers at places like vons. the iea is predicting that by 2025, u.s. shale output will match the kind of output we saw in saudi arabia the height of e 1970's.il boom in th

so, really it all changed within the soviet union. in terms of the headaches this proposes, maybe we need to start changing our language. because even though we saw each other at the part, the shoot upa hospital, he still have not solved the corniche of the u.s. health directive. we get to see shale producers began to round up their investments and output. that leads to this downward cycle. here and opec we have a mini opec meeting and many ministers are talking about this problem. we told the secretary o ral he's watsnt dumb

they are getting the non-opec producers, especially russia, on their sdide. matt: you're looking at wti around $70 already. how much you think was priced in already. the market expects a production every night. if you look at the positioning, an extreme. years. basically 11 long when you have that kind of extreme conditioning, it means that sentiment actually begins to become quite fragile. ec does not seem to have much wiggle room. the market wants the extension. all that is left are the details there is a big possibility that those details my end of

disappointing investors who are set up for extreme recovery in the price of oil right now citigroup's have wonder if we get past the measure from opec and the end of this month, saying extension to the production cut agreement for a few months. or, if the even delay the production cut, adopt a green small one. that is very disappointing for a market that is really acting thank you, joining us from abu dhabi. joining the latest on the oil industry. vasileios gkionakis joins us now. you're thoughts on the oil market, ben? if we get something disappointing, what is the downside. it to some we get

point in, it would send brent crude from 63 to trading back below 60. and it apparently pushes a lot wti.ress on lk. level stha it is likely the extension of the cuts will come into play. the price has been kept elevated because there is to political concern about the middle east. this is why is really keeping oil prices relatively. matt: you think they can stay this high? we just heard you that 100% of this ministration causes you price damage? --

vasileois, for the time being, i'm ok. there is not want to be any ore prices.oron largelye been elevated, because of do political risk. if these people stop fighting out, maybe what you are left with will be some ounces. as the shale production up.s picking anna: is the shale boom -- we have got this great chart. the u.s. now can saudi arabia in

the 1960's and 1970's. we will show you this chart. it shows you the extent of the boom and how big it is within the historical context. does that change the way the dollar works? or is the dollar way bigger than even the oil story? vasileios: well, you have to look historically, how much has that factor been for the dollar. if you keep one of the factors that has been driving the dollar, but it has not been the most important one, or a single one factor. we still talk about mental's, interest rates, differentials. it is not point to change fundamentally how we think about the dog. anna: joining us early this morning, community strategist. coming up next, we bring you the conversation with fracncine's

market matker. lots to talk about. this is bloomberg. ♪ anna: you are watching

"bloomberg daybreak: europe." the new head of the french market watchdog has signaled a hard brexit. speaking exclusively to bloomberg, the amf chairman says firms will begin to adapt accordingly. here is what he had to say. bywe do all of this december. some progress could be achieved. case, then we the have a hard brexit. it becomes very possible. that would be a pity for everybody.

things were beginning to adapt accordingly. for some it will be easy and for others, it will be much more complicated. clarity, because when you are speaking about markets, organize,ime to , understand market infrastructure. financial jw many obs will move to paris? >> i just don't know. it depends on what sort of agreement, what sort of non -agreement we have. we just don't know at this juncture how many people will move.

the americans these days, are they in the financial picture? who are your contents reselling? -- who are your contacts recently? >> obviously, i can't say. but i think it's fair to say we have contact with all major services. reporter: do you believe that brexit will happen? so. think obviously, there's no indication that it will not happen. willf it doesn't, it greatly simplify all of our live s. matt: that was robert ophele. i have here with me the chief executive -- the chief economist, i should say. i gave you a little promotion

there. talk to us about what is going to happen in this building this afternoon -- this morning and this afternoon. we're going to the janet yellen coming in here any moment, kuroda coming in, mark carney, maria draghi. what do you expect from this amazing meeting of the most powerful central bankers int he the world? anan exchange of ideas and exchange of experiences. today there are convocations with financial markets. it's so involved. they all have a different approach. matt: have they not done a decent job of it so far? for example, mario draghi is scaling back quantitative easing. markets did not react at all. everyone knew it was coming.

karsten: that is exactly because of the communication that the ecb has adopted. they have communicated with financial markets before these meetings. they are giving speeches and so on. now, it's time to evaluate whether this approach is helpful, or maybe we have had too much transparency, too much knowledge. matt: so, what would it look like in a different world with less transparency, less indication? what is more central banks acted like the s&p for example? karsten: we would probably have more volatility in both markets. that is something we do not see right now. also because the central banks tell us what we are doing next year. the ecb announces what they are doing in 2019. matt: i want to quickly ask you

about the actual financial situation now. for example, the curve in the u. s. has the flatter than we have seen in a decade. does this mean we are at the cusp of a slowdown, a recession even? has the expansion gone on for long enough? karsten: no, the expansion is still going on. the expansion is reinforcing itself. so, we believe that even into 2018 we will have strong growth. thatecond indicators show it is unlikely to have a supply on the upside. matt: does that mean, by the way that the ecb will not have a difficult time getting to the end of quantitative easing and finally, raising rates at some point, say 2019? karsten: i strongly believe we have enough monetary policy. we could end the program in the

next year without an extension of the tapering. i strongly believe that. some would pick up at point. matt: so, you think the phillips curve will start to work at some point. karsten: it should. economists, we hold on to it for two reasons. we don't like the economic policy implications. wages are not increasing. that would also indicate a shift thought away from labor. matt: karsten junis, i appreciate you braving the cold with us. janet yellen will be here today. mario draghi, welcoming here, as well as mark carney and kuroda from the bank of japan. so, a real meeting of the most

powerful central bankers in the world here at the ecb in frankfurt. this is "bloomberg daybreak: europe." ♪

matt: deal or no deal. david davis is said -- has said there is a 50% in divorce talks. u.s. a shale becoming the biggest gas boom in history. and dialing back. china's economic expansion slows in october. the 10 year yield climbs to 4% for the first time since 2014. plus the u.s. chief health tax writer said he is confident of a boat passing this week as heads home from

asia. this is matt miller live in frankfurt alongside anna edwards in london. i am anna edwards. let's take a look at some of the breaking news this morning. corporate's coming through with numbers this morning. let's get to some of those. talking about their commitment for the future and looking back at their numbers. performance coming through, delivering good organic revenue growth on track to deliver for 2017. interesting what they have to say about the appetizing environment getting half of their revenue from ad sales. we have seen ad sales -- budgets being squeezed. pound and inflation story is in there. so far, we have that confidence on itv. you have more on the oil industry. matt: we have rosneft

numbers, 1.5 trillion rubles, in line, a little bit better than 1.84..8 4 -- on a little bit short but close to as far as net is concerned. third quarter ebitda, this is germans pay attention to. of 21% quarter over quarter. an indication of how they are doing. anna: let's get more numbers coming through from london. raising their full-year guidance for anna kendrick adjusted ebitda. ranges the full year they're raising, the full-year guidance and giving the first

half numbers. i do not see the organic services revenue number for the second quarter. that is what markets and investors will focus in on. 1.4% was average of the estimates we had on the bloomberg. the focus of this business is increasingly europe. it has been overhauling its money losing business in india. any comments they have on the broader global story. are looking for geographical breakdown. all of that very tough call. let's get back to matt. we have to the german gdp data. matt: much better than the estimates. we're looking at 0.8% in total output. that is better than the 0.6% that we were estimating in the third quarter. exports and investment, underpinning the euro area economic recovery.

the german gdp numbers meeting the streets estimates -- beating the street's estimates by a long shot. landsec reporting numbers and comments on brexit. brexit headwinds starting to show in the economy. so says the u.k. [inaudible] reporting first-half results. a pretax loss of 33 million pounds. 4.3.djusted nad per share the number one of the analysts had talk about that falling, the nab falling. let's have a look at where we are heading in the trading day ahead. a quick heads-up from the futures. weaker across the

european equity space this morning picking up from the asian session that started off but turned more negative. stocks 50 is weaker. if there side of the flat line. london is weaker. not much in it. i want to take a look at the risk radar this morning. we have had some very interesting moves in asian equities. if we look at the nikkei we stand the losses we have seen coming out of japan for the last two trading sessions. since thursday coming down on the nikkei and a turnaround. in australia, you see losses because of the drop in commodities, because of the sale of woodhouse that we reported yesterday. week equities trade in australia. the chinese 10 year, we have been talking about because of the weaker than expected growth

out of factory output, out of retail sales and investment in china. that triumvirate concerning investors polly -- piling into bonds in pushing the yield to 4%. we have the pound to watch, a lot of talk about theresa may, whether or not the u.k. is going to be able to deal with the divorce settlement this year, whether her government will be stable enough to hold up the pound. continuing to watch that. bloombergs get the first word news update. >> the chief has tax writer said he is confident the chamber has enough republican votes to pass its tax legislation this week. kevin brady says he does not anticipate major changes. the white house says president trump will speak about taxes at a full conference of house republicans on thursday morning. committee and means chair kevin brady joins us at 6:00 p.m. u.k. time.

the roy moore is facing a fresh accusation of sexual assault. a woman telling a news conference that the judge sexually assaulted her when she was 16. it comes as mitch mcconnell said he believes the other accusers and called on him to drop out of the campaign. ton as moore continues deny the charges. >> he attacked me when i was a child. i did nothing to deserve the sexual attack. i was frightened by his position and his power and i was -- i am coming forward to let him know any power longer has over me. ed: theresa may has called -- told glamour put in that britain was ready to fight back against attempts to destabilize western economy which included meddling in elections. putin'she leave believes

denials were sincere. >> you underestimate the resilience of our democracy, the enduring attraction a free and open society, and the commitment of western nations to the alliances that bind us. ed: global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . let's check in on the markets in asia. let's head out to sophie kamaruddin in hong kong. sophie: a nation stocks are set for a third day of losses. mess, theith the data hang seng looking little changed. the main concern that triggered the pound -- bond rout. and oil prices have surged since you -- june.

stocks fluctuated ahead of tomorrow's [inaudible] to toy five closed the day little changed. i want to highlight what is going on with reliance communications extending losses at record lows. d to have defaulted on its bond. china is said to be reconsidering the resumption of new permits. the -- losing the support of its credit and the resignation of its ceo. u.k.,let's talk about the it is 50-50 whether he gets a breakthrough in the exit by december. that is according to the european is this leaders he briefed at a meeting yesterday. his spokesman said it was categorically untrue that davis

had made the comments. the eu withdrawal bill returns to the house of commons later today amid stalled divorce talks and internal political struggles faced by prime minister theresa may. good to see you. assets,ocused on u.k. the u.k. growth story, how it weathers all of this controversy. what do your clients say? on brexit?atests sentiment toward the outlook as we get closer to the eventuality of article 50 and there does not seem to be resolution with these talks. the concern is growing. in terms of people wanting to --loy additional capital

[indiscernible] anna: we are starting to get some companies, a number of ceos telling us we need to get clarity on the transition arrangement. making their comment on the brexit situation, brexit headwinds starting to show in the economy. use it has been resilient. if we are seeing those weak spots, is this the place we look to my we look at the real estate sector and that matters a great deal too high net worth individuals. >> prime real estate continues to be at four and a troicki -- a trophy asset. looking at the broader u.k. equity market, the result season has been ok but even relative to eurozone equities we have seen better beats in the eurozone. we have had a tailwind from -- for markets from the weaker pound.

that is against a backdrop of the euro-dollar weakening to 122. there are the political developments that hand out. when we talked to our clients we have something called eric industry network. a big shift in the last couple of months. previously a focus on the u.s. in terms of the key growth opportunity. thewe are getting eurozone, confidence in the eurozone outlook is increasing and the willingness to deploy capital into the eurozone increasing and contrast what we hear about the u.k. politics,mentioned are you concerned about something about the italian elections coming up because there has been this decentralization populism. even if they are not winning majorities, they are getting into parliament. andermany with the afd

slowing down the integration momentum we had over the last couple of years. guest: the bullishness with respect to the eurozone is about the growth we're seeing. are two years into the cycle. we are much further through this economic recovery. it is the fundamentals the which are leading to increased optimism with respect to europe rather than a constant focus on politics. respectsome risk with to italian elections, this is taking a state -- step back. this is perceived as populism. long way from that. in the last 12 months they have been positive. anna: you talked about taking the long view of history. will talk about that and the

growth story. we have the month -- the number of the german gdp accelerating to 0.8% in the third quarter. ishave the chart here, this 7762 on the bloomberg. track for the best gdp since 2011. that is underscoring what you said about the contrast between this economy and others. guest: when you look at the eurozone it is exposed to grumble -- global growth as a whole. this is the first year in a number of years that we have seen every country in the oecd grow. we are seeing acceleration across the main blocks while the numbers out of china are a little bit weaker. this is the year where we have seen acceleration in china, japan, the eurozone and the u.s.. it is supportive 40 -- eurozone assets. thank you, simon

smiles,he stays with us. and giving financial firms some wiggle room when it comes to the sweeping regulatory shakeup. chairman discussed brexit and the need to regulate bitcoin. here's what he had to say. do believe some progress can be achieved. if it is not the case, hard possible,cause very that would be a pay for everybody. -- pity for everybody. and [indiscernible] adapt accordingly for some

activities would be simple. for others it would be more complicated. for example, [indiscernible] when you are speaking about time toit takes markete, perceive infrastructure somewhere. >> how many financial jobs do you think will move to paris? >> i do not know. ways clearly linked to the brexit will happen. what sort of agreement or not agreement will we have, [indiscernible] they do not know. many people they will move into continental europe. january we are going to have new rules, a french firms

ready? a project, soge huge a change that we will need to a company all these -- a accompany these. the risk they have to solve, customers.heir own in the future there will be litigations if they do not. that is what we are telling them. first concern. >> the u.k., the netherlands had said they will take a gradual approach to enforcing this. be --he amf are monitoring the key

point for the beginning of the implementation. we need to recognize them. enforcement will come later. we have to be sure that the rules are applied and are applied on a [indiscernible] business. with the bitcoin bubble, you believe there is a bubble in bitcoin. and are you in favor of block chain but not bitcoin? >> that is true shadow banking. currently, these cryptocurrencies, you need to an international regulator. it is nowhere. it is in france, china, the as., and so it is clearly

field where international corporation -- cooperation is very important. the a chair ofmf -- the chair of amf. thedends at ¥18, saying final dividend at nine yen. they are buying back 1.5% of shares for ¥100 billion. it hundred 80 u.s. dollars. the net income numbers, 620 foot -- 626. that is a little bit ahead of the estimate. it's talk about what is going on in the oil industry. rosneft has released third-quarter results, revenue came in slightly above analyst came ins and net income slightly below. will kennedy joins us now. is also withles

us. what do the results tell us from rosneft? they came in line with analysts were expecting. net income fell slightly quarter on quarter and free cash flow phil corder on quarter which might speak to the fact that there commitments remain high and projects overseas like [inaudible] in prepayments to the kurdish regional government mean that there are other calls and that cash. iea highlighted the shale surge in the u.s. in its report. how much of a problem is that for opec? >> the report was fascinating,

it put the shale boom into historical context and pointed this ranks with the biggest shifts in energy we have seen since the second world war. there is the development of the saudi fields in the middle east. it is up there with the giant gas fields in soviet russia developed in the 1960's. this is a seismic shift. this is not going away. the iea upped the forecast for much oil can be recovered in the u.s., upping the forecast for much is likely would to be puts intond it context the challenge for opec. one interesting thing we are reporting on is the saudi exports of oil to the u.s. on a 30 year low. anna: a fascinating report coming through from the iea. we have the graphic. if you want to weigh your thoughts, we have this graphic that will put in context the shale boom, that is what we saw

in saudi arabia in the 1960's -- with thes the russian gas boom. this is going to be the largest, in terms of the gains made through history. how much are your clients reorienting portfolios toward that or have they done that already? simon: very little create it is about moving away the exposures to companies that are riskier. you highlighted the key risk and challenge the oecd -- opec has. and the price sensitivity of the sector. to -- into the meeting, [indiscernible] there remains the challenge, how does opec manage when there is so much price sensitivity to come from the shell sector? price at the oil

top, do you think, simon? we heard from a number of people that the extension is expected from opec and priced at 100%. are we at the top with oil here? see trading at a range of 60 to 65. we see some weakness, the six-month forecast is 60 for brent so moderate weakness with upside cap to buy shell supply coming online and we still have above 10 yearcd levels. structural issues are weighing on oil. anna: thank you. joining us with the latest on the news flow. simon smiles stays with us. they are notts --

getting exposure to shield because they are moving away from fossil fuel assets, what are they doing when they are looking for sustainable investment? simon: there is no irrational exuberance along -- among the client base. they're looking to deploy more into european assets. nit. is intereste it is partly the change in the base.-- client female wealth is growing at 160 points and millennials are having the biggest intergenerational transformation. withing your investments social interest is something that 80 -- 88% of clients said they wanted to do. 69% of millennial's want to enroll.

they spent a lot of time trying to develop those solutions and we are about to launch the first 100% sustainable investing across asset portfolio. bonds inc. substituted for world bank debt. you -- i am looking around here in germany and seeing wind power everywhere. it seems everyone wants to get into this investment. we seem to be at an inflection point where this kind of sustainable energy is becoming profitable and making money for investors. are you storing to see that as well? simon: very much so. countries are having parity being achieved with respect to renewables. you can have a positive social impact while having a positive financial performance and that is the core of the space. it will link the social and

environmental interests. it is something that is increasingly being demanded for our client base. anna: the delivery still has some challenges. the government have a role to play in incentivizing investment in that direction if that is what they want to drive. simon: sustainable investing is not just renewables. you get a yield pickup versus treasuries, you have a high credit rating. a high aaa rating rather than aa. leveln get -- help fund development while also having a superior risk adjustment return. anna: thank you very much, simon smiles.

are putting their money. the european is next -- open is next. guy johnson will be joining matt miller. this is bloomberg. ♪

♪ good morning. this is the european open. cash equity about to open. first trade of the day coming up. i am guy johnson in london. matt miller is in frankfurt. proceed with caution. could european stocks be heading for a correction? brexit headwinds. it is starting to show in the economy. we will speak to the cfo