"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> good morning from bloomberg's european headquarters in london. manus: this is "bloomberg daybreak: europe." asia resumes the selloff, bank of america calls time on china's equity rally. the saudi summit loses its sweater. president trump is not satisfied. we are live in riyadh with the latest. will italy's budget be the first to ever be rejected by the eu? ♪

manus: a warm welcome to the show. we are rating -- waiting for earnings to come through. let's show you how the markets are faring. the pboc may be doing other things in the market to draw a line in the sand on the yuan. you have these markets just coming, i suppose you have a little bit of reprieve in the yuan. the pboc offering more funds to companies. brokerages are joining in an asset management plan. yuanre seeing perhaps the losing a little bit of value. paints, homes will all come after the indian market closes. let's have a look at the oil market. wti.- you got

they've decided to go with wti rather than a brent contract. you've broken the $70 level. inventories are expanding at the fastest pace since 2017. breaking news aplenty. take it away. nejra: let's take a look at these numbers from swedbank, a billion.f $24 they beat estimates of 23.8%. third-quarter net income, 5.3 5 krona. swedish third-quarter net interest income, 6.3 3 billion swedish krona. the estimate was 6.38 swedish kroaona. costs in line with expectations.

swedbank talking about continued lending growth as well. it has zero tolerance for any type of criminal activity. a lot of numbers coming through here from swedbank. you have numbers from gaam, manus. aam has been under pressure since the departure of the ceo. majority of the movement, one of the large pieces of that movement has been from the arbf fund, contributing to it 10.8 billion decrease. this is the interim management statement. gam says the measures are being implemented to support profitability. of course everything is on the gam. for a or bf,e the acronym

absolute or return fund, led by tim heywood. the unconstrained absolute bond fund was the responsibility. 10% drop. we have reports that they are in early-stage talks with a number of potential buyers. could that be for part of the business or all of the business? the targets all about what can they achieve. what were the original targets that -- one of the original targets was to grow the business by 10% over the next 5-8 years. eric coleman and the team are on the board in london with that. we will discuss gam in a little bit more detail. how was euro-dollar this morning? nejra: let me talk about what euro and pound have done to the dollar. the weakness pushed the dollar to a fresh 2018 height.

the euro, some softness on concerns around italy. we do -- did see the b2b bund spreads settle. says he would sell on any early runs in the euro. cable yesterday dropped below 130. theresa may does live to survive another day, though. looking at what's happening in u.s. features. yesterday we saw the s&p 500 dropped. the nasdaq was tighter. today we see u.s. futures across the board lower. the msci asia-pacific index on the brink of bigger market. coming up, jacques van den broek joins us of randstad for his first interview of the day. let's check in on the markets in asia with juliette saly in singapore. juliette: as you said, we are on the brink of a bear market on

the msci asia-pacific index. widespread selling right across all these indices in asia, led by a significant weakness in japan's nikkei index on the south korean kospi. you have the yen higher, u.s. treasuries and gold all moving higher. chinese shares snapped their two-day rally on what was suspected state-based buying. let's have a look at some of the stocks. china mobile in the hong kong session under pressure. it ought that its third-quarter earnings were actually worse -- thought that its third-quarter earnings were actually worse than its -- lexil group down by 16%.

scope has -- help anotherope has received takeover offer and has seen its share price rise by 20%. manus? manus: juliette, thank you very much. juliette saly with the very latest on the markets. today this is your mliv question. is there a floor in china's after thehat can last governments latest maneuvers? that is the question of the day. tax incentives, able host of moves made. let's get your first word news. juliette rejoins us. juliette: u.k. prime minister theresa may says a brexit deal is 95% complete and has appealed to lawmakers to support her after a weekend of speculation about a leadership challenge.

she told the house of commons that the majority of issues have been settled on the brexit transition -- settled. on the brexit transition period, she said an extension might be needed which is not committed to it. createsecond step is to an option to extend the implementation phase as a part of the backstop. i do not want to extend eriod and i do p not believe extending it will be necessary. juliette: the european commission is likely to decide today whether to formally demand that italy take back, revise, and resubmit its budget, a step it has never taken before. italy's populist government has told the eu is willing to reduce its budget deficit next year but says it needs to spend more now to help its citizens -- forced citizens -- poorest citizens.

later today bloomberg television has an exclusive interview with the prime minister of italy, just up a content -- conte. at a separate survey shows -- dominating social media with his name being mentioned three times more frequently on a series of platforms than his opponent, though it's not clear how many were positive or negative. another step in china's project to bring hong kong into its toom is complete and is set connect the former european outpost of macau with the mainland. the 34 mile bridge is the world's longest ceiling will open for traffic at 9:00 local time on wednesday. the link is set to carry some of 29,000 cars and trucks each day

between the mainland and the former british colony of hong kong. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. nejra: juliette saly in singapore, thank you so much. president trump turns up the heat on saudi arabia, saying he's not satisfied with the kingdom's explanation of what happened to the washington post journalist. with the saudi crown prince in riyadh. you sick about is an react -- .ousef is in riyadh give us the latest on the investigation. >> it serves as a powerful reminder and symbol of where we are with these investigations. nothing tangible has been

actually reached. no clear results have been published. we had jared kushner weighing in. he downplayed the involvement of the saudi government in the death of the journalist. -- we see what the turkish government says, we're looking forward to a speech by the. turkish president. in terms of the conference in riyadh, the three-day investment summit will go ahead despite a lot of the business titans pulling out from the event. it is such an important platform for the saudi authorities in terms of bringing investments and capital to the kingdom. you have the ceo of siemens been the latest. the organizers insisted they have 120 speakers will be attending and that the event will be a success. that is the framing at least here on the ground. a lot to hold your breath for in the coming hours, with major implications across asset classes. manus: thank you very much.

this is day two of it being on the front pages all around saudi arabia. yousef will be on the run in riyadh. several companies, including bloomberg, i pulled out of the future investment initiative event being held in riyadh as media partners. bank of america and merrill lynch say we should not get too excited about this rally we saw in chinese stocks. the banks head of china strategy, who also predicted the ,quities would crash and 2015 said the recent gains were a sentiment driven short rebound that are unlikely to be sustained. continuesai composite to be one of the worst performers. joining us now to make sense of it all is stephen gallo, head of fx strategy at bm oh capital markets -- bmo capital markets. what do you make of the most

recent pboc moves? what do you make of the levers that they have pulled thus far? sense,: in a very short given the space of time i have had, they are managing the economy, china to backstop growth -- trying to backstop growth. at the same time, they have also encouraged a weaker r&d. part of it -- rmb. part of the response has been to steer the rmb lower. they are managing the decline and slowing the decline. nejra: you are saying that you would add to a long dollar cnh position. when it starts to approach 698, that's when you would start to take that position out. is there something about the seven line that you find crucial? stephen: you have to very careful when you are doing with a managed exchange street or a managed currency -- exchange

rate or a managed currency. we are saying, maintain a long .ourt dollars cnh position probably the safer play is to belong the one year out right yearrd -- be long the one out right forward. expecting a not full halt to rmb depreciation, because there are limits to how much pboc can allow a tightening of financial conditions, given the debt burden and its strategy for growth in the mainland. manus: what happens with the renminbi will have consequences for purple markets -- parental role markets -- peripheral markets. we saw this spike in e.m. the dollar is on the march, we

will talk more about that. in terms of what happens with the renminbi and em, to what extent does the renminbi drive the em -- at the moment? stephen: i think the pboc is conscious of what happens in 2015 and 2016. loss control quite a bit and spurred broader em contagion. generally what we have seen since the end of quarter one is distressng periods of --. when em tensions come down it lets the rmb underperformed. most of the e.m. distress i think we have seen is the global economy getting to grips with the reduction in central bank largess. they could go very wrong and we are conscious of that risk.

so far pboc has been cool, calm, and collected. nejra: let's put up our question of the day. is there a floor in chinese equities that can last after the government's latest maneuvers? i am not going to ask you whether there is a floor in chinese equities, but what i do want to ask is what we have seen, the two days of gains and then the selloff. how does that translate into your world of the yuan, if at all? stephen: the realignment of global trade which trump is trying to instigate and influence guarantees significant uncertainty for china to maintain its large external trade surplus. what does it need to come in and uan in its place if it cannot rely on trading to buffer the trade balance? it needs capital inflows. what happens to on short asset

prices -- onshore asset prices have a big part in the future in what happens to rmb assets. pboc needs to let those markets respond a bit more to market forces, which is to win the support of foreign investors. that is not the only path out for china given what the trump administration is doing. i think we will probably see a mix of different things. nejra: stephen gallo, handling our mliv question. manus: yes indeed. cool, calm, and collected, just like mr. gallo always is. this is what we have got for you. if you are traveling to work, join the team on bloomberg radio, live on it mobile device. this is bloomberg. ♪

♪ nejra: we've got some breaking numbers through in the past few minutes from randstad. third-quarter revenue coming in -- 6.3 onebillion 6.01 billion euro. we will talk to the ceo, jacques van den broek. ceo of mohammed al-jadaan joining -- ceo of randstad joining us for the first interview of the day. and the u.s. and netherlands, key markets for randstad. manus: let's see what he will say about that. quick check on the markets. we have the msci asia a smidgen away from bear market territory.

,ou have the shanghai composite of course we had that splendid rally, but it will not last. bank of america and merrill lynch saying that stock rally will not continue. stephen gallo prefers to be long one your forwards. nejra: let's get a bloomberg business flash with juliette saly in singapore. juliette: netflix is going back to the junk bond market to find new content in order to maintain burgeoning subscriber growth. the $2 billion offering will come in dollars and euros, and arrives a week after the company reported a bigger jump in subscriptions than experts anticipated. it pushed netflixes debt load about $10 billion the first time. richard branson has stepped down

as chairman of the virgin hyperloop, the company that plans on building a supersonic transit system. he says virgin hyperloop needs a more hands-on chairman. last week the financial times reported that saudi arabia pulled out of a plan to deal with the company after branson halted investment talks after the disappearance of jamal khashoggi. nejra: as the u.s. gears up for the midterms, president donald trump has said congress logo on a new tax cut -- congress will vote on a new tax cut after the election, however lawmakers say they have no such tax cut in the works. we are giving a middle income tax reduction of about 10%. we are doing it now for middle income people. this is not for business, this is for middle. that's on top of the tax decrease we are ready got. nejra: that was donald trump speaking in nevada at a campaign rally.

stephen gallo is still with us. yesterday we saw the dollar moved to a fresh 2018 year high. are you a buyer of the dollar? stephen: i like staying long of it for now. they are a number of things that get me to fall into place before i think we see sustained gains. we think it goes moderately higher over the next three months. given the nature of -- in the g10 space, you get paid for theng dollars -- carry and g -- given the nature of carry in the g10 space, you get paid for owning dollars. capitalist would the -- catalyst be for them to fall forward? the market on the pricing in a o next yearity of tw -- hikes next year.

stephen: there are a number of factors. i think the midterm election results, i don't think there is a clear dollar negative if the republicans lose control of the house, but it something that could start the ball rolling. don't forget as well, there's an important dynamic between the dollar and the rest of the global economy in that the dollar almost feeds its own economic weakness by being strong. if we have the dollar pullback and it becomes more convincing that the dollar is pulling back, that could be good news for the global economy, capital inflows into the emerging markets space. it becomes a self-fulfilling. that's what i would say, basically. nejra: what's your more medium-term outlook? the on the midterms, what's your focus for where the dollar gets its impetus, either up or down? stephen: we expect of the economy to slow in 2019.

this is one reason we are not aggressively bullish on the dollar from here. they expect slowing from the fiscal stimulus -- because of it fiscal stimulus, capacity streets -- capacity constraints, and the tightening of the fed. that are open questions regarding the degree to which the fiscal stimulus is going to add to u.s. potential growth over the medium-term. i still do not think that is a done deal. ,f that becomes evident suddenly the speed limit of the united states economy goes up. suddenly it could look like the u.s. is able to attract fgnificant fti from abroad -- di from abroad. it's not clear yet that we get there. most of our dollar strength forecast for the near-term is because of european political risk in china. manus: hold some of those thoughts. we will get into italy very shortly.

stephen gallo stays with usstephen gallo --stephen gallo stays with us. coming up on the show this week, we will be speaking to a slew of bank executives. ♪

♪ is monday it just getting moment for asian equities -- just kidding moment for equities? we have seen broad weakness today in the asian session. leading the losses for much of the session has been japan, but these are broad based losses across asia. the rise shot is -- is one of our partners. asiankness across the session and india as well. the two benchmark indices

trading at the lows level since april of 2017 -- lowest levels since april of 2017. in bunch of spacious -- a bunch of spaces our trading in deep cuts today. the renminbi has weakened the 9.t since october indian rupee weakness seems to be over, but we have a fresh forecast which puts out a bearish estimate to the currency. manus: thank you very much for that. is standing byn with a host of charts for us. what has cut your focus this morning? obviously yen is bid, the neck i nikkeir pressure -- the

is under pressure. you can see the red line line on the chart behind me. all the major indices in asia are down either between 1% or 2%. that were spiked yesterday was short-lived -- that risk quite -- respite yesterday was short-lived. region,oser to your looking at what's going on in saudi arabia, these are the foreign investors selloffs. you can see at the bottom, foreign investors were the net sellers of a total of 4 billion -- of stock this week. this is to do with the crisis that started with the killing of khashoggi.jamal mark mobius say he is considering getting out of the

kingdom. some interesting stuff happening and more investors coming out talking about whether or not they will continue investing in riyadh. manus: thank you very much. that exit -- exit is of capital from -- exodus of capital from riyadh. breaking news coming through from renault. revenue numbers confirming the full-year guidance. that's the first take away from the run out set of numbers -- enault set of numbers. they raise their china forecast. was --lux yesterday yesterday as a result of trade wars. atrd-quarter revenue came in $11.5 billion, a miss of the estimate of $12.2 billion.

we saw an incredible smacking on phillips yesterday because they missed the numbers. this is renault missing their numbers, cutting their china forecast, however raising their forecast on the french market. from renault to the first word news. juliette saly standing by. juliette: u.k. prime minister theresa may has set the brexit deal is 95% complete and has appealed to lawmakers to support her after a weekend of speculation about a leadership challenge. she told the house of commons that the majority of issues have been settled. on the brexit transition period, she said an extension might be needed, but insisted she has not committed to it. the european commission is likely to decide today whether to formally demand that italy take back, revise, and resubmit its budget, a step it's never taken before. senior eu commissioners have already stated that italy's

budget is in serious breach of eu rules. italy's populist government has told the eu is willing to reduce its budget deficit next year, but says it needs to spend more now to help its citizens. later today, bloomberg television have an exclusive interview with the prime minister of italy, giuseppe conte. theident donald trump said u.s. will cut off ornate to guatemala, honduras, and el salvador as thousands of migrants continue to make their way to the u.s. border. he blames the so-called caravan of migrants on democrats. a percentage of u.s. overseas aid and the health on u.s. -- on corruption or immigration concerns. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

manus, nejra? nejra: juliette saly, thank you so much. italy's populist government has told the eu is willing to reduce its rulemaking -- rule breaking budget next year but needs to spend more now to help its poorest citizens. prime minister giuseppe conte says there is no need for them to go beyond that in 2019. >> the 2.4% target is our upper limit. we can still reassess during the budget implementation a containment so we do not necessarily need to reach that 2.4%. for sure we will not exceed it. from bmoephen gallo capital markets is our guest house this morning. when you look at europe and italy, they have this big reprieved in the spread. you would say in your notes that the abruption between brussels

and italy -- your option -- uption between brussels and italy -- do i get ready for more volatility in the euro in 2019? stephen: i think you get ready for a bit more weakness, that's what i would say. this is not just about italy's budget deficit for next year and the year after. this is about the rules of the eurozone. one might think that it's not the breach of the rules that's a problem -- say that it's not that breach of the rules that's the problem, if the rules themselves -- it is the rules themselves. some say we need the rules to stabilize the euro. maybe you need to get rid of the euro. the political stability -- instability handing over the euro persists until the parliamentary elections next

year. nejra: you see this catch-22 with euro-dollar. explain what that is? stephen: at the moment, look. if draghi is aggressively hawkish, if the ecb takes an aggressively hawkish stance given the impact that a rapid normalization of policy could have on credit markets across the eurozone, we would say that aggressive hawkishness ultimately is a risk negative thing for the euro. knee-jerk,initial you would sell it. the problem with europe is that the bond market risk is becoming unhinged. sous: when you say unhinged, what would do fine unhinged in the stephen gallo world -- define unhinged in the stephen gallo world?

what does an unhinged bond market look like in europe? stephen: we saw examples of it during the height of the previous eurocrisis. obviously the ecb restore the and made it no longer a risk of becoming unstuck. in the context of the bond market, it's important to understand that the eurozone needs constant management and tinkering. with so many distractions at the moment and political fragmentation, that tinkering is becoming harder and harder to deliver. this is what the europeans do. that was the problem from day one with the euro. it was launched probably too quickly and after that it was not managed correctly. it was just left on autopilot. now it needs that tinkering and managing more than ever. given the shifts in politics, it's becoming harder to deliver. nejra: we talked about the dollar earlier. yesterday we saw euro weakness

and sterling weakness beat into dollar strength. part of you being long dollar, is that about a weaker euro, but also about a weaker sterling? stephen: sell europe or by north america is a view that -- buy north america is a view, or a team we can quote -- theme we think will be here a little bit longer. with a limited inflows there is limited reserve recycling, and therefore limit buying of euro and sterling. in general. it's not always the case, but in general. manus: you have not been to the perfect world of daybreak where we put our shows together. this is per section -- perfection personified. we had a guest say that the pound at 1.30 is priced for a

hard brexit. those risks are rising. i just wonder, does a hard ?rexit price take you below of brexite hardest now for you in terms of the tail risk? where does it get to on that? stephen: 1.25. manus: that's interesting. initially and then possibly as well as 1.20. you look to fade the weakness around their. nejra: let me have to about the ecb. how difficult is mario draghi's job going to be this week? stephen: this year, the next year. this could be the hardest 12 month stretch yet, and

convincing european leaders to do qe was hard enough. what was your question? nejra: how difficult was his job be this week given this catch 22 with the euro? stephen: he has a difficult balancing act because the need -- the political and economic needs of the constituents of the eurozone are not in harmony. he has to probably another sort of brought neutrality, give with one hand, take with another. it will probably keep euro-dollar confined to its recent ranges, which we think for the time being is 1.1 350. manus: ok. thank you so much, stephen gallo . the european ahead of fx strategy -- european head of fx strategy at bmo.

don't miss our exclusive interview with the prime minister of italy, giuseppe conte, at 2 p.m. london time. nejra: whatever you want to call it, we are watching it. next, jacques van den broek joins us for his first interview of the day. this is bloomberg. ♪

♪ nejra: this is "bloomberg daybreak: europe." 6:46 a.m. in london. cable doing nothing, but we did see a drop of about 0.8% in yesterday's session. concerns probably -- perhaps ahead of theresa may addressing parliament.

by the way, the selloff in cable and the euro have pushed the dollar to its strongest level this year in yesterday's session. let's check in on what's happening across the bloomberg universe. the world's largest see bridge is set to bring hong kong closer to mainland china. it's due to open traffic tomorrow and tipped to carry some 29,000 cars and trucks daily. manus: on to bloomberg.com. the european commission is likely to decide today whether it will formally demand italy revise and resubmit its budget. this would be a step it has never taken before. our most read story on the bloomberg terminal, third place, netflix denies tailoring its movie promotions based on race. hot stocks posted their biggest drop in 12 years and trump vows a postelection vote on a tax cut.

manus? manus: another story we have our eyes on involves twitter. it's not the president of the united states. it's this gentleman, elon musk. he's on twitter this morning. he has had a couple of dangerous moments, of course, on twitter. it has caused him a few issues in regards to his role at tesla and a few investigations. it's get a business flash with juliette saly standing by in singapore. netflix is going back to the jump on market to find new content in order to maintain burgeoning subscriber growth. the $2 billion offering will come in dollars and euros and arise a week after the company reported a bigger jump in subscriptions than wall street analysts expected. it will also push netflixes debt load above $10 billion for the first time.

bayer has failed to persuade a u.s. state judge to set aside a verdict. their argument was rejected that the jury did not have any basis to conclude that an herbicide caused a former school groundskeeper cancer. bayer says the key ingredient in roundup has been proven safe in studies. richard branson has stepped down as chairman of version hyperloop. he says -- virgin hyperloop. he says virgin hyperloop needs a more hands-on chairman. saudi arabia pulled out of a plan to do with the company after branson halted investment talks after the disappearance of -- jamalqshoggi

khashoggi. has reported third-quarter growth. joining us now on the phone from amsterdam is jacques van den broek, ceo of randstad. great to have you with us. thank you for joining us. let me start by asking you about the tightness in labor markets. it's something that is happening in the u.s. and the netherlands. how tight our labor markets now -- are labor markets now? jacques: you see historic low unemployment in the u.s., and the netherlands. i would not call it an overall --, but we need to work hard with our clients to get them the

right candidates. volume growth is tough to have because people get hired sooner. you do have some pricing power, which is see in our margins, which are broadly stable, and leads to an improvement in results. manus: good morning to you. fourth-quarter margins are seeing modestly lower sequentially. what does that mean? where is the margin squeeze coming? which geography is that squeeze coming through in? jacques: the margin, or the growth margin we get for our services is broadly stable. there is more of a technical defect in france. we don't get a special affect in france.- affect in that will not harm us that much. we expect to modestly improve our ebitda margin in quarter for

as we did this quarter -- four as we did this quarter. nejra: i would like to ask what the impact of ongoing labor reform is likely to have on your business? jacques: at the moment in france there is not a lot of labor reform. it's a pretty stable environment. ,he jury is still out on that if the current subsidy scheme we have will be replaced by something else next year. we do not have any details yet so i cannot really comment on that. in italy there is a bending test pending labor reform -- pending labor reform, but also to soon to call in terms of what the effects on the italian market would be. manus: let's revisit. i am always fascinated to know how tight the u.s. market is. i want to know about the wage pressure in the united states of

america. can you give me any complexion about where the wage pressures are? where in the spectrum of workers are you seeing it? always the least in white-collar jobs. we see some automation affects in repetitive white-collar jobs. inflation,, 2%-3% very much regionalized in the southeast. there is a lot of pressure in the southeast. northeast, so it's also a to sectors.imited we have had this question repeatedly. it has some affect but in general it's overestimated in our growth numbers. probably is 1% of the current five growth -- 5% growth we see in our business might be related to wage pressure. it's always tough to do comparisons there.

nejra: i just want to ask about any potential impact of the trade war, trade conflicts that we have seen globally. is that having any impact at all on the staffing and recruitment market? jacques: yes, it has an effect on automotive's. you might have seen some big automotive suppliers coming out with some profit warnings in recent months. those are clients of hours, certainly in germany, where you see the growth going down. that is for 75% related to this automotive sector. there is uncertainty both on the trade war but also on legislation regarding these -- diesel engines, which is not clear. manus: ok, thank you so much for being with us this morning. that is jacques van den broek, the ceo at randstad. let's look at some of the stocks that you should be watching this morning. we broke the gam numbers at the

start of the show. andlondon bureau chief annmarie hordern looking at the numbers. this is all about one particular fund that was at gam and it's the big cause of fun flow out of gam. >> the impact from the suspension of table -- tim heywood, he was suspended after alleged violations of internal controls. the full impact of that was bare today.-- laid money -- also hold pulled money from other funds. the chairman has reiterated that they are looking at all options. we have reported that they may

be up for sale. meanwhile, aarie, french company cut its forecast. >> they work with things like data centers and cybersecurity. they say their revenue is closer to 1%. the ceo, a one-time finance minister in france, weighed in on the current economic environment globally and he was syngenta's aides it to become more uncertain and challenging. -- he was saying -- he expects the market to become more uncertain and challenging. manus: this is a payments company, software, hardware, payment processor. they have guided the market in 2018 that they expected to make 545 million euros. 510-545.

that is the very latest. viewer cut in the ebitda from the company. this is bloomberg. ♪

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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. manus: these are today's top stories. words asia we zooms the selloff. -- resumes the selloff. the saudi summit loses its swagger. president trump says he is not satisfied. we are live in riyadh with the latest. china slowdown. growth/is it chinese forecast but confirms the global outlook.

good morning. we are under an hour away from the european equity market open. costa coffeee of to coca-cola, investors and analysts have been looking at the hotel business, shorts have been targeting it. the first half revenue 1.0 8 billion pounds. adjusted pretax at 269.6 million pounds for whitbread. that is another headline coming through. in the macro space we have data coming through from germany, pvi specifically year on year, 3.2%, the expectation was 3%. it was expected they would be a softening.

the month onn month, ppo numbers, the expectation 0.3 and gained from the prior reading. manus: a little bit of , anglo-american and their copper production. some numbers from the full-year production guidance, raising the employee's production to 5.1 up to 5.2. anglo american on the copper side remains unchanged. anglo-american platinum comes out, third quarter total production 9000 ounces and the guidance remains unchanged. full-yearican sees diamond production at the higher end of the range. have you been busy buying diamonds, that is what i want to know. i am a copper-aluminum kind of guy, i leave the diamonds to you. nejra: i am waiting for you to

buy me diamonds. where are their presents for joining me on the show? the msci asia-pacific index on the bear market, closing down 2.7%. days of gains-- danes o that we could see a weaker open weeurope again by more than saw yesterday. we closed lower by .41%, dax futures leading the losses down and thec 40 with .9 ftse future firmly in negative territory. lower.tures alone -- are the nasdaq gained but futures are all lower. it is risk off in these equity markets. money where's the flow of ? the risk off mood in the market, could it be tapping out or , moving to the

upside? that is the question. you have treasuries at the bottom and rising prices by 20 pips. want a bit of protection? , the btp in the middle of the board, you're looking at, let's take that off. that looks a little strange. let me tell you what the btp's are at the moment for september. this is what we have here, btp's this morning are trading down by 40 points, it is that time of the day, we swipe it across your speaking, we will be to the italian prime minister. make sure you make a date in your diary for this. speaking to bloomberg. here, being pressed by the league to ask russia to buy up -- by italian debt.

this is one of the latest headlines that has come across. did the league press conference get buzz -- russia to buy their debt? the stabilization from moody's to come through but it is about the politics. you have the french chipping in conti saying it is not as bad as that but the pressure is .n in terms of the btp's juliette saly is standing by. we are seeing red across the asian pack region getting very close to bear market territory on the msci asia-pacific index. about two points away from that. the nikkei has closed out the session down by 2.7%, a lot to do with yen strength. austria coming -- closing out by 1% but it is weakness you are seeing so the biggest jump in more than two years in this

markets not enough to be sustained after a strong two-day rally. we are seeing investors coming in and about of the stocks. also worth noting the korean ko spi and the won is one of the worst performing currencies in asia. it is a dollar strength story. i'm looking at the euro japanese yen and you have seen that break through the 129 handle, a traitor telling bloomberg this is due to macro sales and stocks in the market being triggered. the aussie dollar at multiyear lows getting toward the lowest level of 2018 against the u.s. dollar on this dollar strength and weakness coming through in commodity markets. we're watching the indonesian rupiah which is weaker against the dollar ahead on the rate decision. i of indonesia not expecting to move its rate, the key rate of 5.75%. saly inuliette singapore, thank you so much.

we are asking the question on equities that can last after the government's latest maneuver after two days of more than 4% in chinese equities, losses in china but across asia. , andt in touch with mliv to that question, give our team something to think about, start a conversation. let's get the bloomberg first word news. the turkish leader is expected to address parliament about the murder at the saudi consulate at 11:45 a.m. local time, 9:45 a.m. in london. evidenceaims to have that the washington post columnist was tortured and dismembered by saudi assassins who flew in on private jets. president donald trump says the u.s. will cut off foreign a to guatemala, honduras, and el

salvador as thousands of migrants continue to march toward the u.s. border. trump has sought to escalate undocumented immigration as an issue ahead of pivotal midterm elections on november 6. blaming the so-called caravan on democrats. of overseas aid can be withheld on corruption or immigration concerns. and brazil, the latest opinion captainow a former army holding a 57-47% lead over his rival days before the second round of residential votes. the separate survey shows he is dominating social media with his name being mentioned three times more frequently on a series of platform that had dad. it is not how many were positive or negative. another step in china's project to bring home -- bring hong kong into its bosom is complete and connecting with the

mainland. $15 billion 34 mile bridge which chinois says is the longest cone mainland. will open for traffic 9:00 a.m. on wednesday morning. it will carry 29,000 cars and trucks each day between the mainland and hong kong. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you. president trump is turning up the heat on saudi arabia saying he is not satisfied with the kingdom's explanation of what happened to the journalist jamal khashoggi. mnuchin meets the crown prince in riyadh to discuss the death of the saudi critic. reports that the cia director is having -- heading to turkey to

investigate what happened. cohost on the middle east, you are on the ground in riyadh. good to see you this morning. the latest on the jamaal khashoggi investigation. you mentioned deliberations between the treasury secretary and the saudi crown prince. we do not have a readout as to what was discussed. we know the broad parameters. the death of the saudi combating just -- journalism and collaboration trade but nothing beyond that. there is more calls for clarity and a lack of clarity that is being delivered. merit --consistent narrative but the turkish version is different from the saudi version. who has beenogan meeting to get back into the game in terms of the balance of power, could he play a trump card in the coming hours, that

is the coming question. ground, the future investment initiative is still going to go ahead, it kicked off moments ago and we understand that they are still going to be signing deals, the organizers insist that 120 speakers have been gathered here and that will be an interesting thing to see because we understood a lot of these key speakers, the business titans from hsbc to credit suisse and so on, they have pulled out and the conference serves as a key platform for the ideas in this part of the world, a lot of the vision that saudi arabia is trying to sell to the world so the success or failure of this conference will be essential for the saudi story, for a very long time. markets so far have taken this in stride after a selloff last week. "daybreak: middle east" cohost, thank you.

china stocks have returned to their losing ways a day after despite more efforts by the pboc to stem the route in one of the world's worst performing equity markets. we are asking the question on in life, is there a flaw for china's equities that can last after the government's latest maneuvers? great to have you with us. great that we can ask you this mliv question so is there a flaw for chinese equities? louise: as you mentioned, the at that level up and they will try to take some of the steam out as we see these markets going lower. whether there is an actual level that people are heading toward, it would depend on the other more broader market trends happening. manus: a very good day to you,

, i am behind on my technology, let's have a look at the chart. we are a smidge away from being in the bear market. this am us crept up on me this morning. whatdid the chinese do, impact will they have on msci asia, is it going to bolster the case or is it as bank of america suasion only moral works in the short term? louise: what we have seen in the last couple of days, we have seen a rally that has taken of some of the headwinds but at the same time, it is a strong environment for the u.s., and i think as that continues, we will struggle to see the rest of asia coming up against that strong dollar and shorter-term weakness. thea: manus asked about

index, let's take this global as well. i have a chart here on my bloomberg showing the big rally that we saw in china shares failed to boost the wider market, the shanghai stock exchange and composite and msci all country world index here. why are we seeing that, i do not want to see decoupling but slight separation between china and the rest of the world, do china's equity markets not equityso much to level markets? louise: with china there is the ability to prop up and make currency changes so there is going to be a certain amount of decoupling. at the same stage, china leads the rest of asia as well. is it perhaps assigned to come? a sign to come? fade: the dollar might next year but for the moment, it is on a splendid run. highs of 2018.

i would juncture in your mind does the strength of the dollar hurt the u.s. equity story if at all? can hurt the market, but as long as we continue to see the earnings coming out and for this earnings season where we are three quarters of the way through, we are seeing companies benefiting from that and the other big thing that you have not touched on yet is the trade war. how those tariffs are going to have an impact and perhaps he more of an impact on some of those more capital goods companies than the currency itself. fora: u.s. stocks heading the worst fourth-quarter since the 2008 crisis and morgan stanley am a goldman is saying that stock rally in the u.s. is starting to look a little bit iffy. is it? will alwaysle mention when we are at these

highs that where does it go from here, can it go any higher, are we starting to see a selloff question mark we saw some changes in sentiment and we are seeing extreme valuations. at the same time, it is important to be diversified. you don't want to miss the end of that eight cycle when there are companies outperforming when you get that sustained rally. old late cycle trade. stay with us. we have more to talk about. from hermes investment management. a conversation with one of the biggest european retail landlords. this week.up these are the role calls of the executives that will speak to us and the bloomberg team. and ubs'sank's cfo ceo delivers strategy to the market. this is bloomberg. ♪

manus: let's take a quick check on some of the stocks we are tracking this morning here at bloomberg. the fund manager is set to open by 5% lower. was related toit sentiment where we saw tim hayward's suspension, the fourth quarter outlook will be a challenge for the industry. you have a little bit of buyout. nejra: these shares are called lower after a year failed to persuade a judge to set aside a jury furnished in the first over allegations that it's round of weedkiller causes cancer. the judge said the damages should be cut to $78.6 million from $289 million. bayer is one we will be watching.

the judge saying damages must be reduced but not set aside. and ams also called lower, this to do with fourth-quarter guidance disappointing the market. you're almost in a bear market. let's see how the rest of the markets are set to play this morning. you have msci asia-pacific almost in a bear market, dollar offeringlso, the pboc additional funds to private companies to help them in regards to their share pledges. you have stephen gallo the wants 6.9 26.98, hero wants to be in the forward and you have the oil market, you have new york crude below $70 for the fourth session, atentories have been rising the fastest pace since 2017. oil is coming a little bit lower. the s&p's are looking a little bit frisky. you talked about the

euro stoxx 50a, futures down and u.s. futures after all three benchmarks lower after a bit of a divergence. the nasdaq gaining yesterday. risk off on the table for equities. theid see the btp yields, 10 year yield dropping and steady yesterday, the bond spread on a 311 handle. manus: let's get to one of our big stories. reporting revenue for the first nine months of 2018. one billion euros up 2% compared with one year earlier. joining me now is the chairman clipier. executive of squeezing rents higher and filling spaces, what is the key to your ability to squeeze

the retail market in such a way, good morning and welcome. the question is are, announce our footprint in europe and that is what we are doing at klepierre. at [inaudible] they are very attractive. than 20 shipping sections. there is [indiscernible] to join us and we have been a builder in that environment to grow the rent by 3.1%. good yearnother every for us. very attractive moves

across europe is what you talk about. good morning. how muchattracted by etson.hamm are you still keen to acquire assets and the u.k.? we tried to engage and they refused. that is a story of the past. we are focused on our portfolio and we have a strong organic growth going forward. we focused on that. it from that take that you are no longer interested in any talk about organic growth and takeovers are off the agenda? c: for the time being, yes. we are [inaudible]

two reinvest in our shipping centers. nejra: what strategies are you implementing to keep more thriving if you are focusing on organic growth? jean-marc: the fundamental of our business is to be in a good location. ofare growing in terms population, this is number one and the number two is the places we own have to be places where people not only come for shipping but they come for shipping, meeting, and connecting. we are doing a little bit more theeting to increase footprint and to give a reason for the customers to join us. well done on the numbers

and the strategy. chairman and chief executive over at klepierre. chineseings us to the and when they go shopping, chinese equities, this is what we are asking, has china built the floor on these stocks, the view from a number of contributors have suggested that moral suasion can only last for long. it'd not last year elong. the markets are under pressure. geopolitics in china at play. nejra: a did not and when we saw the rally in china, that did not translate into global equities but now that we see losses in agree markets in asia, you could see it in europe and the u.s. so investors seem to have a

negative bias over these last couple of days. the fyi offend and saudi arabia has begun, several companies including bloomberg pulled out of this event as media partners. this is bloomberg. ♪

anna: welcome to bloomberg markets, the european open. we are live from our head in the city of london. stock marketay's respite was short-lived and the pendulum has swung back to the red. asian markets are down one to 2%, european stocks are set to open lower. the equity trade is less than 30 -- minutesy area away. ♪ anna: