>> good morning. nejra.rrative rich -- manus: these are the top stories. worst month for global equities in six years. zuckerberg leads facebook shares out of the red. and we speak to the santander cfo this hour.

manus: you you feel a sense of relief? a tortured set of data from china. we are seeing that delivered in the aussie dollar. double punch, really. the worst pmi's in 16 months. you are seeing this contraction in the exports. cpi did not help them. yuan, we did make a 21 month low. this is something they have not done in many years. three years. this is the pboc may be trying to stop -- i put the indian rupee in there. you are seeing a split between

the r.b.i. and the government. the government pushing the central bank in terms of liquidity. , a little bit of breaking news coming through. nejra: clarion, we have these numbers. $765 million. a slight miss on estimate of 1.6 3 billion. billionth sales, 4.9 9 swiss francs. clarion confirming its 2018 outlook rich shares down 20% year to date. let me move on and talk about takeda. for your operating income coming in at ¥268.9 billion. -- it sees26

full-year net income, ¥189 billion. outlook, four year dividend at ¥188. estimate when it comes to that. those are some of the lines coming through. let me take you through what i am looking at. the indian rupee, fascinating. i have got the dollar here, it has hit its highest since may, 2017. 1200 on the bloomberg dollar --. equities the big story, even though we get the mess on the tie am -- on the china pmi. it makes you wonder what investors are buying. interestingly, with the s&p 500, it went above 1% and pulled back twice but did end of the session higher.

as did the nasdaq. perhaps this rally has a little umph left in the gains. selling off in the treasuries, the 10 year yield up to basis points. -- two basis point. manus: they are going to delay the results. a reason to be optimistic in terms of orders and cash for airbus. we are waiting for a number from them. is what we areos expecting to read that will be a doubling of their adjusted -- compared to last year. as i get those numbers, i will bring them to you. just one line so far on the more a. -- nomura. tough times, volatility will

hopefully help his investment bank. you have a loss of ¥11.2 billion. the retail side of the business. the fixed income side. the bank of japan relaxing control, in the summer.

asia. yvonne man has more on the markets rallying.

>> a lot of earnings coming through. mazda, connecting operating income. that is going to weigh on the stocks tomorrow. earnings taking a hit from the drop in u.s. car sales. broader markets, trading off weaker numbers. the biggest drop in eight months for manufacturing pmi. perhaps this has been priced in when it comes to chinese stocks. you are seeing the likes of the nikkei up 2% and hang seng up 1%. large caps, up 1.3%. kospi, rebounding just slightly. interesting, ending a tricky october. the worst month for global equities in six years. earnings you broke this time yesterday. sony and nintendo, the easy way to explain this, they delivered playstation 4 bank.

earnings coming through here the last couple of hours, third quarter, able to squeeze out more growth in asia. petrochina delivering as well. the biggest gain in a month for petrochina. calling it a massive heat. -- beat. manus: let's get you more. the mobile operator, they are canceling their share buybacks. quite a dramatic announcement. they are considering canceling their share buyback. they were set to buy back up to 600 billion yen- worth of shares. they have given guidance, a full

year of guidance, which is something the market will focus on more. the guidance 990, they said it would be over 1.0. the buyback that is quite probably going to impact. what a feast of breaking news and it is not even thursday. nejra: i know. equities front and center. we are seeing this rally in asia. the u.s. session was interesting. the s&p 500 pulling back of gains of 1% twice, before finally ending higher. volatility, the name of the game. how much conviction is there in this rally? today we are asking the question, what scares you the most about the markets? you can join the debate. on your bloomberg. let's get the first word news with debra mao. an official gaze at china's

economy showing manufacturing numbers continuing to worsen in october. to 50.2 caning fell be lower than economists were forecasting. manufacturing pmi also worse. businesses getting increasingly nervous about the u.k. government's ability to pull off a brexit deal. optimism slumped in october to the lowest level this year according to a survey published by lloyds bank. the drop was felt in almost all of the country, across large and small companies. a separate work showed consumer confidence falling in october -- report showed consumer confidence falling in october.

jamie dimon says investors shunning me saudi arabia conference accomplished nothing. he said business with the gulf nation continue. is, if was -- the issue the event took place, we do not an investment, conference we could not be seeing condoning that behavior. says the lion air jet that crashed monday may have been found. the armed forces chief says they have identified the possible c boyd -- seabed location. crash involving the boeing 730 78. cockpit recording suggest the pilots faced a problem almost immediately.

this is bloomberg. manus: thank you. fresh evidence the pain of the trade tensions, what are they really causing? pmi falling to 50.2, the weakest reading and more than two years. a close to the worst month for global stocks in more than six years. of royals, the cio asset management. when you look at the drawdown on stocks, has a got the potential to get worse? or is it just a reminder nothing stays up forever? >> it is probably a combination of the two. i saw you in the summer, looking through my notes. you were talking about our expectation markets have run. we have been steadily taking

risk off all year. that reality has come to pass. for me it has been driven by a change in the discount rate assumptions. is raising reserve rates in the u.s.. that is our, risk-free rate we used to try risk premiums for asset. we have seen a wake-up that the cost of capital is going up. why is it happening? u.s. economy is strong. trump tax reforms have turned to come through. that is why earnings were stronger than anticipated. guidance weaker in areas. we have justink -- turned to see the first signs of evidence of that trade issue between china and the u.s..

the market is waking up and saying that could be an anchor for next year. we are seeing a rally in asia. everybody is searching for the bottom. what will tell you we have definitely reach the bottom and we are part of a sustained rally? been doing this a long time and i am humble enough to say you never want to call the bottom. markets are based on fundamentals. they can get overstretched in the short-term and correct in the short term. as part of royal london, we have what we call a fear index. index atly, our fear its fifth highest level since 1990. this is the kind of fear we saw back in the financial crisis, 2008. the greek issue, 2011.

the china growth story. we are in unusual story. do some ofrted to that this october, we are probably a little early. generally speaking, the reason for doing that, as we have seen fundamentals coming through, the message is positive out of the u.s.. the message from corporate's has been more positive. there was a question asked about the technology sector. for some investors -- manus: hold some of those thoughts. we will talk about the fear barometer and technology shortly. us.guest to stays with coming up, newsfeed outcome of videoin. -- newsfeed out, in. the zuckerberg said opportunity will be better.

they are buying those stories for now. tune into bloomberg radio, live on your mobile device. this is bloomberg -- tune into your mobile device. this is bloomberg. ♪

>> barclays u.k. have a great quarter. >> this is a historic moment .verybody wants to be a part of manus: let's show you what is coming through. tragic data from china, ugly. don't get carried away. on thethe worst routs s&p 500. the shanghai composite up. are the authorities going to do more to assist? stopping the rot.

three-month to one-year bills. how is your dollar looking? nejra: i am looking at the rupee. getting hit today. investors see that widening out. worst performing currency against the dollar in this russian. treasuries, 10 year yield up a bit. butight see brent higher heading for a monthly loss, the biggest since 2016. let's get the number business flash with their from owl in hong kong. charter says they are benefiting from growth in asia and bringing costs under control. actually dropped by 1%. despite global trade tensions, isndard charter says it

cautiously optimistic on global growth. facebook gained hanley trading iser mark zuckerberg said he betting on video, not the famous newsfeed. he worried advertisers are not lead and saidto 2019 will be another year of significant investment. we are also heavily investing in ar and the are as well as hardware for bringing people closer together like portals for video presence, oculus quest. with all of this ahead, i expect 2019 to be another year a significant investment. >> that is your bloomberg business flash. technology, let's talk

about facebook. they look who's -- is david coombs. what did investors focus on? the revenue number has traditionally been the focus and that was up 33%. that is a healthy figure, even a robust figure by normal standards. used tos have been spectacular growth. they are maintaining their position. zuckerberg is mark hitting on for future growth? the goal is to boost engagement on the network. there are a lot of competitors, young people, a lot of them are using instagram and snapchat.

tap a bits trying to of that engagement. get more users to spend more time posting more videos and curating their own lives on facebook, to bring back the growth. nejra: thank you so much. our bloomberg news reporter. of royal london asset management. the nasdaq 100, full quality -- pull a totally has been surging. -- volatility has been surging. is it time for that to turn around? >> short-term the answer is right. the previous session, we were talking about the fear index. those things are in the oversold territory. q3, it comesust back to fundamentals. q3 results have been good.

the markets new that already. it is the future we are looking to. facebook was an interesting contrast. having disappointed us in the summer. they rallied quite sharply into expectations. has a slight relief it is not worse than we expected. there is a structural question about facebook how it captures the next generation. my children have no interest in facebook. they are more interested in instagram and other things. what mark is doing successfully recognizing he has to talk to different demographics. interesting, a good year for returns. he said investment. what he is saying is i have to reinvest in the business to sustain that growth. ande is a lot of optimism

growth priced into this company. the question is how much you have to invest to monetize the opportunity. manus: we have 50 seconds for you to answer this. $175 billion of market cap. what is different between this in 1999-2000? >> these businesses actually generate cash today and that is important. i put up a chart looking at how overvalued in 2000, 2001. they were leaving the nasdaq charge that did not generate any sort of cash whatsoever. the only one still there is microsoft. totally changing names. they do actually generate cash now. up to 25 times seems historic by -- hi by historic measures not outrageous. nejra: the bank of japan stands

hat. the king of easing says they will much heat the inflation target for years to come. this is bloomberg. ♪

manus: live shots of tokyo. dollar-yen, the yen a little lower. we are waiting for mr. kuroda speak. japan's inflation target, it is going to be at least 2021 until they make that target. i wonder if he will refer to qe? nejra: let's get back to the earnings. headline, third quarter business net. 2.3 billion euros. a comfortable beat on the third quarter business net.