>> good morning from bloomberg's unit of that european headquarters in the city of london. i am an edwards. stock turbulence. asia struggles to prevent wall street tech slide. industries largest global alliance is in term i'll. best is in turmoil. -- is in turmoil. and may fence off brexit turmoil for now. off brexit turmoil for now. >> we will keep our options open. our pressure is on the thernment not accepting

deal that theresa may has brought back. anna: good morning, everybody. this is daybreak europe. continuing from the united states into asia. that is leading the msci red.pacific 1% to the there has been a broad selloff. a couple of reasons. some specific to apple and the iphone and expert haitians as to whether we will see continued levels of sales and there is also the general concern around regulation in the sector. and the trade tensions. could they weigh on this sector? lead to trade and

another downturn in the equity markets? we saw the big equity benchmark in the united states down by more than one play 5% in yesterday session. nasdaq futures suggest they will be down again. certainly, the focus is on tech. and also on autos. nissanpe, renault and taking the edge off of things. the pound is pretty stable at this hour. may at the cbs today addressing business and getting businesses to support her brexit plan and so far, not facing a leadership challenge. something coming up later in programming, we will be speaking exclusively to the vice chancellor of germany. let us check in with the bigger

picture story and the details on the asian equity trading day. juliette saly has that for us and she joins us from singapore. wreck herdingtech asian stocks today. down 1%. a lot of the weakness coming through in hong kong, the hang seng has woken through a key level. luxury watch retailers falling on china's demand worries. and cryptocurrency players under pressure as well. asxng a look at the asx -- 200. the aussie dollar is fairly steady. the rba commenting that they could see unemployment fall further. the big watches the nikkei in japan. that is have a look at some of the stocks. you mentioned the auto industry. this is where we are seeing a

lot of the pain coming through. 5.5% today. up renault -- the bloomberg opinion columnist says this has the hallmark of a palace coup. mitsubishi in tokyo down almost 7%. looking at the tech route, tencent playing into things -- down about 3.5%. anna: thank you very much. asking ourre question of the day on the market slide blog. which us that will see the largest reaction to a u.s.-china trade surprise? do you think we will get a surprise? and in which direction will it be? you can join the discussion.

us get a bloomberg first word news update. anticipated revolt against u.k. prime minister theresa may appears to be running out of steam with her reach as yet to threshold for a leadership challenge. 20 -- the 48 threshold has proved to be wide of mark. carney appears at the u.k. parliament later today with brexit likely to dominate questions. in an exclusive interview, anna edwards asked jeremy corbyn if the chairman was right to describe a corbyn government and a hard brexit as armageddon. got a pretty vivid sense of imagination.

but i think you should read something a bit more positive in the future. no deal.want a i want a deal and a society that will work for all. i am not comfortable living in a -- ety >> these on them it's a bc shares have -- nissan and mrs. bc shares have fallen. -- mitsubishi shares have fallen. underreported income and misuse of assets and he has been removed from the board. the committee will look into the structure of nissan's alliance with renault and mitsubishi. >> it is too early to speak about the facts since i do not have additional details but the french state as a shareholder will be extremely vigilant about the alliance.

as well as the stability necessary for all of the employees of the group. i want to say to them that the state as a shareholder will ensure all of the support. billions of dollars worth of deals during a trip to manila. arrivalese president's ises as the president worried about the country accepting chinese cash. due tomes grade -- the simmering u.s. china trade tensions. the reserve bank of india has called a truce with the president. the r.b.i. will form a panel to consider transferring funds to the government after a board meeting that lasted more than nine hours. the sides have been sparring for weeks about how much capital the country needs and how difficult

the lending should be. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. tech stocks plunge leading a route in global stocks. all major u.s. benchmarks were down 1.5% yesterday. the nasdaq dropped 3%. on the concern that the trade war wilson -- will disrupt supply chains. bitcoin fell through the $5,000 level for the first time since october 2017. joining us for the latest is our asian equities reporter from singapore. good to have you with us. let us put this in context to understand where we are in the market. what has prompted these losses? markets were already dealing

with trade war losses. there were hopes that at the a deal would be stock -- struck. on top of that, we have a tech selloff, another one in the u.s. to destination markets. it all started with concerns about --. there were concerned that apple .as slashed production on top of that, if you look at apple suppliers, a lot of them have gone ahead and been disappointed in urging -- in earnings. total, that is affecting the earnings front. on the valuation, you have in china.en concerns

these things are weighing a lot on tech stocks. tech is an important sector. 2008, this bull run since two thousand nine. if the sector goes down further, there are more declines in the offing. anna: the major assembler for apple -- the shares in that business are at a five-year it low. you mentioned the valuations and the role that these have played in the bull market. what will happen? with theis flirting bear market territory. asia has already suffered a lot. market -- asng

have emerging markets. the u.s. is near the correction territory. market remaining to enter into that zone. if the tech route can's -- continues, there could be more declines. you have to look at what is happening with oil. we have seen some fed officials on going past the neutral rate and oil has fallen 25% from the top. that is an important factor that will support markets at lower levels. investorsum factor -- may prefer valuable growth. markets may find a bottom but tech may not be the sector to leader from there. anna: thank you very much for joining us.

with the latest on the markets. with us here on set. very good to have you with us. let us start with the overall sentiment. we are seeing some -- something quite significant. will this linger? of aan: it is all part general story of global economic slowdown together with some asset deflation taking place. as your previous speaker was saying. we have to at this process altogether. i would say that the credit markets and the emerging markets fangs werear and the already at the center of speculation. anna: where is the center of your concern? around the tech stocks? credit? talking about how u.s. politicians are looking at the credit market or parts of it

drawing parallels to what has gone there -- to what has gone on their in recent years. believe theon't correction will be a catalyst to a serious economic downturn. what happens in the credit markets does have the potential to turn slow down into recession and worse than that. that is where one has to look. look at the highly leveraged areas of the u.s. corporate sector, private equity, and back to the emerging markets. these are key areas. when we look at private consumption which has been strong in the united states this year, what many investors do not realize is that it has been tied to credit and particularly the booming lending market. anna: and the house builders. u.s. house builders are feeling less optimistic about the

market. this is the gauge that we use. it is falling. you would not expect anything different with interest rates on the rise and the u.s. brendan: i do not think they are the key. the momentum of credit deterioration and tech stock downturn can continue even though interest rates at this point stabilize or even come down a bit. anna: how many hikes will we get? brendan: after december, i do not expect any at all. every time you get a greenspan , and the fed pulls back, sometimes that gives a lift to the markets but sometimes it does not. .e may be in a late cycle anna: we may be near the end of the hiking cycle. thank you very much.

brandon brown from mufg securities. later today, more on the fed and the market route, we speak to the ceo of morgan stanley. james gorman. that conversation is at 5:30 p.m. london time. this is bloomberg. ♪

anna: welcome back. this is bloomberg: daybreak europe. this is a shot of tokyo for you. the nikkei 225 down by more than 1%. technology and the technology route are factors. , nochinese equities stranger to this phenomenon. concerned around technology and trade. flatter thislittle morning.

pretty stable. theresa may pitching to hold off any leadership challenge. we will beggesting weaker again in today's trading session. let us get a bloomberg business flash. here is deborah marr -- debra mao from hong kong. general has agreed to a fine forto pay violating u.s. sanctions. the bank agreed to hand over a similar sum and that was to terminate to other cases involving bribery and rate rigging claims. the payments are substantially lower than the $9 billion paid by bnp paribas four years ago. apple shares have fallen close to bear market territory on concerns that consumers are no longer clamoring for its cornerstone product, the iphone. a record high on october 3 and

the stock has climbed almost 20% as multiple suppliers have indicated that the company is cutting orders for the iphones. they can still make revenue by charging more hurt device. -- more per device. israeli officials have criticized airbnb's decision to stop renting out homes in jewish settlements on the occupied west bank. the company says it is removing 200 home and room rentals in the region. critics have long accused of airbnb profiting from rentals in illegal jewish outposts. that is your bloomberg business flash. anna: thank you, very much. biggest industries alliance has been thrown into turmoil by an arrest. on removingll vote him as chairman after he was detained in tokyo.

this arrest is the latest blow in an already tough you are for automakers. the worst-performing sector in europe. what is the latest? what do we know about the next steps in this growing scandal? would be whatep him in this current status. he could he held up to 23 days which is a very long time for a case like this. so far today, we have not heard anything from prosecutors or the police on that question. there are a number of other questions that have been leaked out to local media. nhk had abroadcasts, little item that one person has as theentified

whistleblower that initiated the investigation. did not initiate this themselves. it was brought to them from an internal investigation and started by a whistleblower in the legal department of the company. he has been given some sort of deal with prosecutors in exchange for his testimony. anna: what does this mean for the world's largest auto alliance? is the alliance in doubt? many have said it has been held together by this man. itsit is not even in distribution of benefits. >> in terms of industry impact, that is where the questions are centering. whether this can survive without him. he put it together in the first place. when you think about his role in a lying renault with nissan, he

is the only individual capable of answering every question about that alliance. he is the authority that can mediate among three very strong automakers that have their own very strong traditions and interests in such an alliance. it would be very difficult to replace a person like that. at the same time, the commercial logic for this alliance remains. we are looking at a global onustry that is running alliance is now. a lot of the biggest carmakers are reaching out to their rivals to form alliances in order to get ahead of the curve in the technological battle for things like autonomous driving, electric vehicles. it is a very competitive atmosphere where these alliances are crucial. this is a big question going ahead -- whether they will be able to stay together. anna: what does this mean for

the underlying performances of the businesses? will it have a material impact? >> there could be a very big impact. depend one questions the individual companies. for nissan, they would be less dependent on the alliance with the other to automakers should that fall apart. he has not in running in nissan for quite some time. even if they lost his leadership, they would not that it would not have a huge impact. renault would have it more tough. some analysts though have been calling on renault to sell its stake anywhere. difficult to tell at this stage what the impact would be on the operation of these individual businesses it least in the medium term. anna: thank you so much for joining us. onset, brendan brown from mufg securities. youave a chart here to show

the share prices of these european autos. fire,ctor has been under caught in the crosshairs of the trade tensions. when you look at trade, is it autos that were you or technology? brendan: i think of the relationship between trade tensions and currencies. back to yesterday with all of the news. think that in the next stage of the trade drama particularly in the united states versus china, current sees are going to come into the conversation. and i would have thought that any serious part of a truce in the u.s.-china conflict would involve trying to push the chinese currency up. anna: let me ask you some more questions about that.

surprise -- will it be a truce or something scarier? brendan: the juice is the most likely -- the truce is the most likely outcome. i think we will see a series of truces. in terms of asset classes that game, it will be the end. china-u.s. deal is going to involve getting the yen up. brendan, thank you very much. brendan brown will stay with us on the program. up, my exclusive interview with the uk's opposition labor party leader, jeremy corbyn who says he wants to keep a second referendum open as an option. highlights from that conversation coming up.

and one voice that has yet to be this debate, mark carney. he has not been able to speak much since we heard about the brexit deal. what will he had to say today to lawmakers? this is bloomberg. ♪ [ phone rings ] what?!

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anna: good morning, everybody, this is daybreak europe. the equity session in full swing. the msci asia-pacific is down by just shy of 1%. with what up-to-date is going on with these markets around the world. is emily horton. what are you looking at in the indian and asian markets today? areespite the fact that we off, may i use the term "hunky-dory" for a market?

indian currencies are trading very well. even in today's session, there is a 25 point uptick. equity markets are celebrating. you can see on the charts that the rupee is up about 0.5%. the truce between the central bank and the government yesterday only helped the case. good going all around. you're looking at a fairly decent outing for equities. you may use the phrase "hunky-dory." does that flow into indian etf's? we have seen the flow into indian etf's in the last four months. is this a sign of things to come? the chart on your screen is

showing the first sign of inflows coming in after a really long. oh. that is one indication. is a direct inflow into indian stocks and it has been on the rise. that is a welcome change from what we have seen in the last three or four months. one certainly hopes that this is a sign of things to come. anna: ok, stay with us. let us bring in rate into the conversation. >> anything but hunky-dory. there is anxious and is growing in the market. this shows us the swings. you can see -- this is the highest since the february meltdown whether it is risks arising due to trade wars. one silver lining.

it is still in negative territory and below zero. it is still doing better than normal though from the past two years. in the tech world, apple -- look at this charge. apple is flirting with bear market territory. dropping since its high on october 3. we do see chipmakers around the world in europe and asia due to reductions in part supplies -- apple has also cut orders from chinese competitors. the msci asia-pacific index is also under pressure. anna: thank you both very much. let us get the bloomberg first word update. the anticipated revolt

against u.k. prime minister theresa may appears to be running out of steam with her opponents having get to reach the threshold for a leadership challenge. speculations that the 48 threshold was close to being met have proved to be wider the mark. bank of england mark carney appears in the u.k. parliament later today with brexit likely to dominate lawmakers questions. nissan and mitsubishi motors shares have fallen after the u.s. is pursuing allegations. leader under the reported income and is set to be removed by the board. it committee will look into the structure of nissan's alliance with renault and mitsubishi. i would have all of the necessary discussions with the people that are in charge and we will make decisions as soon as possible to ensure stability and

long-term vision for both renault and nissan. >> confidence among u.s. homebuilders has plummeted are the most since 2014. the national association of home to 60, theopped lowest level since august, 2016. with thehas to do cooling housing market. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. anna: thank you very much. let us turn to our exclusive interview. i spoke with jeremy corbyn about his view regarding the current brexit deal and whether he supports a second brexit deal. >> we will keep our options

open. our pressure now is on the government not to accept the deal that theresa may has brought back. we will vote against it in parliament if it comes up in its current form. anna: on what conditions would you support a second referendum? >> we will come to that when we know what is happening with this deal first. the priority first is a deal. the government cannot command a majority in the house of commons. you ask yourself the question -- isn't it time to have an election so people can decide who runs the country? anna: on the subject of the deal, there seems to be quite a lot that fits the test. a future relationship that envisions quite close ties with europe. why not back the deal? put us ines it do but a customs arrangement for several years that we have no

say over it whatsoever and we can only leave with the permission of the eu. anna: she says that as a backstop that no one intends to use. >> why is it there then? it also does not deal with the question of northern ireland. what it does is say the border will be an open one but where is the border going to go? it does not meet those tests. mps whoat about labor may decide that it is in the interest to back it. we set down the tests and we do not believe the deal meets the tests. tobelieve it is our duty hold the government to account and we will vote against it. i believe all labor mps will

understand that and i believe the parliamentary party will vote against of the deal. anna: you expect no rebels? toi expect all labor mps agree with this decision. forcing the government to accept that this deal is not acceptable. anna: she says there is no time -- that it is this deal or no deal. in a halfve had to years to negotiate something and they have not and now telling us there is no time -- i simply say to them, this deal is unacceptable. go back with the message from the house of commons that this is the kind of arrangement that we want for the future. i believe there is a majority support for that. and we have spent a lot of time talking to people all over europe in the last two years, we made clear that the kind of relationship we want -- and we have not sent the equivalent of

liam fox around the world. we can cut wages and conditions. no. we said something much more positive. anna: it does sound like this could take us closer to no deal. would you be prepared for that turmoil? is that a price worth paying? >> we will demand a deal with the european union that protects jobs and living standards. anna: they say there is no other deal. >> they are bound to say that, aren't they? the eu has a history of doing that. anna: that was our exclusive interview with jeremy corbyn. ,ticking with the brexit theme germany and france has privately warned that eu. fears thatxpressed the block is giving too much away and the charge to get a deal.

negotiators are finalizing a document which eu officials are set to approve at a summit on sunday. maria, great to get your insight this morning. we were expecting to get the document soon on the future relationships. but it looks like there are still a number of issues unsolved. what is the state of play? maria: we were hoping to get the document but there are still a number of issues including the transition period. there is some mismatch between the u.k. and the european union. european union says 2022. andreessen may said yesterday that she wants it before the general election. and the declaration -- how all-encompassing do they wanted to get. mentioned that what we see is germany and france are saying

that we should not give away too much. and the bottom line is that theresa may should not claim victory when it comes to brexit. thehave to see this in context of the european elections of 2019. they want to send a clear it is much that better to be in the european union and if you don't like all of it, it is better to leave. the feeling we are getting in brussels is that it is the opposite. they want to send a clear message that the u.k. would be much better staying in the eu than leaving. and the focus is on whether it can get through parliament in early december. but before we get to that point, the eu 27 has to approve the deal. could there be a veto before sunday? this is unexpected.

in the language we heard yesterday from the spanish quite toughster was quite and took everyone by surprise. he said nothing is agreed until everything is a great. no surprise that spain has said for many years that gibraltar should be treated differently. they do not think it has been made clear or clear enough. spain says it does not want to use the word "veto." they say that if it is not tweaked to buy sunday a motion not take place. i think the significance of this is this is the first time we have seen a big state come out saying that they do not like how this has been done and we do not agree. until now, it had been the opposite. they had managed to stay closely united. much maria, thank you very

for joining us from brussels with the latest on the eu twice seven perspective on brexit. and what we should be looking out for. carney- at 9:45, mark will discuss the latest u.k. inflation report. home30 p.m., u.s. new construction will be released. in thatical live sentiment data that was negative yesterday. and later today, italy's biggest utility company will present its plan. our guest,back to brendan brown from mufg securities waiting patiently. you were listening to my conversation with jeremy corbyn. from him what this will mean for u.k. assets. assetsek, we saw u.k.

take a tumble when a no deal brexit looked to be more likely. some analysts were raising the possibility of a jeremy corbyn premiership. what do you attribute last week's selloff to? brendan: there are two scenarios emerging. of anythingscenario like this deal getting through is going to be quite add for u.k. assets medium-term week as it will go along with a hammer drink of support for the conservative party from its nationalist working-class base. they will view this as a sellout. and this would increase the chance of a labor, a far left labor government in the u.k. the best scenario is a new leader coming in to power in the conservative party who would say, enough is enough. france, germany, and brussels

have demanded impossible terms from the u.k. and we will have a clean brexit on the wto basis. that we need a year to get there. and that could mean a big election victory for nationalist wave -- for a nationalist wave. corbyn primeuld a minister government mean? brendan: high taxes and a corbyn government would not get any sort of relationship or deal. seen as really likely to fail in that. and given a u.s. deal is crucial, that is something frightening. theresa may was talking about the proximity of europe and therefore it is a natural in terms of trade and so it remains

important. but you put it on a choice -- being on the u.s. side or the european side. in strategic terms it is. if britain is going to move away from europe, it will not exist as an offshore island. it has to ally itself with the u.s. and in turn, with the u.s. in alliance with the u.k., the chances of getting a better deal with europe become all the greater. which is more concerning, corbyn or a no deal brexit? brendan: a no deal brexit. that would be the best outcome. anna: and the pound, how much risk is there to the pound? is aan: governor carney

big currency manipulator. at this point of the business cycle, with unemployment low and wages going up, the u.k. should be at the same level as the united states. anna: he would say he is fighting inflation. brendan: mark carney has aligned u.k. monetary policy with the ecb and the currency manipulation. anna: we have a question from a viewer saying if this does not get through parliament, do you see the chance of the question being asked of the people -- or brexit at deal, all. brendan: a conservative leader might do a no deal and arrange a transitional period. anna: thank you very much, brendan brown. coming up later, we speak exclusively with the vice chancellor of germany. that conversation after 10:30

a.m. u.k. time. an interesting perspective to get. and you can listen to bloomberg in the london area on the radio. this is bloomberg. ♪

anna: good morning, everybody. this is daybreak europe. breaking news coming from the energy sector in italy. cash flow improvement. they see an adjusted net at 4.8 billion. updated guidance coming through from the management. later today, we will be hearing from the ceo. he will be joining the team to talk about the business, the oil price, and much beyond. let us continue our conversation around commodities. it has been a tough year for metals.

outlook remains uncertain ahead of a likely meeting between donald trump and the chinese president on the sidelines of the summit next week. joining us now is olivia markham. from blackrock. good to have you with us. what you expect from a trade war conversation? do you have to make assumptions about that before assessing where you think prices will go with metals? olivia: it has dumb -- it has dominated the commodities space since the summer. the market has priced in a very bearish scenario. copper prices. it is really going to be key for trade negotiations, the g20, it clear focus point. for us, we are looking at what is happening on the ground. and it is reasonably solid. anna: this is some of the

background -- these are some of the background factors that could influence a price. here we have inventories coming down and you say there are things in the background that will cause things to be oversold? olivia: at the end of the day, it is supply and demand that influence price. demands from companies remain strong. price looked like it had moved to far. an interesting comparison between the financially traded commodities and those that are not. like iron ore and coal. they have been remarkably stable. anna: what does that tell you? is it being expressed in the welch baited commodity prices? olivia: look at the futures markets.

liquidatione a big from the beginning of the year. this is all about sentiment. people are concerned about what future demands might look like. we are focused on what we are seeing on the ground right now and what is china's response to the trade wars. -- is it sensible to position for weaker commodity prices as a result? olivia: look at what china is doing. one of the key area of weaknesses has been infrastructure spending. had been growing at double-digit levels for the last decade and it has turned negative this year. the government is aware of this. they are aware of the need to manage the economy. started tolready increase infrastructure spending again. this is something we are

watching because it is such a major component. anna: it was negative but it should turn positive? olivia: we have artie seen -- we had negative -- we have already seen a strong month. anna: every time we have spoken recently to your colleague, we have talked about discipline in the sector. mining companies and the big shareholders wanting them to remain disciplined in terms of capex. olivia: we hope that remains. we have seen a real change in capital allocation. today are spending substantially less capex in the cycle and they are being very focused on maintaining strong balance sheets. and also returning the profits to shareholders from dividends.

anna: we started the conversation talking about global trade. we have expectations for some news flows from the meeting between donald trump and the chinese president. -- whichve to conclude assets will we be looking at? olivia: copper tends to be the bellwether. the most traded. we expect to see the biggest change there. anna: thank you so much, olivia. olivia markham, portfolio manager at blackrock. ceo in, we speak to a his wrist conversation of the day. we will get numbers from easyjet and how they are preparing for brexit. do they have any operational concerns or are they more concerned about weakness in the pound? and what that will do for

affordability for u.k. households taking trip abroad. we will look m&a in the sector. a lot to discuss. this is bloomberg. ♪

♪ anna: good morning from bloomberg's european headquarters in london. these are today's top stories. stock turbulence. wallstruggles to fight off street technologies slide. putting the oil industry's largest global alliance in turmoil. the renault board plans to meet today. tory rebels failed to secure a no-confidence vote, but what about a brexit rerun? jeremy corbyn says he does not rule it out. >> we will keep our options open. our pressure now is on the government not to accept the

deal that theresa may has brought back. ♪ anna: good morning, everybody. just turned 7:00 in london, one minute into trading on some of these european futures. let's get to the ftse futures. they suggest we are up by 0.2%. tax futures also suggesting we will be a little bit weaker at the start of the trading day. we are factoring in. the tech sector. . yesterday in the united states we had the nasdaq down by more than 3%. the technology sector coming home to roost right now. out all with their market territory. nearingcern -- apple bear market territory.

is it about a broadening or deepening of trade concerns? we are talking about technology and the interconnected supply chains. is that going to be something we worry about as we go through this year? that is certainly something we are focusing on. i should say that u.s. th futures suggest we could be weaker at the start of the trading day. we continue to watch the ongoing story in italy. we see a little diversion's and the divergence of things between the u.s. futures at bond futures in germany. italian futurist certainly a bigger move coming through in italy and we continue to watch that tension between rome and brussels. easyjet giving us their numbers. full-year revenue, 5.9 billion pounds, the estimate was for 5.85. the dividend per share has come in about estimates on the 118.3.d basic cps

ps 118.3. airlines have taken a beating this year as brexit concerns, profitability concerns have weighed on stock sentiment. earnings test to talk about earnings and the broader picture for aviation -- to talk about earnings and the broader picture for aviation, we are lungren. johan can you tell me about the resilience of easyjet to the various headwinds we see for the sector? how confident for the future are you? johan: yes, good morning. it has certainly been a fantastic year for easyjet, particularly in the backdrop of some of the difficulties that a number of airlines have had in 2018. are actually a

record profit if you exclude the transaction we have been involved with with air berlin. we had a breaking -- a record number of passengers, a 10% increase, so it's been a really good year. anna: it's been a good year. what does the oil price lead you to believe about the future? that has been concern about rising oil prices and recently we have seen oil prices coming off almost as quickly as they rose. is this going to be something that continues to guide capacity in the sector? what is the impact. -- impact? johan: it gives volatility in the sector, but i think it's different from different airlines. from an easyjet perspective, we're quite well hedged, meaning we have certainty over the cost in the years to come as well. there are a lot of airlines out there who don't have the balance sheet i cannot afford to hedge, which means when they get cost increases, that's going to hit them.

i think that weaker airlines will find it more difficult to compete when there is volatility within the market -- fx market. anna: let me ask you about brexit. where do your concerns like in regards to brexit -- lie in regards to brexit? johan: we have been preparing for brexit the past two years. i think that we have also looked at every possible scenario, whether that is a deal scenario, whether that is a no deal scenario, we feel confident in the plan that we have done, that even in the event of a no deal -- as late as last week the european commission was proposing measurements that would protect --. that was also reciprocated by the u.k. government. based on those statements i am confident that it will continue

post march 29. anna: is a big risk, the weakness in the pound and what that does suspending power when they go abroad. johan: it's the same with the -- it'she same as it is the same with the pound as it is with the fuel. those hedges are there to minimize the volatility and concern over the cost. as you said earlier, it would definitely have an effect on the weaker players in the aviation market, that's for sure. anna: you are not concerned about the operations around the end of march, beginning of april next year, but are your customers concerned? tell us about bookings, in particular for that crucial easter time. are there signs that because of brexit some customers are deciding to stay home? johan: actually not. we are going to lunch and announce-- launch and our update on trading for the

air. we slightly ahead of bookings coming into the h-2. of course we will to have certainty and clarity over what the future will be. like i said, we feel confident that flying will continue, partly because the preparations we have done in easyjet, and partly because of the statement that i said that both the eu and u.k. have said that traffic rights will be protected, even in the event of a no deal. k, some no reason to suspect that the christmas-new year time, no reason to suggest that he will underperform because of brexit? of thathere is no signs at the moment. it would be good to get clarity and certainty around as time moves on. from easyjet perspective we feel confident that flying will remain and continue uninterrupted because of the things i talked earlier about.

anna: let me ask you about era air italia. are you working with others might take the long call assets? johan: we have resubmitted our air est in parts of italia. there are three things then he to happen if we were to go ahead and do any transaction. it needs to strategically make sense for us. it's no secret we are interested in shorter operations, and in europe. the commercial terms clearly have to be there as well, but also operationally we need to be able to manage what we take on. if those three things happen, and if they are aligned with what we can do and what we want to achieve, it would be interesting for us, but there no update to get on the situation specifically about air italia at the moment. anna:.

thank you so much. . that was the ceo of easyjet. casino, the indebted grocery retailer announcing a new cfo. up-to-date onyou any share price reduction we see from that of the morning. let's check in on the market action in asia with juliette saly in singapore. juliette: not very good news today. we have seen a raft affect went on asian stocks -- went on asian on asian weighing stocks. watches on concerns of slowing chinese demand. iron ore futures also lower on concerns of slowing demand. 2% inong is off by about late trade. tencent really went on that index, and japan's market hit by what we have seen from nissan and mitsubishi motors. 0.4%.x 200 off by

unemployment, which is at a six-year low already, could jump even further. a very strong shine coming from the indian rupee at a two-month high. this is as we start to see a lot of those concerns about reserves their easing. we have been watching the yen fairly steady at -- versus the dollar at the moment. the thai baht extending its losses against the dollar. we had a gdp print coming out of thailand and they have a central bank decision coming up, and weaker thangrowth what was expected to come in. anna: thank you very much, juliette saly in singapore. trade tensions clearly one of -- at across once at the market -- a cross winds that the markets are having to deal with.

which assets will see the largest reaction to a u.s. trade surprise? and trumpesident xi to meet later on. what kind of market -- reaction could we get from markets? let's get the bloomberg first word news update in dubai with deadly humphreys. the anticipated revolt against u.k. prime minister theresa may appears to be running out of steam. with her opponents yet to reach that threshold for a leadership challenge. more than 20 tory lawmakers have declared they want made to go -- theresa may to go. meanwhile, bangkok england appears -- mark carney later today. nissan and mitsubishi motors shares have fallen in asia.

there were allegedly violations of japanese financial lot. income wassays underreported and assets were misused. he also says a committee will look into the structure of nissan alliance with renault and mitsubishi. >> is too early to speak about the facts, since i don't have additional details, but the french state as a shareholder will be extremely vigilant about its ability and alliance with the renault group, as well as the stability of all the employees in the group. the state as a shareholder will ensure all of its support. jinping is expected to seal billions of dollars worth of deals in a trip to manila. and marks the first state visit to the philippines in 13 years and comes as the country's president shrugs off u.s. warnings about accepting chinese cash. history takes on greater significance as it comes shortly

after the apec summit ended without a joint statement for the first time due to simmering u.s.-china trade tensions. apple shares have fallen close to bear market territory on concerns consumers are no longer clamoring for its cornerstone product, the iphone. since closing at a record high on october 3, the stock has plunged almost 20%, as multiple suppliers indicated the company is cutting parts orders for the latest iphone. the company can still generate revenue growth by charging more per device, and increasing the amount of digital music, movies, and other services. theon stocks completed unsold homes surged by almost half this year as brexit uncertainty and affordability issues dog the housing market. the number in the capital jumped to more than 2300 units since the end of september, the most on record, from fewer than 1600

at the end of 2017. rpydon haveand crie the most. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. program,ing up on the my exclusive with jeremy corbyn. he says he wants to keep a second referendum open as an option, does not seem to be a priority for him about would be sick to say. highlights from that -- safe to say. highlights from that coming up and we also speak to james gorman at 5:30 p.m. london time. this is bloomberg. ♪

♪ anna: -- >> i would say when we have the downturn, it will be an issue of continuity, cohesiveness. i think europe will have a greater amount of challenge, because they don't have the common fiscal policy, they don't have unity within the countries, you don't have unity between the countries, and they have big structural issues, so i would say that europe we would be the most -- anna: that was ray dalio speaking exclusively to bury rittels. barry we our 40 minutes or so from the start of it european trading day. the weakness in the asian session very much a tech story.

of a kind of expectations and should trump meets -- what kind of expectations should we have for trump meets xi? futures in europe suggest weakness. the trade concerns and the tech tantrum seem to be continuing into european powers. the revolt against the uk's prime minister seems to be faltering with the threshold to trigger a vote of no-confidence still not having been reached, however one tory rebels said it is best to wait until the parliamentary vote to make a move. i asked the u.k. labour party leader, jeremy corbyn, about what he would plan to do if he were in government. exchangeirman of atlas , it was said that a hard brexit would be armageddon. i asked jeremy corbyn what he made of those comments. >> he's got a pretty vivid sense

of imagination, but i think he should read something in the more positive in the future. i don't want to -- a no deal, i want a deal, and i want a society that works for all. i'm comfortable living in a society where the united nations tell us that are 14 million inple living in syria poverty. anna: jeremy corbyn, the leader of the u.k. opposition party. joining mouth is the ceo of ort.eg, shaun p your base case, talking to jeremy corbyn, he says a second referendum is on the table, but there are many things he wants to get through before that becomes anything like a sounded.ty, it you think this deal will get through parliament but you think it will take a few iterations? shaun: i think with the deadline

looming it will really focus my. it is possibly -- minds. it is possible theresa may will get a small concession, but then it will go back to parliament and eventually get past. a hard brexit is not palatable and there is no time to vote on a second referendum before the 29th of march. i think the most likely outcome is that it gets through on the second try. anna: to think the material decision-making has been done already? so and really there is no alternative. the gilt markets are particularly ball title -- particularly volatile. anna: let me ask you about the gilt market. out of are getting equities in terms -- times of turmoil, that might be a haven in gilt markets. shaun: short-term versus

long-term, short-term deals might get you a good save haven for a couple of weeks. if you get a deal done, gilts are massively overvalued. tips give us some inflation protection. i would stay away from gilts. when you do get a deal gilts are going to look really overvalued. anna: what are the parts of the u.s. equity space you would die into if we see the writing -- get into if we see the writing on the wall for a deal been passed? shaun: uk's small. i think you need to see -- u.k. small mid-caps. within cable and sterling will rally strongly on a deal. i would not start buying u.k. assets now. if there is a hard brexit or second referendum still in the cards, you would have particularly difficult outcomes for those assets. anna: you mentioned tips in the

united states. that means you are concerned about inflation. is that because you don't think the fed is going to-of? --un: i think you see that going to hike enough? shaun: the trend is still up generally, wage growth is up. we don't want to buy the nominal treasury. who want to own some degree of inflation protection from the u.s. to give us a good hedge against brexit. ana: what about currency, as investor with a weakness in the pound. shaun: as we expect it -- if we expect a soft brexit, you need to be hedging. where are to protect our clients assets -- we are working to protect our clients assets. they would really suffer in the event of it soft brexit. anna: what do you make of the

tech selloff we have seen? last night the nasdaq down by 3%. the nasdaq futures down 0.7%. do you expect this tech tantrum to continue? shaun: i do. i think sentiments some as they completely -- sentiment has been completely destroyed. it will take confidence a well to come back -- while to come back. the underlying cause is this trade tension. anna: this is a broader story than just whether apple is going to sell enough iphones. this is about trade? shaun: this is clearly about trade. these valuations now are actually quite reasonable valuations for technology. it does not look like overvaluation tech. anna: we have a question of the day which asks which assets are

set to show their biggest reaction to a u.s.-china trade surprise? what do you think? shaun: i think it depends on your risk tolerance, but clearly the biggest is chinese equities. next would be the nasdaq tech after the recent selloff. anna: thank you very much for joining us. good to hear from you today. nutmeg --, the ceo of cio of nutmeg. this is a picture across the equity markets in asia, the hang seng specifically. nasdaq futures looking weaker. a lot of concern in the asian session around technology. we saw one of the supplies to apple, one of the component assembler's to apple falling to a five-year low. that was one of the headlines

best anatomy in the asian session, and that is certainly an ongoing concern around apple, but also the tie up with trade as well. let's check in on was trending across the bloomberg universe. you ivanka trump used a private -- you ivanka trump -- ivanka trump used a private email account while transitioning into government. the challenge for a leadership contest has not been reached to challenge theresa may. for headwaters dalio -- bridgewater's dalio sees low concerns. tech stocks fall, leading the u.s. selloff, so a host of great stories to catch up with on the bloomberg. we will be speaking exclusively with the vice chancellor and finance minister of germany. he will be joining us for a conversation just after 10:30 a.m. u.k. time.

the trade tensions, interest between juncker and trump. ow much does orlov schulz -- laf scholz count on that to get the future -- guide the future? this is bloomberg. ♪

♪good morning and welcome to anna: "bloomberg markets: european open.". i'm live from our european headquarters in london. ♪ stocks in asia decline after apple and facebook drag down wall street. european equity futures point to a lower open. quelling the rebellion. tory rebels failed to secure a no-confidence vote. says hee, jeremy corbyn is not ruling out a second brexit referendum. >>