to sign a big portion of the china deal. we will call it phase one, but it is a big torsion. -- big portion. tracy: mark cudmore joins me now tracy: this is "bloomberg from singapore. daybreak: middle east." u.s. stocks hit a record high i am going to embarrass you, six months ago we discussed how you and solid earnings boost were turning bearish on the s&p 500, and fast-forward today and sentiment. we have the s&p 500 closing at a record. mario draghi hands over the what is going on? reigns of the ecb to christine mark: that is completely fair. lagarde and makes one final plea if you had asked many people six for better fiscal policy across months ago on april 30 when we the eurozone. were on a sign of signing the china deal, i do not know how we boris johnson fails again in his bid to trigger an election in the u.k. are as head of schedule. will he have any luck when he people said the trade talks gives it another shot later today? would collapse and we would have more tariffs. the boeing ceo is set to admit we would have a collapse in global data and earnings the plane maker may design

mistakes on the grounded. slashed. where will the s&p trade? we will have the latest. been told 3% higher, you would have laughed. what is bizarre is the trajectory of the economic data and the u.s.-china trade talks. it is 9:00 a.m. across the the trajectory of earnings has gone according to plan. emirates, 1:00 p.m. in hong either something massive is missing, and i have yet to find but i think this kong. i am tracy alloway, this is "bloomberg daybreak: middle east ." manus: i am manus cranny. week will be the moment where if we cannot identify what we are missing, the bears must capitulate because we have catalysts lined up. this is where wall street meets politics meets investment. there is the jobs data friday, somewhat say the big opportunities. still companies -- some would say the big opportunities. to report earnings. tracy: you write on the mliv in politics, we have steve mnuchin, jared kushner, and a blog that this is crunch week for the bears. man close to politics and talk to us about what is most business joining me shortly,

anthony scaramucci. likely to lend a hand to the what will he say about the bear case? current administration? what will knock some of the risk joins me dmitriev appetite we have seen recently? there are three obvious later. you have dollars to spend, where do you want to put them to work. tracy: the mooch meets manus. ones. cycle isaintain their let's check in on the markets. a midcycle sequence of cuts, and this should be the last one. a running theme through our coverage is this backup in the market is still pricing in more cuts for next year. global bond yields. take a look at what is going on bondthe government chinese the fed will maintain that line, this is a midcycle insurance cut and the economy is ok, then there will be a repricing higher , up five basis points the past couple of days. people are scratching their in rates and i do not think heads as to what is going on and whether the pboc will add equity markets will like that. about how yields liquidity to the market. it did not do so today, but it could inject longer term adjusting higher, and we are seeing that. liquidity tomorrow. if they go, we are wrong and the it is not just the china story, u.s. treasuries trading near economy is screwed and we need to cut more, that will not help their highs of the year. german bond yields the least the market because rate cuts are priced already. negative since july. the other is the jobs data for

friday, the third below 90 k world stock of negative this year. yielding debt is at its smallest since july. that is the first time since risk appetite for me returning to the market. 2010, so we are coming back to the worst jobs market since the last crisis. is it justified? will it be justified by the data out of the u.s. and the fmoc the consumer will be hit more in the u.s. meeting. the third is in the middle of let's get more from hong earnings season, the individual beat theee we have kong. what is the latest? david: we are coming out of the guidance and by those stocks. lunch break, that is the weak then we get the secondary effect see earnings spot across the asia-pacific. declining, and the stocks are making less. that is not the world that an ipo in hong kong in the first incentivizes equity inflows. once we get near the end of the quarter, and hong kong activist equity earnings season, the biggest names will have running for election. reported, and those can be the that is leading to weakness. catalysts for the bears. have a look at the other part of fory: what would it take the market story, a move up in you to change your mind on your bearish thesis?

global yields. new zealand is up 11 basis if we got an amazing jobs number points. friday, would you reconsider australia, 10 basis points. your positioning? i think a couple of south korean currency is leading the strength across emerging-market fx today. things, first of all, i have said they level from the top tracy: how are the indian side. markets faring? even if the fundamentals have indonesia is reacting to rate not changed, i am wrong. i highlighted the s&p at the closing level, so we are getting cuts. close to those levels where i can say, i was wrong on this markets are doing ok, 0.6% trade. higher. on terms of the reports this week, the jobs data is most for highing out likely to show we get a slowdown. with modi.ple along amazonee facebook and and apple completely below expectations, that might make me we will also be there at the reconsider. summit, and people are looking that would mean three of the five biggest stocks will have at aramco. beaten, and maybe i was wrong all of those things to be watched out for. that earnings will not come down

as much as i thought. thank you so much for if the fed can manage a perfect line this week that sees that update. equities trade higher and , alltors have enough money let's check in on the first word headlines. of those catalysts might play boris johnson will try again out this week. if equities can survive this tuesday to get parliament to , that is the kind of point allow an earlier election. he failed monday to get the majority needed to push it where bears have to say, we are through. johnson says he will submit a wrong, let's step aside. tracy: the stakes are high for similar legislation and propose a date for the election, and the bears this week, and for will need a single majority to mark had more. be approved. earlier monday, the u.k. -- mark cudmore. eliminates extension thank you. the possibility of a no deal exit this week. take a listen to the podcast from a few weeks ago, he lays it the house of representatives will take its first note out. thursday. next, future investment inquirying impeachment initiative in riyadh where manus of president trump. will speak to former white house can indication's director republicans say the process is anthony scaramucci, the mooch. illegitimate. it will be the first chance for

all house members to be on record. this is bloomberg. ♪ admits the plane on theay design mistakes 737 max 8. he will testify in front of the senate commerce committee tuesday. learnedts the lessons will make aircraft safer in the future. theimony coincides with one-year anniversary of the lion air crash which killed 181 people. benjamin netanyahu says his country has been targeted by iran. he says they can hit any target in the middle east with a goal of hitting israel. in a meeting with steven mnuchin in jerusalem, he claimed tehran wanted to set up missile operations in iraq and syria. global news, 24 hours a day on

air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. tracy: thank you so much. president trump says the u.s. is reiterating it may be made in a summit in november. he said parts of the text have been basicallyprobably to be ahe

manus: it is "daybreak europe live." we are at the gathering of money in politics. joining me now is anthony scaramucci. the mooch meets manus. we could syndicate this. let's get right to it. you made some statements in the trump fromventing being reelected. have you raised money? there are 11 swing states. since i made those statements, i have been traveling in two swing states a week. i was in ohio and michigan, then pennsylvania and florida. i am putting a pac together, we are announcing that and the fund-raising for early january. manus: what do you think you can

raise? anthony: a couple of million dollars, i'm not going crazy. this is surgical. we have to go into swing states and explain to voters have damaging the policies are, and how damaging the personality is. i am excited about that. i think you saw at the world ago thatme two nights the president is living in a bubble, and when he comes out of the bubble, he will realize a lot of people do not like the personality. i will be working on that very hard going into the next eight to nine months. manus: from the democrats side, we see warren speaking up. do you think she or biden will be the contender for the democrats? anthony: i think it is unclear still. dean was therd

front runner, hot at the moment. five weeks after that, december lost the iowa caucuses and john kerry. the nomination. it is difficult to see who it will be right now. i am a republican and i am imploring my democratic friends pick somebody rational, centrist, who has the capability to understand the economy. this nonsense about socialism and universal health care is not going to help anybody, and it will plummet the global economy. -- a: our markets democratic victory -- anthony: i do not see the markets are forcing anything other than the status quo at this second. i do think there is a risk

premium as a result of donald trump. trade uncertainty, unpredictability, strategy, the general push on the federal reserve. market participants are not in love with that. a combination has raised risk premiums. is in our most defensive position. the company is 15 years old this march, and we are in our most defensive position in the past 15 years. if the market goes down 30%, we will get hit by 3%. not cash, mostly structured credit, loans, real estate, syndicated loans, trust for securities from community banks. i feel we are late in the cycle,

heavy deficit spending, uncertainty about trade, is not impossible we have a situation where we get a recession 12 to 24 months out from here. we are preparing ourselves and our clients. manus: rick perry said impeachment is going to go away within six months. what do you make of that? anthony: i say the opposite of that. i saw secretary perry last night. ishink the president imperiled. i made a prediction in august that i will stay with, that he will not be the republican nominee come november. i do not think it will be possible given the lawlessness that has taken place and the widespread nature of the testimony, unless the united states will accept that certain people are above the law. i predict united states is not

ready for that. manus: do you really think there is a risk that the senate will go against trump? because i believe there is a tremendous amount of information that has not come out yet. once it comes out, that will be a water wall of lawlessness from the president, that will force people to remove him from office. what do you know that we have not found out? anthony: let me put it to you this way, he had one call with zelensky. we saw eight transcript that was transmuted, not the most definitive transcript. my rhetorical question to my friends, do you think that is the only call he had of that he waser the three years in the white house? i am certain that is not the case, and inside that super secure server is more damaging information. you are saying the president's

bullying style is weakening, and people, myself included do not care what he is saying. have a purple heart recipient about to testify. he will talk about that call. where is the, whistleblower, these were people in the room. they heard the call. it is not just that call. there are many other things, and there is a fitness issue as well . if you are in the military or congress, you have to ask yourself honestly, will i put my partnership and my political self-interest ahead of the country? those are very real issues, and we will discover more in a step-by-step trust us. there is the argument from the other side that the democrats

should be more focused on challenging trump at the ballot box. is that a fair criticism? anthony: i do not think so. if you look at the facts of the situation, lawless activity has happened. there has been a breach of the constitution. a responsible citizen, and you believe in a check and balance system, and nobody is above the law, they have to pursue this. inus: let's get your view terms of saudi arabia. how does u.s. business view saudi arabia at the moment? anthony: i think we are constructive. our feeling about saudi arabia is that there is a process of reform taking place. however jagged that has been, there is a process.

there has been ajax it reform, there are things people are concerned by. by and large, americans like myself are very optimistic about the forward relationship that haveaudi community will with the united states and the rest of the world. it is demonstrated at an event like this, but also on social issues. , have a lot of clients here and i am a fan of saudi arabia. manus: what is your number now? andony: template $4 billion we are about to launch new products. if you stay out of politics, your assets go up. if you are in politics, your

assets go down. although i will continue to share my opinion. you in thell see halls as we go by. mooch.sage -- tehe iscy: i do not know what going on. manus and the m. ooch. catch up on past interviews as well as dive into securities or bloomberg functions we talk about. you can become part of the conversation by sending us instant messages. that is for bloomberg subscribers only. you can check it out at tv . this is bloomberg. ♪

tracy: let's check in on how the markets are doing. at a recordclosed on monday evening, and that led

momentum into the asia pacific region. .urrently up not doingollar index much of anything, same thing for the u.s. 10 year yield. a lot of investors in wait and see mode ahead of the fmoc meeting. event risklot of this week. up next, we go live to the future investment initiative in riyadh where manus will be speaking to kirill a. dmitriev. this is bloomberg. ♪

tracy: you are looking at live pictures of midtown manhattan. u.s. equity futures losing a little momentum we saw in the trading -- asia trading session.

ornwhile, the big outperform outperformer closest to its highest level in 11 months. we are also talking about potential golden cross formation in the topics index. let's check in on the first word headlines. prime minister benjamin netanyahu weighed in on the killing of the islamic state leader. he spoke during a joint news conference in jerusalem with visiting u.s. treasury secretary steven mnuchin. >> it was a tremendous achievement.

>> steven mnuchin pledged to increase sanctions against iran. chilean president fired eight members of his cabinet following 10 days of riots and protests. the ministers were all dismissed. he named a younger and more centrist team to replace them. they heard the message from protesters that they want a more fair and inclusive society. a top pentagon adviser argues that u.s. restrictions on recruitment in information sharing is counterproductive. he spoke at stanford university causing -- calling for access to china's top scientists.

ban on individual travel could see the number of visitors fall for the first time since 2003. the number traveling to the septembernged 46% in according to data from taiwan's tourism bureau. global news, 24 hours a day on air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. david: thank you. equity markets are losing some momentum as we go into the later part of the session. about hong kong, seeing some weakness there. be as farcontinues to

as macro funds, rising yields and a backing up of the u.s. dollar. sense of the asia-pacific, textbook risk appetite when you get cyclicals outperforming. you have rotation within the sectors. though, because of what is happening in the u.s. and to a lesser extent japan, it has pulled the index at its highest level since 2019. we approach what some consider overbought terrain. we have seen quite a bit of the rally here. tracy: we have a fifth of the to report today. what are we watching? david: several names.

we are talking pork, why group -- wh group. here is your percentage gain. citi is saying 17% from where the stock is currently trading at on the back of good earnings. it is not just a corporate story. the company is in a very good position to take it vantage of those macro trends. manus: david, thank you. we are at the future investments initiative in riyadh. this is kirill a. dmitriev, ceo, russian direct investment fund. welcome to bloomberg. good to see

the world is the killing of the isis leader. russia, why do you doubt the americans have killed him? kirill: i am an expert on the economy, but i can't say if this really did happen, it is an example of russian-u.s. cooperation that can lead to better terrorism fighting and other things. there is a lot of information exchange leading up to this event, and we will see if it really happened. continue and the u.s. to work together, great things will happen. manus: the u.s. politically in the region is going home. does that create bigger opportunities for putting more capital to work in the region? kirill: i think the u.s. remains a strategic partner for the saudi's, but russia is definitely increasing its presence in the region. partnerships and

are doing a lot of investments. relationsvement of between russia and saudi arabia of howeat example geopolitical progress can be made. we have about $3 billion invested. manus: where can you see that going to? kirill: infrastructure and technology in russia. economyhelp the saudi and the great for them outside of saudi arabia. there is a prospect that you were hoping for upwards of $10 billion in investment. it is about $2 billion. kirill: i think that is a wrong interpretation. russia has a surplus from the deal, we believe it is a great

deal and it stabilize the markets. it is an increase of the stability of oil markets. our oil companies can continue to work in a predictable manner. you ready to up your bid? kirill: we are great partners and they commit a lot of capital to the russian markets. we are looking at opportunities, but only time will tell how these investments will evolve. let's see how the situation evolves. saudi agricultural and livestock are looking at buying grain terminals in the black sea . kirill: it is a huge opportunity, and we have a great partnership.

russian wheat was forbidden to be imported to saudi arabia. we look for solid opportunities including agriculture and infrastructure. agriculture is one of the major pillars going forward. manus: the story about the terminal in the black sea is incorrect? kirill: we are looking to make many investments. manus: what about saudi aramco? are you ready to take a stake in aramco when it goes public? kirill: russian investors are keen to participate in the saudi aramco investment. russian banks would also like to participate. it is early to say because we need to understand the final parameters of the deal, but aramco is a great company that quickly recovered from the attacks. it is a great opportunity for

investment. seems the differentiation to be what mohammad bin salman wants, it is a big gap. kirill: we will see with the final conditions look like. we need to look at all of the details. the yields versus a dividend,ajor of 6% is a yield that matters in this investment story? kirill: it is also the opportunity to participate in the largest oil company in the world that has the cheapest reserves in the world and a lot of technology investment coming down the line. the broader story is aramco is unique opportunity, and i know lots of people are interested in it. manus: let's circle back to the , there aretionship

things that have not come to fruition. you have liquid natural gas , are youn the arctic closer to getting those deals confirmed? definitely, we have a great partner and expect to make investments around a billion dollars with other partners. they are looking at other petrochemical opportunities in russia. we signed an agreement with one of them a couple weeks ago, and we will do more because the partnership it is very important. biggesthat is the agreement made with mohammad bin salman? is this about real political differences put aside? kirill: that was the origin of the relationship.

it saudi arabia and russia made important decisions years ago which have left aside our differences on syria, and we are working out the issues to see if we can build more trust. by doing investments, we establish trust. aramcothe one story from is the major shift on the red sea. are you in talks to put any money into that development? kirill: definitely, and we expect russian tourists to go there, i have visited and we put tourists there. we worked with some of the largest companies in russia, and we are focused on five projects that we believe will be significant and bring a lot of russian tourists to saudi

arabia. five big successful projects. manus: the one thing saudi needs to work on, what would change the story for them? kirill: predictability and there are great people who believe in mohammad bin salman's performance. execution on the reform plan to make sure it really happens, and right now a lot of investors show we will see the difference in tourism and other sectors. manus: thank you very much. that is kirill a. dmitriev, ceo, russian direct investment fund. the conversations continue hear from riyadh. , the gentleman in charge

in this region, we will have a conversation about lebanon. this is bloomberg.

manus: 2019 future investment initiative, we are live from riyadh. we have the conversations. we might be talking about aramco, but there will be other conversations to be had. the imf has delivered their recent report. jihad azour, director middle east & central asia, international monetary fund joins me now. let's talk about saudi arabia. if i look at vision 2030, there were some key targets set for 2020. our chief economist has run andugh some of the fdi global competitiveness. they are not making the 2020 target, but they are going backwards.

this is a fairly damming indictment of vision 2030. it is i would say different from the way you are per trying it. reforms are gradually impacting the progress, and we expect growth over time. is one of thet and in in the world, support of the world bank. , it ise oil is volatile a challenging time. investing in talent and your opportunities is not something

that can be changed overnight. the progress that has been made is in the right direction. productivity will be important. opening new factories has to be good. investing in human capital, , andsifying the economy the private sector leading growth. manus: it will take time to deliver those reforms. we have announcement expected this week, do you think they are revising their budget deficit? we see it around 8%. jihad: we need to wait for that

to be announced. our condition was to gradually through fiscal conservation reduce the level of the budget deficit to reach the target to balance the budget. them gradually d-link fiscal management -- de-link fiscal management. more to thefting private sector through measures through financial inclusion. these are the right steps that will allow growth to be gradually up in a sustainable way. says 2.6% government for this year, everybody else says flat, including the imf. remain so think they

bullish? we have to separate between oil and nonoil sectors. the nonoil sector is dependent -- the opec agreement will be extended, or they will go back to normal production. uncertaintyot of related to oil prices. manus: is your base case that the opec agreement is expanding? it is that that agreement will end. manus: that will take saudi production back to where? --ad: back to previous manus: that is contrary to what people are saying, they expect opec to cut in november and in the door to next year -- and to

endure through next year. terms of trade, this region is at the most risk. how is that manifesting itself in terms of the data you look at? jihad: all global tensions are impacting the region, and we are projecting in 2019 growth will slow down. volatility in oil price has an impact on oil producing. the slowdown is much less than iran. we are days away from an

economic collapse -- do you share that assessment? jihad: i think he has to clarify his position. a strong package is needed to bring confidence back. confidence in the economy and the donor community. also to reignite the economy that has been suffering from low growth. has to address the imbalance. manus: thank you so much for joining us. that is jihad azour, director middle east & central asia, international monetary fund. more and more people are living in dual-career couple

relationships and trying to raise children, and achieve career goals which can be challenging. that is the view of jennifer professor, associate of organizational behavior at insead. she spoke to annmarie hordern about what corporations need to change in order to help. corporations are not addressing this well at the moment. we know it is the number one trend in the talent pool. more than two thirds of the workforce are working couples, and companies are on the back foot. what do they need to do? they need to understand the rise of this trend. there are two things going on underneath it. sarian is -- marrying i different. talent, the top

reality is the partner was not top talent and stayed home with a job on the side. that has changed. today is a company hires a top talent, it is almost certain to partner has the same ambition, educational level, and there is a good chance they may be higher on the talent pool. companies have not risen to this. they treat talent as somebody who will have a support crew behind them, but that is not the case anymore. once companies understand this, there is the question, what do we do about this? what i find is the issue with companies now, when they think about working partnerships, they think flexibility, these people want to work part-time. that is not the case. most people in working couples do not want huge changes to their jobs. they want marginal flexibility. they want the same hours, they have the same ambition, and want

to work as hard as anybody else but need flexibility at the margins. where and when i do the job, i need more wiggle room. annmarie: what kind of initiatives can companies do for this? theifer: it is not so much policy. we think about flexible working policies, we think of part-time working, or you can work from home two days a week, but that is not what we are talking about . we are talking about building marginal flexibility, moving the from the face time in office. we are living at a time with more technology than ever, and yet workers spend more hours in the office than ever. it is totally unnecessary. it is about how can we build whether it is

taking time out in the day and finishing in the evening. all these small pieces help working couples. annmarie: do you think because society but they let a burden on women to take care of the household, especially if there is children, have corporations addressed women in their work schedule? jennifer: if you look at the 45's, we see it is no different in the ambition levels between men and women or to invest in family. morenies need to look holistically and balancing those out for the women and men. the assumption we tend to have working, is mothers they de facto want to take time out. that is sadly not the case anymore. likewise, the assumption about men, they are willing to give everything to work. this is not the case.

companies need to shift their assumptions. annmarie: you have done interviews across industries and in countries, has it changed in different countries? are some getting better, or are they the same across the board? jennifer: it is pretty uniform. some cultures are ahead of the game when we think of the gender issue, but when it comes to couples and understanding the working couples issue, there are not many industries or countries ahead of the game. what is interesting across the world, the number of couples working and rising everywhere in every country, some are ahead of the curve. in terms of what society and companies are doing, there is not much progress anywhere. let's check in on where

markets are trading. it is a risk on session in asia, although some benchmark industries are losing momentum. msci asia-pacific index up nearly 0.5%, but a big portion is coming from japanese stocks. you can see a little risk off sentiment in the international benchmark price for crude oil, down about $.22 after russia's deputy energy minister said it was too early to talk about deeper opec cuts. s&p 500 futures treading water along with the benchmark 10 year yield. plenty to come on -- more to come on "bloomberg daybreak: middle east." ♪

♪ >> good morning from bloomberg's -- bloomberg's european head quarters in london. the s&p 500 hits on all-time high on encouraging trade talks

and positive corporate results, but it is not all sunshine, as cloud costs rain on alphabet's parade. bp's third-quarter profit is oil prices. no giving up. boris johnson will try to secure an election again today after the u.k. prime minister failed to trigger a snap poll for a third time. ♪ welcome to "bloomberg daybreak: europe." let's get a check on the markets. the s&p 500 hitting that all-time high yesterday partially on trade hopes and positive earnings momentum and the prospect of a fed rate cut this week. futures looked to be struggling for direction a little bit but we could at least hold onto that record. the 10 year yield has been gaining for five days. cable struggling for direction a little bit.

we saw some gains yesterday. we got the extension from the eu to january 31. what us boars -- what is boris johnson going to do now? 11.o-dollar back below 1. columbia threaded needle seeing the greenback heading towards parity with the euro. oil just a little weaker. pouring some cold water on the prospect of deeper opec plus cuts. joining us for the hour is marija veitmane, senior multi-asset strategist at state street. great to have you with us. the s&p 500 at another all-time high. does that concern you in terms of valuation? is the rally we have seen so far justified? marija: good morning. probably not. constructivequite on risk markets for most of this year. our story was about this

disconnect between pessimism in the bond market and interest rates going forever lower, even negative, yield curve, signaling recession. equity markets being stronger with corporate earnings being not fantastic but good, ok, or above. this disconnect allowed us to build a constructive case. if you take this chart very long, as long as you can, if interest rates are going lower, if inflation is going lower, stocks can rerate. we have equity multiples broadly in line with historical kind of long-term levels. so that is kind of ok. if we think there could be re-rating because we are going to a lower inflation rate, we have a bit of a margin. our numbers give us about 15% of

a margin. that is a discount we think the market puts on this kind of uncertainty, trade war. it is not a cyclical component. this component that the market puts to uncertainty and trade --, is the best way to participate in the rally? marija: good question. any of those three would be fantastic. short-term, i would say that if you think about this year, it is hard to find people who feel very happy and confident about this year. equity markets are almost 20% up, bond markets are almost 20% up, gold is up -- i mean, commodities. i would say, from my personal point of view, it's probably not a bad strategy to kind of protect your gains.

so maybe sell off some of your options. and by some options are extremely cheap, so not? -- why >> marija veitmane from state street stays with us. another delay to brexit after the eu agreed a flexible, three-month extension, something boris johnson did not want to ask for. 12was denied a december general election. anna edwards has been following developments in london and maria tadeo is in brussels. great to have you on the show. anna, maurice johnson saying he will try again today to get an election. what can he expect? anna: he was defeated yesterday but will be back today with a different methodology, different

strategy for getting an early election and potentially some different cooperation across the house. he lost yesterday's vote. he needed 2/3 of mp's. this tactic is a one line bill, a change of date to the next election. it has a very specific nature. it specifically mentions the day of the election, which might mean he will get more cross party support. the liberal democrats might come forward and support it as long as they are convinced there is no chance of no deal brexit in the meantime. they don't want to see the withdrawal agreement bill come back at any point while they are preparing for this election. this one line bill can be amendable. if others in parliament choose to put down amendments, it can then take on a fairly unpredictable path. we are heading towards an election, probably, possibly in december. >> what are the details of this

extension from the eu until january 31 that we should take note of, as well as simply the date? anna: -- maria: good morning. the eu is making it clear that they are not willing to renegotiate. they do not want to go back to the negotiating table. that is simply not going to happen. the only reason this extension is being granted is to provide enough time for u.k. parliament to ratify this deal. it really comes down to the u.k. parliament at this point. nothing is going to change on behalf of the eu. there is great frustration here. everybody is tired, exhausted. this story has been going on for almost three years. the eu feels that this time it is not different compared to the other times. they still see a huge gap between the u.k. government and u.k. parliament. they are betting and pinning their hopes on boris johnson and the fact that he is seen as a true brexiteer. if we do get that election, that

gap may actually become closer. in terms of the market, i think the only thing that changes is that it has become very apparent, very obvious that facing a make or break moment, both sides pervert -- prefer more time than a no deal brexit. >> this thursday, october 31, was the date brexit was supposed to happen. does that date have any importance? it will probably just to become halloween. it does look as if we are not going to see brexit happen this week. we even saw prime minister boris johnson yesterday in parliament after those words, no deal taken off the table. it was not clear if he was talking about a new strategy for the government or simply talking about this week. it was designed to give some confidence to others in the house that maybe they can go along with him in today's vote. interesting to look at how the government has stopped preparing

for no deal and stopped preparing for brexit on october 31. they stopped their project a yellow hummer preparations, or positive them -- yellow hammer preparations, or paused them. they will melt down commemorative pieces. they will not print anymore and meltdown the ones that exist already. >> anna edwards in london and maria tadeo in brussels, thank you both so much. let's get back to marija veitmane, senior multi-asset strategist at state street. when you talk to clients, we discussed that no deal risk has significantly receded. we have got the extension. are clients more tentative to invest in u.k. assets now? marija: unfortunately not. i think clients increasingly find a conversation about brexit as an interesting conversation. given the uncertainty, it is

almost like following a crime novel. they are interested to talk about it but people have absolutely very little confidence to do anything about it, particularly if you talk to equity investors. they want to look at underlying corporate fundamentals. i don't know what bp is doing, what hsbc is doing, but currency is overwriting tax returns in terms of overall performance. there is very little clarity, very little confidence on what is happening. it is interesting conversation. people are fascinated, but i am afraid the appetite to invest is diminishing. >> what about stocks, particularly in the mid-cap and small-cap sector that investors might have been staying away from because they got swept up in the general uncertainty? are stocks like that starting to attract attention perhaps now? marija: maybe a little bit more than others but still rarely.

i think people have very little confidence. it is a little like what maria was talking about. people are tired and frustrated after three years. it is not very clear that we are making a lot of progress. i mean, thinking about parliamentary votes again. it is very challenging. avoiding no deal brexit is better for economists. that is known. politics is there and politics probably will continue and each party will try to extract some benefit from. that will continue. nejra: you see fair value for the pound at 1.36. given the no deal risk taken off the table now, would you be tempted to buy the pound? marija: uncertainty is still very much there. it is still very binary. yes, there is value there.

understood. marija veitmane from state street stays with us. breaking numbers from a health care company coming through now. third-quarter sales come in at 8.8 billion euros. the estimate, 8.69. that is a beat on the third-quarter sales. it.light beat on eb it confirms full-year snails -- sales and net outlook at constant fx. sees revenue change x 4% -- revenue change ex-f to 7%. hitlphabets profit took a from heavy spending on its cloud business.

wasincome for the quarter just over $7 billion, down from over $9 billion one year earlier and below expectations. expense has jumped 25% on the year, rising faster than revenue. a u.s. army officer raised red flags about president trump's ukraine call. he works for the white house national security council and says he flagged the july call and other events. nancy pelosi says the house will take its first vote on the impeachment inquiry this week. is sets chief executive to tell the senate the plane maker made a mistake in relation to two crashes of the 737 max 8. criticalt of two appearances before u.s. lawmakers and comes as allegations that the company withheld key safetynformation. this coincides with the one-year anniversary of the first crush.

early data shows china's slowdown continuing in october. data shows the economic -- economy calling for six months indicator for trade, factory prices, and iron ore all worsening. nintendo's "mario kart" game has been downloaded -- that easily beat the game's previous record. the game has already raked in over $37 million in revenue. dangerous smoke is likely parts of california, as fires rage across the state. computers in san francisco have been -- commuters in san francisco have been wearing facemasks. wildfires have forced hundreds of thousands of people from their homes. 100,000 buildings are said to be at risk. global news 24 hours a day, on air, and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. nejra: annabelle droulers in much., thank you so with third-quarter earnings in full swing, we have a great week of bank interviews on bloomberg. we speak to the credit suisse ceo, tidjane thiam, on wednesday. we also have interviews with the deutsche bank cfo and the cfo of standard chartered. don't miss our exclusive with the santander ceo. with cfoswe sit down of bnp paribas and ing bank. the calm before the storm, as u.s. equities hit new highs. one trader is making a huge bet that volatility will erupt like it is 2008. that is next. this is bloomberg. ♪

♪ nejra: this is "bloomberg daybreak: europe." let's get a check in on the markets in asia.

great to see you. on another day of green on the screen. >> we have a bit of a mixed bag. a lot of optimism earlier in the day, which we got from a good sense of earnings out of the u.s. the fed rate cut prospect as well helped to propel markets at the start of the day. ultimately, that sort of ran out of steam. 0.5%.kkei up by nomura has gotten into profitability. business,retail domestic market for nomura hurting them. hang seng up by about 0.4%. we see a bit of action on this. liquidityis perhaps coming out of the system, which is perhaps responsible.

the pboc, central bank not coming into the market to support what has been happening. let's have a look at one that has been acting as a bit of relief when it comes to equity trading in japan. it is video gaming stocks. we have got these at the moment moving to the upside, nintendo capcomcap, up by 3% -- up by 3%. brothers deluxe" first switch getting approval to be sold in china. the mario version, tencent has got the distribution rights. this stock continues to be under pressure. it has been in recent days. even this a bit of a good news not able to help this stock from languishing to the downside. we are heading down as we headed

to the close in various markets in this part of the world. nejra: thank you so much. let's get back to marija veitmane, senior multi-asset strategist at state street. i know that you are still looking for the right time to buy emerging-market stocks. earlier, we were talking about the s&p 500 at a record. you were bullish about the and not worried about valuation. what is not right in the world for you to not want to jump into emerging market stocks right now? marija: we want to buy emerging-market stocks. we think emerging-market stocks are cheap and they offer growth. growth is a thing that attracts us. we know that investors mostly kind of shy away from emerging markets. obviously, given the geopolitical stress. i think this kind of negative sentiment is still there. there is a way we think about markets in general right now. markets are very narrowly driven. it is all about trade war. should we get resolution or should we not?

it is useful. this week, everything is good. it looks like we are ready to get the first phase of the trade deal done. that is very positive for markets. i'm sure you had a lot of people sitting there saying, we've seen this before. i think that is what is keeping investors from jumping into emerging markets. it is undervalued growth asset and you want to have it, but you need sentiment to improve. that is very uncertain at the moment. nejra: do you need china's economy to improve? bloomberg has looking at -- has been looking at early indicators for october. marija: we know that the chinese economy is slowing. that is very well understood by the markets. it is probably structural slowdown. china is never going to grow double-digit numbers anymore. china is probably not ever going to grow at 8% anymore or even

7%. the other thing about china is even though they have been supporting the economy, they have been on the levers, they have not pushed very hard on the levers. there is still a lot of scope for chinese authorities to stimulate the economy if they choose to. there is still a lot of scope. nejra: marija veitmane from state street stays with us. someone is betting big that the u.s. stock market is on track for the kind of turbulence last seen during the global financial crisis. that is even as the main volatility gauge hovered at its lowest for the year and american equities clock new highs. >> what most people are doing, as the vix continues to hit all-time lows, they are shorting the vix. calm volatilityin will continue. is this just the calm before the storm? some people are thinking so. looking into the charts, you can see just how much of a net short there is.

traders think the vix will continue to be low. this bet is the biggest since earlier this year. earlier this year, this was a record net short. as i said, there is at least one trader out there betting that this is going to reverse. we can see this when we look at options. looking at options on the vix, because it specifically. we saw someone place -- calls specifically. we saw someone place 50,000 calls at a 65% strike price, meaning the vicks would search to 65 -- would search surge to 65. there is a lot of risks out there that you really cannot see when they are going to come next, be it political risk, trade. we saw mra say that this bet is for april, meaning perhaps we will get a u.s. recession by

april. nejra: marija veitmane from state street still with us. would you be protecting against high volatility right now? marija: i think i will probably take the other side. i will go with the consensus. in general, i suspect that central banks, there is a lot of talk about who is supporting central banks. i think central banks are willing to take more risks. those go kind of hand-in-hand. the more active the central bank, the more they kind of suck up liquidity. in norma's desk enormous number of concern -- enormous amount of concerns about what can happen. you guys have been having great of worry graphics.

that has not gone away. what we see investors doing more is kind of doing this barbell strategy. they are being a little bit more positive for underlying assets, stocks, bonds. that is probably what investors are doing more so. i am worried about uncertainty, i don't know what it is, so i will put a portion of my money into cash, may be money market is offering some yields now. that sounds more sensible to me. nejra: cash as protection. a few look at relative value trades, would you still be favoring low volatility stocks? is that trade done for you? marija: i love growth. nejra: right. marija: that's my trade. that's been going really well for a long time. i still think that it will come back. i think still it is hopefully kind of a short-term pause in the longer term cyclical trend.

slower economic growth, slower interest rates. think -- we are still uncertain about value stocks. you do need to see massive performance in earnings outlook. it is not there. we do not think we are ready to give up on the growth story. nejra: marija veitmane from state street staying with us. bps lower oil prices way on third-quarter results? we speak with the ceo after the report this morning. tune into bloomberg radio live on your mobile device or dab digital radio in london. this is number. ♪ -- this is bloomberg. ♪ whether you're out here on lte.

or here on a wifi hotspot. xfinity mobile has more coverage to keep you connected to what matters most. that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. switch now and see how you could save up to $400 a year. and get 50% off when you buy any new lg phone. xfinity mobile. click, call or visit a store today. ♪ nejra: this is "bloomberg daybreak: europe." some breaking news crossing the bloomberg that saudi aramco is targeting november 3 two kickoff its ipo. this is -- to kick off its ipo.

that would be this sunday. they were delaying the ipo. the report now is that it could be on november 3. we will bring you any more updates on that as we get them. let's get back to earnings and tech specifically. alphabet's earnings were dented by spending and the cloud business -- in the cloud business. there was