it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> good morning and welcome to daybreak europe.

let's get to the top stories. ubs reports a third quarter net loss of $785 million. wealth and asset management units missing estimates. the bank says it is accelerating the wind down of non-core assets. in asia, china it's -- china's export slump deepened in october, weighing on stocks. minneapolis fed president says the fight against inflation isn't over. reversing optimism about whether the fed is done hiking. the rba turning hawkish as it resumes hiking rates after four straight pauses, saying inflation is too high and risks remain elevated for longer. a lot of monetary policy. i want to check on the macro and the futures market. a massive pullback. kashkari is throwing cold water on what the idea is, may be the fed is not done hiking which is

the work of pricing. five trading sessions or so, risk off sentiment across the world. futures trading, euro stoxx 50 features down 0.3 percent, the same margin you are seeing s&p and nasdaq futures dropped. that is the equity future. the bond market matters here. when we talk about what is getting priced in. two year yield down one basis point. has not gone up to the key 5% rate level which tells you prices, excuse me, rate cuts are being priced into the market which is significant. when we talk about that fact, the equity market more sensitive . the bond market are not buying it. 10 year yield at 4.63. euro-dollar moving, so is the dollar against the rand. significant weakness in the south african rand after fitch ratings says they are worried about the fiscal budget when it comes to south africa. that is a story we will keep an eye on. the em world, south africa in

focus, brent crude trading in line with the rest of the massive pullback in risk sentiment. 84 handle down 0.7%. we are getting earnings coming from the third largest company in the world, saudi aramco, third-quarter operating profit at 234.5 billion riyals, much stronger than the 200 -- 217 billion riyals expected. they say when it comes to how much they will be changing prices, doesn't look like they will do much when it comes to pricing. for asia, when it comes to pricing for the united states. but they might slash prices to europe which tells you about affordability. we will dive into that later. stick around for that. it is not just saudi aramco. it is also ubs, and massive

mists when it comes to asset management and wealth management units, talking about integrating credit suisse and what that looks like. a wind to down -- down of the core side businesses. you are worried about how much that weighs on your balance sheet but i want to get more analysis. we have reporters from around the world joining us with top stories. guy johnson, swati, avril hong in singapore. these ubs earnings, not looking very strong. your initial take? guy: there is no point of comparison. this is the issue with the numbers. there is no comparison. you can't compare them with any other numbers so they exist in isolation. saying they are better or worse is tricky. there are signs that are good in these numbers. signs of stabilization in terms of the net new money coming in

to ubs and credit suisse and credit suisse in particular, there is a line i read talking about, they are courting net new money and wealth management, turning positive for the first time in a year-and-a-half. that is a better number, what the market is looking for. remember we are looking forward to the full year numbers, when we will get a strategy update. it is hard at this point to contextualize these numbers and that will be the issue the market has to grapple with. they will look at the money and stabilization and costs. you highlighted the acceleration, clearly they feel they need to move faster in this process and the market will take that as being a good sign. the loss they have generated is basically credit suisse's loss swamping ubs profit and we have to wait for guidance on when those things are going to come to kilter and these businesses

in totality will start making a profit. kriti: in terms of keeping the prophet, credit suisse has known -- he is known for wealth management. our the losses in ubs'wealth management be made up by the credit suisse acquisition? is that the rescue? guy: ubs was profitable beforehand so ubs was the stronger of the two. it is bringing in credit suisse, which suffered significant outflows as a result of the turbulence it experienced. stabilizing those has been job number one. there is evidence they can do that. the next phase will be the full year story, where we see the combined group announcing what the growth strategy is for the next three years. that will involve wealth management in asia and the middle east. critically, it will involve what their plans for wealth management will be in the united

states. they won't in any way be able to take the likes of morgan stanley but they will look at the market in a big way. that is what we are building up to. these numbers are bridge numbers. they give us breadcrumbs as to what progress they are making. they stabilized the money in terms of wealth management. they are stabilizing the situation, then they need to move to the growth phase and i think that is what the market will look for, when these things start to come into kilter. they will see some big changes within credit suisse as a result, and that will be costly. how long that lasts is what the market is looking for. kriti: we will see how the market reacts to those numbers in about two hours. guy johnson, thank you for your reporting. let's go to one of the largest central banks in the world, the rba raising their rates 25 basis

points. saying inflation is too high and risks are too elevated for the long term. it is the first hike since michelle bullock became the central bank governor. swathi is in sydney. the first hike after four straight pauses, inflation is high around the world. what changed? swati: inflation was coming down from its peak, and that gave the rba confidence that it could pause. recent data for the third quarter came out last month and it showed inflation momentum was picking up and that probably spooked them. it comes at a time of geopolitical shocks. at one of the recent press conferences, the bank president said you couldn't ignore supply shocks. we are seeing shock aftershock and it is hard to overlook them. in the statement, they said they

see a slower progress than previously expected in returning inflation to target so they did say inflation will remain above the target for longer than they expect currently. that is the reason why they decided to go for this hike. they have water down the tightening bias, which signals that they are probably done. kriti: it is a fascinating take, that as other central banks, the fed, the ecb and bank of england, are slowing down and the gas pedal. -- the rba hitting the gas pedal . the export slump and supply chain issues, you would think the u.s. is the first country to be hit by that kind of data. but it is australia in terms of how closely the economies are tied. swati, thank you for your

reporting. i want to talk about the asia rates through. avril, talk about the market impact from the rba and the data out of china. avril: that is a great point. i think that is what investors in the region are focusing on. central banks, chinese trade data. as we got the unexpected hike from the rba, we saw the aussie surging but i think what made the difference was the dovish tone at the end of the statement, which raised the hurdle for further rate hikes and the aussie dollar reacted accordingly, sinking. we saw yields in australia coming down, the asx 200 paying losses from earlier but already, going into what we saw from the central bank at australia, the concerns in the market are really about whether the fed is truly done with its tightening. the stock benchmarks were mostly

input -- in negative territory today and add to that, concerns coming in, a mixed bag from chinese trade data. we were optimistic we would see signs of improving demand for chinese goods. we didn't get that. we saw an unexpected slump deepening for these chinese exports, although it is worth noting on the imports front they rose versus expectations we would see decline. that might add to the push-pull we see among stocks. on the chinese currency, the csi 300 is parrying the losses from earlier. chinese property developer vange , they fell into distress levels but it is getting a show of support from authorities. they say they have enough cash and tools to support vanke.

dollar bonds have been recovering. we have vanke saying markets don't need to worry, that they will meet the payment on offshore and onshore bonds on time. the stock was in positive territory earlier in the session but i think it is in the red at the moment. the losses are perhaps cap traverses some of these other chinese property developers. another headwind to keep an eye on. kriti: certainly a lot to watch. avril is been putting this into perspective how much pain you are seeing around the world. thank you so much for walking us through the asian trade. it doesn't stop there. asia setting a dim tone for the world but you have plenty of data in the day ahead that could turn things around or make things worse.

germany's industrial production numbers will come out, telling you whether germany is the sick man of europe. do you see the pain manifest in manufacturing? will that impact car production and the broader industrial production in the continent? 7:00 a.m. u.k. time we get that data and that will read across to the ppi numbers we get across the euro area. is what we see in germany reflective of the continent? that will be the question. this takes out the construction index. some of the read across in terms of housing and supply issues will not show up in this data, which is why it is prevalent to pay attention to. do you start to see that have a ripple effect or stay in line with the data out of the united states? the u.s. trade numbers later, the china piece of the equation comes back into focus, coming in at 1:30 p.m. u.k. time. the trade balance has been

strong in favor of the u.s. this is in line with the chinese data. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak if you are a terminal subscriber. type in daybgo on your bloomberg tournament -- on your bloomberg turn -- terminal. i want to recap the headlines we got at the top of the show. saudi aramco reporting earnings, third-quarter earnings. their total dividend coming in at $29.4 billion. that includes a special dividend just shy of $10 billion, a big deal when you talk about how it will trade. having the oil profit returned to to shareholders in a way european and american oil makers are unable to do. operating profit 234 billion riyals, the estimate 217 billion riyals so major oil profit for saudi aramco returned to

shareholders. we will have full analysis later. we will stick with the oil story and the geopolitics. president bynum discussing the possibility of -- president biden discussing the possibility of tactical pauses in gaza with netanyahu. stay with us. this is bloomberg. ♪

kriti: the white house says president biden discussed the possibility of tactical pauses in fighting during a phone call with netanyahu, but the israeli leader reiterated there will be no general cease-fire. >> there will be no general cease-fire without the release of our hostages.

as far as tactical pauses here and there, we have had them before. we will check the circumstances to enable goods, humanitarian goods to come in or hostages, individual hostages to leave. i don't think there will be a general cease-fire. kriti: let's get more from henry meyer. what do we know about the call between the leaders? did it accomplish anything? henry: obviously, the u.s. has been putting forward a strong request to israel to consider what it termed humanitarian pause in the fighting, which has claimed more than 10,000 palestinian lives according to the hamas run health authorities. what you see from this call is the u.s. is scaling back its request to israel to what it is now calling tactical pauses. you see from the response of netanyahu, we are talking about

an hour or two at most on each occasion, to allow humanitarian aid primarily. this falls far short of what the u.s.'s arab allies are looking for. they want the fighting to stop. kriti: we heard from the pentagon they have announced they are deploying and attack submarine to the persian gulf. how big of a statement is that? henry: you have to look at that in the context of the continuing right of an escalation of the conflict. we have hezbollah, the lebanese militant group which is in lebanon, which is armed to the teeth with missiles. so far, there hasn't been a major escalation but the u.s. is concerned at the moment. a war with one front between israel and hamas could spread to lebanon. the deployment of the submarine,

which is very powerful, it has more than 150 tomahawk cruise missiles, this is to say to iran, stay out of this conflict. kriti: it is quite the message especially when iran actively warned united states that if they were to interfere or defend the idf moves, there would be a war i believe on multiple fronts was the exact quote. henry meyer joining us, thank you for your reporting. i want to get the other side of the story and bring in the gaza perspective. the hamas run health authorities has over 10,000 people have been killed in gaza since israel launched its campaign. let's get more on what is happening from paul wallace in dubai. what will the encircling of gaza city by is really forces actually do in terms of the civilian toll? paul: well, israel has said gaza city in the north of the gaza

strip is the center of gravity for hamas operations and that is why it is concentrating most of its troops there. it seems to believe that if it can route out hamas from gaza city, that it will deal a very big blow to the organization, which it is trying in its own words to destroy. to destroy as a group. and end its rule over gaza. israel has, since the start of the conflict, been urging palestinian civilians and other civilians to move to the south of the gaza strip. it has created what it has been calling humanitarian safe corridors. however, airstrikes are continuing throughout the gaza strip including in the south. palestinians and organizations like the united nations are saying there is nowhere safe in the gaza strip, and even in the

south, the civilian death toll has been very substantial. as henry mentioned, the hamas run health ministry says the death toll in gaza one month into the conflict has surpassed 10,000. the humanitarian situation in gaza is very bleak. kriti: at the same time, to talk about the bleak picture, to deal with that, you have started to see the conflict of -- the concept of a humanitarian cease-fire come under controversy over the united states. hillary clinton, h.r. mcmaster talked about how hamas uses civilians as a means of hiding from the idf, whereas president biden has been vocal about having some sort of cease-fire, at least temporary, for dealing with the humanitarian toll. walk us through the challenges of what that means logistically. paul: it is very challenging.

i think there is clearly a big gap between israel wants and what the u.s. and what arab nations want. israel is ruling out the cease-fire and to be frank, cease-fire is a dirty word in israel. as you saw from prime minister netanyahu, they are considering what he would call short pauses, but in his own admission he is talking about an hour here or there, extremely shortstops in the fighting. ostensibly, to allow more civilians to move to the south of the gaza strip, probably to allow more aid into the territory from egypt and may be allow more foreign -- more injured palestinians to leave through the rafah crossing, to enter egypt. it is difficult. israel says any cease-fire would allow hamas to regroup and

re-arm, to re-fortify health -- itself. a cease-fire requires hamas to stop firing rockets and missiles into israel, and this is something it is continuing to do on an extensive basis, despite all of the israeli airstrikes and bombardment. hamas clearly still has the ability to fire a lot of rockets into israel and a lot of israeli military people and politicians say we can't, we won't be able to believe how massive it says it will agree to a cease-fire. kriti: certainly a dire situation that doesn't seem to be finding a light at the end of the tunnel. paul, thank you for your reporting. more geopolitics, markets analysis next. stick with us. this is bloomberg. ♪

>> i tend to think the fed is either done or maybe there is one more. i think the more interesting story is, i think rates stay higher for longer. i think the market is overzealous on the belief that there will be 100 basis point cut next year. i'm not convinced there will be a cut next year. >> i'm nervous about the state of the capital markets. my biggest fear is there is for instance one more geopolitical escalation and that can happen quickly. the markets at some point actually give up their columnists -- calmness and you have a market event. kriti: jenny johnson and deutsche bank ceo speaking at an investment summit. other stories, donald trump has taken the witness stand at the $250 million civil fraud trial over asset valuations as family

real estate business. the former president appeared visibly angry, sometimes shouting at the judge who asked lawyers to control the former president. we work filed for bankruptcy after struggling to recover from the pandemic. and a failed public offering in 2019. the shared office space company underwent a debt restructuring this year. they said in august there was doubt over its ability to continue operations. coming up, breaking down the numbers from ubs, swiss bank -- and swiss bank. you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive.

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♪ kriti: good morning and welcome back to daybreak europe. let's get to the top stories

that set your agenda. ubs reporting a third quarter net loss as both its well vanessa management units mr. their estimates. the bank saying it is accelerating the wind down of non-core assets. saudi aramco's net income drops 23% in the latest quarter, hit by lower production. the oil giant stays profitable, maintaining its dividend at $29 billion. the rba turning hawkish as it resumes hiking rates after four straight pauses, saying inflation is still too high. let's get a quick check of the markets. a lot of crosscurrents. when you look at risk sentiment around the world, what seems to be driving markets is what the minneapolis fed president said had to say about basically markets pricing in some dovish pivot. he is saying inflation is still high, the fight is not over and that seems to be weighing on risk assets around the world.

down about .4%. s&p futures down about .3%. it really speaks to this idea that optimism you saw baked into the markets may be resending a little bit, especially now that the rba has said even when they are pausing, they are kind of hitting the gas pedal in terms of tackling the inflation story. do they set some precedent for other central banks? which brings me to the cross asset story. you look at the two year yield and 10 year yield, this is crucial because whereas the equity market is really sensitive, the bond market does not seem to be. a two year yield, still substantially below the key 5% level. the terminal rate is where the fed belongs. to trade below that speaks to the fed's pricing that a rate cut is due in june of 2024.

that will have a read through into what the dollar does. the euro-dollar will be the biggest mover. i want to put the south african rand on your radar because there's an active worry of the fiscal situation when it comes to south africa. and the fiscal situation will weigh so much on their credit rating, but potentially the currency as well. the morning giving dollar-rand a boost. brent crude trading at just shy of $85 a barrel. a lot to digest on the markets front. i want to continue with the earnings story because we are getting fresh headlines from nintendo as well. this is a big focus on their new console. their operating income coming at about ¥500 billion, the estimate was ¥450 billion. they are saying their switch software sales are coming in at

185 units and also raising the full-year forecast. some good numbers coming out of nintendo, specifically at a time where people have been cutting their forecast. again, positive numbers coming out of nintendo. a stark contrast to what you are seeing in the european baking space -- banking space, which brings me to ubs. a miss on both the asset and wealth management sides. tom metcalf joins me here on set. tom, the numbers were not great out of ubs but what stood out to me is they are accelerating their wind down of their core assets. break that down for us. what does that look like? tom: this is the first time they have consolidated credit suisse results. which was perhaps inevitable. it is really hard to pull out exactly what to make of these things.

for me, the non-core unit that had a loss of about $2 billion is what really pulling down here. the bad bank, as it were, wiping out ubs profit. it will be interesting to see what is to come next year. there will be a restructuring charge so it is interesting through q4. where do we stand? right now, it is pretty clear some inflows. it looks like wealth management stood out well but at the same time, your investors have plenty to digest. kriti: it feels like the narrative around it is that ubs is coming to the rescue of credit suisse. i'm curious with these numbers you have posted. to what extent is the integration of credit suisse rescue ubs? tom: it is helpful in terms of the big numbers. it is a positive move. they have been rewarded by that

by shareholders. this is a good set of results to show there are plenty of costs involved but the challenge of integrating this is not going away. the ceo said this was a challenging quarter, and that captures it pretty well. kriti: a challenging quarter at a time where it feels like the fight for market share, specifically in the u.s., is just getting started. tom metcalf in london, we thank you for joining us. i want to get more on ubs and the wider european banking sector. lori meyer joins us at moody's investor services. pleasure to have you on the program. let us start with what we ended with tom. this fight for market share, where does ubs stand when sergio ermotti said it has been a challenging quarter? >> i think as tom was saying, in a way, the results are somewhat expected because ubs is of course going through a huge

integration and partial wind down of credit suisse. so, we have to look at both bottom-line results and underlying results as well, trying to strip out some of the integration related noise, if you will. i think as tom remarked, we saw some very positive trends in terms of net money inflows. in terms of capital levels, reduction of rwa's in the non-core unit. and the non-core unit where they are accelerating the plans. also, overall, their capital liquidity has remained very strong. to some extent, we have to expect this and i think it is really from here going forward and into next year that you will be able to see the actual

overall impact from a fundamental point of view on the group franchise. kriti: i want to dive into what you said on the non-core unit specifically, because my understanding is if you start to see an acceleration of this, it is kind of stuck between a rock and a hard place. if you go too fast, you risk some major losses but if you go to slow, it weighs on your balance sheet. the fact that ubs is accelerating that move, are they risking bigger losses? laurie: i think that -- as you said, that could be the result and i am sure they have to be very careful about that. but, when you are winding down a non-core unit, part of it is finding other parties who might be interested in taking on some of those assets, or positions. to the extent they can do that without taking a hit on capital, they will do that and they will

work down faster. so, it is better for the organization to clear off the non-core unit as soon as they can. it is a major distraction. there's a lot of execution risks. they have to hold capital for it. so, as long as they can do it in a prudent way, which we believe they can, then it makes sense to do so. kriti: i'm reading our top live blog here. you can actually follow the analysis on live as we talk. there's a number that stands out to me as we talk about the non-core unit. they are reporting a pretax loss of about $1.9 billion which speaks to the idea of a potential distraction, as you point out. i want to go over to the trading revenue because a lot of allies were on the equity story and how much of ubs' equities revenue is in line with some of their

american peers. where do you think they stand on that? laurie: well, basically, sales and trading, debt equity, foreign exchange, etc. has been relatively flat this quarter. so, we sort of expected the same from them. and, we saw more strength in debt origination this quarter and a bit of recovery in m&a. generally, not really seeing ubs or anyone else particular stand out this quarter. kriti: i want to broaden out the conversation because we've had a series of bank c-suite members on bloomberg television and daybreak europe specifically. last week, we have the santander

cio. we asked them if you are concerned from a macro perspective, some sort of peak in interest rates, net interest income is making up a good chunk of the profits these banks are posting. how is the pivot looking between benefiting from incredibly high interest rates to suddenly perhaps having to shore up your balance sheet without that built-in cushion? laurie: right, i think our view and we have seen this in the results, net interest income and the interest margins are probably peaking about where we are. but, we do expect with one of your earlier speakers this morning that rates will stay higher for longer. they may not go up any further, but they will stay higher for longer than i think we had initially expected. and this will continue to support earnings, particularly in the traditional businesses such as retail, corporate

banking, global transaction services -- so, business mix will be very important here. while banks will have to manage the decline, we are not expecting as rapid a decline in rates as we saw the increase in rates that they are now benefiting from. kriti: let's talk a little bit as well about the flipside of that. if you start to see a faster deterioration in europe, which seems to be the macro base case built into the economy and markets for the last two years or so, something a lot of people might accelerate going into 2024 and 2025. if those loss provisions -- if you look at the likes of unicredit for example, they have an even made their provisions a third of what wall street estimated them to be. same with santander. when you look at other companies like ubs, their provisions are actually increasing. why is there that discrepancy

between various european banks when it comes to insuring against potential defaults in europe? laurie: well, business mix and geographical footprint matter quite a lot. so, we definitely have seen more deterioration in particularly credit cards and commercial real estate in the states. even european banks who have exposures in those areas may be increasing provisions in line with those activities. they are not really seeing that in terms of credit cards in the u.k. or europe. actually, balances are down and that is quite contrary to what you see in the states. those banks that have some exposure particularly in the states may be increasing provisions particularly if they have some exposures move to what

we call stage ii impaired into stage three where they have to increase provisions. that definitely was the case to some extent for ubs. i think the overall cost of risk and the credit situation is still very benign and more benign than banks generally have expected. most of them are still keeping their guidance intact and they are coming in with numbers below their guidance right now. kriti: it is pretty substantial. you mentioned the quote -- credit quality piece. it is worth mentioning they look pretty decent. the third quarter coming about $206 million, down from $623 last quarter. that is a number we will keep an eye on. lori myers, associate managing director at moody's investing services. we thank you for your analysis and insight.

i want to go to the other news that i want to call the corporate but also the banking space. pwc plans to cut 600 jobs in the u.k.. this comes as reduced resignations pushed to the company to make staff redundancies as well. the accounting firm will launch a voluntary redundancy program and will cut jobs if not enough people at -- opt to leave on the own. pwc was the last of the big four to hold out against redundancies. goldman sachs is revamping how its asset management teams are rewarded boosted payouts when funds outperform. sources say the payments will lift the shares of teams directly responsible for investment funds. teams are likely to receive 40% to 50% of the share of performance rewards. a lot going on on global wall street but we will dive into the earnings picture in our next block. coming up, saudi aramco's net income dropping 23% in the latest quarter.

we will dive into the numbers next. stick with us. this is bloomberg. ♪

kriti: there's a lot going on in the oil space right now. american and european big oil majors have posted these massive profits, deploying the cash in deals. you would think some of that applied to the third largest company in the world, saudi aramco. their earnings coming out this morning. their operating profit, the estimate was 317 billion. the profits are getting bigger. their dividend is getting about the same. i wonder what our key energy markets reporter anthony thinks

about? walk us through some of these numbers because of the same time , you are seeing higher aisle -- higher oil prices. how is it translating to what aramco returns to its shareholders? anthony: good morning. that is the main thing, the return of the shareholders, mainly the saudi government being the biggest owner of saudi aramco. those dividends are vital to enter -- underpin the saudi budget. those are in line with what we saw in the previous quarter. that is when they first announced and laid out what is a special dividend that is pulling out some of those massive profits from last year, 2022, and they are redistribute in those two shareholders. so, they are sticking with a base dividend of around about $20 billion and adding on top of that roughly another $10 billion of his performance-based dividend linked to the huge profits we saw last year. so, that is giving a little bit

of that back. that is stable but a big increase over what they paid out last year. so, this is good news for the government keeping that dividend up even though we are seeing oil prices coming back down from the averages last year. last year, we were around $100 a barrel average for the year. this year, we are in the $85 range which is where we are right now for brent. kriti: there's a lot to digest. we talked about how sustainable the return to shareholders is. we have to leave it there but we thank you so much for your analysis this morning. stick with us. plenty more ahead. this is bloomberg. ♪

kriti: all the markets could talk about the last 24 hours is

what the senior loan survey is doing. some sort of credit tightening. it is a lot of jargon but what you need to know is whether or not credit conditions are actually tightening. in two charts, i am bringing you what it looks like for commercial and industrial firms. you are seeing some tightening show up in the u.s. banks lending standards so it speaks to the idea that maybe the hiking from the federal reserve is making its way into the economy. that is what this chart shows. it mostly shows up in 2023 even though we have been hiking for longer than that. on the other hand, we are talking about consumers, things are a little different. you are seeing some softening there. the after idea you were talking about -- the consumers and the more industrial, bigger complexes are dealing with the same credit conditions. they are not. they are seeing diversions and that is why it is important to diversify the two because even though you start to see perhaps a little bit of tightening in

the survey, it is not indicative of what's happening to the actual american consumer. that is my final thought. before we go, a reminder that bloomberg's new economy forum is underway. this year's theme, embracing instability. here are some of the major voices that are coming up. we will be hearing from world leaders, policymakers, and executives discussing inflation, geopolitical tensions, a.i., and the climate emergency. up next, markets today walk you through the european open. stick with us. this is bloomberg. ♪

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>> this is "bloomberg markets today." mark cudmore our markets live

executive editor joins us from singapore to take us through the market action. the cash trade is an hour away. ubs posed its first loss in almost six years as the ongoing integration of credit suisse drags on performance. china's mixed picture on the economies status. and aramco maintains its payout to the saudi government and investors. despite third-quarter net income dropping by almost a quarter. welcome to markets today. coming up on 7:00 in london. good morning to you, what are the markets saying to you? >> after a very positive few days of her markets it ran out of steam in the u.s. session yesterday. and he just started feeling nervous about the move higher in u.s. yields east on supply and the results that we got that tightening was not as much as people had feared.

we started some negativity. the big events in asia including rba and china data, neither of them helped the move. rba did not deliver a hike and yet the aussie sank lower and china data was disappointing. a negative mood going to europe. anna: let's look at what that means for the future picture. it looks negative. down by .4%, the euro stoxx 50 futures. negativity in the markets. in terms of where we were yesterday, european markets heading lower and u.s. higher. the futures picture looks united on the downside. u.s. futures down .2%. it does seem as if we lost confidence in the narrative that was given a boost by friday's nonfarm payroll numbers that maybe the fed was done. maybe we got carried away.

some reaction to that view in markets in the last 24 hours. what have you seen on the gmm? anna: nothing-- mark: nothing too dramatic. the dollar is stronger driven by the higher u.s. yields yesterday giving back some of the gains we saw in asia currencies. the top of the board, the aussie dollar despite the rba delivering a hike that economists were not expecting -- were expecting but markets did not. a dovish hike signaling they think it is the end of the cycle. fx investors are going, if you are saying there is no more hope of hikes ahead, that means the next move ob lower even if it is not coming soon. aussie dollar trade is very disappointing. a follow-through after the rba, the rest of the asian session had yields coming lower. commodities weaker.