jennifer: this is horizon's. apple slips, week china sales. scandals mount at number road -- namura, plus top diplomats try to secure a pause in fighting ahead of the presidential election. we look into the situation. it is 7:00 a.m. in south africa and i'm jennifer and johannesburg. welcome to the second hour, welcome to friday, welcome to november. u.s. equities tilting to a higher open later on, nasdaq

futures are up and that was as we saw downside because of disappointing earnings but we also god amazon and intel bucking the trend after the lift of the index and futures tilting upward, uh, excuse me, 2/10 of a percent. oil extending gains up 1.92% after a report saying iran is planning a strike on israel, so brent crude is at $74.21 and we look at the 10 year right now is

parrying losses but that coming after we saw it top 4.3% and a jobs report. let's look at this chart because potentially we will see a hundred thousand jobs and impacts will be coming from hurricanes and strikes so this is a look at the expectation and the last jobs print we will get. busy in asia for avril hong in singapore. avril: it has been pretty busy. today we see how asia stocks

have extended the monthly decline in on the benchmark save for chinese equities and investors are cautious given election uncertainties, u.s. tech earnings not much help. the pain is bad, nikkei followed by the most since september and this chart will show you the relationship, given how traders are bracing the relationship for the japanese yen one of strength , it does not bode well for the japanese stock market performance. even though we are in the early days half the companies have

been disappointing so it's about the yen and earnings. jennifer: thank you. let's stick with the tech story. apple down but amazon and intel are up. let's bring in annabelle droulers who has been following this closely. it's been a busy week. what happen with these two? annabelle droulers: what stood out was different outlooks, growth in the fourth quarter low to middle single digits when analysts expected 7% and weaker sales going into china. not a great outlook. the stock was slipping, concerns

around china and managing to fend off or captured consumers. that was the apple story and then amazon had rejections that exceeded estimates so they're looking for 20 billion dollars, estimate was for 17.5 so optimism around the holiday. jennifer: interesting with intel we don't get optimism, talk about the company. annabelle: tough view quarters or longer, it has been really whittled down but the turnaround

is well understood and he has been executing on that and we are starting to see some dividends because actually when the fourth quarter revenue forecast came through ill is higher than analysts expected, $14.3 billion, 13 point 6 billion in projections per share were down, sparking some optimism, maybe they can regain. stock up but some people pouring some caution on it. sort of relief rally, negativity has been the hallmark of previous earnings reports. jennifer: fascinating.

annabelle, thank you. let's pivot to scandals threatening to derail a turnaround plan at japan's biggest brokerage. managers take a pay cut after admitting an employee manipulated the bond market and former worker has been arrested on robbery, attempted murder and arson. russell joins us in russell, in tokyo, excuse me. earnings later today are being swamped by news we just got. walk us through it. russell: unfortunately it has been overshadowed by scandals. revelations came out that an employee had been to be leading

the bond market in tokyo and just yesterday they announced pay cuts after the scandal and local media reported the incident where a former employee went to the home of some elderly clients and drug them and rob them of some money. then he set the place on fire, so they have been arrested and this is a fresh scandal. right on the eve of earnings so we expect questions when the earnings hit. jennifer: give us a sense of the expectation -- this will be a look back but what is your expectation?

russell: actually quite positive. profit to have risen 79%, third quarter of growth, longest streak of profit growth under the chief executive so that's good news. the question is how much the manipulation affected business. we know it prompted clients to take business elsewhere and bond issuers to take their business elsewhere. normally this happens and clients return so it won't be long term. another question is to what extent former employees hurt the reputation given that it is

dealing with retail clients so that is unknown. jennifer: fascinating. russell ward in tokyo thank you. still ahead we speak with the u.k. trade secretary jonathan reynolds about establishing a growth partnership, this is bloomberg. ♪

jennifer: welcome back, i'm jennifer zabasajja.

rachel leaves reassures financial markets after a selloff telling bloomberg that the top priority is stability. >> we have morehead room than the previous government left us with and that is important but in the budget we were honest about the scale of the challenge and we are on a solid trajectory. jennifer: among the measures, increase in minimum wage and higher tax on employers, let's bring in u.k. business and trade secretary jonathan reynolds in dubai. thank you for joining us. a lot of reaction to the budget,

criticized for squeezing a light of these -- these middle income, middle class and smaller businesses, what is your reaction? jonathan: the budget was for the mentally about putting the u.k. on a trajectory of growth when it comes to the need for greater investment. i would pushback on suggestion that business, relations about smaller businesses, they were shielded by changing employment allowance. it is true to say there was a more challenging fiscal inheritance that changes were fair, provide for stability.

the u.k. sees stronger growth that is integral and we've got the prosperity. jennifer: could the increase of the minimum wage lead businesses to cut staff or drop wages? jonathan: there will always be where you have pressure something which affects how the business operates, recruitment, we accept that but where we got to was the official watchdog, the previous boo jet was not accurate.

if you look at the overall tax position and benchmark changes there is no doubt the u.k. is competitive. many competitors don't have the contributions which we have lowered with the changes in the boo jet, but still very attractive and when it comes to corporations nine out of 10 businesses will bailout effectively. it is competitive. jennifer: let's pivot to why you are in dubai -- this is your second trip since labor came into power.

what are you trying to establish? jonathan: it speaks for itself, my second visit as you say. every member has been visited by a minister in the government. partnership is strong, bilateral trade with the u.k. and gcc nearly 60 billion pounds. substantially improving, chancellor here to address the trade minister meeting to be frank i'm honored. i'm excited for the future, what it means and in the uae, a strong relationship whilst spending the day gear. jennifer: what is the goal in

the short-term? you said there's an opportunity to improve, what are you targeting? jonathan: free trade agreement which we are negotiating, one priority, it's about making it easier to do business so free trade agreements focus on tariffs and goods, market access, real improvements from british products. for the u.k. you will understand services access is a key part of free trade, there are ways we can improve on business, how easy it is, we believe we can do more in future. you got to complementary

economies, further opportunities in the future. the prize is real. huge amount of activity, what a positive story when the world is retreating into protectionism. jennifer: is there potential for politics to get in the way? we saw with the transport secretary some friction. is there potential to derail this? >> this is a strong relationship and there will be a need for dialogue. we don't conduct explicit policy but this is about more than just strong commercial relationship. trade is a force for good,

brings places and communities together and we should seek a world with strong trade and seeking to open those up. one big change in the u.k. is returned to a country open toward the world with the eu for like i'm doing with this visit so we should focus on commercial opportunities, never dodged difficult questions and make the case that economies together is a good thing. that is what the government is committed to jennifer: great to get on, u.k. business and trade secretary, thank you. coming up as the u.s. engages

israel we look into restrictions that complicate the path to a palestinians date, this is bloomberg.

♪ >> welcome back to horizons, i'm jennifer in johannesburg. top diplomats are trying to secure a pause in fighting as the conflict continues in lebanon and gaza and israel targets hezbollah and hamas. israel beefed up security placing restrictions on palestinians that put the possibility of statehood out of reach. we are joined by an author,

wonderful to get you on. can you describe the escalation that you witnessed? guest: of course. the situation has changed on the west bank. severe restrictions, 90 obstacles from checkpoints, increased surveillance, raids, violence, this is all affecting the lives of palestinians moving from one city to another, that is taking longer time. if i went from bethlehem he used to take me one hour, now is close to two and half hours

because of the measurements on roads and checkpoints, random checkpoints, you have to take different routes so this is impacting all aspects from palestinians and having restrictions is severe, a most severe restriction that you can impose. jennifer: how does this complicate the vision for a two state solution? guest: palestinian authority is trying to bring in peace and stability and a state is being hampered and despite vital that

the houston unit authorities are doing everything possible, all sectors have been affected by this unemployment and the closure of checkpoints affecting over half a million palestinians inside israeli territory are no longer able to work so you can imagine the stress this has been and that has been part of it. jennifer: sorry, we had to leave it there. hopefully everyone can read your story. thank you for your time. we have africa amplified coming up, stick with us. ♪

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jennifer: hello and welcome to africa amplified, bringing the continents biggest stories to the world. i'm jennifer zabasajja in johannesburg. we dig into shifting global power dynamics and where some of the continents big hitters fit into them. with days to go until the u.s. elections, african leaders are hoping the next president will bring renewed aspirations for business on the continent. president biden's promise to visit africa while in office was almost upended due to hurricane milton earlier this year. he now plans a visit to angola in december. elsewhere, ethiopia makes its bricks summit dave you -- debut as one of four official new entrance. the group of countries is on a push to become a global economic alternative to the west and won't have escaped the notice of

washington and its allies. we will dig into the stories and the implications for africa and beyond. as we always do, an update on some of the top stories we are following from the continent. we had to rwanda from the latest . let's start out with some big news out of southern africa. early results from bob swan is election indicate that the ruling party that has ruled the nation for the past 58 years will lose its grip on power. the opposition has won all 16 constituencies announced so far with final results expected later today. for more, let's bring in --? you've been following this very closely. give us the latest. >> good morning. early around this morning, the opposition officially [inaudible]

the first time in 38 years. what we are watching now is whether any of the opposition parties will reach the threshold at which they are able to have the constitutional right to select the new government. the closest party to that is the main opposition party. they need to get to 31. [inaudible] jennifer: really, the backdrop of this is the diamond sales and what we've seen in botswana over

the past few years. talk about how that is affecting how voters went to the polls and now what the results are that we are seeing. >> indeed. the damage is something that [inaudible] this year in particular [inaudible] more prolonged and deeper. perhaps because of the impact of [inaudible] it had a huge impact on the government budget. a much wider deficit. in addition, a lot of poker -- voters focused on the failure to diversify the economy away from this environment. for the first time, we saw the government savings at an

all-time low. [inaudible] jennifer: absolutely. >> this is top of mind in voters going to the polls. jennifer: we will see. thank you so much for the update. let's move to the west in nigeria. the oil industry seems to be at a crucial crossroads. the government approved exxon mobil's sale of its onshore oil and gas assets to domestic energy supplier --. the largest refinery on the continent is operating at almost 70% capacity. so what's the significance of this deal? >> it significant.

it happened like three years ago. exxon was planning to sell. nigeria has not been able to do this for more than a decade now. so this is an opportunity for nigeria to improve oil production. [inaudible] the oil production rebound. it's a big one. surplus shares jumped to a record high. an opportunity to think about oil production. jennifer: talk to us about the

impact of the refinery. you've been paying close attention to it. how is it affecting local fuel supply? >> significant improvements. [inaudible] prices are higher. demand is lower. but yeah. we are seeing increased supply locally. [inaudible] hopefully nigeria will end this forever. jennifer: that's the aspiration there. thank you so much for joining us. let's go to eastern africa. the imf has agreed to move ahead

with kenya's aid package to shore up finances in the wake of deadly antigovernment protest over tax reforms. so thank you for joining us. how important is this latest imf disbursement considering what we've seen in kenya? >> it's important because it calls ahead for 606 million that will help in boosting foreign research. important to remember that kenya was forced to shelf its finance goal, $2.7 billion following deadly protests that left 60 people dead. as a result, the budget deficit is expected to grow to about 4.3%. forcing kenya to get into talks with abu dhabi for $1.5 billion at 8.2% interest to try to plug into that but it -- budget financing hold. imf is not spoke about -- stoked about this idea. they are concerned about

interest rates that are higher than growth risks. particularly for a cse like kenya that is balancing raising revenue domestically while honoring external debt obligations. jennifer: let's talk about the political situation. we've been following this closely. the court ruled in favor of swearing in the new deputy president. what has been the reaction? give us a sense of where things stand now. >> it's a new day in kenya. the new deputy president gets to be sworn in today after the court vacated in order that was barring the nominated deputy vice president from being sworn into office. this comes after the former vice president went to court to file a petition challenging the legality of his impeachment. now this will induce the president to consolidate power and try to address the issues that are affecting kenya including runaway debt, education, health care, and

insecurity. jennifer: we will leave it there. thank you so much for your reporting as always. coming up, we turn our attention to another election thousands of miles away. americans will pick their new president and african investors are wondering how the result may change market prospects for the continent. we hear from one fund manager in a very unique position here with us to answer the question. stick with us. this is bloomberg. ♪

>> there's a kyu cho right have things that will be unlocked by ai. it's very early to say what all the benefits will be. we have to look at the opportunities and also the risks of the technology with clear eyes and partner with

governments and communities and businesses to harness the technology. that's one of the reasons i'm here, make -- to make sure i can get the sense of what's happening across the continent here. jennifer: yeah. it's different operating environments depending on what market you are looking at. can i finally ask you, in terms of investment, take it the geopolitical landscape. there's a lot of different players and leaders who are speaking differently about protectionism and investment and where to channel investment. is there anything that could potentially change google's commitment to the continent? say the u.s. election. particularly what's happening in china. i wonder if there's anything you factor in. >> it's a complicated time geopolitically. i would say that countries are working hard to understand these new technologies. think about the rules of the road.

i'm responsible for google in africa and also europe. in europe, we've had 100 pieces of regulation of technology. in five years. so it's really hard for entrepreneurs to make sense of that. here and african, the union is a setting a set of policies that are africa wide and that is a smart approach. how you get common rules at scale will make a difference. the big opportunity for africa is to have the 2 billion people here under a similar set of rules and guidance so when entrepreneur in nairobi can come up with something that can scale to 2 billion people. that's the opportunity geopolitically for africa right now. harness this technology and think about the root for entrepreneurs to get to scale. jennifer: that was the outgoing google president speaking with us from a roby -- nairobi about the challenges and opportunities of investing in africa. as an american company, google's investments could be affected by

the u.s. presidential election now just four days away. a change in washington could impact trade and investments between the u.s. and the continent. franklin and moo heads private equity firm and is also on president bisons -- president biden's advisory council. here's a bit of what he had to tell us. >> what's unique about working in africa, -- from a u.s. perspective is actually the bipartisan approach for trading and investment we've seen over the past decade emerge. the restart in u.s. africa relations started in 2014 thereabouts when you have the first african leadership summit. we saw continuity through the first trump administration actually. you saw the creation of initiatives like prosper africa where you saw the u.s.

international develop finance corporation double in terms of its investment capability and capacity. you also saw a renewed commitment to the export and import bank of the united states. another key agency that is core to the u.s. africa partnership. i think we saw continued continuity under the biden administration with the presidential advisory council. continued into that administration which is the council that we serve. we serve as the chair of the digital and ict subcommittee for that body. i think we will see more of the same. if you think about what's key and what's important to both sides of the aisle with respect to foreign policy, is promoting increased u.s. trade partnerships around the world. building ties particularly with areas where you have critical security of supply of key industrial commodities. i think you will see that continuity regardless of who wins on november 5.

jennifer: many people are talking about the potential trump trade that we are seeing in markets right now. even putting that aside, there's a lot of potential for political uncertainty. from where you said, how do you prepare for that? that could come if we don't get an outright outcome on november 5. >> it's a big issue. i think partners to the u.s. are concerned and perhaps rightly so, nervous about what it means for policy continuity depending on who wins the election and who prevails. specifically with respect to africa, you've got a unique opportunity. both sides are very concerned about china, very concerned about u.s. overreliance on chinese trade and supply chains. looking for opportunities to relocate supply chains to friendlier jurisdictions. i think to the sensibilities of

both of the leading candidates, africa could represent an international opportunity for friend-shoring. moving production capacity and supply chains to markets and geographies that are seen to have a more favorable disposition to the u.s. to take into consideration u.s. supply chain security and so on. from an african perspective, there's a little bit of opportunity irrespective of who wins. i think this renewed embrace of africa will continue irrespective of who wins. jennifer: what is the argument you make to your clients to put their money into africa versus potentially cheaper equities in china or india or elsewhere in the e.m. world? >> absolutely. it is a unique investment landscape. i think one of the most unique things about it is that today, the private market opportunity

is more significant. most african voices were quite illiquid, fairly thin. that is something that is changing over time. today, we think the real opportunity is in private market . that requires intermediaries such as asset managers, professional management firms like ours who are mobilizing investor capital to opportunities that require shaping and structuring. there is more risk and there's more complexity but we think that hopefully is balanced by the return opportunity. jennifer: that was a member of president biden's advisory council on doing business in africa, speaking with us earlier from london. coming up, the brick summit in late october kicked off with expansion of the group on the agenda. more on what that means for africa, next. this is bloomberg. ♪

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jennifer: russian president vladimir putin said the newly expanded brix group shows that a multi-polar world is being created in a challenge to the u.s. dominated global order. russia hosted the first summit since the membership grew to nine countries in january. why the economic block increasingly matters to africa as the continent seeks to expand its influence on the world stage. >> the bricks block has gone from this to this. now these countries make up 35% of the global economy. and almost half of the world population.

among the new members is ethiopia, key to brics expansion in east africa. its biggest trading partner is china while its relations with the u.s. have been strengthened. from washington's perspective, ethiopia's inclusion along with 10 official applicants and 35 other countries expressing interest is likely a growing concern. any country that joins brics may ultimately have to decide whose side is on, which could be swayed by the next resident of the white house. such a large block could ramp up economic cooperation. it could also lead to less cohesion and potentially more conflicting interests. while russia and china might today appear to have the upper hand in shaping the future of the group, the u.s. and its allies will surely look to counter the gray clouds of what some see as an anti-western grouping. jennifer: let's dive deeper into the story with bloomberg's kenya

bureau chief who joins us from a roby. -- nejra roby. -- nairobi. what are they hoping to achieve? >> well, it's the second sub-saharan african nation to join the group after south africa was admitted about 14 years ago. brics is almost two decades old. it's a recognition of the focus on the region. it is the continent's most populous country after nigeria. certainly more people than egypt . as you know, these member nations have very little in common. they have struggled to shape a cohesive identity. some view it as an alternative to the current global order, gravitating towards beijing. a counterbalance of sorts to western power as embodied by the

g7, the group of seven. the main appeal for ethiopia to join brics could be the possibility of having an active financial architecture separate to the u.s. dollar. the block has created two new multilateral institutions. the new development bank and the contingent research arrangement, arrival to the world bank and the imf. another traction is china. it's a large trading partner and presents a huge market. that is certainly a draw for ethiopia. so for this country, for ethiopia which is reforming its economy to attract even more of -- investment, this could be the main draw for rate. jennifer: our bloomberg intelligence team has found that brics could be double the size of g7 economies in 2030. that's big picture.

when we look at the region though where ethiopia is sitting, what could their involvement potentially mean for them? >> some may dismiss the brics as an inconsequential entity. it is gaining momentum. it's drawing more members. 40 nations want to join. 24 have already applied. it gives africa a voice at the table in addition to south africa's expanded brics. it represents about 45% of the world population. 30% of global crude output. that's an orientation towards the global south. that's a signal for african nations that have always felt excluded from the current international order. they are becoming more vocal about a move towards multilateralism. ethiopia's entry is a signal.

jennifer: a signal that we could potentially see continuing to expand. we have to leave it there but appreciate your reporting. bloomberg's kenya bureau chief there. just a few other teasers here. we profiled want to madani. he's made his billions largely in india but has been increasingly pushing into east africa. is it much-needed private investment or are some right to be skeptical? they have to set -- the episode is available wherever you get your podcast. that's all we have time for today. join us again next month and every month if you can. from johannesburg, it's goodbye. we will see you next time. ♪

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>> good morning this is bloomberg daybreak: europe. these are the stories is that your agenda. asian tech stocks fall after apple's