that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [theme music] i'm joumanna bercetche >> i'm willem marx >> brexit deal is still possible this week. >> uk banks and home builders lead the stoxx 600 to a 48-hour high >> the u.s. imposes sanctions on turkish officials. president trump commands they

halt the incurson. >> and the deal of the woodford and he says he cannot accept the closure. good morning another day. another bit of brexit news sterling had a five-month high against the euro a divorce deal with the uk is possible this week speaking to reporters outside the conference center, barnier said it is time they turn their intentions into a legal text >> we are working hard and we just start now today, this work has been intense all along the

weekend and yesterday because even if the agreement will be difficult, more and more difficult is still possible this week reaching an agreement is still possible obviously, any agreement must work for everyone, the all of the united kingdom and the whole of the european union. let me add also that it is high time to turn good intentions into legal text. >> willem, as you know, we've been in a situation almost nothing has happened in three years and then a lot has happened in just the last week we are seeing huge moves in. let me show you on the ftse 100. given the strength we are seeing in the currency. i want to draw your focus on

what is happening to sterling. this is versus the dollar up 1.2650 in terms of technical levels 1.2708 is what you want to look out for. it has been a very strong week of performance also versus euro, versus the green back and euro, we are looking at four or five-month highs. we can see the little spike here this morning suggesting there may still be hope of a deal being reached. overnight, the reports that another emergency summit could be held to get that deal over the line a lot of optimism being expressed. looking at the individual sectors. specifically, the uk banks a bit of a jump here up 2.1%

barclays 1.7 and up as well. the uk names are really right at the top of the stoxx 600 they had been hit from brexit and brexit fears holding those names back one of those reasons they are bouncing back. another sector are the uk home builders mostly trading in the green up about 1% and up about .2%. trading up more positive for these names. that was no surprise they were the names that got hit the most anything with exposure to brexit, we are seeing rebound quite nicely today >> the global economist at capital economics. you may not be a betting man but i'm sure some of your clients are.

i wonder if you think they should be betting against a no deal brexit. >> barnier is saying a deal is possible a lot of things are possible i urge people to get a sense of reality and step back. what mr. johnson has done in admitting there should be some sort of customs barrier. that plan is difficult to pin town they came up with this proposal for a jewel customs idea there is a lot of good sounds coming out but there is a hell of a long way to go. the news flash, it still has to get through the house of commons. the prime minister, the government still has a long way to go before we get this deal

over the line. >> dare i say it, this sounds like uncertainty as we know, uncertainty has not been all that great for the uk economy. you seem to think based on your research that down the road, if we end up with a deal or some kind of deal, growth in the uk is not quite as fantastic the next year and year after that. i wonder why that is >> there is some key details the gdp and bank of england. beyond that, there is a repeated delate scenario. there is we strike a deal, which we don't think is particularly likely if the deal does get past, uncertainty is weighed on

investment in certain years and you are likely to see an acceleration seeing the uk can't be recovering quite well back up to 2% growth. then there is this repeated delay, which is more uncertainty, which is the more pick up and growth no deal, no recession, a continuation we don't know what is going to happen or the future arrangements will be we are not going to put our money into infrastructure and spending gentleman going back to the pound. what is the pound implying is the market expecting a deal or an extension given these valuations

>> what we can discertain is there is a positive market sentiment here there is a deal seemingly more likely than we saw before. whether you interpret that as whether there is going to be an extension, so many ways for this to pan out the idea that we can produce a single scenario that prices in, i don't believe we can read that much in. >> the element of the market being underweight. you see that in home builders and the pound. clearly the market was short partially, one of the reasons we are rebounding, investors don't want to miss out on the rally if there is a deal. >> yes that is the thing. there is so much uncertainty it's like trying to read into the tea leaves

markets are expecting, we are talking about millions of investors here thinking all sorts of different things. i would not want to read into that quite true what you are saying, people have beenunderweight fo good reasons presumably. i don't think the recent move cleared things up. >> simon, you made the pointerlier that the uk and the eu striking a deal would be a headline but that wouldn't mean all that much. i want to bring our viewers an update from the leader saying there are the votes in parliament for a brexit deal this is a man who has voted against it a number of times if we ended up with the deal and parliament passing it, what about the shape of that deal i've seen analysis comparing

what theresa may signed up to, you have people coming out sighing, look, having all these free trade deals is not all that great compared to what we would lose the analysis you would try to run on, is that all that much worse? >> economically, well in terms of the post brexit settlement, both visions for theresa may and boris johnson. the question is how close is it to the eu. they are trying to resolve the irish border question and sign some sort of trade deal. not necessarily some difference between them that would be the situation in ireland and how you deal with

the backstop these are the issues that are the difference between the two deals. due to different trading agreements >> serving us a degree of cautiousness this morning. we'll pick up the conversation with him shortly as well i want to take you to european markets. the reaction across the board today is pretty positive all of the majors trading up in the green. stoxx 600 as a whole is very close to the two-week highs, brushing off some of the initial trade deal disappointment. the dax up about .3% cac is up about .5%. >> let's check out what is happening outside of europe. president trump says he is fully

prepared to destroy turkey's economy in an attempt to stop the military inkurgson he said he will raise steel tariffs on turkey to 50% the trade will be, quote, immediately stopped. >> let's start off looking at european banks with turkish exposure for the most part, these stocks are trading up i mentioned earlier on that they are having good starts mostly led by the uk banks others are slightly in the green. perhaps not as negative as some had feared looking at hsbc, they are undergoing a restructuring and have announced thousands of job cuts that stock has really been lagging due to what is going on

specifically at hsbc let me turn your attention to the turkish lira the devil is in the detail the picture is showing one of strength we are about .3% firmer than the u.s. dollar. at one point, we were about .7% stronger we are further on the news perhaps because the sanctions were not as robust as expected let's get out to dan murphy live from instan bull that tells me we are expecting more extreme measures out of u.s. >> reporter: that's right. when you look at the devil of

the detail, turkey only exports about 5% of its steel to the u.s. this will have more bark than bite when you look at the prospects for a trade deal here, this $100 trillion deal had already stalled. those on the ground here suggest, yes, fears around the tariffs and sanctions have been overblown. take a look at the turkish equity market. it actually spiked 2%. clearly cash equity investors recognizing this will not be as bad as feared. this looks bad for the u.s. administration whether or not these are just official measures is the big question and whether or not we will see more action from the united states remains to be

seen here is the treasury secretary from the use announcing some of the initiatives against key individuals. >> effective immediately, we have sanctioned three of the ministers, the minister of defense, the minister of interior and the minister of energy we have also sanctioned the department of defense and the department the ministry of energy these sanctions are primary as well as secondary sanctions for any financial institutions doing significant transactions >> when you look at the political impact, we have heard from the turkish president he says the international community missed its opportunity for the crisis pulling the

entire region. he's written in defense of some of his country's actions he goes on to say operation peace spring is a chance to help syria and restore peace to the region he says the european union and the world should support what they are trying to do. we've heard from lawmakers on both sides of the aisle including house speaker pelosi who has been very vocal here saying president trump has unleashed an escalation of chaos and insecurity against syria his announcement falls very short of reversing that disaster the turkish president says he is not going to stop his actions. his goal here is to create a safety zone for the syrian

refugees in turkey he would like to send them back. the united states saying it will take further action if it sees turkey overstepping in syria exactly what those red lines are is unclear back to you. >> as you mention, a humanitarian disaster is being described as operation peace spring by turkish president. coming up, washington threatens further sanctions on beijing. wile fi we'll find out morabe out higher pork prices that helped boost.

♪upbeat music everything was so fresh in the beginning. [sniff] ♪ dramatic music but that plug quickly faded. ♪upbeat music luckily there's febreze plug. it cleans away odors and freshens for 1200 hours. [deep inhale] breathe happy with febreze plug. my first job is to care for derek. everything i do is for him. when i moved to this apartment after six months, we need to connect with the world. i use the internet to keep him in the language, because that's the way to connect to my family's traditions. he has to know where he comes from. we need internet essentials. there's no excuse to not get connected.

. >> welcome back to "street signs. shares of woodford have fallen sharply. it will ask the uk regulator to shut down the fund the embattled money manager criticized the decision and said

it is one i cannot accept. >> the ppi in china fell 1.2% compared to the same month cpi increased in the steepest pace in almost six years this latest data may increase on beijing to introduce further measures >> latest data from china showing consumers are feeling the spike pressure food prizes rose by double digits september cpi falling as the price of pork surged nearly 70%. pork retail remains modest reporting their steepest fall.

inflation is expected to deepen. the trend poses fresh challenges manufacturing cools on weak demand and trade war pressures in the midst of a busy week as trade data shows contractions on exports and imports. expectations are for 6.1% growth on year slipping from the 6.2% read in q 2. >> a fresh round of tariffs will go ahead in december if u.s. and washington do not reach a trade deal. >> that is according to secretary mnuchin. the threat of extra tariffs will remain mnuchin said the recent talks were successful but there is

still a long way to go before both sides can confirm the precise details. >> we have a fundamental agreement. it is subject to document aitat. it includes intellectual property rights, currency and exchange, structural issues and agriculture. >> the global economist is still with us. simon, no one seems to think this phase one deal is going to be a long-standing deal but is it enough to calm nerves >> i don't know but it sounds like a bit of did he dejavu.

you get to it and write it in a little text and realize both sides can't agree. fundamentally, since may, we haven't seen any convincing evidence whatsoever things have changed for either side. all we've got is the looming threat of tariffs. >> one that would threat the currency keeping currency under control as part of this phase one deal does that somehow buffer the impact that extra tariffs could have on the chinese economy? >> allowing that has happened soften the dollar so far

engaging in the competitive devaluations, only in august when they allowed them to fall below 7 per dollar those talks broke down hence, we are in the position now where they had fallen back if they don't get a deal anytime soon, i'm sure they'll allow it to fall further. probably more policy cuts on the way. downward pressure on exchange anyway you can let it slide, if you want to. global economist, bringing you an update. she's been speaking and has said it is already clear britain will emerge as another competitor to the european union but says we

will work until the last minute to get an orderly brexit that is consistent with her position she was one of the driving courses in the last extension. >> another leg higher on the pound. also coming up in the show, shares of wire card drop sharply. more on that after the break

. welcome back to "street signs. >> these are your morning headlines. >> the german chancellor says the eu will work to the last minute in a bid to strike an agreement. >> uk banks and home builders leading to a high with 48 hours to go until crucial eu summit. >> the u.s. raises sanctions on

steel to turkey up to 50%. >> wirecard shares head for their worse day in eight months after leaked documents appear to show fraudulent accounting practices. >> we are getting some uk employment data now. the count is at 21,000 month-on month. slightly lower than the month expected at 4% if you strip out bonuses, those numbers pretty similar up 3.8% august up alone 3 bot 8% sterling has had a bit of a

boost. some positive noises about the british government having the necessary votes. don't forget the german chancellor has said both sides will work until the final minute to get a deal. simon, these numbers, pretty positive are they very set when they talked about earlier consumer confidence how do they separate that out? and yet uncertainty among consumers? >> you've headlines in the balance but with the household finances and how consumers feel. more important in the longer run

whether they'll be spending or not. that has held up relatively well the general consensus. that has reflected the stronger labor market keeping community alive and trades being buffered about. fundamentally, the consumption has been the driving force keeping the economy afloat >> the uk economy has been tracking in the context of global economy where every country is slowing down. the uk is tracking 0.3 to 0.4% that is quite robust given all political head winds i wouldn't challenge the claim about the global economy many are stationed recoveries.

you've got china and the construction sector there propping up growth you have seen slow downs in the u.s. >> and from the uk's point of view, the euro is the greatest importance germany is clearly in recession but the uk is just about hanging in there for now but we'll see what brexit does to that in the coming courses >> we are waiting to hear from governor karny from the bank of england who will talk about the financial stability report i want to bring this discussion back to bank of england. there was comments that took the market by surprise because of their dovishness he said even in the case of an extension, we may see where things have to be cut because of

this talking about this uncertainty that has had a big impact. what do you think the first move out of the bank of england will be, a hike or a cut? >> it would cut if it was no deal, i think the only way they'll hike interest rates is if they get this miraculous deal over the line and the eu there is no election it is only if we get through these political steps you can see the certainty where the economy is robust enough unbalanced between those would be a cut rather than a hike. >> do you think one of those reasons why rates are trading so low, because of the uncertainty

of what the response function would be in the case of a deal, no deal hike that would be at 10% basis points, you could argue that is still relatively quite rich. >> indeed. purr purely on speculation. not exactly been clear what that means for interest rates come on, we are pretty confident that would lead to rate cuts to the government as well >> thank you for joining us. we are looking at guild there. let's also talk sterling that hit a five-month high. michelle barnier saying a divorce deal is still possible

chancellor merkel said she will work to the, quote, last minute to strike a deal >> that comment coming out of the various policymakers helping to give a boost to the pound overall sentiment is a lot more positive we have a negative session yesterday as the market came terms with what was slightly disappointing. today, things are trading a little more positive we have the stoxx 600 almost back to two-week highs the ftse 100 the relative outperformer dax is up. and cac is up around .6 perts. the sectors leading today, travel, retail, leisure are some we are watching out for.

let's switch and talk foreign exchange this is a real breaking point of 1.10 we have been rebounding some what sterling even versus euro is close to a four-month, five-month high now. we are talking 1.2660. some comments suggesting there may be a deal by the end of the week merkel weighing in this morning saying their preference is for an orderly brexit. we have to keep an eye on those developments the next couple of days that will be crucial. dollar with not much movement there. a strong session for the nikkei up there not a lot of movement in safe

haven currency as for futures, all ending down about .1%. really ending around the flat line the u.s. market looking towards the third quarter earnings season moving away from the macronarrative to the micronarrative we have s&p opening up higher. the dow about 100 points higher, the tech index also seen opening up 45 points higher. it looks like it is going to be a solid open for futures >> the on line travel company booking holdings is the latest to drop out of the facebook libra project. the owner of price line and booking.com have backed out. they've issued warnings about

the risk but the leading members have promised to push ahead yesterday, they announced five new board members. the group did acknowledge regulatory issues could push out the 2020 launch date saying the project does not meet the standards required >> i've met with the representatives of libra multiple times we've been very clear with them. you can call that threatening. if they don't meet our standards of money laundering standards and the standards we have, we would taken forcement actions against them >> if you are interested in

libra, don't worry we'll have more this week as we host a panel among the panelists will be facebook's david marcus there. the cofounder and chairman of infosys. and form economic advisor of president obama. speaking of mark farny, we'll hear from him in a few minutes >> yes in germany, wirecard shares are down following an ft report on the payments of the accounting practices. the newspaper reports that internal documents show a concerted effort to inflate sales and profits at the

company's business a wirecard spokesperson says there is no immediate economy on the report a charge the paper rejects the case is being investigated by german authorities. down 31% over the last 12 months as we've been hinting, the bank of governor is giving testimony on the report. let's take a listen. >> as you note, the chancellor has indicated that the process is on track. they've quite occupied with some urgent affairs of state. at the moment, to have orderly transition from myself there is a wide range of qualified candidates i would note in passing that

whereas i was appointed several months before i took office, there are examples including of the ecb including that the most recent president mario draghi was appointed a few weeks. this time, there will be an orderly transition they'll have another highly qualified governor, more highly qualified governor in the new year >> i was going to ask, if there wasn't a governor appointed by january, is this something you would have considered or would there be an interim period >> there are hypotheticals it is far too early to consider

them we've got a very strong team for policy making committee by external members like the two gentlemen that you see here. >> okay. i appreciate this may not be something you want to comment on, martin park from north whales has asked, should the government be publishing the short list >> i think the government has come a long way over the years in terms of the transparency anyone can apply a large range of people did. a head hunter firm did also encourage overs domestically and the world to consider the post

with external members conducting rounds of interviews to narrow to a short list and as appropriate the final decision made by the political office holders. there is a balance having gone through this process and encouraging as many people as possible to apply and absolute transparency through the process, if i can give my personal opinion, that government has encouraged a wide range of high quality people to apply that has afforded a good set of options for the government to consider >> how does the pro cess compare to other processes moretransparent or less?

>> i would have to say the process is more transparent to other banks like the ecb and federal reserve where there is not this head hunting process of wider range of candidates. it is most analogous to the process used at the bank of canada, which is quite similar the difference between the two, in the case of the chair of the federal reserve, ultimately that like most subject to approval as is the vice chair, right approved by congress in its previous role, the ecb role is most analogous in that it is appointment of the european

counsel in consultation with european parliament but not an approval process there is a vetting process but not a formal requirement for this appointment >> okay. moving on to the role, the capacity of which you are appearing before us today is as chair of the committee with members as you have done several times before as this session involves more public engagement than usual, may i ask you to explain the difference between the monetary policy committee >> the monetary policy is responsible for keeping the rate

low, and predictable 2% over the median term. subject to achieving that target, we are responsible to supporting the government's policy in other words supporting growth and growth in jobs some circumstances, we saw that most recently following the financial crisis and following the referendum that is the monetary policy committee, the low, stable prediction so-called price stability. the representatives you see here is financial stability, our responsibility is to make sure to simplify to the banks make sure the banks are strong

enough to serve those across the country in bad times and in good the entire financial system including financial market infrastructure, how the system works together it is not any individual institution or individual component of the system. the system as a whole can serve in one way, i could illustrate is that there could be circumstances in which financial markets are under more strain or picking up the slack we think about this system in the round, we have a wide range of tools of which to do so we have the ability to provide a wide range the third major committee, the

regulatory committee which mr. woods and i sit on, its responsibility is safety and soundness of individual institutions so people up and down the country can rely on those that their money is safe and insurance policies will be honored. financial policy serves the system, serves the country in bad times as well as good. the prc focuses on the individual institutions. >> okay. thank you. you'll be glad to hear, we'll give you a short break i'm going to ask mr. taylor who is due to stand down from the committee in march 2020. >> that's right. >> so this is your opportunity to share

what do you feel has been the ecb's greatest successes and where do you think could be improvement? >> it is the committee we wish we had before the final crisis it might not have been so bad or banks would have come through boater when the committee set out, the biggest task the work going towards this to rebuild the resilience of the banking system that was the overwhelming task of the early years i've seen the committee become more confident, clearer about what it is doing the government described the difference between the mpc and

fbc, price stability is easy to define you can define it by the inflation rate financial stability is rather a tricky concept you sort of know when you haven't got it we lived through financial stability and instability. defining it is harder. that makes the committee's work different than what the mpc does we paint on a wider canvas, if you like i've seen the committee get more confident but we are still at the toddler stage, i would say we've only been going less than seven years now. i think for me, one of the important things i think we have to continue to work on is that the financial markets and the wider public should understand

the work we do which is why the session like this is so important. should be able to understand what we call our reaction function if this happens, the committee is likely to happen that way >> i was going to reference the statement made in the preappointment question. that is rather far fetched is it any nearer to that >> that question was wrong on the twitter feed on that subject. returning to you, the financial report states that the fbc is maintaining at more than 1%. it might be helpful to awareness

and understanding, if you could explain that buffer is how likely that the fbc will have to raise it in the case of a no-deal brexit >> i'll thank the breakfast table who sent that question this is important. it is important in the current juncture but also a way to illustrate what has changed since the financial crisis the first thing to recognize is that the amount of capital the banks has, have gone up more than three times a huge increase if things in bad times to go back to my earlier answer that means they have a greater ability to continue to serve households across the country. one of the decisions we have taken is to take that big increase in capital and split it

into two one, minimum standards which the banks have to meet at all times. those are rigorously defined on the bank-by-bank level the minimum for each bank is higher than the aggrogate. on top of those is a buffer for each of them or on top of the whole. the capital buffer known as the ccyb is like a rainy day fund, it is a buffer built up during good times and the sunshine. in the event for example, so in standard times, the committee

thinks that buffer could be in the region of 1% roughly in the region of 1%. if sunshine turns to storms or uncertainty is maybe, if i can mix my met fors here, such as might be the case or likely would be the case in the event of a no-deal brexit. what the committee has indicated is not that it would raise that buffer but allow the banks to draw on that rainy day fund. what that means is that they can absorb losses that they might incur because of developments in financial markets or some loans that may go poorly and not worry about hitting a minimum level too quickly. to put numbers around it, the size of that one percentage

point of bufferer -- >> all right that is mark carney testifying in front of the committee. a lot of the questions at the beginning were about his successor and now he's talking about the capital buffers that the banking system has which would be a typical part of that report we just got comments out of the china central bank, saying the real command for credit remains strong that is it for our show today. m joumanna bercetche >> i'm willem marx "worldwide exchange" is next

a lot of folks ask me why their dishwasher doesn't get everything clean. i tell them, it may be your detergent... that's why more dishwasher brands recommend cascade platinum. it's specially-designed with the soaking, scrubbing and rinsing built right in. cascade platinum's unique actionpacs dissolve quickly... ...to remove stuck-on food. . . for sparkling-clean dishes, the first time. choose the detergent that lets your dishwasher do the dishes! cascade platinum. the number one recommended brand in north america.

what are you doing back there, junior? since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of.

he knows exactly where we're going. my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing. we can go down this what do you think? ♪ woo! yeah! it's good! it's refreshing. ♪ at northwestern mutual, this is what our version of financial planning looks like. tomorrow is important, but she's only seven once. spend your life living. find an advisor at northwesternmutual.com.

>> it is 5:00 a.m. wall street looking to spike new concerns around the trade with china. the global rate race to the bottom likely to cast a very wide shadow. here with a developing story in turkey president trump announcing new sanctions on that country's leader with just days to go, brexit hopes are surging along with the