this is bloomberg. ♪ watchingyou are bloomberg markets.he vice presidential debate kicks off tonight and the spotlight will shine on the most mild-mannered political figures, giving them an opportunity to serve as character witnesses for their deeply unpopular nominees. here to give us some insight into the face-off, let's head to longwood university where the debate will be taking place tonight. bloomberg is on the ground there. some anticipation but no one is expecting this one to overshadow the clinton-trump debate from last week. there have been new polls showing hillary clinton is ahead nationally as well as in battleground states so tell us how that sets up the debate. >> after last week's debate, we saw hillary clinton seen as the winner by most americans. cnn poll that has secretary clinton up by about five points and that is up to mike pence, trumps running mate to shift the ground and make trump start to improve in those polls in the weeks to come. this is a tough task for him in the debate tonight. to try tog to have switch the

this is ♪ bloomberg. ♪-- bloomberg. ♪ matt: this is bloomberg markets.t could knock markets out of their summer languor -- a confluence election, the u.s. expected italian referendum, and a re-tightening of monetary policy from the fed could do the trick, according to steve would, who joins us now. you think these things could get together and knock markets down, or boost them up? mr. wood: i think it is going to be tough. restart volatility. one of the issues we have had in the u.s., we think the economic cycle is ok. we're not calling for a recession, and we do not see a recession -- but valuation prices are getting risky. use the underweight, rotating to europe. valuations ultimately a matter, and right now they look rich in the united states. do you think volatility -- implied volatility is so low in the u.s.? all of these things are coming up -- the election, possible december rate hike, probably november, by december seen as more likely, the italian referendum coming on people's radars -- it is hard to find any -- everyone talks about it, but there

this is bloomberg. -- i am courtney collins. this is bloomberg. radio and reasonably with 320 billion u.s. dollars in assets under management. earlier, henderson ceos spoke with bloomberg and gave his view on the future of money matters. >> is no such thing as a loan were walking -- lone wolf working on the own. it is being able to collectively grab a collaborative approach, and that is the future and what the future is held at henderson and janice. for more, we are joined by our guests from bloomberg news. is this what we come to in active investing? there is so much pressure on the sector that managers have to combine in order to make a marginal margin. peggy: yes, we will definitely see more of this. what is happening is the rise of passive investments putting pressure on managers so one of the things this deal hopes to accomplish is to be able to provide more scale to both companies and allow them to distribute their product more easily so henderson being based in the u.k. and janus in the u.s. can expand their client base in a way they can ru

this is bloomberg. ♪ matt: this is bloomberg markets.levels of mckissick for $3 billion in cash or stock. for more, cory johnson standing by on bloomberg radio. >> thank you so much. welcome everybody. technology media and telecom m&a reporter a here at bloomberg news. ands start with centurylink level three. a big deal. >> it certainly is. less two companies more or merged in. is not as sexy or flashy as some of the telecom deals. much about the elements of these two companies coming together, meaning they one is thets backbone of the internet. they are legacy companies here at centurylink started as a landline company. they have acquired a lot of the companies along the way and they also sell products to business customers. in other words, level three products to businesses, now they can sort of cell the products to a set of customers really. reason for the deal is tax purposes. both companies spend a lot of money laying fiber 10 or 20 years ago, did not make any money on it, so the rest of billions of dollars of losses and now they ha

this is bloomberg. ♪ bloomberg world headquarters in new york, this is bloomberg markets.we want to catch you up on some of the day's biggest movers. we start with a revocable coffee. higher after brazil cut its exportstimates amid drought and writing coffee consumption in brazil. that's stemming a recent decline with prices down 18% over concern of a global demand. watching the price of oil dipping below 50 today. the story on oil is the opec agreement appears to be falling apart with iraq the latest nation trying to opt out. take a look at this chart. this is the correlation between crude stockpiles and the vti crude. it is at the biggest versions in more than a year. get is a number we will tomorrow morning. it may continue to weigh on the price of oil. for more on the outlook for oil production, let's hear from the global head of commodities research at goldman sachs. keep a close eye on the permian basin which straddles texas and new mexico. >> you have to separate the u.s. into a permian basin and then other basins where the costs are relatively high. the increase in

this is bloomberg. ♪ vonnie: you are watching "bloomberg markets."ark: right, time for the bloomberg business flash. they look at the biggest business stories in the news right now. retire nextive will year at the biggest maker of construction and mining equipment. he will step down on march 31. 11 caterpillar to record sales in 2012 and guided the company through a global commodities downturn. vet will caterpillar succeed him. deutsche bank is considering whether to shrink u.s. operations. that is according to people with knowledge of the matter. deutsche faces mounting legal expenses, including a $14 billion penalty in the u.s.. they have discussed proposed cutbacks in talks with u.s. officials. supervalu is selling the grocery chain. it will use the proceeds to repay debt. the company expects to complete the deal by january 31. about 1300 discount grocery stores. that is the latest bloomberg business flash. vonnie: still ahead, the state of the travel industry. all of this with jeffrey boyd, chairman and interim ceo at priceline group. this is blo

this is bloomberg. ♪ vonnie: you are watching bloomberg.: this is your global business report. heldnational bank has interest rates negative for two years. what is the next move? vonnie: more problems for samsung. they have been reported to close production of their note seven. mark b.: in today's quick take, the u.s. economy is near for employment, but that does not mean that everyone who once the job has one. how do you define full employment? banke: the swiss national can put interest thanks further negative if needed. here is an interview with francine lacqua. >> it makes sense to you have to to stick bush between exchange and the creator channels. we have evidence that the exchange rate channel is working. francine: would you be comfortable going further into negative territory? moving to italy, industrial production, which of course unexpectedly increased for a second month, exceeding expectations, ahead of a key referendum. when it was increased, 17 of asts dropped off 1/10 percent. u.s. equities are in for a bumpy ride. high stock p

this is bloomberg. ♪ david: this is "bloomberg markets."her chart of the day. i'm looking at depressed bola, which we are definitely seng right now. -- depressed volatility. , onee increase in december measure of volatility here is the bank of america merrill lynch gfs i market risk index. this is at its lowest going back to tony 14. this is a measure of future price swings. that's going back to 2014. equities, interest rates, currencies and commodities. before today, it had been down for five straight sessions. we have not seen a streak like that since may. really seeing suppressed levels of volatility. that others are saying there aren't that many reasons to be concerned right now. a couple of these components what you were looking at a jpmorgan index of volatility and currencies. in the merrill lynch index that tracks volatility. this is implied or estimated volatility in the bond world. both of these are coming down. all of these different measures of volatility. finally, i want to look at the vix curve. when you are looking at the curv

this is bloomberg. ♪ from bloomberg world headquarters, this is bloomberg markets. markets are closing in new york. let's go to julie hyman. julie: oil has been a mover today. it is bouncing off lows as we head into clothes. $.52llars lucky --id a rock was he argued that iraq is facing islamic extremist in the country and is not able to cut production so that was affecting oil. it one way to get perspective on iraq and any of the opec nations is to look at opec go on bloomberg. opecis a share of production coming from countries. iraq is at number two. second only to saudi arabia. you see here the monthly estimated production rising to a record and so that is why we have seen a reaction to any kind of whisper or optimism that opec might be coming up with a production cut plan. i want to check on natural gas. it is still going down. if a loss for the past few sessions. fourth straight day of decline. it is down another 5%. this is the biggest selloff that we have seen going back to february for natural gas. the irony is that even as we have seen the selloff, people ar

-- bloomberg markets. vonnie: we are taking you from new york to paris and cover stories out of italy, and washington. the big u.s. banks out with earnings. jpmorgan and city, wall wells fargo takes a hit. , getting the earnings any insight on the scandals. >> we are covering banking out of city today. an investigation over allegations of falsified accounts and markets. >> and getting the week started with a new frisky atf be at the fund looking to capitalize on the 15% growth rate. we are about 30 minutes into the trading day. marketsman is at the with breaking news. a unexpectedly dropping to one-year low. that 87.9 is lower than even the lowest forecast of the economist who we surveyed. this as we see the current conditions index kicking up and is looks like the expectations are going down sharply. economists say could have something to do with the contentious presidential election campaign. the margin of consumers expecting hillary clinton to win to 46ection widened percentage points from 34 points in

this is bloomberg. ♪ scarlet: this is "bloomberg markets."day and the subject is wfc. i thought for a moment kfc. i was more excited. julie: no, it is wells fargo. we are talking about analyst confidence or lack thereof in the stock right now. the celebrating behind me here. ell rating behind me here. the highest now since the eight sellrisis -- ratings now on this stock. stumpf has been hauled before congress a couple of times. his salary has been clawed back and analysts say this will affect the reputation of the bank and potentially will be material. seeing the stock rise in line with other banking stocks today come up 2.4%. case sincet been the going back to the early september -- regulators were looking into the cross-selling practices. since then, the stock is down by about 10%. that has had an effect on its market cap. this is looking at wells fargo versus jpmorgan. smaller on a market cap basis then jpmorgan. this is the five-year chart, the spread between the two. going above the zero line and now, jpmorgan growing larger than wells

begins at 9:30 on bloomberg television and bloomberg radio and bloomberg online. your business flash update. >> we will get data from september and it will be closely scrutinized. is here and he has three charts to look at. a huge week for the economy overall culminating with friday's jobs report. one thing you are looking at, what is happening here? >> that is right. the first week of the month. next is the trade report tomorrow at 8:30. we talk about how exports will be a drag on the u.s. economy. one thing is important growth has been slowing. we are not bringing in as much as we used to. it surged after the recession. >> yes, it did. we are importing less capital goods and that sort of thing. global manufacturing has slowed a lot. we want to see some stabilization. when they go -- slowdown, it only seems to be associated. slowing is not what you want to see either. less demands for investment, traditionally a big driver for the cycle. about the you think belowl jobless claims, 300,000 for months and years. we have a chart that shows weekly hours. more that tha

this is bloomberg. ♪ >> this is bloomberg markets. >> let's turn to a bloomberg exclusive.you -- of a dividend. all wrapped up into one fund. they are run in part by robots. a number of funds have surpassed the number of new market caps. this story is fascinating because it threatens to replace more of the managers that are there. if you ask too much of something, something has to give. up threewrapping different factories. at what point did the universe become too small? >> the investing has been around for a long time. these concepts have year as an years of practice behind them. more and more funds are being created. they have not gotten to the point where we are concerned about crowding here. the main concern is education. do investors understand what they are buying into. it should replace your s&p 500 holding. >> why are we talking about this now? >> active managers are having a difficult run of it. people are turning to these strategies for a solve for this issue. when you think of the most digestible way to go about that, etf's are appealing. tax benefits, lower cos

this is bloomberg markets.he fbi is reviewing files related to hillary clinton's e-mails and it is already having an impact in the polls. 46 to 45 leada over donald trump nationwide. she had a 12 point lead earlier. correspondent in regular times. these are not regular times. she joins us now. don't we know that we shouldn't take too much notice of polls anymore or can we trust them? >> the candidates always say they don't pay attention to polls unless thingy to pay attention to polls and they all are right now. in thatpoint fallout abc poll is kind of thehi-end of what could be possible in the closing days of this campaign. the real question is not is the race tightening. of course it is having an impact. it is how much is the race tightening. as in aonally so much handful of key battleground states. north carolina, florida, arizona, maybe ohio. those are going to make the difference in whether or not these revelations -- it's not even revelations as the questions that have not yet in answered. much is that go

this is bloomberg. ♪ oliver: from bloomberg world headquarters in new york, this is "bloomberg marketsonnie: let's get over to ramy inocencio for the latest. ramy: thank you. oil is rising, but gold and other precious metals are crossing the flat line. not once, not twice, but three times. we are at 1.2%, the high of the day right now. earlier this morning that declare the u.s. crude supply and the surprise fall of 1.8 million barrels. and we saw this pop here. later on around the 9:30 hour we got reports that it had hit a seven-month high and taken another leg lower at the 10:00 a.m. hour. oil production coming out rising to 500 million. now oil is at its highest since last july. taking a look at the five day, oil is up for four straight days in a row. you can see that it is up by just over 6%, extending the gains after opec agreed to a production cut and a surprising one at that. in terms of what's happening on friday, the count is up for five straight weeks in a row and we can see that regardless of this, oil prices are still rising. i do want to switch over to gold oil is rising, g

this is bloomberg. ♪ this is "bloomberg markets."ries that continue to dominate the global conversation, china and russia -- call the extent borders two countries. the essential thing unexpectedly cut rates. there was a pause in august. the biggest energy producer in jordan worst year since 1998. we're joined by kairat kelimbetiov, a former governor of context on's central bank, former deputy prime minister, and current governor of a financial center. thank you for joining us. i know we are going to talk about what you are doing in the u.s. in a little bit, but i want to get your perspective on the damage done by crude oil's massive decline and then slight recovery here it with oil back and $50 a barrel, it is hard to see a path towards $80 or $100 in the next six month, year, or even two years. how has context and reacted to this new oil reality? it was like really a good wake up call for all of us in terms of the high price, and now we understand that the medium price will be something around $50, a little bit more, little bit less

close on bloomberg markets. from are going to take you washington and two stories on wall street, germany, and the u.k. the u.k. chancellor philip hammond -- an audit by german regulators shows the think it may have mismarked as many as 37 deals, including colluding with italy. emerging markets may have been outperforming this year. it has been the asset class du jour. to one strategist at jpmorgan who says there are risks longer-term. l, we are 30 minutes from the european close straight let's have a look where european equities are trading right now. 600 intraday.xx down 2/10 of 1%. if you take a look at what is happening across the sectors, it is banks leading the down 2/10 . gain. what's interesting is that usually -- the stoxx 600 has moved in lockstep more than any time since 2007. 600 fell for the first time in seven days. --could be these concerns heading for the biggest three-day gain in a month while the overall benchmark is down. if we take a look at this, i want to show you what's happening in on mar

this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets."id: it is time for the bloomberg business flash. at&t is pushing to get a deal to acquire time warner done by monday according to a person familiar with the matter. the talks accelerated since bloomberg broke the news yesterday that executives met to discuss potential business combinations. part of at&t's concerned that other potential bidders could get in. walmart is investing $50 million in new -- a chinese grocery and logistics company. 25 million than registered customers and delivers to more than 300 cities. elizabeth moran sent a letter to the department of justice settlementmylan's over medicaid rebates for epipen theygy shots she said underpaid rebates by an estimated $530 million and she fine lessoj imposed a than what they made by defrauding medicaid and medicare. that is your bloomberg business flash update. vonnie: the power of all-day breakfast, mcdonald's should know. their third quarter earnings beat estimates. they contribute their boost to tech upgrade that internation

this is bloomberg. ♪ scarlet: you are watching bloomberg. i'm scarlet fu. and i'm matt miller. we watching not only as deutsche a fine, but the german lender is being indicted for colluding with italian bank monte di paschi. ceo doug macmillan wants to invest in more digital and technology but can it keep pace with the likes of amazon? matt: from the scottish thependence referendum to brexit road back in june, pollsters have had a tough time getting it right predicting the outcomes in both elections. we break down why in today's quick take. europe where in german regulators investigating deutsche bank ties with bank mo paschi. regulators are saying that deutsche bank actually mismarked 37 deals with other banks, like the one it did for monte dei paschi. scarlet: one of the prices -- philip hammond says it may not be up for grabs after all. hammond spoke with john mikel's weight. -- with john. scarlet: most interest rate swaps clearing click play for real quick. largestld's retailer will spend more money to renovated stores and increase its e-commerce capabi

bloomberg is back "on the markets" in 30 minutes scarlet: coming up on "bloomberg best," the stories that shaped the week in business around the world. european banks work through some jitters. donald trump takes a shot at janet yellen. wells fargo's embattled boss takes a fallback. disney may have designs on twitter. opec jolts the oil market with an unexpected deal. >> it is opec managing the global oil market, opec bringing barrels out to raise prices. torlet: from policymakers movers and shakers, there is plenty of food for thought in the week's top interviews. >> i tend to be in the camp of normalizing sooner rather than later. >> economic consequences of a harder brexit will be more severe. >> there is always something to worry about. at the moment, there are a lot of uncertainties. scarlet: the world's most influential financial actors bring market insight to a global summit. >> i think it is tragic that we have taken rates down this far. >> i have not seen bubble prices in most assets. >> the pressure is great on everybody. ultimately, you've got to produce. scarlet: it's all

welcome to bloomberg "markets." bloomberg "markets." bloomberg "markets." bloomberg "markets."oomberg "markets." we are live and bloomberg world headquarters in new york. covering stories out of washington, the u.k. and saudi arabia. we are watching. stocks firmly in negative territory. the probability the fed will raise rates by band of the year is on the rise. leon cooperman is facing the legal fight of his life. he explains why he will not settle with the u.s. government. boiled down slightly from 15 month highs. still uncertainty if a deal will go through. we will discuss it in today's commodity flows. where things stand. energy, materials and health care leaving the s&p low work. the s&p is around a four-week low. down over 1%. the first 200 point lost for the first time this month. is you have to sell stocks, bonds and commodities. taking a look at the dollar index in the rand, you can see what i am talking about. the dollar sharply higher. in part, the rand steeply lower. a lot of issues over there. the finance minister alleged allegation of corruption. really putting pr

this is bloomberg. ♪ angie: welcome back. you are watching bloomberg. am angie lau in hong kong. yousef: i am yousef gamal el-din and divide. let us pick up -- in dubai. let us take the -- let us pick up a conversation with "bloomberg markets: middle east -- with didier duret. how do you get through this period and make enough money through it? >> we have to recognize there is a lot of volatility in the rhetoric, but we see volatility that is pretty mild. the correlation of pretty low as well meaning it is very constructive environment for big managers to we leverage releverage -- officially the risk target systems. didier: and term of positioning, it is important to have a buffer of cash. this is what we have. there might be a little bit about volatility period in the liquidity market in particular and in the market. it will be an opportunity to reposition thanks to the volatility that is happening election.esidential it is an opportunity to take advantage of this volatility. we have to remember that the politics is more, less important than the polici

economist for bloomberg television's -- bloomberg intelligence. >> i think it will be a chance for herinforce market expectations for the december rate hike. groundworkvide some to understand what to expect going beyond december we need to start focusing more on the pace of monitoring beyond the december meeting, which seems to be well priced in. >> as you say december is looking more and more likely. we may start to see real i thinks in the fed? >> the committee is still there and they are very much behind chair yellen. i think everything will depend on how the economy will evolve going forward. labor markets is going to be key. in onail sales came platforms. and michigan sentiment. what does this tell us about the economy? >> it was a big rebound in the , the lesson the control group. it was probably a little bit too little and too late. going into the third quarter of the year. we saw i followed performance in consumer spending. we may see some moderation going into the third quarter. that doesn't mean we are going to see some moderation in gdp growth. we should see acceleration. >>

watching the european close on bloomberg markets. mark: we will take you from new york to frankfurt. we will cover stories out of brussels, the u.k., in washington in the next hour. here is what we are watching today. mario draghi signals the ecb probably will not stop the program without tapering its first. we will dig into the comments and all of the market reaction, next. pullingpostdebate tells us hillary clinton came out on top. we have highlights as well as a loophole on who the republicans want to be decent interface of the party -- the center ice of the party. mark: we are under 30 minutes away from the end of the first day session. global movers is your function. we had a soaring of assets during the mario draghi q&a or during the testimony because initially he said we did not discuss tapering or extending, but that that pushed the euro reversend then the happened when he set an abrupt unlikely,chases is suggesting the box program will be extended when it comes to its conclusion in march 2017. stocks are rising. by half of 1

bloomberg tv it on and bloomberg radio and bloomberg.com. mark: coming up, from the big oil play to the telecom tie up. we will attract the major movers on this merger monday. ♪ mark: live from london and new york, i am mark barton. vonnie: i am vonnie quinn. this is bloomberg markets. julie hyman has been watching the stocks. >> it is a really interesting reaction with general election -- general electric. i have been talking with an intelligence analyst to figure out what is going on with general electric combined with baker hughes. it is going to be 62.5% of the company. baker hughes shareholders are going to get a $17.50 dividend as part of all this. the chairs are going to be publicly traded. baker hughes shares traded more than 8% on friday. we are seeing a pullback today after that. also, oil and gas companies pointed out that the valuation of baker hughes is relatively high. that is one of the reasons this is a complex deal. that could be one of the reasons behind baker hughes's pullback. and not terribly strong performance. the othe

this is bloomberg. ♪ david: this is bloomberg markets. pay the department of justice 460 $5 million to settle questions regarding the classification in the overcharging for the fb pen. richard blumenthal called for further investigation, saying it is a shadow of what it should be in the lacking real apparentility for the lawbreaking. joining us is jerod hopkins. are you encouraging the doj not open? whatto keep it more are you looking for? do you think there is more to be view, the >> in my amount of money is inadequate. of $700n the range million, as opposed to the 465 mylann that my land -- has said is involved in the settlement. most apparent to me is the complete lack of investigation. that amount of money may be willfully short of what it should be. we have no way of knowing. i asked for a criminal investigation. what is involved here is a potential false claim under the false claims act of fraudulent claims. individual should be held accountable if in fact there was criminality. david: what do we think happened here so far? what see

this is bloomberg. ♪ manus: you are welcome back. you're watching bloomberg. i'm manus cranny in dubai. angie: and i'm angie lau in hong kong. let's get you a check of the latest headlines. the u.k. business secretary has confirmed that nissan assured post-brexit assurances to keep manufacturing there. they've also offered support for training and innovation. [indiscernible] a month after warning it could move its european manufacturing there. security shares are gaining in tokyo after the company reported a 25% increase in second-quarter profit. japan's second-largest brokerage posted a net income last quarter thanks to hire trading income. daiwa announced a share buyback as it cut its first-half dividend from 70 to ¥30. >> the yen is on a weakening trend. events like the u.s. election and a fed rate hike will weaken the currency, but that will start pushing up the stock market. we expect markets to recover along with our profit in coming quarters. angie: canada has signed a free-trade pact with the eu

you're watching bloomberg markets on bloomberg television. parenti has more. >> hillary clinton and donald trump are in a dead heat. they are tied at 41%. leading in some cases significantly. gary johnson 8%. jill stein 4%. hillary clinton is hitting the campaign trail with michelle obama. will make a joint appearance on thursday in north carolina at wake forest university. radical tom hayden has died. he was an author and california legislator. he was 76 years old. north korean officials are criticizing efforts by the u.n. to strengthen sanctions following the latest missile launch and nuclear tests. they said sanctions targeting the missile tests are criminal and accused the u.s. of orchestrating the punishment. alibaba billionaire jack ma wants china's top security bureau to prevent crime. he says policing cannot happen unless china has the ability to analyze information on citizens. china has begun to build unparalleled online surveillance of its citizens. this is bloomberg. vonnie: stocks rallying today in both the u.s. and europe. our n

this is bloomberg. ♪ vonnie: live from bloomberg world headquarters new york, this is bloomberg.ed the latest warning from the international monetary fund citing political this court threatening to detail the week of global recovery. tom: with us now is maurice osfeld of berkeley. he is the chief of economic research for the economic monetary fund. congratulations on your world economic out -- outlook. i loved the first sentence of your summary -- in search of strong, sustainable balance and inclusive growth. it's not out there, is it? >> not yet, tom but we are hopeful that with more concerted policy action we can do better. tom: the policy package you look forward to is what everyone is talking about which is fiscal policy to come to the rescue of an exhausted monetary theory and monetary policy. what do you need from , particularly, what do you and christine lagarde need from the next president of the united states? one element we have emphasized a lot is the trade picture. trade has fallen. it has grown very slowly in the last few years relative to gdp, certainly. we certainl

this is bloomberg. ♪ vonnie: this is "bloomberg markets."avid: time for the bloomberg business flash. meet the doj in court -- working on a settlement regarding the mortgage backed securities. serra says the bank should settle between $4 billion and $5 billion. another step taken today by jeff companyose exploration conducted a safety test of its that they plan to send crews and sell seats to $250,000in 2018 for -350,000. vonnie: let's put the spotlight on south africa. meetingnce minister with investors in new york this week. making the case that south africa is open to business despite ongoing political turmoil. he made his investment case in an interview with francine lacqua. avin: we've had huge inflows into the bond and equity markets in south africa. at the moment, foreigners own over 35% of even our land denominated bonds as well. joining us now is the ceo of the johannesburg stock exchange, nicky newon-king. thank you for joining us. tell us about the political risk in south africa. is down 1% that is a lot to do with the rand. nicky

this is bloomberg. vonnie: let's get back to the markets, stocks fluctuating in the united states while in the bond market u.k. gilts are leading a selloff after mark carney sounded the alarm on inflation. 10 year gilt yield approaching the highest level since the brexit vote. joining us as johanna kyrklund. schroders has a negative view on starting grid now and you will let us know what your outlook for gilt is. johanna: it has fallen so markedly it has started to flash up in our valuation screens. it is looking extremely cheap. gilt, it is true with fallen sterling -- falling sterling and market conditions we are likely to see a surging inflation and are likely to remain negative on u.k. gilt. vonnie: many economists are saying the first quarter of next year will be seeing the impact of brexit and you could not possibly know what that is going to be. why do you think the currency has maybe found a trough? thatna: one is the view monetary conditions will be looser to offset the impact of brexit, but mo

cehic.jra this is bloomberg.rancine: the european central bank is likely to gradually wind down bond purchases before the conclusion of its program of quantitive easing. that is according to ecb officials that have spoken to bloomberg. it may happen in sets of 10 billion euros a month. paul, this is an amazing bloomberg scoop. this doesn't mean that tapering is a near, does it? paul: it doesn't. this is an important point to make. the talk of ecb is whether to taper perhaps by 10 billion euros a month. that will take you down to zero over eight months. when that will start is not yet decided. according to the ecb, it has not been discussed formally. what we are talking about here is informal chat. that is a very important thing to note, because the ecb has said it will continue with his bond purchasing program as long as needed. you can tip -- you can take a look at the bond scarcity issue. withhat the ecb is dealing as it reviews whether it needs to just structure of the qe program to make some and eligible bond

this is bloomberg. ♪ vonnie: from bloomberg world headquarters in new york, i am vonnie quinn.k: i am mark barton, counting you down to the european close. checking the chart to my right. 4:21 in london. the sterling falling for the against the dollar, revising long-term forecasts weather the u.k. can negotiate a deal that lets it remain in the europe's angle market. -- europe single market nearly asked about that possibility. the u.k. is a the u.k. is a mee eu until the brexit negotiation has ended, not started. also, with the idea that with the great bridge and outside the eu will remain a european country and we need to cooperate in a deep manner. that means if you consider the market, it has to be complaint. -- complete. mark: joining us is bloomberg first word fx editor. sterling falling against the dollar for the fourth consecutive day. maybe since 1985, we have not sincehe pound this weak then. october 30, first question, using the power of the bloomberg, how love the sterling go? >> it is probably not the bottom. crash on friday we have seen revisions as well as 1.18. m

this is bloomberg. vonnie: let's get back to that bloomberg scoop. a consensus is building in the ecb to gradually rein in quantitative easing. investors are also weighing comments from federal reserve officials. for more on all of this talk, let's bring in bloomberg's european economy editor who helped break the ecb story. thank you. a great exclusive. the ecb is talking about tapering, get many houses are talking about the ecb may be extending quantitative easing in the next six months. one does necessarily exclude the other. they basically said that once the ecb is comfortable that the economy is strong enough, that inflation is on the -- on the way up towards its goal, once they decide that qe can end, then the preferred way at the moment is to taper purchases and let them run out as opposed to stopping the program. what we did not write was anything about the timing of such a move. qe is currently scheduled to run through march 2017 and policymakers might decide to extend it be on that if they find that the economy needs it. to the wobbler that

this is bloomberg. ♪ .att: this is bloomberg best i am matt miller.et's continue our global tour in europe with more cutbacks coming in the continent's financial industry. cutting 5800 jobs in the netherlands and elgin. inroximately 3500 jobs cut belgium over 2016-2021. the cost on the top line will be 1.1 billion euros. the company says it remains committed to progressive dividends. is this the worst case scenario for you? will all jobs be let go over the next five years? >> as we invest in a digital transformation, and continue to invest in a digital transformation, it means less jobs. the important point is we have strong commercial momentum. we are growing profitability. we are growing our roe on the back of increase in capital ratios. we have to move to the next stage. time waits for no man. we are ready to move to the next stage of our digital transformation which means a lower fte. it means ing can navigate a low environment and generate growth. andeutsche bank set to reach agreement with labor representatives paving the way to eliminate 1000 j

is bloomberg. sterling recovering from its lowest level since the flash r bank of england governor mark carney said it were limits to officials willingness to look beyond it overshoot of inflation targets. >> that judgment is a judgment about the optimal trade-off, a judgment we have to make on the basis of the agreement letter. shere are limits to the mpc' willingness to look through an overshoot of inflation. mark: the morgan stanley chief executive says his bank will be forced to move some employees out of london as a result of the brexit vote. >> there's nothing good about brexit. inloved the rule of law england, we love our folks working in london. you have all the eate ecosystem, it is all there.rtered we will have to have a headquarters in europe in addition. we will probably have to have more capital and liquidity trapped in those legal entities. none of this is good. mark: carney suggesting there are limits to the boe's willingness to look beyond the overshoot of inflation targets which br

this is bloomberg. ♪ noon in new york. i'm vonnie quinn. welcome to bloomberg markets.erg world headquarters in new york we are covering stories from new york, london and beijing. we are live from bloomberg's the year ahead summit where business leaders convened to discuss the key issues for 2017. our bloomberg businessweek editor is speaking with the ceo of tiaa. you aboutl tell clinton's secret weapon in florida. we are just two weeks away from the presidential election. are swapping corvettes for comfort as sports car sales fall. julie hyman joins us with the latest. julie: we are seeing more of a pullback. we got

this bloomberg. ♪ francine: this is bloomberg surveillance.worst performing bonds are attempting to defy gravity. portugal is on deck for investors. meanwhile, bonds around the world. 3% bonds this month. that's get more from eric nelson. these bondok at performances, actually not that bad. mispricings -- everything? >> it is difficult to know the price. beingn't make money short. of noisea little bit but the ecb seems to have been put to rest. francine: there's not enough stuff for them to buy. one day they will run out. francine: they will run out before it becomes a major problem? that is the number one question we have to figure out. if they were to run out, at a time would you still needed to do something, it is that. they have guts to buy more risky stuff. that is the number one issue. chart.t's bring up this a busy week. we have eric nielsen. help me out here. this is a lollipop chart. i will zoom in here. the idea of the recent move higher, it was made clear this is not a bond rout. where is the healed migrating to? do you just presume

this is bloomberg. ♪ scarlet: this is "bloomberg best." i'm scarlet fu.et's continue our tour of the week's top business stories in silicon valley. where there is increasing talked that twitter is preparing to put itself up for sale. on monday, markets were a-twitter with news of a potential buyer. >> the walt disney company is said to be working with a financial advisor to evaluate a possible bid for twitter. with this move makes sense for the media giant? what do we know? disney is working with a banker to evaluate a possible bid. this does not mean they have not -- does not mean they have made a big yet, but they are very interested in twitter as a media property. we can speculate as to why. disney is getting a little bit more into streaming. they have noticed the cord-cutters. they are trying to figure out how to distribute their video content. for twitter, this is something they are into, too. they are repackaging tweets in video form first with their appe tv at and -- apple tv and xbox tv app. they want to make sure people can get into twitter throu

this is bloomberg. ♪ >> welcome to bloomberg markets. ♪ from bloomberg world headquarters in new yorks what we are watching. morgan stanley joining other top u.s. banks in being expectations for fixed income trading revenue. we break down those results. the countdown is on to tonight's final presidential debate. we had live to las vegas to discuss the latest poll numbers. hear from creditable aleman on how he recruits the best talent around -- from christopher aleman on how he recruits the best talent from around the world. >> a mixed picture, and you can see the nasdaq heading slightly lower. the s&p 500 and the dow are holding up better. we've got more energy stocks, more financial stocks of the big bank variety in the s&p and the dow.

"bloomberg technology" is next. selina: i'm selina wang in for emily chang, and this is "bloomberg technology." coming up, it's twitter destined to remain an independent company? the company loses one of its last potential irons as -- buyers as salesforce house out of the running. the growth strategy chinese companies global ambitions. we will discuss with the dcm cofounder. 10 years ago the founders of box got their very first vc check. the story of the four childhood friends now leading a $2 billion company. first, to our lead. twitter shares take another tumble after losing what some still considered one of its last options for a buyout. salesforce is officially out of the running. stock jumps on the confirmation today as investors breathed a sigh of relief that the ceo marc benioff would not spend billions on a departure from its core business. google and disney have also backed out recently. what's next? brad stone and eric newcomer join me on the set to discuss. we reported last week that salesforce would like

this is bloomberg. ♪ . . >> this is the best oh bloomberg west.an to colonize mars. weighing in on why he is concerned about donald trump. ad, jumping in the race with potential

this is bloomberg. ♪ ♪ welcome back, you're watching bloomberg.: a quick check for you right now, the latest business flash headlines. china construction bank agrees million framework deal to cut their debt ratio. this is the second debt relief program they have revealed in the past week from state owned enterprises. china released guidelines for reducing corporate debt. gold producer evolution says they will buy a mine. $7.6 million but the still -- the deal still needs regulatory approval. its finalwill set price for its upcoming ipo today, about $23 per share. that would be at the top of the range. the company will debut in tokyo on the 25th. they are seeking to raise $4 billion and aims to reduce its alliance on japan, investing in residential property across southeast asia. yousef: gulf stocks retreated on sunday as more companies meet -- missed earnings expectations. saudi arabia's biggest privately , about 50% less than analysts had perspective. total operating expenses up 90%. -- 19%. stock 5.5% after the results came out. we have the mana

you're watching "bloomberg west." for the first time since copies of donald trump's 1995 tax returns were leaked, he is publicly addressing the issue. mr. trump: fixing our broken tax code is one of the main reasons i'm running for president. i have been saying from the beginning of this campaign how ridiculous, complex, and yes, unfair the tax system is. it is an unfair system and so complex that very few people understand it. fortunately, i understand it. mark: hillary clinton says donald trump represents the same rig system he is running to change. ms. clinton: well millions of american families, including mine and yours, were working hard and paying our fair share, he was contributing nothing to our nation. mark: clinton addressed claims from the trump campaign that he was a business genius, saying "what kind of genius loses a billion dollars in a single year?" the vice presidential nominees will meet in their only debate tomorrow in farmville, virginia. you can watch the debate starting at 8:30 new york time. res

this is bloomberg. ♪ francine: this is bloomberg "surveillance."'m francine lacqua here in london. let's get to the bloomberg business flash. here is nejra cehic. nejra: nestle cut its full-year forecast. they said revenue will rise out 3.5% on an organic basis but sales growth ame came in below analyst estimates. we will be speaking with their c.e.o. at 10:30 u.k. time. russia's third quarter revenue rose 4.5%. sales broadly in line with estimates. company does not report third quarter earnings. lufftansa shares have soared this morning after it raised its profit forecast. fuel costs fell. intel spiked to overturn a record 1.06 billion euro european antitrust fine has received a boot. the company's appeal should be reviewed by a lower court. the case could have ramifications for a growing list of disputes involving other u.s. tech giants. a final ruling is expected in six months. francine? trey: thank you so much. it is decision day at the e.c.b. anticipation is building that mario draghi will delay any extension of the q.e. program to december. i

david: this is bloomberg. ♪ vonnie: this is "bloomberg markets."ore from the newsroom. a category two storm with maximum sustained wind at 100 miles an hour. near major hurricane strength. rainwater from hurricane matthew caused flooding. the river continues to flow -- with forecasters to crash above 25 feet on friday. with half of the fatalities in north carolina. it was still costly. the storm destroyed more than one million structures and forced businesses to close, temporarily putting thousands of people out of work. matthew probably caused $10 billion of damage. insurance companies will likely be liable for 6 billion of that total. global news 24 hours a day powered by more than 2600 journalists and analysts in one 120 companies. this is bloomberg. vonnie: it is time for us to look at the pressure points and corporate america's's ability to adapt. becomesrnout inevitably a big issue in a presidential election. historically, the u.s. is near the bottom of the percent of eligible voters at the polls. this is according to the pew research center.

this is bloomberg. angie: the reserve bank of australia has kept the country's cash rate on hold. the real interest here was in what everyone has to say. we have call allen joining us now live from sydney. what did the rba have to say? paul: like so many central banks, it is all about inflation. on that topic, the rba's at the current policy, the cash rate at 1.5% is consistent with meeting the cpi target overtime. inflation is weak. low the banks target band. but the new governor has been changing the language around inflation. a couple of weeks ago, he famously used the phrase that the rpa are not inflation nutters. swaps traders saw and analysts widely expecting the rba not to move today and they did not disappoint. they did not move. they said the policy was consistent with sustainable economic growth and jobs growth over the near term. the aussie dollar, little changed on that decision. youssef: the commonwealth bank ceo is continuing his appearance in front of australian lawmakers over banking con

tomorrow on bloomberg tech, our bloomberg coverage continues. be joined by the vp amazon and google have been investing a lot of money into a drum delivery. how'd -- on drone delivery. how do they get beaten to the punch by a startup and re-know, nevada? that is next -- in reno, nevada? that is next. ♪ emily: the commercial drone market in the u.s. is projected to top $1 billion by 2022. everybody is fighting for a piece of the pie. one interesting segment of that is delivery drones. amazon and google are investing heavily, but they may have been beaten to the punch by a startup in reno, nevada. ♪ >> there are already more than half a million drones registered in the u.s.. there is nothing quite like a flying robot delivering a package into your hands within minutes of placing the order. that is a magical experience. >> that experience is not as far away as you might think. flirty is the first company to get government approval to make deliveries by drone, beating out amazon and google. ♪ ip, are you ready to go? ok, we are clear and ready for y