nejra? nejra: yvonne man in hong kong, thank you so much.e are asking the question on mliv , what is on everyone's mind this week? what is the most to blame for the stock route? you can join us on the mliv team plus tv on your bloomberg. let's get a bloomberg first word news with debra mao. brexit talks are set to be on hold because theresa may's cabinet is not close to agree on a way forward. be put plan is likely to forward before next monday's statement. a report to the national institute of economic and social research says a no deal brexit would shave percentage points off u.k. growth. the trade accord that keeps most of the current arrangement would see gdp growth by 1.9%. the new fed vice chair back to the central banks plan for further gradual interest rate increases and suggest policymakers won't change course in response to political pressure. the new number two at the federal reserve downplayed the potential impact of recent stock market turbulence, noting the fundamental levels of the economy are very solid. billionaire

manus, nejra. nejra: juliette saly in singapore, thank you.la has been forced to find an independent chairman to replace elon musk in regards to fraud charges about making the company private. they will have to add two new independent directors to oversee the tweaking and other medications about -- tweeting and other communications. musk asking you whether would reach a settlement. we got the answer to that. is this going to satisfy shareholders, seeing as he was still have an operational role? guest: yes, i think it will. one shareholder proposed a motion which would see these exact same measures take place. more independent directors coming on board. they rejected that proposal at the time. if anything, they wanted less oversight over elon. the want to can't talk about are the ones that would be interested to invest in tesla now there is greater oversight. theprice is $420 prior to takeover and now it's $270. given this oversight, there will be more interest in getting shares. manus: this is a defining moment of one the tweet came out to say

nejra: thank you.et's look at what you should be watching today. a rate decision due from the reserve bank of india. the winner of this year's nobel peace prize is announced in oslo. and we get payroll data out of the u.s. at 1:30 a.m. london time. the chief economist at berenberg is still with us. is the jobs data and wage growth data today going to show us that perhaps inflation could still be the missing piece of the puzzle of all the various things that push 10 year yields up? >> we have been looking for so long for inflation to go up. we have been watching signs of it. it is a gradual process. whatever the data reveals today, we should not read very much into it. first, we have the florence. world gotnuary, the excited about what seemed to be an unexpected acceleration in u.s. earnings. the next month it was revised away. i would not react very much to whatever the data are today. uptrend is intact, but whatever the data show, i would only react to a quarterly average rather than the precise data.

nejra: good point. i wanted to pull up, you mentioned the debt, i wanted to pull up the ddis function on the bloomberg for ab inbev. this is a company with $100 billion in debt. i think it's pretty insane. with this function, you can see the debt going all the way out to 2048 there. up next, we bring you stocks on the move this morning, including ab inbev. i think nejra was about to mention the stock, just getting pounded after cutting in half its interim dividend. investors don't like that. they want the money. we talk about why next. this is bloomberg. ♪ nejra: this is the european open. we are 10 minutes into equity trading in europe. let's get our top stories now with dani burger. dani: we are in the thick of earnings season, with negative market reports moving stocks lower. ab inbev, stocks declining over 7.5% after they slashed their dividend in half, citing weaker sales in the u.s. and weakening e.m. currencies. shareholders are skittish around this stock. one of the biggest decline ares dropping

nejra: all options on the table. pboc governor said the central bank is preparing for a worst-case scenario as the u.n. sinks below seven per dollar. we will hear from our exclusive interview with the boj's kuroda. a blow to germany's political stability for which will offer the greatest trading opportunity. manus: welcome to "daybreak europe." after $10 billion worth of losses, sears files for bankruptcy protection. this has been something which the market has been speculating a great deal about. our headlines talk about the issues for sears. they are a company mired in debt, deserted by shoppers. it is official, they are gone. the chief executive and hedge fund manager has been trying to prop up that retailer. years of realty -- of retelling history, it is gone. whatyou think what is -- it is happening from the amazon side and online delivery side, this is what the challenge has been for sears. it is the number one shareholder among the largest creditors. you just think what is happening on the u.s. retail sales. i

nejra: great to have you with us.ow, markets certainly seemed to be cheering this victory for bolsonaro, but how long will they actually give him to turn things round? in other words, how long could the rally last? is a greatt question. ,here will be almost certainly you know, a kind of happiness rally as a result of this. the market will say we have got a fresh start in brazil. remember that a lot of the optimism here is based around the notion that we have not got a worker's party victory, which is something that the investment community did not want to see because they wanted to see a government that really has, you know, a serious stab at brazil's fiscal problems. how long does bolsonaro have? he has a mandate for some years now. they will give him a little bit of time. we probably will not see anything this year in terms of meaningful adjustments. the consensus seems to be we might get some action in the early part of 2019, but of course, it remains to be seen how well he can get the support needed for that. manu

nejra: that cost income ratio, down to 72% is a key thing. something to drill down in terms of synergies from global wealth management. what else will investors be focused on? there be questions around the investment bank? >> absolutely. questions about the investment bank. what people are trying to understand really is what next after having successfully executed a retooling, focusing to wealth management. how is that growth going to pan out from here onwards? nejra: yeah, where is the growth going to come from. thank you so much. coming up, our interview with the ceo of ubs. you can see that 12:30 this afternoon london time. he is in london for that strategy update. give him my regards. let's see what he says. a growth bank. he is there for the long run. how was that transferring itself into a variety of markets? a haven of bonds, 311. let's hear more. not enough to change the direction of the fed. you might like to have a few bonds in your back pocket. let me tell you about volatility. 22

the dial has shifted, nejra. nejra: that is the first time that happened since march 26. it is the same thing we're seeing in the asian session, gains in the msci asia-pacific index overall, significant gains than 1%. infotech has been leading, gaining as much as 1.3%. --s is about netflix impacting those semiconductors as well. we saw the stoxx 600 close higher. we will see if that happens again today. ftse futures higher by .4%. we cannot forget the fed minutes. the 10 year yield on a three point 17 handle. bloomberg first word news. humphrey in dubai. donald trump says it would be bad if saudi arabia's crown prince knew about what happened to missing journalist jamal khashoggi. ,e expressed skepticism comparing it to your against supreme court justice brett kavanaugh. speaking to fox news, lindsey graham lashed out at mohammad bin salman. >> this guy is a wrecking ball. he had this guy murdered in a conflict in turkey, and to expect me to ignore it, i feel used and abused. i was on the floor every time defending saudi arabia because it is a good ally. is to meet toxic.

nejra: seven is not an important number.ark cranfield taking it from equity to oil and the dollar. bloomberg mliv strategist, thank you. can follow mark and the rest of the team and join the conversation on the question of the day by going to ib plus tv go on your bloomberg. the question of the day is about the equity rout. what is the single biggest reason for the stock rout? now let's get first word news with debra mao in hong kong. saidter: brexit talks are to be on hold because u.k. prime minister theresa may's cabinet is not close enough to agreeing on a way forward. source, no new plan is likely to be put forward by the british side before next monday's annual budget statement. meanwhile, a report by the national institute of economic and social research says a note yield brexit would shave 1.6 percentage points off u.k. growth next year. by contrast, a trade accord that keeps most of the current arrangements with see gdp growth by 1.9%. chair richardce clarida has backed a central bank plan for further gradual interes

nejra: thank you so much.loomberg's finance and investing manager and annmarie hordern with our stocks to watch. next, we speak exclusively to of barclays.he ceo he joins us after 7:00 this morning london time. love to discuss. -- lots to discuss. tune in to bloomberg radio as in the dab digital radio london area. this is bloomberg. ♪ >> good morning from dubai. this is "bloomberg daybreak: europe." nejra: i am nejra cehic, live from the city of london. these are today's top stories. manus: is the selling over or just a cause -- pause? asian stocks inch into positive territory. u.s. features returned to the red. crude gets crushed as opec goes into full production mode. we are in riyadh after strong rhetoric from the saudi oil minister. a big day for big banks. deutsche bank misses on equities trading, but the bank is "on track" to boast a 2018 profit. the barclayss from earnings, as well as an exclusive conversation with jes staley, the ceo. nejra: 7:01 in london, let's get to the breaking news. third-quarter

♪ nejra: good morning. i am nejra.anus: this is "bloomberg daybreak: europe" and these are today's top stories. , the mostna rallies in two years. sure of the private sector and futures reversed earlier losses. the relation. steven mnuchin, the importance of saudi relations even as a chorus of leaders press the key them -- the kingdom. outlook is stable. italian bonds may get a boost. budget response will be sent to the eu this morning. ♪ manus: the budget airlines, ryan delivers the first half drop in profit in five years, sticking to the diamonds they took us to a couple of weeks ago billion. it shocked the market and they talk to buy the impact of strikes and the impacts of fuel charges on their business. the numbers, net margin it dives. they have been cutting prices to get people on board. sales are up 8%. the shares are dropping. of course, michael o'leary can put of those strike at ryan air in context later. what does michael have to say about his relationship with the union? his relationship in terms of negotia

nejra: u.s. bank shares have been underperforming the rest of the market this year despite rising rates, global growth, etc.. , as we, morgan stanley look ahead, does what we have seen set them up to do well? >> the investment banking portion, analysts are skeptical. however, commodities trading has been strong as well as equity issuance. ipo's look strong as well. these are areas which goldman and morgan stanley typically does well in and can perhaps over shadow and help boost earnings even if investment banking is disappointing. matt: the stock has been horrible. goldman sachs is down 15%. how much do u.s. bank earnings reflect what european banks earnings are going to look like? do the big banks in europe tend to follow the likes of goldman sachs are morgan stanley? >> the same macro environment that is going to affect u.s. tanks has bearing on european banks. european banks, it's going to diverge. for example, italy closure or not. one trend is what analysts say is a revitalization of the val

nejra: i do.t bloomberg was expecting before these numbers was an improvement in revenue likely to be continued in the third-quarter, supported by a weaker swedish krona and a bullish sentiment. what the numbers are showing is third-quarter net sales coming in at 53.8 billion swedish krona. that is a beat on the estimate. third-quarter adjusted operating point 8 billion swedish krona. upbeat on the estimate of 2.7 7 billion. the ceo saying that they expect a 5g trial cost to remain on high levels. a lower fourth-quarter seasonal affect though. it is a beat on the third-quarter adjusted operating profit. the sec probe will likely result in monetary measures, coming from the ceo. manus: onto global advertising. this is incredibly important if we are looking for concerns under trade and spending. growth,arter organic 1.5%. missess. the analyst -- the analysis. they will sell their health unit , they say that has held back sales. they are planning to sell their health unit after a strategic review. yo

nejra: let's take a look.f you look at the function, the best performer is pearson, up more than 6%. what we have heard is that it and its full-year adjusted is on track for profit growth with revenue in line. not only that, but we have been upgraded. a number of things feeding into positive sentiment. and we spoke to the ceo in the last hour, up 2.7% for akzo nobel. and if we look at what is happening to the downside in terms of some of the worst performance we are seeing. this equity down 2.5%. we are seeing interesting moves in a u.k. property and berkeley down 2% as well. -- barclays down 2%. matt: markets moving a little higher after the big rally we saw in the u.s. yesterday. earnings seem to be part of this as they should be. a lot of people have been saying , why aren't we looking at the fundamentals? i guess we started doing that. it brings us to today's mliv well earningsh is drive fresh record spike year-end? joining us now is the cio at saxo bank. do we hit record highs? likely considering we have

nejra: got it.riefly then stephen, do you think despite the italian census, you can get to 120 on the euro-dollar at the end of the year? guest: you seen our forecast there. the forecast remains 120 in euro-dollar. we stand by that. that forecast coming from the fx group is much more dollar weakness than a strong rebound in euro. remember, as we highlighted earlier, we feel the dollar is very overvalued at the moment. the reason if there is because of concerns about trade. if we see more deals like we saw over the weekend in the nafta region, then we continue to think this is more about the u.s. and china, and the dollar will weaken off. we stand by our 1.20 call. saywell, so great to have you on the show. he will be joining us on radio. christine lagarde joins us for an excessive interview 4:00 p.m. u.k. time. this is bloomberg. ♪ anna: this is the european market open on bloomberg television. here are your headlines. canada joins the party. the u.s. and its neighbors agree on a trade deal to repla

manus, nejra? nejra: juliette saly, thank you so much.opulist government has told the eu is willing to reduce its rulemaking -- rule breaking budget next year but needs to spend more now to help its poorest citizens. prime minister giuseppe conte says there is no need for them to go beyond that in 2019. >> the 2.4% target is our upper limit. we can still reassess during the budget implementation a containment so we do not necessarily need to reach that 2.4%. for sure we will not exceed it. from bmoephen gallo capital markets is our guest house this morning. when you look at europe and italy, they have this big reprieved in the spread. you would say in your notes that the abruption between brussels and italy -- your option -- uption between brussels and italy -- do i get ready for more volatility in the euro in 2019? stephen: i think you get ready for a bit more weakness, that's what i would say. this is not just about italy's budget deficit for next year and the year after. this is about the rules of the eurozone. one might think that it'

nejra: good morning from bloomberg's european headquarters in the city of london. i am nejra cehic. manus: and i am manus cranny in dubai. this is "bloomberg daybreak: europe," and these are today's top stories. arabia isdi reportedly preparing an explanation for the disappearance of journalists jamal khashoggi. china inflation accelerates again while the pboc strengthens its fixing by the most in three weeks. credit agricole says the central bank will defend the currency. pessimism. he says are no deal brexit is more likely than ever before even as the u.k. and france sprague positive -- strike a positive tone on the deal. manus: a warm welcome to this show. let's give you a quick benchmark in terms of your trading notes this morning. dollar-yen flipping it around, near the one-month high. you are seeing a softer tone. a slight skittishness to this market. going toi know you are talk about dollar-yen. cable is really prevaricating. what will it take to unleash cable above 1.34? 10 year government bond yields, new england above 3%. not if you listened to barclays. they would say you

nejra? nejra: thank you so much. yvonne in hong kong. asking the question -- as we see the rebound in equities after a bad month for global equities in october, what scares you most about the markets? you can joined the debate. us on yourto bloomberg. manus? manus: let's get to the release of the numbers. a pretty splendid beat. 1.58 billion -- 1.4 billion. a near doubling from this time last year. however, they temper that really magnificent topline number, third-quarter adjusted e-bid with reflections. they are targeting 800 aircraft amendment, the a-400 slower delivery of those plants. that as a consequence in terms of the guidance for 2018, the latest delivery outlook. airbus, they are saying for the full year will be about 5 billion euros and they saw that being 5.2 billion euros so you have the significant beat on the big adjusted e-bid. 800 planes delivered. that will include 18 a-220's. the a-350 program is doing well. the adjustment in the forecast is including the a-220 impact on that. that is critically important. we want to k

nejra: thank you so much.turn to italy and the budget was rattling equity and bond markets today. the 10-year yield is the highest since may. the ftse may be selling the most since september since juncker warnediche of a selloff. always a lot of headlines through the morning through various parts of the italian government. some of what we heard this morning so for -- sum up what we heard this money so far. >> the markets are scared now>>. they have had a few days. they reacted, but not so strongly. but now it is looking disturbing, especially for the 10-year yield. there is a ministry around the fiscal targets. the finance minister did not really sheer -- did not reassure his colleagues. he suggested the grease scenario. the economy is not that week. the italian government needs to say what its fiscal targets are. it has been several days since then at the deficit target. they have not given us a proper chart. this is very weird. it is disturbing the italians and the market. colleagues are not convinced. anna:

nejra. nejra: we love to get these calls.t $100-yen call from you. .able from you what would you be buying? >> we think it is in the by zone. deal fears kind of growth. we think ing will be a soft dealer and cable can bounce back to 1.32. nejra: coming up, america's at 11:30vary bp cfo london.e this is bloomberg. ♪ ♪ tom: red and green on the screen. nejra cehic in london. i am tom keene in new york. positive nasdaq, a little red. huge volatility yesterday. right now, here is taylor riggs. taylor: sources in washington say the u.s. is preparing to slap tariffs on all chinese imports if talks between the presidents fail. they are expected to meet briefly at the g20 next month. that would mean the introduction 250 billion ine new import duties. we have really helped rebuild china. they have been taking out an average of $500 billion a year for many years. not going to happen anymore. taylor: u.k. chancellor philip hammond has promised an and to austerity despite weak growth forecast and uncertainty over brexit. as well as extra

nejra: i am nejra cehic in london.ompanies major including ikea and hp are turning toxic waste into your next carpet. you need to furnish your apartment in dubai? manus: i do, you can bring a gift. let's talk about bloomberg.com. u.k. is coming after big tech and new digital services targeting facebook and google, and have been unveiled by the chancellor in his budget statement. nejra: most stories on the bloomberg terminal, merkel's decision to quit as party leader caught everyone including her closest allies by surprise. investigators is scrabbling to determine why lion air plunged into the java see. -- the java sea. manus: let's dig deeper into the stocks that have delivered numbers today. this global market business, this is not going to be a pretty take by the market this morning. this is big pressure. >> it is big pressure, the biggest bank bnp paribas revenues are closer to the numbers of deutsche bank than other european peers like barclays. 4.5%ies trading, up only in the third quarter. if you look at the fren

stay with us. ♪ nejra: i'm nejra cehic in london, with tom keene in london.as the day off. while base metals have taken a hit amid the u.s.-china iron has rallied. let's bring in will kennedy and jane foley as well. will come a what is the story of iron ore diverging from other is thetals -- will, what story of iron ore diverging from other base metals? >> it is the highest it's been in more than a year. that really shows maybe the impact of china's stimulus program. iron steel mills in china are pumping out very strong volumes of steel, drawing on iron ore from australia. you also look at copper and oil to track the chinese economy in the state of commodities there, and they both had not so good months. extent have the commodity markets been hit by the general feeling of risk that's been driven by equity markets in the month of october? guest: i think it's been quite a strong correlation, actually. at the beginning of the month, oil was near $86 a barrel, the strongest since 2014. as we got the equity markets that came back very strongly, about $10, i think

nejra: is not happened yet. nejra: marks, thank you so much for joining us.ou can follow insights from mark and the rest of the tea on bloomberg at mliv . 1.15 78 is where we are, that is a rally in the euro. to see where their currency will go. of course, mark doesn't think that the euro rally will sustain. ali forster of the dup yesterday, setting of her red line, raising big questions for about the irish border. we will hear from prime minister may. in the past, some of her speeches have led to a drop in the sterling. we could see some volatility when she is talks. asian equities over all are down for a third day, that emerging-market equities are taking the heat in the fx space. the indonesian rupee is at a 20 year low. the indian rupee as well. other than that, emerging-market fx is fairly steady. manus, what does mohamed el-erian have to say about emerging markets? manus: he says, you have dollar strength, oil strength, it is perhaps a little soon to jump e.m.. features are indicating a nice bounce at the moment. s&p is also up, getting out of the g

i am nejra cehic. nejra: and i am manus cranny. this is bloomberg daybreak: europe.hese are the days top stories. nejra: clearing the deck, president trump turned his attention back to beijing. chinese equity markets are closed. the imf'she alarm, word about the world's economy. christine lagarde says the fund cut -- the final cut its close outlook. ago, i pointed to clouds of risk on the horizon. it is not pouring, but there is a bit of a drizzle. today, some of the risks have began to materialize. nejra: and decision time for borris johnson. the former united kingdom foreign secretary makes a speech later. will he challenge to resume a for the top job in british politics? ♪ manus: welcome to the show. the top story is the reaction to markets the best the reaction of markets to what trump has done with mexico and canada. does that embolden his war toward china? stephen engle is standing by for a this morning. these asian markets are playing catch-up. as trump emboldened by his went with the new nafta? likely: he sure would say so, because of course he has .evamped n

nejra: the bank of japan stands hat.ing of easing says they will much heat the inflation target for years to come. this is bloomberg. ♪ manus: live shots of tokyo. dollar-yen, the yen a little lower. we are waiting for mr. kuroda speak. japan's inflation target, it is going to be at least 2021 until they make that target. i wonder if he will refer to qe? nejra: let's get back to the earnings. headline, third quarter business net. 2.3 billion euros. a comfortable beat on the third quarter business net.

nejra: i am nejra cehic. these are today's top stories. the fed great again, the central bank chairman heaps trump like praise on the u.s. economy. >> we are gradually moving to a place where it just rates will be neutral. we may go past neutral, but we are a long way from neutral. manus: could investors get the message on the 10 year treasury note? asian equities and currencies think. -- asian equities and currencies sink. the government commits to a lower deficit target in 2020-2021. there is more blonde trouble ahead. nejra: good morning, welcome to "bloomberg daybreak: europe." 7:00 a.m. in london. bonds,text globally for the 10 year treasury yield is up. the two-year yield is approaching 2.90. we have money out of treasury today. yesterday, we saw a little relief in these btp markets. the italian government conceding a little, so we saw the 10 year drop 15 basis points by the end of the session. the decline could continue today. we pulled back from the five-year high yesterday, we will continue pulling back today. bunds look like they

nejra: thank you. ceo -- hsbc ceo john flint has revenue up 9% and the so-called jaws figure is moving in the right direction which means they have managed to increase revenue faster than costs. is jonathan, senior european bank analyst for bloomberg. good to see you, thanks for coming in early. you are going to be on the analyst call that starts at 7:30 a.m. london time. what will you be asking? jonathan: the focus will be on margin because revenues were up 5%. the cost are going in the right direction but don't forget, they have a huge investment program. they are investing 15 billion to 17 billion over the next three years. they are in charge of the rate of growth of that and it's more about hong kong, cost of funding , it's getting competitive over there. the net margin rose a basis point in the quarter. , as the u.s.iation raises rates, was going to be one of the key revenue drivers and that is at the risk of stalling. good morning. 0.9 innk is back at terms of the tliv we have. a lot of this is t

nejra: a great deal says president trump.n europe, angela merkel prepares to step down from party leadership, what does it mean for the continent and brexit? big earnings day, bp set to report in the next hour. we will break down those numbers. manus: these markets are reacting to what could be a great deal between united states and china. the latest words from the united states. let's look at the you want -- y uan. we are waiting for a feast of data and results across the bloomberg terminal. citigroup is saying 7:30 is the line in the sand for the pboc. that is the yuan. where do we go next? the pboc did not stand in the way of a lower yuan. let's have a look at the futures. a lovely headline. trump,ase from donald and the value, trading at 15.5 is below its five-year average at the moment. that is a critical thing coming through from the valuation side of the s&p 500. you have a nifty under pressure in the emerging market space. -- you will kick this off. nejra: even though it is only 6:00 a.m. in london we are building up

nejra: the buyback program is running ahead of plan.said today don't confuse one buyback program with our ambition and potential. what is the potential for buyback? how ambitious can make it? sergio: let me clarify that statement. rulesswiss stock exchange we have to declare an amount and in three years we need to complete the program. that has nothing to do with the cash flow that we will generate over three or four or five years. we are announcing every year our ambitions at the beginning of the year. we will buyback $550 million. we have exceeded that target with $650 million worth of shares we bought back. in january when we announce our 2018 that we paid in 2019, we also announced our share buyback intentions for 2019. nejra: you have already exceeded the target. does that mean you slow down or speed up from here? you are already ahead of your on target. clear we do not retain capital above but we indicated as being our target operating capital levels for regulatory reasons. 3.4% leverageound ratio. if we don't need capital for gro

nejra: thank you so much. kevin costelloe in rome.ixed bag of earnings, what can we expect from european banks when they report wednesday? we get numbers. thursday, we see ubs and lloyd's. fargo asset wells management is still with us. i wanted to ask you on italy. you like the inking sector. which areas specifically in investment grade? have had an interesting year in investment grade. it has been a tough year, given where yields started. we are still in the context in europe where yields are low. yearalked about the ten bund. as the have widened markets have had to deal with italy and the tapering. that has impacted triple b credits quite a bit. we see more what in -- widening. a couple of reasons we still like financials. it is one of the sectors that is improving in terms of fundamentals. stable. it is one of the areas where the ecb has not been buying so much. nejra: sorry to jump in. of bond fundsent are trading. >> it has been a tough year. traded one month in a particular direction, it has a tendency to reverse. liquidityaccou

. ♪ nejra: overregulated.eter the speak to a guest who says legislation around the financials that there -- financial sector has gone too far. 10 months on from the new -- european union rules, the full impact from the legislation is still to come. plus, what the midterm elections in the u.s. could mean from wall street. welcome to "bloomberg markets: rules & returns." i'm nejra cehic. rules and returns is a show where we delve into the regulatory challenges and

i'm nejra cehic.eturns is a show where we delve into the regulatory challenges and opportunities of financial markets around the globe. but first, let's get a roundup of this week'

nejra: and a scandal.id go from loki lender to the subject of one of europe's biggest and most brazen cases of money laundering. and what is next.

i'm nejra cehic in london.

nejra: and a scandal.nder to the subject of one of europe's biggest and most brazen cases of money laundering. and what is next. welcome to bloomberg markets rules and returns.

h -- younever chair have nejra cehic. terminal. the this is bloomberg. ♪ >> there isn't any be plan. i said there is the cap, the 2.4 compared to gdp. cap.ll be our , bute ready to reduce there isn't any plan be. we are betting on our kids future. that was -- anna: that was the italian prime minister. he says the euro will be the currency of not just his children but his grandchildren. we will hear from mario draghi and company tomorrow. the financials not taking is higher over in italy. so the not -- luxury names taking is a little higher in the target market, not the financials. whatstrategy around italy, do you do in the bond market? alan: it's not a wonderful narrative to put it mildly. a yield in euros is very you can take that yielding euros in at 3% to make it a yield in dollars. the way we look at italy, it's a chickens way of doing it. we mandate what we can, particularly dollar mandates, do we think there will be a default? no. that's crazy. example of japan where the level of government debt is a poor predictor of defaul

i am nejra cehic in london.

spoke to nejra cehic in london. >> our next focus will be on developing more of our ultra high net worthgs. enlarging and bringing our expertise we have globally to that area, together with family office capabilities into the u.s. and tapping a market that is promising for us and under ubs.- under-tapped for growth, we do for expect $70 billion of inflows in the next year to come from a segment of clients. >> talking about expatriate. u.s., what-- in the can you offer clients, particularly in global wealth management and other areas your u.s. competitors cannot? say our of all, i would inflows and outflows in the u.s. are in line with industry standards. if you look at our u.s. , the best proxy to understand inflows and outflows on a competitive basis is to look at invested assets, and we have been growing in line with our peers. we have the same kind of universe of new money. in terms of competitive, we can offer the capabilities we have outside. it makes us unique. we are the only truly global wealth manager in the world. we have leadership positions in all main markets. not only in th

later on, nejra cehic spoke with the danish financial supervisor. >> the bank is solid, generally exceptionallyea we have looked at i would not see any likelihood of massive changes in relation to retailer customers. obviously, there will be some, but danske is not the only bank that has it -- had issues with money laundering. guy: you can use this for any stock and it shows you one of the key metrics surrounding stocks like this. 52 week high, 52 week low. low.e at the 52 week the other thing i want to highlight is the consensus rating around this, has yet to really move. buys on dstill 17 bank. not theto say they are only bank under investigation for laundering and that that is supposed to be somehow ok. -- that is supposed to be somehow ok. we have a bloomberg exclusive. the most significant known supply chain attack against u.s. companies chinese inserted tiny microchips to infiltrate the data servers of almost 30 u.s. companies. some of those companies disputing some of bloomberg's reporting. the company that assembled those chips, the story is in the latest "bloomberg businessweek." joini

nejra: law enforcement agencies investigating explosive devices mailed to hillary clinton and barack obama. on monday, police designated a python -- pipe bomb at the residence of george soros. it was said the president and to secretary failed understand the seriousness of their attacks on the media. >> the media also has a responsibility to set a civil tone and to stop the endless hostility and constant negative and often times false attacks and stories. have to it. have to do it. [applause] they've got to stop. bring people together. sophie: the crown prince of saudi arabia has promised justice in the murder of jamal khashoggi, speaking at the investment conference. he said he would bring the killers to court and prevent a diplomatic breach with turkey. he offered no new information about what happened at the saudi consulate istanbul. >> it is a heinous crime that cannot be justified. saudi arabia is carrying out all legal things to finalize the withtigations to kwok rate the turkish government and present the perpetrators to the court and take their judgment. you k's prime minister

nejra: talk to us about equities trading.ere high expectations of this in the market. >> we have done well from credit to equities, to rates, currencies. very pleased with our market performance. manus: this naturally leads the market to a couple of questions. handshis strengthen your in pushing back at bramson in terms of his call, delivering better returns? any slap that activist investor down with these kinds of numbers? jes: we look at the profitability of the overall group. we generated an 11% return on capital in the first quarter. and 10% plus return on capital in the third-quarter. part of that has been across businesses. are consumer businesses in the u.k. has done well. our consumer business in the u.s. has done well. corporate business has done well and investment bank has done well. the markets business and investment banking, trading equities etc., has generated a double-digit return over the last nine months. that is what you want to do. we like the diversification of our model. are enjoying the profitability we

nejra: good morning from bloomberg's european headquarters. is bloomberg daybreak: europe and these are today's top stories. anna: sounding the alarm. a message for jerome powell. >> the policy is real for many countries. anna: donald trump targets high oil prices. brent crude drops below $80 a barrel. in europe, officials hold intense talks. can they strike a provisional deal by monday? manus: welcome to the show. bonds are rising in terms of yields. it is time to buy tenure government bonds as we see them rise. the spike in volatility they say shows nervousness amongst investors. they go slightly more overweight on duration. keep an eye on the dollar index. donald trump does not like what the fed is doing. i don't like it. i think we don't have to go so fast. he says he likes low interest rates. keep an eye on the yuan. we are kissing distance of seven. the bets are mounting. $12.5 billion we will break seven. this is the chorus line which is selling yuan. jpmorgan along with bank of america, merrill lynch. the voices of dissent are rising.

nejra: good morning from monday -- london. manus: this is bloomberg daybreak: europe. these are today's top stories. anna: asian equities trade deeply in the red. u.s. futures indicate a lower open. >> is the correction we have been waiting for for a long time. i really disagree with what the fed is doing. panic --this region to reason to panic? perhaps short-term pain is unavoidable. ♪ a very warm welcome to the show. 10 year government bonds, do you find a haven the want to buy? money flowing into 10-year futures. we have a big bond auction today. as a be futures down. mr. trump thinks it is good. precedent or diluted? global stocks under pressure. semiconductors really taking a hit. the worst day in japan since march. we are trying to grapple with yields at 3.2%. is that enough to unseat equity gains? anna: the selloff has gone global. the havens are clear. bond markets, yen. do you blame corporate profits and the realization that the trade tariffs are having an impact? do you blame the chinese crackdown on luxury goods? do you blame the fed? president trump blaming

nejra: -- anna: thank you very much.entral bank has cut the amount of cash lenders must hold as reserve as policymakers seek to shore up the faltering domestic economy. chinese stocks are slumping today on course for their worst performance after the october holiday in 10 years. discuss, thew to investment director at and angie -- nsg. triple part,the the first time we have seen that from the pboc this year. >> last week the chinese market was shot. we saw 10 year yields rising, strength in the dollar, we so weaker data out of china. the pboc did look to cut that reserve ratio by 100 basis points, which is a positive announcement. i do not think it is going to do much in the scheme of things. it is a positive direction. they are trying to increase that within the markets and increase lending for banks. >> i have a chart that shows that. this weekend's announcement won't show up, it will take a few days. but that is the history. suggesting that is the direction of travel. what does this do to your overall view that the se

they own curate, they own pizza coffee, nejra bread.out these coffee products. david: and now coca-cola has gotten in the game. they will have coffee shops all around. alix: that was something that didn't make a lot of sense to me. cheap, and it was also not an area where coca-cola has expertise. there a lot of geographical footprint and logistical operations involved in buying. coca-cola just got done reconfiguring its bottling operations and pushing them back out to take them off that logistics burden from the company. it's interesting to see them feeling pressured to jump back in and take that footprint in be competitive. david: it is british, and the ceo of coca-cola is british. >> i was asking my british colleagues, it's a much bigger deal over there. up,: coffee prices are that's what i can tell you. >> you don't want to export what is strong. alix: thank you so much. coming up, speak with one of the winners of the 2018 nobel prize for economics. you will be joining us from nyu. and base metals getting hit, particularly aluminum.