let's bring back our senior economist for bnp paribas.l it as a questions or raise more questions? >> i think it will be the same questions we are trying to answer. we've had a house blueprint. we get a little closer to reality, so i think that's a good thing. steve mnuchin talking about a 20% tax rate seems pretty unrealistic. it's pretty fantasy right now. betty: why is that? if we eliminate all the deductions on the corporate tax side, we would only be statutory ratehe to 28% and keep it revenue neutral. a person you have to make up with additional cuts somewhere else or a reduction in spending which probably isn't going to happen. that 28% mark, every percent will be that much more difficult. starting fromly 28, we are starting from 31 or whatever. betty: trump is putting his reputation on the line, 20% is the red line for him. mr. dwyer: yeah, so was 15%. there's a new redline. cross out the old one and make a new one. will anything passed by the end of this year? i think that's optimistic. we have done analysis about best case scena

edmund shing is with us of bnp paribas. letters earlier and i want to talk about the wide path you see and what a corporate officer in the united kingdom would do with brexit. ceo of a idea how a united kingdom-based company of any size, how do they plan for next year or 2025? >> next year is straightforward, nothing changes. whatever happens with brexit, the first deadline will be 2019. that i am glad i am not in management of a u.k. company tried to figure out what to do because there are so many uncertainties. tom: i know it is inappropriate to talk about any migration at bnp paribas would do out of paris or london and frankfurt, but away from finance, do ceos in the united kingdom have your world of finance, knowing where libor is and where to an five-year paper would or could be three years out? >> i think financing for u.k. is there. i do not see anything changes in that respect for the moment. i do not hear u.k. companies crying out and saying our access to longer-term funding has been cut. the opposite. the banking

mark: a bump for the big banks. , and credit, bnp suisse are seen as less risky now. ♪ ♪ vonnie: livenew york, i am vonnie quinn. mark: live from london, i am mark barton. 16 minutes to the european close, let's get to the latest. be, jpmorganthe fs is the most systemically important bank. bnp, credit suisse all dropping one level in the rankings which means they will face lower capital requirements. do we care about these rankings? reflect think they international consensus after the crisis of how risky banks are. the rankings are an international match trick -- metric that gets imposed by regulators around the world, some of which have already higher levels than what the international numbers came out today, so you have to look down another couple levels. mark: what does it actually mean for the banks and their operations and finances? silla: these rules willfully take effect in january 20 19th, and what i think we have seen is banks as they prepare for this eventual date, they sort of changed their business a little bit. they reduced assets, they get rid of certain operations aroun

bnp?ulous parliament doesn't have a system the rest of us would take for granted, whether it is the bbc, a newspaper office or in financial services. there will be interesting to see how they deal with this. change on monday. of the seven party leaders, they will meet to thrash out a new system. that is one of the things they will address. mps will no longer be in sole control of their staff. what is also interesting about this is this sense of where does the trails stop? the worry, the next question will be, who knew what and why did they not report it? and it's that thing of knowledge is power. if you know something about somebody, as nigel said, the whip, they have this information. jo move us the mail on sunday. a wonderful segue. this concerns, top tories bathrobes pass at male aide. this is a story based on the recollections of a former olympic rower and conservative activist, alex storey, who has been talking to the mail on sunday and tells a story of how he went out for a drink wit

bnp paribas is another story. this and i will haven't asked you about -- as i look at this and i haven't asked you about tax. whether or not -- about banks. whether or not you play europe by the equity or by the credit. investori am an equity . i can find attractive options within tanking equity. the old model is changing because we are moving from a situation in which they were allowed to grow and work rewarded as long as it did result in over leverage. -- as long as it didn't result in over leverage. when they generate free capital, there is going to be potentially sending that to shareholders. it goes back to the desire of european authorities. is to lowern capital across the company's. -- across the company's. reduce the role. guy: that last question is important. the stocks, it is about bank phone. jpmorgan has invested an awful lot of money into technology and spends a lot of money and speaking -- and seeking out sums. if i look at banks through the filter of technology stocks, how big does the gap look betw

some commentary coming out, morgan stanley advocating twenty-year swaps, bnp saying you should be receivings's. >> what the bond market is telling you is that the fed has been clear and its objectives. if all things likely, they will raise rates 25 basis points in december, and in 2018, maybe to rate hikes if everything is ok. so yields are rising, but they will rise very slowly. policy is monetary easy, you have to think equity markets hit new highs unless geopolitical issues to braille markets. geopolitical issues derail markets. so continue to own high yield and emerging markets. david: very quickly, do you think oil line sides us and leads to this surgeon yields ahead? no, the problem with the situation in saudi arabia is we don't know what they will do with the people they have arrested. they all have large holdings in u.s. companies. one thing is for sure, we don't see inflation coming through anywhere. heads and willff be resolved because they don't have to sell their equity holdings. and hard big unknown to trade the markets because you don't have the information. david: thank you f

we were speaking to bnp paribas on bloomberg radio.ing the fundamental aspects of china remains intact. this is profit-taking from big names. they have been strong performers over the coast of the year. in terms of foot else has been a strong performer, we can't get away from the bitcoin story. bitcoin could narrow in on $10,000. this chart shows a big verizon bitcoin which has risen by as much of 17% during monday's session and up again in the asian session today. have a look at the blue line, which is gold. it has been rising this year, but nowhere near what you have seen in the bitcoin price. ayving a look at tor industries, the latest with a data rigging scandal. yousef: let's get back to one of our other top stories, crude oil, the energy complex trading lower. just above $63. the markets have been calm in terms of volatility. the consensus trade is towards a nine-month extension of the supply cuts between opec and non-opec. hit is not clear whether russia is fully 100% he hide a nine-month extension. also, how the geopolitics cou

we will break down the numbers and implications for policy with bnp paribas.pany's chief executive joins us and tells us how he plans to boost sales in japan and overtake ferreri. this is bloomberg. ♪ ♪ you are back with bloomberg markets. i am rishaad salamat in hong kong. haidi: a quick check of the business flash headlines. sony has word to a decade high on a blowout third quarter. as the operating forecast was lifted. it is the latest comes up for the ceo since taking charge in 2012. he has restructured the company and invested in key divisions, helping to restore sony's reputation. nissan saying it will resume car production within days after suspending operations on unqualified inspections, saying preparations for restarting output is now complete, while a similar measures will be in place at remaining factories by the end of this week. the transport ministry must give its approval before production can resume here it haidi: nomura shutting a lossmaking unit in london. we are told the group use capital provided by number to bet on stocks, bonds, currenci

also the bear upon -- bnp fell in that ranking.k: still ahead, we are live in istanbul for more on what is driving the latest rounds of market turmoil in turkey. also, syngenta was taken over by chemchina, the largest foreign takeover by the chinese. how has life changed for the swiss agriculture company? this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn in new york. london am mark arden in -- i am mark barton in london. let's get to turkey. we are joined by cosan cyclical us -- constantine. what exactly did the central bank do, and why have investors given the central bank the thumbs down? >> the central bank reacted to the nearest -- lira slide. bond yields spiked. the central bank step in by cutting off some of the cheap funding banks had access to, pushing up and funding costs by 25 basis points, affective as of tomorrow. the move helped trim some of the losses for the currency. what a lot of investors remain unconvinced, unimpressed. they think the central bank -- some believe the central bank needs t

. >> france's biggest bank, bnp paribas rose 8.3% to 2.0 4 billion euros.fell 86% >> in the past quarter, there was uncertainty related to the uncertainty in the market. that is why corporate's waited to see what was unfolding. and now we have see how it goes forward. it's not impossible with the clarification the ecb has given that it tapers off. you are relieved that the ecb decision and announcement last week? -- there willte be revolutions in the end of 2018 on the interest rate. so we will have to see how it unfolds. >> credit suisse's pivot to wealth management has propelled assets to a record high. , thets also accelerated news coming as the ceo began shifting the bank from trading to focus on the asia pac asset management. a little bit cautious about the future, but overall, pretty pleased with his performance. >> there's no good pipeline. -- the problem is what constraints -- [indiscernible] a lot of good conversations, but you don't want to pull the trigger because of the uncertainty with the fed, the central banks, and north korea. [indiscernible

developing market equities have been a bit of a magnet for investors, the likes of bnp paribas.betting on the resilience of domestic economies to better whether they inspected increase in the u.s. interest rates. we talked about zimbabwe yesterday. let's talk about it today. the benchmark index fell 1.3% yesterday. biggest decline since august 2013. what a rally we have seen year to date. this is an index that in the last 12 months has risen by fourfold, which begs the question -- are we witnessing and end to the zimbabwean stock rally before the army seized control of the country yesterday? julie: we are seeing stocks continue their rally, holding near the highs of the session with the s&p 500 up 7/10 of 1%. we see a risk on sentiment come back into the market, and that is exhibited in crude oil which was lower earlier but is in the green. the dollar is little changed, however if you look at the 10 year yield we are seeing a little bit of a bump up, three basis point as we see selling in the treasury market. a quick look as to what is on the move within stocks, only energies an

bnp paribas fell as well, forcing it to face a surcharge.rance and the netherlands have won the contest to host two london-based european agencies. the eu's banking authority will move to paris and the medicines regulator will move to amsterdam by march of 2019. the two cities emerged victorious after a series of secret ballots. nestle is amongst the company's exploring a purchase of hains celestial group. the food you want -- the switzerland-based company has a market value of more than $42 billion. representatives for hains celest ial did not immediately respond to requests for comments. after earlier forecasting it decline. that is after the collapse of rivals removed excess capacity in some of its biggest markets. the budget airline says pretax , held down by% the weaker pound. paschi has come out. ryanair has taken some capacity out as well. we have benefited from air berlin. so, it's all very good news for easyjet. we have come in at the top end of guidance this year and the forward outlook is good. sebastian: that is the bloomberg bus

we're bnp pararibas, one of thee big ggasunders.-h have recently s sd thehere they arere financing g gas. in a atherossil fuel governor alalsout money into ga w're sing somethi dangero that iunder thradar beuse ofhe gas iustry teing us is cln. nermn: cld you tell usbout at usuallyegotiato here thealks? he himself was involved in some gas compmpanies before he took n this position? >> he was a member of the spanish parliament. he was the president of two oil companies in the canary islands. then he was made a minister for environment. since then, he approved fracking a spain, well drilling in unesco heritage site and the canary islands, and the first shipment of tar sands from canada to spain. this is a guy not particularly pro-climate him he would say, then made the climate emission are. we have a huge conference of interest. nermeen: who appointed the climate e commission for the eu? >> the head of the eu delegation , appointed by the president of the european commission. byis actually proposed spain. he comes from the spspain ruli

if you are michel barnier, this is not a bad position to bnp review.ve to give anything away. you have -- you are holding all the cards. in terms of getting a negotiation finished, in terms of having the eu give up, that is not a huge problem for him. youd: john fraher, think for joining us from chicago. shery: coming up, we will look at the future of the fed and the ecb ahead of the big monetary conference in frankfurt tomorrow. we will have the details next. this is bloomberg. ♪ ♪ shery: welcome back. this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. as a federal reserve gets ready for its midi -- committee meeting, the last one of this year, philadelphia fed president tells bloomberg is expecting a rate increase. >> i have to look at all the data, not just the core number. if we saw that continued weakness, that is why it i penciled it in, if we see that weakness, i would be ok waiting a bit. i expect i will be supportive of an increase in december. david: his comments came ahead of a panel in frankfurt tomorrow.

. >> france's biggest bank, bnp paribas, rose 8.3% to 2.04 billion euros.however, income from trading bonds fell 26%. 801 euros a year earlier. >> i think in the past quarter, there was uncertainty related to the uncertainty in the market. that is why so many corporates waited to see what was unfolding. and now we have see how it goes forward. it's not impossible with the clarification the ecb has given that it tapers off. and we will find some more normal evolutions. >> you are relieved at the ecb decision and announcement last week? >> as you know, we anticipate -- we see the european economy is doing well. we anticipate there will be more revolutions in the end of 2018 on the interest rate. and also on the volume. so we will have to see how it unfolds. >> credit suisse's pivot to wealth management has propelled assets under management to a record high. profits also accelerated, the news coming as the ceo began shifting the bank from trading to focus on the asia pac asset management. he told me he is a little bit cautious about the future, but overall, he

bnp, credit agricole also down merger talks between t-mobile u.s.rint collapsed over the weekend you can see the stock took a big fall here, down 3% in europe on the economic front, euro zone composite pmi revised upward in 56 flat, that's down from 56.7 in september, but it still indicates solid growth that's well above the 50 mark, which operates expansion from contraction. mean time, accor hotels off the lows of the session. the declines came after the company's third biggest shareholder was arrested as part of what saudi arabia is calling a corruption crackdown keep in mind prince's kingdom holding company has extensive investments in hotel properties across europe, including london savoy, raffles, and moven pick and we finish with a turkish lira rising against the u.s. dollar the u.s. embassy in ankara, turkey, announcing it has resumed visa processing for turkish citizens on a limited basis. according to reuters, a source saying his country might reciprocate as a result. we're also expecting the prime minister of turkey to make a visit to the

bnp paribas trading up quite nicely. 10 then there trading up -- santander trading up.al with the energy story as well. that is how the market is breaking down. these are the index movers. let us break it down the other way. the market is positive. here are the losers. bp trading off a little bit. that's interesting, trading down by .6%. of theu have got some bond proxies weakening up a little bit this morning. a littlero is trading bit down as well. that is where we are seeing the weakness coming in. the story seems to be representative of what mr. powell had to say yesterday, matt. speaking of jay powell, let's talk about the fed chair nominee right now. dovish side to lawmakers at yesterday's confirmation hearing. he told the senate banking committee that the case for raising rates at december's policy meeting is strengthening. will say, senator, the case for raising interest rates at our next meeting is coming together. we don't see wages signaling any tightening -- any tightness in the labor market. there is no sense of an overheating economy or tight labor market.

unicredit rising, bnp paribas pricing. that is part of the rotation we saw yesterday.take a look at the losing side of the screen, you see asml right up at the top, so we are going to see some tech stocks. europe does not have a lot of tech stocks, but you will see some of them taking a hit today. one thing europe does have is chip designers, so i'm thinking of asml etc. . ,ou see one of the banks, hsbc down here, but not a lot of other banks, lloyd's, there. ,cb p, total, royal dutch shell as far as the oil producers on the losing side of the ledger, but keep in mind how big they are. if you look at it in index points, even a 0.3% move tends to be on the top 10 as far as losers on the day. let's move on to our next conversation. our next guest sat down and is giving me an interesting comment. healthy living and high real estate wages. low unemployment and declining deficits. it is one of the reasons they are optimistic about it happening. this is the interesting tidbit have already had. this is romanian gdp. definitely looking like it is accelerating. now.uest joins u

i want to play some of the comments that bill gross and the economist from bnp paribas said and how theyrast. >> he has been there for the past five years. equityxpensed in private as a salesperson rather than investing. i'm not sure what he knows about the inter-workings of the financial system. let's also play this. is that jerome powell has been on the fed for quite some time. he is a well respected member of the fed. agree withessarily bill gross's comments that this guy is coming out of left field. not being an economist is not a hindrance. he is well suited to continue the policy along the lines of janet yellen. gross being quite harsh calling powell a salesman more than a economist. growth is the outlier here? >> from what i have heard, yes. on a fed washer that powell was not an economist. to dismiss him as a salesman if you look at his background as an investment banker does seem harsh. in addition, he worked in government hand on capital markets and domestic finance and has several positions. you hear about people in washington who know how to play the game and get it done. me

they were formed in 2011 by former members of the bnp.sewhere on social media. on facebook they have nearly 2 million lights, head of the labour party, 1 million, the conservatives, around 650,000. the uk's most successful political party on facebook has been a wash—out when it comes to electoral success. the deputy stood in a by—election a few yea rs deputy stood in a by—election a few years ago and lost her deposit, winning just 56 votes. and the leader, paul golding, stood for a london mayor last year. and in the first round he won 1.2% of the vote. i have been talking tojoe walsh. he is an american conservative talk—show host. he is also a former republican congressman. he is a donald trump supporter. he told me what he makes of this diplomatic row between mr trump and mrs may.|j don't think it is a big row. look, this is president trump, i'm going to say this not to you but to the world for the 19th time, he is not a typical american president. these are not american times. he is going to do things and say things that typical preside

britain first, an organisation established by former members of the far right bmp. of the far right bnpd footage that a dutch man was attacked by a muslim. in fact, the assailant was born in the netherlands. all this while the prime minister was visiting countries in the middle east, where the majority of their populations are muslim. a spokesman said donald trump was wrong. she probably wasn't expecting a reaction quite like this. addressing the prime minister directly on twitter, the president said... so no apology from him. on her visit tojordan so no apology from him. on her visit to jordan today, so no apology from him. on her visit tojordan today, the prime minister stood her ground, too. the fact that we work together does not mean that we're afraid to say when we think the united states have got it wrong and to be very clear with them. and iam very and to be very clear with them. and i am very clear that re—tweeting from britain first was the wrong thing to do. though she clearly wa nted thing to do. though she clearly wanted to contain the row. let me be clear about the relatio