i want to dra quiw quickly on s macro developments bnp paribas has exposure to turkey about 2% of overall revenues given the big depreciation in the lira, they did book in a 60 million hit from the turkish lira impact on the currency. and their exposure to italy, you can count it on one hand, but it's something people are watching out for particularly because they have an international retail banking exposure, it is not just french retail so a lot of questions and putting it together, not surprised the stock was down it was a low quality beat on the bottom line and investors will want to see more, not just on the capital accretion side, they will want to see more of a return on equity on all sides of the business >> joumanna, thank you for that closeup on bnp paribas >> let's look as more. reckitt benckiser has been out with numbers today seen down about 3% to 5% it is right up there in terms of losses on the stock price. 4.5% south a temporary disruption at a baby formula factory in europe weighed on sales growth. they reported a 2% rise in like for like sales, that's below forecast >> h

mark howard us is from bnp paribas.wth versus value and growth really rolling overvalued, trying to hold up. is this the next leg we are going to see here in the selloff selloff? mr. howard: this reflects complacency. afflicted some complacency in the growth space, not just tech, but in venture capital and other areas where the system has this dash and straight of elevator now the market is reassessing because there's always elsewhere is causing people to rethink risk broadly. david: does that lead to a sector rotation in the sense that is that right, he moved to the fences? mr. howard: in the near term, part of that has happened but people are going to trim their sale into the of the year because we have some big geopolitical other uncertainties. broadly i think people are trimming themselves a little bit. david: mark howard of bnp paribas will be staying with us. is the next bond prices going to come in triple b's? we discussed with admiration. -- adam richmond. live from new york, this is bloomberg. ♪ alix: the corpo

. >> it is big pressure, the biggest bank bnp paribas revenues are closer to the numbers of deutscheank than other european peers like barclays. 4.5%ies trading, up only in the third quarter. if you look at the french retails made market for b.n.p. paribas, it is not rosy either. %.venues down 0.8 i asked the cfo when he will see a rebound for french retail. >> we have behind us now the buybacks and renegotiations that we had at the beginning of 2017. we anticipate at the end of the year we will switch for the fourth quarter and build again into positive territory, and continue that into 2019. >> analysts will also look at the exposure a b.n.p. paribas to italy and turkey. in italy the big unit a b.n.p. paribas saul revenues down more than 8% in the third quarter, and b.n.p. paribas is closer to the turkish lira which is weighing on their financial services. all this will make it more difficult for b.n.p. paribas to achieve the 2020 targets. nejra: on volkswagen, the headline is that volkswagen is at its full-year guidance. what are the dynamics beneath the surface? >> the results wi

michelin deals with bnp perry by -- bnp paribas. a german bank for a german company. the list goes on. we should encourage fbi here at home -- fdi here at home and not tailored. on a different note south carolina has suffered the third major storm in four years. the flood insurance rate is too low after 1.5 million households , -- 60% of those in hurricane matthew's path did not have flood insurance. it was 80% for hurricane harvey. the same study found a private cutting the take-up rate in low and high risk areas, improving resilience and the rebuilding and recovery process. while there is nothing in federal law that prevents this aruba's private market does not exist. what is the timeline on issuing the final rule congress asked for in 2012? the 2016viating from proposed rule? >> first of all i do support the private insurance market and you may or may not know we have communicated that to the banks we regulate. we do support the -- support making the market larger. we hope we can issue the rule on that, i think it can bring resolution to this issue. i look for to j

haidi: bnp paribas gives us their outlook next.omberg. ♪ shery: this is "daybreak: asia." haidi: the recent selloff in u.s. treasuries has shaken financial markets from stocks to currencies. asian assessors evaluating against a backdrop of deepening trade tensions. let's get some insights from bnp paribas asset management ahead of global em corporate. have we seen the start of a turnaround when it comes to the vulnerability that has played out against asian bonds, in the wake of what has been going on with the trade war, now this selloff in u.s. treasuries? >> yes indeed. this year we have navigated through very tough headlines, which has seen asia bonds selloff. if we look at the most recent history in e.m., asia has been quite tight compared to global e.m. on the back of what we have seen this year, we have seen significant and material widening in asia bonds. we see it as a good time to build positioning there. haidi: how selective are you, given you have vulnerability across asian economies, those with deficits, those with depr

and bp having strong numbers, 4% higher banks and industrials are towards the bottom including bnp paribasown about 4%. with the asian trade, nancy hungerford in singapore. hi, nancy. >> hi, wilfred that wild ride on wall street you were talking about, it appears investors here are taking it in stride, even though we had a negative open for the nikkei 225, but a different story by the close this 1.5% increase for the japanese market is the best increase we've seen in 2 1/2 months that gives an indication of how rough things have been out here. we saw big moves to the upside in part due to the rebound on chinese markets. both the shanghai and the shenzhen are up by 1% here this came as regulators indicated once fwan they're willing willing to take steps to calm market jitters many investor remain nervous about the ongoing trade tensions between the u.s. and china look at the hang seng, it is off 0.9% the worst level since may of 2017 so good news here, but rather tentative increases at this stage wilfred? >> thank you very much for that. let's turn to the other big story in asia, trade the

all of these big names, deutsche bank, bnp paribas, down 2% to 3% banks are clearly a cyclical asset. one would have thought in a year where european economy is doing better that banks would see a lift that has not transpired. banks are one of the worst performing sectors in europe this year. today is no different. >>> back across the other side of the atlantic, president trump ratcheted up his criticism of the federal reserve during yesterday's market selloff the central bank raised interest rates three times this year and trump made it clear he does not agree with the decisionmaking. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy you can say that's a lot of safety, it is a lot of safety and gives you margin, but i think the fed has gone crazy >> geoff cutmore is in bali. i'm sure this is a topic of conversation there did the fed find defenders in bali >> absolutely. there's been a spirited defense here on the ground at this imf world bank event i think there's a couple of issues there's a concern that there may be undue political influence th

cost-effective peter chatwell of bnp paribas.he pound and what needs to happen to move it significantly? >> to move it significantly, there has to be a significant shift from the conservative party towards the canada deal. that is probably the only thing that theresa may would still get support from the european research group from, but that would also be the catalyst for another shift towards the right from the labour party away from supporting a second referendum. that actually makes it an explicit part of their campaign noting that that could be the catalyst for them to get to a general election. if you look at equities, they are in a reared space. -- weird space. ftse goes up because there is this nature reaction of an inverse coalition. -- correlation. global companies that actually for the most part have nothing to do with the global economy. what do they care about brexit? it does not actually affect them at all. dollar goes down, ftse goes up. francine: there we go. thank you both. you both are staying with us. 6:00 a.m.

knows more about monetary policy than jerome powell and his team. , this hour,ht standard life and bnp paribaskets: china open." ♪

tom: edmund shing of bnp spare ball -- of bnp paribas.nancial officer come all of the sudden come autos are export. we will get clarity from the ford cfo in the 4:00 p.m. hour. stay with us, some important bank interviews this morning. this is "bloomberg." ♪ " ♪ francine: kailey: this is "bloomberg surveillance." apple ceo tim cook is touting the importance of privacy and legislation to protect it. he spoke at a conference in brussels. eastland tech companies that monetize their business by collecting user data. >> we should not sugarcoat the consequences. this is surveillance. and these stockpiles of personal data serve only to enrich the companies that collect them. this should make us very uncomfortable. kailey: and that is the bloomberg business flash. thank you so much. we have a question from a viewer. we welcome and encourage everyone to write in. log onto tv and then click on the -- we thank this person for writing and regarding edmund the ftse.mments on ed, how do you view the possibility of a strong supply chain disruption