the social democrats who came second say they won't continue in coalition with mrs merkel‘s cdu.mach working with the next largest party, alliance for germany, the far for germany, the far right, which got i2%. as for the free democrats and the green party puts together, could secure them a parliamentary majority, well, there is little on which they agree. the chancellor has already moved her finance minister apparently to please them. french president emmanuel macron‘s ambitions to reshape the eurozone depend on german support and such a coalition might not give it. stefanie, it should have been a great celebration for angela merkel, is it as good an election result as she might have hoped for? and how much will exchange? and how much will it change? no, of course it was not the result she had hoped for. she went at the same night saying strategically we have achieved our goal because i am back in office. as you say it is going to be a bumpy time now because there is only one coalition between cdu, black, option and this is the so—called jamaica coalition between cdu, black, the

-- that the cdu got slammed? peter: i don't think so.'s a link from local politics to national politics. the bargaining chips remain unaltered. i would be surprised if in the next couple of months they do not get this jamaica coalition together. guy: it is interesting to see how the australian story feeds back into that. what we've got here is a chart junkeuropean junk and u.s. rated paper in the yields on both of them. this is somewhat experienced, i.e. european credit is outperforming. if you are the ecb in your sitting here looking at this thinking, is this what we want to? has this gone too far? are conditions in the eurozone about as good as they ever going to get? peter: we have to keep in mind that what we are looking at is absolute yields. as the fed is raising rates where the ecb is holding every thing steady. they are natural spreads. you are absolutely right. european credit is absolutely stellar performance. i would argue that this is assessing what the ecb wants because they want to lower costs for everyone out there. effect

one of the conservative cdu's key figures says he is standing down.says the state needs new leadership to meet future challenges. this comes after the far right afd pushed the conservatives into second place in the eastern german state and last month's general election. that was a major embarrassment for the conservatives. he had long been -- it had long been a conservative stronghold. here are some other stories making headlines around the world. the russian tv personality has announced she will challenge russian president vladimir putin in next year's race for the kremlin. the 36-year-old socialite said she wants a different russia that is civilized and european. but critics call her move a publicity stunt that could further fragment the country's opposition. in portugal, members of the country's parliament has observed a minute of silence to remember more than 100 people killed by recent forest fires. the fires have swept across large swaths of the country since early in the summer. officials say an italian priest kidnapped at gunpoint in nigeria h

together an unprecedented multiparty national government coalition. 50 politicians from her conservative cduthe fdp and the greens met today to see if they can work together on topics ranging from the european union, to finance, to foreign policy. their political differences are significant, but so is the pressure to succeed. correspondent: more than 50 negotiators, four parties and one common goal rming an unprecedented coalitn that -- does n really fi together. after two days of amicable preliminary talks, they are finally getting down to business. chancellor merkel: i am happy that we are getting started today. there will be definitely a number of differing opinions , but i have the impression that we will also see a desire for the parties to agree. as far as i'm concerned, i'm willing to reflect in a creative manner. correspondent: and creativity might be just what is needed, because there is a long way to go until theo-called jamai coalion can be formally announced. it is called a jamaica coalition because of the party colors. it brings together the conservatives the business , friendly

the other end of the spectrum is the csu and the cdu.he other end of the spectrum, as i was saying, is a little bit more optimistic. when it comes to explanatory talks and also coalition talks i caught up with the deputy chairman of the parliamentary group of the cdu, and i asked when he thinks we'll have a new government take a listen. >> we should have a government before christmas, because then we have the christmas break, and so it's the wish of all of us that we will have this coalition treaty before christmas. so we have party conventions and we have this target >> going forward, europe is also on the agenda. i think even today when it comes to the explanatory talks what do you think the jamaica coalition will yield for european politics in. >> i guess we will continue our politics on the one hand we try to put europe together, so we will work very hard on the target together with france, especially with france i guess there's some common agreement that france will be the main partner in the future development of europe. we will ma

the social democrats, who came second, say they won't continue in coalition with mrs merkel‘s cdu.ing with the next largest party alliance for germany, the far right which won 12 % of the vote. as for the free democrats and the green party, who together could secure her a parliamentary majority, there's little on which they agree. the chancellor has already dumped her finance minister, apparently to please them. french president emmanuel macron‘s ambition to re—shape the eurozone depends on german support, and such a coalition might not give it. stephanie, same leader but how much changes as a result of this election result? it should have been a celebration for angela merkel. how much will this change? of course it was not the result she hoped for, she said that strategically we have achieved our goal because i am back in office but, as you say, it is going to be a very bumpy time now because there is only one option and this is the so—called jamaica coalition between the cdu, fdp, the liberals and the greens. but it is going to take quite some time to form this coalition. 60% of

julian: he's with the cdu. reporter: how does he feel about the fact he can't vote?n: it's not okay. reporter: julian and his father have invited uwe schummer over to tell him that they think it's not fair that julian is denied the right to vote. schummer is campaigning for re-election in julian's constituency. ludger: i don't understand it. but people with disabilities are a minority, and they can't defend themselves, so that's how they get treated. reporter: ludger peters is not willing to accept the situation. just because he needs support with certain aspects of life, it doesn't mean he can't vote, he argues. the right to vote is enshrined in the german constitution, after all. but legal barriers prevent people like julian from taking part in elections. uwe: until recently we were hoping that with a bit of good will, there would be majority support for a reform of voting rights, but in the end there wasn't enough support. reporter: the ruling coalition was unable to agree. some believe that people with disabilities are too easily influenced and are not able to pr

matt: will the ftp and the greens be feeling more confident in negotiating with merkel after the cdu'she elections last week? tony: certainly. that certainly has been the tone. they are sort of taking up this narrative that merkel is weakened. she won with a huge majority four years ago. this time, she is kind of -- she has kind of been cut down to size. a lot of this has to do with alternative for journey. -- for germany. there is a sense that merkel will somehow need to be more willing to compromise. how that actually plays out in the talks is a completely different question, of course. is it one of these situations where it is not done until it is done? we have to wait until right at the end of this process before we get an understanding of who is going to be the finance minister in these big positions we are looking for, or is it going to be one of the things that slowly comes out of the process as they get closer to some sort of formal deal? whatie: what the -- tony: the cdu, the biggest party by leave the to do, is cabinet post until the end, and that is there clear objective. th

the cdu received its worst score sense 1949.-iged to form a correlation a coalition, a deal with csc was just the first. merkel must now negotiate with other parties. among the possible partners, the pro-business ftp and dream. with diametricically opposed vis on a number of issues, including migration, they will have to work together if they want to govern. at least 12 muslimim refugees dieied after their overloaded boat capsized and five of the victims were children. strike theheagedy to ongoing violence in myananmar. refufugees were e headed towaras bangladeshsh with a boatat carrg upup to 35 people, whwh flipped ovover. hundndds of thouousands of rohingya have fled myanmar after ththe military launched a crackdown that been slammed by the united nations as ethnic cleansing. in afghanistan, the international red cross says it is going to drastically cut back its operations there. as after attacks that killed seven of its staff members this year. the icrc has an operating for more than 30 years in afghanistan, home to the four

correspondent: on friday, the conservative cdu and csu parties will join the talks.ehind these walls, all four potential coalition partners will negotiate together for the first time. brent: the new zealand labour party has completed coalition talks and formed a government with the new zealand first party and the greens. a 37-year-old becomes the country's youngest prime minister. here is what she had to say when she announced the coalition deal. >> labor has always believed that government should be a partner in ensuring an economy that works and delivers for all new zealanders. we also believe in a government that looks after its environment, and that ultimately looks after its people. and i believe labor has found true allies in parliament to deliver on that. brent: that was the new prime minister in new zealand speaking. former soccer player george where has taken the lead in presidential elections. the commission announcing he had received nearly 40% of the votes. according to the election rules in nigeria, he will need a majority. he will face off with the curr

a compromise is said to have been reached after ten hours of talks between her cdu party and its bavariangration emerged as a key issue in last month's election, in which a far—right group made significant gains. argentine airlines has become the latest carrier to suspend flights to the venezuelan capital, caracas. the company said it had concerns over security in venezuela because of increasing criminal violence and political uncertainty. four other airlines have taken similar action, further isolating the country which is suffering a severe economic crisis. a rescue operation is under way near the bangladeshi coast where a boat, carrying rohingya muslim refugees fleeing myanmar, has capsized. officials say at least two people are dead and many others are missing. local media say the vessel sank due to high waves and rough weather. earlier we werejoined by regional media manager for save the children, evan shuurman, who is currently in cox's bazar the latest we know is that there were about 100 people on board, high numbers of children. search and rescue operations still going on. unfort

since the election, from senior figures inside the csu, sister party to the cdu, merkel‘s party, hanscron‘s ideas will lead to a deeper split in the european union." "it promises to turn the eurozone into an unlimited transfer union." the fear is that we would neutralise the mistakes of the past. but this is precisely not what we are proposing. by no way would we say that, while we... but what's the point of having tax—raising powers or a budget or treasury and a finance minister, unless, ultimately, you're foing to treat the eurozone as one economic and fiscal area, where those areas that need special investment, and financial help, will get it? otherwise, what's the point? but what's the point to have a common currency if you don't have common perspective and budgetary perspective. that's a very good question, but the fact is we do have convergence in europe, and there's certainly no political convergence... but there is more and more. and we are working for having more economic, environmental, fiscal... it's fantasy politics, though. it's a grand vision. macron loves, i suppose, to

a cdu member is going to the original parliament. this is not possible for us.ong winds at times this week, even the risk of gales as we maintain a very autumnal flavour to our weather. this low—pressure system was the wind—maker on monday. it's still producing some strong winds in the far north of scotland and northern isles as tuesday begins. elsewhere, high pressure‘s building in, winds easing a bit with high pressure building in. most places are going to be dry starting the day with plenty of sunshine. here's a look at things, eight o'clock in the morning. a few showers dotted about northern and western scotland, driven along quickly on this quite strong wind. far north of scotland, more especially into the western isles, there could be some gusts early on of about 50—60mph. one or two showers in the north—west of england, but very few and far between. for most of us, it'll be a dry start to the day. a good deal of sunshine. a breezy start, though, with temperatures a little bit lower than this away from the larger towns and city centres. some of us in singl

happened that someone has been voted by the npd into the parliament, and just next year, he's going as a cdurix von storch, thank you very much. hello. wednesday's weather gets off to a fine start for some of us, but things will have changed by wednesday night. wet and windy again. a chilly start, particularly in rural spots, and there will be an area of rainfall moving south of scotland overnight and stretching through parts of northern ireland. it's this weather front here, but it's this low pressure moving along the central swathes of the uk on wednesday night, turning things wet and windy. along with this weather fronts searching through scotland and northern ireland, showers heavy and thundery in the far north of scotland and some very gusty winds to begin the day. easing as we go through the day. across a large part of england and wales, getting off to a chilly but fine start. a lot of sunshine around. there will be a few showers running into parts of north—west england. increasing cloud across northern ireland, some outbreaks of rain particular to the north. and the stretching through

is by the free democrats and the green party, and is has widened the gap between the conservatives, cduand the green party. it will be very tough, and we have seen reactions out of the green party saying what he's going to be at the end, what is going to be signed on the e dotd line as a sort of marriage agreement, stephanie not what we had today. -- is definitely not what we had today. brent: as always, thank you very much. here are the other stories making headlines. a turkish prosecutor has demented jail sentences of up to 15 years for a group of human rights activists. they are been charged with terrorism offenses. they were detained while taking part in a workshop run by amnesty international. it covers topics such as how to protect sensitive data from the authorities. germany's president has met with pope francis for private talks at the vatican. they spoke for about an hour on a range of topics, including germany'y's recent election and europe's migrgration crisis.. ththpresident t said the p pope praised germany's efforts to take in refugees and that he expressed the hope that b

it comes after ten hours of talk between the cdu and the csu —— csu.ast month were a far right group made significant gains. we can speak to a political alice whojoins us by we can speak to a political alice who joins us by webcam from berlin. —— analyst. talk us through the background of these talks with the csu, the migrant issue a big deal in the campaign? it's all about one number, the magic number of 200,000 refugees. this is the basic line of the compromise. i would say it is a fragile compromise because they agreed on the number but they also agreed on the number but they also agreed that they don't call it an upper limit or ceiling, they call it a guideline, so it gives angela merkel more flexibility, but it gives the csu leader and number he once. he can go back to his supporters saying that we have an influence but it isn't a cap. exactly. this is the basic line of the compromise and then it goes in toa the compromise and then it goes in to a lot of details. one aspect is the 200,000 is only limited to the humanitarian influx, only talking ab

the represent represents the poorest showing for the cdu in lower saxony in 58 years they're covering the fallout from this northern election live from frankfurt pretty good news for schultz but awful for angela merkel. she goes into the crucial coalition talks. >> reporter: yes, that's right angela merkel's position is clearly weakened according to many commentators here on the ground and also in berlin. while the ramifications from the loss in the regional elections in lower saxony are that those coalition talks might be more difficult than previously thought. lang merkel's party had it clear for them it was widely expected at least back in summer that they will win those elections but they're saying rating them was around 40%. that outcome now, as i was saying, is being brought and the move to the right. that comes from critics inside her party but also from their sister party, dsq. we're seeing that victory evolves there from mari. it's a clear sign that they want a conservative party and they want a right centrist party. the critics come from both sides nowand it will be quite to

david: it will be like a moon rotating around the cdu, all cdu to the right.ataclysmic change but i do think we will see a shift away from the more utopian universalism. tom: i want to talk to david goldman about a chart as we look back to 2007. the volatility we saw in 1987. your briefing, how can you do better than stephen roach and david goldman on china? . , you can steal the chart. i've stole from you. this is bloomberg. tom: stephen roach and david goldman. goldman was in the trenches as we went down. standard deviation move in august of 2007. story after story, it's going to happen again. anothers naked here to forced standard deviation move? i david: think we've reduced a lot of the corporate sectors to a set of static monopolies that don't have the kind of inherent volatility be had in the past. tech companies are not volatile companies. they're like utilities. implied volatility on google and microsoft is lower than that of electric utilities. thanks are in a straitjacket and padded room. tom: that is why steve roach left. david: that's why i left. t

in a bettererkel position after the cdu was beaten. worstthe cdu saw its results in lower saxony since 1959. conversely, the federal election last month saw the worst performance since world war ii. the finance secretary of the philippines told bloomberg a tax reform bill should be approved by lawmakers by year end. the government is under pressure to raise money for infrastructure and maintain growth. to philippines is also ready sell debt in china. approval awaiting the of the authorities in china. we should be ready to launch depending on market conditions sometime between november and december. australia's competition watchdog says of electricity price increases are putting australian businesses and consumers under unacceptable pressure. the main cause of higher hills is an increase in network costs ccc.rding to the a global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: investors and traders in japan on their lunch break. sophie kamaruddin, hong kong p

wait until after the elections to start coalition talks so we would see where the chips live for the cduy got a little -- a really big defeat in lower saxony. it's going to be harder to put together this should make a coalition going forward. manus: thank you very much. matt will be back later on. is set to tell to brussels today to intervene in the deadlocked negotiations with the european union. this is a day after details emerged across party talks to prevent her from leaving the eu without an agreement. for inflation, wages, and retail sales all out this week. the stock.uk. is still with us. how investable is the u.k. at the moment for you? break it down. the sterling is undervalued and we think there of a transitional deal very shortly. you talk about that later. 100, thet the ftse ftse 100 are international companies. going to perform in line in general. as positive. stocks, we think the u.k. economy is performing ok. bonds? no. there's no value in bonds and they are very high duration. , both inflation linked and nominal. manus: that's a good up some of where you want to be. why a

in those negotiations, what happened this evening as well, we're joined by the senior member of the cduf course, and a key figure in the european parliament. —— chancellor merkel‘s party. let's start with this accelerated pace to the article 50 talks that was spoken about this evening. what does that mean to you? what can we expect? it means on these three issues, citizens' rights, the money questions an the irish question, we should have a sufficient progress now until december. that will make it faster because we were not successful enough in this negotiation that the european council can make a decision this weekend to start with the second phase of negotiations, we hope this will now be more accelerated in order to come through that result. you think it's realistic to hope that the broad agreement can be there on those three things by december, do you? or do you think that's not a realistic hope? we are constructive. we want such a solution. we prepare for this second phase already. the european council say that also we have to prepare for that, also the european parliament we do th

there have been suggestions that the cdu's defeat in lower saxony have weakened the chancellor's hand case. us, marcel fratzscher, president of diw berlin. i can't understand why a defeat in lower saxony will defeat her in coalition negotiations, especially since the other parties didn't do great, either. what angela merkel is trying is a new experiment. there has never been this coalition. the conservatives, the green party and the liberals. she has defined a common position on a lot of important issues from europe to tax cuts, to refugee policy. the perception is she has lost about 8% in the federal election. strong as she used to be an her challenge will be to bring all of these positions under one coalition government. it is a big feat. pull especially with the to the right that is coming from the east. you have what is going on in hungary, the czech republic, really bavaria, as well. a very important german state, her partners at the csu pulling her to the right. how do the greens deal with that? difficulty. is the the perception in the conservative party is they need to move fur

the cdu saw its worst result in lower since 1959.l democrats bounced back from their poor showing in the national election. hasworld's top banker indicated that inflation will stay low for much longer. janet yellen says he thinks u.s. prices will soon accelerate. it was reinforce on friday by weaker than expected cpi numbers. >> the soft readings will not persist. market, ingoing labor expect inflation to move higher next year. most of my colleagues agree. the u.k. prime minister hetzer brussels today. theresa may will have dinner with your commission president and other side of thursday's european summit. met an impasse last week over how much the u.k. will pay when they leave the eu. there is risk of britain crossing out without a deal. global news 24 hours a day. powered by more than 2700 journalists and analysts in over 120 countries. salek francine:. francine:thank you so much. -- sebastian salek. isncine: saudi arabia planning to delay the offering of their national oil company into a lease 2019. in our bloomberg middle east an

in germany, angela merkel's cdu begins exploratory talks at 7:00 p.m., and after wall street earnings, we get express. let's get more on today's market action. mark: yesterday, the spread between treasuries fell to 75.3 basis points. that is the white line. that is brushing up against the lowest intraday levels since 2007. in the eyes of bno capital, this is just the beginning, with the fed seemingly on track to raise rates again. second chart, reckitt benckiser, maker of painkillers, cutting its sales forecast after quarterly revenue missed estimates. a challenging market environment. third-quarter sales also missed estimates. it has been hit by a triple whammy. that is reckitt benckiser. the dutch company akzonobel, which is exiting chemicals to focus on coatings, abandoned a profit target this year after challenging market, higher material prices, led to third-quarter profit missing estimates. akzo has had a pretty turbulent year. rival ppg, did from the attention of an activist investor leading to departure of top management, a new executive faced w