i am nejra cehic. you are watching bloomberg markets. vonnie: here are other top stories we're covering from the bloomberg and around the world. u.s. stocks are falling hard today relatively speaking with tax reform in the spotlight. the senate could release details of its bill this hour. then, the u.s. jobs market remains on solid ground. why is inflation not picking up? nobel prize-winning economist edmund phelps is here to discuss why we have entered what he calls terror incognito and what can be done about it. and all day, bloomberg tv will be at the headquarters of the internet conglomerate iac. ceo joey levin coming up at the bottom of the hour. let's get to the market. 30 minutes into the trading day. julie hyman is here. point,osses, at one would not have been major, but given what we have seen the last two months, this is a drop. julie hyman: we have seen selling spread across the globe. first of all that was a situation in japan that unsettled investors. the nikkei rising more than 1%, plunging more than 1%, then finishing down

the sterling complex for nejra cehic.ble is gaining for a fourth day, defiant despite the brexit, lack of compromises we were talking about. european stocks halting the rebound inequities that started in asia with the rebound in the u.s. yesterday following several days of declines. stopping in europe, down 2/10 of 1%. on the 10 year bund yield because it was going higher earlier despite the ten-year treasury yields going lower but unchanged now at 38 basis points. tom: the show can start in washington with our chief washington correspondent, kevin cirilli, as the president wice thisted t morning. if democrats understood the power of lower taxes, we would get many of their ideas into a bill. i get it. how far apart are the senators from the house? kevin: centrist democrats are not likely to get on board with this. all attention yesterday since the house advanced their bill out of the house and now focuses on the senate. there are differences. the individual mandate, things like the pastor rate with ron johnson having conc

london, i'mfrom nejra cehic, counting to down to the european close. as the u.k. and eu wrap their greatest -- latest rounds of brexit, concerns over the future of the irish border have interrupted. circulatedment wednesday calls for northern ireland to maintain the rule of the customs union and single market after brexit. this added to pressure on u.k. prime minister theresa may, gloucester second avenue minister in a week -- who lost her second cabinet minister in a week. joining us is emma ross thomas, and dara doyle, bloomberg's dublin bureau chief. in, the eu is floating the prospect of no deal. ian: it looks that way. today marks exactly halfway between the u.k. referendum last year and the day they're going to leave the eu in 2019. i think you came down from the

nejra cehic outside the bank of england.ll bring you the policy decision as it happens right on bloomberg television. time, jonathan ferro and i will be working through what we get from the boe. minutes from the start of cash equity trading. credit suisse looks to open stronger. shall numbers beat -- shale numbers beat estimates. on plenty of stocks this morning. a lovely day in london. the market open is seven minutes away. this is bloomberg. ♪ ♪ guy: minutes to the startup cash trading. let's look at where the markets are going and which stocks to focus on. to be honest, the stocks story at a headline level, going nowhere. european equities will be on a standstill. the dax had a solid session yesterday. today, credit suisse looks to pop higher by 1% or a little more. keep an eye on the fact that tidjane thiam and its pivot to wealth management seems to be paying off. francine lacqua a little later on in the program. the shale numbers look pretty good, as well. this is a big income payer, a big tv payer. do not ignore the f

you are not here, nejra cehic. we may get a hawkish interest rate environment this fight jay powell. -- despite jay powell. tom: i am walking off the set! >> it is your chart. [laughter] >> he has literally walked off the set. .ejra: let's calm down i want to ask you about the dollar, we talk about the increasing deficit, will it put downward pressure on the dollar in 2018 and beyond? >> let me answer in a roundabout way. it ties into what we were literally just talking about. you have to consider what we had done from a net issuance perspective in the united states over the last decade. net treasury issuance has risen dramatically, the speed of trillions and trillions of dollars in where our 10 year yields right now? people love to say, all of this treasury issuance will put upward pressure on yields. the opposite has happened. >> i wish we could talk about american exceptionalism and tom was back. , if yountry analysis are looking at significantly increasing deficits that would make for a weaker currency, the u.s

nejra: live from london, i'm nejra cehic.he bond market is moving on the political shakeup in saudi arabia. saudi bond yields have jumped since the arrest. many neighbors are looking to debt sales to diversify income. let's bring in marcus ashworth. great to have you with us. this is an issue of saudi arabia needing investors and not rattling them. marcus: they have a requirement to raise quite a lot of money, be it from sales of saudi aramco possibly. $30 billion in bond sales so far. they repeated that again in september. they want to raise money from the bond markets as a way of financing their rather large deficit. theyoil price where it is, are requiring to basically change the economy. they have this vision 2030 angle. but the key is raison d'Ãtre. it's not just -- raising debt. it's not just saudi. seen theve we contagion in the rest of the arab world? marcus: we have, actually. some countries have widened more than saudi. united arab emirates or kuwait, less, but they have all widened. bond prices have been going down

equities finish up the day -- i'm nejra cehic with vonnie quinn.es finish of the day, with the genome function set to western europe. broad-based losses across equities. the dax and the i-40 also for the worst week since august. the ftse 100 off by .7%, the euro stoxx to see -- 50 down. we are nothing the depths of the losses we saw yesterday. those declines are pretty much as broad-based as they were history. sterling on the front foot, .5% 13209, sterling hitting the highest level since the dovish hike. , 11661. up from cable, it seems like a bit of optimism perhaps over the developments with the brexit talks, even though the eu floated the prospect of no deal. we have data out of the u.k. that's giving reports to sterling. higher, bothving in the core and the periphery. the looking deeper into the equity markets and the distribution around the industry groups as we are closing at the session here, you can see the losses were broad-based across industries and regions, but also across industry groups as you can see from the imap, pretty much every

nejra: i'm nejra cehic. vonnie: i'm vonnie quinn.close on "bloomberg markets." here are the top stories we are covering from the bloomberg and around the world. european stocks threatening to extend their losing streak to four days at the stoxx 600 has its worst week since august. is this another reason to buy? with europe's robust economic expansion, have european policy become too complacent? we look at one morning from a major ecb policymaker. burberry gets a rescue line from brussels. a billionairehy is raising his stakes a day after burberry tumbled on concerns of its move and upmarket luxury. let's have a look where european equities are trading right now, just under 30 minutes to the

i'm nejra cehic, this is bloomberg. francine? francine: thank you so much, nejra cehic.e u.k. had the deteriorating economic outlook. chancellor philip hammond announced a forecast for gdp growth in each of the next five years. let's get back christian schulz, city director of european economics, chief strategist at big day asset management. thatt a political budget means that the chancellor keeps his job and that makes an impact on economic impact -- forecast, or, was it there to boost the economy? >> the budget was the best the chancellor could do at the moment. it's not going to make a big difference. i think what was the real is a big cut in potential growth in the u.k. from 2% to 1.5%. it's a huge number that will have a big implications for future budgets. as the march for 25 billion stimulus we have had. they are going to make a big change. i think there's not much that the chancellor can do currently. >> bloomberg.co think what is inter -- is,hink what is interesting people expected, and i expected, a rise in public sector pay that would have boosted private sect

i am nejra cehic.rules and returns" is where we tune into the regulatory challenges and opportunities for the markets around the world. we will speak to the top newsmakers, regulators, and market participants shaping and reacting to a new generation of rules. first, to the top story, the sec says firms can accept payments from eu clients. they gained a 30-month reprieve on the research rules coming to effect in january with mifid ii. ben from our financial regulation came in washington d.c. joins us now. ben, you have been all over this story from the very beginning. why did the sec decide to do this? was it the result of lobbying from the industry? ben: thanks a lot. yes, the industry here in washington, large wall street brokerages have been pushing for months to get the sec to tell them they can essentially accept payment from their european clients and not have to register as an investment advisor. they don't want to register as an investment advisor here in the u.s., because it carries new respons

. ♪ inra: i am nejra cehic london with tom keene in new york. with philip hildebrand with francine lacqua. here is a preview of the latest episode where he speaks with francine about life at the world's biggest money manager. francine: what is it like working with larry fink? bit older than me. i try to keep fit, but traveling with him as a workout. >> is he demanding? >> yes, but no more demanding than he is on himself. he has coined the phrase that we all have to be students of the market. there is no excuse for anyone at blackrock not to be a daily student of the market. that shapes the culture very much at blackrock. nejra: still with us is sonja laud, fidelity international head of equity. you are definitely a daily student of the market. when you look at the risk return profile across asset classes, what appeals to you? sojna: from an absolute standpoint, not a lot. doinge are increasingly within asset allocation decision making is looking at relative opportunity. i thought the showing of the datwork, the lost vinci shows you how much mone

i am nejra cehic. this is bloomberg. francine: president trump says china is taking advantage of american workers and companies with unfair trade practices. in beijing, he blamed his what us princesses for allowing a u.s. trade deficit to grow. speaking alongside president xi jinping he went on to say there's a good chemistry between the two leaders. today we have an all-star guest lineup. leading voices in investment and markets. jean boivin joins us. blackrock heing was an associate deputy of the country. one of the most recognized names along british investors with a bit of and i for identifying -- with a bit of a nine for identifying trends. gentlemen, thank you for joining us. you. let me to go with what kind of language do you look for in a president to see the markets? jean: one of the risks i can think of about markets, the discussion would be key, i don't think we are seeing a lot of information around framework around trade. this is more transactional. i don't think this is a surprise. there's a lot to be expec

here is nejra cehic.: starting with the gilt market open here, we ended the session at 1.28 percent on the 10-year gilt yield. looks like we are done one basis point. one point 27% on the 10-year gilt yield. a little bit of thin liquidity closed. when it comes to european equities, seeing a second day of declines, the stoxx 600 down .3%, broad-based declines across every industry group from the imap here. on thegest laggards downside. you have health care and industrials outperforming, but even they are in the red as well. declines in european equities. let us take a look at the euro holding its gains from yesterday . it has been gaining on progress in the german coalition talks. what we are seeing is 11842, broken through the 55 day moving average resistance it had failed to hold above since the end of september, and of course, a stronger euro is important for european equities. the brings me neatly onto dax here. you were talking about it earlier. this shows the evaluation. in the dax,is year you can se

nejra cehic come over to you.ow you have been talking about this stock, but it is one of the biggest gainers. announcing the biggest commercial plane deal in its history. we are talking about an order valued at nearly $50 billion for 430 planes. i'llis covering a320 neo jets. airbus moving higher end sticking in the same industry group space, up 1.3%. the company trading in the first is largely in017 line with expectations, so the full-year view is unchanged. thestrategic review of divisions is ongoing. on the downside, i am looking at lanxess. third-quarter sales were a mess. notearnings structure is pleasant. investors reacting negatively. one of the worst performers on the stoxx 600. guy: let us break it down from a such a point of view. mining, oil, and gas being hit me hard. telecoms are being outperformed by a significant margin. theave seen some of industrial metals coming under pressure overnight, particularly out of the asian session into europe. gas, losses in wti and brent. the banks are also suffering

bloomberg markets: rules and returns are co- i am nejra cehic.turns" is where we tune into the regulatory challenges for the markets around the world. we will speak to the top newsmakers, regulators, and market participants shaping and reacting to a new generation of rules. to the top story, the sec says first, firms can accept payments from research clients. they gained a 30 month reprieve on the research rules coming to effect in january with mifid ii. ben from our financial regulation came in washington d.c. joins us now. ben you have been all over this , story from the very beginning. why did the sec decide to do this? was it the result of lobbying from the industry? ben: thanks, a lot. yes, the industry here in washington large wall street , brokerages have been pushing for months to get the sec to tell them they can essentially accept payment from their european clients and not have to register as an investment advisor. they don't want to register as an investment advisor in the u.s., because it creates it creates new responsibilities and c

let's get to first word news with nejra cehic.d kim jong un -- all responsible nations must join forces to deny them any form of support, acceptance. president trump: today i hope i speak not only for our countries but for all civilized nations when i say to the north do not underestimate us. and do not try us. we will defend our common security. our shared prosperity and our sacred liberty. francine: executives from some of the world's biggest banks have warned the u.s. commerce secretary over the impact of the u.k. leading the e.u. they may be forced to start moving thousands of jobs in the near future. the paper said the meeting on friday included jpmorgan, oldman sachs and hsbc. imports showed the continued trength of a domestic economy. exports increased as imports rose 17.2% year-on-year. the u.k.'s international development secretary is said to have cut short an official trip to africa after being ordered home by theresa may. there is speculation she will be fired over a meeting she held with israeli officials behind may's

i am nejra cehic.rules and returns" is where we tune into the regulatory challenges for the markets around the world. we will speak to the top newsmakers, regulators, and market participants reacting to a new generation of rules. to the top story, the sec says firms can accept payments from clients. they gained a 30 month reprieve on the research rules coming to effect in january with mifid ii. ben from our financial regulation team joins us now. you have been all over this story from the very beginning. why did the sec decide to do this? was it the result of lobbying from the industry? ben: large wall street brokerages have been pushing for months to get the sec to tell them they can essentially accept payment from their european clients and not have to register as an investment advisor. they don't want to register as an investment advisor in the u.s., because it creates it creates new responsibilities and costs, essentially fiduciary responsibilities. meanwhile, the sec relief that they announced tod

i am nejra cehic. "rules and returns" is where we

i am nejra cehic. "rules and returns" is where we

let's bring in nejra cehic for that. focusing on the downward today, starting with the daily mail. , so then downgraded drop you are seeing, more than 25% of that at the moment is the most since 2001 for daily mail, hitting its lowest since 2012. but moving from papers to pubs, it seems brits are drinking less. u.k. consumers are spending more cautiously, tightening their belts. .ost cuts on track the stock is down the most since the beginning of september. 44 million euros. this company invest guy: down 3%. up next, talking about filling the empty seats on the fomc. trump's nominating marvin goodfriend. will he be a good friend to the market? this is bloomberg. ♪ matt: we are 30 minutes into the trading day. let's take a look at your top headlines this morning. ed, thing -- defang technology shares turn red. european stocks start the day flat. connecting the dots. marvin goodfriend is topped by tapped by trump. is he a hawk or not? opec and russia agree to extend production cuts until the end of 2018. we will bring you

am nejra cehic. this is bloomberg. francine: it could be make or break for the british chancellor as he prepares to deliver his budget later today. philip hammond will be under pressure to strike a balance between meeting his fiscal targets and to appease voters. he also has to factor in the enormous uncertainty around brexit. westminster is at ahead of the announcement. aboutof all, how balancing the budget? it will be difficult for him to please everybody today. expectationsuced because they have been overly optimistic in the path about low productivity. low user productivity will be a theme hanging over this budget. brexit will be another theme, as well as the weakness of the government itself. theresa may will not want to lose another. the chancellor has been a little -prone as of late. she will be trying to avoid anything that could risk destabilizing the shift. there could be some news around when a tax decision will be made by the government. could we see big pledges around housing? how much of that will be foll

here's nejra cehic.quakesies of and hurricanes will not stop a company from reaching its goal. it willrer said it's -- purchase 2 billion euros of stock next year. ianz cfo hailed the performance of its pemco net. >> the product -- positive from pimco continues. we had our asset manager segment for net inflows. when i look at the first 10 months of pimco, we have policy costs now of $125 billion of net inflows. i think that is fantastic -- a fantastic recovery of our pimco performance. nejra: michael combs has resigned after investors rated -- raise concerned about the company's ability to reduce its debt load. a new ceo will continue to run the american business as well. the cfo operator will assume responsibility for the european edition. walt disney has said it is making another trilogy of star wars movies. the plans are welcome news, not only to fans, but disney investors, who have enjoyed profits from disney's movie division into theater chain, which could use a few more guaranteed hits. the announc

i am nejra cehic. this is bloomberg. francine: let's start in the u.k.he pound has dropped as recent may faces challenges to her leadership. mpsany as 40 conservative have a great to sign a letter of no-confidence in theresa may. does -- that is just short of the 48 that would be needed. our reporter joined us. also joins us is peter kinsella. he is our guest host for the next 30 minutes. david, thank you as well for joining us. 40 sounds like it is very close. 48 can be difficult to reach. consider where the conservative party finds itself. very difficult negotiations going on with brussels. does anyone really want to trigger that? there has to be another election. in that constant -- and that context, maybe that eight is a bigger hurdle than it might sound. francine: does it weaken her position in her negotiating deals with brussels? reporter: all of this stuff, whether letters calling for her all of it weakens her hand. the question about the bill is hanging over the u.k. and she is in an increasing weakness. i can't think of something that strengthen

i'm nejra cehic. this is bloomberg. francine: thank you so much. in's kick off with the news markets today. there are worries about tax reforms in the u.s. the stoxx 600 is on the longest losing streak since may of this year. is the part over for the rally and how should investors be positioning their portfolios? gilbert and gildan sundstrom join us. dline, what prompts this move? there's no real trigger. ,s this what you were expecting a correction that comes from mood into sentiment, but not a real pinpoint. geradline: i think you just pointed to it. i think positioning was relatively heavy. we had a really strong rally. all the catalysts from the earnings even have the softened. the market needs a correction. i think at the moment it is a lot of noise. the proper signaling to come from real data, maybe the cpi later this afternoon, or things that would generally worry is, but so far it is a healthy correction. francine: you look at market functioning. what are they worried about at the moment? you write a lot about central banks, and that is whe

manus: let's get across to nejra cehic. everything is awesome. what do you make of it?n't know about awesome but certainly unfazed. we look across the asian equity markets and its flat. the heinz saying is pretty much flat. everyone shrugging off those risks. the nikkei is up .5%. we have reached at least an outline of a divorce settlement between the u.k. and eu. the pound jumping on reports. taking a look at the dollar. the index fairly steady. we did see it hit a session high yesterday based on the progress of the senate tax bill. relentless a pretty flattening on the curve. it has usually been a bit more sensitive to the front end of the rate curve. little bit of negativity coming through on the long-term prospects of the u.s. economy even as to get the incremental good news. finally, talking about where there might be euphoria, everything being great, bitcoin mania past the $10,000 mark. more than tenfold increase on bitcoin this year. people asking when it's time to take those profits. the u.k. and eu are set to have reached a preliminary agreement to the amount b

let's give details with nejra cehic.ra: let's start with the gilt market open it we saw the five-year tenure -- the -- along with european bond yields. we are seeing the 10-year gilts track with the bond yields are doing. down 1.33%. could on to the equities you talked about them being on the front foot, where up .2% -- we are up .2%. if we look at and it just included distribution across industry groups, heading higher. telecoms and materials leading the gains along with consumer staples. the little rebound we are seeing comes after a number of these main indices saw their worst week since august last week. here is a little bit of a technical chart showing the stoxx 600. it had its worst week since august last week. in terms of where it goes, one thing we could talk about his valuations. this chart is showing relations in europe and emerging markets. guy: thank you very much. chinese data coming through. an estimate looks a little bit like aggregate financing. let's talk about what is happening in terms of the moves we

here's nejra cehic.: donald trump has nominated marvin goodfriend to be a governor of the federal reserve. he's a respected monetary economist. a professor at carnegie mellon university send goodfriend has served on an independent panel of economists known as the shadow open market committee. credit suisse plans to boost returns to shareholders and pay half its net income in share buybacks or special dividends. the bank also increased its target for wealth management in asia-pacific. the lender confirmed its target for the swiss universal bank, wealth management, and capital markets, and global markets businesses. the u.s. has demanded that china cut off oil exports to north korea after the latest missile test, warning that washington will force action if beijing fails to do so. speaking during an emergency session of the u.n., ambassador nikki haley said donald trump had called xi jinping to discuss the matter. u.s. senate republicans voted to begin debate on their tax bill. it touches off a process tha

i'm nejra cehic. this is bloomberg. and eue: the u.k. averaged an agreement. climbed higher on the news that a major hurdle had been clear. however, questions over the irish border remain. first of all, good morning. what exactly has been agreed? >> well, the big thing here, and it is a big breakthrough, the agreement on the methodology about how the divorce bill will be cut -- this is something eu, and they have been calling for it. finally, we have an agreement that will be presented on monday by theresa may, when they meet in brussels. it is important that it is not a figure they have agreed on. on $40ve not agreed billion or $20 billion or $60 billion. they have agreed on the calculus, the way they will come to a number eventually. francine: will she be able to sell this back home? jones: i think so. i think the eu is sensitive to the domestic political situation for theresa may. they are kind of exhibiting the imagination and flexibility that the u.k. side has been calling for four months now. so, we are not going

let's get to the bloomberg first word news with nejra cehic. nejra: in the u.s., 26 people have been killed after a gunman opened fire at a church in texas . another 20 were wounded in the attack at the first baptist church, in a small town in burleson county. victims ranged in age from five to 27 -- five to 72 years old. japanese prime minister shinzo abe has announced lines to take additional sanctions measures against north korea over its escalating missile development. he will announced tomorrow a freezing of the assets of 35 north korean groups as japan's own a sanctions measure. he maybe investment at a joint news conference. ross faces questions about his financial disclosure to congress and the government after reports that he didn't disclose business ties to the son-in-law of vladimir putin. we will be joined by wilbur ross time.30 p.m. u.k. in the u.s., michael flynn is reportedly close to being charged as a part of the investigation being carried out i special counsel mueller. mother's team is looking at charges of money laundering a

for that we go to nejra cehic. fewa: we are seeing quite a moves. bitcoin slumping.k at asian equities first, we can is coming through, down .4% on the msci asia-pacific index. pictureeeing a mixed across regional indices. board. dominating the industrials and real estate leading the losses among asian equities. that is the second day in declines among asian stocks. sterling is down. it is dropping the most in more than a week. also, one month volatility rising to it two-week high. this is after some concern about theresa may's leadership with the sunday times reporting that we could see a vote of no confidence possibly by a large number of conservative lawmakers. technical support for the pound may struggle on these challenges to me. -- two may. take a look at what is happening to the bond market. we continue to see yields move higher in treasuries and the european space. the 10-year gilts yield to been seven basis points on friday. -- this anna: another quick line. the second quarter performance ¥198.4 billion. republicans in congress are rushing to meet a tight se

with get some more of the markets and for that, we go to nejra cehic in teh studio.ra: we see a little weakness the cost the student equity i'm showing moderation in the chinese economy. 's more to do with inflation data, but also the deleveraging campaign that we .ve seen since the enc continuing to talk about curve flattening, we see flatting everywhere. here, it's a technical signal, one of a couple that perhaps shows it is time to put on those gloves. first, the moment engaged, showing the 530 to somebody over soeul. what this chart showing is the document has reached the long-term economic health. we saw this unchanged a month ago. you are seeing is a bit of a bearish skew on your ability for that. and one month volatility spiking from the concerns over the u.s., and of course, we have got focus on central bank this week as well. anna: president trump says he is going to make a major statement the white house. whether or not it will happen is not entirely clear. he added the talent base is yet to come. the president clearly in the philippines extended his trip.

let's get the mid-cap movers with nejra cehic.tarting on a record high biggest trade credit insurer. they offered to buy the remaining shares for $2.2 billion. you can see up more than 20% in today's session. we are looking at icade, france's third biggest property company. they have benefited from the reforms brought about by emmanuel macron, but also the prospect of some of the actual happenings of reorganization of brexit. they have raised their guidance the year ahead of their goals. it is raising its cash flow 8% to 7%ow for about and that number is what it is pegged to. it is up 1.9%. -- ingenico iso moving from underweight to equal weight at morgan stanley. andrew, we talk about 2018. incrementally, he will start getting more worried as we head into 2019, particularly with the united states. is not the time we see volatility coming in as a result of 2018, 2019? and as we look at our portfolio structure, look at --? thingsthere are a couple that will cause volatility first quarter next year. it is difficult to times these th

nejra cehic, over to you. biggest movers in this session starting with a private equity firm. we ported a total return for the first half of positive 655 million pounds. it's that private equities on track to deliver a year of strong growth. taking the numbers politics of positively.ives politics this is after it added mobile phone customers. that shows may be that a long-awaited consolidation in the center might not be needed. the cfo saying consolidation and telecoms behind us for a while, up 4.1%. on the downside, i'm looking at citic so. fourth quarter again it revenue growth and ebit. both beat estimates. jefferies saying the 2018 guidance is soft. perhaps that is a negative take away. they are down 4.6%, one of the lack arts on the stoxx 600 -- laggards on the stoxx 600. guy: is today buy the dips? i would are you the mix with some of the financials, the trade not necessarily partaking in all of this is an interesting aspect to what is going on, but at the moment, u.s. futures are pointing higher. are we

. ♪ ♪ nejra cehic in for francine lacqua. i am tom keene. here is taylor legs.g the terrorist attack. a man drove the truck down a bicycle path, killing eight people and injuring two dozen more. a police officer shot the man and arrested him. he is described as an immigrant from uzbekistan. notes found near the truck indicated the suspects allegiance to islamic state. five of the dead were from argentina. george papadopoulos made a significant claim during the campaign in email. he said top trump officials had agreed to the meeting before the election with representatives from russian president vladimir putin. there is no indication the meeting took place and it is unclear whether he was simply boasting. u.k., theresa may's closest ally is latest to be accused of inappropriate behavior and sexual harassment. the first secretary of state denies the claim that he made inappropriate sexual advances. may ask a jeremy heywood to investigate. giving 150 million dollars to the university of chicago, the second-largest gift in the school's history. the money will divide

nejra cehic outside the bank of england. of course, not only the festivities for the new fed chair, the real movement today on tax reform. even in last night, and contentious debate. we will get an update on the tax reform discussion. >> we certainly will. let's get straight not to bloomberg first word news. chris taylor riggs. >> present -- here is taylor riggs. taylor: president trump announced he will replace janet yellen as the chair of the federal reserve. picture -- chose to have this for fed governor powell. -- but this will ease financial regulation. house republicans will unveil their tax bill today, and a call for corporate taxes to go down from 35% to 20%, but only for a decade. estate tax would be faced out, and the child tax credit would be increased to $1600. this can pass without democratic votes, but not -- not all republicans are on board just yet. defense secretary michael fallon has quit over sexual harassment claims. fallon fell short of the standard expected. he was a veteran defender of conservative par

for that, we go to nejra cehic. nejra: morning, matt.e your mid-caps, some of the biggest movers, starting with rpc. it was gaining as much as 7%. we got numbers today. first half adjusted pretax profit. it said the trading has been encouraged in the first half and the second half of the year has started well. on the upside, looking at the property website in the u.k. full-year revenue coming in above estimates. saying it is comfortable with current market expectations and it had a good start to the financial year, up 1.1% right now. on the downside, another u.k. world.y looking at cine it is in talks to buy regal entertainment. it would fun this with debt and the material equity raise. it would double cineworld's size. it would create a rival to amc entertainment and allow it to expand the on its home market. we have seen it actually move on this news, dropping the most since 2010. down 14%. guy: thank you very much indeed. the pound is definitely on an upward trajectory. fx fc.brought up i'm looking at in terms of the the 146 from8, ba

nejra cehic, over to you. nejra: i am looking at the gilt market open first.gilt yields take higher -- tick higher. like wed at the moment were steady on the gilt yield, one one basis point, .3% opening up on the gilt market. the equity market open yesterday, the rebound we saw that seven days of losses, the longest losing streak in more than a year. this session, quite a bit more muted. look at the distribution of industry groups on the imap, it looks like we are seeing a little bit more red than green. discretionary, and utility stocks underperforming. you are seeing telecoms and materials outperforming. a little bit of tech edging into the green. it was the tech stocks outperforming. stoxx 600 fairly unchanged. a little bit more technical of the stoxx 600. i took this from the mliv blog. the stoxx 600 bouncing off its 200 dma. you can see it's following the uptrend line as well. not followedas through to really sustain gains in this session. perhaps this has something to do with it. if we look at how analysts have been looking at earnings estimates, they ha

m nejra cehic this is bloomberg. francine: thank you. we are expecting draghi to give a speech any moment at -- or on europe's changing banking landscape forum in frankfurt. joining us first is paul donovan. the markets are worried. when you look at what the fed and ecb can do, who has the toughest job? ecb hasll, i think the got a tougher job, in all fairness to mr. draghi, which is not something i often feel like saying. does not really work as a monetary union. the u.s. has got fiscal union, it has got a banking union. that means the transmission of central-bank policy is more effective, more predictable and more manageable. in the eurozone we can't say that. there are greater challenges ahead for the eurozone. we start to see politicians try to tackle some of the structural problems of the euro with the central bank trying to mitigate the downside of those solutions. francine: when you look at too much central-bank qe in europe, is too much a concern, compared to what we have seen in the past? paul: i am concerned to the ecb is going

with us is nejra cehic standing by outside the bank of england.of the most dovish central bank decisions i have seen in a long time. someone tweeted me the bank of england has provided ample reasons not to hike after they just hiked interest rates. what is some of the guidance and communication we are getting from the bank of england? beg thet really does question whether this hike just came today because the bank of england had backed itself in the quarter and the markets would be pricing it in. even though they delivered the hike we are still seeing a fall in pound and gilt yields because the market is interpreting this as a dovish hike. what was omitted from the statement was something the bank of england said that the market is underpricing the rate hike curve going forward. that was missing and it really emphasized the hiking path will be limited and gradual. you are seeing the pound falling, the gilt yield coming down. they talk about considerable risks to the outlook, a dovish hike. as you look jonathan: -- jonathan: as you look at the situ

i am nejraom london, cehic. you are watching bloomberg markets.ng from the bloomberg and around the world. u.s. stocks are falling hard today relatively speaking with tax reform in the spotlight. the senate could release details of its bill this hour. then, the u.s. jobs market remains on solid ground. why is inflation not picking up? nobel prize-winning economist edmund phelps is here to discuss why we have entered what he calls terror incognito and what can be done about it. and all day, bloomberg tv will be at the headquarters of the internet conglomerate iac. ceo joey levin coming up at the bottom of the hour. let's get to the market. 30 minutes into ad

. >> and i'm nejra cehic. welcome to "bloomberg markets."better wednesday and will be celebrating veterans day today on the show, so stay tuned. we stopped -- we start with breaking news. julie: university of michigan sentiment indicator for november, this is a preliminary reading coming in at 97.8. that is low the 100.8 estimated and below the 100.7 rating from the prior month. the current index are as expectations. we have seen most of the consumer sentiment numbers recently strong. this is an unexpected drop here. that drop is the biggest drop in a year. interesting here that we are seeing this blip. we wilif

i'm nejra cehic. this is bloomberg. francine: thank you. europe's economy is getting traction. figures released in a little less than an hour time is excited to show the eurozone g-v adp at 2.5%. the heads of the world's most influential central banks will be in frankfurt. in the next hour, we will hear from the panel, which includes janet yellen, mario draghi, mark carney and kuroda. executive editor for global ralph.cs is here, as is ralph, let me take it off with you. is this a communication concern, or is this the markets misunderstanding what central banks are telling them? ralph: i don't think we can see any signs of freaking out. the market remains sanguine as ever about what central banks might might not be trying to tell us. the big question is, how do we square on the one hand the increasingly synchronized global recovery. it seems to beginning strength from the external side, so we might see a little bit of a contradiction. we continue to see strong data out of the u.s. gdp data suggests 3% growth in the third quarter. when you are talking about communication challen