easyjet -- external event affecting the profitability.s as well the extranet events of the brexit. also what is been happening in terms of terrorism affecting the business sharply. the stock is called the lower this morning. bank caught asche little bit higher. speculation swirling, not confirmed by bloomberg. we're hearing that the german government is speaking to the department of justice. a great piece by bloomberg showing auditing of the deals -- overall potentially with some -- some 30. called up 12% on the back of [indiscernible] guide. ♪ guy: good morning and welcome to "on the move." i am here in the city of london alongside caroline hyde in frankfurt. we are moments away from the start of european trading, and caroline as the morning brief. caroline: guy, fx headwinds. easyjet sees its first profit decline since 2009, but is the worst of the brexit turbulence still to come? twitter tanks. butcharacters per message, two from alpha that are enough to crush the shares. what google's no means for twitter. and samsung surges hit a fre

ryan air is up here and easyjet is down here. easyjet is underperforming quite significantly.ill with us. a couple of things to talk about. you started your thoughts on ryanair. james: my issue is that the growth is-forecast exemplary. no economic growth. people have very limited real income growth. and we now have rising oil prices. against that backdrop, they came out and said instead of 12%, we are going to make 7%. rest of: what about the the spillover affect into the sector? easyjet has underperformed. is that an overreaction? james: if you look at the hard numbers that lie behind where easyjet has come from, on a trading basis they are trading at less than seven times earning. it is on roughly 8.5 times earnings. from mymbers perspective accommodate a lot of the bad news that easyjet will undoubtedly face. the share price is due a correction up. the earnings yield implied. it is capable of powering a decent dividend yields. that is potentially very attractive. you just laid out the case for a takeover. ises: the problem with m&a the challenge of capacity globally in term

anna: let's get more on the easyjet story. company's profit has fallen for the third time since 2009 as the state of terror attacks hit demand. the falling pound -- let's bring -- fabio balboni is still with us. chris, let's come to you. how much of the profit decline is down to brexit. only one of the many headaches that they have to face. chris: there is a basket of issues. they started the year with terror spree having a huge impact across various fronts. they have been trying to move past cases like egypt and places like north africa. brexit follows on. the profitlion of are to -- they understand million pounds below where they thought they would be nine months ago. -- they are 250 million pounds below where they thought they would be nine months ago. there is a lot of brexit pain still stored up for them, in terms of the pound and the impact on the -- anna: fabiola, do you have any good+++ what are your expectations for the pound and its weakening trajectory? .." -- fabio: think the pound could fall further. where looking

the ftse 100 off by 0.2% in part because of easyjet. >>> u.s. futures, how we're setting ourselves up for trade, slightly to the upside. implied open, non-farm payrolls wrapping up the week tomorrow with the consensus forecast being for growth around 170,000 jobs for the month. that's it for today's show. i'm louisa bojesen. >> i'm carolin roth. "worldwide exchange" is up next. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in

european discount airline easyjet annual profit has fallen for the first time since 2009.are attacks discouraged travelers, -- terror attacks discouraged travelers. pretax profit for the year .nding september 30 fell 28% a british company has won a two and a half your battle over fracking in england. on trailer resorted will be allowed to drill and frack as many as 4 natural gas wells. the government deferred a decision on 4 other wells. that's the latest business flash. vonnie: tomorrow at 2:00 p.m. eastern, catch a special edition of bloomberg surveillance, live from the imf meeting in washington. italy's finance minister will be along. catch that right here on bloomberg tv. >> let's take a look where european markets ended on the day. banks have been gaining. if failed to pull up the -- benchmarks. stoxx 600 4/10 of 1%. easyjet one of the worst performers on the stoxx 600. sterling in freefall at a 31 year low. the european close, this is bloomberg. ♪ scarlet: brexit concerns. jitters have resurfaced. he spoke with our editor-in-chief of the other shoe drops at deutsche

easyjet -- coming under pressure. down again this morning. deutsche and easyjet in the mix.ide.also on the william hill trading up by 4.79%. deutsche, let us take you to the session charge. -- chart. it is trading down and is now at a session low. there is the sale price chart. trading at 1168. here is the bloomberg first word news with juliette saly. juliette: as you say, deutsche bank remains in the news as negotiations with the u.s. department of justice to resolve a year-long investigation continues according to people familiar with the matter. earlier, germany's newspaper reported that the ceo was not able to reach an agreement but a spokesperson declined to comment on the status of talks and the article. u.k. businesses have adopted a more cautious outlook and maybe less inclined to invest and hire since the brexit vote according to the british chambers of commerce. it is using its first quarterly survey since the referendum to call on the u.k. government to take steps to lift confidence including improving -- approving new infrastructure projects. thomas jordan says t

what can we expect them from easyjet? has been a confluence of negatives around brexit, around the terror threat, the pilot strike at least moving off the agenda. richard: that is right. there are a bunch of things that hit the company in the fiscal year that ended last week. brexit of course the most obvious one. although the impact is hard to gauge still at the moment, the one thing apart from the uncertainty over the airline industry is we know the slot of the british pound.and if you are short the british pound, like a producer in the u.k., things you purchase abroad like kerosene get more expensive. the cost in continental europe is more expensive, so all that will ease into the balance sheet. we will not get a full report, just key figures probably getting guidance for earnings with the full year, probably profits fell. and if that happens the first time since 2009. manus: richard, thank you very much. richard our aviation reporter in frankfurt. those numbers breaking on bloomberg at 7:00 a.m. we will bring those to

the mrr.show yoshow you easyjet is bouncing back.rs coming out of the business as well. ericsson though, the real standout story at the bottom. we are down 17.54%. not good use of that tech sector. it has been a tough few days for the tech sector. caroline: it has. samsung has ended production of note-7e-prone smartphones. we are now joined from tokyo. as we just said, a painful few days for technology, and for samsung. was the number above or below for the cost of this recall? reporter: this was a really rough stretch for samsung. they cut their operating profit to $5.48 trillion trillion. samsung had announced preliminary earnings just about one week ago. we are still two weeks before final earnings. we are in this limbo period, where they are scrambling to get out some numbers to make sure the market knows where they are at. to put it in context, the drop in operating profit is about $2.3 billion. that is actually at the higher end of what analysts expected, in terms of the total cost of the note-7 recall. that probably includes a

thibut i want to talk to you about easyjet. the high is 1762. poly it is partly what is happening with brexit. we have already seen the pricing in the pound. there are many factors making life difficult, terrorism, the strikes. do you think someday will come in and take the job over? >> if you are looking at the pound crashing as it has, and you expect the travelers coming from that u.k. into europe will reduce, a good impact these -- it could impact these stocks. guy: it is one of the brexit plays. >> yes. market is short on this stocks, maybe that is having an impact. but other than that, i think it is being pulled into what is happening with the brexit, in general, regarding the u.k. equities. guy: it is not 9% on that stock. >> that could be one of the main reasons. let's look atdmanus, the luxury market today. in terms of growth of sales any third quarter. we can see the chart of how it is performing against its peers. it is outperforming. is this something of a bellwether for the rest of the sector, or is lvmh on its own doing well? >> the

the main culprit is easyjet. look at shares, off by 5.8%.he low cost carrier said it is on course to post a 25% fall in annual profits in what would be its first full year earnings drop since 2009. a couple factors here. high exposure to egypt, turkey and france, and then the depreciation of the pound in the wake of the brexit post. thirdly continued overcapacity in the european airline sector. it's a big drag on the sector. in terms of the overall markets. we did open higher this morning. since then swinging between gains and losses. we are seeing some outperformance in the beaten down banking sector. that's because citi is upgrading european banks to overweight from neutral because of receiving macro risks. and german industry orders rising more than expected in august. up by 1%. the xetra dax and germ no up by 0.1%. ftse down by 0.2me men0.2. back to you. >>> emerging hedge fund investors kicked off the san francisco investment conference yesterday. and the founder and ceo of social capital told the crowd that workday, an enterprise softw

remember, jet fuel is priced in dollars so the falling pound has made it more expensive for easyjet tote its aircraft. now, while the depreciating pound may be hurting airlines, it is helping deal flow. according to a consulting firm, the uk has become the second most popular country in the world for inbound m&a overtaking switzerland. something to watch. jon, back to you. >> thank you, seema. >>> shares of twitter sinking today on kara swisher's report that google, disney, not even am interested in buying the company at least for now. but the first head of growth at facebook says twitter's problems go deeper. kate kelly is live at cnbc's one market with more. kate? >> good morning, i had an interesting talk yesterday at the san francisco conference with social capital's founder. he dismissed the idea of a twitter purchase as insane and not making any sense. he noted it would involve spending a huge hunk of sale force's market cap to acquire something worth a small fraction of that that is also not growing well. then he ran through some of the ways which twitter, in his view, is a brok

easyjet popping up this morning, we are expecting and the uk airport story tomorrow.morrow is probably now the most likely date. easyjet rising my 3% post up interesting stock story to come back to those as we work our way to the program. let's get everybody caught up. he was bloomberg first world news. juliette: thank you, wall street of theriting some biggest checks ever around at&t's takeover of time warner. there was some concerned the $40 billion loan they get caught up in a regulatory impasse. jpmorgan has pledged the $5 billion with bank of america providing the risk was at that is it according to some of the knowledge of the matter. at&t didn't immediately reply to e-mail. is headed foruan a record low as chinese policymakers signal they're ready to allow declines amid slumping exports. some analysts think the pbo see has reduced after the yuan in the imf currency -- reserve currency basket. opposition leadership will stand aside and let acting prime minister take office for a second term for step is signals the end of the nation's 10 month political impasse.

a trading update coming out from easyjet.is the company at that has --has underperformed because of the terrorist threat that airlines are operating under. the pound leg as a guiding force. ed as a guiding force. there was a pilot strike, but that seems to have been called off. we are waiting for a ruling for quadrilla. they have had a battle to find out whether they will be able to do hydraulic fracture drilling, unitedg here in the kingdom, in north england in particular. they want to crack as many as eight wells -- frack as many as eight wells. drilla will be up against eight groups. people are try to work out just how much capacity they need to do this kind of business in the u k. the drilling of these wells will be watched closely. this as the opposition of the labour party says that they would ban fracking. angie: thank you for that. opec agreed last week to cut output. the question now is how to do it. we have our energy markets guru joining us. what is going to happen in istanbul next week, and what can we expect out

easyjet is under some serious pressure and that is down about 9%. caci five and that is in france and the german dax up fractionally as well. nicole: u.s. stocks stop a losing streak with a 112-point gain. features for the dow up nine-point. nasdaq futures of 2.5 points this morning. nicole: boosting oil fire boosting oil five of the six frustrating days. thirteen cents at 4970-barrel and gold full text the dollar 30 at 1267 nature and spirit lauren: the jobs report for the month of september penetrators waiting on that tape friday morning about 170,000 jobs have been added. you can see the dollar is stronger against the euro at 111. the u.k. pound at 127. the canadian dollar, mexican peso in japanese and this morning. nicole: the same cent galaxy note seven goes up in smoke and cause a southwest airlines plane to be evacuated in louisville. the phone was one of the replacements following a major recall. the good news is no one on the flight was injured. >> it was a little disheartening to see that happen on the plane, but to hear somebody knowing i

and you have the likes of lufthansa, easyjet also trading higher. to the down side, ericsson and nokia on the loser list, being the main stocks to be hit very, very hard this morning in trade, which is why you're looking at technology off around 2%. let's get on to it, the ericsson story. ericsson shares trading sharply lower after the company issued a third quarter profit warning citing weak demand for mobile broadband. third quarter sales fell sharply by 14% as gross margins declined. the company said the results are "significantly lower than previously expected." now speaking with cnbc earlier, the senior technology analyst said the announcement took all analysts by surprise. >> this is worse than everybody expected, including myself. i slashed my own outlook two weeks ago. some thought i was much too low than others. in parts of the world it's truly weak. so this trend is expected to continue, and at the conference call it would be interesting to listen about what they have to say about that. it's 30% below consensus of '17, so i have to adjust

iag is doing well, there france is doing well, easyjet is up by 2.21%.downside, the big names -- publicis is trading down. right. let's get a catch-up on what's happening around the world with the first word news into juliette saly. juliette: thank you. economists surveyed by bloomberg protect mario draghi is unlikely to announce fresh measures at today's meeting even though growth remains feeble. but they do see the december decision is the most likely for additional stimulus or quantitative easing changes. the european central banks qe program is currently scheduled to end in march. you can follow the ecb decision and news conference right here on bloomberg. allianz chief economic advisor mohamed el-erian says a december fed hike is likely, but not a done deal. the columnist also said central banks have distorted public market and investors may be playing to close attention to the timing. >> we now have a market that is obsessed with the wrong thing. the market is overly obsessed with the timing of the next hike, and hasn't fully understood that we can

easyjet down by 3.8%. that is the negative aspect.tocks like anglo, bhp trading up really quite strongly. let's move on that with the flash crash that happened overnight. so much of what is being discussed. what are the implications of it? interesting to see what is happening with guilds. that is the tenure guilt. that's the 10 year guilt. here's the bloomberg first word news with sebastian salek. that is according to people familiar with the discussion. advisors at top wall street firms are sticking to the german lender about ideas including a share sell. the equity reports the bank is running an ipo any management unit. there's a bank declined to comment. china's foreign exchange revert -- reserve declined a five-year loan. the pbo sete says it will stockpile $3.1 trillion just below economists estimates. japan needs a double dose of monetary and fiscal stimulus including further easing by the central bank next month. of premised abe economic advisers. -- says one of prime minister abe's economic advisers. hurricane matthew is said