euro be saved. after laying there the european inflation mandate and explaining how policies specially towards crisis countries have further exposed the zone's flaw design, mr. stiglitz outlines steps forward, a well managed end to the single car insurance you euro experiment or a bold new system dubbed the flexible euro. reviews call this urgent of compelling interest to economists and policy maker. without further due please join me in welcoming author stigletz. >> it's a real pressure to be here again. maybe i should begin why should an american write about europe, doesn't america have problems of its own that should get our attention? well, actually, i think there are a number of reasons. i will come at the end why it's important ft. united -- for the united states. we like interesting experiments even when they aren't really great ideas. oh, okay. thank you. so what i said one of the reasons economists like me are interested in the euro is it's an interesting experiment and even if it was a foo

the euro has made things worse. in the book i argue that the europe created some of the imbalances that led to the crisis in europe in the first place. for instance, and in combination with some of the ideology that was prevalent at the time and the market failures that are pervasive, so for instance when they formed the euro, a lot of people in the financial markets thought they had taken away exchange rate risk. but they had not taken away all kinds of other commercial sovereign risks. markets you can't say how could you think that, markets are really stupid as we know. so what happened is that money flowed in to spain, portugal, greece and ireland and created real estate bubbles, the euro facilitated that. and the euro facilitated creating these crises that had been so difficult to deal with. i remember talking in 2006 and seven in spain talking to some people at the bank insane you should really be worried. you have a bubble going on, their building more homes in spain than the rest of europe put together. clear

can the euro be saved? after laying the misguided and explaining how euros policy, especially toward crisis countries have further exposed the flawed design, he outlines three possible ways forward. fundamental reforms in the structure of the eurozone and the policies imposed on the country, a a well-managed end to the single currency euro experiment, or, a bold new system dubbed the flexible euro. he the review calls this work arguments of compelling interest to economists and policymakers. without further ado, please do me in welcoming author joseph stiglitz. [applause] >> it's a real pleasure to be here again. maybe i should begin with a question, why should an american like me be writing about europe. doesn't america have enough problems of its own to get our attention? actually, i think there's a a number of reasons and i will come to it at the end of why it's important for the united states. as an economist, the point is that the euro is a really interesting experiment. we like interesting experiments

luke: today's argentinian-euro -- in euros, it is huge.t's good value for sterling investors and dollar investors once you swap the currency back. those areas where you start to see the economy get itself together and move on are quite good. the other things we are looking at our chilean airlines, asian emerging markets, some good guys in these parts of the world who are helping us pick great stocks, both sovereigns and corporate. you have to be careful, as you do with every investment, but there are opportunities to be made. nejra: thank you so much. the senior investment manager from aberdeen investment management. the big question is whether markets are complacent or just don't know what to do. vonnie: bank of america out with a report saying something similar this morning. what is needed to spur growth in south america? this is bloomberg. ♪ nejra:nejra: this is the european close with under 10 minutes left until the end of trading. now for the bloomberg business flash, a look at some of the biggest is the stories in the news right now.

euro-dollar in there for you, weakness in the euro. below 1.09 earlier in the asian session, just at that -- just about that at 109.04. for some people, the talk that there was some tapering, that was enough to convince them that an extension would be coming. let us have a look at the bond markets. german, unchanged. the u.k. at 1.08%. let us go to bloomberg first word news with shery ahn. shery: anna, thank you. china's overheated property markets show signs of cooling next month as authorities step curves in home buying. prices fell in six cities compared to four a month earlier. policymakers are seeking to avert the housing bubble without killing a main pillar of growth. hong kong stock exchange has canceled trading as typhoon haima drew closer to the financial center. schools have closed and the y're warned of the storm signals. the highest warning to remain in force. clintonrump and hillary were again in the same room, this time for the al smith memorial dinner. andidates traditionally make good-natured jokes about each other, but

>> it costs 550 euros to get to germany. >> do you offer a garantee?> yes. >> would you say it is a big risk? >> sometimes yes, sometimes no. of the 550 euros, 150 are for the document, 50 for the ticket, and the rest goes to the counterfeiters and those who organize the trip. >> the final goal of many eritreans is to reach frankfurt. the largest eritrean community in germany lives in and around frankfurt. these two women survived the perilous journey. simret abraham gave birth to her young daughter in italy, while still on the run. an ordeal she wouldn't want to repeat. >> never again. we fled because things were so bad for us in our homeland. but what we experienced during our trip was so awful that i wouldn't do it again. >> there are indications that members of the people-smuggling ring are posing as refugees and living in the frankfurt area. so far they've managed to avoid , detection by german authorities. so, for the human traffickers, it's business as usual. damien: living here in germany, i'm always struck by how the crimes of the nazis during

day,is ecb mario draghi the euro a july low. in just about 45 minutes come of the european central bank will release its latest policy decision. the central bank is widely -- thed to hold on rates future of draghi's stimulus program. we will bring you the right decision at 7:45. theresa may attends her first european union summit as the u.k. prime minister later today. challenges.es other donald trump and hillary clinton faced off in their third and final debate before the november election. trump refused to say whether he held honor the result if were not declared the winner. clinton holds a nine point lead over trump. let's continue on that lead story of the debate last night where donald trump refused to say that he would concede even if he does lose on november 8. >> what i'm saying is i will tell you at the time, i will keep you in suspense. >> that is where fine. thingsime donald thinks are not doing it his direction, he thinks whatever it is is rigged against him. david: joining us from las vegas is megan murphy. i don't

he predicts the end of the euro again. i think markets don't share that view, otherwise we could see some reaction to markets. i think markets are right not to share that view. we had these predictions before in the past. they were wrong. >> the likes of mr. krugman? >> that's another example, yes. we have taken many steps to make the euro function better, like creating the institutions i managed. we have dispersed a lot of monies to countries that have had problems. we dispersed money to five countries, four of them exited their programs, they're in fairly good shapes. some are success stories. greece is special. you may want to talk about that. it's important to have the esm. we created other institutions. we have the banking union now. so, european supervisor for the most important systemically important european banks. and very important, the countries that went into trouble, some of them lost market access, they have done their homework. >> just intrigued as to why you think there continues to be this narrative, parti

euro holding its gains.at basically recoup its losses after the ecb news was broken yesterday. sterling is still at a three-decade low. 0.3% after itd up dropped yesterday. younted to show euro-sterling. this, basically, sterling is at a five-year low versus the euro. watch when we to are talking about the pound and the impact of these concerns about a hard brexit. finally, we can't leave it without talking about the dollar. fed policymakers hinting that november is live. jpmorgan is calling a 2% treasury yield by year-end. here we are seeing the dollar tracking treasuries, underpinning the greenback. francine: thank you so much. less than five weeks until america chooses a new president, last night, the vice presidential candidates went head to head in their first and only debate. while tim kaine slammed trump on his taxes, mike pence hit on hillary clinton's e-mail controversy and the tone of her campaign. smart not to pay for our military? it is smart not to pay for veterans? it is smart not to pay for te

keep an eye on the euro as well. we are seeing euro-dollar extend low.t-brexit i know you have a keen eye on the movers. guy: i do. but before we do that, you can see euro-dollar moving this morning. you can also see the spike on my chart around what happened surrounding draghi yesterday. itinitially came up -- but felt a little more hawkish, if you are pushing the spectrum. that's where we are now. i want to quickly shut you what's happening in terms of the stock move. daimler is down nearly 2%. what's going on outside the world? let's find out. there's juliette saly. juliette: thank you. china's overheated property market shows signs of cooling last month as authorities the stepped-up curves on home. new home prices rose in 63 of the 70 cities the government tracks, down from 64 in august. prices fell in six cities compared with four a month earlier. the property market may provide some relief to policymakers, seeking to over the housing bubble. hong kong's stock exchange concentrating today as they drove closer to the global financial center. the hong

the change was the euro and the fact that the euro made it so difficult for them to adjust to a shock like the global financial crisis so that in a nutshell is why, when you have the wrong rules you have to change the rules. take ireland and spain for instance. you have a surplus before the crisis. it created the deficit and not the other way around and they insisted on buckling down on a fundamental theory that is flawed. and the example of that is years of depression. it's still barely getting back to where it was in 2008. still lost 8 years and some of what they are doing, some their success is based on what i would call bad behavior. what they're doing is trying to steal jobs from other countries by unfair tax provisions. >> now you're talking about something people in the u.s. may have followed in terms of the apple debate, right? well so would argue isn't necessarily just about more, you know, favorable tax rate but perhaps a tax credit that there are incentives that individual countries are offering to bring in business and the rest of the european commission is not so happy ab

the euro has been grinding lower.ee i trading as you can 108.81 that is also around the best conference we stayed down. will the data change that? will give us further impetus to buy the euro, or to sell it? john oversees 2 billion pounds in assets, good morning. is it about the dollar? is the trend at the moment and we are approaching the upper end of the range of the dollar. it looks like he good so get a bit further. we have the fed inching towards type thing may be in december. with the ecb continuing to ease. much -- there is not much that will stop the dollar in the short-term. guy: what are the reasons to think positively about europe at the moment? the result political risk over the next 12 months when does that could fully priced and? the euro has been in a tight range. john: most of it stems from a fairly active policy from the ecb. mario draghi remains committed to keeping the show on the road. that is helpful. we have the ratings announcement on portugal last week. they are still in the basket of bonds. it

they currently stand at around 900 billion euros. the imf says weak profitability in a low interest rate, low growth environment could erode european bank buffers and undermined their ability -- undermine their ability to support an economic recovery. the imf says they should write-off bad loans and the weakest banks should shut down or merge into stronger entities. on wall street, hosea standing by for us. the imf has come out with comments that say one in three european banks are weak and will not be able to return to sustainable profit. how concerned should we be? >> well, it is something for sure that is keeping banks up. several banks need urgent action to address nonperforming loans and a new business model. that means these banks could pose a risk to financial stability. if all of these banks would do their homework, they could project 60 billion euros of profitability in the horizon, which would make investors very happy. >> deutsche bank says its challenges will be met. what can be made of that? >> well, the german bank has

a lot has to do with euro pound flows, as euro pound is trading firmly. >>> is a december hike pricedo the moves? are these moves over the last 24 hours all weakness on the other side of these pairs? >> i think the flight to quality is driving a lot of the dollar strength. the dollar has further room to rise. dollar/yen could get to 105 before december. >> nice one. thank you for joining us. kathy lien. >>> back to the corporate news and earnings reports, constellation brands reporting second quarter results before the open. this has been one hot stock. landon dowdy has three things to watch. >> one to cheers to. the street is looking for constellation brands to post earnings of $1.65 a share on revenue of 1.9 billion. beyond the numbers, here are the three things to watch. fair rel canada listen for an update on a possible sale of its canadian wine business which would reap $1 billion this comes after constellation explored an ipo for the business back in april. the proceeds would be the same regardless. second, watch beer depletion trends to determine whether sales continue to grow.

the euro has cratered here in the last 24, 48 hours post ecb. euro 10.88.ker against the swiss franc, against gold. looks like gold and various currencies shows a broad-based euro selling. the dollar is weaker against the yen. worth watching, stocks correlate to that one. the pound is weaker again by a quarter percent. 1.2223. it was higher on that inflation number we got. >> cratered perhaps a strong word. >> mini crater. >>> gold prices in dollar terms, we'll check that right now. with the stronger dollar a bit of pressure on gold lately. down about a quarter percent or $3. >>> microsoft shares popping better than expected quarterly results. the big driver? the cloud. sales of the cloud doubling in the past quarter. satya nadella has been pushing a focus on cloud rather than pcs. >> customers choose the microsoft cloud to transform businesses and organizations. our commercial cloud annualized revenue run rate exceeds 13 billion. we remain on track to achieve our goal of 20 billion in fiscal year '18. once enterprise customers choose one of our cloud servi

caroline: what about euro pound. -- euro pound?ive us a sense of where the weakness is going to come in? the eurozone doesn't look too pretty. risk caroline, there is a that the euro weakens in the next 12 months because of the political behavior and the fact that it is highly likely that we do get more extensions of quantitative easing from the ecb. at the eurook against the dollar, because i think that is the currency that is of most interest. we think at 105, it is clear that the federal reserve is quite angry if the euro is that week. we tend to think around 110, 112. all of the big export machines in germany are functioning well at the level. caroline: export machines functioning well, neil. staying with us. we are looking ahead to the stocks to watch. one behind me, deutsche bank. we will see how that opens up. german trading looks 20 bounce on the open. we'll have it -- looks to bounce on the open. we will have it ahead. this is bloomberg. ♪ guy: welcome back. we are approaching the market open here in europe. .:53 in frankf

euro-dollar, euro is in a difficult place.bly euro-yen the way to get the biggest move if the euro were to strengthen. european investors are shoveling money at an unprecedented rate out of europe into foreign markets because he's crowded investors out of the bond market successfully. ,or a while that weakening euro for the last year, their shoveling money out of europe on the back of the policies and keeping us in a range. today we might get euro-dollar from 1.10 to 1.08. 1.30-something is more likely than parity now. if you have any hope for this outflow the euro goes higher fast. that i think is terrible for europe. but the currency would be yen strength bbing. manus: when does euro-sterling hit parity? >> only if there's a flash rally in the euro, not because of anything we do here. anna: still to come, more from the hello tomorrow global summit, including interviews with the former french economy minister, emmanuel marcon. more coming up, this is bloomberg. ♪ ♪ manus: deflation defeated. for theprices rise first time in a

it has nothing to do with the euro.he danger is forever, if they do taper their bond purchases, if they don't go on buying b onds, what then? could that send the euro much higher? anna: what happens to the euro-dollar if we see a hike in december from the fed? and what if we see an extension of quantitative easing from the ecb? >> i think in that environment, we dribble lower. anna: so, even that diversion of monetary policy is enough to give us a dribble down to the euro. >> if we get an extension to the bond purchases, that will confirm what the market expects, as opposed to breaking new ground. in the u.s., it is not a question about the december hike now, it is a question of whether we get one or two. function took the work ended a little bit of manipulation on it. of december next year, what is the market pricing? by decemberbout 1% 13. the probability stands at 12%. we might trade on divergence now and we have a strong dollar divergence, a strong fed, but the reality is, the market is not pricing in that strong of

the euro has been a disaster and it? majority for brexit is much higher than the british boat -- vote. europe is not stable and it will change over time and the minimal british ask is not beyond the pale which is migration. you have an old elite in power that has been threatened domestically on all sides, by right and left. i doubt they will be in power for that much longer, they are holding to a political judgment that is is europe and it cannot change. reality says something else. goldman sachs suggested breakup of the eu was made five times more likely by brexit. i think it is still up for grabs. tom: you have done a lot of work in theology. tell me what the new theology will be of conservatives in the united kingdom. as an outsider, i was amazed by the birmingham meetings. what will be the new post-brexit theology to conservatives? phillip: i think we are in a completely new situation. what has governed the world since the time of thatcher and reagan is extreme economic and social liberalism. for many years, we have

store. >> one euro and nine cents. >> one euro and nine cents.>> lidl. lidl market, one euro. >> do you have lidl here? no lidl, my friend. i have kids, you know. i have paid for the gasoline. you have to bargain a little because in their culture, you are stupid if you can't bargain. reprter: he used to think the women had little say in household matters, but now he knows differently. >> it's always the woman who decides about the money. and i have seen situations when they have bought tobacco or cigarettes or something and even a week later, they are bringing the same back and ask to change it to a chicken. >> ♪ reporter: learning from one another and dispelling prejudices has become almost as important to jontte as the business aspect. he plans to keep on bringing a taste of home to refugees living in finland. >> ♪ anchor: jonnte's story is a lesson we could all learn from in how to overcome prejudices and get along with each other. that's it for today, thank you for watching. in the meantime, it's goodbye from me and the whole team. see you ne

we have a plan of 250 billion euros. we decided to double it.ing right now, that we need to have more. a digital economy, future mobility, energy, human capital, we need to be a much stronger economy if we want to recover. facing --o >> were you disappointed in bratislava? in strasburg? those meetings, did you want more out of those? important is to exist. the 27 other members can say, we are moving forward. taxation commissioner. i would like us to do more on the economic. there we need to do more. even if we have some discussions with our american friends on apple, which i insist is an anti-american decision. >> the problem child of europe, is it italy? >> italy is a founding member, the third economy in the .urozone we are addressing the issues, we are discussing them. we are discussing fiscal situation. italy will muddle through and solve its own .roblems >> this europe need to be more lenient to make sure that the banking problem is solved before the referendum? union.re a rules-based we need to understand and to try to be helpful. >> the r

euro down to tenths of 1%. interms of what is happening bond markets we are yields push higher across the spectrum. particularly when we look at 10 year yields, portugal's 10 year yield up almost seven basis points. if we take a look at the stoxx 600 the equity benchmark, we are off by about 2/10 of a percent. it is a second day of losses. what is interesting about happening in europe today and what happened yesterday is that yesterday we saw banks gain while the stoxx 600 fell for the first time in seven days three and if we take a look at the stoxx 600 bank index it is headed for its greatest three-day gain in a month. the stoxx 600 and banks have actually moved in lockstep this year. this might bef speculation that we will see a pullback in stimulus from central banks. higher rates tend to be good for the financial. perhaps the knee-jerk is that we see money moving into financials. even deutsche bank gaining after a commission by germany's -- it mismarked dozens of transactions on its own books. stocks down

billionou shift 20 euros worth of bad loans.tal, 5 billion euros is what they seek to raise. i am off to radio. so i leave it with you and caroline. guy: bloomberg radio. a start of a new world for us as we come live in the u.k. we are getting some share news coming through on syngenta. let me give you the latest. overis fascinating is stock is recovering. syngenta is saying the cam china transaction which may have another dimension to it is notding the merger all that it appears. what syngenta is saying is that cam china denied talks and did so recently. this is putting together these two giants in china. and according to syngenta this may not happen. will wait and watch and see what happens. i suspect it is regulatory issues. chinese now and try to do those deals in the west, should i expect those deals to be done? this is a massive deal, syngenta -- buying up all sorts of biochemistry know-how. does that deal get done? >> no, it it is regulatory issues. part of the function of protectionism in place. businesses are considered

and actually in a world of currency volatility, the euro is a rock.ort around 110 -- i don't agree. the fundamentals against the europe outside of current account have been obvious for a long time. look at the chart. there's a lot of people waiting by the door to collect money on trades that have gone nowhere. >> yeah. don't you think with 18-month consolidation when the thing goes, it's going to rip? a monster trade if this goes. >> why can't it go in the other direction? >> i suppose it could. but it seems to me we're going to have fewer dollars here and they're going to have more euros there. >> and stronger dollar, very cautious on valuations again. look at the retail sector, any of the dollar -- you know, names that depend on that. you're looking at an earnings trajectory that's going to change rapidly. you've got to be very careful when looking at the u.s. market you said these circumstances. >>> let's stick with banks. one trader making a big bet that financials will fall even further. mike cojoins us from austin. >> xlf, the financial etf. wha

the top line, a net income of 256 million euros. the market has priced in 354 million euros.ostoking straight to the line on this. it looks like the everything costs out of this business more aggressively than the market had anticipated. caroline? caroline: when you look at that statement, it says, why the cost reduction? because the compensation. they are looking into new ways of paying bonuses. they are taking out costs by reducing pay basically, to their bankers. you are looking at the capital ratio, better than expected, up to 11.1%. that is higher than what was anticipated. it were expecting 10.9%, but it is above 11% now. so, improvement in their capital standing. what really has to be dug into is the fixed income currency commodity trading. did that improve, like we saw in the united states? they are saying overall, there was a third quarter loan loss provision of 127 million euros, more than what had been anticipated. but there is a beat, in terms of third-quarter revenue. 7.5 billion- and the euros, and the market had been looking for 7.2 billion euros. it was a huge

the pound seems to be falling less dramatically against the euro than the dollar. why is that?that a new dynamic forming? >> today, the dollar was strong across the board. that is why you are seeing that dynamic today. i do think that is an interesting point to pick up on. we look into 2017, there is a lot of political hurdles potentially for europe. this is huge that we have perhaps a clinton victory in november for the u.s., so there is a political outlook for the relatively stable. but for europe, you have big elections in france, germany, and the netherlands. these will be interesting in theng to see how far state's call in europe sustains, or not there are more protest votes coming through next year. case, moree the disharmony, that could be a situation which could create a .obble in the euro in that scenario, think it is more likely that you are going to see sterling margaret lobel against the u.s. dollar -- more vulnerable against the u.s. dollar. reporter: a lot of factors in play. brexit seems to be the driving factor this week. you think we will see more drops every t

and down against the euro as well.s yesterday of trade weighted euro -- we will show that later in the hour -- but what is the scale for the elites of england when they see sterling? and scale back to the revolution of 1848, how big of a wealth of destruction is this? thate: my personal view is i think it will be significant. that we havey reached the bottom of sterling yet, at all. it's very difficult to establish. it is a competitive issue. it is really about the risk premiums that markets want to as a in the currency consequence of expectations about what will happen to the economy and the economy's capacity to form over the medium-term. moment, you still hear a lot of -- how do i call it -- nonsense, from government ministers, who say this is a wonderful thing. we export our way to success and and sterling depreciation is a significant way of rebalancing the economy. only last part of that has any credence. it should have some impact in rebalancing the economy but only on the margin. morenk we need to see much in t

the share price fell below 10 euros. analysts spoke of a selloff. it became news, ending 6% over the previous day's close. germany's biggest lender had put aside 5 billion euros for litigation costs, but only half of that was intended for the american mortgage scandal. that means the bank has to come up with 2.5 billion euros. they are far from being sold. that is because it is questionable if they can raise the money on its own. it is similar to the downfall of lehman brothers. similar consequences are seen as unlikely by analysts. this isn't a crisis similar to lehman brothers because authorities, regulators, and a bank like this cannot default because it is relevant to the system. it has to solve its problems. the german government says a taxpayer-funded solution is near. >> let's cross over to our markets man in new york. as a, the reports about this settlement with u.s. authorities are unconfirmed. still, investors seem to buy it. reporter: it seems so, and what a day for shares. around $5.4 billion cheering up investors as banking stocks jumpe

figure of 114 million euros.asf cautioned that last week's explosion which led to it closing 24 production sites would impact full-year earnings but stopped short of changing its guidance. >>> tesla recorded a surprise quarterly profit, beating on the top and bottom line. phil lebeau has more. >> reporter: shares of tesla getting a pop after the bell following third quarter earnings that were much better than expected from the electric automaker. tesla beating the street on the top and bottom line earning 71 cents a share on a non-gaap basis. the estimate on wall street was for a loss of 54 cents a share. revenue also stronger than expected coming in at $2.29 billion. the street was expecting revenue of just under $2 billion. two key points in the earnings release from tesla. first, it's maintaining its guidance that it expects to deliver 80,000 vehicles this year. that was one key metric people were focusing on. the other one, tesla's liquidity. they ended the second quarter with $3.2 billion of cash on hand. it

one point 2758, euro-sterling. 0.88 on euro sterling.morning. ♪ jonathan: a very warm welcome. live from new york, here is the tone of the markets this tuesday. futures positive. equities pushing higher. much higher in london, up over 100 points for the first time in 16 months. -- story in the fx market the cable night -- cable rate drops to a three decade low. 1.2763. at alix: we will get the first and only vice presidential debate tonight, in virginia. tim kaine is up against donald trump's choice for the number to two spot, mike pence. the federal reserve bank president of cleveland says the economy is right for an interest rate increase and repeated that the november meeting should be viewed as live for

does this speak to the euro at all? >> we have not seen much reaction in the euro currency at the moment. against sterling, it is the looking very healthy. the brexit risk on the pound. we have seen a little bit of a switchover in the euro-dollar and how it is being funded for carriage rates elsewhere. earlier, the euro was funded, and now the dollar is being used. so, the euro is still maintaining a very good backbone at the moment. it will likely continue until that meeting of the ecb this year. manus: we will get to the consequences of that carry trade a little bit later. let's talk about t the impact to the ecb. chart.v we have a pie 1/3 of the sovereign debt is ineligible, $2.2 trillion worth of bonds yielding more than the deposit rate in terms of negatives. i am getting lost my positive and negatives. aggregatee global going more negative, now nearly $12 trillion rising at 6%. this is a real consequence for the market. >> it is. and how do they turn it around with the central banks continuing to buy a huge amount

the euro strengthened against the u.s. dollar on the back of the reports that the ecb is considering tapering its qe ram. the ecb said the governing council had not discussed the topic stated in a latest report suggesting that the bank could wind back its asset program by 10 billion euros a month. thomas, do you think this was clearly a bogus report? the consensus is for the ecb to extend qe, not dial it back. >> i think there's not really much in that report. the way we see it is that ecb will extend. there will be a discussion about tapering coming up, but it's too early. it's very early days. even that report suggests it could extend. our call is that in december it will extend because you have all the political uncertainty coming up in europe and you also have, we think, still core inflation low in europe. >> under whatul they taper? is it if inflation hits the target or if economic growth shoots up? >> would be a combination of growth and inflation. we need to be aware of the increasing criticism of negative rates, qe

euro that is marginally stronger.rom new york, this is bloomberg. ♪ alix: this is "bloomberg daybreak." we had a time of speakers, and we will hear from four of them today, including m bullard and mr. dudley. dean served as a senior economist at the fed. thank you for joining us. you take a look at where fed fund futures are trading -- what more can be placed in when we hear from the speakers this week? dean: i do nothing we will see a lot more priced in this week. the data that comes out will be the determining factor and whether the fed moves in december. the speakers will likely keep december in play, pointing to that as likely, but we will not know for sure until we see the next important parts. alix: it seems like the story is no longer december. it he comes what we see in 2017. the hawks may win short-term, but is the dovish call still there for 2017? dean: that is what we have been hearing from those in the middle of the committee as well as the dovish side. they want to move slowly. they will hike in december,

the euro has gone nowhere for months.through this trading range we have been in a couple of quarters. $1.09. we are testing a march low. yields stable around 175. david: here is what you need to know what this hour. a snapshot of the global economy. 2016 forecastts and honeywell posting its first profit drop since 2011. we can call it the draghi hangover fallen to the lowest level since march. linton trump and hillary trading in the boxing gloves for humor last night in new york. the u.s. presidential candidates appeared on stage together one night after facing off in the third and final debate ahead of the elections. that is what you need to know what this hour. we now want to turn back to the question of the e.c.b. and the uncertainty surrounding the future of the qe program. mario draghi did not provide much clarity at yesterday's press conference. mario draghi: sometimes it is important to say what we did not discuss. we did not discuss tapering. that was never discussed. we have not yet discussed that at all. we have

he is asking for 2 million euros in damages. he says if he is allowed back in the fold, the line is still drawn. he will not be supporting the presidential bid. tuesday he said he prefers nicolas sarkozy to her. fascinating fact you might not know. in the u.s., every single american produces 4.5 pounds, or two kilos, of garbage every day. one man is trying to do his part to make that change. activistnvironmental rob greenfield. he has been strolling around new york for two weeks, weighted down with trash. been tying bags of trash to his body pretty says it is not a stunt. he wants americans to wake up to the garbage problem. he was carrying around organic waste as well but gave up after the snow became too overwhelming. -- after the smell became too overwhelming. as presidential candidates in the u.s. face off in their one and only debate. mike pence and tim kaine crashed -- tencent tim kaine clashed early on. -- mike pence and tim kaine clashed early on. the worst caribbean storm in nearly a decade is due to head toward eastern

potentially 320 euro trailed riffs without a free trade deal. other carmakers like toyota said they now expect similar aassurances for their u.k. operations. >> a crackdown on money who make money on the sharing economy by cars parents ir or cars. they should therefore be taxed on those earnings. >> homes, cars, and even tools. nowa days, everything is for hire. thousands in france of making billings out of something they own without paying tax. this student rents out her car to pick up a bit of extra cash, announcing -- amounting to several thousand euros a year. >> it cost quite a bit of money to run the car. petrol, maintenance, insurance so the 234k i get from renting it out allows me to keep it. >> french lawmakers want to crack down on the sharing academy. so renting out vehicles or appliances would be subject to the same tax as professional services if they own more than 7, 20 europeos a year. the same goes for those renting out their homes though the cap would be set higher at 23,000 euros a year. not all m.p.'s are happy about the propo

has set aside 40 million euros to rebuild. laura: an alarming report saying that human activity is decimating the planets wildlife. including mammals, fish, and birds have disappeared since 1970. the trend will continue if humans don't change their behavior. fish are freshwater among those paying the heaviest toll. 80 1% have disappeared in the past four decades according to the world wildlife fund report. mammals and marine animals. 38 and 36% of them have been wiped off the earth respectively. the reason, human activity. while other species have been decimated, the world's human population has doubled. habitatsken animals' and hunted massively. animals suffer from pollution and invasive species and disease. some have struggled from climate change from which is likely to become a greater threat in years to come. >> wildlife is disappearing within our lifetimes at an unprecedented rate. fire diversity forms the foundation of -- biodiversity forms the foundation of healthy species. reporter: the report says the earth is in a ma

euro-sterling not moving the same amount, euro weaker versus dollar. francine: today is u.s. jobs day and i wanted to start with pound because we saw that, because of the algorithm flash crash. we will ask erik nielsen how he wants to quantify it. pressure on the euro stoxx 600. 2% ande bank is gaining we understand it is holding informal talks with securities firms to explore options including raising capital, if legal bills require it. joining us to make sense of this extraordinary move in the pound is jane foley, senior fx strategist in london and also with us is unicredit chief economist erik nielsen. jane, what happened in pound last night? jane: perhaps it was the fat fingers algorithm or illiquidity but one of the things is quite telling is people would agree there were a lot of sell orders triggered and that snowballed. one of the big pieces of news that we are left with is perhaps the unsurprising news that there were a lot of sell orders, and sterling is quite obviously a vulnerable currency. i think that was very clear during the course of the week and clear after

we're seeing the euro dollar hanging on right around 1.08. we have come right back down again after the latest ecb nonactivity. i think we can agree not even dropping a hint about tapering. it does seem we're getting ahead of ourselves at this stage given they still stand ready to act. now the brazilian hitting the highest level in more than a year boosted by central bank survey that expects the currency to hold on to its recent advances. you're looking here at a real boost. this year something like a 21% change. so the brazilian real stronger by more than 20% over the past 12 months. mexico's inflation rate hitting an 18-month high. supporting bets on a possible interest rate hike in the near future. the peso rebounding from historic lows against the u.s. dollar partly on the back of recent poll data showing us that hillary clinton is leading in the u.s. presidential election race. rob is the co-head of global emerging market debt and he's with us. good morning. >> good morning. >> emerging market debt, we have seen a surge in emerging marke

. >> greece is to get 1.1 billion euros. some say this is because the government has delayed privatization projects. now it looks like athens is ready to sell state owned firms, something many people do not want. >> i'm absolutely against privatizing water works. the government hopes to rake and 50 billion euros that way that many economists remain skeptical. greece is promised any reforms in the past and many have yet to be delivered. christopher: that is it from the business desk. world soccer's governing body fifa is being sued for not ensuring worker rights. thousands of migrant workers are currently in -- employed in qatar as he gets ready for the 2020 world cup. fifa must now be held to account. >> the dust -- -- federation wants to influence the labor standards. it has claimed that he had his passport taken on arrival and was forced to work under harsh conditions for 18 months without pay. he is seeking 11,500 and compensation. >> we see this as modern family -- slavery. their passports are confiscated, they cannot tr

dollar and the euro has risen. talk about the pound a look at an index which we should promote as much as possible because it is a wonderful index, the british pound -- the bloomberg pound index measuring sterling against several of its peers. richard: i think this is the first week in seven we have seen a rise in the bloomberg pound index and what is happening is there is a lot of crowded positioning and we look forward to the gdp numbers because if you look at the post brexit data we have seen it is actually been ok. it could be that this number is actually a surprise to the upside and maybe that gives the pound more upside at least in the short term. , article a big concern 50, long-term is something people are more concerned about. mark: how hard is it to trade sterling when it is linked to the daily machinations of the political system? does that make it almost impossible to predict where it is heading? ithard: i think it makes very difficult because notwithstanding the better data, you get political headlines

i owe the bank 2400 euros.hey were going to seize my apartment and put it up for auction for just 80,000 euros. >> for now, banks and authorities can get as tough as they like. they've got the law on their side. the leftwing greek government had promised to protect the poor and ensure they could keep their homes, but in response to pressure from greece's creditors, what's known as the "katseli law" was relaxed. anna korsanou is a lawyer. she gets dozens of calls every day from people who fear they'll lose their homes. >> there is growing public anger and desperation. these people have nothing, and the government promised it would cancel their debts. that didn't happen. instead, there have been tax hikes. that makes people even less likely to pay off their debts. >> thanks to the "i don't pay" activists, the couple from athens whose electricity was turned off, can turn the lights on again, but they're still worried their home might be seized. >> that's my greatest fear. i've already consulted a lawyer, even thou

oft is against an estimate 724 million euros. 9% to 63umbers is up euros. that is better than estimated. it is also raising the eps target. speaking to the ceo of this lifecycle product. about all ofto him these things driving his business and the broader economic backdrop. this is for the third quarter quarter earnings. core earnings.r the core operating income came in at $3.8 billion. they beat on the operating level but the overall core redings-per-share -- a nice headline. they are sticking to the full year. of aroundn equities 0.3%. corporate earnings generally upbeat from the u.s. session. beating estimates so far. lifting global equities generally. the dollar index looks flat but there is movement against the yen and the chinese currency. work function on the bloomberg suggesting more than a 70% chance of a rate hike in december. manus: the dollar is the triumphant trade. it is on a divergent run. on a seven-month run. three hikes -- that is what evans says for 2017. manufacturing numbers were good yesterday. can this continue for the dollar and will

store. >> one euro and nine cents. >> one euro. >> one euro and nine cents.. lidl market, one euro. >> do you have lidl here? no lidl, my friend. i have kids, you know. i have paid for the gasoline. you have to bargain a little because in their culture, you are stupid if you can't bargain. reprter: he used to think the women had little say in household matters, but now he knows differently. >> it's always the woman who decides about the money. and i have seen situations when they have bought tobacco or cigarettes or something and even a week later, they are bringing the same back and ask to change it to a chicken. >> ♪ reporter: learning from one another and dispelling prejudices has become almost as important to jontte as the business aspect. he plans to keep on bringing a taste of home to refugees living in finland. >> ♪ anchor: jonnte's story is a lesson we could all learn from in how to overcome prejudices and get along with each other. that's it for today, thank you for watching. in the meantime, it's goodbye from me and the whole team. see you next time

one billion euros in 2019.ers will meet on november 24 to approve a plan to raise as much as 5 billion euros of new capital. bloomberg will speak exclusively to the ceo of monte dei paschi, marco verrilli -- marco morelli, at 7:00 a.m. u.k. time. syngenta says completion of a takeover by chemchina is expected to push back to the first quarter of next year. not indicates it is confident the e.u. will decide before a friday deadline to approve the deal without antitrust strings attached. the alternative is an extended probe that could and at least another four months to the process. novartis says profit fell for the seventh straight quarter as generic competition eroded sales a blockbuster cancer treatment gleevec. earnings excluding some items $1.23 a share. europe's second-biggest drugmaker by sales is also grappling with a slump in its eye care division. it is banking on its newer heart and psoriasis treatments. that is your bloomberg business flash. i am kumutha ramanathan them. that's the fed will raise rate

the cost on the top line will be 1.1 billion euros.he company says it remains committed to progressive dividends. is this the worst case scenario for you? will all jobs be let go over the next five years? >> yes, unfortunately as we invest, and continue to invest, in a digital transformation, and it means less jobs. the important point is we have strong commercial momentum. we are growing profitability. we are growing our roe on the back of increasing capital ratios. we have to move to the next stage. time waits for no man. we are ready to move to the next stage of our digital transformation, which unfortunately means a lower fte. it means ing can navigate a low rate environment and generate growth. >> deutsche bank set to reach an agreement with labor representatives that will pave the way to eliminate 1000 jobs according to people with knowledge of the matter. this is preannounced. they are also nearing a settlement with the doj to not pay $14 billion? >> it is about getting to the finish line on some of these items, cutting jobs the

we are totally flat on the euro stoxx 50 futures. they were lower and the dax eating into the green. we were digging into what was draghi was saying. guy: equities are flat. let me take you to the gmm. there are some great stories loading around. in australia.ssue a similar story in new zealand. the aussie dollar bouncing on that as expectations for cuts begin to fade out of the market. keep an eye on that one. i want to walk you up here and show you what is happening with crude. crude is down, this is the russians, maybe they will want to take some cuts. we are seeing metals price out in asia really bouncing. go and check out what is happening with the aluminum price. check that out and get the charts up and take a look on back talking about big price bounces, the metals once again a big focus but oil and inflation continue to be two of the dominant themes to these markets. let's get a news update. >> thank you. apples shares fell in extended trading after the world's most unable company reported its first annual sales declined sinc

to 1.8 9 billion euros.s largest lender benefited from a surgeon fixed income trading that has lifted bank earnings in europe and the u.s. a team of citigroup derivative traders generated about $300 million of revenue this year, from surging companies and investors trying to anticipate central-bank decisions, according to people with knowledge of the matter, who say the windfall came from the bank's u.s. dollar interest rate swap. traders cantes that still make outside profits, even after regulators curb risktaking in the wake of the financial crisis. a citigroup spokesman declined to comment. general electric says it is now discussing the outright purchase of baker hughes, but is in talks about a partnerships. shares jumped as much as 19% in extended trading on a report that it was going to buy the oil provider. baker hughes is still trading higher. and that is your bloomberg business flash. nejra: thank you very much. britain is starting to feel the squeeze from brexit. reports from jfk and others all cons

program,s third greek which amounts up to 86 billion euro, already the first 29 billion euro -- as always it -- conditionality is in place. francine: and we followed the greek situation closely here on bloomberg but the outstanding point is that the imf is often forget relief in the medium return, 2018, and that in the eu, countries have been reluctant to sign up to that. is that in jeopardy because of the german election coming up next year? klaus: i don't think so. there was an intense debate earlier this year in the euro group. we are working on short-term debt relief immediately, and we are working on that. and later on we look at how much additional debt relief is needed. and greece is different from the frameworks, that the imf uses around the world is a good framework. tom: i want to congratulate you on spread narrowing. we have seen markets voice your optimism about greece. shows the constructive nature, the trend of greek economic growth. the elites need from of greece to sustain this burgeoning confidence to get back to the growth that we saw before the crisis? klaus: i think th