anna: geoffrey yu, cio, head of u.k.ent, ubs private on the stays with us program. up next, stocks on the move. results, and we focus in on the oil stocks and the rally in oil market as a result of what is being reported as an attack on a tanker, and iranian tanker. we will get more details on that. this is bloomberg. ♪ matt: welcome back to the european open, we are 11 minutes into the trading day and looking at decent gains across european equity indexes. the dax up about 1%. sap is a huge contributor to that after naming a new ceo. id not want to steal the thunder of annmarie hordern, you have sap on your list. it is jumping more than 7%, bill mcdermott stepping down, and two co-ceo's reiterated their full-year outlook for 2019-20. wpp to the downside. across, cutting its sales forecast again, the second time in three months they have done this. plunging.absolutely down some 12%, cut its outlook for the financial year. the unrest in hong kong is weighing on their bottom line. they look to make up the hong kong sales e

geoffrey yu is with ubs wealth management at we've got much more coming up. we barely touched on other global news. also all going on in asia including very difficult protests in hong kong. a good time to speak with meredith sumpter of eurasia group. please stay with us in westminster. this is bloomberg. ♪

geoffrey yu is with ubs wealth management at we've got much more coming up.r global news. also all going on in asia including very difficult protests in hong kong. a good time to speak with meredith sumpter of eurasia group. please stay with us in westminster. this is bloomberg. ♪ francine: i am francine lacqua here at westminster. tom keene in new york. we will look at brexit. china's top trade negotiator has launched a signal that talks with washington are making progress. both sides are working toward a partial deal. vice president mike pence will deliver a speech on thursday. let's get back, geoffrey yu. terms of aced in an trade deal between the u.s. and china? we are lose -- we are moving closer to a deal. geoffrey: markets believe that we could get hostilities on tariffs. i don't think there is much expectation that it will be rolled back. china seems to be pushing to aggressively -- it doesn't seem to be pushing to aggressively. can any side pull out? i think there is going to be a lot of skepticism. further that prevents escalation, the markets will

geoffrey yu is still with me. show they said it was a mixed muddle. on moreet is betting rate cuts. you think we had a seminal moment on thursday with the services data? geoffrey: i would say it may you vogue -- i would say it may evoke a rethink. if that comes off the ball, we will have to reassess. it is data dependent. is it beyond easing and beyond cuts? what else is there? will be administration start to talk about some kind of stimulus again? there is talk about global stimulus here and in the eurozone. as draghi said, fiscal is the next move and that is why i think monetary policy needs to be a bit careful as well. manus: what is the biggest fiscal trade i should be trying to engineer? time to deliver a fiscal response on a global level, how do i engineer the portfolio that tracks that in the median term? -- that: global level is really important. a multiplier effect. are we looking at haphazard or selected individuals where you identify the countries which are more flexible and nimble at pushing through fiscal stimulus or will we see, either by other, a coordinated response?

thanks to geoffrey yu joining us from ubs wealth management. vonnie: back to earnings.lroading routes continue to see trade tensions and the slow down in trade manufacturing threatening weakness for the u.s. economy. union pacific is suffering the steepest drop in carloads. union pacific ceo lance fritz joins us from omaha. a very open call as usual with yourself. you do not shy away from weaknesses in the earnings. you also mentioned headcount cuts. what are you anticipating in terms of headcount cuts for the rest of 2019 and into 2020? lance: what we shared on our call was even though the topline volume dropped 8%, through productivity initiatives at the x work on our operating team, we were able to match that with overall headcount down about 13%, showing real productivity, which fundamentally shifted the cost structure of the company. as we look forward to the fourth quarter, we said year-over-year comparison unemployment might look down 15%. we are anticipating volume in the fourth quarter to look about like what volume look like in the third quarter in terms of a