party by comments about italy's only credit it is also reported to be interested the german finance ministry says the government is not in a rush to sell its stake. is a new european banking giant forming let's go to the german financial capital frankfurt what daniel koch is standing by what truth is there to the rumors. well when you talk to experts here on the trading floor they're pretty sure that those rumors are actually true even though we're hearing from the finance minister you just mentioned that no clarification yet but actually you know it makes sense the german government was jumping in when all of the banks were in this big financial crisis they jumped in by that time with more than five billion euros now we're hearing that by selling shares they could at least get some of their money back or wrong three point two billion euros are in the discussion and you know when you talk to investors you on the trading floor they are very much excited about this new shares of. where one of the strongest winners today here on the trading floor they were up at some time with almost four perce

power comments about italy's unique credit is also reported to be interest in the german finance ministry says the government is not in a rush to sell its stake. is a new european banking giant following let's go to the german financial capital frankfurt what daniel corp is standing by what truth is there to the rumors. well when you talk to experts here on the trading floor they're pretty sure those rumors are actually true even though we're hearing from the finance minister you just mentioned that no clarification yet but actually you know it makes sense the german government was jumping in when all of the banks were in this big financial crisis they jumped in by that time with more than five billion euros now we're hearing that by selling shares they could at least get some of their money back around three point two billion euros are in the discussion and you know when you talk to investors here on the trading floor they are very much excited about this new shares of. where one of the strongest winners today here on the trading floor they were up at some time with almost four percent a

at thell mean an opening german finance ministry. what does the coalition look like? if it involves the greens are fdp, who getse the finance ministry? the greeks will be hoping it is the greens. they are talking about a possible successor from the fdp which would not change the finance ministries views. merkel may be open to more financial integration. wolfgang schaeuble was not. probably no change to the german position. alix: it is like shuffling your cabinet in the u.s. the euro is moving, around the lows of the session. fed chair janet yellen maintained her view that gradual rate increases are needed, despite weak inflation. is still thinks it temporary, especially if you look at the trimmed mean inflation. this is what she had to say. yellen: for these reasons, and given that monetary policy affects economic activity and inflation with a substantial lag, it will be important to keep monetary policy on hold until inflation is back to 2%. alix: earlier this morning, daniel cerullo said there is nothing to not suspend off this gra

guy: there is some talk that if up with 12% in october, they could end up taking over the german finance ministryy? matt: if you look at the way angela merkel and wolfgang schaeuble are headed, they want a deeper union between the european countries. it looks like the way they are headed right now could end up with, for example, eurobonds. that is something the fdp is certainly against. that would be a red line they ar would not agree with. the fdp would only be forgiving a haircut if they could throw them out of the eurozone. tom: matt miller, thank you. james sweeney with credit suisse will do us a solid on jobs day. carl riccadonna with tv . you can see the trading desk. that is a bowtie. i will pick that one out today. gasoline ind america, and you can feel that chart. stay with us. this is bloomberg. ♪ tom: you will be briefed at 8:30 a.m. on jobs day. guy johnson in london, tom keene in new york. let's start our pre-briefing now. let's go to the chart. the unemployment rate. long-term,rs, the structural, almost deleted go to the harbor of 2008, much like what we saw, down here is 4%. no

the same thing and would love to have an excuse from some of the more rigid policies of the german finance ministry. i actually, i think he can give us cover. the austrian problem is actually a real one. i agree with you. austria has been flirting with russia and had a really close in the last election. i worry about that. it's not to say there isn't an austrian civil society on the other side of all that, there is, but i think that austrian commitment to western-style democracy is looking a little tenuous these days. it appears to be closer to the thinking. i would like to say a word on vladimir putin. i think we upsets too much about him. i think what we should really be worried about is the fact of the aggression in this internal affairs of western democracy, hours and yours and europe. it is not going to stop until russia becomes a different kind of country. and because it is, that is a very difficult and perhaps impossible proposition that that kind of action by russia is going to remain a challenge for us for the foreseeable future and because we no longer have an iron curtain between russia

there is no conceivable way this election in germany is going to change the german finance ministry'swards fiscal policy. we will probably get more investment in germany but not the moves people are talking about. it is asking for something different from fiscal stimulus. alix: who are you most excited to hear from, janet yellen, mark carney, or mario draghi? in all cases, we had central bankers that want to convince the market they will move forward in respective of what is happening politically or in the economy. they all work on the assumption the economy will be able to start the programs they have in mind of tightening. i think the language is going to from one to the next. it is something i think the markets are expecting right now. the only thing is the markets are saying he will begin your tightening -- he will begin your tightening but you want to be able to pursue it beyond six or nine months because the economy will force you to slow down your tightening. short-term, i think the road is clear. alix: short-term, ok. goldman sachs said they still look for nine rate hikes thro

finance ministry just meant no. yet but actually you know it makes sense the german government was jumping in when all of the bands were in this crisis they jumped in by that time with more than five billion euros now we're hearing that by selling shares they could at least get some of their money back over on three point two billion euros are in the discussion and you know when you talk to investors here on the trading floor they're very much excited about this new shares of. where one of the strongest winner today here on the trading floor they were up at some time with almost four percent and this is also happening of course after the latest decision yesterday for higher interest rates in the united states coming up most likely in december. reports are coming in that the european union has agreed on a new set of sanctions against the country north korea that is the measures reportedly include an embargo on e.u. exports of oil and the reduction to the amount of money north korean workers in europe can send home the block also wants to blacklist more north korean individuals a move which would free. as their assets an

terms of protocol the second highest job in the german state he has no prospect he's not going to be finance minister anymore and that is in fact a ministry that the free democrats the business friendly liberals. aiming for there is being space made for it's the exactly that kind of coalition constellation yeah gong show believing as finance ministers is really the end of an era isn't it now i'm ackles sister party in bavaria the c.s.u. they were especially hard hit by the success of the far right turn in for germany what does that mean for the formation of any new government that in fact puts another break on developments because in fact amongst the bavarian party the knives are out for the leader of that party is does not look likely to survive as leader there will be a party congress in mid november and the leadership will be decided then that's also crucial for these coalition talks so i'm told that this is the side as well not much movement is possible in coalition talks so we have a whole lot of factors that will mean that the formation of a new government in germany will really take a very long time ok a lot of undecided variables

finance ministry. and that could be quite tricky for marco as well because if he is the right wing economic base that's upset some germans not just to do with immigration but to do with poor living conditions and poor quality of life that led to this revolt some people. wanted to back the f.t. as well so that could be difficult but you know she she is still in charge and she will get a coalition what she has said and she said so already is of the main job is to try to get those voters back to. germany has a massive budget surplus it's got loads of money and you would think probably the main thing to do is actually start to spend some money on poor workers houses and wages in living conditions so they don't think that immigrants are the problem all the time all right lawrence many thanks indeed. and while lawrence is speaking there you can see live pictures on the right of the screen there a press conference by the far right part of the a.f.p. which is one eighty around eighty seats in parliament that was. the party's. speaking to the press alexander. the other leader of the party was speaking a little earlier we had peop

germans act more like the french, spend more. that's the only way it will work it's time now to build on that >> are you in favor of a common finance ministry, common budget and all that that seems like too much integration that maybe some states would take advantage of, and others wouldn't be so happy about. >> clearly >> if you ask any person in germany or the netherlands, they would object to it completely. they would keep their sovereignty. they don't want to have the transfer union in the end if you want a banking union or monetary union, you can't stop and not have a fiscal union or political union it's the choice we made. we're only halfway >> thank you very much for that. >> secretary of state rex tillerson is set to arrive at downing street to meet boris johnson. he should be arriving any minute now. he will also be meeting the british prime minister theresa may at downing street. after that, he'll be meeting the foreign minister, boris johnson. north korea, libya, they're expected to dominate the talks which are being held 9:30 is the expected time for that arrival there >>> disgraced pharma executive martin shkreli has been jaile

marty chance as the leader, i am sure that he will want that finance ministry post if he comes -- if the spd are in government again. the germankets have been very used to the ever present merkel and ever present shop look. if he wants to be replaced by schulz who is much more euro sympathetic, given his role as commissioner president -- parlett present -- parliament president. that could be a significant shift, not a shattering one, but in terms of the longer-term consequences, macron coming in maybe potential positive things happening as a result of that over the longer-term. that for me could be the sort of outlier amongst the many risks. mark: nandini roma -- nandini ramakrishnan and steven barrow, thanks to both. johnson. joins guy this is bloomberg. ♪ >> it is back to brexit for prime minister may and the conservatives. is the prime minister in control of her party. president trump belabored on labor day, responding to the clear and present danger of north korea. meanwhile, the president and his attorney general consider daca and the dreamers. it is the $30 billion role of united technologies as they rockwell collins. th

german bunds and to the market in general that short blurb stays in -- schaeuble stays in post? guest: he has been a minister.ing finance if he were to step down and the to runninge claim the finance ministryhey to enter a coalition government. if you were to vacate the majoron, i don't see a transition on the fiscal front, but terminally will be running -- germany will be running a balanced budget. it will come up on the you -- european policy fronts. macron will make a pro-european speech, talking about federal structure for the eurozone. the ftp once a confederation of independent states that run a role-based fiscal policy. that's the euro side of the coin and we have seen a little bit of euro weakness this morning. what about the equity side of the coin? do you see any problem with the greens coming into a coalition when automakers are under pressure in this country? guest: i don't think we will see major changes to environmental or industrial quality on that front. many of these changes are already afoot and have been brought in by merkel's government already. the withdrawal from the coal industry, the changes in the automobile industry in the wake of the diesel scandal. expect, even

our secretary does runs the german budget so i think we could see a different approach to the budget if, in fact, mr. lintner and the free democrats get that finance ministry. >> that's very interesting that's the classic use of the term liberal from, i don't know, 70, 80 years ago meant more libertarian than -- it's now analogous to progressive that's an important note you make that could mean if you hear in germany the liberals are taking over, it sounds like it's not. >> very much they're free market oriented they're driving very hard on innovation one of their central platforms was to make it easier for companies to start up in germany which has been a high barrier to entry. i do think in terms of economic policies broadly, if, in fact, they put together this three-party coalition, a so-called jamaica coalition, because it would be the cdu, the party represented by the color bla black, the liberals represented by the party yellow and the green and those are the colors of the jamaica flag. if they do send up that tripartaid coalition, the free democrats, the liberals will have a very pronounced area on economic policy. i think that will be good for germ