the governing council has different minds. no surprises there.y the maintaining of monetary policy stance today. what are the main risks/ from all main risk viewpoints but especially also for my financial stability viewpoint is a downturn in the economy. whether it is global or the euro zone, this will be the main risk from all viewpoints. from the side of convergence of inflation to our objective. obviously from the angle of maintaining a high level of employment and economic activity and of nominal wage growth as we have seen today. from the angle of financial stability itself, it is clearly one of the great benefits that the banking sector or all players in the financial system had from this monetary policy was the extraordinary improvement in the quality of their credit, other assets more generally. that comes with recovery, which basically affected positively the profitability of the banking system. thank you. >> thank you very much. take partine lagarde in the discussion or express views on monetary policy? bushy in full agreement with the

presuming qe and asset purchases is definitely for the governing council to decide.nary in this sequence of events. francine: there seems to be a governing council split, do we need an urgent policy review? is important that to discuss, and something christine lagarde, the next president of the ecb, will decide. start a review of the monetary policy framework. i find it important to analyze the long-term natural rate of interest or population aging, how they affect the conditions of monetary policy. mandate is the strength in the eu treaty. find this discussion will enhance ait common understanding of our monetary policy, and improve communication by the governing council. anna: that was olli rehn speaking to francine lacqua this morning. peter chatwell, managing director, head of rates strategy, mizuho international is still with us. a really interesting question there, and it raises questions about what christine lagarde needs to do when she arrives to at a handle on this group policy makers. does she need an urgent policy review? peter: i think for sure she needs

you can see where some governing council members are coming from.you are increasingly concerned about financial stability issues at negative rates. eut: in terms of leaving the , the u.k. certainly has its own very unique northern ireland issue which other countries when i have to do with. -- would not have to deal with. bloomberg has done analysis and it shows that not only will ecb run out of bonds to buy at the end of next year, but over the next two years, there will be a 60 billion euro shortfall. draghi did not seem too worried, though he reiterated that the t's self-imposed -- capital key is self-imposed. one issue with the program is that it is very opaque. it is not like the bank of england knows what bonds they have on the balance sheet. there is more paper out there to buy and they can raise the limit from 33%. that is something christine lagarde will be having many -- about.s about for they will have to fundamental decisions about where they go next. clear, itis also very the eurozone surprise on the upside. we think the eurozone economy

i caught up with one who was once upon a time also a member of the governing council when at the time, when mario draghi uttered the famous words, whatever it takes. i asked him what he thinks would shape in and christine lagarde would inherit when it comes to the ecb. take a listen. >> she is probably the best choice she is outstanding in team building and communication she will handle the situation. it appears from the outside that governi governing council is divided my expectations that she goes out and interacts with the german and dutch public. >> why is it your view that the dutch public especially what happens inside >> it has a bit to do with what happens in the central bank. citizens have different expectations from what they expect from their central bank if you look at what is happening in the netherlands, you could say they are overstepping their mandate. you are saying, they leave us alone. history has very much tapered what citizens expect that makes the ecb task from 19 different countries currently, so difficult. >> i think we are in for interesting times i think one

it would especially bridge the gap that we have seen emerging within the governing council.: you went to frankfurt earlier this week. what did you learn there? bruno: it's interesting -- florian: it's interesting because the debate is a bit different outside. currently, germany is doing relatively badly when you just look at the industrial sector and production. but if you talk to the average thaten, they do not feel big swing in sentiment and production. them all ofoyment those stats are still relatively good. we are still close to full employment in germany. so the debate about the ecb is a completely different one. how much should the ecb actually due to boost the economy or limit the downside risks? fascinating it is to see the different views about the stance of the ecb. nejra: that is fascinating. recently, we have started to have conversations about the spillover of manufacturing pmi into services. do you still see a resilient labor market? florian: so far, the impact from industrial weakness is a relatively limited. i think a week ago we had a labor report which show

there seems to be a government council at a split. do we need policy review? that is something christine lagarde as the president of the ecb will decide. my reading is she has indicated we could start a review of monetary policy. i find it important to analyze or a population factor,t of a conditions operating in the environment of monetary policy. is the treaty, price stability. i would find this kind of discussion important. it would also enhance understanding of our strategy and improve consistent communication. >> you mentioned christine lagarde. do you think she will be able to bridge these divisions? >> she has many abilities. one of her great abilities is teambuilding. that is something we are certainly counting on. conscious policymaking and communication by the government counsel. >> has the ecb reached to the limit of what it can do to spur economic growth in the euro area? is it down to fiscal policy? >> no, that was also the message of more recent decisions by the ecb. it is important that all policy areas do their part. one is fiscal policy. the a

it is for the governing council to decide.-- i found nothing extraordinary in this sequence of events. >> there is so much pushback against negative rates. there seems to be a governing council that is split. do we need an urgent policy review? >> i think it is an important issue to discuss and i think it is something christine lagarde, the next president of the ecb, well decide. -- a review ofed our monetary policy framework. i find it important to analyze long-term. interestlower rate of the population aging out of conditions and environment of the monetary policy. and what kind of conclusions should we -- our mandate is in the e.u. treaty. definitione, to the of our price stability target. i would find this kind of discussion important, and it would also enhance a common understanding of our monetary communicationrove by the governing council. paul: bank of finland governor speaking to francine lacqua. don't forget, if you are away from a screen, you can always find in-depth analysis and the days newsmakers on bloomberg fro

we are live in frankfurt all morning as he leaves behind a divided governing council. matt miller is on the ground in frank for. let's talk about markets. what are we expecting to see for equity market? a lot of green coming through. dax futures suggesting upside. maybe something more muted on the london market. corporate earnings from germany, france, norway and in between. interest to is of anybody in banking. ftse 100 is seen weaker than other equity markets in europe. what is happening in the asian session, the standout moves. we see some upside in the asian equity market. indonesia, hong kong pointing nicely to the upside. profits even from the u.s. seems to be comforted. we will see how long that lasts. we have a lot of central banks meeting today. we have the indonesian central bank. some weakness coming in the indonesian currency. all the earnings stories today, let's not lose sight of microsoft. the sales numbers boosting expectations. u.s. futures look divided between tech and non-tech. we will look at the interest rate decisions as it comes through. matt, yo

for then frankfurt divided governing council. the e.u. leaves boris johnson hanging. the french president will demand any delay last only 15 days. welcome to "bloomberg daybreak: europe." earnings season, here we go. to this, crossing the bloomberg. it is raising its full-year 3.5 to 3.55ld to euros. that is the headline at the moment. it is also announcing clearance for metadata, so that is that deal that was announced not that long ago and it is announcing clearance for that, so that's another headline coming through and it's also reaffirming its revenue target. those are the numbers coming through. coming up on bloomberg, the ceo joins us for his first interview of the day. we will get into a lot more details and talk about the industry as well. do not miss that conversation. speaking of industry, let's take a look at basf. third quarter adjusted ebitda, that is the red headline. 1.1 2 billion euros. estimate, 1.06. there was an expectation that in be third quarter, basf could hit by slowing industrial demand. that is the story we are getting for other companies in

the currency is own financial crisis will go down in history successes leaves behind a divided governing council last month a 3rd of its members oppose his move to restart quantitative easing printing money to buy bonds from governments and companies as a way of stabilizing the euro zone. in his final press conference that ended just minutes ago he was asked by a reporter what kind of advice he has for his successor christine legarde here's what he had to say. no advice is the sheen.

county's own financial crisis will go down in history fall as successes leaves behind a divided governing council last month a 3rd of its members oppose his move to restart a quantity of easy printing money to buy bonds from governments and companies as a way of stabilizing the euro zone. and his final press conference that ended just minutes ago he was asked by a reporter what kind of advice he has for his successor christine legarde is what he had to say. no advice is lead she knows perfectly well what she has to do and by the way she has a long period of time ahead you know we should have to form her own view to get it with a go in council about what to do but the stop here really. in a frank 1st who is listening to this full statement he leaves an empty arsenal there for his successor christine legarde a chemist spector change of direction from. christine lagarde and all of her public statements so far has sort of mirrored drive these policies she said this sort of highly accommodative policy is warranted if you look at the european economy at the same time there are sort of these of these bi

meeting where they did so many things -- reserves, restarted the bond purchases, one third of the governing council opposed that. when mario draghi is speaking at he isess conference, expected to say government, step up. spend some money. when the fiscal stimulus. in the end, it is christine lagarde. she is taking the reins of the european central bank and will inherit this divided governing council and unheeded calls for fiscal stimulus. it is clear that they may need more. editor kathleen hays. our next guest is from b.n.p. paribas, head of equity research. it will be interesting to hear some people praising him. what is his legacy going to be? saved those words which to the euro which many attributed to him? the key takeaway is from his final comments. essentially, governments need to step in. an acceptable banks all across the world have pretty much done what they could do. rishaad: government have to do whatever it takes now? step innments need to with fiscal stimulus and that but othert just -- central banks across the world have made similar noise. the problem is even the -- fiscal pressures

the international monetary fund had insisted the government council feel subsidies as part of its attempt to balance the budget that turned ecuadorians dissatisfaction with their leaders into outrage. people have not seen a single penny. but nonetheless their governments have taken out a 1000000 loans. people don't see these loans. those are annoyances. you can't see the current government with so many loans building roads hi joy electric power building schools colleges everything's just blah blah blah blah blah blah blah. the reinstatement of field subsidies is also being seen as a victory for indigenous people they often have very little money and the huge jump in fuel prices also led to a huge hike in the price of their bus tickets. and for those who are like the high tech toys google has unveiled its next generation of smartphones besides standard upgrades the new pixel handsets feature a radar sensor which allows users to issue commands with hand gestures pixel for phones come in to size alongside to google's 1st moderately priced laptop but tech analysts say the phone fails to set a

central bank is said to hold his last meeting before heading over the reins several members of his governing council have publicly criticized his latest measures one top official even resigning over druggies new open ended bond buying scheme which is saying that stabilizing the euro zone. the italian economist has been at the helm of the e.c.b. for 8 years now and they couldn't have been more turbulent. by 2010 and the financial crisis that 1st struck in the us was spreading its contagion to europe economies banks entire nation seemed to be teetering on the edge when the euro came under massive pressure mario druggies comments about what he would do to save it made history. whatever it takes he said. and it would take a lot by buying up sovereign bonds issued by deeply indebted member states he allowed them to avoid going bankrupt the e.c.b. has so far spent nearly 2.6 trillion euros on them at the same time borrowing money grew cheaper than ever before to boost economic activity the e.c.b. cut its key lending rate to 0 and has kept it there for years those measures have led some to proclaim druggy

think i would agree that there is disagreement there's disagreement among all the members of the governing council in terms of what to do next and certainly by comparison to what we had let's say the beginning of this would be or even in the early years what it was a lot easier to get into a consensus decision but i think that's reflective of the times we live in times of huge uncertainties and there really structural uncertainties as to what is going to happen in the future we heard just now actually that it's going to be new tires coming from the u.s. into europe that's going to impose costs in europe and europe needs to act one of the players that needs to act in this respect is the central bank that's the reason why it exists and he needs to act but it can't be the only player that acts others have talked so the disagreements that you you see now they should be as reflective of what the best way to move forward is and i believe is actually quite natural given the challenges that we face. mario draghi has left as we've just seen the armory pretty empty for christine lagarde to fight. the econom

meant told the audience of vienna says the accuracy and importance of the limits set by the governing council on the government bond purchases have not changed i hope that the decisions now taken don't lead to these restrictions being questioned mr wildman's comments seem to be aimed at the preemptive concerns of some expert observers who say that the e.c.b. is likely to hit limits on purchases before inflation hits their target of 2 percent the e.c.b. policymakers have said that they would not hold the bond purchases until the euro zone's inflation reaches that level. now for a quick break but stay tuned because when we return amazon has come under heat for controversy around recognition technology and now that commerce giant is proposing to write their own regulations for their own program literally author and. joins a program to give us his view on what's in store for this sector and as we go to break here are those market numbers on a wild day of the. revolution . the demonstrations going to be relatively peaceful political protests. revolution is. always spontaneous or is it you know we'

. >>> today the governing council of the united auto workers union will vote on whether to accept a deal to end a month- long strike against general motors. they tentatively agreed to a four-year deal that reportedly includes a commitment from general motors to invest $9 billion in the united states and retain 9000 union jobs. if approved by the council, union members will then vote on approving the proposal. >>> a vote is set for next week by striking santa clara county workers on what the county says is it's best and final contract offer. the latest offer includes pay raises of 3% over five years and removes requirements for county employees to contribute to their healthcare coverage. however, some say this latest offer does not go far enough. >> we want tothout having to super commute or work two jobs or be homeless. we want to be able to live and serve our community. >> the workers plan to vote on that offer october 22. >>> mayor london breed says san francisco is no longer doing business with the states with restrictive abortion policies. the new policy bars city employees from trav

ecb governing council member francois says monetary policy must be active.e get into that debate, next. when you are traveling to work, tune into bloomberg radio. this is bloomberg. ♪ nejra: "bloomberg daybreak: europe." you.: good morning to i am in zurich. it is a big week for the swiss banks. say whats preparing to his numbers look like. potential job cuts on the investment bank side in asia. is that part of a bigger reduction program janko -- program? citibank coming through this morning. overall, the banks are more cautious. they are overweight swiss banks generally. we will see how that plays out in the next 24 hours. how is the green? is it cold? you know what? it is relatively mild today. my teeth have literally been chattering. at the moment, they are feeling ok. let us get back to brexit, shall we? boris johnson is hoping for a new boat on his deal today. parliamentary rules about bringing the same question twice in a session. bloomberg's maria tadeo joins us now from brussels. for more, maria, great to have you with us. what's the political calcul

financial crisis will go down in history for all his successes druggy leaves behind a divided the governing council many are unhappy about low interest rates and about his latest decision to restart quantitative easing printing money to buy government and corporate bonds as a way of stabilizing the eurozone economy this excess there will be christine legarde the former head of the international monetary. very well since early september a mystery oil spill has contaminated more than 2000 kilometers of some of brazil's most beautiful beaches critics say that the far right president i have also now those governments has been negligent in the handling of this crisis so let's bring in a reporter jonathan crane who is here in the studio with more on this story what is going on in brazil well oil has been pushing up on brazil's northeastern coast and for 2 months now more than 200 beaches have been affected and it's not just the beaches obviously it's the sea life it's being endangered we're talking birds tell it was even coral reef now as you mentioned because it was government has been accused of not do

financial crisis will go down in history for all his successes druggy leaves behind a divided governing council many are unhappy about low interest rates and about his latest decision to restart quantitative easing printing money to buy government and corporate bonds as a way of stabilizing the eurozone economy his successor will be christine legarde the former head of the international monetary fund. a 100 years ago it's believed that there were more than 2000000 penguins living along the southern coastline of namibia and south africa but now africa's penguin colonies are endangered the population is decreasing rapidly our correspondent adrienne creech visited an organization in cape town that is trying to stop this alarming decline. one last chance to relax together before things starts to get uncomfortable. an appointment with dr roberts is not something these penguins seem to be looking forward to so at the moment put are doing is we're just taking the penguins and making sure that they're all ready for release so we each one has his own thing cause this is made of this what he had he was 7

we imagine that today, he will maybe offer up a few words before she arrives as to how the governing council may come back together over governing policy here >> jeff, let's talk about christine lagarde. what will be first and foremost on the agenda as she starts to make that transition away. >> the analysts largely think that mario draghi has given her some air cover by introducing these new tools that he can allow christine lagarde to come in and bed herself down and get comfortable with the way the ecb operates before she comes out to be public about a change of strategy one of the things she will go, let's be frank mario draghi is a technocrat, not a politician lagarde will be seen as getting all around the table and being one voice. the last thing you need is this division to undermine current monetary policy. questions are being asked about the ecb's commitment given that you have a number of northern european bankers christine lagarde will come in and try and calm some is of this as this data continues to weaken, we'll have to see how really committed she is to the whole concept of ne

now he hands it over to christine lagarde and with the governing council split.utside the ecb headquarters is matt miller. i don't know whether we will see tears withaughs or mario draghi stepping down, but he has come under attack for what he has done. what will his legacy be? matt: there won't be any tears today. he is not really the type to cry , as far as i have seen over the past few years of coverage. he will be seen as -- he made this heroic stance with the " whatever it takes" line, his epithet for sure. he is seen as one of the savers of the euro in the crisis. there has been a lot of criticism over this divided governing committee the last three months, and certainly at the last meeting, and criticism throughout this term of negative rates. that is something that mario draghi has gotten a lot of flak for, and certainly from bank ceos but other wall street titans, negative rates is seen as a trap that is difficult to get out of and it has not gotten him closer to his inflation target. m.i.t.rio draghi is an phd. is there any permanence to the anglo-ameri

decades also coming up chile under a state of emergency after days of deadly protests the government council's a metro fare hike that sparks the past look at what is still fueling the outbreak and recent scandals have taken the shine off of canada's prime minister just to introduce who is in a close race against a conservative challenger as canada votes today in national polls plus in the bundesliga it's getting crowded at the top after shall cut loose and this is their chance to seize 1st place. i'm sorry kelly welcome to the program calls for change on the streets of lebanon as a wave of dissent continues hundreds of thousands of people have taken to the streets in protest against the government roll out of new taxes triggered the outcry the government has since backtracked the. that hasn't stopped the spread of public discontent. sunday drew the largest crowd yet all over lebanon anger at a corrupt political class and an ineffective government has reached a boiling point. and what is not to these ministers and legislators should be found in jail that thieves were boring money from other cou

t thing i'm proud off is that the way in which the governing council and myself. constantly pursued our mandate this is something that we collectively should be very very proud in a sense this is part of our legacy. never give up faced with the spiraling debt crisis in two thousand and twelve that threaten the you'll row draghi took charge shong he was unafraid to move the bank in new directions. the c. b. is ready to do whatever it takes. to preserve the euro and believe me it will be enough as fears rose that greece might crash out of the single currency draghi managed to reassure investors that he would protect the euro by using unconventional monetary tools. these included slashing interest rates into negative territory for the first time generous subsidized lenending to eurozone banks and a massive program of buying tens off billions of euros of government debt every month in an attempt to cut borrowing costs for troubled eurozone economies. in point six trillion euros wortho of assets t these unprecedented steps did help to boost employment the unenemploymen

it wasn't scripted yesterday, i spoke to the back then member of the governing council. he said he himself was surprised even though they had spoken about the need to do something bolder i guess mario draghi is a very courageous man, right. >> interesting one man who was once a candidate to replace him but fell to the way side when christine lagarde got the job. you and i have been doing this for the last eight years talking about the waxes and waning of the prospect of the european economies and what needs to happen while mario draghi is giving cover when you listen back to the kind of questions we were asking, nothing has really substantially changed. we have a bit of tape here this takes us way back to 2013 or thereabouts let's have a listen and then we'll pick it up >> i would like to ask you a question whether you have been tackling the question whether germany should spend more money, use, the fiscal space. >> the countries that have fiscal space should use it germany does have fiscal space however, we have to be nuanced about this because germany is almost close t

long period of time ahead, during which, she will have to form her own view, together with the governing councilbout what to do. jessica: nato's secretary-general says he is encouraged by the reduction of violence in syria. a two-dayhead of meeting of defense ministers in brussels. the meeting follows a temporary truce last week that start fighting in the region. brazilian president jair bolsonaro has given up on his push to appoint his son as the country's ambassador to the u.s. while the trump administration had approved the suggestion, also known as are submitted his son to brazil's senate. that is as he struggled to get enough support. instead, he is appointed a career diplomat to the position. -- has appointed a career diplomat the position. global news 24 hours a day on air and on @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. after being denied the right to fast-track his brexit deal through parliament, boris johnson once a snap election on december 12. >> the reason for having that deadline is bec

two weeks ago, i convened the very first all government council to finally have the national conversation on veterans suicide in this country. you're bringing together d.o.t., the indian health service, the national institutes of health to finally reach out and touch those american veterans that have reached the end of desperation. 20 americans take the lives each day. that number has been steady for more than 100 years, but the tragedy for us that 60% of those that take their lives have no contact with the department of veterans affairs. we must change that. we want to open our effort to combat suicide by using the free market, by opening up the aperture and providing support to charities, non governmental organizations and to the localities, those that we cannot touch. 60% we did not see. and hits all areas. but particularly in rural america and indian country, places that are hardest for us to touch. but we need everyone's help. if we just focused on the last tragic act in that veterans life, that will be another federal report that service nothing more than--. if we don't have the nat

preparatory work but certain sensitive issues such as isuming qe and purchases definitely for the governing councildecide. there is nothing extraordinary here. one of the world's most influential oil executives bob dudley recently announced he will step down from his post next year. this week he spoke with annmarie hordern in london about leaving the company at a pivotal moment for the industry. environmenthis new will create a lot of opportunities for companies that adjust to it. people want an instant solution on everything. our investors want us to do a lot of different things. like other companies as well, we will be leaders in this space. we do wind and solar and biofuels. we have thousands of people working on that as part of the transition. bp has a lot of opportunities. >> what is your advice for the incoming ceo? >> he will do a great job. he will focus on the fundamentals. bring your team together which he willdo and then, and do it great, just be really dedicated to the job. bp has a great foundation around the world. balance sheets are in good shape. i am happy to pass along the baton.

the citizens of the san francisco and the board of supervisors i'd like to thank the staff, governance, council, volunteers and supporters of sf hep-b free bay area to ensure residents are free of hepatitis b and liver cancer. i want to thank you, staff and leadership, please carol and i -- >> i'd like to introduce our council members and staff and a want to thank president yee for recognizing our gala and i want to recognize the department of public health has shared our priority with us and we have worked closely over the 12 years. what i'd like to do now is introduce the two other council members. we're a small group. we're a small engine that can and have nine members on the board and only two staff but we do a lot and you'll hear more from stewart fong. i want to introduce sharon li and francis tsang and i want to thank them because they help bring the resolution before you today and i'd like to introduce richard sao and stewart fong our executive director and have stewart say a few more words because he's a founding members from 2007. he really has the history and can brief you in terms o

there is strong disagreements athin the governing council the ecb, but i don't think that is going todraghi era in the lagarde era. guy: let's wrap it up. two quick questions. what is he going to do next? i hear rumors of the italian presidency and is germany going to miss him? alessandro: in italy, when there are elections in a number of years, he could be a leading candidate if he wants. guy: is germany going to miss him? alessandro: probably not, but i am not sure they will prefer the next option that will come to them. guy: on that note, we will wrap things that. our thanks to the authors of l'artefice.: banksl see how european are faring in this negative rate environment we currently have. trade as ithe develops, especially after we saw that poor manufacturing data out of the u.s.. microsoft, amazon, twitter reporting later this week. it is a busy week. this is bloomberg. ♪ am guy johnson in london. undress utermann is still with us. is germany already in recession? andreas: probably not, but it is giving head scratching. guy: can the ecb do anything about this? agree anit is to

they are also cutting the budget of some small government councils as well. people are n not necessarily buying it because they feel the government is so inefficient, so ineffective, and unable to come to a compromise e in order to benefit the working-class and what is left of the middle class. they have lost complete trust. they feel these are more empty promises that they have been making and they feel they have been giving them empty promises for so many years and they feel enough is enough. internationalthe agreement that was reached with the imf and other outside financiers? could you talk a little bit about that and went it occurs? >> absolutely. lebanon and8, members of the international community met in paris. the conference basically ended with the national community pledging an $11.1 b billion inn multi-loans and soft grant, primarily from the world bank, as well as the eu and among the countries present were saudi arabia, qatar, and russia. the idea was lebanon has to reform its economic and political system and a much more modern state in order to

it comes as the meeting shows some members of the governing council were ready to support deeper rateuts in exchange for dropping the idea of resuming bond purchases. others needed to be convinced about lowering rates at all because of concern about adverse effects. ceo has defended its decision to pull an app that tracks the location of police officers in hong kong. it said it had received credible information from authorities that the software was being used to attack police. removed from the app store after apple flip-flopped between rejecting and excepting it. the app developer dismissed the claim that an endangered anyone. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm jessica summers. this is bloomberg. paul: thanks, jessica. let's get to our top story now. trade talks wrapped up in washington with initial signs pointing to a positive day one. high-level meetings extended late into the afternoon and will continue on friday. a we just completed negotiation with china. we are doing ve