you can see what is happening with the ibex.eak up with the individual names look like in a moment. here's manus cranny. manus: european stocks up three quarters of 1% this week. ,ou can see basic resources they synchronize the global growth story. 5.25%, you are seeing this momentum build. financials are flat, the catalonian risk to a certain extent. let's see what happens next. the bottom of your screen you have the sterling. a lovely place this morning, it might be looking messy on the euro but british politics are messier. breaking about the 100 day moving average. that lovely chart on twitter talking about when mark carney spoke, a point sterling. explicit guidance, that does not seem to have done enough to move sterling this morning. the sterling is going to be a critically important barometer. can he challenge teresa's maze leadership -- may's leadership? when it comes to germany, a nice set of numbers. a volatile set of numbers, 3.6%. you 64.92.showing this is the deepest relative to the s&p 500 and that guy shows value.

ibex is unchanged.o point out that the ibex, even with this catalan independence saw that, has still outperformed the ftse year to date. the ibex is not doing poorly in the face of possible problems. guy. that is one of the clinical problems we are focusing on here in europe. it is interesting none of them are moving the markets now. the u.k. stuff is having an effect of a pound, but the pound has been weakening over the last few days. angela merkel has cuddled the u.k. -- has called on the u.k. and e.u.. they are still talking about money. about the money. theresa may has tried to find a deal she can sell to the skeptics back at home. my position was unchanged by theresa may's presentation, because i telephone with her. what i heard today was a confirmation. in contrast to what you hear in the british press, the process is moving forward step-by-step. you get the impression that after a few weeks you already have a final product. i found that to be absurd. is still withs us. businessiness, britain , ge

spanish stocks rally after catalonia's president stops short of declaring independence, boosting the ibex which is led higher by the banks. >>> but carles puigdemont still signs an independence document as he hopes to open talks with the spanish government >>> rise of the machines japanese equities jump to a 21-year peak on stronger than expected machinery data as the nikkei hits the highest level since december 1996. >>> and at least 17 people are dead and thousands of buildings are destroyed as a series of wildfires rage across northern california >>> good morning glad you're with us on this wednesday. it's the morning after we heard that speech from mr. puigdemont in the catalan parliament it was a climb down. yes, he did say the country or the region wants to go for independence, first he wants to go back to madrid and start talks. whether that will materialize is the big question the reaction in the market is mixed. we are not seeing a huge rally on the stoxx 600 yes, we're seeing a rally on the ibex 35, but it's not transpiring into a much bigger risk on rally in the rest of europe

i'm steve sedgwick these are your headlines spain's ibex falls and is lowered by the banks after violence around the catalonia referendum leaves people injured in police clashes. the catalon government says they have earned the right to have an independent state. >>> las vegas police say there's been a shooting at a music festival that has killed two and left 24 injured. >>> over 100,000 passengers are left stranded over europe. monarch has gone into administration and it's boosted its competitors stocks. >>> top stories, spain's ibex is here companies across all sectors as you can see are suffering with the banks amongst the hardest hit. violence broke out in catalonia as they tried to stop people from casting their votes according to the catolan health department, people were injured with security forces they fired rubber bullets and used batons and demonstrations lasted long into the evening they're calling for the resignation of the prime minister they say 90% of the over 2 million votes cast were in favor of leaving the catalon called these activities appalling. >> translator: on one

more from the ibex. we are trading just sub 10.e way after yesterday's big moves to the downside but not a long way yet. we are seeing a little bit of bottom fishing coming in some of those stocks, which in many cases have been global exposure. maybe, we are overdone on the downside. ftse gaining on the upside, which is interesting considering are a whole lot of ex-dividend for the ftse consider as well. me move my launchpad out of the way. i am seeing a little bit of a move in cable, which is maybe worth paying attention to. you are seeing the movie the downside as you can see here. that is maybe a reaction to what we saw yesterday. watch, and see whether there is any clear sense of direction. let us talk about puerto rico as well and what is happening in the united states. hit a record bonds low after president trump suggested the u.s. commonwealth could wipe out its municipal debt. bond prices raising losses after officials did that. can we really take president trump at his word? the market reacted so quickly. i have been check

the ibex 35 lagging.new elections, new regional elections in catalonia, that could be in january. the ibex 35 down by roughly 8 or 9 points overall we are supported by better-than-expected earnings coming from european corporates. in terms of the fx markets, the dollar has been up and down. we saw it up on the back of the u.s. senate passing the budget blueprint, which is key to trump's tax plan, then down as we got the new that trump seems to be favoring mr. powell for the next fed chair currently the u.s. dollar up by 0.8% against the japanese yen as we head into those elections in japan over the weekend euro/dollar 118.03, down by 0.4% on the day >>> just want to bring you some comments coming from the russian foreign minister, mr. lavrov as usual those are pretty strong he says the breakup of the iran nuclear deal would be an alarming signal for the entire international security system, including the situation on the korean peninsula he also says there is no alternative to the political dialogue on no

the ibex is trading flat.ations to the spanish press seem to point towards the fact that puigdemont will certainly move independent. the madrid ibex 35, trading down, only .1%. yeah, and this spread is not really blowing out either. we will continue to watch the situation in barcelona come in madrid. see if roy does flight -- if rajoy does fly off to brussels. i want to focus in on berlin here and germany. angela merkel faces a divided country in her task of building a coalition, according to the coleader of the german green party. exploratory talks are already underway. the chancellor met with leaders yesterday. to two senior lawmakers. i spoke with michael toy are after he got out of the meeting and asked him about his party's demands in the coalition negotiations. privatize theto shares held by the deutsche post.m or deutsche that should be done step-by-step, not overnight. if we look back to the history of the deutsche post and deutsche telecom, it was necessary to have a state owned company to organize po

the ibex 35 off by 0.9%.f, it will not be solved, it seemed, because the deadline has passed. the deadline was 10:00 cet today for the catalan leader to retract his declaration of independence made last week. it has not been retracted. so it seems like both sides, barcelona and madrid are still on a collision course. let's look at how the fx markets are reacting not a huge deal. the euro/dollar is lower, but only ever so marginally off by 0.1% changing hands at 1.1784 the dollar has been supported by higher yields to the tune of 2.34% for the ten-year in the u.s. and that was also lifted by hopes that we'll get the confirmation of a fed chairman pretty soon. not a whole lot of movement when it comes to the yen, given that we're going into the government elections this weekend >>> let's get back to our headline and our top story the spanish government is due to release a statement about the situation in catalonia after the region's leader failed to clarify whether he has declared independence we are stillwaiti

the ibex coming under pressure.art, andace around 50% of that especially are down and under pressure this morning as a result of what we have seen. we spoke to catalan authorities and government. we continued the coverage up next. it is surveillance and i'm going to digital radio. ♪ francine: catalonia clash. hundreds of people were injured by police at the polls. the euro falls and the yields push higher. the trump doctrine. the u.s. president is said to give a speech highlighting the benefits of deregulation. rumors swirled that he will pick the next fed chair. newnd manager says the european rules coming into play from methoifid ii will result in less efficient markets. new european rules coming into

the ibex is off by half of a percent again after it rebounded nicely yesterday it was up by more than 2%. and obviously we're focusing on the banking sector, we did see that recovery trade yesterday, but it was very fleeting yesterday we did see that relief on the backs of these companies moving or mulling a move of headquarters out of catalonia. again, they rallied yesterday on the news they were looking to move headquarters out of cat lo catalonia. sabadell said they would be moving vm i want to let you know that the spanish market up until two weeksago was one of the best performing regional markets within europe. and banca sabadell is among one of the best performing stocks this year. catalan's president, carles puigdemont said this moment calls for mediation, and the rajoy government has responded with a call for catalonia to return to the path of law before any negotiations can begin spain's king felipe said catalan leaders have acted irresponsibly. let's get out to willem who is in barcelona the key question over the weekend, will that special session on monday take place >> th

stock index in madrid lost another one point one percent in today's session and the ibex future index as well where as we just said changing quickly now there is another aspect that we have to take into consideration that catalonia is very important for the spanish economy let's take a look at how it actually contributes to the spanish economy we see that it is a little part of spain but of course it is a very important part of its economy now if you take a look at the numbers catalonia contributes two hundred twenty four billion euros to the spanish economy so that's pretty much more or less a quarter that's a little less than ireland's g.d.p. last year but significantly more than portugal's for example so catalonia for sure is spain's powerhouse but that could soon be over major companies are already moving their operations from catalonia to other parts of spain including telecom firms cell next and back. and in order to get a little bit more of this economic perspective let's now talk to account verts he is a senior research fellow at the barcelona center for international affairs

also coming up spain's ibex rebounds from last week's losses as political risk concerns over catalonia. i won't. be the world's biggest do trade fair focuses on the concept foods of the future anyone up for began tuna. welcome to your business so you as economist richard thaler has been awarded the nobel prize for economics today's announcement by the swedish nobel committee praised the research of a bridging the gap between psychology and economics the prize is not part of the original series or awards set top a by alfred nobel and originated only in nine hundred sixty eight dollars distinction occurs as economists are increasingly under fire from rising populist and antiglobalization movements around the world. thaler is a professor at the university of chicago his field behavioral economics tries to understand how individuals make economic decisions economists have assume people act rationally to maximize their wellbeing thalers research looks at the limits of that rationality such as lack of self-control the war committee said taylor's research has a profound impact on economic pol

the ibex 35 on this crucial day for spain is off by 0.4% continues to underperform. yesterday we did see a bit of rebound to the tune of 0.5%. this volatile trade will probably continue over the next couple of sessions. >>> let's get back to some important stocks lvmh kicked off the earnings season by posting third quarter sales figures which beat expectations the french conglomerate shares are up nicely to the tube ne of 2.5% gl givaudan shares are up nicely saying they will continue to increase prices to compensate rising input costs and dassault aviation shares are under a lot of pressure after the company announced its falcon 5x business jet faces further delays, this after the firm came across new problems during the flight tests >>> back to our top story, catalan leader carles puigdemont is set to address the regional parliament today with the spanish central government concerned he may actually declare independence unilaterally madrid has reportedly threatened puigdemont with arrest if he goes through the pledge. calls for unity have been rising across spain a

for today, the ibex was down by 4% over the week. we are going to talk spain in just a moment, so i am going to avoid chatting about it. the euro lower. sterling down against the dollar. sovereign bond yields, the 10 year in spain down by 8.5 basis points. finalities and cbs, your your final two columns. the spread is widening in light of events in spain. however, it still is pretty much in line with the historical average this week, the vix up by 1%.hly this is the italy/german spread, the difference in yields between the italian and german ten-year, coming down today, down by six basis points, narrowing. the german and the spanish spread, 1.68%. aberdeen investments is short italian, short french debt. events weighing down on european periphery notes, boosting the alert of german bunds. but a money manager at elion's globalsaid -- allians says he will move out of the short on german bunds, should the catalan crisis accelerate. there is a sale of a stake in by siemensng a stake in the lighting industry. institutional investors buyin

the big banks is now headquartered in violence here sabah dell has gone to counter in fact only one ibex listed firm that's the drug maker griswold's still remains in catalonia now the companies that are leaving now they account for approximately one hundred and fifty thousand jobs in the region we're talking about a combined net profit of over eight billion euros last year worst of all all of this comes as a total to surprise to many in catalonia. it sounded so good spain's economically strongest region freed from any financial commitment to the rest of the country the downsides not according to those who spearheaded the independence movement. that. there is so much fear so much fear and they are saying the banks would leave it alone or banks will leave it alone or do you think they will leave and of course they won't but they will stay they will stay here not to help us but because it is in their own interest we know that much. i guess the last three years i got. partners. turns out the banks aren't staying there among forty four companies that have moved away since the referendum over

ibex gives a global picture but voyager tells us what's happening in location in space. so using them simultaneously is really important for our research. so ever since it was officially confirmed that voyager 1 had crossed the healey pause, those unexpected strange magnetic field observations were maybe not actually that strange afterall. so the graphic we're showing, if you first imagine the solar wind coming out from the sun. it goes and just comes out from the sun and fills a bubble in space called the helio pause like a comet shape. this blue, light blue you are is surface is the surface of that bubble and then outside of it is interstellar space and you can see the top arrow is where voyager 1 is outside the healey pause. still pretty close on these scales and the bottom black arrow is voyager 2 but it's still inside so there's no picture and what we can see in the simulation is that the magnetic field lines which are those black curves snaking from the top left to bottom right are showing us how the magnetic field is wrapping around this healey pause surface and w

the spanish market trading strongly pure you can see the ibex up by 1.5%.a firm eye on what is happening with the banks. thent to show you eco-screen. turkish current accounts data about to drop. it is a big number, one of the factors the lira trades around you look at the survey. big gap there. matt. matt: i am just looking quickly at the ubs chart i have got here, g #btv 1162. it shows the share price in white compared with the credit suisse share price and purple and a basket of investment banks in blue. thes normalized from beginning of the year. keep that in mind. january firste, this year, ubs has underperformed credit suisse. be the day that ubs gained some ground. guy: the equity market open. we should probably bring this up as well. i want to see this data dropped during flight problem with that. let us show you what is happening with the monitors. up.us let that load the ftse 100 trading positively. the cac 40 is expected to open up. let us wait for the ibex. 1.6%. good. the current account data is dropping as well. let us see how you turkish lira

similar for the cac 40 the only laggard the ibex 35. off by 0.4% after the madrid government has invoked article 155 over the weekend to further steps will hopefully become more clear as the week progresses the banking stocks are take the brunt of the losses in madrid. your dollar is lower in the crucial week for the ecb $117.45. quick look at u.s. futures, looking a little bit more positive after we saw a successful week for traders if you were long last week. we will hear from the saudi aramco and saudi arabian prince alwaleed bin talal don't want to miss it. that's it for today's show see you tomorrow bye-bye. my friend susie cracks me up. but one laugh, and hello sensitive bladder. ring a bell? then you have to try always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. for incredible protection... ...that's surprisingly thin. so it's out of sight... ...and out of mind. always discreet. for bladder leaks. also in liners. the dow and s&p riding six-week winning streaks. u.s.

let me show you what the markets are doing one by one you'll see the ibex is underperforming quite a bit. we'll show you that in a second. the ftse mib knin italy is off y 1% the cac is off by 0.2% we are seeing green when it comes to germany vw is doing better given the constructive tone when it came to auto sales in the u.s tesco was initially higher, now hoe lower. first, the sectors, this is the picture. banks, some of the cyclicals underw underperforming. this comes back to spain autos this is down to the strong u.s. figures overnight, up by 0.8% when it comes to spanish yields, the spanish ten-year bond yield at the highest level since march. we're now, if we can bring up those levels i think 1.76%, that's for the ten-year 1.785% up by quite a bit. today you're seeing that spike when it comes to the ibex, we are down by 1.7% we are now trading at the lowest, 1.9%, the lowest levels in many, many months given the latest news flow this is as spain's king felipe slammed catalan leaders for what he says is an illegal attempt to proclaim independence. in a rare intervention he conde

we've seen the ibex pick back up today. looking at debt in spain, both corporate and sovereign, do you see that dramatically increasing that spread? >> it's moved a lot already. i think we're getting used to operating in this globally political uncertain environment. spain is at the current epicenter of that. as soon as we moved past spain, we'll move on to italy it is just continuous. >> do you have a view of where periphery yields go from here? >> i think it comes down to the ecb. the ecb minutes are critical there's a spanish auction today. i think investors are not as worried about the auction because of the ecb we need a better read on the ecb. it's hard to get negative. we see value in the periphery because of the ecb still there there's been some adjustments made >> i want to come back across to this side of the channel the bank of england is calling for a transitional brexit deal to be secured by christmas speaking at a banquet, they said the banks would need to press ahead with contingency plans if an agreement was

the ibex is down again today swinging between gains and losses off by 0.4% this morning yesterday it rallied hard, up by more than 1% this is on hopes that we would get a break through in the impasse between barcelona and madrid, obviously we did not get it over the last three months, the ibex has been down 2.5%. >>> it was a very big day for the tech titans state side amazon, microsoft and alphabet reporting. amazon soared, and customers snapped up grocery from whole foods. alphabet enjoyed strong growth in ad sales and higher than expected operating margins josh lipton has more >> alphabet reporting a clean beat across the board. earnings per share of $9.57. the street was looking for $8.33. revenue, 27.77 billion on the call, the ceo laid out his vision for the company, and his focus on ai. >> consumers can already experience how ai allows ai computing more naturally than ever before. computerers are adapting to people, rather than people needing to adapt to computers are. fundamental is google search and our assistant. we introduced our assistant last year and it gets better ever

the ibex is slightly down. i'm here, i'm waiting! there you are.t's been a big week for central banks — we'll round up the week's events with our business editor simonjack. spending on halloween is expected to hit a record $9.1bn in the us this year. today we want to know is it scary how much people are spending? just use the hashtag #bbcbizlive. hello and welcome to business live. thursday was a huge day for technology company results. four of the big global tech giants reported their latest earnings. alphabet — google‘s parent company, microsoft and twitter all posted their key numbers. but let's start with a look at amazon. the retailer reported revenues of almost $41! billion in the three months between july and september. that's a jump of 34% over the same period last year. but profits were virtually unchanged since last year. that's because this is often the quarter when amazon chooses to pile a bunch of money into its own projects — like tech gadgets, streaming video and warehouses. the company has operated on this model for years and it see

and colonial now these are all big name companies that are listed on spain's main stock index the ibex thirty five and also gone all the big banks. has now chosen to move its headquarters to valencia we've also had severed tell which has gone down to the coast there you can see it in canton a in fact only one ibex listed that's the drugmaker griffo else has decided to remain in council onya for the time being now the companies that are leaving account for approximately one hundred fifty thousand jobs and a combined profit last year or eight billion euros worst of all all of this comes as a total surprise to many in catalonia. it sounded so good spain's economically strongest region freed from any financial commitment to the rest of the country the downsides not according to those who spearheaded the independence movement. that there is so much fear so much fear and they are saying the banks would leave it alone no banks will leave catalonia do you think they will leave and of course they won't but they will stay they will stay here not to help us but because it is in their own interest

ibex versus ftse. of performance but not too drastic.is time to sell spanish equity as they have been from the relatively solid performance of european equities over the last couple weeks. i don't think enough is priced in. absolutely. from a technical aspect of spenders equities are not safe area reporter: is the a place you it's all specifically? -- you would sell it specifically? simply because those are so international are there sectors in spain you want to sell and some you don't want to get caught selling because they have the international exposure that the stocks had post-brexit? some banks in spain have international exposure among that would probably -- the banks sector not something that would be affected too much, particularly because that is more exposed to what the ecb is going to be thursday. that is not something i would look to sell. you have some kind of worries about what we have heard in the last couple of days and weeks. families would put their headquarters. those were th let's talk about the markets. we got down 1

balloons troubles but pick up on the troubles in catalonia i remember that the spanish market the ibex was heavily under pressure last week what it's like at the start of this new week. funnily enough considering all the tension in the country the ibex is actually performing at its highest level in a week it's rebounded by zero point seven percent and that upswing has mostly been led by the banking sector we saw the shares of bank and bank of this about dow trading higher on news that they both decided to relocate out of catalonia so that tells you that investors are cheered by the prospect that companies are doing what they can to cover themselves in the event of any political fallout so what's the downside to then more and more companies turning their back on catalonia surely this cannot all be good news yes and you know as it happens it's not only spanish firms that are going to be affected by this we also have the likes of cross border merger deals like for example italy's atlanta and spain's i veritas those are two highway management companies and. merger deal stands to be delayed

they ibex just bumping the trend overall with the equity markets.s because the question is this -- cpi in china underwhelming. europe that hitting the mark. -- europe, not hitting the mark. u.s. cpi underwhelming. a conundrum that the best guess ahead of the federal reserve is that inflation will come soon. even the chinese cannot save us of the upside on inflation. at chief executive officer the imf meetings this week saying conditions remind him of financial markets 2006. larry summers saying there is a lack of fear. at the end of the i met meeting he said there was a near he since of call -- there was in mary sense of calm. who is going to move first? is carney going to be bumped into a rate hike? the timeline to a rate hike. you got morgan stanley, the first rate hike in the region moving further away. --l mark carney speak to its will mark carney stick to his guns? ftse 100 relatively positive. market that a slight elevation is something that they say is very dangerous. there is very little value. these are gilt futures. pipsqueak. you early ca

keep an eye on the ibex as well with the politics there. dax is expected to open a little softer but not much. i will move my coffee cup and you will be able to see what happens with the ibex. that's the picture we find ourselves with. on a headline level, not exciting. individual stocks, that's what gets interesting. matt? a little bloomberg lesson, guy. oh you get an wec screen that looks like this, it makes it easy to look for data from any specific country. i click on the french flag and i can see the french pmi's here. manufacturing pmi, 56.7. services.he 57 and a half for the composite. that we go screen on the bloomberg. the lead-in has earnings. admiral in the insurance sector is trading off. pool --ack of the world whirlpool story, electrolux is suffering. phillips is trading softer as well. teicher bank coming back a little bit. the downside, today is about earnings. --re are a few earnings there are a few exceptions in there. always good to see sob still up there. always good to see a sob anywhere. more a defense company and less

this is the ibex over the last month. changedod that barely down by two percent since the referendum. stocks underperforming. both lower during that period. the low for this was the wednesday after the referendum when the index was down by 4%. they have moved their legal days from the region from catalunya elsewhere. the ibex is actually outperforming the stoxx 600 on for its best year since 2013. this is the bond market. the spread between the 10 year spanish, tenure german narrowing down by a couple of basis points. 1.18% today. barely moved. the big move in the yield was the week after the referendum. over the three weeks the spread has widened by a mere five basis points. the bulk of that happened in the first week. taddeo ineak to maria barcelona. -- catland separatists separatists -- according to our survey of economists. the euro has fallen 1.3 against it -- the dollar. bring on the ecb. vonnie: it could very well be the next catalyst. let's turn to the week in washington and the race for the next fed chair. janet

when we get more on the ibex we will talk about that as well.i have the msci asia, always index on the risk radar. or asia pacific. also showing gains as you would imagine. often times when we see gains at of the u.s., feeding through into asia, they come through into europe as well. take a look at the euro. you can see little change but holding onto the gains we got yesterday after that catalonian's down a little bit. -- back to down a little bit. we will hear more about what is going on in the catalan ale -- catalonia independent situation. owner to take a look at jgb. no longer seeking the safety of government debt in japan. even though the arrow is green there. the 10 year yield coming down with the green arrow. beh a 2.36 yield, it should 2.4% to get to the level that l gross has cited which is in his opinion and end to the 30 year bull market in bonds. we have not reached a yet as tax reform seems to stumble. anna: let's look at the bond market. this is what we are seeing in the bund futures. keeping an eye on the spanish market same reaso

next and catalonia colonia all listed on spain's main stock index the ibex also go to the big banks headquartered in valencia some a day in a country in fact only one i've actually stood firm drugmaker. is still in catalonia the company's leaving account for one hundred fifty thousand jobs and a combined net profit of over eight billion euros and all this comes as a total surprise to many in catalonia. it sounded so good spain's economically strongest region freed from any financial commitment to the rest of the country the downsides not according to those who spearheaded the independence movement. there is so much for your so much fear and they are saying the banks would leave it alone no banks will leave catalonia do you think they will leave and of course they won't but they will stay they will stay here not to help us but because it is in their own interest we know that much. the last three years now i got a dark. room and. turns out the banks aren't staying there among forty four companies that have moved away since the referendum over two thousand smaller ones had already left over the past

perspective of course that is a cattle on exit the second thing that is happening is that that rally in the ibex is mostly being driven by banking shares now you've mentioned bank and banquet isabel now both those banks have seen their shares trade upwards after they announced that they would be relocating their headquarters outside of catalonia now especially for investors who aren't feeling as optimistic feel the relations between madrid and catalonia have reached a point of no return this is something positive because it signals to them about companies have contingency plans in the bag that would afford them protection in case you would continue to fly both units are still solvent evelyn is financing operations by selling off parts of its business piece by piece. we stand the sec to argentine argentina now line says it's withdrawing services to the venezuelan capital of characters claiming concern over security as the nation plunges ever deeper into a political and economic crisis dozens of other allies have taken similar measures passenger traffic to the embattled south american country has

the market is down 1.2%, the ibex the euro is down that's a similar move lower against the dollar as we've seen for some of the other currency pairs. >>> in other news out of europe this morning, the u.k.'s monarch airlines went bankrupt last night. they're working to charter aircraft to bring those customers home it's seen as long-term wins for other airliners, especially the discount airliners ryan air you'll see up 3%. clearly a story we're watching ea easy jump. they're having to be flown home. they're using respect to continue following that breaking news story out of las vegas where at least 20 people are dead and more than 100 injured following a shooting on the vegas strip. we'll have the latest when "worldwide exchange" continues ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. this is not a cloud. this is

ibex and index to watch. great chart.atch spanish companies with strong exposure to the domestic economy. --ood retailer topping 14% the index i want to keep an eye on is the white line, the morgan stanley domestic spain index has jumped 1.6% today. d in theover the perio last month. given the fact that we have inflation but poor productivity, i probably would look at productivity and the fast disinflation in four years. central banks hiking rates with the economy some calling week with productivity week --weajk -- weak. hour 15 and below the g7 average. u.k., is that hikes rates in november, will do so from a position from weakness, rather than strength. 90 minutes into the trading day in the u.s., how is it looking? change across major averages although the dow and nasdaq slightly higher. s&p trends very slightly lower. one subgroup of performing today is the transports. averages transportation up one half of the 1% and approaching again is record. it has to do with airlines in the wake of outlook from american and ual.

not corinth and osa betis cell next and colonial they're all listed on spain's main stock index the ibex the five it also gone are the big banks is now headquartered in valencia saba dell has gone to alec cantor in fact only one listed firm that's the drug maker great falls still remains in cuts alone yet now the companies that are leaving account for approximately one hundred fifty thousand jobs and a combined profit of eight billion euros last year worst of all all of this comes as a total surprise to many in catalonia. an independent catalonia free to prosper without any financial commitment to spain for separatists it's been a vision to rally behind those spearheading the movement have traditionally brushed off concerns that the session could have a negative economic impact. there is so much for your so much fear and they are saying the banks would leave it alone or. leave it alone or do you think they will leave and of course we won't but they will stay they will stay here. turns out the banks are not staying catalonia as two biggest lenders have already moved their legal headquarte

they were suspending their bid for independence shares jumped by one and a half percent on madrid's ibex index of spanish blue chips shares in catalonia and banks shot up by more than two percent after two of them incorporated outside of the region in the event that it broke from spain many cattle and businesses remain on alert out and say there will swiftly leave the region if independents glocks them from trading within the e.u. . now let's see how the markets have reacted and go straight over to frankfurt where general demand is standing by general investors were rather cheered by the speech of put him out yesterday has that really been sustained after rejoice remarks around lunchtime today. it certainly looks that way gary hardwell european stocks have actually flattened out a bit but i thought the exception remained spain's i it's maintained an upswing even in the second half of the trading day today speech has been seen as a sort of deescalation effort that investors were looking for response maybe less so but what investors seem to think is that the founder central government has

the euro is up and the ibex is down roughly 2.4% since the vote.ond yields, the spread with germany has stabilized. on wednesday weird given the various scenarios, will it remain a spain centric market reaction or could we see contagion outside of this -- outside of spain? is a good question and we will find out the answer soon. the moment, the issue is, to put extent does this challenge to spanish authority from me catalonia government -- the catalonia government, are they prepared to take it to the brink? if they are, that becomes a serious issue. not just for spain but for the european union. it may encourage other separatist movements around europe which exist. it is a challenge, not just to spain but to the european order. mark: we have seen a two biggest banks in catalonia move their legal base. regardless of what happens tonight, does that process continue? do we continue to see companies move their base, their legal base out of catalonia? yesterday, some company said they will have to leave. the companies based in catalonia are scared, what

the market reaction, the ibex 2.5%,is rallying, up by this is the divide between the stoxx 600, the ibex, the spanish gauge is the blue line. this is the price to earnings spreads between the two gauges. the spanish gauge rising. yesterday it came down, but yesterday we saw a peak yesterday. , the biggesting discount to the european benchmark since august 2016. 1.5%bex nursing losses of this week. a similar move in the bond market reaction to that news. n independence leaders are divided. we saw the yield difference between the germans and the spanish to the highest since april. we've calmed down by nine basis points, the biggest drop in yields since june the eighth. it is all happening, we had an auction today. the bank in spain sold bonds to 2.12.rates rising to that was seen as the previous sale on september the seventh. the average yield more than double to .5% from .21%. rising the euro earlier just coming down. 1.1720. the euro-dollar, sitting close to that 200 simple moving average of the weekly chart that closed below that would've been into the bearish technical signals that wer

were suspending their bid to for independence equities jobs by one and a half percent on madrid's ibex index of spanish blue chips shares in catalonia bangs shot up by over two percent after two of them incorporated outside of the region in the event that it broke from spain many catalan businesses remain on the alert to zero and they say they will swiftly. leave the region if independence blocks them from trading advantages provided by the e.u. and the whole of their house traders abroad just as worried spanish prime minister mariano hawley has called on the catalan regional government to clarify whether it has declared independence or not. according to the evil institute's monthly service spain and catalonia already weighed on german business sentiment and we're joined now by the institute's president claimants' foods good to have you with us we know that manuel the whole the spanish president is speaking right now at the moment though was still in the unclear after last night's speech i mean what do you make of all that. i think this is a very smart strategy by the catalan governmen

has come under pressure once again as the political crisis there is intensifying in catalonia the ibex spain's a main equity index lost almost another percent financial stocks are among the biggest losers and spain's fals launches bank bankers somebody'll announced it will move their headquarters out of the breakaway region of catalonia a bank which is based in barcelona says it's also considering a similar move analysts see that as a first sign that the push for independence could scale away big business. japanese advertising firm dentsu has just been fined for making employees work excessive overtime a court in tokyo ordered the company to pay five hundred thousand yen that's about thirty eight hundred euros not a lot of money considering that labor practices at dentsu came under scrutiny after a twenty four year old employee committed suicide in two thousand and fifteen the government later ruled she died of cattle she a japanese term that literally means death by overwork it's not an isolated case only this week japan's public broadcaster in h.k. disclosed that a thirty one year ol

independence has angered the rest of spain and it is weighing on the country's economy in madrid the ibex stock markets dropped to below ten thousand points for the first time in over two years as tension between the governments in madrid and catalonia continues and some say that a catalan break away from the country could leave spain vulnerable while it's still on the road to recovery but there is also concern catalonia cannot realistically afford to go it alone. spaniards like yourself or gomez lost their jobs when the country's banks were on the verge of collapse she runs this community group one of many for those affected by the credit crisis for them no investment from banks meant no opportunities for businesses to grow cutbacks followed unemployment has since dropped nationwide but spain is still very much in recovery pro independence catalans are confident they say their industry and tourism will help them go it alone but breaking away would certainly slow down spain's return to the level of its pre-crisis economy however it would be wrong to overstate the impact catalonia attracts

by the council and crisis especially banks were affected and they dragged spain's main stock index ibex down with them it dropped to enough percent today index we call that slightly also today the spanish government has oaks and government bonds was some five billion euros to check how that auction went and spoke to our financial correspondent ali ponce in frankfurt a little earlier. well first painted fun to relatively well i talked to a trader who trades bonds here on the frankfurt floor and he said that they got what they wanted in volume not just with the five year bond you just spoke of but they also auction off a million euros a little bit over a million euros in a ten year paper and the yield for that that is the interest that came out for the investors expressed with the term yield was one point eight six percent that's half a percentage point more than the last auction so there you can see that spain is paying more for ten year paper and for five year paper and the interest rate is hold onto your hat zero point five three percent that's less than one percent that's about half a

the ibex reverted all the gains it made yesterday.ocks in particular are coming under pressure. catalonia assed in well as a catalonian bank. .hey are heavily exposed it's no secret they have links with the regional government. they are stuck in a difficult place. economy,of the overall the spanish government is saying we have to acknowledge that this is a big regional economy and we need to keep that in mind that the catalonian economy is sizable. the growth forecast is for next year and the business community saying this was a bad decision and it's going to affect investor confidence and decisions made here. today, we have protesters and supporters of independence calling for a strike. there are a lot of moving pieces. julie: thank you so much. next, the tech giants are heading to capitol hill next week amid mounting pressure from lawmakers. we will have that story. from new york, this is bloomberg. ♪ julie: this is bloomberg markets, the balance of power and it looks like a lovely day. a check of thet first word news with mark crum

trade for the pound sterling the xetra dax is up by 1/4 of 1% up by 29 points and we don't have the ibex on there what i do see is up by a bit that will surely continue this week there is still a lot of nervousness around when independence will formally be declared let's also have a look at the spanish stocks and how they're trading today. once again it seems like investors are going back into these beaten down stocks some of the banks which have done pretty well because some of them have announced that they will be moving their headquarters out of the embattled region, catalonia, continuing their upward trend up by 2.1%. >>> let's get back to our top story. it is catalonia. demonstrators waiving spanish and catalon flags. they praise the actions taken by the spanish government and criticized local poll tisch thanes who have encouraged a secession. several companies have announced they will be moving their headquarters out of catalonia to spain. the fifth largest bank said it will be relocating while the third largest bank announced a move to valencia two other companies have announced a

now the latest twist in the catalonia drama is weighing in the ibex is under performing mostly trading lower and the spread between spanish and german ten-year bonds has declined fractionally. we're joined on set once again for discussion of this this is not something madrid was hoping for they were expecting a yes or a no they got a two-page letter a fudge response >> they were expecting what they wanted, clarification. last week one of the catalan executives described this as a game of chess. it's about whether he had declared independence tuesday night. he said he wants to have talks with rajoy and international media agents which is something he's talked about again and again. he's listed better grievances against the spanish state. the local organization in catalonia is facing charges. he says that's unacceptable. really we're seeing a pattern here of him making statements, treading back and all and the pressure is on the verge of the own coalition where he has 10 out of 35 assembly makers who desperately want independence and then they want the dialogue. rajoy has repeatedly said

of reaction that they're getting there the pro unity demonstrations the parliamentary reaction the ibex thirty five the major stock exchange index terrorism by one and a half percent and shares here in central europe the euro stocks the docs here in germany treading water not a negative reaction at all there in the euro is turning its head up just a tiny bit of the last week slide it's just that's just the polls. that could be people see actually more downward potential than upward potential at the moment with the euro and that has to do with interest rates and with central banks interest rates hike expected this week of the bank of england affecting the pound and the fed well it will move in december but it will move upwards while euro zone interest rate is to stay near zero for a long time in the e.c.b. spending a lot of money pumping a lot of money through bond buying program well into two thousand and eighteen and also the nomination of the next fed chair could also give the dollar a boost and be a damper for the euro what about thank you very much for those markets. now we keep hea

dreads ibex thirty five fairly flat thursday. one wallstreet the dow jones and nasdaq each hit fresh records before paring back they can see all three major indices now trading under neath the flatline this hou. shares the banking giants jp morgan and citibank sinking at despite reporting better than expected earnings for the third quarter. lufthansa is set to by the majority of air berlin and plans to use the new assets to expand its own low cost euro wings unit. at the. separate negotiations to continue up with easy jet now the deal has been long expected it's not going over smoothly. the botched carrier ryanair has said that it will ask european competition authorities to rule on whether it would disrupt t the industry own gains for has the details. sweeping to the rescue germany's biggest airline and lift hunza is buying large pots of at berlin. saving the carrier from bankruptcy. he wants to bolster its low budget headline euro wings. you will take on board three thousand employees with the idea of e expanding euro wis axis

the wage data later this morning in about a half hour's time that will be key for boe watchers the ibex 35 continues to underperform off by 0.4% we'll touch on what mr. rajoy has been saying in the spanish parliament this morning. >>> when it comes to the sectors, this is the view. real estate, healthcare, travel and leisure outperforming, on the down side, construction, telecoms and banks not a lot of movement on the sector front >>> let's get back to our top story. china's 19th party congress has begun in beijing addressing delegates for 3 1/2 hours, president xi jinping vowed to build a modern socialist country continuing to open china's economy and deepen financial reforms. he also pledged to safeguard sovereignty and security let's get out to eunice yoon this is probably a record length for any chinese president. take your pick about what you think were the highlights and the key takeaways. >> one of the highlights was the fact that this was 3 1/2 hours it was a 65-page report. this was the longest that the -- any chinese president has been making this speech this report, in any of

xetra dax up by 0.1% cac 40 up by 0.2 the ibex 35 is out, also doing well after a couple sessions of under-performance given the spat between barcelona and madrid the ftse mib is off by .2% all eyes off bnp when it comes to the sectors, this is the chemicals, retail, household goods outperforming. base basic banco monte dei paschi that resumed lending shares were suspended last december after failing to get capital from investors and having to seek support from the italian government shares off 67% that's the impact of the relisting. and kering shares are trading at the top of the stoxx 600 after the company beat third quarter sales forecast boosted by strong demand for gucci's products and a pick up in chinese consumer appetite like for like sales were up 28%, sales at gucci grew almost 50% the fashion group warned about negative currency effects. >>> shares in lufthansa, they are under pressure today after the company opted to stick to its full-year forecast despite posting record results for the last nine months the carrier reported a 32% rise in third quarter operating profit and

the ibex 35. 1.6%, we have already seem reaction this morning. yields have come down. have come up. the big story this morning is what is happening in spain and you can's -- in spain. you can see that clearly. there is the s&p, there is the move we saw friday. another record coming through there. wellts generally did friday. let's show you what is happening , we have seen a little bit of a move in chinese affect overnight -- assets overnight. look at that area flashing the yields, trading nearly 12 basis points higher. week is likelyis coming out of the united rates. so much that is going to happen this week, it feels like it will be a week to remember. juliette: thank you. dollar trump has unleashed a flurry of tweets attacking hillary clinton and the democrats amid reports that the first charges in russian election meddling inquiry begins today. trump accused is a local opponents of a witchhunt. gathering in barcelona yesterday as impetus lawmakers reject madrid's proclamation of control. the prime minister has dissolved the parliament, put the administration and the

the ibex 35 is doing its usual thing, one day up, one day down. today up 0.2%. we have no clear direction for the european equity markets at this point when it comes to the dollar, we saw the dollar close to a two-week low yesterday on the back of the fomc minutes by ch were consid which were considered more dovish than expected dollar/yen down by 0.2%. we're seeing the euro just a smidge higher at 1.1860. helped by the small deescalation we've seen in catalonia. speaking of that, today is spain's national day king felipe and mariano rajoy will meet in central madrid at a parade this one day after the catalonian government was given eight days to drop their independence bid if they refuse essentially article 155 would be invoked joumanna bercetche joins us. it seems like a game of chicken, pliolitical chess, whatever you want >> yes, all-eyes were on rajoy's speech yesterday he said he wants to understand whether them claiming they have a right of independence is the same as a declaration of independence he's seeking clarification on that point i sat down with o