tom: jon ferro, he said 2017, to be clear. u look at a balance sheet of the federal of around $4 trillion, should the exit not be the rates -- should the exit not be the strategy? >> i think they should be talking in terms of reducing the balance sheet, but you can see since quantitative easing stopped, they have not reduced the balance sheet at all. it has gained at $4.5 trillion since qe ended one year ago. just as it is not possible to end and reduce the balance sheet, i do not think it will be possible to increase interest rates either. said inon is, as you your conversation with professor haverides, you cannot monetary policy help you in the situation. but you can help in reducing inflation. tom: i like the idea of going back to the late 1930's. i would suggest mark carney wants to get out front and be independent. it is a win-win gain for him to act tomorrow versus waiting for january whatever. vonnie: and what is to stop a central bank exiting because other central banks are not. they're worried about their own domestic

jon ferro in london. we have a day that is supposed to be quiet heard forget about it. markets move. jonathan: the dollar index back to 100. that was the pain threshold for the federal reserve and spring. the big question for the december meeting, you deliver a high. how shallow is that going to be? about on thetalk foreign exchange but the bond market. a busy day. here is our bloomberg news. vonnie: the president of france is vowing to destroy the army of fanatics. todayis hollande spoke during ceremonies honoring the 130 people killed in the attack. he return for moscow where he were should agreement with russia. hollande met with vladimir putin. russia would avoid hitting moderate rebel groups in syria. prime minister david cameron said he might ask parliament to vote next week on leading british jets bomb islamic state. brussels is returning to normal. belgian authorities lowered the warning. but police are still searching for one of the suspected leaders of the paris attacks. s foreign minister is sa

it will keep me and jon ferro employed into 2016.e read tracts optimism in america. this is bloomberg's "surveillance." ♪ ♪ tom: good morning, everyone. a lot going on -- macy's is open right now. vonnie: for 12 hours now. tom: what am i going to do it macy's? euro-yen.is all jonathan: i am. we are talking about the abenomics friendly number -- this is a fascinating story between draghi and kuroda, and what is transitory about energy prices. kuroda is sitting it out and drug he is doing more. that is will we have seen over the last seven weeks, that seven-week decline. tom: the last time we looked at this was the euro swiss, and take out the dollar, long-term structural strength. abenomics is saying enough, we can take the strong yen. rollover atmove in a critical level for yen strength. vonnie: exactly. a huge, 44 figure move. up the script -- i want to talk about euro swiss. when you were i were in zurich in the smb came in, we were looking at the swiss national bank to be that dramatic. jonathan: we aren't, but we have to rip up t

in london, and some jon ferro is with us with the morning must-read. e the echo tire jonathan ferro. i'm straight off a flight from frankfurt, germany. jonathan ferro. i am straight off a flight from frankfurt, germany. inflation expectations, they might de-anchor. what we have seen recently is that the signs of a turning point in underlying inflation, measures of underlying inflation, the signs of a turning point have weakened a little bit. we have to look at that. so there are a number of things that we are going to look at. ,t is not only looking at pmi confidence indicators only. it will be more holistic. i think the narc it's -- i think the markets know what i mean. see in the reaction in the euro, with the bond market as well. let me take you inside the ecb. it is not the headline installation number, it is the inflation expectation. the longer we stay down at zero, the increasing likelihood that lower inflation becomes embedded into the economy. that is a big issue for them at the moment. tom: i look at this debate -- bill rhodes with us, bill du

with jon ferro joining us what to watch for with mario draghi, and hans nichols at the upper house inen to what mario draghi says this morning. time to bring you where we are expecting equity markets to open this morning. we are expecting to see a move higher in the european stock markets, of about .2%, little changed really expected on the european equity markets this week. yesterday, minutes from the federal reserve's last meeting reassuring investors, perhaps looking ahead to what the ecb might do in december. "on the move" is next with the details of mario draghi and they will bring you his speech live. ♪ jonathan: good morning. welcome to "on the move." a happy friday to you all. moments away from the start of european trading. that's get straight to your morning brief. december dilemma. well the president drop any hence? we hear from draghi this hour. raises the 3 billion euros. minister saysme they schengen will collapse. 20 seconds ahead of the open and ftse futures seconds away. but the futures higher. .- ftse futures higher let's get your markets open with nejra cehic. nejra

anna: we were talking with jon ferro about the central bank debates.opline inflation numbers and which to emphasize. the bank of england has talked in january we will start to see the year on year falls drop out. it is difficult to look at a picture of inflation without oil. even if you took out the oil that is sold, it gets in through secondary sectors into oil prices. simon: second order effects you are seeing in the u.k. with cpi. prices prices, clothing come a lot of the import prices where transport is a component. it is spreading. the longer we have that lower-priced the board spreads into different markets, second order markets. in terms of the bank of england, it's previous inflation report in august has oil bouncing back to $80 per barrel. its most recent report, $56 per barrel. really, i think, it is those second order effects and how long they prevail through the supply chain that will determine the ability of central banks. with things to do with inflation, it is sometimes how long these things last four. thank you very much. liberty global

jon ferro takes over the basket now.rrow. ♪ jonathan: good morning, and welcome to "on the move." let's constrict your morning brief. after -- ation risk escalation risk after turkey shoot down a russian jet. europe gives up with $50 million defense boost. u.k. homebuilders are in focus at the open. ahead of the open, we're about 20 seconds away. a bounceback him yesterday selloff was the turkey-roger incident post up escalation is in focus in this program. caroline: it is great to be back, and yesterday was the worst you have seen in two weeks of european selloffs. russianbecause of the aircraft shot down by turkey really causing concern for investors. that, may be mulling over cause for concern. will be see any significant tensions between these two countries? particularnalysts in saying a major escalation seems unlikely. soil rebound is in the cards. the fifth day -- the ftse 100 up. that has been among some big speculation of late.

more into 60 seconds of tv than mark barton. , itthe rest of our viewers is "surveillance" with jon ferrokeene. ♪ manus: the scandal defense. vw has faulty omissions reading in petrol powered engines. the economic risk. debuting in tokyo trading. retail investors blocked. taking guidance. the pboc unintentionally starts a spike in asian stock markets by publishing five-month-old comments by its

let's get the latest on jonathan ferro. jonmassive day for markets at one point in china and another day of losses. and we turned that around and he raced all the losses on the day. theme, the big one is dollar. you know what fed chair janet yellen said, she slept it back down. that's with the market has been over the last month. the euro-dollar headed for its biggest monthly drop since march and gold since 2013. and wti crude averaging under $50 a barrel all month for the fourth straight month. going into a will be about euro weakness. and the consensus is -.3% on the deposit rate. guy: i cannot wait for thursday, janet yellen and druggie. -- and draghi. in officials gathering washington today to talk what the story john and i have been talking about. the dollar and what happens next will be determined today. if approved, the u.n. would sit alongside the dollar, the euro, the pound, and the yen. asia watchersome have to say about the decision. >> asset managers and central banks when i just go buy chinese renminbi because it i

jon ferro is up next. we will see you tomorrow. have a good day. ♪ jonathan: good morning.." moments away from the start of european trading. let's get straight to your morning brief. the hawks are in. the latest federal reserve minutes suggest liftoff is looming. the center of gravity shifts toward december. the bank of japan keeps monetary stimulus unchanged despite recession and weak inflation. kuroda says stimulus is working. crude oil trades near a three-month low after wti falls below $40 a barrel. should producers brace for more pain? those three stories dominating the next 60 minutes. futures in london higher. 36 points.tures up nejra cehic has your market open. nejra: that potential december rate hike from the fed looking just as likely after those minutes. still pricing in that 66% probability of that happening. the key things were the statements that it would be a gradual pace of increases. you called it a dovish hike. it seems that's the way markets are interpreting it as well. let's take a look at equity markets. asia open higher. starting to look at what europ

plenty for jon ferro to think about when he joins us for "on the move." rba manning on hold.market as well. a much stronger aussie dollar to take a look that -- a look at. let's just call it what it is. financial upheaval. standard chartered posting a surprise loss. plans to raise three point 3 billion pounds and cut their headcount by 15,000. these are huge numbers. it will transform the banking industry when you put together the moves by standard chartered, deutsche bank, credit squeeze, and potentially more to come from barclays. i find the vw story fascinating this morning. the scandal spread, the accusations towards porch. -- porsche. that means their new ceo has a lot of talking to do. guy: and the macro theme with comment saying we need a big change in how we view diesel. we have done our job. the equity markets look like they are going to open flat. ♪ guy: good morning and welcome to "on the move." but get straight to your morning brief. financial upheaval. the plan to raise 3.3 billion pounds. that income at ubs more than doubles. the u.s. regulator says it is lookin

jon: welcome back. i am jonathan ferro. let's talk commodities.owestplunging to its intraday price since may 2009. as the oil price flirted with $40 a barrel for the first time since august. for more less bring in the editor. gentlemen, i know the fundamental story and my viewers know the fundamental story which is what took us to where we are. what you know what is driving us to the here and now. give appointment is just technical's driving the market into an attack but the asset effect as well. >> it does seem relentless but there is a lot of groom about excess supply and that is really combining with dollar strength which is proving very bearish for commodities. we see the dollar setting fresh highs. the story this morning. the only thing to look at is the dollar. >> a rising dollar is highly dis-inflationary. ultimately what the stronger dollar will do is that it is very leveraged and borrowed and dollars. there will be tremendous pressure to continue the expo cycle at lower prices so they will put another deflationary around the world and tha

we are minutes from the start of friday's equity trading session -- let's get to jon ferro who will be on the move. jonathan: one number matters -- 5.48%, the fallen chinese stocks, the biggest drop since august. the sentiment is clearly in focus, industrial profits slumping into the widest rocher firms -- they could spill over in the early part of the session with futures down by 40%. geopolitics is in focus as well. russia starts cutting economic ties with turkey as hollande and putin agree to coordinate strikes. the odds that, the effects market -- a seven-week losing streak, a record. we will be discussing it in the next hour. anna: plenty for them to get ."to during "on the move the euro set for its worst losing run since 1999 -- perhaps ever, if you think about it starting when the euro was formed in 1999. that pre-ecb chill. it is weaker against many of the major currencies except the danish currency. he will pick up on that -- and also the chinese equity markets. that is what we have to deal with into the european session. the ecb ratet, decision on thursday, opec on friday, an

jon: this is on the move, i am jonathan ferro. stock 600 has climbed to a 2.5 month high and is time for your top stories. 800,000en says an extra vehicles may be involved in the emissions scandal. they are widening a crisis centered on diesel engines. the company said that the fighting -- findings could add 2 billion euros of economic risk. investors flocked to the $12 billion ipo, shares rose as much as 26%. carmakers report of the best two-month stretch of u.s. sales in 15 years suggesting that the nation's economy is improving. i want to stay with carmakers but head over to dublin tech summit because they are joining the race to compete in a key market. as uber and google enter the filled, bill ford spoke about a key area for growth. >> the world of city driving will change dramatically and we have experiments going all around the world trying different things. whether it is fractional car to do using a social good or lots of things like that. we'll precisely know where these revenue streams are, but we know that it will chang

stephanie: my question to you, david -- i do not think we have ever had jon ferro. wasn't he great? we really like having you on "bloomberg ." when we come back, volatility is back in vogue. in china, markets also awaiting a decision. we are heading to hong kong next for global go. ♪ stephanie: -- vonnie: welcome back to "bloomberg ." in brazil, jailed billionaire andre estevez posts atned all of his his investment bank. he will be in jail indefinitely. --'s leaders are emergency are in emergency talks to sell aspects and sell estevez's controlling stake. it will's largest investment bank is leading -- leaving its bonus unchanged from last year. that bucks the trend of its european rival deutsche bank, which is preparing to cut bonuses. some beer brands may be sold to help clear the way for the merger of the two biggest rumors. ab inbev has agreed to buy bank -- to buy seb miller. two brands may be sold, peroni and grolsch. david: in today's global go, we had to hong kong where investors are seeing a second day of price swings. bloomberg's enda curran joins us now. let's sta

jon: i am jonathan ferro join you from the cold, damp, city of london.hey called it super thursday lunchtime and it was anything but. tradinges into your day. the ftse 100 coming off of a three-day winning streak and we are lower by 35 points. so many movers that we need to discuss. sterling pretty much dead flat on the session. yield on the u.s. 2-year note, 0.83%. that is a 2011 high. hawkishback of a pretty session. they are the bond moves in the fx moves. looking at some of the biggest gainers this morning starting with stock general second biggest bank. a 28% increase in third-quarter profit. coming in at 1.3 billion euros want a significant beat. what happened is the consumer bank offset the slump in trading revenues. zeneca, -- moving on to after zeneca. it failed to win u.s. approval for a new diabetes treatment but the earnings today were a beat. earningsny raised its and sales forecasts for the full year. finally one of the biggest gainers on the stoxx 600. the fullally upgraded year for the second time this year. this was after third-quarter p