. >> and i'm joumanna bercetche. >> the u.s. moves to block the at&t-time warner deal. >> we have takeoff easyjet shares lift after the budget carrier says it is encouraged by pricing trends adding that its acquisition of air berlin will boost 2019 earnings >>> angela merkel says another election would be better than a minority government. the fdp tells cnbc that the political deadlock is due to the chancellor's unwillingness to compromise. >>> robert mugabe faces impeachment as zimbabwe's political crisis stretches on. the country's ousted vice president hails a new era for wh the area >>> good morning one hour into the trading session. we had a strong session overnight. nikkei up 0.7% another strong session for hang seng led by tencent. things in europe are looking soggy this morning a bit more sea of reds than yesterday. that points to the soggy open for the euro stocks index, almost down 0.2% this is in contrast to the price reaction we saw in stocks indices yesterday, despite the breakdown of german coalition talks. ftse a

i'm carolin roth >> i'm joumanna bercetche. these are your headlines. >>> european and asian equities halt the selloff after u.s. markets close a second day in the red. the ceo of morgan stanley tells cnbc tax reform is crucial to keeping things positive. >> they have to bring the rate down right now anywhere in the 20s would be a positive thing and be stimulating for the economy. >> qatar's finance minister tells cnbc his government is opening an investigation into a report that there is a plan to de-value his country's currency. >> nobody will be happy about this but the good thing is they will not succeed. qatar is an open economy >>> benefits and rewards don't pay off for sodexo revenue and profits came in shy of expectations sending shares down in paris. >>> better news for bouygues shares hit highs not seen since 2008 as the company increases its gins >>> we're roughly an hour into the trading session in europe. it's ban deen a difficult coupl days in the u.s. the oil sector has been weighing in on stocks in europe, thing

let's get out to joumanna bercetche from paris you have been looking through the report what do you makerom the reaction in the stock? >> i think, as you said, it's been a challenging quarter for them the top line misses. revenue came in lower than expectations net income also a disappointment but let's drill down into their individual businesses. so if you look at socgen, about two-thirds of the revenue comes from the retail bank retail bank obviously still afflicted by low interest rates. that doesn't seem like it will change any time soon the bigger one is the investment bank investment bankrevenues down 14.7%. i took the opportunity to ask the ceo what outlook was for the investment bank from here. let's listen >> what happened in the third quarter beyond the traditional season, typically a wait and see mode, in particular in light of the decisions of the central banks, and the european central bank regarding its monetary policy so what we saw is less flow, less structured products going forward what we will see in europe, as we know the whole regulatory framework for the financing o

i'm joumanna bercetche >> i'm willem marks.hese are your headlines >> president trump hosts to lay out ground rules in a pleating with xi jinping. he will press beijing to cut financial ties with north korea. >>> the departure of m&s's cfo comes amid losses. >>> and more banking woes. weakness at the french retail unit hits third quarter profit. >>> and game on for unisoft after it blows past second quarter sales forecasts. >>> we are roughly one hour into the trading session. let's see how things are opening up a bit of a soggy day in line with what we saw in u.s. equities yesterday having a bit of a down day the picture is mixed behind me a bit more red than green on the heat map which points to an overall performance of the stoxx 600 which is underwhelming let's look at how individual sectors are doing. ftse 100, treading around that 0% mark. slightly in the green. xetra dax also really treading around the flat line we did have earnings earlier on. we'll get into that in more detail shortly i want to point out ftse mib is do

for all you need to know about the uk budget, head to cnbc.com for joumanna bercetche's piece on the most important aspects to look out for >>> coming up on this show, zimbabwe celebrates as robert mugabe steps down, clearing the way for a historic change of power. we'll delve into what the political upheaval means for the country's economy. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. just, uh one second voice guy. [ bloop ] huh? hey? i paused it. bam, family time. so how is everyone? find your awesome with xfinity xfi and change the way you wifi. >>> celebrations continued into the night on the streets of harare f

i'm carolin roth >> i'm joumanna bercetche. these are your headlines >>> 21st century fox reports suggesting comcast and verizon are joining disney and considering an offer for parts of the media titan sending shares of sky higher in london trade. >>> game over. vivendi says it won't go hostile for a bid as the french media group misses earnings estimates. >>> and ecb president mario draghi says the central bank will keep using bond buying to push out rate hikes, but says he is confident in the eurozone's recovery >>> u.s. equities stage a laterally after house republicans give their stamp of approval to the tax overhaul, sending it to the senate >>> ecb president mario draghi is still delivering the keynote address in frankfurt let's listen back in >> moving into positive territory in all major euro area economies. demand for loans by firms, which at this time last year were still negative in several vulnerable countries, is now positive across the whole euro area the other trend is the growing resilience in the financial sect

joumanna bercetche sat down with the ecb vice president veto costanzio and asked where he saw complacency. >> i always difficult to talk about valuations, it's difficult to talk about the benchmark or fair value it's true, comparing with historical averages and historical situations, we see that some markets are overstretched or at least we have indicators way above historical averages. at the same time we can see volatility in the equity market and the bond market is very low. which experience shows in those situations, some events may trigger sudden revision of expectations by investors, either about future growth or about future inflation, that suddenly leads to corrections in prices, which in such stretch situations can then be amplified, and overshoot because we know many times markets overshoot. that's the risk, which as we explained in the financial stability review, we mostly attribute to events in global markets, not so much coming from european markets, because we don't see in european markets generalized situations of stretched valuations >> so to be clear, you don't see stretc

i'm carolin roth >> i'm joumanna bercetche, these are your headlines. >>> no british bank needs to raise more capital, that's according to the bank of england which says lenders could handle a hard brexit. >> given the current levels of resilience, uk banks could continue to support the real economy, even in the event of a disorderly exit from the european union. >>> shell cancels an austerity script dividend policy and issued a bullish cash forecast sending shares higher. >>> ocado shares spike as the online retailer offers a tie up to grow its e-commerce business. >>> and socgen says it will close about 15% of its banks as the french bank looks to cut costs. we'll speak to the cfo at 14:00 cet. >>> the uk's largest lenders passed stress testing with flying colors. the bank of england indicated none of the banks it tested needed to raise additional capital. rbs and barclays who fell short last year boosted capital to a sufficient level the bank of england also said banks could withstand a disorderly brexit, but governor mark carney hoped for a transition agreement soon. >> the time of a

. >>> uk chancellor philip hammond is set to deliver his annual budget today joumanna bercetche has theetails of what to expect. good morning >> good morning. today is a very big day in the uk it's the first budget is ins the budget since the election in june all sides are pushing for him to relax on austerity pefmeasures on the other hand, he will be a little bit constrained by some of the lower growth and productivity forecasts that are expected out of the obr. because of that he will have a little bit less fiscal room to play with, which means that some -- the expectations in terms of what he may announce have been dialed back a bit. some of the measures were pre-announced over the weekend we know that he is pledging to build 300,000 new homes on an annual basis he will also allocate additional funding for the help to buy scheme, and there's also some chat that they may be looking to reduce the stamp duty for first-time buyers. all focused at the housing market also allocating 1 billion pounds on high-tech projects. so focus on technology, research and development. that goes to the i

sign of her deteriorating position as turmoil within her government interrupted brexit plans joumanna bercetche is live in london i'm sure brexit is high on the agenda. >> we will definitely be talking about brexit joining me is adam pozen the president for the peterson institute for economics. thanks for joining us. speaking about the uk, the bank of england hiked rates a couple weeks ago. many people are calling this a policy mistake what is your view on the hike? do you think they were right to go >> if i was right on the mpc, i probably would have voted against it it's not like 20 110, 2011 where it was not driven by domestic inflation it was driven by concerns over potential output in the uk. but also by brexit it meant that the bank had to be more worried about the stability of inflation expectations about the pound than they otherwise would have been. this is part of what happens with brexit. the bank of england is not back to the '70s, but it's more like an emerging market central bank in that it has to take the external situation into account. it just can't set policy based on domestic

joumanna bercetche has the latest take it away >> joining me is my friend, the co-head of rates and strategy at ubs. u.s. dollar, i feel like it's become a barometer for tax reform, yes, no, yes, no what is your view of the greenback from here? where is it going? >> so, firstly, i have to say for the past year we have argued that the dollar has peaked it's actually expensive if you look at most metrics with a few exceptions. the dollar has been receiving a boost. the potential for tax reform, the higher yields, and the fed hiking, but that is not the main driver going forward in fact, you have seen that as the curve has been flattening the dollar that been losing. and the main reason for that is "a" the rest of the world now is converging cyclicly. "b," the u.s. curve may be mispriced in terms of how quickly it expects fed hikes, but the ultimate amount of hikes it expects over the next five to six years is about fair. so the needle doesn't move so much from the fed. long story short, we see a dispersed dollar the dollar against central banks that are either going to be dovish or that have a

joumanna bercetche has more analysis >> yes the day is finally here.s you said, the rates hike is well telegraphed and it's all about the messaging. i'm standing with russ walker, the economist from natwest markets who can give us more of an expert opinion on what to expect what are you expecting out of the meeting in terms of messaging today? >> messaging, there will be the vote we expect 7-2. whether it's three or four members voting against a rate rise, that would be taken dovishly we'll get the bank's updated forecast we think there will be an overshoot on the cpi projection, signaling the market is not pricing in enough as far as rate rises and then the press conference where there's more rhetoric and commentary if they are to deliver the hike widely expected today, it would seem to be pointless to a company with anything other than modestly hawkish rhetoric so the messaging in the september minutes i think will be largely repeated. >> you have done a survey where less than 25% of respondents are expecting a rate higher than 1% by the end of 2018