i am francine lacqua.o our weekly exit show. i am francine lacqua. whiteget an assessment of the the talks have become stalled -- let's get an assessment of why the talks have become so stalled. we are joined by nigel, a former u.k. ambassador to the e.u. in the united states. thank you for joining us. advocate isou moving me test pieces around to make sure the u.k. does a good deal? d need to get along with the e.u. or need to be tough? the u.k. has come off worst over the last year since our new government was formed since the brexit process started. what we need more than anything is to get a united position. it has to be united around what makes sense from business and long-term for the country. around probably with the lines being advocated by the finance minister, and that i think with -- i think would lead to a more sensible approach. francine: you don't think that u.k. has a unified position? the prime minister went out of her way to do the speech in florence. nigel: it was united to an extent. the

i'm francine lacqua in london and tom keene in washington, d.c.up in 45 minutes from the. now. let's go to catalonia. spain's king says the separatists unacceptable disloyalty has no place in the democratic state. and an address, he vowed to keep the country together. has fallen as a fallout from the catalonia referendum as it continues to reverberate around the market. but to back to richard jeffrey and themos. you.e start off with we saw a blip on the euro on the back of that referendum. now i'm looking at the spanish spread between bonds and germany bonds. you can see that widening a touch. of what needs to move on the back end? themos: we are entering a next three to six months where politics may become once again the issue. we will be focusing on the italian election at the end of the year and the beginning of next. the main issue with spain is that although it touches spain at a point where the country's credit rating has been improving, so that creates a big market impact. at the same time, it does have an impact on the budget and domestic

this is "bloomberg surveillance" and i'm francine lacqua in london. we are live in beijing to bring up the latest from the party congress. we bring in the latest from our china choru correspondence. let'sthings first, quickly check on your markets. first of all, i wanted to have a look at the yuan, this is on the back of what we heard from china. stocks in europe in to be drifting sideways a touch. i think investors are trying to figure out what the next catalyst is. draghi is due to speak today. and then, the independence claim is tomorrow.n, that that's the bloomberg dollar index, up a touch. here's nejra cehic. reporter: donald trump claims tax reforms would be worth $4000 a year for the average american household. he asked for help so he could give the country "the best christmas president of all." >> today are business tax rate is 50% higher than our average economic competitor. this is a giant self-inflicted economic wound. reporter: the u.s. president has said he plans to choose from amongst five finalists to be the next federal reserve chairma

francine lacqua in london and i'm tom keene in new york. class is in session.he bloomberg. and instead of showing the chart, this is the actual function. down here is the rule, which is a first order difference equation, weighted. there's a weight, and here is another weight. what's a guesstimate at inflation ought to be. here's policy inflation. and you come up here, and my "surveillance" mathematician told me we are not on the same page. here's the taylor rule up here, much higher interest rate, and here is where we are with chair yellen. david stubbs. right?o all >> you did great, as always. tom: does this work? your function on just showed, there are so many different assumptions you have to make to tell you what the rule is actually saying and these are not stable over time. difficult, remely it's very hard to pick the right assumption. rules are an essential part of monetary policy, but my personal preference is having discretion regarding how closely you follow those rules. tom: the elephant in the room noe is there's really measurement of economic growt

francine lacqua.get straight to the bloomberg business flash. weighing the sale of aluminum. the company has been speaking with potential buyers for dunkirk in northern france. regulators in europe and asia the role staffng may had made in transferring billions of dollars and private bank client assets before new trap -- new tax transparency laws were introduced. a spokesperson for standard chartered declined to comment. customers single a declaration it -- of independence may cause them to pull from catalonia. according to a person familiar with the metal, -- with the matter, -- that is the bloomberg business flash. francine: the spanish prime minister convened his cabinet today as the financial and political squeeze titans. meanwhile, the catalan president ands economic damage isolation if he pushes forward with plans to declare independence. our reporter has been covering the story from the very beginning. what can we expect from the cabinet meeting today? the cabinet meeting is happening right now

. ♪ lacqua ini'm francine london.u.s., senior republican senator has said donald's reckless threats towards other countries could set the country close on the path to world war iii. this.rker said the comments came after insults between the president and the u.s. senator. mass protest in spain, a member of the catalan administration has forced a dialogue with the administration. the standup -- the all of print came as the catalan president vowed to press ahead with independence. angela merkel agreed to an annual cap of 200,000 net migrants to her country. the first policy where support for her -- .he previously resisted this the confession allows her to to pursue talks on a coalition government. is opec secretary-general saying restrictions are balancing the market. consensus growing that extraordinary measured may be required to stabilize prices through 2018. mike pence is walked out of an 49er me after a number of players knelt during the national anthem. he tweeted "i will not dignify any event that disrespect our

nejra cehic and for francine lacqua -- in for francine lacqua . -- davidtzker rubenstein on the changeswe will stay involved in the firm and i will be with the coexecutive chair and bill will serve as co-cio. we are not walking away but changing our roles. we let the new people run the firm day-to-day as of january 1. >> how much leeway will you give them? >> a fair amount, you cannot have a successful transition if you are helicopter and over people and we do not want to be helicopter parents. we will keep involved and help you as weekend and tell us what you want us to do. you guys run it day-to-day. >> this was largely a decision that was yours to make. when did you personally and why -- it could have happened at 67 or 69, why 68? >> we have worked together for 38 years and we began to feel that it is time to hand over the reins to younger people. it is not clear that people who , 67, 70 what are the best leaders of the future and we did not want to wait until it is too late and people say we should go. they were not saying it. >> why these guys? >> glenn has been with us for 23 year

i am dancing lacqua and london -- francine lacqua in london.d trump denies he asked for a 10 fold increase in america's nuclear abilities. the broadcasting license should be taken away from nbc. in brussels, a round of brexit talks have come to a close. the european side is stepping back from concessions it was considering last month. toh the commission refusing discuss trade, and with 18 months to go until u.k. tumbles out of the block, the focus to london is turning to contingency. administration has been given five days to clarify if they have declared independence. they have until 10 a.m. local time on monday to state their position. if he is found to have violated the law, the prime minister may try to remove him from office. abe looks to maintain his position after the general election. -- ldp is likely likely to win to an 89 seats. the coalition partner is likely to win 30 seats. together, they're are likely to win three headed seats. in california, the wildfires have claimed at least 21 lives. governor jerry brown has declared states of

francine lacqua in london, tom keene in new york. pressure on catalonia after an illegal referendum, according to the spanish government. the country will use all the tools at its disposal to enforce the rule of law. leading to my bloomberg terminal which shows the spread between the italian 10 year yields and spanish 10 year yields is not that great. it seems to be for the moment, political risk just priced into catalonian bonds. james bevan and niall ferguson still with us. when you look at how this ends, we do not have a template for it but it shows political risk in europe should not be discounted. >> i do not think this is too huge a risk. it is interesting we have seen a number of separatist movements in european history. think of scotland, the northern league in italy. this is not exactly without precedent, and i think it is going nowhere. it is not only illegal, it is unconstitutional. that gives the madrid government encouragement. i do not think this is going to happen. the one risk, i think it is small but not zero, is the

francine lacqua in london. francine, tell me about the austria election.it a sideshow? francine: it could be a big deal. there is catalonia, austria. i would not necessarily put those together, but you see the resurgence of political risk kind of coming at the forefront. if you look at the new leader, he is bright, very young at 31 years old. it could be problematic if he ends up being very keller's medic -- charismatic. immigration, migrants, and refugees as well. let's go to first world news. taylor: starting in spain, the government may begin the process of suspending self-rule in catalonia within days. the catalan president is defending the regions claimed independence. he wants a face-to-face meeting with mariano rajoy. the answer was not the clear yes or no that rajoy had demanded by today. that may be enough for them to take direct control of the region. in iraq, government should submit to take over oil fields of the northern city of kirkuk from kurdish forces. iraq says it seized a refinery and other facilities. is a point of contention. last mont

i'm tom keene, francine lacqua in london.tlook yesterday was almost a jumble of optimism. right, and a're lot of the hopes we had pinned on tax reform or political risk we discounted seems to be coming back. catalonia is still kind of left, right, and center with madrid heaping pressure on the catalonian's. chapter four last night of the world economic outlook and i was amazed how the imf goes after tax reform, particularly in the united states. we will talk about that tomorrow. with your briefing this morning, here is taylor riggs. taylor: we are starting with pain heating up the pressure on catalonia's independence movement. he has stopped short of declaring independence and says he will seek talks with the spanish government. meanwhile, spanish prime minister called for an emergency meeting of his cabinet, he is due to give a news conference shortly. north korea appears to be ready to fire a number of scud missiles. about 30 missiles have been moved to north korea's west coast, building its own version of this guide based

francine lacqua and tom keene in new york. the fog as washington and the fog known as the new york football giants. >> i'm not responsible for the giants. [laughter] tom: the yankees went down and tears were had at the keene home. we are focused on december 8, which he would predict where the conservatives take their stand for fiscal responsibility. is that their last stand? >> it could very well be. we have written about the prospect of shutdown of the government if they don't reach budget deal by then. they can always extend it through christmas. paul ryan has suggested they may keep them there to keep the deal done. the fiscal conservatives have thus far been accommodating, but that is the deadline. tom: the chat this weekend, the democrats against the republicans, the politics of all of this. is it a rockefeller republican presidency up against a modern conservative congress? marty: we actually don't know. donald trump has not signaled his position on a health care repeal and replace fix. and mitch mcconnell is moving to p

tom: let's bring in francine lacqua.eing tax cuts that are significant. do you think the stock markets will be on a tear? michael: i would be very surprised to see something substantial get through. the reality is in the senate you're going to pick up the votes of a senator corker, mccain, collins, very uneasy with the idea that you don't pay for tax cuts or something that explodes the deficit. i would be surprised and maybe get a short-term market response , but longer-term, if you look at the cbo race line forecast, they have the spending share gdp rising 500 basis points, just based on the current setting and our demographic pressures with an aging population. i don't see where there is this fiscal space to do some kind of a massive tax cut reform where you are paying for streamlined structure with base broadening. that is a different story. maybe get some supply side effects that would be worth doing but very difficult to eliminate those popular exemptions and removals. much more difficult to saying i support tax cut

in london, francine lacqua.o other words than to say once again, "in america." francine: it is once again in a lot of parts of the world, tom. what i would caution, we do not know any motives. we heard from the chief of police saying we need to be careful and speculate on social media. we understand there was one shooter and the gunman was shot dead. tom: she and her team have been following this all morning, emma chandra. shootingre has been a on the famous las vegas strip. at least 20 killed and more than 100 wounded. a gunman opened fire from the 32nd floor of the mandalay bay resort and casino. hundreds fled the scene. automatic gunfire erupted. riflesarmed with assault stormed the mandalay bay. the las vegas sheriff describes what happened. >> there was a shooter on the 32nd floor of the mandalay bay. officers responded to that location and engaged the suspect at that location. he is dead currently. he has been identified. he is a local resident. i will not release his name at this time. but we are interest

joining me on "leaders with lacqua," former bank of england governor mervyn king.hank you so much for speaking to bloomberg tv. it is always a great pleasure. what lessons have we learned? learned thehope we lesson that this was bigger than financial crisis. it represented a serious problem in the world economy. i think that is the most important lesson. second, we learned we need to worry not just about the amount of equity capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. people take their money out, or they don't roll over there letting, and we need to do that. francine: did we see early signs of it? mr. king: i think we saw signs in the world economy, and we should have given more weight to the rise of leverage in the banking system. at that point, the banks themselves were deeply reluctant to admit what was going on was not sustainable. francine: at what point in the lead up to the financial crisis did you think there was something seriously wrong? mr. king: i give a speech before the

i'm francine lacqua in london. all be live at a conference

joining me on "leaders with lacqua," former bank of england go,

joining me on "leaders with lacqua," former bank of england governor, economist and author mervyn kinglord king, thank you so much for speaking to bloomberg tv. it is always a great pleasure. what lessons have we learned? from the financial crisis? lord king: i hope we learned the lesson that this was a lot bigger than just a financial crisis. it represented a serious problem in the world economy. not sure that everyone sees it that way, but i think that is the most important lesson. i think secondly we learned we need to worry not just about the amounts of of equity capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. and if people lose confidence in them, they take their money out, or they do not roll over their lending, and we need a mechanism to do that. francine: did we see early signs of it, or were we late to the game? lord king: i think we saw signs of it in the economy, and we should have given more weight to the rise of leverage in the borrowing of the banking system. of course at that point, the banks

francine lacqua will be joining us a little bit later on. looking at the building here in london. let's talk about the headlines we are watching. we are doing an interview with the saudi sovereign wealth fund, seeking leverage to boost its return. that is interesting aspect for this story. 2025,ects to employ by having $2 trillion by 2030, and this is to support new city projects in the coming years. this interview is ongoing and is happening right now. this conversation -- he will month the it elsewhere. it is a fascinating conversation and we will bring it to you as soon as we have got it wrapped up. we will be bringing you all the details playing it out for you coming up on bloomberg. let's get a look at these updates. taylor: republicans are sending out mixed signals about the fate of retirement accounts in the new tax bill. hours after president trump ruled out changes to the plan atop congressional writer indicated their status is under review. kevin brady says plans are still on the table. speculation that republicans may reduce the a

joining me on "leaders with lacqua," former bank of england governor, economist and author mervyn kinglord king, thank you so much for speaking to bloomberg tv. it is always a great pleasure. what lessons have we learned? from the financial crisis? mr. king: i hope we learned the lesson that this was a lot bigger than just a financial crisis. it represented a serious problem in the world economy. not sure that everyone sees it that way, but i think that is the most important lesson. i think secondly we learned we need to worry not just about the amounts of of equity capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. and if people lose confidence in them, they take their money out, or they do not roll over their lending, and we need a mechanism to do that. francine: did we see early signs of it, or were we late to the game? mr. king: i think we saw signs of it in the economy and we , should have given more weight to the rise of leverage in the borrowing of the banking system. of course at that point, the banks t

francine lacqua in london.ister may, her hammers got to be going, that her handlers got to be going, this is the best date ever because it showed how fragile she is. francine: i don't know if it is fragile, but there was a difference between what people in westminster will think of that speech with things falling out. you can see behind her, her having a coughing fit in someone handing her a piece 45, and how much it resounded for people who saw a more human side to the prime minister. tom: all you can say is that it is a slogan behind the prime minister that someone was going up. that.ndlers did not work it dropped like a bomb. there you go radio for a difficult name for the prime minister. right now, here is emma chandra. president ofn, the catalonia is keeping the breakaway region's next move. he spoke last night, but did not say when or if he will decline attendance. cap to long -- catalonia voted back in dependence on sunday. in an exclusive interview with bloomberg, the economy minister rejected that idea

this is "bloomberg surveillance" and i'm francine lacqua in london. let's quickly check on your markets. let's see if there is a little bit of an impact on the index for the month of october, 116.7 instead of 115.1, as we were expecting. i am looking at stocks moving sideways in europe. they were falling off in asia as the earnings season continued to unfold. lar, putting pressure on industrial metals. bond yields, edging lower. i put the vix up there, because we had not seen that in a while, a little bit flat. we will get back to your markets shortly, but let's get straight to the bloomberg first word news. nejra: china's appointed five men to the standing committee. they will be too old to rule for a decade after xi has his second term. >> we will build on the good momentum to continue modernizing china's system and capacity for government. china still wider to the world. francine: the u.s. senate has moved to overturn a rule aimed at making it easier for customers to sue banks, pending financial firms a big win in their battle against postcrisis re

nejra, they after day, in for francine lacqua. i'm going as cash. what will you go as? nejra: oh, i dont know. maybe i will go as a call opti on. u can dress in greek letters. theta, there is no graceful exit here, folks. ylor: special counsel robert mueller appears to be building the case the trump campaign was in close talks with brexit officials who wanted to defeat hillary clinton. robert mueller revealed that a former trump foreign-policy advisor pled guilty to line about his contacts with russian operatives. george papadopoulos is not cooperating with prosecutors. meanwhile, paul manafort and an aide have been charged with money laundering. congressional tax writers are considering a gradual phase in. according to people familiar with the matter, they looked at the schedule that would/business traits from 35% to 35% in 2022. -- that would slash business taxes from 35% to 20% in 2022. the bank of japan reduced its forecast for inflation. the boj is under little pressure to take more action, though inflation is low below the 2% target. catalonia's independence movem

he spoke to francine lacqua in an exclusive interview from madrid. point that important was very relevant in the discussion, that the european parliament held yesterday. isis that the rule of law the main question. it is the main point we have to enforce. it is the legality we have to defend. there is nothing acceptable outside the legality. we have been totally open to discussing with the catalan government, but it always has to be within the framework of legality, and the framework of the spanish constitution. if we accept any sort of, let's say, mediation or arbitrage, we are setting a very dangerous president not only for spain, but for the whole of europe. francine: what i am trying to understand is, would it be the same police that went in on sunday that would implement article 155 if that was the road the spanish government decided to go down? : the spanish government has different instruments. in order to enforce the law -- you cannot be totally sure if people will be furious, and can be totally assured. we will use the instruments we have av

in london, nejra cehic in for francine lacqua. catalonia -- the story will not end. there is a new government in barcelona? nejra: right, it does not and. mature trying to take back control. we had protests over the weekend from the anti-independence protesters, but the spanish yields keeps falling, so does not seem like the markets are pricing in a lot of risk. also in europe, we are focused on the bank of england rate decision. the fed decision may be a bit of a sideshow this week. the boe is not. extraordinary events in washington as well. with our first word news, here is taylor riggs. taylor: starting in barcelona, hundreds of thousands of people jammed the streets in protest, saying that the -- as the prime minister has begun the process of reasserting control. whether test will be people will follow calls to resist spanish masters in catalonia. the united nations says iran is complying with the terms of the nuclear agreement. the head of the u.n. nuclear watchdog says all countries are abiding by their commitment. donald trump once the deal renegotiated. the f

bloomberg's francine lacqua explored the topic in several exclusive interviews.h intesa's ceo, whose bank recently took over the business of two troubled regional lenders. ♪ francine: how is this synergy going and do you think we are over the worst for italian banks? >> i think if you look at synergies coming from these banks, we are already delivering significant results, especially in returning back of deposits , assets under management, so there is an increase in deposit in just in three months. so it is very positive. also, a you look at the cost side, we have received 1000 applications to the bank from the people that can leave in the organization, so both our revenue and cost side, we are perfectly on track on the plan on synergies on these two banks. integratione the ip , we will realize that by the end of the year. i think we can exploit very good results from these two banks. francine: do believe investors after focusing so much on the individual banks, will move on to worry about the small italian bank in general? >> italy is a country, in my view, and

i'm tom keene as always with francine lacqua. today is a big day for barcelona.ay and authorities in barcelona are giving a big speech and this is a day of reckoning where they independence or they could say they are thinking about it and delay it for a couple of days or never declare independence. we don't know, but it definitely could be a day of reckoning. tom: let's get to our bloomberg first word news. here's taylor riggs. taylor: we are starting with that story in spain. it's the moment of truth for the government of catalonia. the regional parliament meets today to consider a declaration of independence that would likely lead to a tough backlash from the dread. the catalan president addresses lawmakers in barcelona tonight. he will discuss the outcome of that referendum. earlier this month that was ruled illegal by spanish courts. california's napa and sonoma wine country, fast-moving wildfires have killed at least 10 people and damaged a number of vineyards and wineries. at least 1500 buildings have been damaged or destroyed and 20,000 people have been fo

this is "bloomberg surveillance" and i'm francine lacqua in london. we have a very packed show. mark

looking forward to that conversation with francine lacqua. a game of thrones. favors in the betting markets as trump's picked for the fed chair. a speech at 2:00 p.m. today. municipal met down. president trump's suggestion that puerto rico o.a.t.'s debt be wiped out spooks -- puerto rico's debt be wiped out spooks wall street. welcome to "bloomberg markets: european open." i am guy johnson in london. 30 minutes folks into the trading day. how are things shaping up? more from the ibex. we are trading just sub 10. we have come back some 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

nejra, they after day, in for francine lacqua. i'm going as cash. what will you go as? know. maybe i will go as a call opti on. u can dress in gr

this is "bloomberg surveillance" and i'm francine lacqua in london.ijing to bring up the latest from the party congress. we bring in theat

lacqua sat down for an exclusive interview with him from madrid. mr.dos: i think there is an important point that is up for debate that the european parliament held yesterday. is that the rule of law is the main question. as the main point that we have to enforce? is the legality that we have to defend? there is nothing acceptable outside of legality. we have been open to discuss and debate with the catalan government. it has to be within the framework of legality in the framework of the spanish constitution. if we accept any sort of, let's say, mediation, what we are setting is a dangerous president not only for spain, but for the whole of europe. >> when i am trying to understand is would it be the same police that went in there on sunday that would implement article 155 if that was the road the spanish government decided to go down? mr. de guindos: the spanish government has different interments -- instruments. weple can be assured that will introduce instruments that we have available and noted to enforce the law. that is the first principle. i am

speaking exclusively to francine lacqua, the energy minister said catalonian independents is bad for something and we do not know what they want to do. we told them the best thing they can do is to stop this process. because, first, it is not legal and not sound in the sense that independents do not get a majority of the votes in the next -- last regional election and the third time, it is bad for the economy, many very important companies in catalonia are leaving catalonia to other parts of spain because they do not like uncertainty. catalonian politics is leaving that part of spain. scarlet: catalonia does not see it that way and it spokesperson spoke with us in barcelona. >> we will always be at the negotiation table. to start negotiations, we need a partner. if they want to come to the table, we will be there. we have always been there and no reason for not being at the negotiation table. whatever the situation is. politics is the answer and that is what we demand. so far you have been fake about dates and we do not have a sequence of events with what triggered the loss to create

with the european commissioner for economic and financial affairs, francine lacqua would insist i getenerali shall change in the labor dynamic -- generational change in the labor dynamic in europe. you have been at the center of a dialogue in paris. in france the where does it stand? socialism, labor and the elite? >> france is the country which from the imagel it was at the center of europe. now it is somewhere in the french. this country could have chosen populism. they chose to elect a young president macron with a pro-european language. the french are not unable to be reformed. they are people who are worried and generous. it is high time for this country to reform. france is in recovery. we need to also have a point of compromise between labor and wealth. that is probably what the difficulty is today to find a strong social dialogue. >> that social dialogue wraps an around -- wraps around interesting european centralism. the stunning results of germany where the far right reenters. shift ina generational european social contract? >> there could be a contradiction. two opposite mo

i am francine lacqua. we will be speaking with the former barclays ceo. , antony jenkins. movingf markets are sideways. a lot of people are looking at catalan and where they can go from here. seems that because brexit negotiations have stalled, the focus will not only be on catalonia and the spanish government's next move, but they will talk a lot about korea and iran's new sanctions. let's get straight to the bloomberg first word news. sebastian: the economy humming in the third quarter, gdp rose 6.8%, and industrial production umped 6.6%, and retail sales o 3%. that gives president xi jinping the platform to shift to a more sustainable growth platform. probing ties between the agency and ties to south africa's family. is investigating whether they mishandled funds. this was the heart of the political scandal in south africa, who has denied any wrongdoing. catalonia's president has said he may declare independence unless the government in madrid agrees to talk. letter togdemont's prime minister mariano rajoy came out just before the deadline to confirm or declare whether