m. three m. and caterpillar alone here on tuesday were responsible for good one hundred points to drive the dull jones industrial average to a new records but no the focus will be again on technology companies we will get earnings results from microsoft from intel from google and also from amazon all on thursday after hours and it probably would also depend on those numbers if we can continue this breast taking a really new high here on wall street the dow jones industrial average almost twenty three thousand five hundred points absolutely incredible all men all of wall street yes quarter thank you very much. if you want in a small only dim sized enterprise here in germany your job looks fairly safe for the time being the country's economy has always relied on highly specialized small and medium sized firms in fact have long been referred to as the backbone of the german economy and that was study has confirmed that the role they play in the country's economic health is more vital than ever. a ne

m. three m. and caterpillar alone here on tuesday were responsible for got good one hundred points to drive the dow jones industrial average to new records but now the focus will be again on technology companies we will get earnings results from microsoft from intel from google and also from amazon all on thursday after hours and it probably will also depend on those numbers if we can continue this breast taking a really new high here on wall street the dow jones industrial average almost twenty states twenty three thousand five hundred forty absolutely incredible and our man on wall street yang scotia thank you very much. in poland young doctors in the southern province of man want to us set to go on strike tomorrow over their working conditions unless it's an emergency they'll be taking part in a so-called doctor free day calling for better conditions and wages. these young doctors are hungry and tired they haven't eaten in days in protest of the working conditions in polish hospitals they say

three four nine three c m distance and c m sky position as estimated for the gravitational waves and this point source an optical light is the first time we have exactly identified where gravitational waves have come from and we can pinpoint exactly the star merger and its position on this guy once a ball or interest the nasuwt physics incredible stuff and i want to ask you just briefly now before we go because we know that albert einstein that he first predicted the existence of these gravitational waves about a century ago why do you think it took so long to get out of their existence. i took a hundred years to build an instrument that was capable of making this measurement the measurement you have to me is a distance measurement you've got to measure space and time you've got to measure a distance of four kilometers to one thoughtless the size of a proton it's an amazing the physics experiment is amazing distance measurement and it's just taken not long to actually get the technology to measure it and that's that's done and what we call a loser interferometer and that's where do i

m and m's edged out skit tles swedish fish, hershey number three in the state that calls it home, new jersey's mess popular changed as well, skitles are favorite knocking tootsie rolls back at number two and m m's third there. as for delaware life savers are first in the first state. >> is what your favorite. >> i think they change the name it was $100,000 bar but now it is called -- >> would you like that candy. >> because you have very expensive refined taste. >> it is not expensivey like those little chocolate things. >> yes, i do like those too. >> good stuff. >> keeping up in the food, segment of show, southern california restaurant could be victim of a halloween prank. >> or it could be a case of paranormal activity, check it out, after hours security video from cronin's in ventura tipped chairs over for no reason. there were chairs moving during business hours. patrons who hang out said it is weird but they are cool with it. >> it is just funny, interesting. >> i'm okay until it is my chair that moves. >> it is just we are. we have been here 27 years. nothing weird like this has ever happened. >> it is california, maybe minor earthquake. owner says maybe it is the spirits of former p

the three favorite candies are m and m's tootsie rolls and blow pops. >> two out of three ain't bad. ieve it. >> in maryland, yummy milky way is the win are in people buy more than 38,000 pounds of this delicious candy bar with the caramel and nougat. good hmm. >> new good. >> i'm in the big fan. they happen to have reece's and blow pops. and by they i mean we. >>> in v snickers. >> now we're talking. >> hot at a mal lease. i love hot at a mal lease and candy corn. virginians buy up 26,000 pounds of delicious snickers. so snickers has everything plus the peanuts, right. >> that's why i throw the all in there. >> all that and some peanuts. >> yes. >> that's what i have. >> thank you. >> okay. >> still trying to figure what that is in california on the map. >> it did look like men toes. >> men toes for halloween. >> i'll look it up. >> pennsylvania look like blueberries. we have research to do. we can do while holly and maureen tell us what's coming you up on good day. >> you must focus. >> just a point of note candy corn no buono. >> i'm with you mo. >> i'll trick or treat in maryland,

and in three weeks you'll read of. new m s m b c anchor looks suspiciously like amazon akko a necktie reading kind of gun press releases. that. he has more personality than most of the regulars still that's our show which i gather a doctor and i we're going to talk just a moment of clarity free on i tunes and stitcher also you can now get redacted night on direct t.v. channel three two one i don't act on but i think. i played for many clubs over the years so i know the game and so i got. the ball isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the superman each kill the narrowness and spending to get to the twenty million. it's an experience like nothing else because i want to share what i think what i know about the beautiful game but great so what chance for. peace is going to. do colonies still exist. ricos treated as one that's not on the economy calls on the hind foot so really no something real intend them to throw them out on the puerto rico i see no one

m m monume monumental melt down. erick gordon hit a game winning three at the buzzer and you call that an ugly loss. >> i didn't have problem with the defense i thought it was pretty good and i look forward to seeing the tape but executing offensively down the stretch -- was disappointing. >> the yankees have fired manager, joe girardi after ten seasons on the job and one win awa way from making it to the world series and the phillies still need a manager. just saying. >> the world series when in favor of the houston. and george springer hit a homer in the 10th inning. eight homers were hit between to teams and game three tomorrow in houston. >>> penn state is just two days away from a date with oef ohio state and penn state has to contain j.t. barrett he accounted for seven touch downs last week, one of the most successful quarterbacks in school history is not the most successful quarterbacks in big ten history and nationally. have you to respect everything that guy could do in his career. penn state ranked second in the nation a 6.5 underdog in this game. >> tough to win in that stadium in columbus. >>> students a

m&apect to regulations, that is a piece of feedback we have received over the past several years, with respect to some limitations in m&a regulations that faces the activity. we have three a completely new m which we hope will opportunity, while protecting minority shareholders. our next goal is the offering and listing rules, which we have been collecting a lot of feedback on. released theve draft rules for public consultation. vice-chairman of the capital markets authority. part of the conversation also goes to the fiscal side of things. considering an expansion budget in 2018. he is pointing out that authorities are seeking to support the economy that he describes as struggling under the weight of the austerity cut back. the biggest error was to quarters of a row after the cut their crude. joining us from riyadh is the head of research. the possibility of a more expansionary plan as we going to 2018. to what extent do you expect the government to relax restrictions and try to reinvigorate some growth and economy is not growing. data is actually growing substantial level. we're seeing m3 liquidity growing by 1%. the real gdp grows by almost 1% as well. -- sincewing population growth is

now the internet retail giant amazon has been ordered to pay almost three hundred million dollars in back taxes to the european union m s m so good some warehouses across europe for almost a decade and channel the sales to luxemburg the u.s. says it had a special deal it meant it paid less tax than other companies he was also taking action against ireland to make that claim back around fifteen billion dollars from apple. today's decision to order luxembourg to recover unpaid tax from amazon and refer to the e.u. for failing to recover on pay tax from apple. i hope that. both this issue is that seen as a message that companies must pay their fair share of taxes as the huge my durex of companies do. saudi arabia's king solomon has arrived in moscow for a five day trip the first of a visit by a saudi monarch to russia king salmond will hold talks with president putin the war in syria will be top of the agenda along with bilateral investments and stabilizing oil markets turkey's president has met his iranian counterpart in tehran for talks on kurdish secession if it's turkey's vowing to take decisive steps to stop kurdish lea

m and m's. >> thank you. >> two, skiddles, three, hershey's mini bars. >> i have a question four. even though, who make, what company, makes skiddles? >> is it heracy? what company makes skiddles? >> mars. >> look at that. >> i'll be darn. >> division of mars. >> division of mars. >> they make a lot of monday. >> i good to know we're supporting our local businesses. >> do you separate your ms into colors? >> no. do you? >> i do. >> do they still make crispy m and m that's. >> i don't think, but i used to love those, too. >> oh, man. >> and i'm fan of candy corn, i don't care what anybody says. >> me too. >> good day, it is october the 12th, 2017. >> philadelphia school shutdown now. >> shining a light on suicide, show the number every teen suicide on the rise, one young girl knows it all too well. and tore minute. >> throw back thursday. >> on your mark, get set go. >> mark sucker nerves our studio, new movie taking us behind the scenes, of his lif life, and slimes. of this iconic double dare host. the life and slimes of mark. >> plus, tooti is here. >> ♪ >> the fact. life ♪ >> or maybe you know her as rayjean. >> ♪ >> should we ask her, will we ever see a living single reboot? >> oh, and i love the girl dancing. >> i had a crush on one of the women from single life. whatever it was. >> i'm living the single life. >> i used to watch it for maxine. >> oh, but rayjean, i lo

m. sixteen than m. fourteen bayonets night vision goggles armored truck and mine resistant vehicles this is all thanks to the ten thirty three program established by the national defense authorization act of one nine hundred ninety seven it allows for the federal government to ship weapons of war to domestic police departments this is not only used to suppress public demonstrations it can also show up in your private home through swat raids according to the a.c.l.u. seven percent of such raids are usually to resolve hostage crises while seventy nine percent every the. are conducted over search warrants often drug related in one nine hundred ninety five there are about thirty thousand swat raids conducted in the united states or about eighty two a day by twenty fifteen there are at least one hundred thirty six swat raids a day on private american homes according to the a.c.l.u. during these intense raids weapons or drugs are found about thirty five percent of the time this year in the trumpet ministration announced it was rolling back restrictions put in place by the obama administration on the ten thirty three program though

three. i can't believe it they were out like m & m's. >> so you spend more time talking to this president more than most democrats. to what degree do you think he is, he gets it or what degree does the white house go further. >> first of all, we've got to get a secretary of hhs and a drug czar, someone who has experience. >> who would you suggest? >> gentleman i suggest is the gentleman out of dea and that railroaded out. >> this is the-- >> yeah. >> and say his name. >> i'm going to try to pronounce his name. i know his first name, joe. [laughter] >> now, that is a smart politician. senator manchin, last month, you were a part of a group of red state democrats who met with the president to discuss tax reform. what was that like? >> very engaging. i've had quite a few conversations with the presidents, we've got a good relationship back and forth and we agree to disagree, i can-- i can tell you this when i'm with the president, i truly have a feeling that he wants-- he's much more comfortable trying to do a bipartisan deal than anything to hold the departments in line. that's not a comfort lev

m-16 or belt-fed type weapon. >> military-grade stuff. >> typically other weapons, m-16 or could have a bipod or even a three-way could have a bipod on it. he literally set up two shooting positions, moved back and forth through the two shooting positions, as much chaos as possible and kill as many people as possible. >> how do you know how to do that, set up something to make something automatic if it's not already, and set up two positions and know about high ground and a cone of death or funnel effect? where did he get that? no military background. >> from the premeditation standpoint -- part of this is speculative. we know that the concert was announced in february. which would have given him time, if he had a particular grievance with the crowd there or whatever. we know that that was in february. gave him some time. we also know that he probably asked for that room, having that downward view of the concert area. and that doesn't raise suspicions on its face. chris you walk in and say i want a room so i can watch the concert from upstairs. then to bring the weapons upstairs -- this is not something you throw anyway backpack. couple

three pair of pants from the h&m and the guess stores a it westfield wheaton mall. the officers found loose, crumpled up foil in the backpack. when the police notified h&m, the employees reviewed store surveillance video that alleged captured green wrapping sensors in the store's elevator. green has been caught stealing before is now facing jail time. insiders explain this illegal practice is another challenge for the struggling industry. jonathan: thank you. i want to show you road rage caught on camera. watch. that will leave a mark. this is in hawaii. they capture the moment he sideswiped him and then hit him again. alison: what is going on? jonathan: i know. get control of yourself. alison: also caught on camera. the suspects hiding in the ceiling. when the men heard the cops coming they jumped up to try to avoid the police. like a heist movie. man but they didn't know a second man was hanging on up there. they found out and they ended up ripping him down through the ceiling tiles. jonathan: the video is priceless. yanks him. he has his foot. leverage. nancy: come on down. jonathan: here he comes. i got him. we'll pull you down. we got you. alison:

m&a what's next? what opportunities are out there? what parts of your portfolio what you want to improve? >> we have three focused areas, in terms of m&a. it's a professional business area, where we have an opportunity to further improve our reach in professional kitchen appliances, mainly in north america. we are looking at some key emerging markets, like southeast , and,latin america increasingly now as we come back on track our small appliances business, we seen interesting opportunity for the growth. those are our main focus areas. >> thank you for joining us. >> chief executive of electrolyte -- getting some breaking news out of spain. a prime minister speaking at the senate. he says they confront in exceptional situation. he says the situation is quote, exceptional, and has asked the .enate to accept his proposal that's the latest from madrid and catalonia. pokemon isnt because due to address the original parliament in barcelona -- the catalonian president is set to speak there. with this,tart maria, to go yes -- to describe yesterday. try and some up yesterday for us in under a minute, if you can. maria: that's right. i think it's a good idea. what we saw yesterday explains what we are seeing today. on thursday, he started the day with this declaration of independence, very much on the table. kindems that the decision of had some vertigo -- led to some vertigo. his major tension between those who want to do this unilaterally and those who think this is a big trip. at one point, the president backtracked on that yesterday, and said he wants a way out. the way out is in the form of a regional election. this has been floated as a potential third option that wouldn't apply article 155 going forward, and wouldn't apply unilateral declarations, either. he got public -- the minute there was public reaction in barcelona, people showed up to his office, shouting, you have betrayed us. we've seen that come up multiple times yesterday. he backed on this idea of a reelection. he said, there should be a vote today to respond to what the central government is planning a vote now in the senate. it's unclear what exactly will get a vote today, and what they want to do now, with what we saw yesterday with a lot of hesitation, and members of the coalition who resigned late thursday. he offers his bond in line with a unilateral declaration of independence. the problem for dumond is that he backed so many times, that now, he's looking pretty weak in the eyes of madrid. also, barcelona was disappointed with the fact that he got them on this idea of independence. mark: spanish markets remain relatively calm, maria. i mean, the ibex is slightly down today. the spread between germany narrowed yesterday. a big part of that was the ucb. is there a feeling that this still contains, when it comes to the impacts on markets? the feeling for markets is that article 155 is going to go ahead. there is nothing to suggest the government will pull back. again, from what you just ,entioned, this is exceptional and they want you to vote in favor of this bill. have a tough article 155, or you could potentially go for a version that might not be as tough. again, the? -- the question, mark, independence, can article 155 go ahead? are we going to get those crucial -- that crucial , what we -- reception will get here in barcelona?what kind of reaction will we get once the vote is through? mark: great job today, maria. we will talk -- check with you later. -- chat with you later. how do you view events in spain? moment,i think at the it doesn't have, as you mentioned, a great deal of direct market impact yet. that it'sppear following its natural course, at least at this point in time. the next critical thing for markets will be to what extent we do see potentially significant social unrest on this, and to what extent that does unnerve market sentiment. at the moment, it is somewhat contains, but it could flare up and become more of a risk. mark: talk about the ucb. someone told me earlier, when i did radio at 7:00 a.m., draghi had a class of key auntie last night. [laughter] lastglass of chianti night. investors responded to yesterday's move. cause toht have more celebrate, quite frankly. one of the interesting snippets he had was the notion that there is going to be a conference in a couple of weeks time, between the ucb and federal reserve in frankfurt to discuss medications. i think it was another master class in preparing markets well. and, critically, to prepare for the statements provided, and have -- repair optionality. they have kept statements deliberately beyond this, they will just to circumstances along the way. their fault, quite frankly, in terms of delivery history. mark: impacts on markets? -- investors focused on yields declining. a backup today, but nothing like the fall before yesterday. what would you say the output is now for periphery? >> think the main market response was, -- i think the main market response was, this is more about when does that take place? that has been pushed further and further into the back end of 2019, it would appear to read subject to macroeconomic events. in that sense, that's what has reassured markets, is that the context of any rate increase will change, monetary policy stands, is a long way off trade it has still been a risk on a environment. you see that in equity markets three to a certain extent, you see that with riskier elements within the eurozone context. therefore, markets, such as italy, can do well on the back of that, at least in the short-term. --k: you commended draghi excuse me one second. we are getting more news from catalonia and spain. the catalans are proposing elections, instead of declaring independence. they want to madrid to spend article 155 and help free a couple of jail activist. the catalans are ready to pull back and make exceptions from madrid. rajoysaid they -- addresses the issue. he says the catalan government legal -- the legal actions are hurting the economy, speaking on catalonia right now. he says it was illegal, he is speaking to the senate. he said spain is confronting an exceptional situation. exceptional. he has reiterated, the catalans responded. the plot thickens. i want to move it on, because there is so much to discuss. to the bank of england. >> yes. mark: it's interesting, you said how well draghi has communicated. communicator, a man that almost invested -- forward guidance. how has it worked out so well to see this step back over the years? if the bank -- wasn't to raise rates next week, how much damage would it do to his credibility? >> that would be a major shock to markets now, particularly when you think about the latest macroeconomic data, it has basically consolidated this statement of intent that the bank of england has made. therefore, it's all things pointing in that direction. the probability of the fed now pricing the market is superhigh. the near -- the notion, if it was to follow through now, would be damaging to his credibility. canada, hot kiss -- hawkish stance over the body of the year. the decision remains unchanged. the bank is now committed to making this move. that said the, the policy shift these days, given the preamble of communication, the policy shift itself lacks surprised. markets are -- on that. >> it's all about what happens after. >> when is the next move, and is that going to be a one step move, a long plateau? >> let's talk about value and fixed income. is there any? >> yes. there certainly is. mark: where? >> the way we are looking up on markets right now would be -- k and opportunity we think is very much in the interest rate and currency world. it is best expressed through relative values. canada relative to the united states. there might be sweden relative to the united kingdom, there's a number of relative opportunities that make good sense. while a number of states central banks and macroeconomic movements are taking place -- and there's a greater agree of unit since, in that regard, there are still differences. if the differences that can offer real capital gains. it comes to income, there is a real opportunity at the high-quality end of the income spectrum. people are still buying corporate bonds, high heeled bonds, emerging market debt securities. some of their high-quality securities, which offer attractive income, are some of the most favored places we think to get good quality income. so, be careful not to stretch too far. mark: just getting back to aren, the catalans proposing elections, instead of declaring independence. they want to suspend article 155 comment help free jail activist. theprime minister addresses senate's, in front of what he calls, an exceptional situation. it's happening -- we will monitor this. this is bloomberg. ♪ ♪ mark: we're life from bloomberg's world headquarters and london. i'm mark barton let's get a roundup of bloomberg news. here's sebastian salek. sebastian: on monday, brexit legislation through parliament hit a new roadblock, as the opposition labor party threatened to unite with labels, exalting a victory brought home from a summit. theresa may's victory was .nderlined by issues there were major changes to her landmark legislation -- in the brexit is undermining confidence a lot -- among business investors. according to a report, factories invested 6.5% more for new clients -- 6.5% for new clients, down from 7.1% previously. the european union has agreed to start internal preparations for the possibility of brexit negotiations at a summit. on wednesday, the eu's 27 governments without brexit , allowing trade talks to begin at the end of the year. preparations will begin at the same time as a more positive outcome. car production in the u.k. fell 4.1%, a six drop -- monthly drop this year. led by a a decline drop in domestic demand. core production falls 2.2% to 2017. the lack of project -- progress is raising alarm in industry, dependent on supply of content. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. salek, -- i am sebastian salek, with bloomberg. mark. mark: the u.k. should sign up for a method to calculate for the eu to move brexit talks on to trade, according to a person for the ut -- the uk's chief brexit negotiator. this comes a week after discussion was said to not have made significant improvement. the prime minister will allow them to trade as usual for two years after leaving. she has signaled a transition would only -- a deal is not shortly to be finalized before brexit in march of 2019. let's bring in our guests, professor, senior fellow with the u.k.. professor david blake, a member of columnists for free trade. how are you feeling, gentlemen?how are you feeling about how much progress the u k and e u are making over this brexit negotiation? >> the problem, at the moment, is not the lack of progress in negotiations for the u.k. and eu. it's the problem -- negotiations between the u.k. and himself. the reason we haven't made sufficient progress is not that there is this huge gulf from the eu position and u.k. position, because we don't have the u.k. position. accepts not said, yes we this part of the bill, we don't accept those elements. that's what the eu is waiting for. the problem is, theresa may does not have agreement among her own party or the cabinet -- perhaps the country as a whole -- to put constructive reform on the table. mark: david, are we close them to the cabinet uniting are not? what's going to make them united? david: we are not united until we know what the final outcome is. you can't work out the bills of something until we know where we are heading. we are not heading in any particular direction that allows us to find out what this bill is. until we do that -- mark: are you blaming the eu? david: no, the sequencing -- we are in this position now because of consequences. you can't work out a bill before you know how much you have used. it's like staying in a hotel -- the nextd then in the day after that, simply because they are turning around might not getwe anybody to come in to the hotel tonight, we have to pay it until we find a guest. no one will accept those terms. can turn around and say, they will not like. we wanted to have a good free trade deal. you don't want to do that. we can go through to beat -- we can go through our turns, and we can trade with the rest of the world, and you can abide by the tariffs we set ourselves. we should have done that from the beginning. mark: d recommend that game, jonathan, or not? jonathan: no. yes, we could do that, but you had guest, i'm sure -- you have had guest's, who ensure have said this would be a disaster for several sectors. said thism sure have would be a disaster for several sectors. in the streets will lose access to the single market. i don't think that's realistic. i don't think anybody is serious , the u.k. government actually thinks this is difficult to pursue, which is why we are where we are. the consensus among external economists is that it would play a significant medium and long-term counsel for the u.k. economy. : not serious, -- mark: damaging to sectors, not serious, although's -- all those? david:david: the single market is one of the most protected institutions in the world. paying big businesses lobbyists hundreds of millions of euros a year to try and get regulations, consumers paying 20% more -- manufacturing and food they had they need to. if the u.k. brought those tariffs down, we do have certain interstates that we are asked -- we have certain industries that we ask, why do we have tariffs? there are tariffs on oranges because spanish producers wanted to have that degree of protection. this is not good for consumers in this country. we'd be far better off having lower tariffs trade this would help increase productivity -- help lower tariffs. his would help increase productivity -- this would help increase productivity. jonathan: as i said, there is a wide consensus among ex-economist that moving to wto rules would have a significant effect on the u.k. economy. , some tariffs eu are economically damaging. every country in the world has those. the large, integrated single market with no tariffs, has -- there are relatively low tariffs on average. some prices, it's not supported by evidence. mark: the discussion has just begun. stay there. blake.n portes david -- jonathan portes, david blake. what can we expect for the rest of the world? this is bloomberg. ♪ ♪ let's check in on the markets. nejra has been following all the action. nejra: mario draghi's dovish down citing just don't call it the taper -- brought of the bulls and european equity markets. more than 1% higher yesterday, euro zone equities on the euro stoxx 60 had their biggest gain after a meeting in 2017. we're seeing that continue today. stocks up 4/10 of a percent. the gains are a bit more muted. more industry groups gaining if you dig into the industry groups open on the imap. energy and consumers outperforming along with tech stocks, perhaps gaining following earnings out of the u.s. section on the downside. some of those commodity producers -- producers perhaps choosing those. this is seeing its biggest drop in six weeks -- weeks. euro-dollar at 11635. if you are on the 118 handle, it is at its lowest since 14 weeks now. since the 100 day moving average since this dollar record following the dovish message from mario draghi and the ecb. they're looking at the bloomberg dollar index at a 15 week high, highest in more than three months. it may catch its long-term resistance on that momentum, looking at the 200 day moving average and play. it's moving higher on fed chair speculation, also the u.s. house passing a budget resolution. a tiny bit of hope moving forward on tax reform. when you're talking about the dollar, you have to keep an eye on the treasury. i've got this year to date. you can see how that spread has been moving higher, significantly in recent days. we are seeing yields continue to move higher for both treasuries. now, coming up a little bit, the 10 year yield down some. 10 year point yield moving lower. >> thank you. some politicians at the u.k. have been talking about the politics it -- the possibility of a deal. a former voice says the u.k.'s goals for brexit trade are a fantasy. they said they would end up with a relationship similar to canada's deals. >> this is in the interest of both sides. there are things with -- we will be able to achieve that third agreement for a negotiation. >> mr. speaker, i am now worrying to have a sense of groundhog day here. >> we have not reached this agreement, but it is going to happen. >> on the implementation, earlier than that i will be able to gets, certainly the outlines of it, agreed if we could. >> after another round of talks, we are still no clearer as to when negotiations on britain's future with our largest trading partner will actually begin. >> we will be able to get to the point of sufficient progress by said -- september. >> as talks prove their difficult, how will the country fair with dealing with the rest of the markets? you are professor -- we have jonathan portes and david blake with us. david, you are suggesting going to wto rules to you see that as a realistic outcome? david: we need these at the moment. we have endless transition deals. we have new trade deals. we should get certainty quite easily. we mentioned canada. if we switch in the document, the thousand page document, we switch canada for the united have 95% of a reasonable trade deal with the european union. australia today trade deal with china -- did a trade deal with china, japan, and korea in less than a year. mark: this kit -- doesn't cover financial services. david: it doesn't. we have to do modifications for support for the european union capital markets. this is the kind of thing we should be working out. what are the merchant -- one of the marginal changes we need to make on existing relationships, we don't have any of the uncertainty -- it's damaging. there are ways in which that can be done. at the moment, our side and their side aren't bringing us closer together. >> jonathan, you said it's not about our side and their side. you've said this is the difference within governments. paint the picture. october was pivotal. it's now moved to december. can we move on to trade negotiations by december? the you this week, we discovered, maybe we can't. there's a contingency. jonathan: we can. it's going to be hard for two reasons. -- article 50 negotiations we have to offer a position on the brexit bill, on elements of the bill we are going to pay, and what we said we're not going to pay. they're waiting for us to come up with a position. we have to accept this. once you do that, we need a position on what sort of trade deal we want. there's a perfectly reasonable case we are looking for something that looks like this. ministerw, the prime has refused to discussion a certain -- what sort of trade deal the u.k. wants to put on the deal --. there are no concessions within cabinets, let alone the conservative party, or parliament. let alone within the entire country, we want our post exit relationship to look like. it's going to be quite hard to negotiate. plus this canada realistic? even that isn't looking good for some. david: ivan rogers said it -- his preferred phrase was canada dry. [laughter] >> the answer is, until we get into the heart deal of negotiating, we don't -- the hard deal of negotiating, we don't know. i think it's realistic to do it by march 2019. we know the medium term isn't realistic, but we have to put out a position. the eu has to respond. we are not close to being there. mark: will parliament get a vote? they might not, because we might just fall to the ends of the period, march 2019, than they would get the vote. david: there lots of nanoseconds for the 59th minute. it got that fraction of a second down to vote. it's clearly unrealistic. we ought to get the deal done. we can't have a long-term position -- this is going to be more damaging than anything else. there has to be certainty. oncan go for world rules march 2019, we can do that. companies -- some certainty about where we are going. mark: now, we've discovered this week that transition only happens once we have marvin outline on trade, like the copy of bridge to nowhere. we were led to believe businesses were -- transition to be implemented. jonathan: the government's position on this is incoherent. what theresa may said, while -- we would have certainty -- would not have certainty until we had a full, final deal signed, makes no sense. it's not realistic. indeed, the number 10 official spokesman refused to back it up afterwards. davis, what he said is, that's not really what she meant. i think the government, again, has not got its act together on this. we have to be, we have be of to say, yes, we want transition, it looks like the status quote, and that will be agreed on before -- well, we might have free trade, but before the future trade arrangement nailed down. that is realistic, but at the moment, the government doesn't seem it -- even to be a will to say that. that's what they're thinking about. mark: as soon, david, transition? assumed we move on to it? it's far too late. david: it is. the transition is the most damaging of all. we have financial services firms , we need some certainty of her where we are going. the government will have to introduce that. it's not forget the companies in this country who deal with the eu, they tend to get the you involved. sells more toctor the rest of the world than it does to the eu. we have to look positively about the economy as a whole and try to deal with this issue. you need good will on both sides. about --hnson's point i accept johnson's point about the cabinet is not united. so, they do have to get their act together. let's be realistic about where we are, and the fact that the world is not going to end on march of 19 that -- 2019. mark: excellent come back. but great discussion. blake.n portes and david up next, theresa may faces a revolt are members of her own party on brexit. may has refused to put in writing. this is bloomberg. ♪ ♪ mark: members of theresa may's party say they are serious about rebelling against their government. promised there will be a vote on the outcome of the talks, but are resisting calls to put it in writing. rebels in the conservative party are pressing to -- for an amendment to the eu withdrawal bill. a co-author of betting the house, the inside story of the 2017 election. tim ross is here. hmm... this is interesting, isn't it? so... could members of the against,ive party vote or king up against theresa may over this issue? cards, very much on the in fact. if the government doesn't give in to keep demands to put it in self, afor the bill promise the parliament will get the vine -- binding vote of this, we will see probably a big rebellion, won't we. would be too late -- for the eu to vote on the change? >> think timing is a big? . >> parliament not -- might not get a vote until after the eu. the other question really, is what would the choice b. saidr, the government has you can either vote to accept the final deal, or vote for no deal at all. you vote to make us ministers renegotiate. >> in the week where we have for this mightses -- seem unusual, given where we have covered the last year. that shows they view the labour government realistic in waiting. >> given the state of the party at the moment, make lost her election in june. carbon, the supporters see this is one more heave away from power. they will start reaching to the labour party given that situation. the labour party has worked to do to make sure that it is seen not to be simply a hostile influence on the business front. certainly, they are working hard on that as well. mark: before we talk about the disunity, are we any closer to getting unity around exit? >> think there's still work to be done, given the noises we've seen this week. clearly, from the european union's perspective, they need a onfied u.k. to make progress the negotiation. there are only seven weeks left before the crucial december 7 -- december summit. approach to-- their trade unveiled in the next seven weeks? >> the next seven weeks will be about how much money the u.k. will into that state of trade. >> great to see you. surveillance continues. ♪ tom: the euro weakens after draghi the dollar ascended. will chair yellen blank on december 13? ups is not barclays are deutsche bank. sergio ermotti delivers profits. 388 miles from barcelona west and south to madrid. will catalan sent an emissary to ?alloy -- to rajoy extraordinary news flow. a megamerger proposed in the united states and health care of of amazon. you have another merger going on, a non-merger going on over there? guy: clarion. they can look at what is happening there stock price. kerry and down sharply. the transaction is not happening. we have some extra shareholders. tom.deal is off, tom: ge with a traditional bombshell of exiting the railroad business. with your friday breathing, here is taylor riggs. taylor: starting in spain. the government is taking a less this effort. wants toresident convince supporters to accept regional elections -- regional elections. a senior official will ask the spanish government to suspend the process of seizing direct control of the region if there is a snap election. in japan, new data underscores the challenge facing the central bank cosi makers next week. inflation remains unchanged in september. prices rose from a year ago. the bank of japan is seeking 2% inflation. capitol hill, republicans promised to unveil their tax reform bill next week. approving a budget resolution but a stumbling block has reemerged whether to limit a federal tax break that benefits high-tech states such as california. one of the contenders to be the next fed chair is calling for reforms. stanford professor, john taylor, possible ifit is policymakers focus on the changes that encourage investments in hiring. he said there may be too much micromanaging of banks. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. tom: fascinating. vincent reinhart will join us in the next hour for window into the fed. this is on the norway sovereign fund. this is really appropriate after our conversation yesterday with the hedge fund giant, ray dalio. 3.2% in 90 days if equities rally. i talked to ray dalio about the underperformance of the hedge funds in general, not just bridgewater, where they got a strategy to take out risks. how can you run sovereign wealth fund and take out risks when you're making a big 3.2% in a quarter? delly a is a big guy on parity trades? i'm looking at the norway numbers, interesting. you can convert the world's equity markets into the norwegian krone and you can figure out exactly what is going on. s&p 500, if you are a dollar investor has done the .46% this year. the norwegian currency, you have done 8%. they've got a currency story to deal with. tom: we will stay on the chart. on the right side is the column which is your to date and he has had the ability -- you can instantly convert to another currency. there is whatever is on top, the dow up 18%. we all know that the but the dynamics of the norwegian currency, you are only up talk percent. those are that's only up 12%. those are double-digit concerns. let's be quick through here after we spent this time. euro weaker. down from 118. 10.92 on the vix. there is a eurosterling was guy knows more about. i'm looking at the emerging markets, turkey ever weaker. guy: keep an eye on that turkish story, very relevant to germany. today is a day of stocks here in europe. you mentioned ubs at the top. down.is clarion that exxon mobil reporting numbers later on. foot.agen on the front stock stories sometimes matter. today is one of those days. tom: $66 billion, it is a bombshell speculation. .all street journal reporting our global audience, this is because of amazon. let's go to the chart, this is bloomberg and the idea that cbs joined at the hip. about two years ago, you can see they amazingly split. cvs rolls over. aetna moves up. all of this off of the affordable care act. this is technology where amazon considers directly entering the business of cbs. guy: amazing stuff. such a big night overnight for the tech stocks. we talked about the wei early on. your investors may have something to share about, equity investors going into year-end. they suffered. if they have been investing into the equity have been underperformed. where come to year-end, books are but a closed. i'll be going to be seeing this euro down story been changed? stephen gallo, bmo, joins us now. does this move have legs? stephen: at least in the short-term. -- if youdium-term are medium-term like myself, you wait. positioning has been horrible in the dollar for a while. agreement within the g20 that emerged late august which has caused or been responsible for a 5% rally in the dollar, it is still in vogue. the fed has been consistently hawkish. other still banks have resisted dollar weakness. i will thing draghi accomplished huge things yesterday. think draghi accomplished huge things yesterday. wholeou just listed a bunch of factors, pretty big factors. they are providing this tailwind for the dollar. , doesake out one of them the dollar keep going? if i take out two of them, does the dollar keep going? stephen: the tax reform thing, the market seems to have it backwards. on the texture from side, you could get a temporary boost in the dollar -- on the tax reform side, you can get a temporary boost in the dollar. planther aspect of the tax , whether they are partially funded, unfunded or whether they do not happen at all, the fiscal deficit is still going to increase because of demographic factors. is in opinion the dollar a 3% to 5% downdraft. not much is going to come under the tax situation. , not the is dxy bloomberg dxy. everybody follows that number. here's 94 down here which we just first through. what is the distinction of this dollar rally? is it a dollar rally against asia? what is the character of this rally? stephen: if you're looking at .he dxy, it is mainly euro down.euro-dollar upside the factors that were in place . over the course of 2017 that drove the dollar weaker work middle in growth, solid growth abroad, firm commodity prices. these factors are recipes for dollar weakness. over the medium-term, we think that is going to continue. you are looking at dollar positive noise. quickly, how correlated are the markets? how tight of the markets rates with fx? rates with commodities? rates areight now, working in favor of the dollar, this is not because of a seismic shift in the u.s. economy or the fed. is because the fed -- the markets have under press -- under price the fed dots. the more hawkish fair chairperson coming in, there was vulnerability and so you are seeing differentials work in favor of the dollar versus the euro, versus the commodity bloc currencies. this is a temporary move and it has been prompted by the vulnerability of dollars short. tom: very good. stephen gallo. our -- hour.0 vince reinhardt joining us. withe that, nathan sheets page and fixed income. from guy johnson's london, look at that. gorgeous weather in mayfair. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." let's get to bloomberg business flash. there are reports that cvs is in talks with aetna for $66 billion. the talks may not lead to a deal but the ceos are said to have met. edna says it doesn't comment on rumors or speculation. ubs has increased a key measure of financial strength. it rose to 13.7% in the third quarter after surprise drop in the previous three months. ubs continues to focus on wealth management and added $2.4 billion of new money. -- 18% jump in operating profits . iag said third-quarter profits were assisted. plus, operations improved because of several european arrivals being driven into insolvency. that is your bloomberg business flash. guy: taylor, thank you very much. madrid expected to pass .egislation to seize control meanwhile with its options running out, catalan president is due to adjust the regional parliament. i have more -- i have a my bloomberg, the catalan parliament is to be asked to be vote on independent declaration. let's get the latest. maria tadeo joins us. the catalan parliament asked to vote on the independence declaration. in expectation on how it will vote? -- any expectation on how it will vote? maria: what we are hearing is the document has linked and we understand the document will be put forward to a vote. we want to trigger a negotiation with madrid in terms of how we move forward. that if thiss hypothetical catalan republic were to take place, the debt would have to be negotiated. immediately after, they are going to get in touch with european authorities to say we want to stay in the european union. we feel like we are a part of the european community. this is a document that has linked. desk that has linked. -- that has leaked. the pro-independence majority has a majority in the catalan parliament. let's go back to that hypothetical catalan republic. a significant development. guy: maria, the simple question is, is today the day the catalan declare independence? this could be imminent. be.a: it could we know the vote is scheduled to take place at 12:00 p.m., barcelona time. that is in 40 minutes. it was unclear whether the parliament was good to vote on it. yesterday was a roller coaster day in barcelona. carles puigdemont kicked up the day with the declaration on the table. at one point he seemed like a reasonable election as the way out. they are going to vote to make sure go ahead and make this -- they are going to go ahead and vote to make this declaration. the declaration was made but it wasn't voted. this time, it seems it will get voted. tom: what is the mood in the streets? we have seen more counter protests. are we going to have protests/riots on friday? saturday? sunday? maria: we could see that, because the declaration is made and it does get voted, it will trigger action from the central government in madrid. there are consequences when you do this. the declaration is made, puigdemont could be charged with 30 years in prison. the are people arriving -- there are people arriving, pro-independence groups. we are already seeing them arrive here in the catalan parliament. there will be a reaction in the streets, whether this gets voted or madrid moves to suspend the region before they do it. guy: looks like it is going to be a critical few hours for the future of spain. maria tadeo joining us. let's bring back stephen gallo. this this move the dow for you -- the dial for you? stephen: not really because the ecb is supporting the bond market. guy: spreads don't blowout. if i look at a distribution of outcomes, the tales are getting fatter. will i start to move toward one of those -- say catalonia does declare independence, at one point on that decision curve do you start to think it does have an effect? scenarios,y of those there will be an impact, but the question is to what degree? going back to the 2011 days? note. -- no. the ecb is the glue. holding the monetary union together. we think the euro does carry on depreciating but it is one to be appreciating reluctantly and climbing with worry. tom: are you following italy? ,very research i go through whatever the country, down on page three, there is italy. is italy really the backstory? another factor burning one. when you are the establishment and you don't like the risk of potential outcomes come you change the rules. that is what they have done in italy with the new electoral law. it probably reduces the political risks surrounding the election. which will probably happen next year. it is another slow burning factor trying to continue to create tension between the antiestablishment movement which initially is quite large at the national level. the establishment. it is one. when you are the establishment and you don't like the risk of potential outcomes come you change the another link in the . along with to go in this chain. tom: let's continue with stephen gallo. how about this? television, radio, i am going to .how up with my calculator wexler's article about what you need.- wax about what you television and radio, this is bloomberg. ♪ tom: how about a chart on technology? a number of ways to slice and dice yesterday. the fang stocks, let's ring of a chart. red, netflix. white, apple. there is the normalized chart. let's expand into where we are. it is simple. these lines are moving upward in the right direction, even within a market that is very indifferent. netflix is the outlier. amazon needs to get it going. a $1200james going on price target on amazon at all that based off revenue growth and amazon is just one example that is nearing 20%. that is a miracle. guy: that is. , thei find amazing is techs have driven the market. one of the reasons people argue for it in europe is there was a tech hedge. fold, you'llstill be insulated from it. tech eight folding. folding.in't the numbers posted last night were phenomenal. if you thought about getting out, maybe it was too early. tom: a young guy like you is in a test to all of this hipness. for your week in reading, here is your friday morning tip and your week in reading, scott galloway's book, it is fabulous. i'm reading it right now. there is a chaplain after -- there's a chapter on apple, amazon. the revenue growth yesterday just extraordinary. guy: this is why have four children because they can teach me technology. tom: i put in my preorder on the iphone apps. children because they can teach meguy: coverage story on the bloomberg right now. .t is selling out in asia tom is going to carry on the come station and what is happening in the foreign-exchange markets. we will focus on this week's edition of lumber business week. -- bloomberg businessweek. this is bloomberg. ♪ who knew that phones would start doing everything? entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. tom: good morning, everyone. "bloomberg surveillance." getting you ready for this active day. guy johnson in london. let's dash to our first word news. taylor: james mattis visited the demilitarized zone that separates the two koreas. he accused north korea of using weapons to threaten other countries. and it shall profits in china rose last month by the most since 2011. earnings were up 28% from year ago. that is the sign of the resilience in the chinese economy. authorities have stepped up to reduce pollution. a national archives has released 2800 records of the assassination of resident john f. kennedy. president trump block the release of hundreds of others. the president said releasing those documents would potentially harm national security. it is the most expensive wristwatch ever sold at auction, a rolex that was owned by the late actor. the same still watch was a gift to newman from his wife. the buyer wants to remain anonymous. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. indeed.nk you very much in peas and theresa may's parlay -- party says they are serious in rebelling against -- ministers promise there will be a vote on the outcome of the talks but are resisting calls to put that in writing. now and theight founder of the consultancy, still with us, stephen gallo. good morning giles. how do we change the conversation in the u.k. about brexit. the tone is very negative. can it be changed? giles: they do need to change the conversation. the narrative is all about what the u.k. should do. it is not a zero-sum game. there are lots of this is which are financed out of london and they need to change the narrative back on that. what theresa may needs to do is get exit off the front page. it is difficult job but it comes down to having a distinct domestic agenda. at the moment, there is an one. what she stands for echo i don't know. guy: this the biggest thing to happen to britain and many generations. why du one it off the front page? giles: all you have is a lot of destabilizing speculation. to the rest of the world with state despite brexit, it is business as normal. we have a radical domestic agenda. we are stable country. holy see is brexit and a lot of destabilizing speculation. and speculation about her future and it doesn't lay out well throughout the rest of the world. guy: do we need to change succumbs asian? just change the conversation? >> it could well trigger her downfall. it is much more about ideas and personality. tom: giles, fabulous to speak to you. i would suggest you are maybe the most important person in the conversation, not the politicians but the people doing the spin game. from a distance, i have been stunned at the lack of organized spin by the conservatives in london. what is your to do list for britain to get to spend together just get the -- that the spin together? giles: you are exactly right. the first thing they need to do is turned the screw on juncker and barnier. the art european tests and are european businesses financed out london -- there are european businesses financed out of london. let's look at the eu. this is a huge issue but they've also got issues of catalonia on.g they need to sort these things out. ultimately, the u.k. did vote for brexit. on. they need to sort these things they need to mobilize public sentiment and say, these are the reasons and get back on the front foot. we are being very sensitive. tom: i want to look back and be careful how you answer this because it gets really important. can a rolloff of harvard three or four days after the brexit op-edrote a scathing about the idea of the 51 to 49% vote versus a more constitutional vote of 62% to 30%. was there regret at any time in the cameron administration? did you see an understanding that a straight up and down vote could lead to a brexit? giles: openly what happened actually vindicates what cameron did. that is way they voted. there is nothing to rerun the vote. the question being asked in the media about hypotheticals, we've got to move forward. tom: come on, this is a major look back to june 23 of last won by thebrexit barest of margins. this was a single her decision. how did that decision get made to have a vote that could be 51-49? how was that decision made? giles: let's respect the democratic will of the people in the manifesto. you put it there. you put into the public vote. unfortunately, we lost. remain if there was a vote today. i don't think there's much to be gained by being incredibly retrospective. tom: i'm in a retrospective mood. guy: the prime minister and of and should the question -- prime minister answered that question. she cannot answer that question. that comes down to the heart of the question. britain is not completely unified in this process going forward. stephen gallo, asked you earlier about catalonia. the bank is now what moves the dial when it comes to the pound. stephen: that correct. the hike is now done for november. if you had to put a trade on, it would be to bet against that because so much is already priced in. i would do nothing. they are going to move 25 basis points but less conviction around that. the risks are 60-40. guy: is the british consumer ready for rate hike? giles: there's been so much speculation about it for so long . guy: the person on high street, are they ready with a sticker shock? wages are being squeezed. how are they going to react when they get a letter saying mortgages going up? giles: i don't know where public sentiment is on the decision but it is going to hit people. there is a huge amount of uncertainty. not good for business in the current climate. looks like it is coming. tom: i am going to bring up a chart for stephen gallo. you know this chart. this is sterling after brexit. the red circle being brexit. idea, this is where giles, you loaded the boat. that is why he is buying 6000 square feet. down we go with brexit weakness. stephen gallo, this has been a huge surprise, the sterling strengthgiles, you loaded the bd gloom. does that speak to a resilient united kingdom? stephen: part of that is the dollar story. part of it is the dollar weakness. we think that continues. we have noted that the tone coming out of the october summit was better than it has been. there is still a long way to go. over the next two or three months, that tone remains. we reserve the right to switch our forecast on the nose, if the tone deteriorates. tom: guy, that is really important what stephen gallo just said, the idea that a seat strategists set to turn on a dime. giles: she needs to get some kind of quick when cash quick -- quick win out of the december summit. the ftse 100, they need some kind of certainty. guy: how do we play angela merkel? she is trying to figure out how to former new government. she is trying to keep the french happy at the same time. how do we help angela merkel isp us? >> her perspective goes, she doesn't want boris johnson the table because it will be a lot worse. guy: play to weakness. giles: at the moment, that is theresa may's biggest weakness. what is behind you guy: it could be worse -- was behind you? it could be worse. people are like you are not going to be here so why should we help you? i think that is a massive statement. guy: giles, thank you so much. tough decisions made in 2016. mr. cunningham -- mr. cunningham is the strategists for prime minister david cameron. we will continue on television, "bloomberg surveillance." your briefing. robert boone. this is bloomberg. ♪ guy: guy johnson in london. tom keene in new york. reboundseen its capital after a surprise investors with a drop in a key measure of financial strength. billion.$2.4 it focuses on wealth management. told manus cranny about lance to return cash to investors. sergio: we are looking to continue to implement our progress and policy on our cash dividend, and eventually come to make it with capital returns to share buyback. guy: bloomberg's finance met it editor -- finance editor. to return of capital seems have been the headlines this morning. are we getting overly excited? >> it is possible. we're coming from a disappointment last quarter. we are reassured to see what drove capital lower was not repeated. clearly, at this point, that is what investors have the looking for for the motto. clearly, at-- the model. guy: is ubs a chief gatherer elisa: so presley point this quarter. quarter a really strong and equity underwriting and equity derivatives. it doesn't drive the profits but it is good to see that short-term investment bankers are doing quite well for them. still coming in and the growth margin there being flat which is probably not bad given that clients are not trading. guy: that is the big issue is the people under their wings are not pulling the trigger on execute trades. -- on executing trades. you try to manage a business, one of the key levers you have is the confidence of the people. elisa: they do not see the end in sight. and geopolitical side, the uncertainty remains. they are not expecting to suddenly be trading. that is a challenge. tom: absolutely fascinating time. what do you predict for december and next year? yesterday was a barclays doesn't know where to fit in in the strategy of global banking. the challenges of deutsche bank. are we going to see the european mergers that too many of our guests suggests have to happen? elisa: we are hearing problems something.ing while i don't think anybody expects landmark deal in the next couple of months, i think there is going to be more of those types of discussions at least given that they are still having. tom: let's go to the cocktail conversations. the idea here of ubs merging with morgan stanley. gorman, isn't that a no-brainer transit letting merger? -- transatlantic merger? --sa: more of the consultant domesticre of the mergers. we are not getting the sense the types of deals that you're talking about just yet. guy: stephen, let me ask you a sidebar question. the swiss franc, it used to benefit when europe saw political turbulence. money flowed into this was economy. stephen: or money didn't flow out. catalonia is out there, where is the french franc -- the swiss franc going? catalonia is outstephen: lower. if you go back and look at the balance of data for the ones we have available for this year, what you see in the data is the smb through its foreign exchange purchases has been helping the move along, but as the euro has strengthened, they have come off the accelerator a little bit. there has been a shift in private sector flow. there has been outflows from swiss portfolios, investment assets from nonresidents and there has been some domestic outflows so residents in switzerland taking money and putting it abroad. the private sector capital, there are signs their shifting. the problem is you take switzerland with this massive current account surplus, they are going to have a recycling problem. as the swiss franc weakens, they will continue to have a recycling problem because the current account surplus will not come lower. purely on a balance basis, most of the evidence suggests that the frank is not overvalued. it is actually undervalued. 118 inern is we get the euro swiss, my concern is that with a number of political tensions and still fundamental issues in the eurozone, swiss investors will still not see value in buying euro denominated assets. that is going to be a persistent problem. ,ntil we have full integration banking union completion and so on. tycho -- guy: we will wrap it up there. stephen gallo joining us. let me show you tv . fantastic function. interactive tv, radio. whatever got coming up. dalioatch videos, ray saying that bridgewater is long the equity markets. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." let's get the bloomberg business flash. there is a report that drugstore chain, cbs, is in talks with aetna for $66 billion according to the wall street journal. the talks may not lead to a deal with it ceos have met. aetna says it does not comment on rumors or speculation. nissan has been conducting its unauthorized inspection checks for vehicles sold in japan since 1979 according to persons familiar with the matter. the government ruled that those inspections are fawlty, that led to the recall of 1.2 million cars and a temporary such down -- shutdown. that is your bloomberg business flash. taylor.y good, let's begin the discussion for the next hour. nathan sheets will join us. right now we go to dr. gallo on the february. here is the chart, mr. gallo. it is folded into foreign-exchange, folded the bonds. i think it folded the pork bellies. the absolute clariant thing that gallo lives is the duration. we have a little bit of lift up and rates. the time function is extraordinary. how many more rate rises do you need to see by the next fed chairman before we get back to normal? just going with what the general consensus is on the neutral nominal fed funds rate. call it two to 3%. that is the benchmark that i have to work with. tom: is that the benchmark the john taylor has? or is he going to have to amend and adjust? stephen: i will think that the fed in john taylor are a galaxy away from each other, i think it is about the speed. having said that, i don't think that taylor -- if he gets the nomination -- i don't think he rate rises,rush because in this world today, in the world of global capital flows, extreme capital flows, the central banks are a slave to investors in the market and the markets are slaves to central banks. they are both dependent on one another. any central banks that russia's a quantitative tightening on normalization process will be handicapped by financial market forces. guy: they are not galaxies far apart. what is the spread between powell and taylor? stephen: for the markets, think taylor is still a hawkish outcome. if taylor gets the nod, there will be another rising yields in the u.s. dollar. sheettephen gallo, the you -- appreciate you being on capital markets. our, an important interview on heroin and opioids. vincent reinhart will joinyou -n capital us who is headed economic research. thrilled to speak to him about professor taylor and mr. powell. stay with us will wipe from london and from joe girardi's new york, this is bloomberg. ♪ tom: this morning the euro weaker. we consider the fed chairman and central banker to the world in this hour. nathan sheets who will be the next reserve fair -- reserve chairman? can they reserve -- in this hour, vincent reinhart and heroin and opioids. this will be a much watch interview. do not do drugs. it.le phrases will not cut i am tom keene in london. guy johnson. inerrific almost industrial stock news flow over the last couple of days. tell us about the swiss united kingdom merger? guy: huntsman is going to be clariant.th that deal is now off. we have seen shareholders not on the front foot about this one. that deal is not clariant. happening. the mgoing on in m&a. --plenty of things going on in m&a. tom: right now with your friday briefing, here is a taylor riggs . taylor: in spain, the rebel government is making a last ditch effort to win concessions from madrid. catalan president, carles convincet, wants to voters to accept independence. he will as the spanish government of seizing the -- the central banks policymakers next week. inflation remained unchanged in september. consumer prices rose .7% from year ago. the bank of japan is seeking 2% inflation which means it will maintain its stimulus until well into next year. hill, u.s. on capitol republicans promised to unveil their tax reform bill next week. they cleared the way for the legislation by approving a bucket resolution but a stumbling but -- stumbling block has reemerged whether to limit a tax break the benefits high tax states. agenda.dent trump's john taylor argues a faster road is possible if a policymakers focus on changes that occur -- that encourage hiring. he sa