jonathan: matt toms, would you go with that, too? e, and further volatility, you have a lot of complacent money in europe that could be spooked out. so we like things of a crossover to widen towards cbx trading. jonathan: we're going to go through some quick fire questions, the rapidfire round where we wrap up the program and some key things this week into next week as well. i want to begin with bunds or btp's? henry: can you pass on that? jonathan: you have to pick one. we will go with bunds. matt: bunds. lori: bunds. jonathan: u.s. high-yield or e.m. high-yield? given the yield, thereabouts the same across the board at the moment. pick one until the year end. henry: em. matt: us. lori: em. jonathan: final question. one of the most uncovered stories of the week. the bank of japan, governor kuroda talking about possibility of exiting qe. it raises the question, the ecb versus the boj. the european central bank against the bank of japan, who hikes first? is it the ecb with mario draghi or the boj with governor kuroda? henry: ecb. but i

with me is henry peabody, matt toms and lori.conversation of a trade war, holding up really well, why? henry: it is hard to make a like a statement about e.m., but selectively we like the space and there is a narrative around better growth. a narrative around being earlier enough cycle -- earlier in their cycle. there is a dialogue about the dollar being broadly weaker for the foreseeable future to provide a tailwind to that e.m. position. volatility has come in dramatically and those who take , a long view of a fundamentally changing e.m. stories are rewarded. jonathan: let's get the function up on the bloomberg. i'll show you where things are as i see them right now. the mexican peso in emerging markets against the u.s. dollar, here is the move. a 10th of 1%. matt, if this was 18 months ago and this was the president's base case, that we would have a big tariff on steel and aluminum and potentially more to come, would the peso have moved at a 10th of 1%? matt: we take the over. is less of a specific issue of mexico and nafta th

jonathan: joining us is henry peabody, matt toms, and coming to us from boston is lori, great to haveou with me, and i want to begin with you, henry. what happened to our low rates guy the president nominated? i did not get a sense of that this week. henry: it is a change in narrative, and we have to get used to that. bear in mind we had and it -- an acknowledgment of data coming into the meeting. markets are leaning that way a little bit. the storyline and narrative is changing and is going to take a while for the market to adjust to that and move to a higher rate, higher inflation regime. matt: i think you have a person more inclined to speak as a money manager and the potential of a fourth hike doesn't signal action, it signals a skew. jonathan: the upside looks like four. we bake in three for the year and the potential for four this year. lori, is that your read of things at the moment? did we open the door for four rate hikes in 2018? lori: our view is three hikes in 2018, there is a balance, stronger growth but not a lot of fears on inflation and it is inflation the fed will be

let's get over to atlanta where we are joined by matt toms.ic earlier, this was telegraph that president trump was white to do this. is it surprising to you how surprised market seems to be? >> we are surprised by the degree of the reaction to the markets. that equity markets a very violent move and we were also surprised given the relatively cautious tone in his press conference speaking about having relationships and further relationships going forward. we will take this as a overreaction of the market out of the gate and likely it is combining with the powell testimony that created enough moving parts to make the market unsettled. a overreaction in our opinion. haidi: where do we go from here? this is a market looking for excuses after what happened earlier this year? matt: absolutely, this is a year where volatility returns and the fed is starting to unwind volatility late this year and a to 2019 and the ecb will begin to follow. volatility is on a structural increasing glide path and we think these are the exact sort of events that induce

. >> tom goverte followed by mr. winer and matt brezena. >> tom goverte. i'm tempted to come one time and just diddle daddal in front of the microphone for two minutes and not say a word, probably when there's a crowd. the reason for that is when we get on the bus that doesn't have a wheel lock and the driver has got to strap me in, the bus is not going anywhere for two minutes, and then you have to add another minute to two minutes, a minute and a half to two minutes more before the bus actually starts rolling. i know we want to move things around. i don't understand why a number -- too generous of a number of our new buses don't have wheel locks still. a large number of chairs are manual, and they would really appreciate it. i would appreciate it. so if i ever come here, and i just kind of -- you know, just go through paper, let's see how long the crowd behind us just thinks, what's going on here? remember, the bus is not moving. thank you. >> thank you, mr. goverte. next speaker, please. >> herbert winer followed by matt prezena. >> herbert winer. when

. >> tom goverte followed by mr. winer and matt brezena. >> tom goverte.ed to come one time and just diddle daddal in front of the microphone for two minutes and not say a word, probably when there's a crowd. the reason for that is when we get on the bus that doesn't have a wheel lock

matt, we heard tom foreman say would it get at them with the tariffs.eijing is not overly concerned. what are you hearing? >> well, they are not overly concerned. let me tell you why. let me read you the top five import categories from china to the u.s. electrical, joys footwear. steel is not in the top five, neither is aluminum. they are not reliant on getting dollars from their export to the united states. so, the chinese government in their response has had a relatively measured response, in part, because they don't have that big of an impact on the economy here. they are certainly not for this move. they came out after the proposed tariffs that are counter productive to global trade. what we haven't seen so far is tangible action taken by the chinese government to retaliation like you are seeing in the european union. >> le's hear from john. a measured response from china, certainly, john, no a measured response from europe, which is talking retaliation. >> very swiftly. the first wave of criticism came from the countries impacted in the trade. the

matt: that was sergio ermotti, ubs ceo, speaking exclusively to tom mackenzie. re minutes away from the open. up next, your stocks to watch, including a company that rejected a fresh offer. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." let's get your stocks to watch. joining us now, alexander george esca. there's a lot of m&a action today, some deals getting reviews, some deals going through. here's one that said no. >> exactly. this has been ongoing. they rejected a fresh proposal from u.s. paper giant international paper. they are saying this new proposal undervalues the company. that's interesting. share, soncrease per they are saying that's not enough. matt: watch those companies at the open. sports buying finish line, interesting because nike has said some of those stores could team up with amazon. >> a lot of activity on that front. jd sports is trying to seize the u.s.'s biggest athleisure market. they are trying to expand their global footprint, and this is about a $60 million deal. they are buying this company, the board

matt leili. the husband was portrayed as an eavesdropping control freak who had killed his wife during an argument. leili's defense attorney, tomt matt leili was, in fact, an innocent man, falsely accused by the state of georgia. >> they have a theory, and that theory is nothing more than a hunch. it is a guess. so if you were to ask yourself questions that might have been posed of you if you were to have gone to journalism school -- who, what, where, why and how -- you will find that, during the course of this trial, the state of georgia will fall woefully short in proving the allegations that they are making against this man. i think their gut feeling was, come on, she's naked, she's buried this close to the house, she's obviously hidden. it's got to have been him. >> what you call a circumstantial case. >> yes. >> the defense attorney concedes he had some difficult circumstances to overcome in this case, beginning with the six hours of missing surveillance camera video from the night nique leili disappeared. clegg insists his client did not erase those files as the prosecution claimed. >> the video surveillance system was sh

but i want to bring in nbc news investigations reporter, tom winter, as well as msnbc justice and security analyst, former doj spokesman, matt here. tom, you've been reading in on this. i want to know more about who those folks are. one thing that stood out to us as we were reading, they talk about this attack on february 15th, 2018. they call it the most destructive and costly cyberattack in history. this addresses the election, but also other cyberattacks. >> that's exactly right, chris. this goes a lot further than just the people that were named in robert mueller's indictment from several weeks ago, that's most of the individuals targeted here. but the u.s. government says since may 2016, energy, nuclear, commercial facilities, water, aviation, critical manufacturing systems, they've all been targeted by the russian government. and that's part of this sanctions actions taking place today. to your point, on the attack in february of this year, this was the attribution of it. the actual attack occurred last year. basically, this was a cyberattack that decimated britain's entire health system. their national health system g

matt: thanks very much, tom mackenzie live from beijing. peter canelik, -- with us.lla is this has to be important to the global fx trade. what happens if trump imposes $60 billion in tariffs on china? how does the global ethics picture look? peter: there no question, it would be adversely affected. many of the higher growth sensitive currencies in emerging markets would definitely we can aggressively. the yen would find is would see some severe appreciation. also the swiss franc. scenario.e a risk off this would be longer-lasting. you have seen some severe correlation breakdowns. in china's case in particular, some depreciation pressure. matt: you are seeing depreciation or what people run for safe havens? ater: appreciation, that is safe haven. that will see some appreciation in that scenario. you mentioned the yuan. what the -- with they have to step in to defend the currency? talking about the difference in 10 year yields in china. even without the imposition of tariffs. people are asking when do we see the pboc increased interest rates, how with the escalating t

matt: thanks very much. tom mackenzie reporting there on this key move for global markets. parker from quilvest wealth management is still with us. when i look at the challenges facing china, i feel that debt to gdp is a big one. i have a chart here. used mellow colors, but it is a harsh picture if you look at it. this is debt to gdp. 260%, china's total debt to its gdp. but it is forecasted to climb about 300%. how is that sustainable? bob: the answer is, it is not sustainable. having said that scum of the growth numbers all look very comfortable, if you look at industrial production holding at 7% growth, inflation is steady at around 2.5%, retail spending close to 10%. as i mentioned earlier on, this exports surge we have seen recently. the pboc and the new governor yi gang needs to be very focused on deleveraging that debt burden. but to put it in context, the economic data looks good with the long-term moderation. are: i'm guessing we expecting the new pboc governor to carry on the internationalization of the currency. bob: slowly. anna: this chart shows it increasing.

matt gaetz joins us. good night from new york. tom rsh i'm tom shillue in more kennedy.cial counsel mueller? new calls for a second special counsel, this time to investigate the people running the current special counsel. the white house swinging back against sanctuary cities as one state bands them completely. all that and more tonight on kennedy. president trump and special counsel robert mueller, two trains on a collision course over russia.

tom foreman, cnn, washington. >>> joining us now is cnn political commentator and columnist for the daily beast matt lewis, and its entertaining to see the few clips around and the show drew in viewers and already renewed a second season, and when you are look ing at the markets where this show rated the highest after that first season or the first episode of this season, and tulsa, cincinnati, pittsburgh, kansas city, and is that possible that roseanne could be a rallying point for republicans just as john stewart's daily show was for m democrats? >> well, possibly, and i'm glad that you and i both also like t the colors that pop clearly in the wa way we are dressed. >> we are easter egging, right? >> yes, and i hope that does not happen, but it could happen. it is really like two americas. one america, and it is pretty obvious that middle america is underserved in terms of the entertainment. tv shows made in hollywood and new york, and so the people who are making the shows often don't have the sensibilities of middle america, but i hope it does not happen. i hope that what happens instead is what is happening

matt, is there a silver lining here? >> there might be a silver lining for wall street considering steve mnuchin is the secretary. when i hear tomalk about apple and am reminded that trump mocked apple, considering the , if donald trump decides he needs someone to be you like it might not be wall street. what if it is big tech? the next documentary, which will is about the big tech companies. i can smell in the air the sense that the new punching bag for trump could be amazon and apple. grexit marty was on the show yesterday during the breaking news, but he talked about how he thinks the relationship between silicon valley and the white house has taken a bit of a pause. is the general viable response from the tech community so far? what you have to think about with silicon valley is to the extent that we are going to look ,t foreign nations as the enemy that is going to have a big impact. there are lots of different ways, and that think the biggest way i want to talk about is when you look at the biggest deal in tech, brought, trying to buy qualcomm, this is a transaction that is hitting a buzz saw. they are looking at this and

matt: we wish you the best of luck in the championship. andy, thank you so much. andy palmer, the ceo of aston martin. tommarkets. 13, dowok at futures up futures up 148 and we have the huge headlines from korea earlier. much more on that through the day. right now to investment, kim wallace with us up eurasia group and charl kanr of neuberger berman. let me bngp chart charles kantor knows and believes in. it's easy to look back 2020 hindsight and wander back to amazon and whole foods and it's another to look back at the kantor report card. whole foods in green, flat after the big announcement and what a shock, amazon put it on a percentage basis afterwards. what are the best practices of jeff bezos in capital allocation? he does capital allocation like nobody i have ever seen. charles: part of it is he has won the confidence of investors to convince us to think about his investment through the lens of paybacks to its -- that extend 20 and 30 years. incredibly cheap and patient capital with investors that want him to deploy in huge marketplaces, one of which is grocery, a $700 billion marketplace. althoug

matt there might be a silver : lining for wall street considering steve mnuchin is the secretary. he worked for goldman sachs just like gary cohn. when i hear tomalk about apple and am reminded that trump mocked apple, considering the direction, if donald trump decides he needs someone to be -- beat up on, i think you are hearing that it might not be wall street. what if it is big tech? i feel like the guy who made the clinton cash, his next documentary which will debut at con, i think is about the big tech companies. i can smell in the air the sense that the new punching bag for trump could be amazon and apple. schenker was on the show during breaking news and he talked about how he thinks the relationship between silicon valley and the white house has taken a bit of a pause because we just don't know. what is the general viable response from the tech community so far about the tariffs in particular? matt: what you have to think about with silicon valley is to the extent that we are going to look at foreign nations as the enemy, that is going to have a big impact. there are lots of different ways, and that think the biggest way i want to talk

matt: if someone is worried about the economy running too hot, we have a trade war coming. is that going to be the push back against the progrowth tax cuts? tom a trade war is never a good thing. clearly in parts of the world, it will have more than impact. concerns onhere are .n export led economy exports are up to 45% in germany. this is more of a problem for parts outside the u.s. matt: what do you think about libor rates?g every day i see it at the top of rea storiesd.st investors, markets are concerned about it, and typically a jump in the short term financing , even agnifies problems crisis. tom: that tightening in policy does signify the potential for a slowdown ahead. that is what we are facing. it is a tricky balance that jay powell faces today in his comments. he needs to be seen on top of the situation. the economynot let run away with itself. at the same time, he needs to not scare the horses in terms of the markets. anna: we are getting some news from shell. saying 67 billion is the outlook by 2020. they're talking about their marketing plans generating over 2.5 billion. we are getting this revised guidance from the company on wh

matt lambert was assigned to run down the michael beard lead. >> reporter: what did you know about michael beard's background? >> he actually was a pretty well-respected employee until september 17th, when -- when tom him. >> reporter: why did tom fire him? >> stealing from jobs and drinking, i think, on the job and that he fired him on the 17th because there's maybe some complaints from other employees at servpro. >> reporter: so there's some issues there? >> right. >> reporter: but beard was polite and cooperative when the investigator knocked on his door. >> we said, "hey, can you, you know, take a ride with us up to the barracks." and he said, "yeah, just let me let my wife know." >> reporter: and he already knew what it was about? >> we told him that we want to talk to him about the -- the homicide of kelley clayton. >> reporter: the investigator asked beard where he was the night of kelley's murder. he said he was home except for a beer run. >> he actually kind of alibied himself at that point saying that he was at that store the night before, and that same clerk working she could prove that he was in the store the night before. >> reporter: did -- did he express that he knew anything about k