nejra: bitcoin boom or bust.e discuss the future of cryptocurrencies and if regulators can work fast enough to effectively role in the changing marketplace. beyond mifid ii, after it goes into place, what does the buy side have to fear, to look forward to? welcome to bloomberg markets: rules and returns, i am nejra cehic in london. where we dig into the opportunities for markets around the globe. from mifid ii to dodd-frank, we speak to the top newsmakers and market participants shaping and reacting to a new generation of rules. let's kick this show off with etf's. passive investments are getting a boost in europe. mifid ii is expected to increase flows from retail investors in the u.s. the fiduciary duty and new guidelines will raise their exposure to etf's. to talk about the impact that mifid ii will have on etf's in europe, steven coen at blackrock. stephen, so great to have you on the program. i have brand-new hot off the press intelligence research saying europe etf's may double to $2 trillion in five years

i am nejra cehic in london.ules and returns is a show where we delve into the regulatory challenges and opportunities for financial markets around the globe. we will talk to the top newsmakers, regulators, and market shaping the rules. passive investments are getting another boost in europe. is excited to increase investors from the u.s.. it will enable retirement savers and insurers to raise their exposure to etfs. .o speak is stephen cohen so great to have you on the program. thank you for joining us. i have brand-new, hot off the press bloomberg intelligence research saying that you are etfs may double to $2 trillion in five years on mifid ii. let's talk about growth. is that the sort of growth you expect as a result of mifid ii? and that alone. stephen: it is. and i think that mifid ii will play a big part in it. i don't think it is just that, as you have seen in the last few years, in the u.s., a shift towards utilizing etf's by all types of investors in their portfolios. i think there are broader ships goi

nejra: interesting.he second largest shareholder -- given the recent rift between saudi's and qatar, i want to see how that is impacting your chances of winning the listing in london. are listings in london from general geopolitical risks in a general sense? >> i would not speak specifically about any customers. qataris are me, the the largest, not second-largest. they have moved convincingly to the top tier of our industry. , decisionstimately about capital raising are linked to one thing. performance. if you perform for your clients and deliver the liquidity and service, the type of products are -- products area and -- products. nejra: up next, we will talk deceptive in the banking industry and how they could amount huge charges and opportunity. this is bloomberg. ♪ nejra: welcome back to "bloomberg markets rules and returns." let's talk the future of banking. you wish and that could reshape the industry in the new year. service directive could have wide ranging implication. it has the ability to break

nejra: bitcoin boom or bust.e discuss the future of cryptocurrencies and if regulators can work fast enough to effectively role in the changing marketplace. beyond mifid ii, after it goes into place, what does the buy side have to fear, to look forward to? welcome to bloomberg markets, rules and returns, i am nejra cehic in london. where we dig into the opportunities for markets around the globe. from mifid two to dodd-frank, we speak to the top newsmakers and market participants shaping and reacting to a new generation of rules. let's kick this show off with etf's. passive investments are getting a boost in europe. mifid ii is expected to increase flows from retail investors in the u.s. the fiduciary duty and new guidelines will raise their exposure to etf's. to talk about the impact that mifid ii will have on etf's in coen atsteven blackrock. stephen, so great to have you on the program. i have brand-new hot off the press intelligence research saying europe etf's may double to $2 trillion in five years on mifid

nejra: like what for example?> some of the trading platforms where they have high frequency trading going on, that is a new world. nejra: you said you will work with firms in january. with any firms that haven't made any real or genuine attempts to be ready, how hardware you come down on them? >> there will be per message is going out, you have not made any firmere will be messages is going out, you have not made any progress. don't turn up on our door and asked us to solve the problem in the morning. what we don't want and this is why we have structured the work, we don't want to see dislocations on the third of january or the other days thereafter. we have been very much focused on what we need to do to make sure the markets are functioning effectively. nejra: in terms of proportion, you expect to be ready by january 3? >> there are so many different sectors and subsectors but high proportion yeah. nejra: 40% of the managers met and it was an attempt to get clarity on the rules. many people are trying to get the

nejra: fascinating. thank you so much.t for this edition of bloomberg markets, rules and returns. if you have any questions, comments or feedback you can drop us in the mail at rule sreturns@bloomberg.net. this is bloomberg. ♪ ♪ >> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with a focus on the opioid addiction problem. it claims over 100 lives daily. today president trump declared , it a public health emergency. in a speech alongside families affected by the opioid epidemic, the president called it the worst drug crisis in american history. pres. trump: my administration is officially declaring the opa opioid crisis a national public

i'm nejra cehic. bloomberg. ♪ ♪ >> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with a continued search for answers in las vegas. here is the cbs evening news. >> investigations are no closer to understanding what allowed this what inspired 64-year-old even cried out to create such carnage. his preparations were so elaborate including placing cameras of his room that investigators believe he may have had an accomplice. the sheriff of las vegas county. >> stephen paddock is a man who spent decades acquiring weapons and ammo and living a secret life, much of which will never

nejra: thanks so much.a large part of the regulatory community busy for many months after january 3. that is according to the chairman of the european securities markets of authority. what else should be -- what else should the buy side be looking too. , sean, great to have you on the program. thank you for joining us. we are done with global financial crisis regulation and the ship will be more to policy debates. what did you mean by that? piece ofs the last big regulation that came out of the crisis. when we get to the other side of mifid ii the landscape changes. there are far fewer regulations that need to be implemented and the focus of policy will be on looking at the regulatory framework and see what needs to be tweet or if new rules -- to be tweaked. next year globally will be the etf industry. the tremendous growth of the industry in the last 10 years has knock gone unnoticed by policymakers. they will take a step back and look at the framework and see what needs to be changed, if anything. this ye

nejra: thank you so much. hit a serious snag after months of talks. according to those familiar with the matter, the parent companies of businesses see -- cannot see past their differences. has raised concerns about giving up control the unit. rebecca joins us now to talk us through the issues. they cannot agree on a valuations, does that mean the deal is dead? i think -- >> i think it will be more issues that could be resolved. the situation with this is that deutsche telecom and softbank, in this situation if you are to merge the two companies come another one would have a controlling stake. they need to get past that. one could put up cash to get past that point, but it is a tricky scenario. nejra: what is at stake for deutsche telekom and softbank is it -- if it does not go through? >> they want to merge, they want to take on sprint and verizon. what is at stake for sprint is they have $30 billion of debt coming in the near term. if the deal falls apart, they will have to look at that with the softbank com

this is bloomberg. ♪ ♪ nejra: live from london, i am nejra cehic.for the stock of the hour. nordstrom tumbling after it suspended its attempts to go private. >> the management team is the nordstrom family said it is suspending efforts. stopping them, but suspending them for now because it struggled to get financing with favorable enough terms. the family owns 30% of company shares and will do a review of operations. said there was difficulty obtaining debt financing. nordstrom compared with other retailers is on relatively good footing and it said it was going to attempt this buyout plan. sales atame-store nordstrom versus stores more broadly. on a relative basis, it has done better although you can see it has had negative same-store sales in recent quarters. one analyst said it is a high quality retailer am a but still an imperiled retailer. why is the nordstrom family having so much trouble getting financing? it still is getting dragged down by the negative sentiment surrounding the industry. company,estimate the the family needs to raise between

nejra: thanks so much.eep a large part of the regulatory community busy for many months after january 3. that is according to the chairman of the european securities markets of authority. what else should the buy side be looking too. joining us now, sean, great to have you on the program. thank you for joining us. after mifid ii we are done with global financial crisis regulation and the ship will be -- the shift will be more to policy debates. what did you mean by that? >> that is the last big piece of regulation that came out of the crisis. when we get to the other side of mifid ii the landscape changes. there are far fewer regulations that need to be implemented and the focus of policy will be on looking at the regulatory framework and see what needs to to be tweaked. or if new rules are needed. >> what sort of policy debate are we looking at? >> the big one next year globally will be the etf industry. the tremendous growth of the industry in the last 10 years has not gone unnoticed by policymakers. they

i'm nejra cehic. to dodd-frank, we will speak to the top newsmakers and market participants shaping and reacting to a new generation of rules. the sec says firms can accept payments from clients. a 30 month reprieve to u.s. firms on the research was coming into effect in january from mifid ii. the regulation team in washington joins us now. then, great to have you. you have been all over this story from the beginning. why does the sec deciding to do this. was it lobbying? >> large wall street brokerages have been pushing for months to get the sec to tell them if they can accept payment from european clients and not have to register as an investment advisor. they don't want to register in the u.s. because that carries responsibilities and costs, fiduciary duties. the sec relief they announced today is limited to european clients so they can continue to bundle research with trading execution services in the u.s. for their clients. nejra: in your story, then, you described this as a major victory for u.s

nejra cehic is watching the market. nejra: not a lot of action.ady much changed that unchanged on europe's benchmark. you have text that underperforming. a lot of that is down to nokia dragging those down. interesting to keep an eye out financials as well. they are pretty much unchanged but a number of the bank are falling of the session. you have materials outperforming their. interesting that those commodity producers are outperforming because we are not being illustrated industrial metals today or in oil. if we take a look at euro-yen, euro-dollar get a week high. euro-yen interesting because it is near an almost two-year high. over whether we see any retracement on this. we hasn't given nazi retracement levels on that. fibonacci some retracement levels of that. we are pretty steady in this session. 2.43%. the next resistance area for yields is 2.48%. stop the eu has agreed to -- start internal preparations on the possibility that the u.k. will not meet a were agreement with the eu. they have started the prospect of not making enough progress t

nejra: sorry, chris.f big things happening in the u.s. this week and how that feeds into the equity rally, i want to take this global and ask about china. if china sneezes, does the u.s. equity rally catch a cold? chris: i think so, but i don't see them sneezing. i see the cold as going away. in other words, we see relaxation ahead for chinese fiscal policy and i think that you will see lower rates there over the next year. i think the communist party meetings have shown that he is in total control. i think he wants to see flourishing economic growth and i think we will see more of that next year. nejra: what about deleveraging? we have seen yields in china rising. the shanghai composite falling the most since august. the lack of volatility we saw through congress starting to stutter somewhat. does the deleveraging concern you? chris: long-term, it certainly does. i think we tend to be reaching a crescendo in the short term on that trend. i think what you are going to andour rates peaking gradually coming

nejra: i'm day ready -- che pitch -- nejra cehic in london.numbers coming through from took out a miss on adjusted profit. the third-quarter adjusted net line withcoming in estimates, $2.7 billion. oft is versus the estimate 2.7. total also to pay an interim dividend of 62 euro cents a year -- in april. of $20 a breakeven barrel in 2019. the key number than that adjusted income in line with estimates. also, we have numbers from royal bank of scotland. we had ubs earlier this morning. with rbs iser third-quarter adjusted operating profit, coming in at 1.25 billion pounds, beating the billion pounds. it will be profitable in 2018, that just coming through and rick -- retaining its medium out outlook. also its 2017 financial guidance. couple ofve a european heavy hitters coming out with earnings. electrolux is the first one. out of sweden, third-quarter theating off it beating street estimate at 1.90 6 billion krone, compared to 1.90 2 billion and the company also 2, and the company saying the appliances market could rise 1%. checkout iag, as wel

i'm nejra cehic. from mifid ii to dodd-frank, we will speak to the top newsmakers and market participants shaping and reacting to a new generation of rules. the sec says firms can accept payments from clients. a 30 month reprieve to u.s. firms on the research was coming into effect in january from mifid ii. the regulation team in washington joins us now.

nejra: it certainly does still come down to money., to the point what we have heard, -- to that point, what we've heard from some leaders is that the pledges, the u.k. has made a signal they will make on the brexit bill, need to be turned into more casual negotiation. mean we areesn't going to move on to trade talks in december. what we have been hearing before today is eu officials were getting ready, going to a point where they would be ready to do that if they made that decision in december. it's kind of still there now. there's a tone shift. the u.k. press, when it keeps talking about there being no progress in these brexit talks, that's just not true. really, a kinder tone from both sides. mrs. is a good performance so far. >> what they bring and maria in barcelona. -- let me bring in maria in barcelona. advocates have called on customers that side with them, to pull money out of banks that have left the area. the cars run on the bank -- how seriously can we take this? it's a most like a second referendum, if you will. if custome

nejra cehic. nejra: i showed you gea group earlier.ut pulsing or possibly elliott management. gea group gaining after trading yesterday. elliott management built a stake of over 3% in the company. smith and nephew now, this is according to people familiar with the matter. we heard elliott management has built a stake in this company as well, but it is not clear how y own.he this is smith and nephew. according to u.k. disclosure rules, they are required to report a shareholding that exceeds 3%. we could perhaps surmise from that. it is lower than that. we are seeing smith and nephew gaining 2.7% even while it is not clear how much elliott owns and what it plans to push for the company. this is all according to people familiar and according to bloomberg's reporting. we are seeing a bit of a general relief rally in spanish assets. after the close yesterday, fitch upgraded to be be be from -- to bbb. both of these stocks, two of the biggest gainers in this session. on the downside, one of the i.rst performers is mond see, down 8.3% at the

nejra: the short answer is maybe. briefing to the press in just a few minutes, and what we have heard from a u.k. official is that she actually signaled she may give a little more when it comes to the brexit bill. was a morerd positive and upbeat tone from angela merkel when she spoke last night of the dinner. she is very motivated to move the talks on to trade in december. the motivated and planning for that of course does not mean it will happen. e.u. leaders want more concrete proposals from the u.k.. signalnt theresa may's about the brexit bill to translate into more concrete negotiating positions. francine: what does it mean that jeremy corbyn was at the brussels meeting? trailing theresa. does it weaken her position? chuka: it's an interesting question. -- nejra: it's an interesting question. some are saying it is interesting that you leaders are even engaging with him. along with other reporters spoke with him on camera yesterday. bour it comes to whether la has a more clear position on brexit than theresa may'

in the meantime, more details with nejra cehic. nejra: thanks so much.wered in with the gilt market open right now. we saw the tenure gilt yield 1.27ed six basis points to percent and it looks like we are unchanged because the tenure stay,ield at 1.27%, so following our we are seeing in the treasury markets and the market ast as -- bund well. a muted open. we are up just about -- on the stoxx 600 to digging into the industry groups, a little bit of a mixed bag. market as well. it is the lack of pullback. this chart, g #btv 2851 -- a 5% drawdown. that is the chart to take a look at. above 70, it suggests something might be overbought. that could be a signal. that is where we are with the stoxx 600 right now. guy: metal salt talk about some of the individual names. gas higher again this morning. a number of other stocks i want to focus in on. the market seems to like those. it is rising nicely this morning on the back of that. on the downside. akzo softer. downgrading the sales line, trading down as well, down 1.7 1%. you are seeing some of the weakness we

nejra: bitcoin boom or bust.s the future of cryptocurrencies and if regulators can work fast enough to effectively role in the changing marketplace. beyond mifid ii, after it goes into place, what does the buy

nejra cehic? nejra: sales beat estimates.out the midas touch 5.7%.ci, caring rising it was good she they did power that third-quarter sales growth dented powerd she that third-quarter sales growth. kering leading the gains. one of the biggest performances is novozymes. on the downside, i'm looking at antofagasta. falling the most since september 8. guidancesaying that for 2018 was disappointing. guy: thank you very much indeed. the biggest story that we are going to be covering over the next few days is what is going to happen with the fed. the president is holding a straw to raise hands to pick a fed chair. that is something we are going to be paying attention to in surveillance. 2.4 seen to be a magical line in the2.4 seen to be a magical linn the sand. matt: i guess -- [no audio] guess.h information, i the ecb decision is also important. just a heads up, i'm going to head to frankfurt tomorrow and interview the cfo of deutsche bank and then run over to the european central bank. come back and watch us for that. join us on

let's get the details with nejra cehic. nejra: the focus on bank earnings.he worst performers, those are actually tech stocks. we are seeing a number of these banks trading lower from a barclays, and deutsche bank. the big story is over trading. jes staley said he would not panic after one bad trading quarter. he has had three. in thes posting a drop third quarter, trailing most wall street rivals the reported an average 22% decline. he did perform better on this front than deutsche bank. for barclays, detects profit also came in -- pretax profit also came in underestimates. europe's biggest investment bank keeps losing ground to its rivals. income more than doubled as the bank lowered costs and headcount and we are seeing deutsche bank lower by 2.6%. lower by 2.6%. nordea is to cut 6000 jobs in a bid to stay competitive but third-quarter net income was a miss. that is what is weighing on these chairs. guy: nejra, thank you very much indeed. he has been talking about the situation in catalonia and spain is aware that it may face catalan resistance once the i

nejra: bitcoin -- boom or bust?future of cryptocurrencies and if regulators can work fast enough to effectively role in the -- rule on the changing marketplace.

here's nejra cehic.ejra: blackstone group's ceo has told bloomberg the company could double its assets under management to a hundred billion dollars in five -- management to $800 billion in the five years. >> for us, we have $400 billion roughly. without pif. there is expand, certainly scope because we grow at least 10% a year. actually, sometimes a lot more. we are starting a variety of new businesses. there's real opportunity for many people to be investing with the firm. nejra: the french carmaker says sales rose to 12.2 billion euros, ahead of analyst estimates. outsideis extending europe with a slide in the u.k. amongst concerns over brexit. gucci, powering third-quarter sales growth. 25%. sales climbed revenue also beat estimates. chipotle fell sharply in late attack after a hacker hampered earnings last quarter. the profit amounted to 69 cents a share last quarter. aboutts have estimated $1.623 a share. francine: china has unveiled its new leadership lineup with no clear potential heir to presiden

nejra: it is a bit of a mixed picture. we are looking at a raise of 3%. the full year guidance, exceeding 2 billion s wiss francs. weir group dropping the most since april, seeing the full year operating profits lower. finally, i am looking at rodtor k, dropping the most since july, after goldman downgraded it from buy to neutral. guy: thank you, nejra. it's tuesday and there is a lot that is happening this week. let's get our thoughts from kokou agbo-bloua. how long before the new fed chair has to deal with the recession in the united states? . >> this is a good question and something our economists have been looking into. are 80%ate that we through the current business cycle, which has been one of the longest. therefore, we see a slowdown in the u.s. activity in 2019 to 2020. this will eventually drive a slowdown in business activity. guy: when is the ecb going to raise rates? >> according to our estimates and forecasts, the first rate hike should occur somewhere around june of 2019 after the tapering process. guy: so, you are telling me we have a reces

nejra: bitcoin -- boom or bust?the future of cryptocurrencies and if regulators can work fast enough to effectively rule on the changing marketplace. beyond mifid ii, after it goes into place, what does the buy

here is nejra cehic. nejra: ubs could employ about one third less staff. contraction and the number of people in our industry." he added that ubs could shrink by that measure, including contractors. saudi arabia looking at unprecedented deals to acquire oil and gas assets and russia. crude producer is considering investing in russia's largest oil drilling contractors. would deepen ties between the world's largest energy exporters, as the saudi king prepares to visit moscow. to produce its cheapest model shortly after the car debuted, setting back the mission to reach mainstream consumers. they built just 260 model threes in the quarter have a less than 1/5 of its 1500 forecast. they fell in extended trade after that announcement. that is bloomberg business flash. ceo is inuber's london for an emergency meeting with transportation authorities to salvage its business and european markets. this comes a day after the resignation of the manager in charge of the u.k. and north europe. we are joined by european tech reporter giles stern who wrote the story on our

cehic inomberg's nejra brussels. now is martin look, chief investment strategist at germany. here in let me just ask, i feel like, because almost all of my colleagues are in london, there is a focus on brexit that the rest of europe does not care about. martin: i would not say the rest of europe does not care about it. britain is very important trade antner and cash return is important part for the rest of europe, but in the wider world, it is a smaller issue. this is what we heard us feedback from the talks in washington from the imf is that the world is looking at the story as a specifically british problem, not necessarily as britain as a whole. -- as europe as a whole. for injured, it is a very british -- fraser, it is a very british problem. going on in what is catalonia right now. we have the issue of greece that the e.u. is writing unlimited checks for and will probably do the same thing, be doing the same thing for italy for a long time to come. with all of these issues, and you know, governments undecided in

here's nejra cehic. nejra: we start with that developing story. at least two people reported dead and 24 others injured after a shooting on the las vegas strip. police say one suspected shooter is down and they do not believe there are anymore. authorities have shut down part of the las vegas strip and interstate 15 after reports of gunfire. some flights have been halted at mccarran international. u.s. president donald trump has used twitter to tell his secretary of state that he is wasting his time in seeking negotiations with north korea. the remarks came a day after rex tillerson acknowledged that he is communicating directly with the rogue nation. the move highlights differences within the administration about how best to get kim jong-un to halt his nuclear weapons program. theresa mayinister heads into her conservative party's annual gathering fielding questions over why she hasn't fired boris johnson. johnson has challenged her strategy on leading the european union twice in the last few weeks. may could a weakened only laugh and dodge the q

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 chairman and will make his choice soon, before he leaves for his 11 day trip on november 1. with canadawound up and mexico rejecting what they see as hardline u.s. proposals. negotiators exchanged their strongest public barbs yet as speculation grows that the trump administration will walk away from the deal. political parties have reached an agreement two weeks before american start planning up for coverage. the trump administration said last week it was cutting off the payment and on tuesday the president called the agreement a short-term solution. euro

nejra: bitcoin -- boom or bust?re of cryptocurrencies and if regulators can work fast enough to effectively role in the changing marketplace. beyond mifid ii, after it goes

let's find out what is moving with nejra cehic. nejra: i'm starting with the airlines.lvency. uk's biggest airline failure today giving easyjet and ryanair a list. easyjet up 4.2%. homebuilders have been in focus with the u.k. government pledging a 10 billion pound extension to like a program. barratt earlier was higher. it is hitting a record high in this session. on the downside, i'm looking at a greco. been driven by cyclical upswing in the u.s. based on the recovery and rebuild efforts following the hurricanes. they say any lift could be temporary and can be offset by difficulty elsewhere. shares are down 6.1% today. we are awaiting a press conference in las vegas regarding what has taken place. we had fatalities, a number of people injured in a shooting earlier on we saw the airport shutdown. --now understand there are they believe there are no more shooters. only one sugar is "d -- shooter is "down." difficult night in las vegas. clearly a very big police response. the other thing i want to mention is that there has been a story developing in spain over the last 4

nejra: you are absolutely right.e been pestering him, i even ran alongside him as he entered this building about an hour or so. he is in brussels to meet with eu leaders, and also possibly. himself, heleader is in opposition, but he was met with a lot of fanfare. in fact, he was announced as the next prime minister of the u.k.. some called it political theater, but what corbyn is saying is that he wants a jobs --st frexit, and he has said that is why he is here, really, to push for that. it has taken some of the shine off of may. she arrived hours after he did. vonnie: thank you, that is nejra cehic at the european commission headquarters in brussels. speaking of jobs and brexit, we have ceo of goldman sachs lloyd blankfein tweeting a few hours ago. he says i will be spending a lot more time there, and #it with the brexit mark. was this a sign that they will be moving jobs from london to frankfurt? mark: frank for teams to be emerging as the winner when it comes to banks moving their employees away from london. it se

anna: thank you very much nejra.n you are traveling for work, tune into bloomberg radio live on your mobile device. that is if you have to turn off bloomberg tv. psa is about to run the team to talk about asset allocation. manus: what surprises might be in store at the ecb. it makes his way toward the qe exit. this is bloomberg. ♪ anna: we are expected to be weaker at the start of the u.s. treasury day -- trading day. let's talk about what is happening in india. manus: india's state-run banks surged in mumbai trading after the government pledged to inject $32 billion in capital into the lenders. state bank of india jumped. punjab national bank advanced 40%. let's get to our agent finance reporter, anto antony. good to see you. capital boosts catching everybody by surprise. yes, the position to increase to capital target has caught everybody by surprise. is creditaid that it positive. the state banks have added more than 10 billion and capital market. this will help banks to clear up indian banks which are saddled wit

i'm nejra cehic. this is bloomberg.eds revealed little to surprise markets and the u.s. lowerl bank said inflation may not be transitory. powell may have been privately recommend that the next fed chair. donald trump has scheduled a meeting with john taylor. the president has promised to's up the american tech system. could the fed be next? to shake up the american tech system. could be that the next? us, paul quinsee and jon moulton. to the fed and when it comes to central-bank policy, what do markets want to know? markets want to know how quickly central banks are going to withdraw this extraordinary level of stimulus that we have been enjoyed and markets the last seven or eight years. we have seen the first signs of that in the u.s. have begun to creep up. we've been talking about beginning of the end of qe. but really, very little has happened so far. we haven't commented he monetary policy in the u.s.. the markets want to know how quickly cisco to change. francine: how quickly can a change? jon: the underlying econ

here's nejra cehic.ejra: we are watching kobe steel, which has plunged again after admitting data was falsified on iron ore powder. the products have been used in cars, planes, rockets and trains. 1/3 of the value of the company was wiped away. it might also play a role in the country's elections. will be sold to a private equity firm. the company is valued at 2.6 billion euros. according to people familiar with the matter, there are bits from other firms. management has built a stake in smith & nephew. it's not clear how much the activist investor owns. a representative for elliott declined to comment. a spokesperson for smith and nephew says it does not comment on "the identity of our investors, other than those publicly disclosed." that is the bloomberg/. francine: the minutes of september's fomc meeting will shed light on raising interest rates again this year. we spoke with sergio ermotti. >> the market is already pricing the probability that you might see a point or a 3/4 point hike in the future.

here is nejra cehic.moves if we look at the mid-cap space, dominoes februarye most since 2016. up 10% at the moment. in a tradings update, dominoes saying it sees its full-year pretax profit at least in line with views. end ofo be at the lower its range. dominoes gaining on that. 3.4%, the most since july on the announcement of a new ceo. jonathan lewis will take over --ective december 1 four december 1. the biggest drop since february, after kkr sold 1600 ordinary shares, raising 119 million pounds. guy: thank you, your mid-cap moves. that's talked about how things are shaping up and down this morning. let's talk about what is going on. as you can see, it is a story that came out of asia. it is into europe. maybe we need wall street to get back into gear, remember the treasury market was closed for columbus day. but not a lot happening. there are stock movers out there. you are seeing lvmh on the move , i think is any us is on the downside. level, not much happening. let's talk about politics. up next, 1

nejra cehic is there for us.t be little changed but we are seeing sizable moves in individual stocks. pearson jumping the most in five months. boostedigital revenue earnings at the world's biggest education company. pearson predicting four-year profit -- full-year profit in the upper range and the stock will come as some relief for the ceo. the company has stumbled somewhat this year on a gloomy outlook in the u.s. college market. an update for -- up day for pearson, and also airbus. agreed to acquire a majority stake in bombardier's c-series and will start assembling the jetliner in the u.s.. this packed opening a new front in the battle for global aircraft sales. airbus will contribute no cash when the deal closes. by almost 3%.her the worst performer on the europe equity benchmark, merlin entertainment, extending a drop of more than 20% right now. the biggest drop since brexit. we have to go back to june 2016 to see a drop this big. it sees 2017 ebit at the lower end of analyst forecast. that is largely what i

manus: i guess spoke lucidly to nejra cehic -- lucidly to nejra cehic. >> i read some of the comments's not a 25% governments ofe that mandate the mention 20% liquidity. there is a liquidity test that in the past, there have been instances of companies that were extremely large at obviously would provide stand to liquidity that were allowed to list on the preemie market with less than 25%. it happens in the united states all the time as well. , --s not confuse government governance, and a liquidity test, which is less than 25% of the economic arctic, but there is nothing ready to ensure smooth trading with the underlying security. reaction that their continuing shelving the international art of the ipo? does this have anything to do with-- >> again, i cannot comment. based do you think it's becoming let's -- less a traffic -- less attractive with brexit looming? >> the number of ipos, the funds international companies, when you have 100 to nominated bonds. we raised over 40 billion pounds capital year to date. if you look at any of the , the same applies to partners and colleagues. th

. -- nejra: he -- suffering popular is reviewing a $1.9 billion takeover bid from pai partners.rench private equity company raising a previous rejected offer. an offer that reference to said it is now seriously considering. it said that in a statement today. we have seen the shares gained 8.6%. it is heading for the highest close since 2015 if it continues gaining on this level. euros .7 5 -- 19.75. we're looking at coca-cola hbc. one of the bottlers in the coca-cola system and the ceo of coca-cola hbc did die monday. that is the news we have had. the company putting that out in a statement today. the stock is down 2.9% on that news. downgraded to reduce from hold and the stock is down almost 2%. performances on the hbc 600. guy: thank you very much indeed. the spotlight will be on boris johnson when he addresses the conservative carvey -- the conservative party conference today. he says he is behind every syllable to the brexit plan. falling into line, apparently, after challenging her authorities. we will see. anna edwards is in manchester. anna: thanks so much. by nickye conf

. ♪ nejra: the final countdown with less than 100 days to go in themifid 11.ak exclusively to andrew bailey, the head of the conduct authority about brexit and the future for asset management.

maria tadeo from barcelona and nejra cehic from brussels.s, market strategist from jpmorgan asset management, mike bell join us. take this aside from your european strategy? ibexnderperformance of the 35 during the course of this crisis going back to the start. what is your attitude towards spanish assets? -- mike: wee been have been underweight. it is more that there are better companies elsewhere than the politics. it is pretty unlikely that catalonia will be leaving spain. we are not too worried about that. these headlines about taking money out of banks aren't a particularly good idea, but the view is that catalonia will stand spain but we are finding more attractive options elsewhere in europe. where are the most attractive opportunities your finding? what are you optimistic about? across europe, we like cyclical companies at the moment. we also think the companies that are getting the majority of the revenues from within the eurozone are attractive. that's a domestic cyclical focus. we think there is some possibility the euro could app

. ♪ nejra: breathing room. reprieve is given on mifid research rules.s opportunities. the castle walls are about to come down for european banks. we break down how traditional lenders will have to share their data with best in tech rivals.

. ♪ nejra: the final countdown with less than 100 days to go in ii rulesl the mifid kick in.s, we speak of facility to andrew bailey the head of the conduct , authority about brexit and the future for asset management.

nejra: bitcoin boom or bust.the future of cryptocurrencies and if regulators can work fast e

. ♪ ♪ nejra: the final countdown with less than 100 days to go in the mifid 2 rules kick in.hape the relationship between nasa managers and -- asset managers. we speak exclusively to andrew bailey, the head of the conduct authority about brexit and the future for asset management.

nejra: global news 24 hours a day. by more than 2700 journalists and analysts in over 120 countries. i'm nejra cehic. this is bloomberg. let's check in on your markets. the third dayfor and for after falling for the first week in six months to digest the election in japan, the catalonia crisis, the potential unveiling of the next fed chair by trump, u.s. growth data, and trump's efforts to overhaul america's tax code. lots to focus on. euro-dollar down for the separate -- second day. rajoy announced an unprecedented amount of measures to step down the rebels. probably half purchases to 13 billion euros, stretching out the programs remaining capacity as it awaits for inflation to pick up. that's according to our bluebay survey of economists. the euro has fallen 1.3% since that september meeting. that is against the dollar. this is showing you how the ibex has spared going back to the middle of may. since the referendum, it's down by 2%. stocks underperforming there. down 8%. and we have 1.5%. post referendum, that was 4

nejra: the final countdown with less than 100 days to go in the mifid 2 rules kick in.s asked for clarity. research revolution with big changes on the horizon area how will it reshape the relationship between asset managers and asset owners. we speak exclusively to andrew bailey, the head of the conduct authority about brexit and the future for asset management.

>> i think the real challenge -- one of the things that most nejra about this country, it is never in history was toossible for some people live with so much surplus and wealth being created. things talked about is, how canestion -- actively create economic surplus and how can economic surplus translate into equitable growth? growth -- we'll have the worst of all worlds and frankly we will not have increased equity. if we can come up with new technology and new technology is .reating a surplus that is a challenge of our time. charlie: since the time you acame ceo, there has been $250 billion appreciation in microsoft market via. >> that is what the stock price is saying. i don't think stock markets are indicators of leading success. great work happened before i became ceo. but is delivered on your watch. >> that is correct but that is how i look at it. primarilyas it been in creating new markets? things, rather than -- the cloud, other things, rather than expanding from windows? >> i think that's true. in fact, still windows is a big part because people do need large screens. they nee