let's get to the bloomberg first word news with nejra cehic. jra: the pound fell after the british prime ministers says she will pull the trigger on exit -- on brexit by the end of march. a two-year process of taking the nation out of the european union . the confederation of british industry has called guidance on how u.k. business will trade. meanwhile the u.k. chancellor philip hammond will use his first major's beach to reiterate that britain has -- first major speech to read rate that britain has -- while he is due to underline the deficit remains unsustainable, he will use the speech to stress the need for a new plan to manage the nation's finances in a pragmatic way. 5800 jobsto cut about in belgian -- in belgium to reduce costs. it expects to save 900 million euros annually. speaking to bloomberg's child -- chief financial officer says the firm's impact will impact jobs. >> we continue to invest in digital transformation, another 800 million to our digital strategy. it does involve less jobs. the important point we have very strong comme

let's get straight to the bloomberg business flash with nejra cehic. a: which a bank shares are trading higher after yesterday's holiday in germany. -- deutsche bank's shares are trading higher after yesterday's holiday in germany. meanwhile, jpmorgan ceo jamie dimon told cnbc that no reason deutsche bank cannot overcome its issues. pimco says too many fund managers are getting their hedges wrong and undermining pension returns. many managers are+++ currency protections for each asset class while ignoring the opportunity to benefit the way some extent rates correlate with moves in riskier assets. it says it is using a currently by currency approach and so far the outcome has been positive. abb says it will keep its this vision and continued -- it's division and keep the -- has been calling for the swiss firm to spin off that business. it also announced it will buy back $3 billion of shares over the next two years. shares are trading higher. that is the bloomberg business flash. francine: cleveland fed president loretta mester says the u.s. economy is ri

let's get to the bloomberg first word news with nejra cehic. ld aecb officials bloomberg the bank will wind down bond purchases before ending its program. that may happen in temps -- in steps of 10 billion euros a month. the euro climbed to a three-year -- mario draghi said qe will continue until next year. --frey good like says jeffrey goodlatte says it may help prompt central bankers to reconsider their approach. you cannot save you faltering economy by killing your financial system and one of the clear poster children for this is deutsche bank's share price. by's presidential candidates have attacked -- the u.s. vice presidential candidates have attacked each other. tim kaine slammed donald trump on taxes. mike pence hit out america's role in syria. >> i think he is a running mate for hillary clinton, because in the wake of a season where american families are struggling under the weight of higher taxes and obamacare and the war on coal and the stifling avalanche of regulation coming out of this administration. hillary clinton and tim kaine w

i'm nejra cehic. vonnie: i'm vonnie quinn. you are watching the european close on bloomberg markets. nejra: we will take you from washington to paris and cover stores at a wall street, the u.k., and the middle east. here is what we're watching. shares surged to most in seven years after it announced a deal to buy janus capital. we will hear from the henderson ceo on what the $320 billion money manager will look like. is said totsche bank have planned a thousand job cuts as the ceo heads to the u.s. for a possible settlement talk with the department of justice. the british pound falling back toward a three-decade low after prime minister theresa may stated she is writing for a hard brexit by march. let's have a look at where european equities are trading right now, just under 30 minute to the close. let's start with the big picture. german dax. markets are closed today in germany, so trading is below the 30 day average, 19% below. it is the u.k. ftse 100 that is leading the gains in western europe, up 1.3% right now. this is lar

i say we but today i just mean and and nejra cehic -- joe nejra cehic.esting things about what is going on in euro politics. the white line is the spread between italian 10 year government debt and german government debt. spanish 10 year yields for germany, being the risk for the benchmark in europe, you can see the lines have moved together until recently. the white line has been rising ahead of anxiety about that. concerns over whether they will conform to the constitutional process, lots of anxiety in italy. supply, thato spread rising in spain. today, spain is looking at another election but nothing specific that would get people anxious so you can see that gulf start to spread and widen out. , u can see that not even six weeks since that trend began. together chart brings two themes we have been talking about. the wider concerns because of deutsche bank's and european banks in general but also what is happening with the bond market. market not over and we are going to see low yields for another five years. i want to look at what is happening with bo

i'm nejra cehic with vonnie quinn. stocks finishing up today in european trade.ake you to all of the market action today. we are seeing a stronger dollar and treasury yields moving .igher this after yesterday, we have signs of a mini taper tantrum in europe on that report from bloomberg news that the. ecb was perhaps starting to look at how to taper its quantitative easing. as is the picture across the different asset classes in western europe. portugal down 7/10 of 1%. sweden higher. overall we are seeing stocks trade lower in europe. it's about the stronger dollar, so we are seeing the euro down. sterling getting pounded yet again, down 8/10 of 1%. lowest in 31 years. it's partly on that stronger dollar but also on these a hards mounting about brexit. those are the concerns across the currency markets. a little bit of a mixed picture, 10 year yield in the u.k., five basis points. a look at the movers we have been focusing on today, the biggest gainer. this after a report that a chinese company is planning to bid for the german maker of light bulbs and leds by e

i am nejra cehic. i am vonnie quinn.ing the bloomberg clothes -- close on the bloomberg markets. we are going to take you from washington to london and cover stories out of germany, wall street and south africa. here is what is worth watching. itsbritish pound extending slump, falling to levels not seen since 1985. we will talk to a global economist on the mounting concerns of the heart brexit. -- hard brexit. vonnie: as we await news on the department of justice, we will hear from a german lawmaker. and google's latest hardware event takes place today and could mark the arrival of two new flagship smartphones

i am nejra cehic, in for francine lacqua. make you smarter about what is best for britain, this is brexit, what is next. we are getting some industrial production numbers. looking at month on month we are down 4/10 of 1%. the expectation was for a increase by 1/10 of 1%. year on year was up 7/10 of a percent. surveyalso a mess on a -- miss on a survey. if you look at the manufacturing production month on month, also a miss. of 1% and we were expecting 4/10 of a percent. coming in a little bit in line with estimates more or less. the trade deficit on the screen for you. at 1.2436.e are we did have a bit of a flash crash overnight see sterling dropped more than 6% in asian trade, the biggest drop since x -- brexit. we have a little bit of a recovery since then. it did drop as much as 1.1841. its check in on where the markets are. i have already mentioned sterling and where we are with that. the ftse 100 still holding well about 7000. we sought hit that record high in the past few days, up 6/10 of a percent. if we look at europe

details ofhe nejra cehic. nejra: the swiss market, the smi ibex up .3%, luxembourg up .8%.ac 40 up .2%. a lot of focus on the euro ahead of the ecb meeting, pretty much unchanged. it's holding near its lowest level since july. take a look at 10 year bond yields, heading higher and sparking two-year yields. imap ande on to the take a look at the sector health. gains,ls are leading the commodity producers up .3%. interesting because in asia it was the energy stocks leading the gains, because of the gains we saw in crude yesterday, even though crude is softer today. wti is holding above $51. financials aren't performing too badly, along with consumer discretionary. more green than red, but we aren't seeing massive games, at least not as much as we saw in asia. i mentioned the euro and a wanted to highlight this chart -- this is a great one we have for you on the bloomberg. is blue line on both levels euro-dollar, holding near its lowest level since july. but what this shows is a divergence between asset managers. they are longer euro, white line, and leverage on the other hand

let's dig into where the movers and shakers are with nejra cehic. tarting with the building material industry. the biggest gainer on the stoxx 600 hita record high -- hita a record high. this company has been in a two- year battle against the takeover buy by its french rival. its firstnded it legal victory on sunday, saying they can limit the voting rights of its founding family, which is how they have so far blocked the takeover. the family says it will appeal the judgment. it's falling today, sika rising. wpp up 3.7% at the moment. the shares have risen the most since july after they reported rising third-quarter sales at sporting events, and the u.s. election boosting demand. the u.k. business soffit on brexit anxiety, but still those shares are up. also gaining, i wanted to highlight centamin. a number of miners getting, the best-performing industry. it came out with some numbers that pleased investors, 1.6% higher today. we did see gold rally on friday as well after that news on the reopening of the fbi investigation. guy: thank you. let's talk

here is nejra cehic. jra: nestle cut its full-year forecast. they said revenue will rise out 3.5% on an organic basis but sales growth ame came in below analyst estimates. we will be speaking with their c.e.o. at 10:30 u.k. time. russia's third quarter revenue rose 4.5%. sales broadly in line with estimates. company does not report third quarter earnings. lufftansa shares have soared this morning after it raised its profit forecast. fuel costs fell. intel spiked to overturn a record 1.06 billion euro european antitrust fine has received a boot. the company's appeal should be reviewed by a lower court. the case could have ramifications for a growing list of disputes involving other u.s. tech giants. a final ruling is expected in six months. francine? trey: thank you so much. it is decision day at the e.c.b. anticipation is building that mario draghi will delay any extension of the q.e. program to december. is that justified? thank you so much for coming on. you really have unique insight that is extremely u

nejra cehic. let's talk about breaking news from toyota, exploring a business relationship, a partnership with suzuki. they say would be around research and development, potentially consolidating their auto industries. anna: they are saying as the environment in the industry has been changing drastically, it is important to have partners to respond to the changes and in order to survive and put emphasis on r&d, which they say they are working on individually. it's important to have partners that share the same goal. manus: if you look at this, it's about suzuki, focused on -- if you look at toyota, they have such a broader breadth of product. interesting to watch. anna: stay with bloomberg. we just heard from nejra. we will be speaking to the tv bank ceo -- vtv bank ceo. manus: theresa may has accepted that parliament should be allowed to vote on her plan taking britain out of the european union, however she asked lawmakers to do it in a way that gives her the space to negotiate. anna: the decisio

here's nejra cehic. nejra: it is still lower. that dropped for a fifth consecutive day.e the longest losing streak in more than a month. europe's equity benchmark, every much and the -- industry group editing the work, including banking stocks, losing their spot as the biggest decliners this year. we've had some healthy bank earnings today. in terms of pharmaceuticals, a mixed bag. sanofi shares have risen the most in five years. it raised its earnings forecast. this as soaring sales of a pill offset increasing price pressure on the diabetes business in the u.s. for novo nordisk, the u.s. is its largest market and it has had to slash its long-term target by half. novo nordisk shares have dropped almost 20%. this is my favorite chart. about the talking bond selloff continuing. germany yields have hit the highest since may. bonds have lost almost 3% in october according to the bloomberg barclays global aggregate index. on course for their worst month since may 2013. that label there is actually incorrect. chart,ve on to the final dollar-yen, with broken through 105 on that

much thenk you very nejra cehic. -- thank you very much, never change. -- thank you very much, nejra berg ." tim kainepence and debate each other in virginia tonight, they will be facing very different challenges. megan murphy will be with us to tell us what to expect. how does governor pence shift the focus from his running mate's taxes on to something that is better ground for him? megan: we will have a format that is quite controlled, they plan to spend 10 minutes on each topic. the format will help him. they are trying to push policy. bit.will help him a governor pence is a disciplined performer. he's been very disciplined on the stump for trump. he will talk about domestic policy. he's been quite disciplined on the conservative message, the social policies they would advocate. the format will help him. it will be up to him to stay on message tonight. david: we have a candidate in tim kaine who is on a homeground in virginia -- is his main goal just not to trip over his shoelaces? megan: that is the main thing. they don't want him saying anything that becomes a social media se

i'm nejra cehic. vonnie: i'm vonnie quinn. ng the european close on bloomberg markets. nejra: we will take you from washington to paris and cover stores at a wall street, the u.k., and the middle east. here is what we're watching. shares surged to most in seven years after it announced a deal to buy janus capital. we will hear from the henderson ceo on what the $320 billion money manager will look like. is said totsche bank have planned a thousand job cuts as the ceo heads to the u.s. for a possible settlement talk with the department of justice. the british pound falling back

here's nejra cehic. nejra: looking at gmm, i'm not convinced these have started moving.e expecting a little bit of upside in equity markets at the moment. .2%, droppingdown to its lowest level since march after that ecb meeting. of course we didn't discuss -- markets are interpreting we will see that abrupt end to qe. 4435.t to show this chart, it will be on the bottom of your screen. it's about banks. yesterday we saw the banks close at the best performers on the stoxx 600 intraday, and by the way, a lot of this is to do with the markets anticipating that we are going to see some shift in qe to assets eligible to buy. some people have been talking about, will we see the steepening of the yield curve in europe? in that case will be have seen is lenders rallying four times more than the rest of the market. it was on the longest winning streak in two months and frexit was almost forgotten, but here are three stocks i am looking at, starting with ihg, intercontinental hotels group. the key number here is available rooms. this was a miss for third quarter global comparable,

she spoke exclusively with bloomberg's narrow chain pitch who joins us now -- nejra cehic who joins us last month what we saw with russia's central bank cut its rates from 10.5% to 10% but add that it would keep rates unchanged for the rest of the year. one analyst referred to it as hawkish easing. it has been called a moderately tight policy. what russia has to balance is in its worst recession in two decades. it is also having to fight high inflation. what the central bank is doing is prioritizing central-bank credibility over economic growth which is why they are basically targeting that 4% inflation target by the end of 2017. ask if there was any possibility of any rate cuts to come either this year or next year and she kept her cards close to her chest. she said there was a possibility that they might cut rates next year what it's all data dependent. one thing she said could affect that policy is higher oil prices. take a listen. is a higher oil price it can lead to a stronger ruble. through the foreign exchange that can cause a more rapid decline in inflation expectations. then w

i'm they in london with david gura in new york -- i'm nejra cehic in london.e the medic or niche uts are searching this year. dust but because of m&a activity in their various industries. more of a a bit pickup of etf activity recently in various areas. we talked about the c.t.s. before, but not with regards to m&a activity, necessarily. social media is one of them. >> this one made a name for itself when facebook went public. it is up 41% since march. it held linkedin when microsoft bought it. the big in t ones -- twitter went down recently, but for a wild, that was a big contributor. it has yelp and pandora. uts typically will go out and have bigger weightings for smaller names -- etf's typically will go out and have bigger weightings for smaller names. this thing is volatile. it can go down just as fast as it goes up what an interesting alternative purpose for these cute sounding etf's. if snapchat ends up having his ipo, that could go into an etf like this. are designed to get them within a week or two. it would take a tech etf a year or two. these are ver

nejra: and i am nejra cehic.pproaching $50 a barrel, the latest industry data out in just seconds. julie hyman joins us with the latest. julie: as we await that data, we should note that industry data out last night showed a 7.6 million barrel drawdown in oil and we are seeing a drawdown can firm by the u.s. of nearly 3 million barrels. we did see a building gasoline inventory. a larger than estimated drop in distillate inventories would theoretically be positive for oil prices, so we will be watching to see the reaction. we had this drop in inventories and there is concern that there could potentially be a further supply disruption and that is as we have that hurricane that is bearing down if not on the gulf of mexico, it could affect the florida coast. i am calling up the change in inventories that we are seeing on a relative basis, week over week and how it does compare. let me call that up. you have the most recent weekly drop in inventories all the way to the far end of your screen, so it looks like the 5th

i am nejra cehic. this is bloomberg. francine: if you are wondering why we are all wearing pink, it is for breast cancer awareness in the month of october. joining us is one of the top women in u.k. finance. one of the top people in finance in europe. she is anne richards, ceo of m&g investments, a business with 165 billion pounds under management across mutual funds, fixed income, and real estate. she was with us on the day after the u.k. referendum. brightly called what we have seen play out in the markets over the last two months. at the time, actually, the market was crazy. and it was exactly two months ago, on a friday. and you told me, they will find a floor. you are absolutely right. reallyt has been interesting. you have seen equity markets really take it in stride. it is currency markets where you have seen more turbulence than we expected. i think a lot of people thought that currency, sterling in particular, would be weak if there were a brexit vote. but the extent of the moves we have shown this morning, even

nejra cehic joins us with a closer look at the markets despite the surprise news on u.s. politics. ood morning. what's happening with this reopening of the fbi probe is waiting on the markets. there will be a little bit of resilience in asia -- if you take a look at how the different industry groups are performing you can see a real mix between those that are gaining and those that are declining. commodity producers are really leading the gain, up .5%. on the flipside energy stocks aren't doing too well. i want to show you the msci asia-pacific energy index versus wti crude. you have the energy index in white, crude in blue. both have slipped to one-month ass, down for a second day opec's internal disagreements undermine efforts to reach an agreement on quotas over the weekend. that's having an impact on asian energy stocks. another big thing we are watching is the dollar, the dollar index adding less than .1% after slipping from a seven-month high last session. the dollar is on course for's biggest monthly gain since may. goldman sachs says the fed could have a trade weighted measu

i am nejra cehic. this is bloomberg. fedcine: the beer week and hit at higher inflation -- boe and fed hint at higher inflation that is likely to rise above 2% fueled by a weak pound. alone the currency is down more than 6%. this is governor mark carney says he is prepared to tolerate and overshoot of the inflation target. on friday fed chair janet yellen floated the idea of letting dui -- letting the u.s. economy -- rupert harrison is formally chief of staff to george harrison and joins us for the hour. thank you so much for coming in. says, if we overheat the economy a little bit it is not the end of the world because it would solidify -- solidify the labor market and the markets freak out. are we oversensitive or is there a slight shift in policy? rupert: i think there is the underlying inflation dynamics in the u.s. where we have been saying for some time the u.s. is the only major market where you are beginning to see core inflation creeping up and i think that will continue. the second is the debate about running t

vonnie: nejra cehic is joining us today. we will be getting breaking isn data. and j.p.we have a lot of data before the next fomc meeting. foley what michael he makes. and we will talk brexit. head of ferber is the the biggest business lobby to confederation of british industry and she's not too pleased about the talk of brexit right now. we don't have many other details. she will have a lot to say starting at 10:00. the markets 21 minutes into the session. equities down. , a key number in business and policy makers will be watching. we will be getting the september u.s. jobs report this friday. next.l discuss ♪ go.d: this is bloomberg i'm david westin. this friday we will be getting septembers u.s. job numbers. . mike mckee joins us now. it's interesting because we are expecting a pullback from where we have been. better than the last month. the latest estimate has gone up a few. a lot of people are saying that maybe understating it. some of the other numbers have been coming in better like consumer confidence. the numbers suggest there is more hiring out there. it coul

i am nejra cehic. this is bloomberg. francine: stay with "surveillance," plenty coming up .news from britain's luxury center. how hot is to what? fisher cautions against the high-pressure economy. will goldman sachs continue the streak of bank beats? the wall street titan reports, those month -- numbers and analysis. ♪ francine: this is bloomberg "surveillance." francine lacqua in london. let's look at burberry. this is the british luxury maker that makes trenchcoats. reportedly climbs in its asian unexpected figures from its wholesale unit offset the effect in britain. or people have been coming to the u.k. and buying goods of burberry in the u.k. thanks to brexit, however it is still concerning. get a little bit more luxury into our lives. has fallen around 18% against the dollar since the u.k. voted to leave the e.u. it has fueled an uptick in spending on luxury items. largest one of the luxury departments stores, joining us as michael ward, managing partner at harris. people think of london and they think of harrods. has brexit helped? michael: it has. the first is the d

buffeted over the last number of months by domestic, by oil, and by foreign or now joining us, nejra cehic russia passing economy minister. startede will get straight away. thank you for joining us on bloomberg tv. the plenary session today, you said russia may double its prime -- may double its plans. which copies would be involved? that is one resource of increasing discord. -- of increasing globalization. we also have global growth in front of us. nejra: basically they are allowed to buy the government stake. majors the next stakeholder going into a possible share fail. could wozniacki bank it's -- could wozniacki bank its own shares? i want to ask about any investors in ross meac shares. because of something other -- other financial institutions. nejra co on the oil price, the budget is based on oil at $40 a barrel. where do you forecast oil? any higher than that? there is $20 conservative. -- thea: do you agree with budget that contains swings in the ruble caused by oil fluctuation? when could that be implemented into the budget rule? >> we have to discuss it. we have to discuss the p