that is the view from nomura. it seems the priority is shoring up growth.much for the yuan, , we'veems to be that you heard that from one of our strategist, talking about the yawning, the pboc is saying that expect the yuan to break through 7.1 in the next six months. additional support for the broader economy. beijing, mackenzie in thanks very much for that. garfield reynolds is with us now. how about some opted this -- optimism this month? garfield: it certainly cannot get much worse, you would think. a lot of the bad news has probably been priced in. i think we can expect a tentative start to the month. we have strong risk coming up between payrolls tomorrow at of worry.. which could be a there has to be attempts 8 -- two tatian just hold back until we see what u.s. midterms deliver. time to deploy the old warren buffett there he, be greedy while others are fearful? valuations are extremely attractive, the rewards are there. the question for an investor is, what are the risk, and am i willing to take them on? especially with volatility still elevated. th

with us, bob janjuah of nomura and chris turner of ing.sit your 100.g yen call to is that coupled with a strong dollar as well? chris: we see the dollar staying strong into q1. dollar-yen perhaps can go 115htly higher, maybe up to potentially in that window, u.s. rates having another 20 basis points higher from here. and thet to next summer end of the fed cycle, the market u.s.s to fully appreciate stimulus. as the u.s. economy comes down to earth and sustainable levels of growth that decent nice story nchronized story unwinds, we think it is fair value. tom: does this happen with stability? some of these moves, i have one saying 130 yen, chris turner with strong yen, and the assumption is these are glide cats. -- paths. how glidy are they? bob: i think it is challenging next year for markets and all of us. i think vol is on a sustainable path higher. my view on treasuries reflects yen.'s view on dollar 3.40.ooking to get up to i think that happens in q2. i want to be buying bonds and selling equities. that matches chris's view with dollar

. -- nomura. tough times, volatility will hopefully help his investment bank.u have a loss of ¥11.2 billion. the retail side of the business. the fixed income side. the bank of japan relaxing control, in the summer. asia. yvonne man has more on the markets rallying. >> a lot of earnings coming through. mazda, connecting operating income. that is going to weigh on the stocks tomorrow. earnings taking a hit from the drop in u.s. car sales. broader markets, trading off weaker numbers. the biggest drop in eight months for manufacturing pmi. perhaps this has been priced in when it comes to chinese stocks. you are seeing the likes of the nikkei up 2% and hang seng up 1%. large caps, up 1.3%. kospi, rebounding just slightly. interesting, ending a tricky october. the worst month for global equities in six years. earnings you broke this time yesterday. sony and nintendo, the easy way to explain this, they delivered playstation 4 bank. earnings coming through here the last couple of hours, third quarter, able to squeeze out more growth in asia. petrochina delivering as w

head of fixed income research at emea at nomura. he's going to be joining us on radio.e in at radio . ♪ matt: 30 minutes into the trading day. let's get a check of your top headlines. european stocks bounce back after the worst selloff since february. can today's rally, if you want to call it that, be sustained? is china a currency manipulator? the u.s. treasury department is tussling with. the staff recommends the secretary say no. steve mnuchin could still issue a different ruling. and it's that time again. jpmorgan, citigroup, and wells fargo kick off the earnings season. european banks gain at the open, but less than other sectors. we'll keep an eye on what's going on inside this little bounce for you. welcome to bloomberg markets, the european open. i'm matt miller in berlin alongside alan edwards -- anna edwards in london. anna: let's talk about the individual stocks this morning. this is the upside. this is the day it's about the bigger picture. we've seen selling for two days i know a bounce and equity markets. this is a dutch-based biotech business. one bro

numeral says you're going -- nomura says he will make 115. to saudi arabia. that shifted the global sentiment and the equity market is on fire with q3 results. the dial has shifted, nejra. nejra: that is the first time that happened since march 26. it is the same thing we're seeing in the asian session, gains in the msci asia-pacific index overall, significant gains than 1%. infotech has been leading, gaining as much as 1.3%. --s is about netflix impacting those semiconductors as well. we saw the stoxx 600 close higher. we will see if that happens again today. ftse futures higher by .4%. we cannot forget the fed minutes. the 10 year yield on a three point 17 handle. bloomberg first word news. humphrey in dubai. donald trump says it would be bad if saudi arabia's crown prince knew about what happened to missing journalist jamal khashoggi. ,e expressed skepticism comparing it to your against supreme court justice brett kavanaugh. speaking to fox news, lindsey graham lashed out at mohammad bin salman. >> this guy is a wrecking ball. he had this guy murdered in a

its $280 million that nomura has agreed to play -- pay. this is bloomberg. ♪ guy: i'm guy johnson.onnie quinn. this is bloomberg markets. guy: time for futures in focus. is fluctuating ahead of key inventory tomorrow. let's go to dan deming joining us from cme. which is the bigger factor in the crude market right now that of the inventory data or the story surrounding saudi arabia? >> in the short term the story surrounding saudi arabia. amounts certainly a fair of attention there. it's going to be a dynamic in the marketplace until that gets resolved. when you look at the trends and the inventory numbers the market is still trying to figure out the short-term supply concerns with longer-term demand concerns. i think it's going to be interesting dynamic for the markets to contend with. guy: we saw a rates backing up a few weeks back. that had a profound impact on other asset classes as well. fed minutes are about to come out. we are going to get a sense of where everybody is. aren't the fed minutes this week going to be market moving? i think there's big potential for market moving

jp morgan chase, nomura and jeffries.ee the difference between the rrr and the lending rate. you are also seeing some more optimistic calls that this could be the bottom. from hsbc.ing that i will speak to the ubs analyst and he says it is ok because you are seeing international investors having more access to the chinese market. joe: talk about the slow down. my favorite story of the day. people arriving at the office of a chinese property developer and someone posted a video on twitter of people that own condos and the remaining ones were sold at a discount. -- those owned condos are now worth less. you see people showing up at the office and they are smashing windows. this is a way bigger deal than the stock market in the sense that where people invest. mistaken,if i am not there were also protests in shanghai. this is important. the chinese market and the economy has been fueled in part by this property boom. and the property sector was one bright spot despite all of the other challenges happening in the financial mar

money include the underwriters of softbank's riderless business ipo, among them goldman sachs and nomura. day after news broke we could see listings from on-demand delivery service post made as well as rivals uber and lyft. to discuss, we have elizabeth and selina wang. i want to start with you. first of all, explain this loan that softbank is getting from the ipo forks doing the wireless business. selina: we reported they have received commitments of a $9 billion loan for his vision fund , which as we know, needs more and more capital to fuel enormous events and technology they are making. these are coming from the same banks underwriting the ipo of the wireless unit. it is not entirely unusual for companies to take banks that have worked with them on past deals for ipos. -- reported that masayoshi son was courting banks. besweeten the deal, could $27 billion, we would like for you to loan to another part of the softbank empire. what is unusual in this case is that the loan would not be given to the same part of the business that the banks would be underwriting. it would be given to a d

joining us now from nomura international, global head of g10 fx strategy and eu fixed income research. truck be shorthe and this supply. i think to some extent the momentum is behind the treasury market. the data has been strong in the u.s. and people aren't certain. everything is pointing to a move higher in u.s. yields. derivativecond caught a lot of people by surprise. are we going to see that kind of rate of change continuing? >> that rate of change was very large. we aren't quite sure why it happened the way it did last week. i think that scale is unlikely in the next week or so. you that market is in some kind of regime change right now. at some point we could see something similar happened. guy: billions of dollars are invested in risk parity portfolios. i know i'm simplifying. if equities and bonds fall at the same time, that's a problem for those portfolios. are we going to get forced selling? some evidence of that happening. we have had u.s. holidays. chinese holidays last week. for thathere is scope to happen over the course of this week. there's also the question of mortga

nomura is warning that gains are due to fade, especially in light of how fast qantas traders have beeng -- quant traders have been piling in. that could be the achilles heel for this rally in japan. >> thank you so much for that. let's get more on what we should be watching as australia gets underway wit. oil surging to its highest in about four years, predictions of 100 dollars per barrel. where are we at? >> we are in a situation where the upside is a bit more alluring. we have these supply concerns in venezuela, iran. some noise about tension with russia and how the u.s. would like to avoid rush of becoming too dominant. along with all that, one of the big constants had been the expectation that shale oil in the u.s. would be the supply factor that kept prices under control. however, as you can see, we have a chart coming up from the gtb library -- the oil rigs in the u.s., that's the white line, they have been plateauing. they are not falling crude up. -- following crude up. that's creating concern there won't be enough supply coming out of america, driving up wti, and brent is sta

back of 10% or more 20% are in what some call a bear market let's bring in george goncalves from nomura and larry macdonald, the editor of the bear traps report george, we will start with you rates have been at the epicenter, so i've been told, so everyone has been told about the market turmoil we've been seeing as we see rate stories play out, is it fair to say they will continue to be a driver of the volatility that we are seeing? >> without a doubt how fast it unravelled was impressive last week and earlier in the month good news, good data, it was good for the equity market and the bond market. rising yields for the right reasons. a big snap higher, and that spooked the markets. the 3.25 level is a critical level for markets to digest. >> as we talk about the movements in the markets, we have seen a massive selloff and one that looks like it will continue today does it feel like to you that there is a bottom in sight or is this the beginning of something much deeper? >> the correlation between stocks and bonds has been negative for the last decade this year on a monthly basis we're

. ♪ >>> breaking news on an analyst call nomura, 13% up side. literally their terms, not sure if this is tactical or a longer lasting call but does believe intel will be the only semiconductor company that boosts guidance either this month or next month. the analysts admitting i don't know where this is going but i'm upgrading the stock to a buy the stock is reacting. intel up 2% in the premarket >>> let's go macro and bring in our friend, larry mcdonald head of macro bear traps report editor with all of these titles there's no time left for the interview thanks for joining us. i'm kidding. moody's downgraded italy that's the headline but they did not cut italy to junk so the market likes it. is that the right response >> well, you nailed the expectations game. the bar was very low heading in and the one thing you have to remember each year every single year wall street sell side comes into a new year with a pitch last year it was the reflation trade and by the third, fourth quarter people had given up on higher yields, bonds had rallied. steel

nomura has posted a rare loss as trading profits and brokerage commissions fell.s biggest brokerage was ¥11.2 billion. making the second quarter of red ink in the past seven years. the firm lost money overseas, underscoring their struggle to sustain profitability outside of japan. that is your bloomberg business flash. that.thanks very much for we are minutes away from the opening of stock trading on this last day in october. happy halloween. look at whichke a stocks you need to keep an eye on including santander, l'oreal, and airbus. this is bloomberg. ♪ matt: six minutes away from the open of stock trading. let's get your stocks to watch. we're looking at santander. from our equity see them, we are covering l'oreal. dani burger is focusing on airbus. charlie, let's start with you. what's the news on santander? >> this is a solid performance from santander with profits of driven mainly by spain and recoveries in the u.k.. the big surprise was how much capital they managed to build up. this has been a source of concern for investors throughout the year. they have

according to nomura, they are likely to take their foot off the gas pedal and not be supportive for japanesee outlook might be getting a bit more grim. nejra: alex, take us through what you've got. alex: they were taking through oil prices. we've got oman crude on the top white line. high,barrel in multiyear closing at $87 a barrel. brent crude not quite rallying as much. oman is a replacement for iranian barrels. u.s. sanctions under president trump pushing crude higher. we are seeing oman squeezed at the margin there as consumers worry about a lack of crude. on the other side of things, vying is coming from china. really strong demand coming from the east. those two factors could spell higher brent crude prices going forward. the future for companies like right there could be higher oil prices. not great news for them. nejra: decision time. it's a really tough one. i love both your charts. this is really by a whisker, but i'm going to go for alex because everybody is talking about where oil goes next. big conversation in the market. thank you very much. you can see all the charts on the bl

nomura, shene from 4.3 off her entire stake of million samsung shares in her global equity fund.the cycle is no longer accelerating, and it is entering a moderate growth phase. she is bullish long-term for the semiconductor cycle. this is a cyclical downturn she is projecting with others and she has for now liquidated shares in samsung. , thank youhen engle so much for that. we have another alert crossing the bloomberg. we can expect toshiba tempe record losses in the full-year results. toshiba saying the memory corporation has requested indemnification for $42 million in losses. this is related to the sale of the memory chip business stake to a consortium. they say the loss of $42 million was not really included in their full year 2018 consolidated business results that were forecast back in may. the company will try to quickly announce any items that require further disclosure. this could be that they pay a record loss in their full year results. let's turn now to a another company -- to another company, tesla. seeing more volatility. elon musk has returned to twitter with a st

anchors, no more is in the mix -- nomura the mix.r a look at banks is brooke sutherland, talk about investment banking. what was your big takeaway so far? >> one thing i thought was interesting was investment banking schemes were down for different reasons. citigroup talked about a drop in underwriting fees, which is interesting. one thing we have been looking for is the and and a activity, i looked up the numbers before i came out here, $205 trillion , that's on track to be 2015 which was a huge deal for megadeals. we are on pace to be better than 2006. but a lot of these deals are not getting done, when they are not getting done because of regulatory push back the investment banks do not get paid or they have to wait collect fees. the question is is this a timing issue? will we see the fees catch up or are we starting to see the beginnings of a slowdown where companies are concerned about the regulatory environment and whether or not they should push ahead? jason: we will certainly hear more from jamie dimon the other big bank ceos

another one that is doing well in japan is nomura, they are up quite a bit today after they took $.5lve a claim that they were misleading investors in a marketing campaign during the global financial crisis. looking at one stock that is down, bhp billiton after reporting a cut in copper production forecast, they are that announcement about production and copper. haidi: thank you so much. notified house has congress they will start trade negotiations with japan, the eu and u.k. before entering talks. jodi is in hong kong. it is part of the narrative that they are clearing the decks to progress some of the other talks. the trade fight with china continues with no breakthrough insight. the trump administration is moving forward. what are we expecting? jodi: this is a procedural announcement they have to make. the trump administration said they will in three months start negotiations with japan, the eu, and the u.k. on trade agreements. it's interesting because it notes they want to move forward on other trade tasks, even as there are no talks scheduled with china on the trade dispute. s

nomura has posted a rare loss.gest brokerage was a 11 two point billion yen ending in september, marking the second quarter of red ink. the firm lost money overseas, underscoring the struggle to sustain profitability outside japan. financierpists and michael milken is this week's guest on the david rubenstein show. conversation covers his background, the bond industry, cancer diagnoses and treatment and philanthropy. you can see the full interview on the david rubenstein show at 9:00 p.m. new york time on wednesday. that is short bloomberg business flash. tom: thanks so much. seven yuanked about and the dynamics of china. we have headlines from the politburo of china. say timely steps are needed to counter a slowdown. they say changes are happening in economic conditions. they said they should "pay high attention to economic pressures." the g20 meeting of presidents trump and xi in november. right now we consider american politics. kevin cirilli with us. thist to bring up acclaimed harvard professor. wellat essay p

softbank has picked banks including goldman sachs and nomura as lead underwriters for what is likelytbank's wireless business plans to sell $27 billion of shares. the mobile operator begins marketing the sale next month. shares will be listed on the tokyo stock exchange december 19. hna is in talks to sell its airport cargo handling company to brookfield. the company swissport could fetch more than $3 billion. hna is selling off assets after racking up billions in debt from a global buying spree. that is the business flash. tom: thanks. the financial times noticing there is a new project. labs,l be advising spring this is something no one is surprised by. he tells the financial times it is an obvious place to take an analog industry and digitize it. talk mr. diamond will about that today on the jpmorgan call. cohn looking at blockchain. trying of a year has it been? has it been a good year or a struggle? >> frustrating, frustrating. this has not been a year for fundamental analysis. and itnomy is good should be driving earnings which have been good this year. the market pe is going t

james on facebook rights nomura attack ads.ll advertisements focused on the candidates, what their goals would be if they got elected. we will be talking more about political ads in our next hour this morning, talking about the ads that have been -- gone viral. getting your thoughts on what you think are good and bad campaign ads. in this first hour, asking for your suggestions on ways to make the political climate less hostile. ray in north carolina, your next. ridiculous. is i did not know there were so many racists in this country. this is ridiculous. i tell you the truth. this man is sick and you have all these sick people. i don't understand it. can't you see what this man is doing? he is going to destroy the united states and you are going along with it. my goodness. just like the lady who spoke so eloquently before the two gentlemans. she hit it dead on the nose. this is ridiculous. he spews out hate, hate, hate daily just like he is talking about the caravan. eastern'sand middle in the caravan. that that's a lie -- know

news alert nomura upgrading intel to buy.is the analyst who made that call romit shah he is here this morning. tell us what made you push this thing from a neutral to a buy. >> yeah, if you look at the stock since april, it's pulled back over 20%. the multiple's gone from 14.5 times to close to 10 times that contraction has been almost entirely due to manufacturing delays as well as, you know, the resignation of their ceo >> right >> both those things are going to get resolved soon >> is this a call intel specific or are you saying something larger about the sector? >> no. it's intel specific. i think the sector overall is under some pressure. you know, there isn't a company in our coverage that we think will be raising estimates in october or november, but i think intel is perhaps, you know, the only exception >> what's going to be the tipping point for this to get to $50? >> i think it's a combination of things i think you'll see them come out on thursday and raise estimates. i think that you'll see them talk more positivel