chancellor philip hammond. anna: looking to the philip hammond interview for any information about the eu and u.k. brexit conversation. any details. we will have retail pmi data from european countries, followed by the overall eurozone reading at 9:10 london time. manus: 12:30, the ecb will publish the account of monetary policy meeting account in december. and we get jobless claims. anna: out of the u.s., had a friday's payroll. hitting the right note, the billionaire activist says samsung to be split into two companies. this shares rally. we get the latest mac. manus: all ok and the boj? hawkish fed commentary give the central banks something to cheer, as the yen weakens? how low can ago? anna: a rollback in sinless is on the cards as norway release of the 2017 budget. we look ahead to the release. this is bloomberg. ♪ manus: it is six: 18, a glorious day in hong kong. looking over the harbor, 1:18 in the afternoon. that is up one half of 1%. equities in asia are generally stronger, get a nice numbers from go

process andwo-year we now know the economy will take center stage and we will hear from philip hammondo will be addressing delegates. what can hammond say today to help you have more confidence in the u.k. story? what will it look like after this negotiation? >> the way we are looking at a slow-motion crash. the uncertainty leads to a lack the economyt and will keep you going. we have a wonderful line. in terms of the structurally ?lawed ifit needs to be lower and market,not part of the it will continue to support this questions with greata may saying it is she is coming towards the and the debate is a complex issue. the debating is part of the agenda. there is the impact on u.k. assets. eq for joining us today. it for countdown. caroline is covering the deutsche bank story in on the move is next. this is bloomberg. >> welcome to monday morning. welcome to "on the move." i am guy johnson. caroline hyde is hard at work in berlin, joining the team. what are we watching? the focus is in german. bank faces fresh charges in italy. can john cryan do a deal with the doj in washington this wee

chancellor philip hammond will meet with wall street executives today. he will tell he wants a brexit exit.hat gives a good the trip comes against -- among mounting concerns that moving the eu will prompt this is to move jobs out of the u.k. fbi has arrested a contractor assigned to the national security agency for allegedly stealing classified documents. harold martin was employed through booz allen hamilton. it also employed edward snowden who fled the u.s. in 2013 after releasing thousands of an essay files -- of an essay files. hurricane matthew is headed for the u.s. southeast where it is expected to better the coastline and threaten electricity supplies to more than one million people. losses are seen as high as $15 billion. matthew has already battered cuba, haiti and the bahamas as a category three life threatening storm which the u.s. has not seen for at least a decade. samsung electronics shares hit a fresh high in korea after calls for the company to restructure and modernize. he wants the south korean firm to separate into an operating compan

chancellor philip hammond addressing delegates and colleagues.he conservative party conference is in germany -- in birmingham. walk us through the news about the timing and what we are going to get in terms of the structure of the crisis that is going to take us toward the brexit. anna: we heard a lot about the timing yesterday. in morning. a lot about timing. march 17 is the latest date at which the u.k. will trigger article 50 of the lisbon treaty. that sets us up to leave the eu by march 2019 at the latest. we heard a lot about article 50 yesterday and about the fact that it will actually be triggered, which maybe gives you a sense of some of the conversations that maybe were happening behind-the-scenes amidst the far right of the party in the run-up to the conference. -- brexitns breakfast and we are going to make a success of it. we heard that from theresa may. this is what she told us on timing. may: there will be no delays in invoking article 50. we will invoke it when we are ready, and we will be ready soon. we will invoke article 50 no l

chancellor of the executor philip hammond is in new york today. he's on a mission to reassure wall street leaders brexit will force them to shift operations away from london. hammonds first trip to the u.s. since replacing george osborne in july. he sat down with john micklethwait. >> the night before you got your bankers you addressed -- you would take the cause. now we have a situation over the past week where you see all this talk of hard brexit come sterling has gone down, people don't see the city is something -- that it looks like the government will go and defend. is that fair? you have a lot of worried financiers in this room. what would you say to them? >> i don't think it is fair. not the correct analysis of what has happened this week, john. we don't recognize this distinction between heart brexit and software exit. we want to get the right -- and soft briggs it. we want to get the right brexit. this has to be about mutual advantage. it has to be about a mutually beneficial solution. is financial services sector a very important part of

we will see where philip hammond has gone. bloomberg. >> we can make much more shaping globalization. if we keep on the sidelines and see -- and leave the field to others. ♪ anna: welcome back to "the pulse." i am anna edwards. here is markus karlsson. >> easyjet's annual profit has fallen for the first time since 2009 as the state of terror demand.hurt the decline of the pound following britain's vote to quit the european union inflated its going currency costs. shares have fallen to a three-year low. twitter plunged in extended that googlereports doesn't have plans to make a bid. it also said that apple is unlikely to be interested. said to begoogle was working with a financial advisor on a potential offer. suisse has agreed to pay $19 million -- you do not adequately disclose -- to reclassify assets and his private bank. it said more than $1 billion of a private wealth client assets were relabeled in 2011 as being manus by the bank which generally generate higher fees. --mer ceo agreed to pay former ceo agreed to pay a pena

they know philip hammond, too. u.s. foreign secretary.is a government which people don't really know where it stands on brexit. people just don't know. with carney they know where they are. if he says he goes obviously there might be a slight reaction to that. good to see you as we await mark carney's decision. lots to look forward to. still a few months to go. vonnie: coming up, the long-awaited heathrow expansion clears a major hurdle, but it's not a done deal. the ceo joins next. this is bloomberg. ♪ barton withrk vonnie quinn. this is the european close on bloomberg markets. time for the bloomberg business flash. a federal judge in san francisco has approved a full wagons settlement in the diesel and emissions scandal. that's likely to be the biggest portion of the civil liability worldwide. they can start buying back cars in the u.s.. that's expected to start next month. will's monte paschi bank close 500 branches. it will also sell units and bad debt. it says it has already received a head of half $1 million. profits fell for the se

britain's finance minister philip hammond has downplayed the flash crash as technical. is struggling to recover against the dollar after reaching its lowest level since 1985. >> is a two-minute mystery. that saw the pound hit a one-year low. error.ame human a so-called fat finger accidental transaction or simple algorithms gone rogue. others see the flash crash as a symptom of the greater fear surrounding an eventual exit triggered by tough statements made by the french president on negotiations with the u k. >> the u k has decided in favor of brexit. i believe even a hard -- i believe in a hard brexit. we must go through the willingness to leave the eu, we must have this firm. britain: he added that needed to be a price for leaving. analysts say such comments alone could not cause a crash of this magnitude. they could have set off a snowball effect exacerbated by poor liquidity. the us is a negative for k,. that is why the pound has been reacting to it. it is a phenomenon in itself. thingsnow reacting to which are highly tenuous. barely formed news reports. meanwhile,

philip hammond was on wall street on charm offensive yesterday visiting top u.s. banks to tell them that london will remain a financial hub despite the brexit vote. take a listen. >> our economy is fundamentally strong, but we're going into a period of uncertainty because of the brexit vote. our employment figures have been revised upwards. we'll probably be the highest growing g-7 economy this year, next year will be a slightly more turbulent period. the markets will set the exchange rate right for the economy, but we're confident once people look at the fundamentals and process things will settle down. >> james bardy at bank of america and merrill lynch just joined us. james what did you think when you woke up to the news? you want to take a guess on what's behind the plunge in sterling? >> these things often happen in asian trading hours, all you need is a comment like the one that came out from hollande, then you get some automated trades on the become of it, you get a gap lower. it's not that unusual in fx markets and asian trading. we're getting lots of ques

chancellor philip hammond speaking to bloomberg's editor in chief john mickelthwait in washington.k about some of those problems and opportunities for the u.k. as it seeks a new future out of the european union. with me as simon wells, chief european economist at hsbc and jane foley. simon, i want to start with you because you have been writing for a while about this idea of hard versus soft brexit. what has changed for you over the past couple of we -- over the past week? simon: we first wrote about hard and soft brexit in 2015 before there had been a general election. union wouldustoms be a pretty hard exit back then and now liam fox is talking about no customs union at all. i think what has changed is at least now, it looks like we are on the cards for a harder exit. the debate up to now has centered a lot around paris, and the work we have done. of course paris is important -- s isorists -- tariff important. we have identified thousands of these things. those could really slow trade and they could be equivalent on many goods to a tariff of 10% to 15% so it is an enormous issue

chancellor philip hammond is in the u.s.l open for business. our editor in chief sits down with hammond this hour. nejra: another shoe drops at deutsche bank. an audit shows the bankhead mismarked as many as 37 deals including colluding with -- colluding to conceal the italian vendors losses. vonnie: portugal secretary of state for treasury joins us this hour.

philip hammond gave some very sensible messages. have is there is conflicting objectives. they want to control immigration. they don't want european courts to have jurisdiction in the u.k.. have marketnt to access. francine: i want to show rupert your chart. all of those algorithms, you have traders questioning whether pound dollar is a possibility. tom: let's bring up the three-day sterling chart. we will try to bring that up. i look at -- there it is. this was reported by bloomberg news. all ofrecent rollover, this. into your day job. what do you do with equities and commodities? what does it mean for global stock markets. the ftse currency adjusted or to the american stock market at this point? apert: i think the u.k. is brexit issue. sterling is a big focus. the u.k. stock market is very important. the flash crash has something with liquidity. sterling is on a downward path and that is because markets are waking up to the fact that we are heading for a hard landing. further currency depreciation? rupert: there is further to go.

we speak to fil philip hammond later today. circus, as the activist investor calls for the company to restructure.

tell us. >> with philip hammond. "squawk box" is next.he highly advanced audi a4, with available virtual cockpit. >>> good morning. hurricane warning. nearly 2 million people urged to evacuate the coast in southeastern united states as hurricane matthew slams into the bahamas. we'll have a live update on the storm's track and preparations in florida. >>> twitter shares plummeting overnight on reports that the biggest rumored bidders are not going to bid. >>> and a samsung galaxy note 7 smartphone catches fire on a plane. but this one had already been replaced by the company and was supposed to be safe. it's thursday october 6, 2016, "squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box." >>> good morning. welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen, and becky is off today. hasn't had the baby yesterday. hasn't had the baby, but she is not here. i don't know if we'll see her before the big day. >> no. >> probably not. melissa lee is here. >> in t

scarlet: one of the prices -- philip hammond says it may not be up for grabs after all. d spoke with john mikel's weight. -- with john. scarlet: most interest rate swaps clearing click play for real quick. largestld's retailer will spend more money to renovated stores and increase its e-commerce capabilities. walmart had better-than-expected growth at its u.s. stores this year. but the chain wants to improve its online operation so it can better compete with amazon.com. disney says that attendance at its new amusement park in shanghai has exceeded its expectations. that comes after a media report cited the park was attracting about half the crowds analysts had anticipated. the report said that disney guests complained about high prices and long waits for some rights. the role biggest oil company will sell shares in all of its operations, not just in its refining and distribution units. he told bloomberg the company will soon announce a list of banks and consult advising on the ipo. saudi arabia wants aramco to go public. could the in the trillions of dollars. time now for

philip hammond will be speaking. he has been speaking a little bit this morning.ct him to step away from some of his goals of his predecessor. been called for an urgent need for answers for business pit we have to wait a little longer to get those. the chancellor about two years of us -- of uncertainty at least. we will see if we get any clues today. we might have to wait longer. francine: let's not wait longer. -- did we getike any clues on how hard or soft brexit will be? anna: hard or soft. saying it is not the way she sees things. "a phrase they are using full dichotomy." they don'ty much -- recognize the trade-off between the two. theresa may said yesterday we will do what sovereign nations do. in terms of how much priority they're giving toward the immigration side, here is david davis, the minister in charge of exiting the european union. >> the clear message from the referendum is this, we must control immigration. did you hear mr. corbyn last week telling us there is no need for any limit on numbers? have you ever heard a political party so out of touch w

the british chancellor philip hammond says it may not be up for grabs after all. spoke with bloomberg editor-in-chief. meit is by no means clear to that the rules of the single market, even after britain has left, with permit the ecb to require euro denominated instruments to be cleared inside the eurozone. >> most interest-rate swap trading and clearing and euros takes place in the u.k. doesn'ts chancellor seem -- to create a special trade relationship once it leaves the eu. the british government has pledged to curb immigration from leave thees that may eu to impose trade limits on the u.k.. in poland, lawmakers have rejected a total ban on abortion. protestosed -- led to a three days ago. legislation would have set jail terms for women who entered their pregnancies -- ended their pregnancies prematurely. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i'm courtney donohoe. the minutes are out from the ecb's meeting last month and the bank says it will do what's needed to meet inflation goals. a key point here

yesterday we heard philip hammond talking about how there could be challenges ahead.g up on that line. --ic the new u.k. chancellor manus: the new u.k. chaucer has shelved the -- a carefully targeted investment to offset the economic shock that is forecast because of brexit. >> when times change, we must change. we will no longer target a surplus at the end of this parliament. make no mistake, the task of fiscal consolidation must continue. anna: still with us, michael bell from j.p. morgan asset management. talk us through how your isitude through u.k. abscess -- how hard or soft it should be? michael: the news we had over the weekend just reinforces our view that u.k. assets look attractive but they look attractive only if you are focusing on the past. -- focusing on the charts. if you are domestic league long, versus internationally long in the dollar then you got a little more to worry about. investor, --aller we think the pound is likely to remain weak further downside. the main difference as we view it is within the u.k. stock market, 72 percent of revenues come

will have a special interview with philip hammond at 9:15 a.m. eastern, 2:15 p.m.ndard london time. vonnie: still ahead, the rise of negative yield debt. we will explore global bond markets. this is bloomberg. ♪ you are watching "bloomberg markets." i am vonnie quinn in new york. nejra: from london, i am a wrench a rich -- nejra. the worldwide surge in negative yielding bonds regain strength yesterday. ofjust $11.6 trillion as september 30. that is up more than 6.1% from a month earlier and here to discuss is paul thompson, the managing editor for bloomberg news. let's start with japan. how important is the doj's policy? monetary >> boj has been a crucial factor in pushing bond yields low and keeping them low. the japanese bonds market is being ground zero or ground subzero for negative yielding bonds. that is where the biggest element is at the moment, but because japanese investors want to get their hands on higher yields that they keep pouring out into the european debt markets and the u.s. treasury market as well. the latest development that we the had from the

philip hammond has a tough job as the head of the u.k. treasury. set a fiscal policy that can soften economic shocks as the country moves ahead with its exit from the european union. hammond visited wall street to reassure u.s. banks of britain's strength and discussing the challenges he faces with an withsive interview editor-in-chief john micklethwaite. john: now we have a situation over the past week. you see the talk of hard brexit. sterling has gone down. people do not see the city -- it looks like the government will go. is that fair? you have many worried watching on television. what would you say? philip: i don't think it is fair. it's not a correct analysis of what has happened this week. first of all, we don't recognize the distinction between hard brexit and soft brexit. we want the one that works for britain and for the european union. it has to be about mutual advantage. it has to be about a mutually beneficial absolution. the financial services sector is a very important part of the u.k. the largest single value contributing sector. we

philip hammond has a tough job as head of the u.k. treasury. t a fiscal policy that can soften economic shocks as the country moves ahead with its exit from the european union. hammond visited wall street this week to reassure u.s. banks about britain's strength, and discussed challenges he faces in an exclusive and new -- interview. >> now we have a situation over the past week or you have seen all this talk of hard brexit, sterling has gone down, people don't see the city is something it looks like the government will defend. is that fair? you have a lot of worried financiers in this room, and probably many watching us on television. what would you say? >> i don't think it is fair. it is not the correct analysis of what has happened this week, john. first of all, we don't recognize the distinction between hard and soft brexit. we want to get the right brexit for britain, the one that works for britain and the european union. it has to be about mutual advantage. it has to be about a mutually beneficial solution, and the financial services secto

tomorrow, uk chancellor philip hammond will join bloomberg for a conversation on the british economyt -- how his government will approach the applications for trade markets and economies in europe and beyond. that is at 9:15 a.m. in new york. ♪ tom: good morning, everyone. a gorgeous hong kong. what a shot. thanks to all of our technical team for great shots around the world. michael pond of barclays in our studios in new york. joining us from london, stephen major of hsbc. congratulations on your continued call for lower rates. you stunned this morning with lower for longer, 1.35% until the end of 2017. that is an outlier call. what does the street get wrong? stephen: it would be the fifth or sixth year in a row when the street has been calling it the wrong way. history is no guide to the future, but i think we have got to understand that this structural backdrop to markets is getting worse. it is not getting better. i look at the charts, and everyone has got the same charts of the last 30 years. yields have been falling. this moved to lower real natural rates is not a -- not a new

>> philip hammond said he would welcome him staying, and that is a positive sign. john, thank you taking the time to join us. caroline: indeed. coming up, we will be talking .boc, fueling depreciation talk we are live in hong kong for the details next. this is bloomberg. ♪ caroline: welcome back to the open. we want to talk about china. the central bank's has weakend the yuan's reference read. this is the longest run of cuts in inine months. us editor is joining from hong kong. is this huge policy change? are the hawkish voices proving correct? never too fars away. that said, the expectation that the yuan will decline over the next couple months is undeniable. the federal reserve is set to in december. however, i would not be extremely hawkish on the currency, extremely bearish on doesuan, because the pboc not seem to have let control go completely. last week when china was on holiday, the u.s. dollar index was about 1%. however, when china reopened on monday, the pboc weakened the yuan by about 3.0%. it was about wanting to control the depreciation. yes, the yuan

philip hammond says that will be no splurge. larry is still with me.never too far from brexit foor fiscal stimulus. when you look at the world, is piecext big chests fiscal expenditure? is that what we need in the u.k.? >> it might be what we need, but i am not sure we will get it. the fiscal position is not strong enough to have a big fiscal boost. the numbers will be small and targeted economically and politically. in europe, there is not much momentum behind the infrastructure bandwagon. and in the u.s., assuming hillary clinton wins, she will face some opposition to such an expansion from the republican house of representatives. this is what the commons have been looking for for a long time, but it is not the month of political stars are aligned for a big fiscal expansion. --us: when we look at thee when we look at the bond market, this is two year u.k. versus two year in the united states of america. we were looking at the bond markets yesterday. but when you look at this kind of divergence, so to speak, after what you have heard from carney, what

anna: philip hammond did not want to comment too directly. what is your call? how weak can the pound get, and during what time frame? 1.25, thatd up at has been a hit overnight. at the same time, going back to what philip hammond said, will there be a political -- going back to 1992, and what happened afterwards. when will this become unpopular, it will have to come down to inflation at the end of the day. manus: one of the charts we were looking at was the ftse 100 the 350, a0 and the ftse trifecta of records we have not 1990's.ce the we don't know this is in a new channel, but it has changed the conversation, hasn't it? >> the ftse 100, a lot of people just say it is a commodity index. however, if you go further down gets down toet down tit the unique than amex. -- it gets down to the unique dynamics. manus: it has risen by 24 basis points, the highest since 2014. >> that is anticipating it will be passed on. if the u.k. is an open economy, like in sweden and switzerland, we can see manufacturers that don't want to pass that on to consumers. however, it is no

the british finance minister philip hammond admitted a period of uncertainty lies ahead for the british economy. finance minister hammond: we have to expect a period when confidence will go up and down perhaps on a bit of a rollercoaster until we get to a final agreement with businesses and consumers understanding what the future relationship between britain and the european union will be. reporter: if britain triggers divorce proceedings next march the country is set to leave the e.u. by early 2019. europe's second largest economy has two years of painful horse trading ahead. reporter: germany's biggest lender deutsche bank is trying to get a massive -- mortgage backed securities in the run up to the financial crisis. the chief executive will be in washington this week to try to negotiate a deal. the lender would likely have to raise fresh capital to pay the full penalty and even struggle to stay afloat. last week speculation on a deal to reduce the fine by more than half sent deutsche shares soaring. let's check in with our man on wall street now. jose, it seems hopes are fading for a

philip hammond sees communications and transport as key to the economy. >> raising our productivity, rebalancing our economy, rebuilding our infrastructure. and ensuring that everyone can contribute to and benefit from the growth that follows. sailing. t be plain the u.k.'s decision to leave the uropean union entrusted fiscal uncertainty. they worry the government is leaning toward a hard brexit that would leave britain in favor of strict controls on migration. >> this government will fight for the best possible deal for british business and british workers. >> more than three months have passed since the u.k. surprised the world by voting to leave the e.u. since then, economists have been bracing for aftershocks and future shocks. immediate drops on the value of the pound drew fierce of an economic crisis and the government has oned of further turbulence to come. >> let's check in on the stock markets. stock markets don't really like uncertainty. the market closing there up 1.2%. the paris just above the flat line. wall street is trading downwards this hour. the u.s. released weak e

philip hammond still has a seat at the table.t other business do these ministers have to talk about? is it about brexit? >> of course it is about bragg -- brexit. every minister has something to say that i spe with. the finance ministers including the french one has been calling here in luxembourg for the u.k. tone onnt to soften its immigration if they want to maintain the same access to the eu single market. up until now it seems to me hard brexit approach has been taken more on the other side of the channel. our willingness best it has been decided that brexit will happen. the date has been fixed. the negotiations need to be as cooperative as possible. no remaining eu countries will give way on those principles. >> the u.k. gensler -- chancellor will be here today will occur.it all over the brexit story today in luxembourg. let us talk about samson. the company has asked carriers to stop sales. manus: it has instructed users of the original and the replacement devices to power down and store them until further notice as it inv

the chancellor of the exchequer, philip hammond, is appearing with a headline. markets are relaxed about the fiscal approach. we got the statement at the end of november. gilt yields, rising yields with a fallen sterling. falls would be hugely damaging to the eu. it is clear we are not abandoning our fiscal discipline. sterling may have an effect of stimulating exports. we were just saying, will remain responsible for the formulation of monetary policy. you can watch on our bloomberg live. we will continue to bring you any headlines that we warrant are worth mentioning. this is bloomberg. >> from bloomberg's world headquarters in midtown manhattan, i am matt miller. mark: i am mark barton, counting you down to the close. inside the european banking sector today, the executive board member. he is responsible for banking and markets. in an exclusive interview on bloomberg surveillance, he discussed the state of the industry. the capital8, adequacy and the capital positions of the european bank has much been strengthened. don't forget that we have come all the way

chancellor philip hammond speaking with bloomberg editor-in-chief john mcswain here at bloomberg.just under 30 minutes, and while there has been movement with other asset classes like gold, oil, treasuries, and currencies, you did not see a lot today on the major equity averages, and you still do not see very much. the nasdaq currently down .1%. abigail doolittle is down at the market decide. the major averages not moving much but under the hood there has been more activity. abigail: indeed. it is interesting. we have the nasdaq going down into the close ever so slightly, but there has been some intra--- intraday choppy volatility to the downside. at one point, the composite index was down, so a bit of a recovery. unable to pull up with the s&p has done, turning green. one thing that makes this interesting that we talked about earlier was the fact the big drag this morning, health care, is still the big drag this money. the nasdaq bio indexes near session lows, down 2.3%. we have seen a recovery in some of the mega cap tech names, and the bright spot, the big boost all day has bee

but there are calls about various characters, like philip hammond, the chancellor, which makes me worriedn a football chairman says that the management is doing well, that's when you know you are in trouble. -- john: what's happening as we have seen the market send a clear message of concern over where brexit is going. mother is no sign of a u-turn on , you have seen a circling of the wagons to a certain extent where everyone is pretending they are good friends and supporting each other. theresa may made headlines when she called into question the bank of england low interest rate policies. sort of stepping over a line that british prime minister's have been reluctant to step over for the past 20 years. today you saw a spokesman say that the prime minister has massive conference in the bank of england. likewise, there are no real divisions between downing street and the chancellor the exchequer. even if the last 10 days haven't been fantastic the government, they are trying somehow to win it. and this uncertainty is causing many doubts in the .ommunity we did a wonderful piece -- haven't

how much could and should philip hammond do when he reveals his autumn budget?veryone's talking about fiscal policy. if you look at the situation we're in at the moment, we might be on the titanic with no lifeboats. qe has run its course. we've gone down to zero interest rates or near to and global debt is 30% to 40% higher than it was before the last financial crisis. we need fiscal policy because the ammunition is running out. we need a very solid plan. we have to realize that we are adding more debt to our national mightt some stage, but we get some benefits. this will all take time. when you implement those fiscal policy measures, it takes time. there's a time lag. we look for quick wins. we might be in a tricky situation in the short term. we need this fiscal policy to have some impact pretty quickly. mark: nicolas lockhart, john ideas.ellow at lse up next, iceland goes to the polls. it is expected to vote in a radical coalition spearheaded by the pirate party. we are live on the ground next. this is bloomberg. ♪ mark: i'm mark barton in london. pirate part

there will also be others who are arguing against that so i suspect philip hammond, look at his speech. i think he would not be saying that. britain are seeing in at the moment is the irresistible force of people who say we must end freedom of movement and stop immigration. the immovable object, our economy relies on do we have financial passporting, a report of the single market. that is a tension something has got to give an a lot of people will scream betrayal at the end of it. 11,cine: there is number number 10, and the three brexiteers. how does that play out? craig: i think there is a tension among people who believe we can become a country like singapore, and others who are saying europe is our biggest market, we have probably no better deal. francine: but this is what you voted for. i think the reality of what theresa may is doing, she is trying to hold together something that is very difficult. people who want a complete end to free movement and people who say we must have the best deal possible, and that is where politics will be fascinating. it is really interesting having w

philip hammond in front of the treasury select committee and we .ave teresa somearkets are unwinding of the positions we saw yesterday. that crude movie is interesting on a day when saudi goes to market with this bond issue. and issues its first international bond. here is the bloomberg first word news. holdings fell to the lowest level since november 2012. this is the world's second-longest -- largest economy. had $1.119. billion. $33 that is the biggest drop since twice 13 according to u.s. treasury department data. and previous figures by bloomberg. revealrabia is said to how much it will pay on its bond sales. the kingdom is selling dollar denominated bonds in 5, 10, and 30 year maturities. they say the lawns will be offered at a higher rate as well as regional offering from qatar. and ans dipping in effort to cut a $97 billion budget shortfall. suffering deepening losses in two of his hands funds. the positive turnaround in performance -- a performance may be out of reach for the billionaire. 18%, putting 8% -- the losses to 18.5% according to people with knowledge of the matter

philip hammond's statement is just a few weeks after the bank of england's decision. i think if i was sitting on that committee we would say, well, we can wait a month, see how the data performance for another month. then maybe we can cut. there talking about 15 basis points off interest rates. i think they can easily wait another month. sitting at 122 even. if gdp figures do not move it, what will the next be? >> we have a few over the next few months. we have first off the bank of england on the third of november, then the statement on the 23rd. i think in the near term, the court case about article 50 triggering whether there needs to be a parliamentary vote or not. if the government loses that, i think it would be a pretty big deal. vonnie: the two-year is at 22 basis points. the 10 year is flattening as well. do you see it flattening as well? a over the past few weeks i'm -- few weeks, premium risk getting priced in. orther that is to sterling others. i think you see throughout the day, the market hanging on these political statements we are hearing. you saw it e

philip hammond confirmed he is abandoning one of george osborne's goals.times change, we must change with them, so we will no longer target a surplus at the end of this parliament. mistake, the task of fiscal consolidation must continue. courtney: the one join john mikel swathed for a conversation on the british economy after brexit thursday 9:00 eastern , and bloomberg.com simulcast on radio. mccoyh president mariano may finally take a second term. sanchez has been blocking his attempt to form a new government. in hungary, the prime minister has suffered a setback in his attempt to reject the eu migration policy. turned out in a weekend referendum to make his proposal binding. they needed half of the electorate to cast a ballot. only about 40% voted. in paris, kim kardashian was robbed of more than $10 million worth of jewelry. five men dressed as police officers robbed her at gunpoint in a private residence and then tied her up. her husband ended a concert in new york early when he got the news. global news 24 hours a day powered by more than 2600 journa

chancellor philip hammond will join john nichols ways -- john mikel's waste. 10 -- at 3 p.m. london time. ♪ vonnie: from bloomberg world headquarters in new york, i'm vonnie quinn. nejra: counting you down to the european close, about 15 minutes away. let's get back to our guests, the senior investment manager at aberdeen asset management. we were talking about the jitters in the market selloff by bloomberg-ecb scoop. there's a lot of talk about where the markets are -- we have mohamed el-erian saying the markets are not pricing and year in uncertainty. mark gilbert says we cannot take everything as a layman moment. i want to highlight this chart , the mosto-dollar traded current see pair. are the markets to complacent? luke: yes. almost by definition. have got to is with the central banks have wanted us to get to. i have suppressed volatility and those are the goals they have. they were hoping it would feature do they broader economy and that we could get out of .his in a nominal growth way for now, it is ok to be complacent. it's supported by those fundamentals being poor.

philip hammond and christine lagarde tackle the toughest questions facing the global economy.s, looking back at the week in tech. letting loose on donald trump. >> that makes him completely unfit. matt: this is bloomberg. ♪ matt: this is bloomberg best. he's got a tough job has had of the u.k. treasury. he must set a fiscal policy that can soften economic shocks as the country moves ahead with it exit from the european union. hammond visited wall street to reassure u.s. tanks of britain's strength and discussing the challenges he faces with an inclusive interview. >> now we have a situation over the past week. you see the talk of hard brexit. sterling has gone down. people don't see the city. --looks like the government is that fair? you have many worried watching on television. what would you say? >> i don't think it is fair. it's not a correct analysis of what is happened this week. first of all, we don't recognize the distinction between hard exit and soft brexit. we want the one that works for britain and for the european union. it has to be about mutual advantage. it has

the chancellor of the exchequer, philip hammond will be joining us.ceo of ubs, sergio ermotti take a look where stocks are trading right now. you'll see s&p down about 0.25%. more "squawk on the street" coming up. across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow- today at business.ny.gov >>> good morning everyone. i'm sue herera. here is your cnbc news update at this hour. hurricane matthew pounding the bahamas this morning as it makes its way towards the florida coast. its center is about 215 miles southeast of west palm beach moving at a clip of about 12 miles per hour. it is supposed to strengthen to a category 4 storm. >>> new jersey transit implementing a new rule for pulling into two of its stations in the wake of the hoboken train cr

the british chancellor, philip hammond is to meet with wall street executives today. visiting new york on his way to washington, hammond is expected to tell banks including citi group, morgan stanley and goldman sachs that the uk will continue to welcome the best workers from around the world and that the citi y's position a leading financial hub won't change. >>> a report by a leading scottish economic research group found that scotland's economy would suffer a severe shock in the event of a hard brexit. the think tank warns that up to 80,000 jobs could be lost with wages falling by 2,000 pounds per head per year. a hard brexit leaves the eu single market completely would see the scottish economy decline by 5%. >>> italy could leave the eurozone. that's according to joseph stiglich. the prize winning economist said the bloc lacks decisiveness to undertake needed reforms blaming the euro and german austerity problems for their problems. he redistrict >>> she's simply got to catch them all. norway's prime minister was caught playing pokemon go during a parliamentary de

i think ultimately it will come down to what philip hammond says in the austin statement.ee are finding move now is away from fiscal s toulus -- is t fiscal stimulus from monetary stimulus. what we would really like to see -- and it is pleasing what he said at the party conference -- the focus will be on how to provide investment and stimulus to the u.k. economy given the brexit uncertainty. guy: what about the mining stocks? what do you make of them? it's a global index that is largely exposed to foreign income streams. nevertheless, the miners are suffering a little bit as gold comes under pressure. isy had a fantastic run -- it off the back half of those commodity stocks? >> there's a question about china and there's a question about gold. i didn't think i would see this -- that at one point gold yielded more than cash. the problem with gold as it doesn't pay you anything and it costs you to keep it in the bank. yielded you more technically than you were depositing overnight, which is a bizarre scenario and which is why it has played well. we will see if it weakens as a

speaking yesterday with john micklethwait, he says philip hammond says he was not targeting a sterling. >> we don't target and exchange rate level. we have a free exchange rate. the market will make its judgment on the appropriate level of sterling at any given time. history tells us those judgments can move fairly significantly on fairly small provocations. one of the self-denying ordinances for chancellors is we don't speculate on the appropriate exchange rates for sterling. >> you don't seem unhappy about the current levels. >> it would not be unusual for the tesla to protect the sterling too high or too low -- for the chancellor to protect the sterling too high or too low. free-floating market exchange rate. guy: the chancellor in new york trying to woo global banks suggesting the pound is the place to be. it may well be if you are a global company. as 6.1% fell as much overnight against the dollar. sayas a move that traders was exacerbated by sell orders. for more, let's ring in paul dobson -- let's bring in paul dobson. what has been your reaction? paul: a mix of consternation, o

the exchequerr philip hammond said financial services are a high priority and brexit negotiations. retention ofthe escalating would be the ideal outcome but there are other possibilities to does -- to explore. >> they are realistic and are looking at other options beyond passporting to protect their interests and we are working with the industry on looking at future options, the protection of london's natural services. >> the december fed hike is likely but not a done deal. arian said central banks had distorted public markets and investors may be paying to close attention to that timing of interest rate moves. >> we have a market that is a test with the wrong things. the market is overly obsessed with the timing of the next hike and has not fully understood that regardless of when the next hike comes, this is a fairly different cycle. this is going to be a very shallow interest-rate cycle create lots of stop goes and a terminal point that is well below historical averages. what the markets will be looking at is the cycle as a whole and pricing that in as opposed to pricing when is

is at least partly that it's under william haigh, my predecessor, philip hammond, and under this administrationh the strong support of the prime minister. we have a foreign commonwealth office that is more energetic and outward looking and more engaged with the world than at any time in decades. and that outward looking spirit is present not just in the gulf but across the world. and i think it's going to intensify as we extricate ourselves from the eu treaty and we forge a new identity as the prime minister has said as a global britain. and i mean global because it is vital to understand what brexit is and what it is not. yes, it means restoring our democracy and control of our laws and our borders and a fair bit of cash. but brexit is emphatically not any kind of mandate for this country to turn in on itself to haul up the drawbridge or to detach itself from the international community. and i know as a former mayor of this city how vastly our capital and indeed our whole economy has profited from london's role and the u.k.'s role as a lone star and a magnet for talent. and i believe there is

also, you know, if theresa may and philip hammond protect the england for example, that would be seenbad thing for sterling. anna: thank you very much for spending time with us this morning. up next, hotels, motels, and holiday inn. we taken in as the companies report their earnings. this is bloomberg. ♪ anna: your weakness. ae single currency falls to low. e.u.n is split with the blasted thethat philippines is in hong kong, forcing the stock exchange two shots. shut. welcome to "bloomberg daybreak: flagship morning show here in london. it is just gone 7:00 here in london. giving us their numbers. revenue per available room up by 1.3%. of 1.8%. see estimates they remain confident in their outlook for the remainder of the year. fundamentals for the expert remain compelling. that q3 number has come in below estimates, but they do seem to be taking to their overall guidance. to their overall guidance. a little bit of it this -- a little bit of disappointment coming through. they own the holiday inn brand and the crowne plaza brand among others. morehave been spending time and money overs

we heard philip hammond talking about how parts of the industry are working on something other than fulle you, is that something that is on your agenda, not getting full passporting? >> we would like some version that allows banks to serve customers in the eu 27 and banks to carry on serving quest -- customers in the u.k. what is the legal framework there, underpinning the 20 billion pound trade. the ideal is having full free trade and financial services under and by higher regulation standards as i have at the moment. not some form of the recording -- third country passporting. there is a discussion about it the once. about passporting. this is a pale shadow of passporting. it is uncertain and it could be terminated at short nerd this -- notice. anna: are you willing to accept that full passporting might not happen yet? >> absolutely not. having an integrated financial market has been good for growth and we should keep that integrated market and financial services and the free trade. it is important when you go into debates to, into negotiations to ask for what you want. in the national

philip headmans comments around -- philip hammond's comments around increasing the fiscal side.ething that i have been calling for. i will become more optimistic about the prospect of the u.k. economy, if not the pound, if we do decide to pull that trigger. anna: do you think the andngement, should the u.k. eu in an interim after march 2017 has been found? is that where the focus needs to fall? euan: i suppose it does. our politicians are saying we will not accept anything that is worse than what we had. that implies that someone knows has to accept something that is worse than what they had. a sort of question about who has the most power in this negotiation. my view is we will have to make -- if we want to improve our control of immigration, we will have to make some negative compromises on trade. where we land, i am unwilling to predict. just a very uncertainty will have consequences on investment unless the government steps in and it will have consequent is for the currency. anna: thank you so much. euan munro at aveva investors. stock, 20% to 25% higher on the capital futur

tomorrow on number tv, philip hammond will join john micklethwait for a conversation on the economy afterovernment will approach economies in europe. this is bloomberg. ♪ tom: "bloomberg surveillance." foreign-exchange quickly here. 1.26.rading at now 1.27, 1.25. francine? francine: coming up shortly, it is "bloomberg ." alix steel joins you there in new york. we just heard from theresa may and eight boe official saying the brexit hit to you ok investment could be insidious. you have a packed show. to thee will be pivoting bloomberg news story yesterday, that the ecb is prepared to taper its bond buying program. is it a roadmap or just chatter from the ecb? we will talk about that with jeffrey rosenberg at black rock, as well as steve major's. you have goldman and you have morgan stanley. the dichotomy in the bond market. who is right and why? we will also talk investments and european banks with david a serra.- with davide tom: prime minister may is speaking, a massive victory lap. esther hammett in conversation with john micklethwait tomorrow. really looking forward to that. jeff cu