tiffany wilding from pimco still with us.'s get back to the payroll number and talk in more detail about what we are getting here. big difference between government and private. i'm assuming that over the next few months, we are going to have to start stripping out the government component of this as the census numbers go higher. i'm assuming they are going to rise sharply and then crest, and then fall fairly sharply. how difficult is that going to make understanding what we are really seeing in the u.s. economy? tiffany: to your point, we should have census hiring. we actually expected some this report, but it is relatively easy to strip out. we just look at private payrolls. just one other comment on government, we have seen local government hiring pickup, but that tends to lag the broader economy. as you have tax income from local governments rise, which tends to lag, but that is why we focus on private payroll. vonnie: it seems like trade is the wildcard here, right? with larry kudlow, we saw him pivoting a little from ch

let's get another voice from pimco. the cio of global fixed income of pimco joining us now.ould see trade forcing the u.s. into a recession. if that happens, where do you think the u.s. tenure goes? we are around 1.5. how that is the number go? >> if you have a u.s. recession, ,ou can see the u.s. 10 year look at where the u.k. is. moveould see a significant in the event of a recession. we see the risks as elevated owing to the u.s. china trade tensions. >> could you see a situation where that number goes negative? bei think that would unlikely in the u.s.. the europeans have done negative interest rates. i don't think that is likely ever in the u.s.. it's not obvious the evidence from europe would encourage anyone to undergo on that path either. that wouldn't be the central view but i'm sure it's possible of the recession and a bigger move in terms of global yields. global yields are what art tracking u.s. yields down. >> there is talk now about the deflation trade. this coming off of a time when everyone was talking about the reflation trade last year in 2017. if you look

the pimco chief warned the trade war may push the u.s. into recession.he new imf head painted a glum outlook for the global economy which had weight on caterpillar. we will watch action on asian machinery firms. we will get a read on japanese machine-tool orders and australian consumer confidence. south korea is offer holiday -- off for holiday. paul: it is alphabet day. let's get the first word news. ritika: turkey is continuing to send military forces to the border with syria ahead of its anticipated incursion against kurdish forces. the buildup comes after president trump indicated the u.s. would not propose a cross-border operation against longtime american allies. turkey says it will move into syria to take control of an area from kurdish fighters it considers to be terrorists. the brexit blame game is heating up, with the no deal divorce looking increasingly likely. sterling fell after boris johnson spoke to chancellor merkel and accused her of making a new deal impossible. sources tell us merkel insisted northern ireland must remain in the eu cust

libby cantrill is headed public policy for pimco.k about all day with clients and the media. let's start off of course with china purchase briefly what do you think the latest news the rally on friday is. will it extended in a monday this is an important bit of information we have got? >> i think the markets evidenced by friday are very much welcoming these developments however and i think this is sort of what remains to be seen from a market perspective, this is more just a escalation than a de-escalation so the reality is even after friday's announcement we still have 360 million-dollar tariffs on goods in there seems to be a lot to get done and probably the apex summit in november. this is a reprieve that is welcome for the market? absolutely but is this the big structural deal that honestly u.s. trade adviser bob lighthizer says it's not even close. jack would be difficult and i matter who's negotiating it but a bigger question for me is politically. china is a pretty good behemoth to run against in 2020. you think donald trump w

i will talk to libby cantrill of pimco. starting monday, "balance of power" will be live on bloomberg television and radio, followed by a radio only balance of power our. that starts monday on bloomberg radio and television. we hope you will watch and listen. live from new york, this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. we turned to mark crumpton for first word news. mark: a stunning attack at the police headquarters in paris. an employee armed with a knife killed at least four officers before he was shot and killed. it is not clear what the motive was. the killer is described as an administrator who worked in the intelligence unit. the paris police headquarters is located across the street from the notre dame cathedral. european union council president donald tusk says he is still unconvinced about the new british proposal to unblock the stall brexit talks, but he says he told boris johnson the eu remains open. the eu chief says he told ireland's prime minister the eu stands fully behi

pimco ceo manny roman said an escalation of the trade war with china could push the u.s.recession. there was plenty of conversation about brexit. >> what are you more scared about -- brexit or jeremy corbyn? [laughter] >> thank you for this question. >> i'm not saying you can't get both. [laughter] >> we think obviously that a full on labour government with a program they have would be bad for risky assets and it somehow reminds me of when i grow up. in 1981, the socialists in france were nationalizing everything in sight. within a year, they had to do a 180 and decide it was not such a good idea. i came to think that the government is not very good at running things. the government is never very good at running things. michael: do you see jeremy corbyn as another meter? he would come in and run into trouble? manny: if you look at his program, it is quite extreme. michael: do you think that is worse than brexit? in terms of the effect. you buy a lot of bonds. manny we do. : and we like the u.k. and we think even in a brexit scenario, we will be fine. michael: in a hard br

the economic implications amount to what pimco has dubbed a window of weakness.ow growth period of vulnerability over the next several quarters. still with us is pimco's global economic advisor. thank you for sticking around. a key question is whether this is a window to global recovery or global recession, and what would define that. joachim: that is the trillion dollar question. window to recession or window to recovery. it is really hard to say. normally, we economists like to express confidence in a particular forecast. this is a time where uncertainty is high, where any baseline forecast is less likely. where you have relatively large left tail but right tail risks to the outcome. our baseline is this window of weakness will give way to some sort of recovery in the course of next year because we are seeing global monetary easing, fiscal policy likely to become more supportive. but again, a lot can go wrong if the economy is in this window of weakness. if growth is slowing to globaling like stall -- growth falls below 3%, u.s. economic growth, gdp growth fall

tony crescenzi is with us, of pimco. david rubenstein. shockinglyus for a extended time, david rubenstein. here is the book. when it lands on your desk, you go, damn, i have to read this. we will get this in the next half-hour on doris kearns goodman and the other giants who have written about our ancient history in modern time. we will do that in a bit. i want to do the american story and dovetail tony crescenzi's expert. here, a trillion there, pretty soon it adds up. is anybody in washington or your financial word -- financial world concerned about trillion dollar deficits? a whatever was said, it is billion dollars there. trillion is now because billions are not up anymore. chileans are what we are talking about. tom: that is semantics. 20the truth is we are trillion dollars in federal debt, piling up that at a rate that no other country has seen in recent years. and normally you pileup this kind of debt when euro -- when you're in a war. there is a theory, monetary theory, that it does not make much difference becau

bloomberg editor john micklethwait is sitting down with pimco ceo. to what they are talking about. headwinds. at some point in time they will be seeing fiscal stimulus. >> you expect lagarde to make much of a difference or do you see her carrying on in the same way as mario draghi? manny: we think the right way to think of the ecb is a board of directors where decisions are spread among people and so she will do a good job at that and we think the ecb will go on in the same direction. 17 join dollars of debt with negative yield is quite something. not something any of us had expected five years ago. you run perhaps the biggest bond house of all. how do you make money with negative interest rates. by beating a benchmark. $17 trillion on negative yield is a challenge, but it can change dramatically. we have a trough of interest rates in this country since the 18th century where you see incredibly low rates at that incredibly high rates. the way we think about the world is there's not a lot we can do about the world we live in. we can do is mind our bus

pimco morning the trade war with china may push the u.s. into recession. emmanuel roman speaking with bloomberg news at the bloomberg invest london summit. 2020, youst half of will see gdp dip to 1% of something. this gets worse, you may be in a recession because a consumer will use space and what is happening -- lose faith in what is happening. china's outrage against the national basketball association is only getting worse. state run broadcasters say it will not show nba preseason games. fromtarting with the tweet the houston rockets' general manager. silvermissioner adam speaking what reporters. >> it is not something we expected to happen. but that isunate, the consequences of us adhering to our values. we still feel it is critically important to adhere to those values. leagueer also adding the won't help players or team executives with what they can or cannot say. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. guy: thank you so much. direc

for slow economic growth and sluggish markets and our bryan sullivan is in new port beach with the pimcoo-founder for a "power lunch" exclusive. >> thank you very much we're literally welcomed into his house. where you been >> i've been at the beach. let's jump right in. i want to get your investment advice bond guy who now likes some stocks and we'll name some names. i want to ask you just on a personal level, would you take in to mulligan anything he's done the last year or two? >> maybe the last five the last year or two -- >> or the last five. >> i think i got out a little bit too late if i had to do it again, i wouldn't have left pimco i would have gone straight to the golf course. i think i tried to prove too much and i did it in a vehicle in the unconstrained fund that was a little bit off beat from totally turn investing i'd want to take that back >> blackjack you hit on 16 >> depends on what you're hitting into >> every one was knocking you about the german boom trade. i think the trade would make money now, right >> yeah. i lost money as the spread between the tenure and u.s. t

pimco has been prudent and cautious on that.way from high-yield, but there needs to be a lot of work from credit analysts to get visibility on cash flow, and to circumvent the risk of lack of liquidity of building a portfolio with short-term maturity, somehow self liquidating, and using this appetite to lower exposure because this is a market where you need to be a little bit contrarian. tom: this is really important. the distinction here are adults like pimco, adults like blackrock, versus nations that are desperate for yield. asthere a systemic risk nations load the boat on u.s. high-yield debt, versus sophisticated private houses? wei: if you look at the default profile for the u.s. high-yield we are not seeing it in the late cycle and that has to do with the benign environment in terms of funding, not only in the u.s. but globally. theave seen interest in form of etf flows into u.s. high-yield markets, but we still have a preference for higher grade credit rather than high-yield. on a related topic in the income search, we a

pimco shows us how it is possible to bust a trend towards low-cost passive trends with the bond etf.it or not. either way, there is an etf for that and we show you how it is performing as the talks drag

roman pimco ceo manny speaking with john micklethwait.g up, the nba remains in the spotlight as we see china's anger over hong kong. we ask if the league will be able to hold onto its fans and the mainland. this is bloomberg. ♪ shery: this is "daybreak: asia." i am shery ahn in new york. paul: i am paul allen in sydney. the rift between china and the nba has grown wider. china menu derry has cut all commercial ties with the nba and tencent says they will halt carrying preseason games in the mainland. the defections follow a comment about the hong kong protest tweeted by the houston rockets general manager. nba commissioner adam silver says he can't tell people what they can or can't say. >> it is not something we expected. butink it is unfortunate, if that is the consequences of us adhering to our values, we feel it is critically important that we adhere to those values. paul: for a closer look at what's at stake, we turn to rick burton, professor of sports management at syracuse university. thanks for joining us. this is tricky for the n

war, bloomberg has america is moving today, our earlier bloomberg correspondent sat down with the pimcoepresentative. 2020, youst half of ,ee gdp dip to 1% or something and if the rhetoric on the trade war gets worse, you may even be an recession simply because the consumer will lose faith in what is happening. shery: joining us now, the ceo discussndustrials to the trade war to the impact on your business. thank you for coming in. >> thanks for having me. shery: we know the agricultural sector is your biggest unit, and we have seen this ongoing trade tensions between the u.s. and china, and the u.s. making up over 20% of your revenue. are you concerned that farmers in the u.s. may end up losing market share in the long term if these tensions continue? >> we are concerned. as you correctly say, we are the second largest agricultural see the farmers hit with the trade tensions, and they are cautiously waiting. the demand could be better if we had a resolution to these trade rhetoric's right now and trade disputes, and apart from the chinese situation, i think that it is very important to

pimco has been weighing potential threats to the global economy. roman says a hard brexit is better than the current situation of limbo. he says the trade war could push the u.s. into a recession. he spoke exclusively with bloomberg editor-in-chief john michael's light -- john micklethwait. >> you have a trade war with china and we don't think it gets fixed in the near future. i think the best parallel you can think of is the 1950's where there will be improvement, contagion, ups, downs. this will be interesting. >> do you see two economies emerging? a division between the two. do you see two internets, two supply chains, more regional economy? >> more regional economies and a global fight for some of the sectors. so you think the u.s. will slow down. the first half of 2020, gdp will dip to 1% or something. if the rhetoric on the trade war gets worse, you may even be in recession simply because the consumer will lose faith in what is happening. >> what are you more scared of out of brexit and jeremy corbyn? >> thank you for the question. >> i'm not

we have got pimco's ceo at 2:00 this afternoon. all eyes and ears down for that.t here in the dubai studio is saed abukarsh, chief investment officer at ark capital. u.k. will possibly go back into europe at some juncture. it is a very european perspective, isn't it? saed: i think the europeans are confident in what they have and they think it is a political game being played out in the u.k. the british want concessions. in the long term, yes, that could happen if we have a change of government, given what we see right now in the british political sphere. that could happen in 15-20 years time. most of the brexiteers have an issue with the being asked to be in the eu in the first place. manus: so it could be a short-term exit? saed: i hope not. manus: you hope not. world,s intermediated which is where he began his proposition to guy, translate that to me on where i want to be long and where i want to be short as we go forward. the world is becoming more intermediated. if it is trump on syria, trump on turkey, you've got brexit and internal impeachment issues. what

growth and its limits tim jackson an economist from the university of sorry and andrew balsawood of the pimco investment. an economy needs to grow or does it to experts to opinions the idea of grace for ever on a finite planet just doesn't make sense. to move growth we have the better it is for employment. we have might have to be careful about what we wish here in terms of 0 growth. what's more perspective career path and that sort of world am i going to have to wade into the older people in my company retired before i get a promotion it's going to mean very slow progress in increasing my income there are a real opportunities i would argue in moving towards a different kind of economy and one of those opportunities is in the nature of the quality and the quantity of work that could be available to people low employment would be one of the consequences of a deep growth. for a slower economy with more services for example more healthcare more education more social care more jobs that require human input and human labor you could find yourself in a position to labor shortages rather than unempl

you are sponsored by pimco -- i can make a shameless plug, right? [laughter] gershon: acgyx.e balance. half of it is credit risk, half of it is rate risk. given the -- that we do not know both -- which one is overpriced, mixing them is good. goana: betting on rates to from all-time lows to new all-time lows is a gamble. the market has gotten is consistently wrong time and time again. when the curve looks the way it does and you can still earn 2% on the front end of the curve and you are being offered 1.6 -- you can buy the japanese bonds and hedge them back to the dollar, you end up with the rate of u.s. cash, essentially. why would you use all that risk? we are being very cautious and focusing on safe carry, and a big part of that are liquid floating structures. you can continue to be there and click a coupon and be ready for volatility, which is coming because what is going to bomb everyone out at the end of the day, rates and credits, is math. that is the new word i am introducing here, because fixed income is a mathematically bound asset class, and we are getting close to

pimco's david braun shows us how it is possible to bust a trend towards low-cost passive trends withetf. betting on brexit or not. either way, there is an etf for that and we show you how it is

pimco shows us how it is possible to bust a trend towards low-cost passive trends with the bond etf.n brexit or not. either way, there is an etf for that and we show you how it is

. >> let's move on cnbc sat down to pimco cofounder bill gross at his home in newport beach.ormer bond king is a stock pick are he gave cnbc brian sullivan his favorite play right now. let's see what it is >> allergan, which manufactures lenses and so on is being bought by a health company called abvi. and there is still a good 7% or 8% in terms of a margin close up if and when they close the merger three or four months from now. >> blinded by the sun there, tim. what do you think of allergan. >> if he if we look at the biotech space allergan is a name that certainly i think has been more defensive there's been m and a talk and pipeline talk about you if look at the core pipeline i think it's under pressure. the valuations in the space and balance sheets in the space give you a lot ofo add one thing on allergan. if you buy the stock you are buying the risk of deal happening. the deal is not closed not closing for several months two investment things one is the deal closing and you get two thirds cash and a third stock. you do have a risk of the deal breaking then you might wa

hasformer chief of pimco pled guilty to money laundering and collusion charges, accused to geting a middleman kid into the university of southern california. that is your business flash. romaine: a fourth day of riots in chile. , rocking latin america. that's coming up next. this is bloomberg. ♪ mark: i'm mark crumpton with first word news. president trump has insist that he is pulling american troops out of syria and getting out of what he will's endless wars, his defense secretary says that the u.s. may leave some forces in syria to secure oil fields and make sure that they don't fall into the hands of a resurgent islamic state. spoke to reporters today during a trip to afghanistan. >> the troops there are not in the present phase of withdrawal. the present phase involves those border,p along the principally at the [indiscernible] at this point in time. as i said yesterday, the withdrawal will take eats, not the, and until that time forces will remain in the towns located near the oil fields. mark: he emphasized that the proposal to leave a small number of troops in eastern syria was intend

paul: pimco portfolio manager, thank you for joining us. of stories you need to know to get your day going. bloomberg subscribers, go to dayb on your terminal. it is available on mobile. you can customize your settings so you only get news on industries and assets you care about. this is bloomberg. ♪ shery: this is daybreak asia. i am shery ahn. paul: i am paul allen. let's get a quick check of business flash headlines. two joint ceo's to take over from the other who is stepping down after leaving the company for a decade. he will be replaced by the president and the currency 00. the appointment comes off of the back of third-quarter profits. review -- renewed momentum. this one posted disappointing quarterly growth after slumping i.t. demands. over $1me climbed 2% to billion but was lower than estimated. bloomberg intelligence sees a difficult road ahead for them and their rivals. the i.t. sector is try to keep up with multiple challenges and changes in client demands. we will bring you results later. saudi aramco will give final appr

the world's second-largest fixed income etf provider after kick -- pimco plans to expand in china eventrump administration continue -- considers curving fund flows to chinese equities. tom mackenzie spoke to the ceo in beijing. what i focus on, the larger narrative, which has been happening for over a decade as the opening of the agenda of the china renminbi and local capital markets to the rest of the world and if you want to call that making hong kong listen for is an entryway in and out of china, our offices are in shanghai and we do that because going forward, shenzhen and shanghai and beijing are important cities in their own right for the capital markets in china. >> are you still seeing demand in terms of inflows into your china etf from u.s. investorss? >> let me say no. let me be very clear. war,eadlines, the trade everything going on has basically put americans on their heels as far as investing in china. have been allocated for a wild but there is a lot of wait and see. frankly, given the u.s. equity market, why bother with that risk? i do think in the long term, it is an in

they lose its bid and restructuring plan fails then elliott and pimco could prevail and we could see shareholder right now see their stock down to zero. u.s. court of appeals for the second circuit today gave potentiallyump a significant setback in his growing battle with congress. his accounts must turn over his financial records to a house committee investigating violations of the financial clause. >> how significant is this? >> i think it is significant particularly after the ruling this past week and new york along similar lines for a different set of reasons. it will be appealed which will slow things down. his defense of strategy. he is 0-2 and the last seven days in trying to convince a federal judge that these people have no business looking into his tax returns. ♪ >> there is a function on the terminal called ptsd which is basically a back test of an asset class. put cable into this function and what it does is default to the most profitable trade over the recent time period. if you click on any of the tabs on top, it will isolate what you want and it will show you where the

even so, pimco is not expecting a breakthrough anytime soon. >> the view of president trump has been long-standing that the u.s. is getting shortchanged on trade and he believes he needs and at thishat point, the genie is so far out of the bottle, a reversal seems unlikely. japan's as it has no objection to u.s. calls to bring their initial trade agreement into effect on january 1. signing of athe basic deal last week as president trump and shinzo abe, both smiling, met at the general assembly in new york. the japanese foreign minister told nikkei news he expects future talks to focus on abolishing tariffs on autos and auto parts. , borisest on brexit johnson is given one week by the european union to revise his being givenor face a humiliating postpone and of the split. johnson's proposal is said to have fallen short. he told the house of commons it is up to the european union to compromise. if our european neighbors choose not to show a corresponding willingness to reach a deal, we should have to leave on october 31 without an are ready tod we do some, but that outcome would be a f

we welcome libby cantrill, pimco head of public policy. great to have you with us.efore we turn to the other business, let's talk about the impeachment inquiry. is that of concern. should it be a concern for investors? libby: markets have largely ignored it so far. what i think the markets are assuming is maybe the president gets impeached, which only takes 218 votes, but very unlikely he gets convicted by the senate, which takes two thirds of the senate for conviction and removal. no president has ever been both impeached and convicted. the markets are just assuming that is not going to happen. if that dynamic changes, if you see more republican senators, senator met came out over the -- questioning president trump's judgment, the market might be more concerned. it is just a partisan machination on the hill and not something that will be relevant. david: let's turn to the knock on effects. those are things the markets have reacted to, things like u.s. china trade and the usmca. is it possible for washington to move forward at things like that at the same time we ha

david will speak with the head of public policy over at pimco.nd myself, have a great afternoon. this is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, emma chandra from london on the latest attempts to get a brexit deal. from the white house, kevin cirilli on president trump challenging week, and from ottawa, a reporter on canada's election day. prime minister johnson try to get a vote, did not get it, what happened today? emma: he did not get the vote again today. the speaker of the house of commons denying the prime minister a vote again on his brexit deal. he said mp's would not vote on the brexit deal this evening, citing conventions dating back to 1604. a historical tidbit, especially for you. he said mp's had already debated and discussed the same thing on saturday. there would be no meaningful change to what they might vote on today. he denied that vote.

earlier, pimco was saying because activity is going to slow as the trade war continues, what we are seeing is a pull forward of activity that we can expect to be offset in coming quarters. erik: that's right, and i agree, the revision of the past couple of months' numbers certainly gives a boost to that story, but if you take the numbers from the census surveys, other extraordinary intake, and just look at the private sector, i today belowre down the normal number that would keep the u.s. economy afloat. trend is very clear to me. how fast it goes down, usually it takes three or four quarters running at these 1.75%, 2% growth. that's why i'm a little nervous that we get to zero in the second quarter next year or a little later. guy: if we get a trade deal, would that resolve things? erik: if we got a great trade deal, everything would be fantastic, but the probability of that is so low. we are worried about when the auto tariffs will be announced. in the best of circumstances, i think you get trump saying i delay by three months and i want the europeans to do this and that. he would never

blackrock,nguard, pimco, fidelity, all looking at opportunities despite these headwinds. broad conversation around issues of china, hong kong, and the u.s. recession and where he sees the federal reserve going. take a listen to this exclusive interview. internals mainly an issue within china. what i focus on, the larger narrative, which has been happening for well over a decade, is the opening up agenda of the china renminbi and local capital markets to the rest of the world. if you want to comment making hong kong less important as an entryway in and out of china, our offices are in shanghai, and we do that because i think going forward, shenzhen and shanghai and beijing, to a lesser extent, are really important cities in their own right for the capital markets in china. >> are you still seeing demand into yourf inflows china etf's from u.s. investors? jan: no. let me be very clear. the headlines, the trade war, everything going on has basically put americans on their heels as far as investing in china. investors have been allocated but -- adwhile, while, but there's a l

, good to have you with us on this thursday our vichlt committee, joe turn know, jim leventhal and pimco portfolio manager. nice to have you back. let's start with the selloff of stocks, it was the worst day for the s&p. chicago pmi number going cold water on things may be bottoming. josh, about to come in today, apple good, facebook good, earnings pretty good wow that pm movement, 43.3 versus an estimate of 48.5, the worst since '15. are we reassessing now once again? >> no, because we had a rate cut yesterday. >> well it may pause now >> the s&p 500 hit an all-time high yesterday it's down marginally today if the stock market went a point a day, no matter what, we'd number a bubble. so we backfill perfectly natural. i think there are those that hit prior levels one could be the kre, regional banks down today double sfs on the session. they just hit previous resistance yesterday same thing with industrials. take a look at the xli, previous resistance couldn't get through back them off a little bit okay, it's not catastrophic, everyone should calm down, happy halloween. >> but recently,

pimco shows us how it is possible to bust a trend towards low-cost passive trends with the -- passivelow bond etf. betting on brexit or not. either way, there is an etf for that and we show you how it is performing as the talks drag on.

former ceo of pimco, the massive international investment firm.court documents show hodge agreed to pay more than $500,000 to get his daughter and son into usc as athletic recruits. married couple elizabeth and manuel henriquez entered guilty pleas as well pay he's the cofounder of hercules capital. he has stepped down from leadership roles for that couple extra page $400,000 to visit plate cheating both admissions tests for two donors and also bribing a tennis coach to gain admittance for one of the teens at georgetown university. manuel's hearing just wrapped up. he was very emotional. elizabeth is slated to appear at 4:00 this afternoon. trace. >> trace: you can bet lori loughlin is watching this closely. molly line live in boston, thank you. the three biggest drug distributors in the u.s. reaching a last-minute settlement in the lawsuit over the nation's opioid crisis. they'll have to pay a total of more than $200 million. an israeli based drugmaker contributing some cash and a supply of suboxone, drug used to treat opiate addiction. the case

from that event, we will speak to pimco's ceo manny roman. let's get to our top stock stories.hordern -- annmarie: a lot of individual corporate movers. 4% innd olufsen, up copenhagen after new changes at the top, their ceo replaced immediately. over,ian tear taking after just last week there second consecutive quarterly loss. uniper down nearly 5% with news fornum acquired a majority stake in the company. is 70%. stake qiagen plunging this morning, down nearly 17%. they were out with a profit warning, a new ceo, and all the news just doesn't paint a good picture. anna: thanks very much. next, markets are close to pricing in a cut on the fed, but one of the most of its members of the central bank says that may only be -- most dovish of its members of the central bank say that may only be the start. more next. this is bloomberg. ♪ ♪ welcome back to "bloomberg markets: european open." the ftse starting to put up decent gains, up 0.3%. one of the federal reserve's most outspoken policy doves says it is not clear how many more rate cuts are needed to support the economy. minneapoli

but pimco is warning that president trump's impeachment fight could weaken his negotiating position,ecially after the president's call for china to start investigating his rival joe biden. talked of a company about his trade concerns with francine lacqua. are mostly we concerned about is a global trade war that could move into companiesr, because trade in global currencies. if you have a war on who can devalue your currency the most, that will be useful. would havewar devastating impact on the global economy. not just our company, but all global companies would suffer. that is the thing i worry about the most. francine: can you hedge? : we can hedge on input costs. francine: what does it mean about a possible recession getting closer? kasper: we have seen that in europe for a number of years that the economy is slowing down. we are less concerned about asia, but what we do see, we believe in our industry is in a better position. tohave less exposed recession. we believe our products do relatively better under recession than other products. francine: earlier this year, you struggled t

nejra: the pimco ceo speaking with bloomberg editor-in-chief john micklethwait.park is still with us. i want to pick up on that question discussing brexit earlier. do you think a labor government would be more worrying for your asset allocation than a hard brexit? edward: i was hoping you're going to ask that. in terms of the uncertainty, brexit, almost regardless of the outcome, could give some sort of midterm clarity for u.k. investors. what has happened in terms of a government change is it creates more uncertainty for a five-year period. that's where we get a lot of our concern from. clearly the key would be whether the labor government got a majority or whether it needs to form a coalition. , whether theythat full program through. in terms of adding an certainty to the u.k. economy, a labor government could be more damaging over the medium to long term, where brexit could lead to a sharp rewriting. matt: it's more dependent global trade and that has been obviously slowing down, with global growth. what do you think about earnings in this quarter? will they b