coming up, ruchir sharma will be joining us.to berlin -- up next, we take you to berlin. the euro-dollar weaker at 1.1866. this is bloomberg. ♪ ♪ jonathan: the euro falling against the dollar after germany's election. cdu won the most seats but now faces a tough coalition talk. matt miller joins us now with more from berlin. the big question -- it was always going to be what does the coalition look like? what have we learned in the last hour or so? were always excited to be a number of choices, but martin schultz basically narrowed those choices by taking himself out of the equation. last night, he says he will not be in coalition with cdu, and he is going to the opposition. that leaves her with one mathematical choice, to bring the business friendly liberal party and the greens, an eco pa rty, together in coalition. that will be difficult, because they do not see eye to eye on most issues. on the other hand, she has no choice. in germany, unlike spain, there is a real desire to do everything in one election. they will not want

we are here with morgan stanley chief global strategist ruchir sharma.m wary of drawing too many conclusions, because this is a really catch-up trade. copper and other commodities have lagged over the last several years. and there are some supply issues with copper, in particular. so i think this is a big catch-up trade that is going on. there is optimism about chinese growth, but chinese growth seems to have peaked in july and we are seeing a level off, and it. it is not falling off of a cliff, or anything, but it is leveling off. i think chinese growth explains some of the optimism, but there is a bigger story here. it is as much of a catch-up story, after such a long. of underperformance. joe: a lot of people are using the word goldilocks to describe e.m. right now. growth looks good. monetary policy positions are not especially tight. nothing is causing major central banks to tighten. and we had that huge e.m. rally this year. is the rainy thing you can see that would derail that come in the short-term? ruchir: no. a lot of this is explained by two f

to ruchir sharma of morgan stanley. this is bloomberg. ♪ so new touch screens... and biometrics.yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. m jessica summers. former president obama as issued a statement to president trump, about ending the dreamer program. he said, to target hopeful young strivers who grew up to wrong, because they have done nothing wrong. british rime minister theresa may will try to force the pace of the brexit negotiations. the u.k. wants to move on to the issue of trade, while the eu wants to settle other issues first, such as how much the u.k. will pay as an exit fee. statements out of the trump administration's could be paving the way for a walk away from the iran nuclear deal. u.n. ambassador nikki haley says iran has violated the deal. pre

better a new op ed lays out what president trump can do to prevent the next crash morgan stanley ruchir sharmack out the futures which are higher again this morning. "squawk box" will be right back. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there. ♪ >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq market site? it times square. among the stories front and center northrop drummond is buying orbital for $7.8 billion. here's a look at why this deal is notable morgan, good morning >> good morning, becky >> or $134.50 per share plus debt northrop expects this to be a free cash flow per share in the first year after the acquisition closes, and that is expected to happ