sterling loses ground after parliament forces boris johnson to ask for an extension to the uk's exit deadline. and indian cyber security scam, how online fraudsters trick people into parting with their ha rd trick people into parting with their hard earned cash. hello and welcome to this monday edition of asia business report. we start with brexit because sterling has slipped as the global currency markets opened for the first time since the uk parliament delayed that crucial vote on the new european union withdrawal agreement on thursday. we saw the pound having strengthened after the british prime minister borisjohnson, agreed after the british prime minister boris johnson, agreed a after the british prime minister borisjohnson, agreed a revised deal with the eu but on saturday we saw parliament passing legislation that forced him to send a letter to brussels asking for an extension to the october the 31st exit date. this is how the pound is reacting now. it has fallen as it has been opened this morning. let's speak to our asia business correspondent who joins me in the studio. wha

peter: it slipped from massive bid towards sterling and now it is towards sterling gold. the market is no longer discounting a hard brexit and that is clear both in terms of what labor wants, what conservatives are going to -- what he is saying. we are holding a no-deal brexit under both scenarios. nejra: what does all this mean for the bank of england? that was really interesting because previously, we had a lot of dovish comments. even if we get a smooth brexit, rate cuts could be on the table. he said the opposite. no rate hikes could be on the table. peter: i disagree with him. globally, if you look at it, we are in a much lower inflationary sort of environment so you don't really have a basis to raise rates. moreover, if you look at the employment data we have had and the unemployment rate, it is higher. the labor market has gone -- you do not raise rates in that environment. nejra: what does this all mean for gilts and the curve? peter: the curve will not do an awful lot. they are plunging aggressively. they continue to be a secular trade. even if you get a small ra

rahim sterling, he was scoring from the penalty spot.make this manchester city team angry though. but a response it was from city. sergio getting the equaliser and scoring for the penalty spot, you thought it was him those going to score they had trick but his numbers are incredible at the moment in terms of goal—scoring, the second had trick of the season just brilliant finishes, you would not have seen those types of goals from raheem, he has achieved so much as a player and it worked so hard on his game and another had trick tonight and raheem sterling is up there with the world —class sterling is up there with the world—class players of the moment in european football. a great performance from city. thank you so much forjoining us in a quick look at some of the a quick look at some of the other results tonight, comprehensive for ps6 against bruges — 5 seems to be the magic number tonight. kylian mbappe with a hat trick. real madrid, who have been struggling — get an important away win in turkey. bayern munich came from behind to beat

well, we've got two things driving our bullish forecast for sterling.ticularly versus the dollar, we are negative u.s. dollar. we think the dollar is set for a multitier downtrend, a tailwind for sterling. throw outke to numbers, but it could trade closer to 1.50 in that area. this is not a 2020 story. this is maybe 2021, 2022. this is longer-term, but we think sterling is already and theed hard brexit u.s. dollar is set for a multi-year downtrend. growth differentials are starting to work against the u.s., which will help sterling. yvonne: everyone is finding some reason to short the dollar. globalintyre, brandywine portfolio manager out of singapore. another ceo is looking for the shoe to drop. we'll hear from him next. this is bloomberg. ♪ rishaad: back with bloomberg markets as we look at the headlines. clinical researcher is said to be considering a share sale in hong kong as soon as next year. this company could raise up to 700 million u.s. dollars. sources say the hong kong listing could diversify its investor base and raise funds for acquisition

the sterling prize jury to announce the winner of the 2019 riba stirling price. i congratulate every single one of the entrance. there are all amazing single one of the entrance. there are allamazing in single one of the entrance. there are all amazing in their own different ways as we saw earlier. but there can only be one winner and it is my absolute honour to announce the winner of the 2019 stirling prize. and the winner is, congratulations. jubilant celebrations. congratulations to the north of york centre, combines familiarity with traditional victorian terraces with the domestic architecture. goldsmith street, the development of council houses goes to the standards, the highest possible standards, the highest possible standards and their energy bills provide £150 a year if you live there. speaking to the residence, they love having a house like that to go to. a special player for the children. in the innovation so great that you cannot even have a letter box in your front door. it has taken them around 11 years to get this off them around 11 years to get th

you know you are going to get sterling appreciation and it will do well.he one thing we know from all of this is that we just need removal of uncertainty. we need a from trade talks and brexit. think that somehow removes uncertainty is going to be a positive. nejra: what that make you more positive on european equities? so you are a little more favorable on europe. risk for the rest of the world? am fascinated. for three years, they came in and said to us all that brexit is not a global risk. it is a u.k.-only issue. so let's take it to the flipside. if there is a brexit to deal, deal,ould be -- brexit what would be the global ramifications? michael: it's interesting the way you introduced that. i'm trying to think if i have sat in this seat and said that. manus: if i had it i would show it. michael: the reason i think it is more systemic now, and it's particularly true for europe, is that europe is on the brink of recession we know the banks have done better and they have been under a lot of pressure. not necessarily global, but certainly for the u.k. and

a miss on the headline let's take a look at how sterling is reacting in general. investors turn cautious ahead of the commission whether they will push through in the last 20 minutes or so, we had comments from erg saying they will have discussions this afternoon about the brexit deal and that they won't have a deal. lending the opt mission that they won't sign onto the hard agreement. that's one reason you have seen sterling tick up ftse 100 is at a low now earlier on, we saw some gains with the weaker pound. some of the export stocks now coming under pressure. we are in negative territory about .3 a percentage point. ftse mib hanging in around the flat line this morning >>> let's look at where things stand for the u.s. market. in for a muted but negative start. yesterday, we saw gains across the three as investors really shrugged off the down grade. health care had the best day of the year, consumer staples was the worst. bank stocks in focus with he saw yp morgan shares rally strong yesterday after that lendersmashed through goldman sach missedents and keeping

as not have the same headlines of late it had had from sterling.earnings story coming into the mix. the dax trading up .1%. the cac 40 is under pressure. it's numbers not being taken that well by the markets. let's look at what is happening with the grr, trying to get a sector breakdown. two big numbers today for the food and beverage sector. real estate ok today. insurance training stronger. the real estate story, a little bit of practice optimism -- a little bit of brexit optimism in as well. the spread between the top and the bottom not as great as it has been of late. we have focused on names like nestle and unilever because they are bond proxies. today it is because they had earnings out. nestle is underwhelming. it will be returning a lot of cash to shareholders, around 20 billion swiss francs from next year over a couple of years. the market underwhelmed by that. acquisitions.y underwhelmed by the sales numbers. the sector is down .8%. nestle is a huge heavyweight. unilever is under pressure. tough, cream sector was it did not quite make it'

he gets opportunity and sterling price out. he will clash with jackson's column, which will result in the first confederate victory in the campaign. the confederate general in the indian territory has a brigade he will begin to advance into the states. some historians believe that this is the first confederate invasion of the north. some may argue differently. i have heard both. this is obviously one of the first. i will say that. this was done after the battle of boonville. the battle of boonville. chasing governor jackson. you see him holding his belly. he is obviously sick. the third and fourth stages of sturgisaign, lyon and will rendezvous in springfield. again, they still need a train. this is a very low part of the states. mccullen has worked with the commander in arkansas. border.st down the tohas just gotten permission move into missouri if the situation calls for it. at actually, one last thing -- both of the armies at this point, they are looking for a fight. nathaniel lyon has departed springfield. he is not entirel

election could perhaps mean a pause if not a pullback in sterling. what would it take sterling to 140? >> 140 is the top of the range. you have therio, bill passing, you have a general election allowing the government now to push forward with their significant spending plans, so since the start of this new government, we have had a series of material spending announcements that would give a significant boost to the u.k. economy. in a scenario where you have brexit uncertainty lifting, spending coming back to the u.k. , the bank of england still on the u.k. economy is looking in a reasonable place. there are a lot of if's to that scenario. what's your outlook for what the bank of england does? we have had conflicting messages. >> they are on hold for some time now. they did open up the path to a potential rate cut. if they feel like uncertainty is dragging on the economy for a decent period of time, so if we do look like an impasse on the brexit situation is going to hold, they have opened up a route to a potential cut in the months ahead. with moment

it could hit deal, 132, 134 on cable and on sterling, on euro sterling that is a whole ott momentum behindre your targets peter? peter: i think the targets are going to depend on what your time horizon is. when we look at these opportunities we're not saying we're going to take a position on sterling within the next few weeks because a deal has to happen. it is going to be a structural change in how that market is going to be perceived. you're going to go back to the level we saw immediately prior to the brexit referendum. i don't see why a level of 132, 133 should be the limit on our view. on a 12-24 month view, you should be looking at a higher level. nejra: it could go to 140. now let's get to the bloomberg first word news. >> president trump depending his decision to pull u.s. forces from northern syria. he is also fine with letting russia fill the void saying it is a lot of sand but the house of representatives took a different view passing a cross party revolution rebuking the decision. michael pompeo blaming turkey's president for the crisis. u.s. senators are pressing ahead th a bi

reflects weak sterling and uncertainty about where sterling will go.o some degree the ftse 100, where the stocks sell on average around 70% of the revenues outside of the u.k., they have been protected a little bit because sterling has fallen, the sterling volume -- value of those assets has gone up because of the currency translation. the more domestically oriented stocks have been ones that have borne the brunt of the risk premium. they have started to recover. if sterling picks up further in light of a deal being agreed, elastic stocks which have lagged behind could do better. we will see where we election watch. up next, earnings opportunities, how european reporting season is shaping up so far. this is bloomberg. ♪ anna: welcome back to "bloomberg markets: european open." 21 minutes into the trading day, a little sluggish, down by 0.3% on the stoxx 600. u.s. futures look entirely flat. talk about the oil sector, shares of saudi aramco will start trading on december 11 according to the television news channel. it says a subscription for shares will

a sterling outcome. goldman and credit agricole maintain bullish predictions for the pound seeing the medium-term rise to 1.35 or higher against the dollar. and holding steady. beijing's top trade negotiator says progress is being made on a progress -- on a u.s. trade deal. a major speech on china policy this week. you are watching from asia. this is bloomberg surveillance. these are your markets. quite a lot going on in terms of brexit. hopefully there is a lot going on when it comes to trade. that is what the markets are putting their hopes on. let's get that board up for you so we look at what european equities are doing and a little bit of weakness. stocks in general higher. u.s. futures higher. bonds.s in we are expecting a lot of news out of companies such as amazon.com. 1.2 957, all eyes on westminster and a possible vote in the house of commons behind me. that is coming up. more from our interview with mark carney at the imf meeting in washington over the weekend. first, let's get straight to sup

there will be outflows on sterling.ck toward the 1.10, 1.15 -- read trenches back toward the 1.10roh finance minister laid around -- later on. he will be asked about trade and tax digitiza ♪ you are watching appleberg "surveillance." reversing course on hong kong. the company pulled the plug on an app that showed police activity. apple sayss. the health scare around vaping changed its calculus, prudentil will calculate smokers. smokers tend to be charged higher premiums. the parents of louis of utah --ugging off -- louis v tall sales of fashion and leather goods rising 19%. hong kong is a key shopping destination for chinese consumers. shoppers are buying high-end fashion elsewhere. that is the bloomberg business flash. francine: thank you so much. finance, france's minister warned the e.u. would hit the u.s. with sanctions if a settlement was not reached over airbus. >> growth less than expected. a tradeu want to add war between the course we will not have any other choice but to also take measures at the european lev

we will see a big move one way or a big move the other in sterling. see that in that white line. vonnie: this is exactly what mark carney said and guy fox, your namesake. i think that is wonderful. but i will award the winning ticket to romaine bostick. coming up, it is "balance of power" with david westin. ashton carter will be on the show. ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, kevin cirilli in ohio, the scene of tonight's democratic presidential debate. chapterdon, the latest in the ongoing saga of brexit. -- sally bostick on the kevin, what are we expecting tonight. three things -- kevin: three things, will any of the democrats take on joe biden? he has lived in the polls but his neck and neck with elizabeth warren. the biden campaign urging democratic contenders not to go after hunter prided who boat -- who broke his silence in an interview with nbc saying he should not serve on international boards and sa

those are the sterling targets.e: at what point do we have any certainty on where sterling will be headed more longer-term? in termselos: the key of near-term dates is the summit coming up on the 19th. if you do have agreement there there is still quite a lot of and premium to remove sterling price action can be quick as we saw on thursday and friday. if that is delayed and we get another extension, i don't expect sterling to selloff. is in gaugingent proactively in these discussions that should be supportive of the pound but potentially pricing could drag on until the end of the year. guy: how much did friday change positioning? mr. saravelos: our positioning metrics were close to record it is so historically very difficult to see prices change so much within the scope of a couple days. you have the shorts being reduced but there are some medium-term under weights from investors and central banks. these will take more than a couple of days to change. you are sounding much more positive about the situation in europe

we're live in london and brussels i'm joumanna bercetche and these your headlines >> sterling dips onhe ftse 100 rises as uk prime minister boris johnson has a setback in parliament this weekend past, but the british prime minister eyes another attempt to push through his agreement as early as today >>> and banks and home builders lead the gains as the eu receives a forced extension request from boris johnson, but the british government insists the country is leaving the bloc by the end of the month. >>> lebanon's prime minister agrees to a series of economic reforms in an attempt to calm unprecedented anti-government protests experts at the imf annual meetings raise concerns over negative rates in an exclusive interview with cnbc, axle weber warns central banks have lost their ways. >> in recent years, ecb loss of business has been much less policy, lost its distant to market they should guide markets rather than be in a standoff with markets about the future, and we have seen it in the u.s., we've seen it here in europe ♪ >>> well, good morning and welcome to "street signs." it's mo

let's also talk sterling that hit a five-month high.lle barnier saying a divorce deal is still possible chancellor merkel said she will work to the, quote, last minute to strike a deal >> that comment coming out of the various policymakers helping to give a boost to the pound overall sentiment is a lot more positive we have a negative session yesterday as the market came terms with what was slightly disappointing. today, things are trading a little more positive we have the stoxx 600 almost back to two-week highs the ftse 100 the relative outperformer dax is up. and cac is up around .6 perts. the sectors leading today, travel, retail, leisure are some we are watching out for. let's switch and talk foreign exchange this is a real breaking point of 1.10 we have been rebounding some what sterling even versus euro is close to a four-month, five-month high now. we are talking 1.2660. some comments suggesting there may be a deal by the end of the week merkel weighing in this morning saying their preference is for an orderly brexit. we have to

sterling,een long particularly against the dollar.ink there's probably still some upside there, so you could buy that if you wanted to. we think in terms of the equity market exposure, the moves are much bigger within the market, as we are seeing today, then at the headline level. if you are inclined to take some index positioning, obviously you need to make sure you've got balance positioning. it is about getting the border to asset allocation right. are the inequities, bonds, hedge funds? are they overweight or underweight u.k.? path so farted a that kind of keeps us a little but on the fence, irrespective of the outcome of brexit, with the respective -- with the exception of our sterling call. romaine: when your positioning within equities itself, we see the ftse 250 kind of outperforming the rest of the equity market. i'm wondering if a lot of the stocks that have been a little bit pushed to the side amid some of the brexit uncertainty, whether it is too early or safe enough to move back into some of those names on the hopes that

as for the sterling, not too radical.omaine: christopher, you're going stick with us, mcing director of global political research. still ahead -- we're keeping an eye on mark zuckerberg on capitol hill, giving his opening statements. we're going to bring you coverage once the q&a starts. from new york and london, this is bloomberg. ♪ guy: mark zuckerberg, c.e.o. and founder of facebook, giving opening statements on capitol hill. lawmakers on the house financial services committee are expected to begin questioning the facebook c.e.o. very, very short. i think he's on page 3 of 6 right now. the q&a will follow very, very shortly. we will bring that to you live right here on bloomberg. there is a ticker running on your bloomberg as well. follow along there. this is bloomberg. ♪ guy: let's take to you washington right now. facebook c.e.o. mark zuckerberg now taking questions from congress. let's listen in. >> seems to me that you shifted your stance because you realized that you can use your size and your users' data to domin

positioning on sterling has been bearish.uddenly we have the sort of big ships not only in currency market but guilds as well. if the dollar starts to come off, the degree of risk aversion is so polarized in some of these currency markets, particularly the pound. rishaad: is it really the moment a situation with a lot of optimism coming into sterling suddenly in the course of four days? is it overblown? sean: there is a disparity between what the odds are being sort of the uk's in terms of where we are with the brexit discussions and where we are with sterling. out you had a cacophony of changes. default the credit swaps for the u.k. melting downwards. had the irish stock market doing well. these are signs there is a more benign scenario starting to be priced into the whole discussion. it is not necessarily in the pound. rishaad: what will happen? [laughter] sean: we wrote a report a couple of weeks ago called breaking the gordian knot. you have do change the rules. that is what boris johnson has done. he knows the northern i

we traded sterling. we were short sterling against japanese yen and took a profit last week. prospect with -- is the best since november of last year -- with a deal is the best since november of last year. nejra: ann-katrin petersen from allianz global investors and kevin zhao from ubs asset management, thank you for being with us. francine lacqua sits down with the bank of england governor mark carney. don't miss that interview tomorrow on bloombergtv. up next, the latest on breaking news of cuts at hsbc. this is bloomberg. ♪ ♪ economics, finance, politics, this is "bloomberg surveillance." i'm nejra cehic in london. let's bring you the latest on a breaking story. hsbc could partially exit stock trading in some developed? it's. this comes as part of a cost-cutting drive by the interim chief executive. trading units in france, germany, the u.s. and the u.k. are all likely to be hit. let's speak to our finance reporter. great to have you with us and great work on bringing this scoop. is it part of a wider view of hsbc's investment banking unit? >> sure. we are not entirely sur

sterling up probably 10%. manus: bank of england probably hike, what, immediately?an they afford to hike in the immediate aftermath of three years of battery? kallum: hawkish, then hiking next year. nejra: coming up, violence escalates in hong kong. more protesters arrested after clashes with police left an officer with a neck wound. this is bloomberg. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. plus, get $250 back when you buy an eligible phone. that's simple. easy. awesome. call, click, or visit a store today. manus: it is "bloomberg daybreak: europe." nejra: we are seeing a lift of risk assets today on the optimism that we have a partial deal between the u.s. and china. lots of questions remain. manus

you've got sterling very beaten up, sterling dollar, sterling euro, quite extreme low valuation, andte high yields, extremely interesting valuations on a relative basis offered in those big caps. what we've been trying to do and think about and develop in our own strategy is leaning in to that theme, investing more into u.k. equities. we think tactically, dynamically, it's a good place to be, even if a bit scary given everything in politics. nejra: we had a pound surge yesterday, but not necessarily that's going to last in the ftse. joseph little staying with us. great to have you on the show. coming up, we speak with stefon diggs now after the pound european stock exchange unveiled its new strategic plan. don't miss that interview after the break. matt: and is the from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network de

we will get the sterling in a moment. with a little bit of curve steepening over the last number of days. onto the next screen, if we could and the idea of the vix 14.14, stable market and that columbus day, really low volume day yesterday. sterling. we are on the six watch on lira. that is a stronger turkish lira over the last 12 hours. it is not there yet, but you really wonder if we get a breakout to an ever weaker euro. that has certainly been the devaluation trend. francine: that figure coming in better than -- zew figure coming in better than expected. european stocks on the up. investors preparing for the first big third-quarter earnings on banks. further developments in the trade dispute between the world's two largest economies is what the world wants to know about. just focusing in on brexit, because michel barnier says a deal as possible. some signs of optimism and you can see cable at 1.2651. president trump promised big sanctions on turkey but the penalties have turned out to be less than what lawmakers in bo

sterling price is actually sick during the initial stages of the campaign. he has diarrhea. he is actually up in lexington until he feels a little bit better and then he is making his way to neosho. during this maneuver, those columns are trying to recruit. they are trying to build up the army and utilize this threat of the u.s. army advancing through the state as a call to arms for many missourians. many of them do. ultimately, sigel arrives in springfield. what he is planning on doing as jackson arrives, the missouri state guard takes their positions and they will rendezvous with jackson. neosho, heptures will clash with jackson's column, which will result in the first confederate victory in the campaign. the confederate general in the indian territory has a brigade of men he will begin to advance into the states. -- state of missouri. some historians believe that this is the first confederate invasion of the north. some may argue differently. i have heard both. this is obviously one of the first. i will say that. as a fun cartoon, this was done after the battle of boonvil

how much of arise would you see in sterling? patrick: sterling is up 5% in short order, and you have two rate cuts coming in the u.s., so naturally that will push down yields, which you have seen in the u.s.. so, the dollar will suffer, no doubt. overseas currencies will suffer. you will have to adjust for that. you have had a 5% move and you have to give that at least back in terms of a deal, in terms of going up another 5%, if we do see a deal. 10% move, i would think you would have adjusted more. in the short order of a month. vonnie: what's interesting is that the ftse 250, since 2016, is up almost 18%. that is partially due to do youg's weakness, but think any asset class other than sterling is moving on this? patrick: the markets will always discount the bad news, and they are discounting all of the bad news at the moment. i take the point that it is up 18%, but these markets are off considerably from their all-time highs. we are only where we were last year. markets havebut gone sideways for a year. we are not up dramatic

nejra: what does that do to sterling? initially, the market reaction kind of told you that people will just sell sterling. i think perhaps that is short-lived. when you see the manifestoes , thethe conservative party deals from the eu, i think sterling would resume its bounce. matt: what do you think this means for the economy? how much does it muddy the outlook for businesses? the outlook is pretty muddied already because people don't know what this future relationship will be. i guess this does not resolve that, but it does help us get some clarity. carneylook at what mark says about the u.k. economy and why it has been so weak, it is because capex has been falling off a cliff. businesses don't want to invest. china-u.s. trade talks. the uncertainty in britain. they are sitting on their hands. if they have some clarity on what the future outlook would look like, perhaps you see this pent up money in doing ok -- in capex doing ok. nejra: let's look at the global growth picture. generally, you are shorting the dollar righ

at the moment that as a result .f sterling, sterling strength how much higher can sterling go? a break. untilt be sustained november or january, that prolongs the uncertainty. the market is reacting to the currency. nejra: what is your expectation of the currency? we have taken a little bit of a pause. a lot of rehashing of views of where sterling goes from here. do we go all the way to 1.40? seen, that remains to be and it depends on the outcome. very low on 1.22 is a relative basis. we added 5% sterling to some of our portfolios, but on weakness on. relative value. there is a technical around 1.35 . essentially, can we break through there? we would need some good news and a good outcome. a resistance level, and it is not that far away looking at 1.30. nejra: that good news would be what? laura: a deal which keeps the consumer consuming. a deal which means the bank of england is not forced into cutting, creating stimulus. we have a slowing economy, part of that is from the trade war and the rest is coming from brexit. and we get as deal, that is where we will see that currency

rahim sterling said,... marcus rashford also with the same sentiment. he also praised the fans.rresponding job wilson is in sofia and centres there is just after full—time. one is in sofia and centres there is just afterfull—time. one eglin supporter has told me she had monkey noises from bulgarian fans from the first minute of the game. england have experienced this before, so what has changed? clearly now they have the confidence and determination to support racism —— report racism. the second protocol could have involved the game being suspended. it could well be argued that england's emphatic victory is the best response. gareth southgate has said that england has its own rate issues with racism, but this kind of thing cannot stand. the response from uefa is now of the upmost importance. this evening a few thousand seats closed off, it made no difference. joe wilson in sofia. 80 more reaction to that developing story on the bbc sport website. elsewhere northern ireland have finally won a friendly away from home, ending a barren run of 13 yea rs. from home, ending a barren ru

let's take a look at sterling. currently flat versus the dollar it is higher than where we were yesterday. we had seen them dip it has recovered there we are expecting to hear from boris johnson. the house of commons waiting to hear from them let's get back to our guest. the global head of bank of america merrill lynch. that information and drama coming through delivering this new proposal it has been hovering around the 1.22 mark. what do you pin that down to >> there is still a lot of uncertainty. there has been progress over the last couple of weeks at least they are talking. there is a proposal on the table. all of these are positive. we are not really close to a deal there is still a lot of details to be decided. i think the next few days and weeks are extremely important. let's see if the eu is willing to discuss the proposal in detail let's see within the uk if this can have a majority in the department the question will be, which of these details have to be finalized now? which ones can we leave during the

what does that mean for sterling and u.k. assets more broadly?oachim: i think you would see more volatility because even if tories looky the likely to win, that is certainly not a given. tories have been wrong before. it could lead to additional volatility. eventually, i think you will see a brexit that involves a deal. our view would be that sterling is more likely to strengthen a little bit further than weekend. again, under heightened volatility. otherwise, we think u.k. banks look quite attractive. they are attractively priced. there is still a relatively high brexit premium priced in. that is the sector, u.k. financials, that we quite like. it probably will not do much during that period of uncertainty, but eventually, we think of the u.k. leaves with a deal, you are more likely to see deals rising then falling, similar to sterling. shery: are there any sectors you should stay clear given the uncertainty of when brexit will happen? joachim: i think what we should keep in mind is that even if a brexit with a deal happens, it will still be sig

when we watch what is happening with sterling, we see the sterling market, stock equities moving on every twist and turn of the brexit saga. u.k. domestics very attached to this story. the ftse 100 has seen a negative correlation. this remains a market moving story. we have seen these headlines, to go to suggest reasons doubt the deal comes through. the main sticking points remain when it comes to the dup. it looks as if ground had been made up but perhaps that is not the case. the arithmetic remains difficult. what are we hearing from brussels? i am sure that is their main concern, and what can boris johnson even do to win over the dup? anna: to give you the latest signs on what the dup has said, they have three objections, one is customs and the way custom checks would be conducted. vat is a late entry into the area of disagreement. consent remains a big issue for the dup. and was topical last week in northern ireland, and it remains so. it looks overnight that progress had been made, but maybe that is not the case. the u.k. government reacting to what the dup has said, and says talks i

the mirror, rout of this world, going with sterling and kane.it a cuddly prepare for their semifinal with new zealand at the rugby world cup. sol campbell in back in football, but has a huge task on his hands if he's to keep southend in league one. he managed to steer macclesfield to safety in his previousjob, but watched southend, who are second from bottom, lose 7—1 last night. he has brought in andy cole, the former newcastle and manchester united striker, as attack coach. the welsh rugby union team met prince charles this morning as they continue their preparations for their world cup semi—final at the weekend. his royal highness was at their training session in tokyo this morning. wales play south africa in yokohama on sunday. the team reached the semi finals after just scraping past france last weekend. that is all from the bbc sports centre for now. we are going to come back to this breaking news just emerging in the last few minutes from essex police saying that the bodies of 39 people have been found atan bodies of 39 people have been f

long-term canadian strength against pound sterling.lot of charts unfortunately. wayertainly feels that particularly when you have to leave the country. you were talking about maybe a turn in that. have significant will it be? we are up 4% plus so far this year. >> there is still a lot of headwinds for currencies like the euro. there's still a lot of headwinds. we think we can get into the 114 by nextatively easily year. we have scaled back our ambitions and thought we could get back to long-term fair value. that now seems very difficult. tom: jon erlichman out of toronto. thank you. jonathan: we are watching a big day unfold. we are expecting the withdrawal bill to be voted on a second reading. we are expecting a timeline vote to accelerate the business of the house to allow to meet the deadline of october 31. the labour party says it will vote against both of them. does boris johnson have the numbers? we are going to watch with keen interest throughout the day. this is bloomberg. >> of those who start --ry-level work, only 15% ♪ jonat

let me look at trade-weighted sterling.oise, but what is your forecast for a-weighted sterling? jane: low forecast is it is clearly rate dependent on if there is a deal or not. expectations are based on the idea that there will be a deal or compromises. from that point of view it mean sterling is likely to be traded higher against the dollar and a much better position against other currency as well. on that sort of scenario we have been looking for 130 -- 1.30 three months. as we were mentioning we had scenarios about headwinds facing the economy. assuming that there is some sort of brexit deal, the attention will be placed a little bit more on the u.k. economy. left employed including -- according to yesterday's data. bankse most central indicating a dovish position on interest rates. sterling will be faced with other headwinds in addition to brexit, and how the economy reacts in a post-brexit environment will be crucial to trying to determine what the economy will do. francine: thank you both. us. stay with in the meantim

most strategists are really sterling on -- bullish on sterling. to do with the trust that the european union will agree to an extension. i want to show you what you need to know starting trading monday morning here in europe. many strategists are talking about that there will be elevated volatility across asset. sterling will be one to watch. just last week we saw it moved 1.29..22 to also what is happening in the rates market. they will be opening at 8:00 a.m. u.k. time tomorrow. these u.k. focus domestic stocks are the ones to watch. i will bring you another update in the next half-hour. this is bloomberg. ♪ david: so why do you think some people do not believe there is such a thing as climate change? bill: they must not have taken enough science courses or something, i don't know. david: if you met with president trump, you could convince him on paris, to maybe get back in, or is it beyond your capabilities to do that? bill: someone else should do that. david: are you worried about the power of a.i. to disrupt our civilization, put people out o

harry kane and raheem sterling. raheem sterling scoring a hat—trick for manchester city.. tottenham haven't been able to say that too many times this season.. as adam wild reports amidst the light show at tottenham a desperate need to brighten the gloom. last year's run to the finals seemingly a dimming memory. fans keen to capture those good times once more. against red star belgrade it didn't take too long. harry kane a constant amongst the inconsistent this season, his header relieving the pressure. moments later heung—min son added another, this suddenly more like the spurs the supporters expected. confidence returning off and on the field, son scored the third before half—time. they game all but, the question now by how many? erik lamela with a fourth before harry kane finished what he had started. 5—0 to spurs, their biggest ever champions league victory. that gloom in those spirits lifted at spurs. we need to build that confidence, of course. but we need to go step—by—step, being solid again. for manchester city, a comfortable night too although they did have to co

a bit ofa a bit of a wobble in the value of the pound sterling. it has gone down a touch today but as you can see, markets in asia are headed upwards. brexit delays. the uk parliament delayed a crucial vote on the new european union withdrawal agreement on saturday and passed legislation that forced borisjohnson to send a letter to brussels asking for an extension to the october the 31st exit date. this morning, sterling slipped as global currency markets got the first chance to react. thursday last week it had strengthened after the prime —— thursday last week it had strengthened after the prime minister agreed a revised deal with the eu. our asia business correspondent karishma vaswani joins me now from our singapore bureau. today, monday, once again, it is very unclear what lies ahead so the pound is losing some of that value. yes, losing some of that value but not all of it. i think that is the main message that we saw from currency markets this morning when they opened up in asia. the first chance for investors to react to what happened in th

as risk reversal favoring downside in sterling. we are seeing expectations for no deal lowered on the back of the developments in the past week. i think investors are kind of in a juncture where they are slightly more optimistic in terms of the brexit outcomes, but not necessarily willing to put too much money on the line based on their expectations on how things are going to develop. anna: good morning to you. we are going to talk to one of our guests about the link between the euro and the pound around the expectations around no deal. that seems to be crucial. of market for the pound kind in limbo, waiting for the politics to clear up. are we in a state of limbo? the latest line seems to have come from mike pence. i guess many in the markets are still waiting for the rollback of previously applied tariffs? >> absolutely. i think people are still waiting for concrete developments to trade. bithave kind of gotten a more positive indications, but nothing really concrete including no announcements of terror of tariff rollbacks being

manus: referendum risk, what does that do to sterling? we give back 1.2%.get back 1.2% last week. what does referendum due to sterling? >> any proposal of referendum would be all the value of u.k. assets as well as sterling. it would be a boom for u.k. equities, assets, and property. manus: you are working on the assumption that a referendum would deliver us -- deliver a remain outcome, yes? >> i do. manus: what makes you so sure? >> the numbers we now know about the u.k., the assessment of u.k. brexit, are very clear. every single assessment has said that the u.k. will lose between 2% and 6%. that is a massive decline. the public is now aware, particularly young people. young people back then did not vote. there's a whole wave of young people who are now much more aware of the issues, more likely to vote. that will be the swing vote. exeter's have the dominated before. young people and remainders will dominate now. manus: demographics will do the damage, perhaps. thank you so much for coming to broad church with us this morning. go back to tv . his com

and the euro, which is having a better time than sterling.l close to $54 a even after that massive 9 billion plus bill we saw. coca-cola is one of the better performers, up 2.6%. better international sales having a impact. home entertainment sales down on softer year-over-year number. down 12% on some of those games. the department stores, a massive downgrade on credit suisse on brands including l brands and cap. -- and gap. financials were up a few percentage points. regionals coming in with better than forecast earnings today as well. guy: we are just getting comments from a speech be delivered in boston, fed vice chair richard clarida talking about the u.s. economy. you can see him speaking and giving some of those comments. the u.s. economy is in a good risk."but faces "evident richard clarinet also indicating the fed will act as appropriate to sustain the expansion. we are trying to understand whether or not the fed will deliver the two cuts the market has priced in between now and year end. the dollar, vonnie referencing the dollar a mo

that is what sterling could price through.son has a deal, he's going to try to get that through. what we are seeing is the d pricing of the risk that was very extreme no deal, rather than absolute confidence. at the same time, there is a that you might be able to squeak this through. he could jump over hurdles put before him. >> that seems to be what people were saying over the weekend. for sure, we take your point on the no deal risk. that has now gone down to 5% probability. , arebase case from here you on board with what other analysts are saying, that the vote is going to pass eventually and we are going to get a deal that gets through? >> it's not obvious. the vote is very tight. it looks like it comes down to about four or five votes. yes, you can see that happening, but we still feel there is enough margin here but you could see a slipup. technical to get the vote passed through, we will find that out after tonight's vote, or whether it is a more substantial delay that requires a general election to give him better numb

a the upside, if you have deal, sterling could do a lot better.t is a long way away from either of those events. it is sitting in the middle ground until it decides which way to go, bearing in mind some of the huge uncertainties about where brexit is going. guy: the data more broadly are turning quite negative, and the u.k. and europe. the bank of england is starting to be priced regardless of the brexit outcome for a cut. do you think that's right? george: there's been a huge move, particularly since the middle of september, and what markets are pricing. short sterling shifted by probably 25 to 30 basis points towards a cut over the course of the next year, so it is a big move. we saw some week retail sales numbers in the u.k., some very soft pmi's, and that's not just the case in the u.k.. it's also worth bearing in mind that these pmi's are not signaling outright recession, but they are signaling zero growth, which is something the bank of england normally would respond to by cutting interest rates. we have a rate hike, would you believe, and o

, we could see 95 revisited, baby higher in euro/sterling.nning his trip to ship field. -- two sheffield. irish media is saying that this cannot be the final landing place, and that is the way boris johnson has described it. he would like this to be the landing place, saying border checks are not acceptable, so clearly, there is a way to go, but you would expect that, whether a deal comes or not, we will see, what about what is based on what will happen over the next weeks or months? john: moving parts. we are looking with a situation from a stronger dollar to a weaker dollar, so it could go to new lows. if we see the brexit extended for a while, but, again, assuming my euro/dollar is correct, it will be modest, as i am concerned about a week sterling, so there may be less trauma there than we would sterling,about a weak so there may be less drama there than we would expect. matt: john at saxo bank. i want to point out that it is russia energy weak in moscow, and our crack will reporter is currently moderating a panel -- inis russia energy we

financial markets hold their breath could have breaks that deal be close to question sterling and stops trying to cling to their gains on hopes of an agreement to avoid that you can crash out of the e.u. at the end of the month. the i.m.f.'s to worries about growth it says the world economy is slowing to its weakest spain since the global financial crisis. and cuba unveils a new plan to tackle it so-called mule economy a black market worth billions of dollars. and it is holding its 3 business european equities and the pound us starting to slip this hour after sterling surged to a 5 month high on optimism of the brakes a deal after talking through the night the e.u. and u.k. talking again today it's hoped those talks will bring some sort of progress or maybe even a breakthrough as far as a voting a disorderly departure from the e.u. traders a cautious and they're also worried about the latest economic data it shows the number of people in work in the u.k. has fallen unexpectedly the auto industry also expects big job cuts. these rolls of fabric will soon be covering the seats of luxury m

sterling is looking fragile. johnson is making a fresh push for brexit. be heading for weakness. 1.35.und could rise to wonone currently -- korean at 174. some say the yen is unlikely to trade above 1.8. the pound in particular in focus. let's get the first word headlines from paul allen. top tradea's negotiators say talks with the u.s. are making progress in both sides are working toward a partial deal. the vice premier told the technology conference of stancil progress has been made -- substantial progress has been made. negotiators are trying to prepare a deal for president xi to sign next month. -- with cross-border capital flows staying balanced as the currency weekend in august. in a statement to the imf, he said the you want depreciation has been driven by market forces and shift in market dynamics. the u.s. named china a currency manipulator. lam --ng leader carrie after the 20th weekend of protest turned violent. protesters attacked real mainlandand some chinese owned banks on sunday. this followed a peaceful march that police had declared illega

i want to ask you about the sterling move because earlier i said where is the floor for sterling if theesn't go through and i neglected to ask you if you think the vote will go through. you actually think it will. valentin: there is a chance of it happening especially from the labor m.p.'s show up to support the deal because i think people have had enough of the whole brexit to and from and i think there is a decent chance of actually the parliament backing the deal and could see cable at 136 already next week. the move could be quite brutal, quite aggressive and we've been there before and the markets are still relatively speaking rather short. that is the big risk so from a trading perspective you don't want to be selling the pound here and as more people adopt that mentality it drives the price and the pound continues to appreciate. >> you wonder perhaps some people are getting onboard and sterling getting a lift today. declines ing did pair saying if boris johnson gets his brexit deal tomorrow rate hikes should be on the table and the view of the bank of england deputy governor and

more of a positive for the euro than it is for sterling. you are keeping an eye on sterling, but the euro is rallying today versus the u.s. dollar. half a percent, weaker dollar, but the s&p 500 is about 3000. when we close above 3000, up .6%, plenty of groups rallying on earnings, morgan stanley up 3.5%, closing out the major banks with an excellent set of results. we have the rails rallying, and we will talk about that later on with fritz. the 10 year yield, 1.76%. curious about what is happening in britain, guy. guy: the deal we have in brussels is not a deal we have in belfast, so you can see this on the sterling chart. we got a deal, it was announced, sterling rockets up towards 1.30%. isn it is clear that the dup not going to vote for it once again, so the pound comes crashing back down, which at 1.2838 is up on the week, but it has been a roller coaster ride. the negative pound is helping the ftse 100 out and the ftse 250 is positive on the day, an earnings story, and the dax is up by .3%. what happened in brussels is certainly the b

in this reaction from england's raheem sterling.ing sorry for bulgaria to be represented by such idiots. marcus rashford tweeted: proud we rose above it to ta ke tweeted: proud we rose above it to take three points, but this needs stamping out. post match, england fa ns were stamping out. post match, england fans were defiant, but today many called for action. they should be kicked out of the next qualifying period might. it's going to happen. if we were pre—warn that it has happened, it will happen again.” have been living in bulgaria for three years as a brit, and i have had to go through what you guys so yesterday. it's not fair or right, but i'm glad it's out there now. in a statement, uefa said: everyone from administrators to players, coaches and fans needs to work with government and ngos to wage war on the racists and to marginalise their apparent views to the fringes of society. former bolton midfielder... there hasn't been much of a policy, looking at it. 12 years ago, he played in the same stadium, facing the same abuse.