vonnie: and i'm vonnie quinn.european close" on bloomberg markets. ♪ mark: we are going to take you from houston to london and cover stories out of japan, washington, and spain. here is what we are watching today -- the chief executives behind the new $32 billion oil services giant, we will talk to the chief oil and gas executive on baker hughes. vonnie: policy decisions are playing second fiddle. we will bring you the latest on global, central bankers. hillary clinton's allies -- in an effort to send political damage after the reopening to clinton's emails. it

vonnie: live from bloomberg world headquarters in new york and london, i am vonnie quinn.: and i am nejra cehic. oil approaching $50 a barrel, the latest industry data out in just seconds. julie hyman joins us with the latest. julie: as we await that data, we should note that industry data out last night showed a 7.6 million barrel drawdown in oil and we are seeing a drawdown can firm by the u.s. of nearly 3 million barrels. we did see a building gasoline inventory. a larger than estimated drop in distillate inventories would theoretically be positive for oil prices, so we will be watching to see the reaction. we had this drop in inventories and there is concern that there could potentially be a further supply disruption and that is as we have that hurricane that is bearing down if not on the gulf of mexico, it could affect the florida coast. i am calling up the change in inventories that we are seeing on a relative basis, week over week and how it does compare. let me call that up. you have the most recent weekly drop in inventories all the way to the far end of your scre

vonnie? vonnie: alisa, thanks.ld's biggest maker of insulin falling by the most in 10 years. the denmark-based company slashed its long-term profit target in half because of price pressures in the u.s. the c.f.o. addressed the issue in an interview on. >> we've been telling investors we expect approximately 5% negative impact on u.s. sales next year from a lower pricing, so you can say we are only getting into the storm now. we can't in any way say that he worst is behind us. vonnie: joining us now, kristen. is it a good idea for these two companies that are such specialists in one particular thing to get together? >> they get 85% of diabetes business, whereas percentage looks different at sanofi at less than 20%. when the diabetes market came under pressure, novontis felt the pressure. onnie: why are we seeing the pricing pressure? >> it's basically because there's a lot more competition in the market. there are a lot more products in the market. pricing pressure? we're also seeing the entry of what they call simi

vonnie: i am vonnie quinn p are you are watching bloomberg markets. close for another 170 years, the current trend continues. the annual global gender gap award -- the pay gap has diverted to where it was in 2008 after peaking in 2013. comcast pete -- keeps beating the industry trend. the best third quarter in a decade. pokemon go was not enough for nintendo. sales of three ds and wii you gains. the forecast for the year. iphone,t game for the keep an eye on the market for us. that is after the company said they have flown as much as 5% after a 4% drop in the third quarter. has in seeing -- it is pulling down the other airlines as well. you can use to take a look at the measure. this is one of the benchmarks within the airline industry. pink, white in continental and in blue. all of them have been trending lower with unit revenue. these declines, southwest is the highest among the carriers. now looking at some of the other travel related shares we are watching today, hilton hotels out with a forecast that has narrowed to a little below what analysts h

vonnie: i am vonnie quinn. this is "bloomberg markets."begin to form in the markets, and that was calm. as we approach the final weeks of the presidential race, will investors start to wake up? there was a column about this subject, and he joins us now. it has been a fiery season so far, and you would not know it if you look at the marke. to what do you attribute this? >> markets since the beginning of the year have been anticipating a continuity from the obama administration to what comes next, and that presumably is a hillary clinton. there has been no perceptible rend.e in that tu what is striking about that is umult thatf the t has come, the markets have been calm. vonnie: it is fascinating. is it the idea that hillary will win or even if donald trump wins , there will not be much he can change about the status quo given how congress is? matt: as i said in the column, try finding someone who believes that. that is hard to see given what he has proposed. .e is so dramatically different it is hard to see markets would treat everything he

vonnie: u.k.inister theresa may loads up her cabinet for brexit talks with the european union. it is looking heavy on those that are pro-exit. is it a sign they may be planning a clean break with the eu? clues from afor speech by janet yellen. we

vonnie: i am vonnie quinn.is said to be moving closer to a deal to purchase dutch chipmaker nxp. bloomberg editor at large cory johnson joins us from san francisco with more. why is this of interest to qualcomm? cory: there is a lot of consolidation happening across all segments of the semiconductor business. there aren't a lot of deals that are left to be done out there. consolidation is the order of the day. operatingunity for margin reduction is available. the like-minded companies are .ooking at this qualcomm, while very different than nxp, is not completely dissimilar in the way some of the other companies are. obviously needll in the middle at some point, but will it be on terms or valuation? cory they will: meet in the middle or not. they haven't been able to do that thus far. what we understand from alex sherman and ian king of bloomberg news is a difference of 10%. the structure of the deal is quite different. an xp, of course, would like all cash -- nxp, of course, would like all cash. qualcomm would

vonnie: and in new york i'm vonnie quinn.ching the european close on bloomberg -- "bloomberg markets." ♪ we are going to take you from san francisco to washington, covering stories out of the u.k., italy, and wall street in the next hour. you may see more easing the are we see less. in europe, economist berdych the ecb will extend qe in december before the central bank and even think of serving down area vonnie: approval for italian banks, we will examine one of the biggest in a decade and how we could see more ahead. is out with its third-quarter earnings after the bell today after disappointing subscriber growth last order, analyst are estimating a pickup and users focusing on international reach.

vonnie: i'm vonnie quinn.ching the european close on bloomberg markets. ♪ mark: we will take you from covere to london and stories out of wall street, italy and washington. here's what we're watching today. stopped jumping 31%. chief executive preparing to present a new business plan. be as pleased tomorrow after the report and its earnings? at&t will acquire time warner. hear from one media expert who says a company like apple could swoop in with a bid. t-mobile beats estimates as customer growth outpaces verizon. the ceo joins on their latest earnings

vonnie: -- vonnie: mark meyer, there. battle over brexit moves into court.he lower pound is affecting some items. this is bloomberg. ♪ vonnie: live from london and new york, i'm vonnie quinn. mark: and i am mark barton. towards the end of the session. let's get back to brexit and the courtroom drama that is well underway. calling prime minister theresa may's plan to trickle article 50 in on constitutional power grab. here to take us to the twists and turns, bloomberg news brexit editor. what have the lawyer's been arguing in front of the three judges today? >> they are trying to argue that theresa may, despite the legal advice she has taken from the government, she doesn't have the prerogative to trigger article 50 by herself. article 50 the thing that gets the two years of exit talk's going. she thinks she has the power to enact it alone. argues today arguing -- the lawyers today arguing she can't do it on her own. how serious the prime minister is taking this, she will put forward on the 17th the attorney general to argue the governor's case. >> she is sen

vonnie: i'm vonnie quinn. you're watching "bloomberg markets."he capitalize is happening in toronto. the most important investment conference in the year. bringing together investors from well regarded funds, pension planning, answer others. erik schatzker is there with a special guest. erik: yes, one of those top investors, vonnie, is gnat zilkha, co-head of credit, k.k.r. helps oversee $30 billion. good to make the trip up to toronto. you believe that the key to understanding credit opportunities is to look at it through the lens of what's happening in the banking industry. explain. >> that's absolutely right, erik. we have seen through the financial crisis a significant transformation and the behavior of the banks driven in part by regulatory changes and changes in their economics and the way that they can earn returns on their capital and it's created enormous white space for alternative lenders like us to come in and provide really attractive opportunities for our investors. erik: banks around the world aren't all the same. there are differe

vonnie: we will take you from washington to london and cover stories out of new york, venezuela and japan. hillary clinton's allies escalate attacks on fbi director james comey in an effort to stem political damage after the reopening of an investigation into her e-mails. is this latest october surprise enough to change voters minds? the fed and the boj are expected to hold steady. we will also look at policy moves at the bank of england and questions around governor mark carney's future. general election combines with baker hughes creating an industry giant with a broader suite of offerings amid the ongoing slump in crude prices. we are 30 minutes into the u.s. trading day. julie hyman has been keeping an eye on the first 30 minutes of trading. julie: we have a mixed picture. little change overall today. we are seeing more movement in oil price is. .efinitely seeing some movement below $48 a barrel as we are still not seeing any progress at that opec meeting in vienna even though earlier ali

vonnie: i am vonnie quinn. you are watching "bloomberg markets."upply and demand can come back earlier than expected last year if turning outflows is implemented. i understood that the producers of opec countries and russia are discussing to have an agreement in terms of the oil production prospects, cutting or freeze. hear statements from them soom. t -- from them soon. this would affect markets. ramped up a couple of dollars. agreements would push prices up. having said that, one needs to take two factors into consideration. one, higher prices. what would be the impact of this process on the very fragile oil and?dem last year oil demand increased by 1.8 million. this year, we expect without this price increase 1.2 million, a significant decrease. expectprices, one may demand to be slower. efficiency improvements. this is number one. number two -- >> good morning. it is manus alongside anna. we heard what you said. the most important thing for the markets to understand is we understand that the russians would prefer a freeze rather than a cut. you

vonnie: thank you. let's check in on a bloomberg's word news. >> and afghanistan, a police official says he will have been killed in a suicide car bombing in the capital. the official said the attack happened in the city and that can police officers and four civilians were killed. the city has been under attack by taliban militants who officials say enter the city earlier in the day. two missiles says were fired in the direction of an american destroyer. the uss mason in the persian gulf. officials say they came from territory held by shiite rebels in yemen. the missile fire comes after a ballistic missile launch from yemen apparently targeted a saudi airbase near mecca. it was the deepest strike yet. and for president francois whole lot since he is not yet decided if he will meet with president vladimir putin when the russian leader comes to paris 90's from now. thatoise alonso says action in syria and people and aleppo are suffering were crimes. that will be the subject of a national investigation. ol

vonnie? vonnie: more insight into the global economy. we will speak with joe stiglitz of columbia university. 4:30 p.m., london time, this is bloomberg. mark: live from london and new york, i am mark barton vonnie:. i am vonnie. you are watching bloomberg markets. time for a look at the biggest business stories in the news. tesla motors and city shareholders will vote on their merger. companieson musk led merged last july but they faced shareholder lawsuits. tesla says it will give shareholders more details and updates next month. samsung electronics and the u.s. comes from a product -- consumer product safety commission agreed to recall smartphones. it increases the number of devices that can be returned to 1.9 million. owners will be able to exchange their devices or receive a refund. has -- government the decision will have little impact on the business but it could send a signal to other banks and hedge funds with criminal records. a representative couldn't be reached for comment and the labor department didn't immediately respond to

vonnie: i'm vonnie quinn. begin toin the u.k. operations, officials are starting to rent their heads around one key hurdle. internaluthorizing risk models used to calculate capital requirements. so why are these formula so important, and what could happen if a bank does not get approved? with us in on iran is now. talk about why this is so important with european banks. >> this is all international capital regulations, which a lot of people know by now. banks in europe have calculated their calculated requirements. in the u.s., we are a little behind. in europe, they have been ahead. , since have discovered since 2010, the u.s. and europe, and even within europe, regulators have different methods of improving models. when the u.s. or asian banks, or british banks try to move operations to other parts of europe, they need to get licenses. brexit means they have to get new licenses from european regulators, then they are not going to have -- they have to, with new formulas and get them approved. this could be a delaying issue for t

this is bloomberg. ♪ vonnie: live from london and new york, on vonnie quinn. -- i am vonnie quinn. the close of the european markets just under 10 minutes. one of the big companies in the world is seeing some challenges ahead. nicely forecasting the slowest sales growth in more than a decade. barker explained the slowdown in growth and rising earlier today on bloomberg television. >> global environment as low growth for a while. and pricingowly will pick up very slowly, slower than we thought, hence our projection for the year. this goes down to pricing. >> i think it is also nicely deciding not to increase pricing in some markets. for the long-term, it is hard to get in. mark: it is not working for dannon. the volume growth is declining. can sustain an increase behind the volume growth? >> it can't if it keeps innovating properly, and that is the key. it looks like nestlÉ is doing that. as we sit here today, i think they are doing the right thing on protecting volume rather than price. vonnie: what is behind the week consumer demand. the products have not gotten any less delicious

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

vonnie: i am vonnie quinn in new york.of ever core bouncing around as they reported revenue was up 38% year over year as the company advised more clients with m&a heating up. ,nderwriting fees were up commissions were down on lower trade volume. schlosstein, ralph ceo of ever core. we were just speaking a moment ago for wreaking on air and you were mentioning what used to be an independent boutique has really become one of the behemoths and that is what is happening. the banks are taking a backstop and advisory boutiques like yours are becoming the major investment banks. ralph: one of the exciting things to us is that clients increasingly are embracing the independent,. advisory model. pure advisory, model. number 6, 7,to be or eight in advisory fees. vonnie: you did more than citigroup? ralph: citigroup, ubs, deutsche bank, barclays. say aboutat does that the major banks globally, are they done? ralph: not at all. some of them are still doing well. there is always going to be a very significant role for large , andcing b

vonnie quinn. you are watching the european close on bloomberg -- "bloomberg markets." ♪ we are going to take you from san francisco to washington, covering stories out of the u.k., italy, and wall street in the next hour. you may see more easing the are we see less. in europe, economist berdych the ecb will extend qe in december before the central bank and even think of serving down area vonnie: approval for italian banks, we will examine one of the biggest in a decade and how we could see more ahead. is out with its third-quarter earnings after the bell today after disappointing subscriber growth last order, analyst are estimating a pickup and users focusing on mark: haveal reach. a look at where european equities are trading right now here on this monday session. you know the function, global macro movements, calling for a first weekly its increase in five weeks against the dollar with these other rates rising. amidst all of this talk of allowing inflation to overshoot credit default swaps and c

vonnie: i'm vonnie quinn. you're watching bloomberg markets.g political discord are threatening to derail the global economy. that's the latest warning from the imf. tom keene is with me now. interview theto chief economist at the imf. what can he possibly say? tom: he can't. what's interesting is the ambiguity of the report. frankly it's a fairly positive report even though you read paragraph to paragraph and there's a lot of gloom. i'm going to ask him about the first sentence of his summary. strong sustainable balanced inclusive growth eludes us. the median forecast is being downgraded. longer-term we don't know what kind of tit-for-tat tariff detection is an is going to be in place. tom: they do mention it early on. it dovetails a little bit into the election. clearly madame lagarde has said trade matters. that is one of the messages year as well. we do not have him yet. good to see you. this is also about the existential threat to the world economic order. it is an existential threat in terms of market dynamics. sterling breaking through i

i am vonnie quinn.ou are watching bloomberg "markets." time for a look at the biggest business stories in the news right now. buying a startup company to expand the effort and virtual reality. iphone working to enable i've movements to control digital screens. twitter may eliminate about 300 as soon as this week. twitter loses money and trying to curb spending. have notrs in germany loginany evidence folks -- investigators have a fairly good picture have the scandal evolved. that is your bloomberg business flash. julie hyman looking at the fallout from the under armour tumble. julie: at one point today down the most in more than seven years. armour has been on a rapid pace of growth. even in the quarter, earnings beat estimates and sales were up 22%. this is the 26 straight quarter of more than 20% revenue growth. however, it is set to slow down. revenue will increase in the low 20% range in 2018. take a look at the bloomberg. i have made a revenue growth chart going back to the end of 2008. essentially

vonnie: i am vonnie quinn.rt with the headlines from first word news. mark crumpton has more. mark c.: as u.s. election day draws near, the trump and clinton campaigns are spending lots of cash. inmp spent double his amount august. employees roughly 350 and consultants, saying that september was the best fundraising month for both candidates. majority of voters, nearly 70%, say the loser of the white house race should accept the results. say loser should challenge the outcome. in northern iraq, more fighting today after militants armed with hostages ines took kirkuk.und care cook -- three militants stormed a power plant, killing 11 workers before blowing themselves up. the pulse nightclub is open for the first time since the shooting rampage. left 49 people dead. it is the worst shooting in modern u.s. history. by -- globalowered news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: thank you. a quick check on u.s. stocks. the dow is down

bloomberg's vonnie: first word vonnie: oil strategist.rn. -- coming up across the globe this year, why are there different arguments on why to respondent prevent devastation? we will explore a two-day passes quick take. this is bloomberg. -- in today's quick take. this is what burke. -- this is bloomberg. ♪ vonnie: you are watching bloomberg, i'm vonnie quinn. mark: i am mark barton. here is what we are watching today. trouble continues to unfold in south africa. germany is pushing to see a swift settlement for mortgage-backed securities. shipping thee deutsche bank business models. the bloomberg quick take team breaks down different targets on how to respond and prevent devastation. vonnie: the country was moved to a junk rating. the is the possibility of increase of borrowing costs across the table. thinking about investor concerns on movements in iran. collect they hope in time they will see through this. been summoned to appear in court next month on fraud charges. mark: germany wants to see a swift settlement between deutsche bank an

vonnie: i'm vonnie quinn. you are watching the european close on bloomberg markets. nejra: we will take you from washington to paris and cover stores at a wall street, the u.k., and the middle east. here is what we're watching. shares surged to most in seven years after it announced a deal to buy janus capital. we will hear from the henderson ceo on what the $320 billion money manager will look like. is said totsche bank have planned a thousand job cuts as the ceo heads to the u.s. for a possible settlement talk with the department of justice. the british pound falling back toward a three-decade low after prime minister theresa may stated she is writing for a hard brexit by march. let's have a look at where european equities are trading right now, just under 30 minute to the close. let's start with the big picture. german dax. markets are closed today in germany, so trading is below the 30 day average, 19% below. it is the u.k. ftse 100 that is leading the gains in western europe, up 1.3% right now. this is la

i'm vonnie quinn.lcome to bloomberg markets. ♪ david: we're live from bloomberg's world headquarters in new york for the next hour. we have that two big economic reports. private payrolls cooled. a new acquisition path focusing on media companies. what is next on at&t's's agenda? , a multimillion dollar fine looms. the bank should fight back, more later in the hour. we will check on the markets an hour before the close. a pretty steady rise as we had an early day lift and stocks have stayed there. helped in part by stronger than estimated economic data this morning on service industries as well as factory and durable goods orders. all of that is helping to power the major averages higher. and financials are the two best-performing groups. energy at 1.8%. we have the rotation into them and out of the interest rate sensitive groups. telecom come utilities, consumer staples are climbing today p rolled and that some of the gains of the s&p 500. energy andmove and oil prices, data once again showing a drawd

vonnie: u.b.s. reports profits fell, and the securities unit was hurt by a slump in equities trading. the c.e.o. talks to bloomberg about the latest quarter and where the firm stands on cutting costs. and before an election in iceland, a young party called the pirate party is on the cusp of succeeding. we'll speak to the candidate or prime minister this hour. mark: we're heading for our first weekly loss. global macro movement, equities are lower for the fifth consecutive day, and they haven't done since the middle of september. currencies, bonds, credit fault, it's very much a focus on earnings that's moving investors today. look at this decline. since rtis, biggest fall 2002 because of pressures on price in the u.s., which is its biggest market. it also trimmed its targets for this year for the second time. this reflects significantly more challenging environment in the u.s., as pharmacy benefits managers in negotiating the aggressive discount on new and expensive diabetes treatments. novo in rece

i do love vonnie's chart.ok at where european equity markets finished the tuesday session. this is bloomberg. ♪ noon in new york. i'm vonnie quinn. welcome to bloomberg markets. from bloomberg world headquarters in new york we are covering stories from new york, london and beijing. we are live from bloomberg's the year ahead summit where business leaders convened to discuss the key issues for 2017. our bloomberg businessweek editor is speaking with the ceo of tiaa. you aboutl tell clinton's secret weapon in florida. we are just two weeks away from the presidential election. are swapping corvettes for comfort as sports car sales fall. julie hyman joins us with the latest. julie: we are seeing more of a pullback. we got

vonnie: i am vonnie quinn. you're watching european close.york to brussels, covering stories out of washington, the u.k., and asia. here's what we're watching today. investors in europe seem more confident unprecedented will continue a bond -- the on the expiring date. third weekly drop due to mario draghi. vonnie: brexit dominating meetings in brussels. a surprise out of canada the last hour is the trade minister says the free trade agreement with the e.u. has collapsed. potential big tobacco tight. british american tobacco offering to pay $47 billion for the rest of reynolds american. mark:

vonnie: that is jeff currie.he goldman sachs global head of commodities research for oil. $50 in new york, $53 in london. a look at some of the biggest business stories in the news now. at 100 28-year-old aluminum producer is splitting into two companies saying third-quarter earnings trailed estimates. business declined. alcoa changed its legacy metal producing business from its value added hearts operation. the british retail consortium has joined leaders warning about a price hike in u.k.'s doors is britain exits the eu without locking down a good deal. think on the behalf of the entire resale industry it is important to maintain free trade . vonnie: he tells bloomberg there is still a lot of fluctuation from brexit and how it will impact operating costs. retail has benefited from multicultural members benefited by the 28-member bloc. ahead, the pound sliding, the fourth day, questions being raised about the possibility of the u.k. remaining in the same market after brexit. he will have the latest, next. this i

i am vonnie quinn. barton, welcome to -- i am david gura, welcome to "bloomberg markets." we are covering stories from san francisco and hong kong this hour. microsoft shares surged to a record high today after first quarter sales and earnings topped estimates. a series of upgrades at mcdonald's global rotations -- global locations boosted sales. maker is try to make the product less intimidating to millennials. let's go to julie hyman for the latest. julie: there are so many possibilities, i hope you ask if cognac can be paired with a big mac and fries, bringing all of the stories today. we have little change once again although stock seven bouncing off of the lows. the

mark: vonnie.nie: still ahead, we hear from the secretary-general on his efforts to implement a deal limiting oil production. this is bloomberg. ♪ mark: this is the european close on bloomberg markets with under five minutes to the end of the session. vonnie: live from new york, i'm vonnie quinn. both the u.s. and europe are lower today, still holding above that 50 collar -- $15 per barrel. opec works toward stabilizing the market. we asked the opec secretary-general about russia's latest commitments to join the efforts to limit production. >> you hide yourself from president vladimir putin here at ae world energy congress, commitment at the highest level of government. his able minister had been with walking hand to hand, side-by-side, shoulder to shoulder. we are confident. >> we also asked if he is aiming to get oil up to a specific price level. >> we are not targeting a particular price but we are cautiously optimistic that what we have seen with the u.s., nearly five weeks now, that this is pr

vonnie: i'm vonnie quinn. some of theook at latest business stories.eneral electric is trying to buy denmark-based wind power. the maker of winter and nine planes it will enhance ge's ability to participate in the wind market. as a stand-alone business within the renewable energy unit. a potential deal would team canada's largest alternative asset manager with the maker of the bauer and easton brand. setting the stage for a formal takeover bid. hearupreme court will not appeals from tobacco companies that wanted to reduce payments owed to maryland and pennsylvania. a federal arbitration panel cut the payments. the justices are leaving those rulings in place. that is your bloomberg business flash update. it's an unprecedented in the gop establishment. donald trump opened up a new front in his house speaker with paul ryan, saying he is a very weak and ineffective leader. trump unhooked himself further from party leaders, saying he is unshackled. defend trump.o what kind of impact will this republican civil war have? paul ryan rocking back his endorsement

vonnie: i am vonnie quinn.esla shares moving between gains and losses ahead of their quarterly earnings. elon musk is under growing pressure to show investors profitability as analysts slash their estimates. joining bloomberg news is dana hull in san francisco. it seems he does not have a time limit when it comes to investors. he has been the golden boy up to now. why should that change? tesla has growing ambitions to move beyond clean transportation to clean energy and they have a lot on their .late they are building the giga factory in nevada and trying to acquire solar city so all of that undoubtedly requires a fair amount of capital, but musk says they are not going to need to raise money this quarter. david: i think back to the letter you got your hands on the elon musk wrote to his staff telling them to essentially move mountains before the model three hits production. what has been the ramifications and how will that filter into the earnings report? dana: today's earnings report is going to be a little d

vonnie: u.k. prime minister theresa may loads up her cabinet for brexit talks with the european union. it is looking heavy on those that are pro-exit. is it a sign they may be planning a clean break with the eu? clues from afor speech by janet yellen. we will tell you what to expect from the fed chair. have a look at european equities, under 30 minutes left in the friday session. we are rising today. look at the equity gainers today, greece up 2.5%. belgium up 1.6%. do yesterday were chinese exports slumped the most since february, pushing risk appetite lower. factory is about inflation rising for the first time in almost five years. this is sterling. this is pound-dollar. ons is pound-dollar 2016, schedule for our second weekly drop amid brexit concerns. mark carney is touring the country. deutsche bank, you can see it there. germany's biggest lender forecast a decline to 1.15. bank of america, based on its current rates of decline sister lynn will drop to 1.05 by the end of next year -- sterling

vonnie? vonnie: a quick check on u.s.s, the indices not too far removed from where they were earlier in the day. the dow is up 20 points, that's . gain of .he nasdaq is down 2/10 of 1% let's get more life on a nasdaq market site. opening after him modestly higher for the nasdaq today, we had the index lower. this has been true since about midmorning. one of the big drags today are the shares of alphabets, the internet giant reports today after the close. investors are looking for a dollar $.61 per share in point $2 billion in revenues and most analysts seem to think the company is likely to put up an in-line quarter driven by strong ad revenue growth. james over at wedbush has a different idea. he says his check indicates that search growth could moderate. he has an underperform rating on the shares of alphabets. this suggests it he proves true, this stock recently trading at all-time highs. priced to perfection, if they put up less than a perfect order and guide, it could ding the stock. as for a stock trading higher on

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn.e for the latest bloomberg is this flash. federal judge in san francisco has approved volkswagens 14.7 billion dollars settlement in the diesel in emissions scandal. that is likely to be the biggest portion of volkswagens civil liability worldwide. officials say the owners of more than 300,000 hondas have not had their airbags repaired. warnings fromof the auto makers and regulators that the insulators have an extremely high chance of a rupturing. one death was reported just last week. 69 million airbags have been recalled because of a possible rupture. caterpillar has cut its revenue forecast for the year. by lowllar has been hurt commodity prices. the company has not posted and annual sales increase since 2012. that is your business flash update. breaking headlines from the department of justice. efforts on election day . the department of justice saying it will announce monitoring electionser to the day. specially trained fbi will work in each election district. u.s. attorneys and f

vonnie: and i am vonnie quinn. this is bloomberg markets.oting begins next week in the battleground state of north carolina. and hillary clinton's campaign is hoping to rack up a win well before election day. with 15 electoral votes at stake, north carolina is crucial for donald trump whose sagging numbers sagging poll leaves them a narrow path to victory. president obama won the state by fewer than 14,000 votes. the republican national committee has spent nothing on tv as for its presidential nominee donald trump. in previous campaigns, the rnc has spent tens of millions on tv ads. rnc officials say a lack of spending has nothing to do with mr. trump, but rather a decision that tv ads are not an efficient use of funds. the men accused of setting off bombs in new jersey and new york is scheduled to be arraigned today from his hospital bed. ahmad khan rahami has been in a new jersey hospital after he was captured by police. he is asked -- he is suspected of leaving explosive devices in new york city and new jersey. the king of thailand has di

vonnie, oliver. vonnie: i think it will go do some yoga to get over that.ook at the weight european equities finished the thursday session. four days of the klein. that is the worst run we have had since the middle of september. it is all down to earnings. we're in the middle of the earnings season. this is bloomberg. ♪ >> it's noon in new york, 5:00 p.m. in london. i'm vonnie quinn. >> i am david gura. welcome to "bloomberg markets." >> form bloomberg's world headquarters in new york, we are covering stories from washington to geneva. the company cutting 9% of its workforce. we will break down the company's results. if donald trump wins the election, the new irs chief. halfway through the trading day, julie hyman is standing by with a look at the latest. e: we have been bouncing between gains and losses for the last several days as investors try to a earnings and the other macro news out there. have&p are higher but they been dancing between gains and

vonnie: portugal secretary of state for treasury joins us this hour. the country's bonds are among the worst performing this year. we will ask felix how he plans to attract more investment in portugal. about 30 minutes into the trading day in the u.s.. julie hyman has the latest. julie: we are seeing stocks in the u.s. pullback a little bit this morning. all three major averages trading lower at the moment, not by that much but we are seeing groups like health care pullback as drugmakers continue to come under fire, particularly mylan over the pricing of epipen and we are seeing financial shares after a big advance yesterday. oil prices continue to be in focus. they continue to move higher and energy shares are one of the soul groups of the s&p rising today. oil above $50 a barrel. no specific catalyst, just a general upsurge we have seen recently on this talk about opec cut plan. cuts -- as well as that supply data yesterday coming in with an unexpected drop. we've been watching it yields in the united states. claims data that came in lower than estim

vonnie: i am vonnie quinn. the release of the emitted it i will not counsel moments, but nine minutes, let's put it that way. [indiscernible] i'd didn't think it will be too hawkish. there is -- also remember there are three dots not expecting any rate hikes. it seems i the disagreement is little elevated at this point. by no means that suggests that share yellen is losing control. come time to raise rates, widespread support. you can see where the median estimate comes down, the terminal comes down as well, 2.87, does that keep coming down every meeting? >> it has been a downward trend in that recently. that is very interesting to see the discussion around what is going on on that front. that neutral rate, and what is going on with potential growth as well. david: do you anticipate we will learn anything about the timing? >> this and that and when, it will be interesting to see how they approach what will drive their decision. in the last statement, they did not materially bound rates, the description of econo

vonnie: and i am vonnie quinn.republican recoiling at donald trump's proposal that he would accept the results of the election if he loses. senator lindsey graham says donald trump is doing the country a "great disservice by selection the election is rigged." twitter says that mr. trump was the subject of nearly 60% of the tweets said about the candidates . the social media platforms as the top tweeted moment was when donald trump and hillary clinton's discussion about the treatment of women, the second-most tweeted was donald trump's refusal to say if he will accept the results of the election should he lose. iraqi special forces has joined the battle to retake mosul from the islamic state. were aided by air strikes and artillery from the us-led coalition. the attack is now in day number four. a scientist at the european space agency are downplaying the likely lost of its mars lander. they say a wealth of data sent back by the experimental promo help them prepare for a future mission to the red planet. the lander

vonnie: i am vonnie quinn.sbc, stephenl by major says yields will be no higher in five-year time than they are today, citing the prospect of continued monetary policy. he made the case on this morning's bloomberg surveillance. >> this structural backdrop to markets is getting worse. it is not getting better. i look at the charts and everyone has got the same charts. yields have been falling. this move to lower natural rates is not a new thing. we all understand the structural backdrop so why are people thinking that the problems will suddenly go away? so on the one hand i think our goal is quite modest. compared to what others are saying, it seems quite outrageous. >> let's bring this up with mr. major. steve major, the other part of your report, a lengthy report, there is the volker over on the left. as we have not cleared markets, you make it very clear he leveraging has not happened. why is that? >> the facts are quite clear. in the last 10 years, there has been an increase in reverend -- leveraged safety. d

vonnie: i'm vonnie quinn. this is the european close.speculation to how the markets will react to a reserve rate hike. mark mobius is executive chairman at templeton emerging markets. at the 10 year history there is absolutely no correlation between interest rates and the markets. it's really interesting. >> we have had a temper tantrum in the past. >> the market went up with interest rates. i would say that we could be blindsided when ray go up. they will go up by a very small amount and i don't think it will be material. a lot of the emerging markets are dealing with 5% 6% interest rates. i'm not that worried about it. have seen a rally and emerging-market stocks or equities. really beent keeping up in terms of number and size. why is that? basically because the latent fear that people have of the markets generally. you can see more and more ipos in china. a lot of the companies coming in to hong kong do their ipos. as the emerging markets continue to outperform you will see more ipos. >> how do you choose what countries are more inves

vonnie: in new york, i'm vonnie quinn. time for the bloomberg business flash.dman sachs has cut its estimates are through 2017's. the forecast will be up 5% this year, 10% next year and 5% in 2018. low interest rates and peeking margins will hold down the growth. td american trade has agreed to by scott trade. the price, $4 billion. the bank is td ameritrade's largest stakeholder. that's your business flash for this hour. time at&t's deal with warner is reverberating through the entire content and distribution industry. it -- heloway called appeared alongside tony dwyer. galloway says the deal may give verizon pause over its own pending deal with yahoo!. outf yahoo! doesn't work and people forget about it, at&t is betting on content. going for something very aggressive that has a decent chance of regulator push back. game changing transaction. >> i agree with you and it changes the game theory and strategy of the business. how do they react this morning at disney? the company i thought that could potentially come in and top it and all of a sudden is doing a lot

vonnie: a cool day in new york city. live, i am vonnie quinn.rg markets p let's start with headlines this afternoon. mark crumpton is in the newsroom with more. mark: a lawsuit filed in federal court today to start north carolina counties from her moving people from voter rolls through challenges filed by individuals. the national voter registration act prohibits clearing names with more than 90 days from the federal election. the law does not place the same restraint on individual challenges. the islamic state has claimed responsibility for a suicide bombing at a popular baghdad market that killed at least 10 people and left dozens more wounded. this was one of several in the iraqi capital over the weekend which left a total of 17 people dead. italy has been rocked by his third powerful earthquake in two months. john reports from rome. >> no deaths have been reported but the earthquakes have destroyed a cathedral, a medieval tower, and other landmarks in the central regions. 6.6,lick was a magnitude the strongest in 36 years. theprime minister

vonnie: this is bloomberg "markets." i am vonnie quinn.p and hillary clinton proved contentious at times. here they traded jabs of the clinton e-mail controversy. >> lives have been destroyed for doing one fit of what you have done, and it is a disgrace. >> everything he just said is absolutely false, but i am not surprised. it is awfully good with the blasts that someone with the temperament of donald trump is not in charge of the law of our country. next week as you would be in jail. the seniortoday, economic adviser to the trump campaign said why he still backs donald trump. think there could've been more last night talking about growth but the contrast was still pretty clear. that he wants to cut taxes and she has a pretty big increase going on. there is corruption in washington. he made 250 model -- he talked about making $250 million, and why haven't you contributed anything to the campaign? that was a way to focus on the amount and magnitude of corruption. >> the events of the weekend, how difficult is it make you to come on a progr

vonnie: i am vonnie quinn. it is time for options insight. me today is mark sebastian, managing partner, and he joins me from chicago. good to see you. let's look at what has been happening today. .4%,ts are down about turning round from the third quarter where we ended in a positive. your note sounds like more than a little bit of caution. why is that? >> i think we saw a little bit of windowdressing on friday as we headed into the corner. the pullback not unexpected. there was a rumor there would be some deutsche bank settlement over the weekend. that did not happen. we are finding they are not close to settling. it is looking more like there could be a real problem with deutsche bank. if there was a problem in the united states with a major bank, i would be less concerned. theiroblem is the e.u., ability to turn a manageable problem into a huge financial nightmare cannot be underestimated. worried there could be a run at deutsche bank. markets,d roil especially if the e.u. does not step in and fix it. look at greece last year. a manageable

vonnie: thank you.et's get a check of the headlines. it is mark crumpton. hurricane matthew, the powerful atlantic storm, slammed into western haiti today and could be taking aim at the u.s. east coast in the coming days. the storm left two people dead in haiti and four others were killed into medicare and republic. that brings you -- the death toll to at least eight. tok scott warned residents take precautions, saying we can rebuild your home, your business, but we cannot rebuild your life. the european union is meeting meet several outstanding conditions by next week. the eu says if that happens in time, $4.1 billion can be released to help strengthened the country's economy. the primus to his on monday to debate congress on this so-called milestone. the federal judge presiding over the south carolina church shooting trial says he wants to avoid undue stress on the victims families. the board plans to recess during the thanksgiving, christmas, and new year's holidays. an attorney representing families

causing the stock to go lower, vonnie. thanks for that, abigail. -- we will speak you again in a little bit here you hearing from ibm and netflix later today, to name a few. joining us now from san francisco, cory johnson is following all of the earnings. you know that i want to talk about. but we are going to wait. [laughter] vonnie: ibm announcing after the close. cory: trying to prove that you can change a fan belt while the engine is running. trying to move from being a software service hardware business to be software as a service. computing onloud, that service. you will see worse sales but better earnings. but we have seen worse sales without better earnings. 17 quarters in a row we have seen declines in sales from ibm. showing declines on an annual basis. this business is rapidly shrinking. every single quarter, every single year. look at those yearly declines, it's only expected to be 3% this year. it's really been a problem for the company. look at that net income number. it's a big problem for this business as i