i'm willem marx. these are your headlines fashion fail europe's luxury giants take a tumble on the catwalk after morgan stanley cuts the sector to underweight and lvmh's third quarter sales figures fail to convince investors. >>> italian banks trade lower as salvini says europe's institutions are ganging up against his country. >>> and the global bond selloff cools as treasury yields retreat from multi-year highs after president trump blames the fed for moving too fast. >> i like to see low interest rates, the fed is doing what they think is necessary, but i don't like what they're doing. >>> sterling rises on hopes of a brexit break through as british minister dominic raab says it is time for the eu to match britain's pragmatism >> we should stay resolute and focused and i feel confident we will reach a deal this autumn. >>> there's been a bit of soft start to today's trading the stoxx 600 is down more than a tenth of a percent as you can see, if we look at the individual markets behind the numbers,

willem marx is in brussels, but let's begin with the slowdown in china.unice yoon is live in beijing with more on that. >> thank you very much china's economy is growing at its slowest pace since the global financial crisis. q3 gdp missed expectations, but it did put the economy on track to meet its full-year growth target these numbers were anticipated because it's the first time when investors and economists could get a sense as to whether or not the u.s./china trade war is having an impact on the chinese economy. there's some evidence to suggest it's starting. exports for the september quarter were surprisingly strong, but the industrial production has been slowing down it dropped again in september by 5.8% so what's happening is that manufacturers have been front-loading shipments, because they want to make sure they get all of their shipments out before the tariffs come in the factory output has been weaker, which suggests the pop we're seeing in exports is probably only temporary. with all the new tariffs coming into play, a lot of manufacturers hav

i'm willem marx. these are your headlines this morning. the comeback kids. european equities trade higher after the u.s. sees higher volumes and the dow erases a more than 500-point decline. >>> strong sales for gucci help kering beat expectations leading the sector higher. >>> and deutsche bank in the doldrums trading revenues take a hit in the third quarter but the bank says it will still be profitable for the year as it strengthens its capital base we'll speak to the cfo at 12:30 central european time. >>> and brussels and rome face off as the eu rebuffs the populist's government proposals. >>> just to bring you some flash numbers for october for eurozone pmi, the composite pmi is 52.7 against a reuters poll, expectation of 53.9. that's down from 54.1 in september. in terms of services, the number is 53.3, that's against expectation of 53.5, down from september, 54.5. manufacturing is 52.1, against an expectation of 53, that's down from 53.2 all three of those down. you can see the euro is weakenin

i'm willem marx. these are your headlines >>> italian banks rally after a report that rome could be ready to reduce the deficit target, but mateo salvini claims there are those in europe who want italy on its knees. >>> a remarkably positive outlook for the u.s. economy, jerome powell says these are extraordinary times. >> the u.s. economy is doing extremely well inflation is up to 2%. i spent a long time indicating that i think inflation needs to get up to 2%, and here we are. i think things are going well this is something that can be continued for a number of years. >>> tesco shares sink after the grocer misses half year profit expectations thanks to weaker sales in asia and mainland europe. >>> and stock in reverse aston martin slips in its long-awaited debut a share price of 19 pounds values the british carmaker at more than 4 billion pounds >>> welcome to the show. to bring you some eurozone pmi numbers, the final numbers for composite future output, 62.1 against the flash of 61.9. services pmi

i'm willem marx. these are your headlines dow futures point to triple digit losses as the brief relief rally looks to end after alphabet and amazon sink in extended trade. >>> rbs misses third quarter expectations as the bank books another 100 million pounds of impairments. >>> lafarge hholcim shares get lift on the top and bottom line the and raises its sales guidance. >>> and electrolux shares tumble to the lowest level in four years after slashing its demand outlook and blames the impact of u.s. tariffs >>> european markets have been trading for just over an hour. it's been an incredibly weak session. as you can see, a real sea of red this is after amazon and alphabet reported disappointed outlooks yesterday dragging those two stocks down. filtering through to asia where we saw losses across that region europe is proving to be quite a victim as well in addition to those factors, plenty of corporate earnings in europe the stoxx 600 is down about 1.2% today. let's look at the sectors and see how the

i'm willem marx. these are your headlines treasury yields jump to the highest level since 2011 and pulling up rates on german bunds. >>> i tatalian deputy prime minister mateo salvini says there will be no backtracking on the debt target. >>> and bank of finland governor ollie raines says he wants to stick to commitments and praise the rules as he looks at the ecb's forward guidance. >>> and danish authorities order danske bank to reassess its capital levels >>> let's look at the european markets. a lot of red on that board the stoxx 600 down almost half of a percent at this stage of the morning. let's hone in on the individual markets. all four of the major indices in europe are in negative territory. the ftse 100 is down more than a half percent the xetra dax is down a third of a percent. the cac 40 is down 0.66% the ftse mib in italy down 0.40%. let's check in on the sectors across the continent oil and gas is up 0.62%. household goods down almost 2% at this stage. utilities down 1.5%. the italian

i'm willem marx. these are your headlines this morning. >>> wpp shares plunge after weakness in the u.s. weighs on sales and the ad giant slashes its full-year guidance. >>> a bitter taste for ab inbev. the beermaker drops towards the bottom of the stoxx 600 after it halves its dividend. >>> shares in abb open sharply lore despite a bullish outlook from the industrial firm >>> and the bears take charge. european equities hit their lowest levels in 18 months tech stocks are among the biggest decliners after the dow, nasdaq and s&p turn negative for the year >>> you can see it's been a negative start for the markets in europe. the stoxx 600 currently trading down around a quarter of a percent. if we look at some of the sectors behind that driving that number down, you can see where the damage is coming from. look at media, down almost 3% on the back of those wpp numbers mt healthcare down more 1.5%. automakers are up 1.35%. construction and material up almost 0.9%. wpp shares plummeted after a report in

willem marx is there he joins us with the latest.t can we expect here with this particular meeting kicking off? >> well, the ministers from the various leaders from the 27 european nations as well as theresa may will get here this afternoon. they'll be having a conversation as a group she'll be addressing them this evening before dinner about her latest proposals on brexit they'll then be sitting down for dinner to talk about their own views and reaction to what she said the challenge coming into this meeting for theresa may has been that the negotiations essentially ended on sunday. both sides unable to get past a certain point. the sticking point seems to still be around what to do with the border on the island of ireland between the uk, northern ireland, and the republic of ireland. they cannot agree on whether there will be a permanent insurance policy in case next year, when trade negotiations start after brexit's formal end date which is the 29th of march 2019, they cannot agree on whether the insurance policy around having no

i'm willem marx. >> i'm joumanna bercetche.hese are your headlines >>> fresh multi-year highs across u.s. treasury yields spark concerns of a slowdown but mohamed el-erian says he thinks the american economy looks good for the next couple of years >> government spending which will get stronger not weaker, household spending and business investor spending, that takes the u.s. through the next couple of years. the u.s. economy is building up momentum the problem is the rest of the world is lagging. >>> a shock change at the helm of aviva ceo mark wilson agrees to step down and the search for a successor begins immediately >>> buying into fintech. wire card rallies to the top of the dax after the german payments company forecasts a six-fold increase in core profits with marcus brown telling cnbc why he's bullish about the medium-term outlook. >> in the next five to ten years probably the large financials will still remain point of sale volume and come into the full digital ecosystem that we provid provide. >> and richard branson s

reporting their latest rating on italy we heard last month they went from stable to negative. >> willem marxrome, willem, thank you very much. >>> outside of equities, here's a global look at commodities and currencies oil ends up a little bit still below 70 gold is fractionally lower bitcoin can't get out of its own way. let's get you set up for the markets and your money joining us is jeff hirsch. chief market strategist probabilities fund management. >> good morning, sir. >> good morning by the way how are you? >> i'm okay. >> we're better than the dow september usually stinks, it was good october is usually good now we're down a little bit of both. >> everyone forgot about october phobia the last month of the worst six months is october. >> should we feel good or bad about the fact that we're down 4% is that a good or bad thing? >> it's a good reset we took a lot of that frothy sentiment off the top there. fundamentals are still supported. we're looking for confirmation this sets up really well for us with the four year cycle sweet spot dow's up 20.3% nasdaq's 32% so this really refreshe

italian budget concerns have driven the narrative willem marx is there. >> reporter: we had a cabineturday where the government agreed on what the draft budget would look like now has to get passed to parliament they struck a conciliatory tron about the european commission. they had concerns about spending and borrowing plans. coming into the trade, moody's, downgraded italy, still kept it above junk status, crucially outlook kept as stable, not negative gave bond prices a valley over the morning. around lunchtime, the italian economy minister in the building behind me issued formal response to the european commission concerns he said we acknowledge some of our numbers in the draft budget are not within eu rules but we need to stimulate growth we had ten years of a sluggish economy and want to change that. we need to serve some of italy's neediest people. seems to have another few days they have a chance to respond more formally. they can't reject it outright but can express more than concerns, say go back to the drawing board, make amendments, try to improve the situation >> thank yo

i'm joumanna bercetche >> i'm willem marx these are your headlines >>> european stocks hit 20-month lows in a global rout after major u.s. equities sink and president trump once more attacks the fed. >> i think the fed is making a mistake. they're so tight i think the fed has gone crazy. >>> imf managing director christine lagarde and bank of england governor mark carney say jerome powell knows exactly what he's doing >> i wouldn't associate jay powell with craziness, no. no he comes across and members of his board as extremely serious >> he's an individual who really understands the plumbing of the u.s. and global financial systems. that's an incredible advantage for the system at a time that the system is changing >> asian equities fall to 19-month lows with chinese blue chips closing out the worst session since february 2016 as volatility spikes on both sides of the atlantic. >>> and dialog shares are super charged after apple takes a bite out of the chipmaker in a 6$600 million deal >>> good morning there is a lot of volatility going on in the markets. that started with the u.s. over

those are pictures of the leaders arriving we will bring you more from that summit willem marx has been there and has been speaking to various european leaders >>> stoxx 600 is up about half a percentage point this morning after a weak session in uk very weak session for shanghai, down 3% overnight. but europe is bucking the trend this morning already firmer we had a multitude of company earnings that crossed the wires this morning we'll get into those switching to european markets first, we have all of the majors trading in the green xetra dax and cac 40 up 0.56, and the ftse mib up 0.70%. as far as sectors, media is up 1.4% decent results out of publics earlier. healthcare up 1.31 retail also having a good day today. we had some good numbers out of carrefour, that stock is up 6% on the down side, construction and material down about 0.90 heidelberg cement offering a profit warning. >>> and linde's merger with praxair has been approved. i think the investor community were waiting on this final approval we finally got it from the u.s the stock this morning, praxair shares are up 6%, 7%

comments or any comments coming out of italy suggesting they may want to leave the euro currency willem marx is live from luxembourg the number one question is does the finance minister have any credibility at this point? >> he seems to have credibility with his fellow finance ministers. speaking to a number of them yesterday and this morning after he met with them, he's now returned to rome to try to finalize some budget details, they say we should give the man a chance he has until the 15th of october to submit a budget draft essentially. he has said there are still a number of moving parts in rome in terms of how that budget is constituted. the 2.4% number that they have publicized last week seems to be relatively set in stone. a lot of other elements are not. obviously his growth assumptions may be different from those we hear from the european commission in the weeks to come. i had a chance to catch up with the commissioner on final affairs and i asked about borghi's comments about the benefit of leaving the eurozone. here's how he responded. >> italy is a core eurozone country. it's in

. >>> and sealed air is cutting its q3 outlook because of shipping costs >>> willem marx is in brusselsnd has more on how the debate and negotiations around brexit are going. >> theresa may came here last night. she spoke. she was heard respectfully by her european peers but by no means conquered. we've been hearing for about a year this summit in brussels was going to be the moment the decisions had to be made on britain's departure from the european union it seems a lot of those leaders are willing to give negotiators a few more weeks, perhaps a couple mormons leading up to christmas for a deal to be struck on that withdrawal. theresa may may be accepting a longer transition period after britain leaves the european union. it will remain a part of the single market, the customs union. that period looking at two years. she said it could last a few more months. that would be important to strike a new trade agreement, and that trade agreement would hopefully have a solution to the border with northern ireland >> we saw your interview with wilbur ross yesterday. what is the specific issue

european correspondent willem marx is standing by in london.kick it off with nancy in singapore and that big plunge in the nikkei overnight >> that's right. you're talking about the good, the bad, this would be ugly for the jach thepanese market. the nikkei 225 off 3.7%. this is a seven-month low for the index. we did see an uptick in the yen as part of the safe haven trade. we saw weakness in the big tech names. a lot of the chip names and the semiconductor space as well. that carried over into the session in japan and in south korea as well. you're looking at the kospi off 1.6% this is significant because the south korean market is now in bear market territory. we saw samsung weigh to the down side along with some of those semiconductors you will see one big market in the green, that's the shanghai it was a late day rebound. after the lunch break we saw some buying but altogether it was flat there is optimism that the government could come through with more support especially for the property sector. back to you for now. >> nancy hungerford,

let's get out to willem marx in rome we need this to be approved by cabinet and then we have the ratings agency reaction. talk us through these key issues >> reporter: right so the challenge today is getting a majority in a cabinet meeting that will start around 5:00 p.m before that it seems some of the senior ministers will be meeting with juncker, the prime minister, to go over the details ahead of the full meeting. i've asked the economy minister about this what happened will happen you need a majority of the cabinet and then very probably it will be sent on to brussels and the european commission. if they don't make the midnight reaction when it k5i78 to the economic forecasts, the government was about a week late. we've had some quite strong language over the course of the last few weeks as you well know around the european commission's action what we expect is within a week of this budget being submitted we will get an informal response another week they will submit a more formal written response if they have questions or concerns about excessive spending plans at that point the it

. >>> concerns about italy's budget back in focus for the global markets willem marx has an update fromels good morning >>> good morning so, the start of this week the italians sent a budget plan to the authorities in brussels. pretty quickly it became clear that the european commission wasn't happy about it. they set these rules in place since the eurozone crisis and they were thinking the italians might be willing to break some of those rules yesterday the commissioner for the final affairs in brussels traveled to roam ame and said te italians you are spending too much money and using growth assumptions that have not been independently verified and we have real concerns about this tell us what you will do to change things. tell us how you will alleviate these concerns the italians will send a response on monday that bond yield has jumped over the last couple of days in response to some of these uncertainties. over the next few weeks we could see a conflict emerge between these two parties. >> willem marx, thank you very much we'll watch this closely >>> in china, i wish we knew -- you