francine: axis trade and trump. the market gives -- the mexican peso rallies from a liquor low. stocks gain -- from a record low. carney goes corporate. the bank of england opens a new front. we are joined by martin gilbert. ♪ francine: welcome to "the pulse." live from bloomberg's european headquarters right here in london. we have a great show lined up. we speak to goldman sachs peter ,ppenheimer and in 15 minutes
lapo elkann joins us on set. we talk brexit with aberdeen asset management ceo, martin gilbert. first, to the markets. we are seeing a lot of moves on the back of what was a controversial, a sparkly debate. financial markets judging the first of three american presidents abates, a went -- presidential debates, a win for hillary clinton. u.s. stock index futures rising with equities and asia and europe. we do have to have a conversation about janet yellen and whether if donald trump wins .e will replace her it lets get to the bloomberg first word news with nejra cehic. nejra: syria's foreign minister says a cease-fire is still viable. the comments came even as rescue workers and aleppo sifted
through the rubble. opposition activists say more than 200 civilians have been killed in the past week under sustained aerial campaign. the ecb's mario draghi says european banks have a problem and one of the issues is overcapacity. the central bank president suggested consolidation would be a move. he spoke to lawmakers about how to spur growth. for the euro area to thrive, actions by national governments are needed to unleash growth. reduce unemployment and empower individuals while offering projections for the most vulnerable. nejra: italy's prime minister takes december the fourth for a referendum on constitutional changes. the move sets the clock ticking on a deal that will seal renzi's fate. lindsay's push for the mother of all reforms is being closely
watched by markets and the political instability. global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. i am nejra cehic this is bloomberg. francine: with the u.s. election six weeks away, clinton and trump have clashed in the first debate. the candidates exchanged sharp and personal attacks over trade, race and foreign policy in an event that put on display their different personalities and divisions of the nation's future. next president obama -- >> president obama and hillary clinton created a vacuum the way they got out of the rack, -- the way they got out of iraq. the way they got out was a disaster. isis was formed. >> donald supported the invasion of iraq. >> wrong. >> that is been proved over and over again. he says this constantly is
george w. bush made the agreement about when american troops would leave iraq, not barack obama. >> the african-american has been let down by politicians. they talk good around election time and after the election, they say see later. they have been abused and used in order to get votes. >> it is unfortunate that he paid such a dire negative of black communities in our country. >> she doesn't have a look, the stamina. i said she does not have the stamina. i don't believe she does have the stamina. >> this is a man who have called women dogs. pregnancyo has said is an inconvenience to employers , who has said women don't deserve equal pay unless they do as good a job as men.
francine: let's get more with our washington correspondent, thank you for staying up. i know you have not gotten any strength. what strengths and weaknesses did they display? >> we saw hillary clinton do her best to get under donald trump skin. we did see chart on the defensive. hillary clinton is well studied and policy in different programs . both her and her opponent have opposed it she brought that up. she spent weeks the bank for this. he came through. donald trump used his strength and his ability to control the stage and often interrupted hillary clinton or the moderator and know to get his point across. he was them to go on the attack many times. we saw him on the defensive to defend his team's statements and policies. many polls show that like hillary clinton came out on top. which voters were they
trying to appeal to? toluse: both have their basis. comes up has debate in the republicans. they need to appeal to those in the middle, the independence and the people who could go either way. they were both trying to reach out to some of those signal mothers, married women, people who shift between republican and democrat election. both were trying to pass the presidential test, coming across looking as if they could be the commander-in-chief. it seems like hillary clinton came to the debate very well studied and on to pass that test. donald trump relied more on the things he said in the past and his general personality. it was quite incredible, trump slamming the fed and janet yellen saying that the fed is being more political than hillary clinton. does that mean he will automatically replace janet yellen in 2018?
toluse: we have seen this of attack from donald trump where he has taken a very direct attack on the fed chair. it seems like he is -- one of the first things he would do would be try to replace the fed chair. he said they were going to face that ugly bubble and blamed janet yellen for keeping interest rates low saying it is because she wants to appease president obama and the democrats. he says that also has been a letter sized. we have not seen this we have not proven much evidence to back that up, but if he were to win the presidency, i could expect one of things he could do would bring in a new chair of the federal reserve. francine: deutsche bank shares have picked up this morning having hit an all-time low yesterday. the financial health of germany's biggest lender an institution, critical to the country's economy is under
pressure. -- concernsre from on all-time loans. -- all-time lows could angela merkel that i want to be politicized. shares bouncing back. what is going on. that a good job of tried to call the market. deutsche bank says it doesn't need a capital increase. it was saying don't expect -- don't speculate. the markets are tents on certain positions. the party we haven't heard is the u.s. until we do, there is going to be this fight of deutsche bank. francine: we don't want to inflame any of the markets, run me through -- there was a $14 theion find this -- that tests that u.s. department of justice wants deutsche bank to pay. do we have no clue?
lionel: $40 billion would be a drive-by shooting because that is what the market cap of deutsche bank. to go from $14 billion to $3 million -- $3 billion, that is a huge drop. you have so many scenarios from a big capital increase, small capital increase, skipping debt coupons, all of these things would hurt the share price. , but all oft panic these actions that deutsche bank would have to take would hurt the share price. francine: including a possible capital increase? lionel: absolutely. francine: what are the chances of them needing a capital increase at this point? lionel: the problem is to avoid a capital increase, deutsche bank would have to take a full actions that would hurt its own business, its revenues, its franchise. keep avoiding capital increase by selling assets.
that doesn't help the franchise. it is tough and the challenges , is capital increase rising whether it will be manageable or big and messy. francine: let's turn to black rocks warning. rethinkit is time to the role of u.s. treasuries and portfolios as the fed moves toward a hike. will they jump? that is the debate. that continues after last week's dissent. let's head down to goldman sachs leveraged finance conference where manus cranny standing by. manus: i have peter oppenheimer here, this -- the chief global strategist. i have been in the hole listing to you. let's start with politics, because that is the top of every
-- trump and hillary go head-to-head. they are 46% match. the market gave hillary a win. from a market perspective, but politics and context, should i begin to take risks off the american table as we go toward the election? we have an overweight in cash in our recommended asset allocation to the end of the year. we have had a very good run and risk assets from the middle of july. they are looking pretty uncertainty -- pretty uncertain. it is referendum and many other potential issues that could come to the forefront over the course of the next few months. manus: i have read all 50 pages. any happy returns. you create a grid and you say manus, there is a goldilocks scenario. goldilocksough what is possibly -- where markets
are. >> the goldilocks idea is the sense of that you are going to start to see big coordinated fiscal expansion around debt that pushes of growth. inflation stays very low, the fed remains very dovish. you get ongoing qe. it is glass half-full. everything goes well for risky assets. we have seen a bit of a sense of that in the sharp rally since the middle of july. people have overstated the downside risk before that. there is a sense of optimism about the narrative around fiscal policy. we've seen a relatively dovish set of expressions from the fed and other central banks. that is too optimistic. manus: let's talk about the new discussion, the more prevalent discussion is that fiscal policy is on the way. i listen to your chief political economist and he said it is good
be very present. how do i prepare for a potential kilis? who has the ability? how does impact the markets? peter: the scoble for fiscal policy is improving in most places, partly because you have partly low rates and the ability to borrow very cheap prices. the political context is moving in favor with growing populism with increased government spending. that is all true. many companies you have significant checks and balances constraints. here in europe, the one country that has significant ability on the fiscal side is germany. there is still political reluctance to do anything about this. with that in mind -- manus: click resistance, but it is becoming a bigger comes asian it could take -- i am trying to join the dots.
peter: i like we get this trade-off between the rate outlook and the growth outlook. the goldilocks outlook says you , butet both, better growth no higher cost in terms of rate. i think that is unrealistic. we're talking about margins. marginal increase in fiscal spending which we are already weing because of the -- expect ten-year treasuries to hit 2% by the end of the year. these are shifts in both cases. that continues to keep us from what we have described. the relatively flat return for risky assets. manus: today is the start of corporate bond buying by the bank of england. the equity story, the currency 15%y and the bond story,
return on guild -- on bond this morning. the currency is what draws me to worry about risk. is that where you worried the most about risk in terms of brexit? hard or soft? peter: the one thing the consensus was right about in the event of a brexit was the currency would take the strain. it did. .ou see the big devaluation there is a downside risk still up for sterling, because the dollar will rise in general. we think the optimism of the last couple of months as some of the data has pointed to greater stability is likely to face further hurdles as the talks begin. we think the currency is still vulnerable. what is surprising is not that the equity markets have done well, lots of companies are very global and benefits from that
sterling weakness. the is most surprising is short domestic stocks which fell in the aftermath of the referendum outcome have rebounded sharply. some of those areas are still vulnerable, pitifully as investment spending in our view will slow over coming months. manus: we got 40 seconds to wrap up a bank of japan policy reaction. was it this mixed bag of tinsel tightening? peter: i think it is more on the easing side. it is effectively inviting the government to increase spending. come -- it, it will will be combined with rates. if you get the fiscal policy and that helps push up efficient expectations, that would be meaningful. it is meaningful because it isolates japan from local shocks. in the event of u.s. rates
, push bond yields up there, it is not going to feed into japan which would help push the yen down and get some financial easing. manus: well done and 40 seconds. this well done and 45 seconds -- well done in 45 seconds. peter oppenheimer here at geomet sex. francine -- here at goldman sachs. francine? ofncine: a little bit insight into what markets will do and how you want to be positioned not to lose money. stay with "the pulse." plenty coming up including the features of -- customization units. bonde boe begins corporate buying programs, we will be to the ceo and cofounder of aberdeen asset management, martin gilbert. the debate, however
he is also the man behind the ferrari customization unit that helps improve the price of its $300,000 supercar 30%. he does is now for a conversation about the future of fast cars. it is a good business. cars in general. lapo: i would say also the world is growing in many areas in the motion industry. i was a personalization industries is 697 billion euro business. francine: coming from where? asia? lapo: asia, middle east. i would say also the world is changing today, if you look if if look on the high-end -- you look on the high-end, you can go from 200,000 to 6 million euro cars. there is a market that is
growing in the one offs. one offs is unique additions built on existing. francine: what does a 600 million car get me? lapo: i did not say 600 million. ferrari is a 1.2 million. -- at 5.6 million. certain cars like ferrari and other cars are icons. i would not to find them cars, i would define them masterpieces. when you speak about masterpieces, masterpieces will great -- a francine: a lot of your customers, do they treated as an investment? do i want to drive one year for aris that is custom that's one of your for aris that is custom -- one of your for aris --
lapo: i cannot speak for ferrari. i sit on the board of ferrari. tailor-madeferrari and a one-off program. today i found it a new company anyed -- which personalizes we areindustry possible working, we are going to put in new models with bmw, after tomorrow's. withe going to be working ag 650.ini, a g5 on the boat industry. francine: you see it as investment? lapo: absolutely. my customers see it as doing the definition
of the academy of personalization. they want something personal. they come to me and my team to support them and help them. which is something we have done over the last year and many cars, ferraris, lamborghini, porsche is, mercedes, bmw. we did on helicopters, planes, boats. bmwt of automakers like which i am honored to work with, we will be presenting on the high version, the hybrid version they have on the i-8, very specific new things. very interesting. we will be presenting a new pagani. we will be presenting something on lamborghini. there is a former yet to come because there are so many projects in our pipeline. boats.lanes,
francine: one of the big trends we talk about is taking cars. i know you're not talking for the family business. for yourself, is it partnership? do you see them as competitors back of -- competitors? lapo: i spend my summer in california for one clear reason, to get a broader understanding of what is going on, what is happening and i have had the privilege to speak among the most qualified people in that industry. i would say it is obvious that in the future, they will have to plan to merge one with the other. do we know what is the right solution and who is going to win? no, yet. francine: what will decide that? because younsumer, do the program.
i do believe that is not my job. bad is the good or job of the consumer. my humble opinion is i am not running a car brand at the moment. if i would, is to work with more than one. francine: it must overlap, customization. it is also -- in fulton to the tech industry. -- it is into the tech industry. ato: won a look entertainment and whichever brandt -- whichever brand, it is not one who is interesting to me. far more can be done far better. peoplepeaking with tech to understand how can we do more, what could we do more, what can we do better, but not at the convenience of the car elder for the convict -- car
francine: welcome to "the .ulse." i am francine lacqua let's get straight to the bloomberg first word news. nejra: syria's foreign minister has said and internationally brokered cease-fire is still viable. opposition activists say more than 200 civilians have been killed in the past week under a sustained aerial campaign. mario draghi says european banks
have profitability problems and one of the problems is overcapacity. he suggested consolidation in the sector would be an important move and he spoke to lawmakers about how to spur growth in the region. >> for the euro area to try actions are needed to unleash growth, reduce unemployment, and offer essential protections for the most vulnerable. italy's prime minister has picked december 4 for a referendum on conference test constitutional changes. it will seal his political fate. his push for the mother of all reforms is being closely watched as it seesl markets political instability in the eurozone's biggest economy -- third-biggest economy. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am nejra cehic. the bank of england's
corporate bond buying program gets under way today but there are concerns it may exacerbate tight liquidity in the sterling debt market. the boe plans to purchase 10 billion pounds of corporate investment debt as part of its stimulus measure to whether uncertainty caused by the brexit vote. martin gilbert, ceo and cofounder of aberdeen asset management. gilbert, us another not related. mark gilbert of bloomberg view. thank you so much for joining us. reopened.as have you been speaking to regulators? have you learned anything about what happened? martin: we were in constant touch with the regulators throughout the situation.
we took a view that our primary objective was to keep the fund open and provide liquidity so we used the price to stop outflows. stop outflows is the wrong word, but to give liquidity in a market that was in crisis, and it worked. and the market settle down and all the other property funds are reopening. francine: you were very open about it. how can you avoid this in the future? can you say it will not happen because we are not getting another referendum where there are steps being taken? martin: i think we need to look at daily liquid funds that are invested in illiquid assets because no one in the industry is going to voluntarily move to monthly liquidity and make themselves uncompetitive, but is really where the situation is. francine: mark, i have a chart. talk about this. mark: we pull the economists every month on what is inflation
going to do, what is growth going to do. we started asking a few years back what do you think the probability of recession is? this is the probability of a u.k. recession in one years time. a massive spike after brexit, that is what we expect, that it is coming down quickly, coming all the way back down. that all theidence ,oom and gloom about brexit about its actual real impact on the real economy. francine: every day we say it is much better but every day we have one survey saying 73% of ceos surveyed want to leave the uk's why am not sure how we matchup the two. martin: want to leave. francine: i think it was mulling the u.k.. mark: we have got 78% of
european capital market activity that employs almost half a million people but if we lose passporting, and for firms on the confident that continent to do business here, that is an economic shock we could do without. the real economy is ok. is fine.t i think both sides really overstated their case during the debate. certainly from fund managers, we are probably the least affected by brexit because we already had our funds located in luxembourg. we sold funds into europe from luxembourg, not the u.k. i agree with you it is passporting and services, for us it is managing the funds in luxembourg but as we already manage them in singapore and philadelphia, i do not see it will be a massive problem. --k:
martin: we might have to move some fund managers to luxembourg that it is not significant. i think it is more an issue for banks that insurance companies. banks probably are the most affected and certainly the groups i am on the jews --cussion this -- discussing i am discussing this. francine: i want to talk a little bit about markets in regulation. where do you see -- is there a bubble brewing -- where to you see the most danger either because of liquidity or asset prices being inflated too much? martin: i think it is definitely in the bond markets. shock we got after brexit happened in property and until then regulators expected any shock to beat in the bond market when interest rates start to go up. just at all time
highs. actually, the bank of england buying more is going to push the price up even more. we are getting into a dangerous situation in bond markets, i think. francine: are you worried about banks? if you look at some of the metrics, banks have been making returns lower than their cost of equity for years. should that be a concern for regulators? martin: certainly for investors it should be. i think these low interest rates do not help. banks are finding it tough to make money. there is no interest spread. francine: none? martin: a lot of systems do not have the system to charge a negative interest rate. mark: you want a functioning banking system and financial system, and i think central banks -- if we look at what the bank of japan did last week to
isget the 10 year, that having to do with trying to keep its banking system alive and not the economy, and the ecb and bank of england are both aware of this issue. it might inhibit polity action -- policy action in the future. francine: is there anything regulators should do to help the banks? martin: i think regulators want the banks to be a safe as possible. i do not think they care that we as investors make money, and they have made the much safer. banks bailey sites the have better capital than they did precrisis and his focus has been make them safe. is they arefor them becoming more like utilities. mark: that is arguably a good thing. martin: if you are a depositor. francine: not for a portfolio manager. you, what wewith
want is safe banks that pay nice dividends to the pension funds. francine: there is nothing systemic out there? when he to be very careful with the language we use that if something were to happen with italian banks or deutsche bank, there is nothing really ugly that would come from it? martin: i do not think so. even though regulators say in germany they would not step in, i think they would find it difficult not to find a solution is something ever happened to deutsche. back in history, i think it was 2006 moody's issued this report saying all the icelandic banks are aaa. because they will step in and bail them out, and it was still -- such an uproar that they took it away. as far as government support for the banking sector, that is what happened. martin: she can hardly say, i'm going to bail out deutsche.
what they say and what they do are two different things often. francine: the fca told you to hold more capital. is that a concern? martin: i think it is good. andrew bailey has moved from the bank of england to the sca -- fca. i think he just wants a stronger financial system. shocks like the property fund -- francine: was it necessary? martin: i think so. we have no problem with it. 10 years ago fund managers have no capital and now they are getting to well-capitalized businesses. i have no problem with it. shock.hen there is a it now when we are all making less money than we were better still making money. this is the time to tell the industry, and i think it is an industry issue. he -- they is that
are going to say to the industry. francine: is regulation getting a little bit smarter? fsb seems to have shifted the scrutiny to certain trading activity instead of the overall size of assets. is that smarter? martin: yes, i think they are getting smarter. regulatory arbitrage is much more difficult. the regulators are good. fca and they at the bank of england, they are all well run now compared to before. i cannot say compared to before. francine: you cannot but martin can. martin: really trying to sense when the issues are going to come rather than waiting for them to happen. francine: we are getting some breaking news out of opec in algiers. we are understanding from iran
that it is not on their agenda to reach an agreement in the and iwo days in algiers think it is having an impact on the price of oil. markinal question, martin, came up with an idea that got a lot of traction which is we are seeing no growth, inflation is going nowhere. shockck the system, to ceos into making money, people like me into spending, raise rates and do it now. the otheram probably view, i would be borrowing money at these rates and investing in infrastructure myself. i think the country is in need of a lot of infrastructure. mark: do you think hammond will do this? martin: i think he will. mark: would you buy infrastructure bonds if they created them? martin: absolutely, because there is a huge desire for yield around the world so any sort of
yield. francine: we will be talking about emerging markets next. martin gilbert and mark gilbert. stay with bloomberg, plenty coming up. we bring you the market moves. clinton wins the debate, say the markets. we break down the first three presidential debates. stay with bloomberg for an interview with the former u.k. chancellor george osborne in his first interview since leaving the post. we are back with martin gilbert, this is bloomberg. ♪
francine: markets a touch flat this morning. let's head to mark barton. mark: up two thirds of her percent early and we are up 1/5 of a percent now. commerzbank is in focus today, shares down 1%. they are said to announce 9000 job cuts and a halt to it dividend payments. be operations will implemented by 2020 with cost cuts up to a billion euros after bloomberg reported friday that commerzbank is preparing to cut thousands of jobs. as martin soaker tries to boost profitability, that is according to a person familiar with the matter. the corporate bond buying program is on highly rated nonfinancial companies and the
average yield on investment grade sterling debt is hovering near a record low of 2.2%, according to bloomberg barkley interest data. that is ahead of anticipated central-bank demand. in the wake of the first debate between trump and clinton, mexican peso jumping as much as 2%. that is deemed a proxy of donald trump's election prospects. of the cnn orcw poll which says 62% says clinton won the exchange. two to go. gilbert, ceo of aberdeen asset management is still with us. talk to me about emerging markets. a lot of investors are starved for yields. you can argue that the markets are up for political risk in turkey. do emerging markets look attractive? martin: i think they have had
three or three and a half bad years so relative performance has been poor. the beginning of this year sentiment turned and we have certainly seen, i would say a lot of covering up short positions by investors as they have rallied. we have seen money going into passive funds probably more than active. definitely sentiment is better but flows are not hugely better for us as a business. francine: what do you like in the emerging markets? you have to go for specific currencies or companies which you are already a holder of. martin: we are at the company level and our biggest holdings probably tend to be in india. we like the companies. they are well-managed. francine: huge domestic potential. martin: india's growth i think sort of comes through companies more than china, which more
comes through i think state funding of infrastructure projects. india we like. , like the asian countries malaysia, thailand, indonesia, singapore as well although it is not an emerging market technically. i have always liked turkey as well and it is a shame there is this political risk there at the moment. certainly we are seeing brazil, the currency recovering strongly year to date. people have made a lot of money in emerging markets. francine: doesn't it feel year he that we have not talked about china? and yet wen china are worried about the outflows but the situation is still there, and yet markets are very placid. probably already in the price that we have seen the slowdown in the economy, and nobody really knows what it is growing at it probably 4% to 6%. i was just over there last week. they are very conscious of
steady growth rather than trying to grow at 9%. , the sort ofly unheralded success in emerging markets, they are they are still growing seven percent to 9%. when people talk about china and they ignore india, which is probably quite a good thing from india's point of view. francine: what does a fed rate hike mean for you? are you going to make money in the next few months because it seems like janet yellen is extremely shy? martin: it is in the price. i am of the view that not raising rates is more dangerous than raising them. francine: the economy overheats or if loath the market? lulls the market in terms of what does she know that we do not? if there were a moderate
increase i would be happy without. francine: -- i would be happy with that. francine: what are your concerns overall? what are the risks, and i know it is impossible to guess, a temper tantrum? martin: prices are getting a bit too toppy in emerging markets. i hate to say we would ask for a correction but it would be nicer. francine: you would feel safer? martin: there is too much liquidity going into india at the moment. it is not cheap india, as how i would describe it. the companies there are expensive relative to other 'assets but thes quality is there and they have done very well. good companies, unilever, these are good, well-managed companies with corporate governments.
francine: when you look at what is happening in the states, how do you look at it in the market? i do not know what the market is pricing and it seems like they are ignoring a trump victory. is he really displaced janet yellen when her terms come up? martin: a difficult question. i know him through golf. iat he has done for golf, as am sure a lot of people have said, is fantastic. all i have said throughout this campaign of his is people should not underestimate him. he has got a lot further than anyone ever predicted way back. you never know what is going to happen. francine: one of our anchors caught up with donald trump yesterday after the debate. bloomberg politics' mark halperin asked how he felt that how he felt the debate had gone
mark:. congratulations on getting through your first presidential debate. >> i thought it was great, i really enjoyed it. i think she proved it was all .alk and no action for years she has been working on things and nothing ever gets done. mark: of the objectives you had tonight, which ones that you achieve or fail? >> i think i achieved. theoked at the lot -- online polls and we are doing well. hillary talked about how she's going to defeat isis. why did she do it? she talked about trade, why didn't she do it? 800 people were going to be deported and they became citizens. our country needs help. mark: did she say anything tonight that you think was false? sure she did, but i did not
want to do my final attack which was to attack her husband on what took place with respect to him and his life, and all of the things that took place because chelsea, who i happen to think is a wonderful young lady, i did not think it would be appropriate despite the fact that she has spent -- how much has she spent on commercials, over $200 million? as you saw, if i'm not leading i am tied. we spent just a tiny fraction of the money that she spent. mark: the debate ends and you people are talking about how you did. what do you think the proper role of the media is? >> i wish the media would be fair. that includes you. francine: that includes you. what are the chances of him winning? she is probably still the favorite but as i said, no one expected him to get
this far see you cannot write him off. francine: martin, always a great pleasure to speak to you. martin gilbert with aberdeen asset management. the oil price moving on the back of this battle join opec members. iran says it is not ready to freeze current output. let's get to algiers and yousef. does that mean we are not going to get a deal in algiers? moment they have just started some of their meetings but what we can tell you is we have spoken to the saudi oil minister and he feels the market is on its way to rebalancing and demand is healthy, and he feels that the stakes are not necessarily higher. he said they are still in a position to support the market as needed. we spoke to the iranian oil
minister and he said they are willing to push to 4 million barrels a day. they are pumping at 3.6 million barrels. the key to this agreement would have been a ron freezing production and saudi arabia cutting production, and it does not look like that is going to happen. we will keep you posted as the developments unfold. francine: yousef, thank you so much. i am looking at the price of oil, this is wti, and this is when iran spoke. this is where the headlines crossed about five minutes ago and down it goes, footie 5.25. 45.25. "surveillance" is up next. the presidential debate already had a market impact, it is not only about janet yellen's future when her term comes up. it is about the mexican peso and
francine: taxes, trade, and trump. the markets give the first of three debates to clinton. stocks gain. georgia is proving to be merkel's election air nemesis -- election-year nemesis. oil halts gains and investors looked toward algiers for guidance. i am francine lacqua in london, tom keene in new york. we have so much to talk about. a little bit of breaking news on volkswagen.