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tv   Bloomberg Daybreak Europe  Bloomberg  October 25, 2016 1:00am-2:31am EDT

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anna: trade troubles. europe's ability to sign deals with the rest of the world was thrown into doubt. it is still working towards an agreement by thursday. meanwhile, a new poll shows that more than half of britons in controlling immigration is more important than maintaining access to the single market. happy to hike. chicago fed president charles evans says that three rate hikes may be in the cards by the end of 2017. you form welcome to
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bloomberg: daybreak. manus: breaking news. the subject of a $43 billion deal from kim china. third-quarter sales coming in at $2.5 million. when it comes to this monster deal with chem china. we sell the stock dropped by nearly 9% yesterday. this was on the fact that chem china had not made any initial early-stage remedies to keep the eu happy. said the regulatory process is ongoing and they believe the deal will close in the first quarter of 2017. intois kicking it slightly the future. looks like the transaction between chem china and syngenta
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good close by the end of the first quarter in 2017. there is confidence that they will close the deal. i should say that of course the european union has until the end of this week to make the decision. chem china did not submit the so-called remedies for the eu's early-stage review. european targets for chinese editors will offer -- for chinese offers will offer -- anna: numbers are coming through. business hasd third-quarter numbers coming through. 7% beating estimates. oft is against an estimate 724 million euros. 9% to 63umbers is up euros.
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that is better than estimated. it is also raising the eps target. speaking to the ceo of this lifecycle product. about all ofto him these things driving his business and the broader economic backdrop. this is for the third quarter quarter earnings. core earnings.r the core operating income came in at $3.8 billion. they beat on the operating level but the overall core redings-per-share -- a nice
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headline. they are sticking to the full year. of aroundn equities 0.3%. corporate earnings generally upbeat from the u.s. session. beating estimates so far. lifting global equities generally. the dollar index looks flat but there is movement against the yen and the chinese currency. work function on the bloomberg suggesting more than a 70% chance of a rate hike in december. manus: the dollar is the triumphant trade. it is on a divergent run. on a seven-month run. three hikes -- that is what evans says for 2017. manufacturing numbers were good yesterday. can this continue for the dollar and will janet yellen pull a
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plug on the facility. our guest says that is a possibility. anna: a chinese currency -- the chinese currency is decreasing in all but one session this month. youou go back to 2010, would not find anywhere that it is weaker. it is more complicated when you look at the basket of currencies. do not forget about the basket. let us get the bloomberg first word news. pakistan says at least 48 police recruits have been killed after a gunman stormed the training center and that is according to the ap news agency. another 116 were wounded. provincial minister says at least two attackers detonated suicide belts. was blamed on a group
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affiliated with al qaeda. as filled -- authorities in france is -- are expected to continue with the dismantling of -- a migrant camp. the french president has promised to close the camp known as the jungle by the end of the year. local residents have blamed the a press --ating unrest. donald trump has attacked the media saying they are putting out phony polls in an attempt to suppress the vote. the republican presidential candidate spoke at a rally in florida. mr. trump: these these and crooks, the media -- these thieves and crooks, the media, not all of them, but without the media, crooked hillary would be
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nothing. stephen: the u.k. government is expected to decide later today whether to expand heathrow or gatwick. the latest step in ending decades of delays in what has become one of the most contentious issues in british politics. the final issue will be put to parliament next winter after a public consultation. a property boom offset disappointing exports and consumption. gdp expanded 0.7% in the third quarter from previous months. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . i am stephen engle and this is bloomberg. manus: breaking news coming in across the bloomberg. this has been a long running story. increase in the targets
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for the business. they are targeting 1.1 billion of net income i 2019. in terms of the business plan, they are saying that they are actually going to regroup their 100es on a ratio of one to an they are going to call extraordinary general meeting, and emergency meeting on the 24th of november to discuss a capital increase, a capital hike of some 5 billion. a have to transfer bad debt off the balance sheet. this will be a real test of appetite for this stock. any key word yet on investors being brought in -- on any key new investors being brought in. speculation was lively over the weekend. and the linchpin investor. we are getting new details on
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the update on the 2016-2019 strategy. they are going to reduce staff. there have -- there has been a lot of talk about job cuts. -- the italianng newspaper saying that the plan will include reducing staff by about -- employees. --us: the whole issue about around italian banks. bufferll have a tier one around 13.5%. an additional 500 branches. in addition to the job cuts they are planning, approximately 500 branches will also close in terms of reorganization of the bank of monte carlo. we will bring you more as we get it. anna: that story will continue
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to be topical. let us get an update on where the asian markets are trading with juliette saly in hong kong. juliette: a pretty good session in asia today. by regional index is up about 0.7%. is stirring once again. the us trillion share market closing off its highs today but a pretty good rally coming through. up 0.6%. you can see that quite a few metals had standout performance. iron ore reached an 11 week high. a lot of these cousin met at firms getting quite a big hit today. this is on a report from a korean government official think that chinese officials have warned that there could be a crackdown on chinese tourists coming to korea in 2017 and that would affect on a lot of those has met at players and other china dependent stocks. the shanghai composite is coming out after the lunch break down
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by 0.1%. on monday, it hit a nine-month high. little bit of weakness coming through from hong kong, down about 0.2%. it had a pretty good rally, up by about 1% in that session. solid support coming in from the casino stocks. executive at an the insurance company said that the stock was undervalued. the other big move in asia has been in the currency space. we are seeing the offshore renminbi holding at record lows against the dollar, down. strengthdollar impacting into the asian equity markets today. saly with thee latest on the markets. the european union's ability to sign trade deals has been thrown into doubt after the belgian head said that small region has not yet signed up.
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that is the trade agreement with canada. anna: the backlash against globalization and the tough time awaiting the u.k. when it wants to do a new deal with the eu. a new poll has shown that about half of the adults in the u.k. say restricting immigration is more important than maintaining access to the eu single market. manus: the majority of britons support the government's current approach to brexit. patrick joins us. welcome. that saysd that poll, to me hard brexit personified. unitedying around the kingdom is that a fair take? it is only one poll. >> it seems definitely a hard pull from that brexit. seems that is what the general population wants. anna: one part but not in
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scotland or northern ireland. do you see any way to square the circle which is that part of the u.k. once to stay in the eu and part wants to leave? and still control your borders. i think it is binary. i don't think you will get reasonable access to the single market if you do not allow free movement of labor. there is not much negotiating room there. has a veryn union unified front where as the united kingdom, you have a lot of disagreements from individual countries. manus: one thing you put together as a team -- the surplus with the u.s. and the deficit in the white.
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and our deficit with china. but these trade positions, they great focus as we go over the next few years in terms of the ability post-brexit. this dimension is critically important to the u.k. patrick: it is the services and the financial sector -- if you don't have access to the single market, you are already seeing comments by banks making decisions about the location of their headquarters. that is a big hit to the u.k. there has been a short-term rally based on the bank of england easing some very resilient economic numbers. but they are producing goods. they're getting sterling revenues for the. they are importing from around the world to reduce those goods. that will be a real margin squeeze going forward.
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short 5250. it is very expensive and the currency markets are currently pricing in the risks. sterling is weaker versus everything but the ftse is very resilient. equity investors have not woken up to the risks and they are still pricing in more bullish scenarios and i believe will materialize. recast this story with a broader net and you taken the difficulties of the eu with canada, it does not bode well for tpp. trade deals is becoming increasingly difficult in a world where globalization is under threat. does this become a big investment strategy for you at some point? emerging market has
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some headwinds. there is still an overhang in terms of commodities. high levels of inventories. industrial levels. that is a backdrop. i do think it is going to be a challenging year for emerging markets. anna: patrick armstrong will stay with us. we just have numbers through from ranstad. manus: this is the record revenue. just slightly ahead of the estimate we had. in at comes we were looking at this. they acquired monster worldwide. that is the online recruiting business that they did. we will have a conversation with the ceo later in the program. october volumes indicate the continuation of the trench. we will catch up with the ranstad ceo. a.m. london 6:45 time.
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it has not happened yet. we know that much. let us talk about what is coming up on the day ahead. central banks focus. mark carney gives evidence on the economic impact of the brexit vote. that will be at 3:00 p.m. u.k. time. manus: at 4:30 p.m. we have dennis lockhart speaking in atlanta. and we have the president of the addressing thehi institute in berlin. the chicago fed that charles evans says there could be three hikes. manus: how will virtual reality disrupt product design and manufacturing. ceopeak exclusively to the of the 3-d software maker. speak to the ceo of
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ranstad. to talk about the trends they see ongoing. this is bloomberg. ♪
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manus: there is a shot of hong kong harbor. it is 1:21 p.m. in hong kong. let us focus in on the u.s. and the fed. the chicago fed president charles evans says it may be appropriate for the central bank to raise rates three times by the end of 2017 if the economy continues to grow in mind of his forecast. needs tosays the fed be more clear about the terms of its moves. he also added to the debate for the need of fiscal and monetary policy. >> another offset would be if governments pending responded were strongly than it has in the most recent period than we would
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not have to do as much. in a world where that is not taking place and monetary policy has to do the lion share, the lower the endpoint for the federal fund rate that means we have less room to cut before we get to zero. manus: this comes as the st. louis fed president says december is the most likely time for a rate increase but added there is quote no urgency in our framework. anna: patrick armstrong is still with us. what are your expectations for what the shape of hikes looks like? three next year. it is quite rare to get a fed official be so hawkish. the january selloff was provoked by the fed saying the plan for rate hikes. i think december, the market is expecting that but if you look at your world interest-rate
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probabilities, it is not expecting much in 2017. anna: the equity market is not shaken by this comment. patrick: it is not priced in. it does not believe that there will be three. if we get job numbers to continue a long as they are going, that will get the unemployment rate down near 4%. an -- inflation expectations of near 10%. there are signs that inflation is coming back into the system and that is being priced in by investors. manus: this is my favorite new toy. the u.s. yield curve. do you think the market is pricing in that little bit of inflation. what has shifted in your view? our wages tightening? -- are wages tightening? patrick: the fed could be getting reactionary. rings can change quickly on that
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jobs number. our expectation is that the job numbers will come through and you will get a rate hike in december and a follow-on in 2017. it will hike once for sure. anna: does a lot of it depend on --oner the dollar rising whether the dollar keeps rising? patrick: and you have other events like the election. ,f there is a donald trump win it could create a selloff. manus: there is a big story on the terminal. jp morgan representative is coming in later. he is talking about 1.5% on treasuries. do you agree with that? patrick: i am on the other side of that.
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you will get to the end of 2017, 2 .75. i have a big difference on that. i think you will see the very early signs of inflation coming through in 2017 and continued economic expansion and unemployment down near 4%. in that environment, it is hard to not see wages moving up a little bit and the consequence of that. if you see a continuing strength in oil prices, or at least some stability, you will see inflationary pressures. anna: is it a policy decision? patrick: both candidates will want to increase stimulus. that is good news for the economy. it is much needed. to combine with the monetary policy. anna: he sounded as if he wanted some fiscal support but he was not expecting that.
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patrick: the swing card there is if the democrats win in a landslide they may get control of the house in the senate and that would really facilitate a lot of these fiscal measures. radar, we arerisk seeing dollar ascendance. does that play into dollar-yen. the dollar is seven month high. does that tried -- does that trajectory and a virgins continue for you? -- trajectory and to divergence continue for you? patrick: an extension of qb from draghi in december. you have had a resilient economy somewhat in the u.k.. anna: patrick, to you very much.
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patrick armstrong will stay with us on the program. manus: how could virtual reality disrupt product design. we have an exclusive conversation with a software systems ceo. this is bloomberg. ♪
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anna: and welcome back to bloomberg daybreak. -- 104.43 is3 where we have dollar-yen. we talked a little bit about the overnight trading session. edition of daybreak is available. on your bloomberg. let us take a look at the top stories. the cover story. manus: it is twitter. it looks as if there is potentially more job cuts on the way. planning hundreds more job cuts according to a person
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familiar with the matter. 8% of the be around workforce. he will link about 300 people set to be let-- go. between a representative declined to respond. anna: the u.k. government will decide today whether to expand london's main airport whether it be houston or gatwick. -- heathrow or gatwick. manus: avery refocuses on the chicago fed president. charlesevidence -- evans says it may be appropriate for the fed to raise rates 3% -- three times. confirming the target for 2016 and the numbers look to be broadly in line. 3.59 7 coming in at billion come abruptly in line with the estimate of third-quarter revenue.
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aren't is key -- orange is keeping their outlook. pricinghis is the new cap in terms of roaming. anna: let us move on to another topic but sticking with the french corporate world. emes has reported third-quarter revenue slightly ahead of estimates. company's ceo joins us. welcome to daybreak. --l me how you see the world glass half-full or half-empty. a nice dynamic in asia especially in china as a matter of fact. on the innovation side. i think they are taking it very seriously.
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we are seen in the last 18 consultationicant in chinese companies in terms of creating their own portfolio. -- their own portfolio solutions. related to europe, it is soft. on america, it is a question of mood. there is a lot of dynamic in america including even local manufacturing. and a lot of innovation. for us in america it is more a question about how fast we can diversify into new set ears especially life science. there are different -- in different parts of the world. let us go with the positives. guidanceupgraded your raising your eps targets. is it the china story giving you the tailwind? two factors.
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inong asia and the expansion multiple injuries. there is an interesting phenomenon going on across the world which is mixed between industries. usually we have high tech. aerospace. and now there is a fusion. what is happening with connected cars. the boundaries between tech and automobiles. >> and the economic models. basically.t we do we create the innovation platform. it is a slow process. people think it is going fast but it is a slow process. regulatory issues are there like in personalized health for example. it is going to transform the economy of the industry from
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that standpoint. manus: you are the vanguard of 3-d. you are the innovator in that space. but in virtual reality, it was a glimpse into what you are working on. you mentioned life sciences. imaging that we can do offers surgery before you do it. imagine if you could do it remotely. imagine if you could train a new looking at inserting the future. it is about expanding what you see now to what you want to do tomorrow. this is very profound. it helps companies to transform the processes and to train and
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coach their people. biggest limitation for today is people training. anna: now, there is a shift into virtual reality and augmented reality. is this something you are leading the way on or is it a threat to the business model? news because we have been doing 3-d or 35 years. this is our core business. the fact that it is now pursued by consumers, we will soon have the famous htc. consumablell be products. it will be used for innovation, for you to purchase ins on the web. when you purchase things, they
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have to be created. of thetware creates most goods now consumed on the planet. that is why it is good news for us. manus: the one question we have for every ceo this season -- you are a global business. what are the risks from brexit for you as a french business? we were talking about the trade deficit between ourselves and the rest of you. >> complexity. i think we have a lot of clients in the u.k. in the last five years, the industry in the u.k. has made great process -- progress. amazinglyis successful story. a new product portfolio. that is what we do here. it is going to make it more complex i suspect. more expensive for british
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customers? >> that is a currency affect more than anything else. i wish we would know but basically we do not know at this time. the trends around globalization and the threat to havelization -- you mentioned all of the parts of the world that you trade in and your business model is based on being able to go out to the world and trade freely or as freely as possible. do you see globalization under threat? >> not really. the new world of designing in the new world of the make is changing. we all talk about 3-d printing, local production system, more modular. i think what we have seen in the past 20 years could be a better dynamic for developed countries. why so?
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when you can produce locally, from digital ip, you can create jobs. i believe that this balance is who willfor countries know how to manage innovation and how to develop talents and to create great echo systems. there is a great echo system in the u.k. -- ecosystem in the u.k. are very demotivated today by the brexit. 1000 doing the opening for two days before the brexit. andlled them two days later morale was down. you very much. interesting comments on 3-d printing. in the perceived threat to the developed market. thank you very much.
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-- oil is trading near $50. a magic number. talks aimed at resolving a deal. the: we have the charge of hour. will the rack get some sort of exemption from the production cap they are talking about at the moment? youssef: before i get into the opec conversation there is another side of the story as we look ahead to the figures coming out from the iaea in the u.s. last week is what jolted prices of the wti after the unexpected drawdown of more than 5 million barrels. way to see they ofact that we are having on
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uti as the u.s. crude stockpiles fell below 500 million barrels. two 468 million barrels. more of these shale companies are going to be drilling again as a result of the higher oil price. as a result, you will see a rise in u.s. output. it will only be a matter of time. the expectation is for a build of 1.25 alien barrels. -- million barrels. the other part is you mentioned is the opec conversation. he is in baghdad trying to acquiesce to some of the concerns that they have in iraq. it is not anymore just how the barrels are being counted. iraq wants and -- the complete exclusion from any cuts. they say they are fighting terror with i.s. and as a result are entitled to an exemption. but the reality is that iraq was
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not really part of the exemption conversation. how is he going to resolve all of that? pumping 4.5 million barrels as of september according to a bloomberg estimate. they're making progress in vienna. that meeting was concluded yesterday with the russian energy minister. they are getting closer to concrete production targets for opec members. but they declined to give any more detail. manus: thank you very much. coming up on the program here on daybreak -- daybreak europe, we get the latest on the employment numbers. the while the linear region holdout against eight you trade deal. we assess the implications for the u.k.. look at what the future
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holds for the world's oldest bank. this is bloomberg. ♪
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manus: it is at 1:45 a.m. are big. we have rising equity market. let us get a bloomberg business flash. monte paschi plans to cut about 2600 jobs and close 500 branches and sell that debt as they try to attract investors to a turnaround key to its survival. it is targeting an annual profit of nearly eight alien euros. shareholders will meet at november 24 two uproot a plan to raise capital. -- earnings excluding
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some items. europe's second-biggest drugmaker by sales which is also grappling with a slump at its eye care division is banking on its new heart and psoriasis treatments. twitter is planning hundreds more job cuts to be announced as soon as this week. workforce orits around 300 people may be let go. a twitter representative declined to comment. the news comes after disney come out for that, and salesforce back to out a potential purchase of the company. bids for ansidering b. the sale could fetch more than $300 million based on the evaluation of other recent deals. it would follow similar retreats of other lenders like barclays.
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spokespeople declined to comment. you, stephen engle. has reported numbers just ahead of estimates. the ceo joins us now from amsterdam. berry good to have you on the program. i want to ask you about the results in particular what you are seeing in the u.s. market at the moment. a lot of focus on the macro side as to how tight the labor market is in the u.s. how tight is it and what do wages look like? >> they are tightening absolutely. the u.s. has been growing for about three years in a row and it is having an effect on the availability of people. that is partly good news because of some pricing power. it also means that clients are
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hiring people quicker. wages are going up. not enormously though. in that sense it is a pretty good space. manus: let us talk about europe. ofspoke to the ceo -- cfo hays. employers are back at their desks after summer break and they are replacing people that are leaving. what are you seeing on the client side in europe? do you confirm the same trend? back to business and hiring? we do see a good and stable picture in europe. growings like france is 5%, germany is growing 5% as well as elgin. at 6%and portugal come and 7%. poland, 9%. 12% and
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indeed, quite a good picture. anna: what do you see in the u.k. markets? what is brexit doing to the short-term and longer-term needs? we heard he the u.k. slowing down last year though it had nothing to do with the brexit. they came out of recession earlier than the rest of europe probably because of quantitative easing. we saw is slowing down in 2015. regardless of brexit we see that trend continuing. our top line sees a slight growth. nothing out of the ordinary effectively. and certainly you have heard because of looking at the numbers in mainland europe, no slowdown in europe as a result of brexit. manus: when we look at the areas you are involved in, he went europe could benefit from a harder brexit or the relocation
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of financial operations away from the city of london. isit your opinion -- where -- what is the biggest beneficiary? >> if it would be a hard brexit and business would move to europe, we would be a beneficiary. that would be good news for us. whether it would move to amsterdam, frankfurt, or paris whichwould be them -- would be the three main target areas. anna: are you making plans for that? know, we are not. we are in contact with our clients in the financial area every day both in the u.k. and mainland europe but we do not
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see any signs of that. much forank you very joining us here on daybreak: europe. the ranstad ceo joining us from amsterdam. anna: china's offshore yuan is trading at record lows in response to plants from the pboc. causing concern for international investors. anna: patrick armstrong is still with us. what do you make of the weakness we are seeing in the chinese currency specifically against the dollar? if you look at the basket of currencies, it is not such a weak story. >> you could argue that it is not week, just -- you could argue that it is not weak, just the strength of the dollar. it is not that much of a story
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when you look at it that way. manus: it did shake the markets a little bit last year. has that risk dissipated? yuan.e a weaker we have tied it up with capital outflows. those are increasing. what is the tolerance of the pboc? >> we had a story in august where it was not headlined to the market. bit of as to be a managed depreciation versus the u.s. dollar. it is not spooking the markets. this is an ongoing trend and it seems to be managed somewhat anyway. anna: not spooking the markets at the moment. -- from what you saw earlier from what you said earlier regarding dollar strength, you think that the dollar goes higher from here so this continues, the weakness in the yuan.
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think that this trend would continue. if you look at it only versus the dollar, you have the rest of the asian currencies that are getting trade benefits versus china if they don't allow their currency to depreciate ursus the dollar. manufacturing and exporting is not the only driver. manus: i won to broaden the discussion a little bit. -- i wanted to broaden the discussion a little bit. the broad u.s. market is expensive. you put some numbers around that. the momentum and search for orld, a benevolent fed glacial fed. >> people talk about risks all of the time. our risk is the interest rate. you get, you can
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only argue equities are cheap because they are compared to bond prices. dividend yields may be attractive. those are very lofty multiples. wheremes book value is the s&p is trading right now. i think the interest rates moving higher will lead to multiple contractions and i think there are a lot of weak hands in non-cyclical dividend paying companies. people are natural bond buyers. they are into the consumer state health -- into the consumer staples. if you do see a bit of a higher interest rate environment, than we think you get that its aspirate it by a net flow out of these equities quickly back into bonds because you have a choice in equities right now. still net longre
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on equities. nervous are you really about happening?ly >> 40% short of u.s. equities in the portfolio and long on european equities. there is still a lot of pessimism around the european recovery. u.s. industrials are well-positioned. manus: happening? >> 40% short of u.s. equities in give me your one-month election trade. if you have when. -- if you have one. >> hillary is looking likely. a risk that people do not know is that if the democrats do get control of the house, that could lead to a bit of a selloff because you might see a a lot more left leaning policies coming through which may be bad for big business. anna: i spoke with an analyst that said that was certainly possible but not priced in.
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patrick armstrong has joined us. thank you. manus: as the belgian wallonia h election trade. region holds on, we assess the implications for the u.k. and its new relationship with the eu. this is bloomberg. ♪ .
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♪ manus: trade troubled. as the region of belgium continues to reject the tax. byking towards an agreement thursday. meanwhile, a new poll shows that more than half of britons think controlling immigration is more important than maintaining access to the single market. we have the latest on protectionism protest. three-wayans says should be on the cards before the end of 2017.
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jobworld's oldest bank cuts. 500 branches close. thatll sell its bad debt can the italian lender attract investors? al.t is the key to survivo ♪ manus: welcome. city of london, i am manus cranny. >> breaking news from corporate. news from the owner of the premier coffee chain. 29.9 per share. pretax-307 pounds. 1.5 6 billion.
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that is ahead of the 1.5 billion estimate we had going into these numbers. estimates so no change in estimates there. interesting to see if they have anything to say on the divergence between london and the rest of the country. numbers.king out for analysts are talking about improving a little bit going into these numbers. the full story, one of the beneficiaries in the sense of not moving past for the whitbread story. manus: these are the actual numbers for the institution. we have the headlines of the capitalization. 500 branches close. jobs to go. this is a bank that was raising 5 billion euros worth of capital.
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reporting a net loss, 1.5 million. no loss provision coming up 1.3 billion silliness loss of 1.1 5 billion. estimates, been estimate was for 972 million. third-quarter net interest income 183.5 million. they are saying they hope to complete the capital increase by the end of the current year. cornerstone investment on that 5 billion euros worth of equity up forey are putting their capital buffers. anna: let's have a quick look at the start of the european trading day. no surprise when you look at the u.s.. going high. asian session. rounds seem the early taken positively by investors
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and investors not put off, not deterred. charles evans overnight was talking about three hikes next year. either not listening, don't believe it's not going to happen. let's have a look. moderately triumphant this morning. off of a seven-month high. voting member next week. 9870 is where we are. perhaps the best personification of the dollar strength. you also see at yen for the second a following. fidelity to 120. all quality divergence depends on what you think the feds can turn out to be and the dollar you on moving to record lows. anna: down in all but one section. different.s a bit
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this is focusing in on what is happening with the dollar but the market looks different. we will talk about that later in the program. oil up by 1.6% ahead of opec. the iraqis have been arguing they deserve some kind of exemption from the production costs. manus: everybody wants an exemption. we will have a look at the big discussions in the next 15 minutes and the government on. 1.6 m percent. 2.6 m 5% in over one years time. german bond years back in the .ositive 0.3% and the u.k. guild later on. anna: let's get to it. >> thanks a lot, in a. well, pakistan says at least 48 please have been killed as a
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admin storm date training center. according to the ap news agency, another 116 wounded. many police and paramilitary troops. a paramilitary general blamed the raid on an islamic militant al qaeda.liated with authorities in france expected to continue with the dismantling of a migrant camp today. the operation will force police to disperse as many as eight thousand people across the country. closing down the camps known as the jungle by the end of the year as promised. causing unrest. hampering traffic through the tunnel as many try to move to britain. cutting 2600 jobs. 500 branches closing. selling bad debt. that is as the world's oldest bank and times two attract investors. if first quarter net loss of 1.5 billion euros. eight profit in 2019.
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share holes will meet on november 19th. onshareholders will meet november 19. expected to decide today whether to expand london's main airport heathrow or its main rival, get way. decades to delay one of the most contentious issues in british politics. the final decision put to parliament next winter after final confrontation. theld trump has attacked media saying they are putting out funny polls in an attempt to suppress the vote. -- phony polls. andtrump: the crooks thieves, the media. not all of it, much of it. a are almost as crooked as hillary. they may even be more crooked than hillary. without the media, she would be nothing.
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>> no thievery here. we are bloomberg news. you can find top stories at the blumberg. i'm stephen engle and this is bloomberg. manus: let's check in on the markets. we have the dollar-yen on the move. how is it looking? anna: a lot of moves in the asian space today. we are seeing a good rally coming through. --ually valuations on the cutting to the average at the moment and we are seeing the regional. 4/10 of 1%. mainly how done by this rally we have seen and a closing high of around a tenths of 1% as you say we do see a little but if weakness coming through in the end toward the 140 and up. we also had a very solicitous us coming through. ofing up online up by 6/10
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one percent. pretty flat in the italian market. shanghai light trade. deficit but remember it was holding at both highs with not seen since january and a little bit of a switch out in hong kong. a rally of 1% on monday. corporate news. earnings as you are seeing across europe and america. up by 2%. apple acquire coming through and topping earnings. hong kong doing played well after an executive of the company said it was undervalued by about 45%. rallyingup in sydney at an 11-week high. some positive moves in the equity space. currency under pressure today including the yen. >> thank you in hong kong. trade deals being thrown into doubt but the belgian said it was only a region and has not yet signed up for the trade
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agreements with canada. it demonstrates a backlash against globalization. manus: speaking of which, a new poll has found more than half of the adults in the u.k. are for restricting immigration and more important than retaining access to that eu single market. it also finds a majority of britons support the approach to brexit. let's bring in our next guest. fixed income that jp morgan exit management. solidification of hard brexit. more all looking rather unsteady in the guilt market. however you buy that poland how unnerved should the market be? guest: i think the reality is the bank of england so if you think of the first response post exit from the bank, it was to restart qe. what they are doing there is pretty powerful.
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shouted out of the market so the we already is there is a lid. pension funds are going to hold on to all of their long. they have got to because they have to match their liabilities. anna: interesting. you think the bank of england can keep a lid on guilt. we've a story on bloomberg of it talks about the u.k. and says actually the author of the brexit vote was sitting around corporate yield but now after the break yield trait he might given keeping a lid on this kind of yields. but that market as well, buying up. buyt: i think it is good to arms for the first time ever when you look at the u.k. corporate market it is tiny. a fraction of the size the dollar market, the euro market. you have got such a big buyer.
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the reality is they will keep the cost very low through the asset program. anna: said they will manage to keep a lid on the levels? guest: yes. manus: your the man of the day in terms of your picture on the bloomberg bond story. let's talk about the u.s. bond story and a moment. you say there is a lid. it is not just yet. so what is your call on the guilt lid? >> we're certainly on the territory. that is a part of that. so yields will be tapped as lows. month horizon. the bank of the world? guest: it is that said there is still a spot of global easing to come. only look at concepts like rock dax brexit, -- brexit, the
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reality is the negotiations have not started. when that starts uncertainty rises. that means we get banks back in place. >> you are all over the top bond stories. nobody was to read the next name. jp morgan. the dollar has dropped to one half percent. our next guest. glacial.hat is not he said it will not drop to one point 5%. they will try to train up to 2.75 percent. whitey's deal so sure? so sure? you feel >> look at the reality will stop i spend my waking days obsessing about growth. wherever i look we struggle to find it. it is remarkable that in the
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first half of this year, the euro economy has outgrown the u.s. economy. company times have we been able to say that recently? that is a reflection on these logos in the u.s.. only look for signs of inflation, the reality is that is bad inflation. it acts as a tax on consumers because of course consumers are getting wage increases. anna: so we'd should not get excited if we see upticks. we should say, that is just inflation. guest: unless there is wage inflation it will act as a catalyst. anna: thank you. --us: next up on dave brat on daybreak, saving the world's oldest bank. we will bring you more. this is bloomberg. ♪
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♪ a anna: welcome back let's get the business flash. >> thank you. concentrating. earnings including some items fell 3%. europe's second-biggest is grappling with a slump is now taking on its new where heart and psoriasis treatments. takeover is expected to be pushed back to the first quarter of next year. that indicates it is not confidence the eu will decide before friday deadline to approve the deal without any antitrust strings attached. an extended robe could add another four months to the project. dow chemical ceo says the $59 billion merger may be delayed
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until february with plants closing this year. the european antitrust officials will take more time to consider potential competition issues, and pesticides. here's john nichols wait. cklethewaite. tax-freeill create dollars. it is worth a few months delay. >> that is your bloomberg dismissed plus. manus: thank you. 2600 job cuts. selling part of bad debt. a plan for survival. anna: this reports a net loss of 1.1 billion euros. bloombergs finance and investment team, great to have
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you here. the key take away from the plan this morning? >> a lot this morning on earnings and the business plan. the key takeaways the bank is going to continue cutting jobs as you pointed out. and increase over the next coming year with a proposal on the mortgages and the growth of the mortgage book and the corporate law book. the key here is going to be really how to deliver and execute and how they are going nete growing given the income given the very tight -- as we know, you know, tight markets. : the other key part is capital under what they are doing on that front. what you saw today is in sync of what your sources of been telling you to expect and do we know any more in terms of the potential when you cornerstone
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and investors? >> a few of those are new as you point out and the key is so managers are coming up in the next hour or so. they are pointing to potential interest from those that could come in but the key really is how the management response. >> what kind of commitment they have had. thank you very much. we will be pouring over the details. bringing everybody up to date. thank you. beus: john says it may appropriate for central bank to raise rates three times by the end of 2017. this is as the economy continues to grow in line with his forecast. >> and says the fed needs to be more clear about the terms of its move and he added to the .ebate on the need for monetary
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>> another offset would be of government spending responded more strongly than it has during the most recent time. then we would not have to do as much but in a world where that is not taken place and monetary policy us to do the lion's share, it lowers the, you know, and fight for the federal fund raise and that means we have less room to cut before we get to zero. manus: december is in his words, most likely time for making quote no urgency and our framework. international cio. as that management. nick, we refer to all morning. what with but here's of course we say, inflation at a terminal rate of 1%. you are taking a very dovish view of the fed. >> it makes sense when you look at those comments. the more ambitious scale with
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potential rate increases. take a step back and look at the trajectory. it suggests a moment for both growth and inflation. the other key is emphasizing this, of course the dollar. the dollar is doing the fence work for it. dollar,et a stronger the fed needs to do a lot less than the actual rate hike. the: how much of it do see dollar going. you don't think the dollar is going to go much lower. >> maximum tension there. as you get the dollar strengthening relative as opposed to the type of policy, you don't want to much of that so there is a limited and a cap on how strong the dollar goes. so the move we are seeing on the dollar now is about done. manus: as i listen to you saying gc 3-d.
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that me to equities. said and the dollar as an obstacle, then presumably are you upping your weight on u.s. equities? guest: and, what equities do not want is this egg mass higher as far as the right. when you look at the realities .t is really holding the other side of that though is much more juice in anything like high yield. higher equity. less in the way of volatility. >> tourists and bond investors in the stock market looking in utilities and other higher yield seconding. do think that continues because do think the trade is really
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overdone. snapping back. from what you said, you think the heels are staying low on treasuries. guest: on a relative basis they look good because in a world where union yield is prioritized that is one form the other form is things like high-yield bonds. increasingly it will be things like higher yield ♪ markets. ityou have a stable dollar remains that for emerging markets, local currency or getcan bonds and faces you a high-yield hand it will be stable because the currency is stable relative to the dollar. manus: as for the other two bond markets, of course the hn to be market. on the 10 year portion will they be successful? what did jake peavy put into your thinking? >> how the bank became managed
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to get the 10 year yield of. since they announced that policy, that policy, tenure yields have never been a zero they have always been beneath zero. how do they do that is the road question? at the same time, they have committed to increase the size of the monetary base because they want to increase inflation. so if they taper 10-year purchases they have to buy a lot of more of bonds. of jgb.eady own 60-66% so the devil there is in the detail of practicalities of the yield curve control concept. anna:, thank you very much for spending time with us. international's cio of 16 companies at j.p. morgan asset management. by an anonymous amount, up by a fraction of a percent. evan is talking about a rate hike of three in 2017 and it
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does not seem to have dimmed overnight. manus: absolutely. it takes the stories forward. that is daybreak. bloomberg markets. next, you guy johnson and caroline hyde. this is bloomberg. ♪
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>> welcome to the european markets. what are we watching this tuesday morning? let's talk about it. can china and take over? reviewh does this opposed to this transaction? trade-off? as the eu comes to the trade deal and crumbles. access to the single


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