Seven minutes until the end of the monday session . No trading in the u. S. Because of the labor day holiday. The focus is very much on the european trading. European stocks falling for the first day, and investors turning to haven assets the day after north korea test of the nuclear bomb on sunday. All these markets, currencies are rising against the dollar today. ,he currency of choice yen swiss franc. Those of the best performing currencies. Bond yields are declining. Korea, gold is rising today, continuing above 1300. There is some Corporate News today. Surprised departure of chief executive Joseph Jimenez after eight years of the home of no rvartis. Medical officer, the global head of drug development, enez. Succeed m s on jim bloombergrn from the pharmaceutical index. This includes the struggling business and the stake in crosstown rival. , down9 . Rival, down 9 . The euro is up by 13 this year. That is the Dollar Exchange rate, the thick white line. This is very close to the highs they saw last week. 7 ofin january 2015, 60 raghi will talkd about the euro at the ecb meeting. Minutes on the last meeting sounded the alarm the euro could spread too much compared with economic fundamentals. Other aspects from our survey, 77 of economist predicts the ecbs will unwind qe by announcing reductions in monthly purchases one step at a time. Really quickly, could see gold at the highest level since september 2016 after the biggest weekly bomb since june come up by 2. 6 last week, trump weighing new economic sanctions cause in china. Councilun security meeting on north korea is underway right now. The u. S. Investors to the u. N. , nikki haley, said earlier u. S. Patients is not unlimited, adding that the u. S. Is kicked the can down the road long enough, this as north korea is very important Intercontinental Ballistic Missile launch. This comes days after kim jonguns regime kicked off a more powerful destination feared joining us is alex wayne, Bloomberg News white house editor. Is trump likely to adopt to put pressure on north korea . Lex his actions are really back, and the stuff he is talking about doing would come with a lot of repercussions. He is trying to cut off trade on the only country that trades with north korea. That includes china, countries like the philippines and thailand, Major Trading partners of the u. S. Those countries would precipitate, reciprocate, of course. That seems like in a very strong or reasonable threat to make. Military options are all bad, and it is not seem like many of those are even on the table. Is the president souring on the idea of solving the standoff through brute force . It, if youunds like listen to his u. N. Ambassador nikki haley. Think the president is souring on diplomacy here, but again, military options are terrible, and they are not going to undertake any of them without the consent of the south korean government, which does not want to go to war with north korea. [speaking chinese] those comments towards south korea probably did not go down too well. He is speaking to parliament a little bit later. Will trumps words be listened to by south korea . Will they resent what he said over the weekend . Alex i doubt it is helpful that trump announced on friday, before this nuclear test, that he wants to renegotiate the u. S. Free trade deal with south korea. It gets thei think relationship off to a Nuclear Weapons crisis is heating up. Mark alex, great to see you, bloombergs alex wayne ther e, thank you for giving us a u. S. Angle on the events in north korea. Lets turn to china were president xi jinping is hosting russia, india, brazil, and south korea. The event also be a overshadowed by north koreas latest move. Tom mackenzie has more. North Koreas Nuclear test is a slap in the face were president xi jinping. He had hoped the conversation would be about global trade and economics, but it is being overshadowed by what is having on the korean peninsula. China condemns the attacks and calls for a return of dialogue, but washington is suggesting it will ramp up economic pressure on china to rein in north korea. Andington could target identify like chinas banks and Energy Companies that have released to pyongyang. To retaliation and further trade tensions between beijing and washington. Tom mackenzie, bloomberg. Mark bloombergs Tom Mackenzie there in southern china. The reaction moves today gold, swiss franc, yen paul climbing. Joining us now is paul dobson. It is a favor, isnt it, either a missile or nuclear test . It follows the same playbook every time someone doesnt it, paul . Paul we know whether it is likely to be pulled away come if it is too risky, and they need a sort of a way, and the reaction we have seen today is pretty thundering reaction. In recentwe have seen escalation, as the situation is clear, is the blow into haven has not left that not lasted all that long. With america out, perhaps they will be a little bit longer, so that is the second in there. Onk this is a great chart bloomberg, this is dollars swiss franc, dollaryen, the blue line is dollaryen. Period you will notice for most of this going back to you will notice for most of this period going back to 2016, the dollaryen volatility, it is changing. What is going on . Paul i find it interesting what this dynamic is suggesting, which is maybe the swiss franc is going to be more volatile than the yen as these kinds of tensions mount, which means people probably think that is a better haven rather than the yen. Korean peninsula, where the action is, and switzerland. It, for whatever reason, gets sucked into politics, and the military risks that are going on, then all of a sudden, switzerland, for international investors, it looks like the safest of the save options out there. Add the it time to yuan, the chinese yuan, to our list of havens . Trading for a 14 day, today, the most protracted run of gains since 2010. Is it a haven now . Paul i do not know if i would go that far, but it is a sign that the dollar is certainly not a haven right now, which in some ways is encouraging because of the market were in a romantic, then you with the a real panic, then you with the americans saying we do not want to play anymore, we are out. The u. S. Dollar continues to weaken, that means a stronger yuan, for example, a stronger yen, and a stronger swiss franc a possible. Perhaps a sign that it is not the worst that it could be carried mark could be. Mark the big question can he stop . Can draghi stop the rallies . Paul there is a lot of antigone market, people betting that the euro is going to carry on, and maybe it will be held in check for a few days or weeks by whatever drop you might be able if you see reactions in the market over qe over a sixmonth horizon, likewise if you look at the positioning from u. S. , isdata in the shows investors are considerably long the euro, but you can look at different way if you compare the amount overruled, it is still room for them to get longer. I think there is that kind of pattern across a number of different market intakes. Famous, yeah,it people are betting the view, carry on going, and they are not all in yet. There is more cash behind the euro than no matter what the ecb is going to try to do to extend the game. It will not be that successful. Mark like to have you back, paul dobson. Wonderful read. Which i coulds, have referred to, but time, as ever, has run out. Aming up, brexit talks at standstill. If the economic minister still hoping for a clean and orderly brexit. That is next. This is bloomberg. \ mark i am mark barton appeared coming down to the european close in roughly 16 minutes. P. M. Moscovici says discussions cannot move on to future relationship until more details are settled. He spoke exclusively to bloomberg television. We are starting now the real discussions with our british friends. We started to know the positions they are not, and at this stage fully compatible, and that is quite normal because we know this discussion will be longlasting. When we meet with the 27 member states, we have principles, and of course the financial problems must be solved, first of all, and then we must be fully in agreement with our british on citizens from the u. K. Living in the eu and vice versa, and their families. I think that we are exchanging views, exchanging positions. We were worried about the progress of negotiations, but i always say, quite a good deal at times. Ofi know you had a deadline 2018. The agreement will definitely be reached by then . Mr. Moscovici . We have no choice we have no alternative. We know exactly what the timetable is. The brexit must be solved by the 29th of march, 2019. We knows there we know there needs to be a ratification before. We must first show the problems that we need to solve before looking at the future relationship, was his obviously important. We must not start by that. First things first. Economy administrator Pierre Moscovici speaking exclusively with bloomberg. Tensions quickly turned to brexit. It is all about bills. A legislative bill which will u. K. s thes relationship your Simon Kennedy the u. Ks relationship. Simon kennedy, it is not going to help things, is it . Is that all part of the venture, or is it getting a bit personal . Simon it is definitely changing a little bit to and fro from both sides. Some higher, who is also known for his bombastic rhetoric, coming back today, thing and is stupid, so while it may rally people, many are enthusiastic for the split. Mark talk us through. We have got obviously the brexit bill has to be negotiated, when it comes to that come of parliament is the European Union withdrawing, the repeal bill. Is that going to be a less than smooth journey . Simon i think for this, we have a vote, so much tied up in parliament, it is likely to go ok for the next few days to get through that vote. It will be of the Committee Stage when the Opposition Labor Party gets the chance, then it might run into trouble, but the Opposition Labor Party will try , and therey rebels will be a chance it will fall, and jeremy corbyn, the labor leader. Perhaps as the process goes on, a risk. Mark the cabinet is showing some semblance of unity, even though mapping of some sort of have to brexit, arent they . They say that will pay some money, and that is progress, isnt it, as may returns to front and center . Simon yes, i think weve seen some divisions before the summit narrowed. They predicted they will reopen next year, and these figures in the government, about what kind of brexit deal is acceptable and will force another election. That is not the consensus, but something they want to keep an eye on. Mark is this the october summit, where may will be in attendance, that the grand plan will be revealed that will address all the issues . Simon there is definitely high hopes among journalists for a cracking story. That the euowing ,ooks to give it to trade talks it is going increasingly likely that that might slip and theresa may may strike a deal behind closed doors, and politicians may side with her and move on from the divorce. Mark part is they may say they will pay some kind of bill. Of the weekend, 50 billion was touted, but it has been knocked down once again by david david. Simon it might well be that that number is set, but we will not know until the government shows us. Mark so two more rounds of negotiations before the october summit. One would hope there will be a bit more progress than there was less week. Simon absolutely. The government is looking to change the number, a continuous set of negotiations that allow them more than they have to date. Bloombergskennedy, managing editor for brexit. Still ahead, what is the italian governments exit plan from monte paschi . This is bloomberg. Amk live from london, i mark barton. The finance minister talked about being on a path to recovery, adding to the countrys economic growth. Last july, monte dei paschi won eu approval to receive aid from the italian government. Pierrepadoan spoke to bloomberg. Mr. Padoan monte dei paschi is on track. It comes at the end of the process which has seen a major plan being designed by think management with wanted with being a healthy bank, so this will complete the process in which eventually the government will set up monte dei paschi because the purpose of the injection of public capital is cautionary come as we all know, so we have to design a sustainable path to that. What is going to be the strategy . Padoan the exit strategy has to be carried carefully. Finally, regarding the market what mightei paschi, cause a concern for investors, an opportunity, how can you make the stock more attractive to investors . Mr. Padoan the stock should be attractive because it is tied to a bank which is very attractive in a capital environment. Streamlined, made more efficient by plans, which is presented by the manager. And the bank, which also enters as a major driver of a growing economy, so the economic driver favors growing banks, and i am confident that the market destination will match that. Mark italian finance minister padoan speaking to bloomberg. Stories time for the Bloomberg Business flash, look at some of the biggest stories. Setting of the automakers component business, saying he has not received any approach or offer for all of fiat chrysler. Medicalg the chief officer to be the new chief executive at novartis. Narasimhan will next year. And regulators have approved germanys plan to help air bankruptcy filed for dhabibased airline withdrew financial support. That is your latest Bloomberg Business flash. Eu policy chief commenting on north korea, saying north korean actions are a major provocation and a threat to the national community. The yuan secretary councils the u. N. Secretary councils emergency meeting is ongoing. The close is next. This is bloomberg. Mark live from london, this is the european close. I am mark barton. Lets take you through all the market actions. To Industry Groups are losing and beer. L most of the industry is down today, for investors turning to north korea, testing the nuclear bomb on sunday. That of course instigated a push into Government Bonds, this the german 10year yield, which you can see is down to roughly 37 basis points compared to last tuesday, because last tuesday, when north korea fired the missile over japan, we saw the yields on the german 10year forced lower. End of the week, the peak on the oneyear chart, the yield rose 50 basis points, which is the highest since january last year. One eye on north korea, the other i of course on the ecb meeting on thursday. This is sterling. Sterling risen for two weeks versus the dollar after the steepest monthly draw since october. Rop since october. Brexit talks, parliament of course returns from the summer recess this week. The next two weeks pretty crucial rounds of negotiations with the eu before the next eu summit on october 19. Sufficient progress will have to be made before the two sides move on to discuss trade. It is a big week for Economic Data as well, the focus is on service pmi, manufacturing of course last week did rise at a faster pace in four months in august. The era still lira still short of the market retains its brexit by. This is the pound euro on a monthly basis, and as you can see over the last four months, sterling have been kind against the euro last week. Weakest against the euro since 2009. Ahead of the services pmi here in the u k tomorrow, we thought we would look at construction pmi. Construction of the weakest pace in a year in august, the industry was hit by reduced business investments, uncertainty, new Business Volumes fell for the second straight month, reporting to market highlighting a lack of fresh orders to replace completed projects. Greaters also exercised caution in their approach to hiring staff numbers, their slowest pace since july of last year. Meanwhile, cost pressures, the impact of the falling pound on material prices was counteracted by successful negotiations with suppliers amid weaker market conditions. Construction not as important to services. Services of course account for roughly 80 of the economy. That is the biggest to look out for tomorrow. Lets check in on bloombergs first word news. Sebastian salek has the details. Sebastian thanks, mark. M th koreas begging for war. Nikki haley spoke and called it ,he most powerful device tested and more powerful nation sanctions are needed. South korea has responded by conducting a live fire missiles drill. Has also cleared the way for fuld employment of the new u. S. Missile defense system. China is calling it a threat. U. S. Treasury secretary Steven Mnuchin wants congress to buy a need in packet with a the debt limit. Mnuchin has warned congress to raise the debt ceiling by the end of the month. And Prince William and the duchess of cambridge are expecting their third child. The duchess, the former kate middleton, is suffering from severe morning sickness. They have two other children, prince george, who is four, and princess charlotte, who is to. Wo. Mark thank you. You up in markets in full swing. The euro stronger against the dollar. Turning attention to the ecb meeting, according to the bloomberg economist, ecb president mario draghi will express concern over the single the. He will not single currency. Xrays are saying he will not announce a change experts are saying he will not announce a change. Lifeng us now is our Market StrategistRichard Jones. Try the tackle the sensitive issue, which is the euro . Richard the most important thing to focus on if we have to get the staff forecasts updated through september. The last one we had in june, it of course euro, they had their expectations for the euro to be 109 nextis year and year. The euro has increased quite sharply since then. It will be interesting to see what they say about inflation, whether the strength of the euro downorced them to ratchet their inflation forecast with is year, next year, and 2019. I think that will probably set the tone for what mario draghi has to say about currency. It might come up in the queue a but iut i suspect q a, suspect it will be in the updated market forecast, mark. Paul the question i asked dobson, your buddy come on theet fly earlier, commentary by draghi on the euro will ultimately have any effect, according to communities, seems to be an upward one, even if we do see a pause in the next month or so. Is that correct . That is probably the best that mario draghi and the ecb can hope for, that they can slow the pace of the essence ascent down. I think that is probably right. I do not think expectations are that mario draghi is going to rescue the euro strength. It is much broader and stronger behind, both economically and politically. Realistically, i think that is all they would be looking for. Mark is there a level that the comfortable, or as we have said many times, it is the journey, the pace of the rise rather than a specific point in the Exchange Rate . The ecb will, never admit to having levels that they are targeting or levels they are comfortable with. Say, it is as you very much about the pace of travel rather than the actual direction. If you look at why it has been doing well, it is for all the right reasons. Are concernedy about how quickly it shot up, and that more than any specific level. Mark if it does, to trim its inflation forecast, the family it gives the ecb more space to ofay the implementation tapering of its qe program, be further tapering, shall i say . Richard i certainly think that is the Way Investors would mark, and the extent that the ecb wants to keep his options open, it does allow the ecb to do that. Whether we get some sort of announcement or some sort of plan next month or in december will depend, i think, how euro involved, how the inflation forecast is digested by market participants, but i do think it the ecb, tohem, have a little bit more optionality, and from a central bankers perspective, but its always a good thing. We approachedas on friday, which it seemed as if the ecb was debating whether to hold off until the end of the year, possibly until just a few weeks before the current tapering program runs out. Leaving it a little bit too close to the wire . Will usei think they the time effectively to actually come up with a plan. The problem is, it has complicated all of their metrics, and it makes the job that much more difficult, mark. If you look at where we were six months ago, the euro where it is now versus then, it is much more complicated. As a result, they probably want to take more time. Even if they do leave it until december, it does give them time to figure out exactly how they will approach qe. Mark Richard Jones, great to talk with you, markets life strategist Richard Jones in berlin. Announcing a redo of the president ial election will be 17th. N october we heard last week that the in kenya, itnulled was voided, they have a need to replay the election. The big effect might be seen in the economy, it could pay the price of the opposition leader, being a successful bid to nullify the outcome of the last election, Political Uncertainty pending the rerun may well weigh on growth and investor confidence. That if the take away from events over the last week. That is something to put in the dowry. On north korea, u. S. Seeking votes on new sanction measures today, saying north korea slaps everyone in their face with their Hydrogen Bomb test. We are live in washington with the details. That is next. This is bloomberg. Mark live from london, i am mark london. Vbarton. Opean close this is this is european close. Trump reportedly is going to give congress a cluster come up with a replacement for daca in washington. Alex, before we speak about daca, can we talk about what is happening at the Un Security Council . U. S. Is talking about his sanction measures. The uss north korea has slapped everyone in the face. What do we know . Nikki haley says north korea is begging for war, some statements inse an emergency meeting called by the United States feared she did say they would circulate new sanctions come of that she wants to vote on them on monday. She said only the strongest sanctions will bring the north korean regime to heel. Mark talk about president trump, whether he will scrap ca program. He da if he scraps it, how will that be received among the Business Community . Alex not well. He has received letters from a great many dozens of ceos, especially in the tech field, urging him not to do this. He is feeling pressure from his political base, though. He promised on his campaign that daca on his firstd day in office. Then he became president and learn more about who these people are and seems to develop simply for the. He is caught in a vise between his Campaign Promises and what the Business Community and what the majority of americans want to do. Tim cook, the apple chief executive, has commented on this exact issue. 250 apple coworkers are dreamers, i stand with them. They deserve our respect as equals and the solution rooted in american values. Alex, you say hundreds of chief executive and Business Leaders signed this letter. Does this signal that the Business Community in the u. S. Is feeling bolder about confronting the president right now . Alex i think charlottesville was a real breaking point between the Business Community and this white house. We saw, after the president s remarks and the violence that happened there between White Supremacists and counterprotesters, that a lot of Business Leaders really distanced themselves from the white house. They dropped off from his advisory council. Now they are fighting another issue on which they are separating themselves from the white house. He is fast losing whatever support he had in the Business Community, i believe. P. Rk ye alex, it is a crazy month, isnt it, the month of september, the debt ceiling, the Government Spending authority as well. Is it likely that Steve Mnuchin decades to the debt ceiling would be adopted by congress . Alex that will have to play out a little bit and the legislature. The house is not want to do it in the lower chambers, i guess you might call it. They want to class a clean harvey eight bill without this debt ceiling increase, but in the senate, they may be more willing to add a debt ceiling increase to the harvey aid, and then send it back to the house and ask the house to pass it into law. Mark alex, thank you very much, thanks for joining us on labor day. President trump has been in now. E for seven months the economy has been growing at an equally fast pace. Markets are no longer underestimating the potential negative impact of the president was the economic policy. The last six months, the u. S. Economy has been rarely growing at a rate of 2 the average first and second quarter. Potential,te for the it is close to potential growth, and not much after that. , about health care reform, about infrastructure about taxes and tax reform, and about the liberation. Some progress has been made, but not significant progress. Even tax reform is hard to legislate. Markets, recently, are underestimating some of the potential negatives of economic policies. Growth, the impact of reducing inflation on the labor supply, micromanaging the corporate sector, and a fiscal scene that would force the fed to tighten more faster and sooner, pushing the dollar higher, something that has not happened yet. I think the markets are becoming slightly more realistic, especially the stock market is strong, they are being dropped off the corporate sector. You were saying it would be difficult, but it is tough and would make a huge difference. Ouriel most economic estimates suggest even potential growth would be limited. They can achieve a growth rate of 3 or 4 , but a potential growth rate of the United States is between 1. 75 and 2 . You may increase that by 20, 30 basis points, but then that is affected by the impact of those changes on potential growth. Roubini speaking to bloomberg television. Here is a look at the Bloomberg Business flash, some of the biggest stories in the u. S. Right now. A wto fight over subsidies in spain. That appellate body ruled a lower finding that tax incentives for boeing was a most serious transgression of subsidy restrictions. The u. S. And the eu have settled the airplane subsidies for more than 8 billion. Fiat chrysler, thes chief executiv is spinning off to make a component business. Because he has not received any approach or offer for all of fiat chrysler. Novartis is promoting its chief medical officer to be its new executive. Narasimhan is a harvardtrained doctor who will be taking over for jose jimenez. That is your latest Bloomberg Business flash. Coming up with all the focus on the euro and the ecb this week, how has the euro fared against other currency, including the swiss franc among the polish zloty, and the Swedish Krona . It is all about the yen and the swiss franc. They are the havens of choice today. This is bloomberg. Mark live from london, i am mark barton. This is the european close on bloomberg markets. More around the globe, vicious what is for dinner. The average person eats 40 pounds a year, double the level of the 1960s. Fishing is taking a heavy toll on the ocean population. Fish is a heavy resource, large numbers can be caught with little to no effect on the population. At least that is supposed to be the case. Today, about 90 of the worlds areing grounds overexploited, risking total collapse. For nearly 20 of the Animal Protein consumed by people all over the world. The situation the united agriculture that organizations concluded that fish stocks continue diminishing since the 1970s, and that the situation in the black sea is alarming. Catches their have fallen by 1 3 since 2007, and 59 are overfished. Satellite used to locate fish has sent catch rates soaring, and commercial nets with less pockets of the ocean practically vacant. That there are countries like china, which is overfished near its shores. It in kroos is on the traditional fishing grounds of other nations. There is the argument. Fishing regulations can only be set by governments in their exclusive economic zones, which extends 200 nautical miles from shore, but they have been mostly ineffective. And catch ceilings not seem to encroach that pushed on the fish operations. Another more successful is the catch share program, allowing the harvest to individuals, officials, communities, or companies. They can use those rights to catch fish, or they can sell the right. If fisheries wonder shares to rise in price, they have incentives maximize the value of the catch. It will slow down during sporting season and therefore reducing damage to the fish stocks. Another potential fix is aquaculture, or fish farms. In 2014, farmraised fish surpassed wild caught fish as a source of food for humans. But the solution may come with an environmental price. Critics are concerned fish farms are damaging total ecosystems by andasing tests and pests pathogens that harm wild fish operations. Contaminates are being experimented with as potential solutions. With a worldwide demand for fish the idea of fish not being around is starting to stink. Mark that was our bloomberg quick take on the dangers of overfishing. Should we expect from ecb president mario draghi . Who will be speaking with the executive board member at georgia bundesbank. Take a look at where european markets headed today. North korea test of the nuclear bomb on sunday. We saw the price of gold, the price of the yen, Government Bond yields decline as well. Yen, swiss franc were the currencies of choice. The dollar euro up against the pound today. The bond board highlights the fact that it is all about haven assets today. No trading in the u. S. Because of the labor day holiday. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Announcer the following is a paid advertisement for time lifes video collection. From beautiful downtown burbank. Announcer its the best of rowan and martins laugh in, exclusively from time life. John wayne you bet your sweet bippy. Its been 50 years since america heard this. All right, sock it to me. Lily one ringy dingy. Two ringy dingies. [laughter] announcer and this. May i suggest you look that up . Goldie the news of the future, 20 years from now, burbank, california