Lets have a look where european equities are trading, just under 13 minutes to the close of equity trading. 1 . Stoxx 600 is up 2 10 of even though that is not a huge gain we are seeing, where you are seeing a bit of a risk on his what is underperforming are the defenses. Telecom, one of the worst performers. What is outperforming its Energy Stocks, even though we are seeing crude weaker. And financials as well. We saw that with the bank stocks in the u. S. Session yesterday. Financials in europe up 1. 1 . The best performer on the stoxx 600. This is the banks index yeartodate. The level is the highest in six weeks. Really getting the boost. Although we are seeing the tenuretrack your yields steadier in the session, youre seeing yields move higher in europe. I want to show you the 10 year guilt bond spread. It is always Something Interesting to keep an eye on. That continues to widen out. We really see that gilt yield rise since the expectations of boe tightening have been reworked in the markets. Finally, taking a look at emerging markets here following from the fall from the fed. This chart really showing the Jpmorgan Emerging Markets currency index. You can see the trend has really been upwards. We have seen a little bit of weakness. Abigail . Bearish or have a risk off tone in the u. S. 500 and thehe s p dow finished and record closes, but now we are looking at solid declines. Look at the nasdaq, which is down 1 . On pace for the worst day since september 8. The dow, if it does finish down if it finishes down, it will be the first down days since 10. Lets look at a 2d chart of apple, where you will see lets take a look at a two day chart of apple. I did speak to a representative moment ago, and he has a week outlook for the iphone 8 a weak outlook for the iphone 8. The iphone 8 is coming in pretty weak, especially relative to china. He said for the second half of this year, consensus is around 125 million users. He thinks it will be closer to 100 million users. A pretty significant miss there. The makeup will come more for the iphone 10. We see apple taking a decline. Lets take a look at more fed fallout on the commodity complex. We are looking at the dollar up fractionally higher on that somewhat hawkish tone from the fed. That has been weighing on the commodity complex with copper in oil. We still do have some red here. Lets end with a terrific chart in the bloomberg. I love this chart. It is the percentage of assets. How much has the fed stimulated the economy and the Global Financial markets through accommodations . We see in the beginning of 2008, not far he much not very much. When the fed indicated they were ending qe3, it does only been declining. Nejra great chart, abigail. I have a feeling it might appear again later in the show. Thank you so much. U. K. Prime minister theresa may is preparing to deliver a speech on brexit tomorrow in florence. She appears to have clashed cabinet support for her vision on brexit following a twohour discussion. Joining us from boston for more insight on brexit and yours economy is james mccann on europes economy is james mccann. It looks like theresa mays cabinet is behind her, at least for now. The focus of first between florence is expected to be on that brings it bill on the transitions on the transition period. How far does she need to go in appeasing the e. U. To make economists in the markets feel the brexit talks are going to be a little smoother from here . James i think you will be i dont think he will get any concrete details coming out of the speech. Thanks to james mccann. We are having audio difficulties there. Vonnie . Vonnie looking for to that speech tomorrow from theresa may and what she may say. We will be back in a moment on bloomberg markets. Vonnie echo factss ceo expected to testify. Xs ceo expected to testify before a panel. Lets check in on first word news. Courtney President Trump has to make an announcement on north korean sanctions today. According to an official, the president will disclose his plans and a meeting with the leaders of japan and south korea. At a session on north Koreas Nuclear program, the president is expected to know south korea for taking a harder line approach. Meanwhile, the president plans to visit puerto rico for a look at the damage caused by hurricane maria. The storm knocking out power to the entire island, potentially causing billions of dollars in damage. Homes were destroyed. And mexico city, there is a race against time to rescue a young girl trapped in the rubble of a school. She has been there for more than a day is a killer earthquake rocked the mexican capital and the surrounding region. The death toll now 245 people. Dozens have buildings have collapsed. Dozens more are in danger of falling. In the u. K. , Prime Minister theresa mays cabinet supports her position for brexit. There is a discussion on how may can talk about trade in a speech at italy which is aimed at revising negotiations with the European Union. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Nejra thank you, courtney. Lets turn to another potential Pressure Point for the European Union. Its dispute with poland as a ruling law and Justice Party mood to bring the country judiciary under politicians control. Joining us from washington is s foreign minister joining us from washington is polands foreign minister. Thank you for your time. Your president will present legislation on the Supreme Court and the Judicial Council on monday. That you, as we all know, has threatened to impose sanctions on poland over the laws. I am wondering what price is your government ready to pay for defined e. U. . Thank you for having me. We are ready to pay any price reform isis this very, very needed and much designed and required by the population desired and required by the population. So, we one for the election of most two years ago. The population demands to change the law, the judiciary system, to repair the system, to make it less corruption. And we are ready to pay any price which is needed. Nejra any price . Even losing Voting Rights and getting less funds from the e. U. Budget . Know, now. I dont think so we would pay that kind of a price. We are not inventing anything against the rule of law. Against the system. We are just importing over the existing situations from other countries, from other Member States of the European Union. The problem is we are engaged in a dialogue. There are some double standards in the commission. And what is acceptable for other countries, Commission Says is not acceptable for the young democracy or for a country with a different legal couch. This is a double standard. 20 again, we are not inventing anything new. Onceust importing again, we are not inventing anything new. We are just importing. Nejra you pointed to a double standard that oh. 2 pointed to a double standard there. You pointed to a double standard there. Does france and germany have too much say over the future . Like that because it is done only about the judiciary reform, but when we touch upon the financial issues, it looks like there are some countries in the European Union which have more privileges than others. For instance, we are trying to catch up with the other western European Countries because we lost more than half a century because of the second world war, and because of the communists domination for 45 years. We are trying to be more competitive with other countries. Instead of joining this competition, some of our western friends tried to impose some restriction on us instead of being competitors to our economy. Nejra minister, speaking of western friends, with the u. K. Leaving the e. U. , who becomes polands strategic i like strategic ally after that . We dont have strategic allies, but interests. Leaving then is European Union, but is not leaving europe. This is a flaw. Kingdomthat the united will be an important player in europe. Of security in case issues, the fight against terrorists and corruption, this will be important for not only poland, but for the whole European Union. Nejra yeah. Seen as an many is emerging market. Foreign investors, including from the u. S. , are getting concerned that planned changes in the beta market may force them to sell parts of their business. What would you say to Foreign Investors from the u. S. And from germany, particularly . Look at rating agencies. Look at the trade between poland and the countries you just mentioned, poland and germany. The trade between germany and between germany and russia. Germany andtween poland and slovakia is higher than the trade between germany and france. This is still a very import market. We will not change that situation. Again, just like reforming the judiciary system, we want to reform the media markets. Not changing the situation only, introducing some solutions, which are already existing in the other countries of the European Union. Nejra finally, minister, when President Donald Trump visited warsaw in july, the government said it would consider a longterm lng contract with u. S. Suppliers. How far along with those talks now . Yes, some years ago, the polish government decided to diversify the sources of energy. We relied mostly on the import of gas from russia, but a few years ago, we built an lng terminal. We are ready to import liquid gas from other countries, possibly from the United States. We are discussing right now the commercial conditions in terms of this contract. It depends on the price, and depends on the offers. If this is satisfactory, of course, weakening gauge in this contract of course, we can engage in this contract. Our plan is to terminate imports from russia in 2022 because it will be the year of the gas contract which expires in 2022. Nejra thank you so much. Great to have you on the program. Vonnie great stuff. That is fantastic. Still ahead, we will hear from our interview of the turkish president. What he said about relations with russia and the ongoing conflict in syria. That is next. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, im vonnie quinn. Nejra and live from london, i am nejra cehic with european close minutes away. Turkish president Recep Tayyip Erdogan is ready to send more troops into syria where he is working with russia to bring an end to more than six years of civil war. About his involving relationship with russia and yesterdays bloomberg local Business Forum in new york. Let me say this, before anything else, increase your friends, increase your enemies decrease your enemies. We are working on this. Nav reshore time, we got passes issue. Russia, weow, with have gone into a fiery significant climb in Foreign Trade volumes. We reached the trade volume of 36 billion with russia. And now, russia will pass germany to be number one and tourism. And significant wave of tourists have come to turkey. We are making our calculations according to when and we will continue to do so. There is a 2. 5 hour difference between us and moscow. , there is onlyme, on the black ceiling between. We will have our talks there. We will have a telephone call. On thursday, we will have dinner together. We will talk about these developments from about what is happening in syria. Look, right now, there are some problems in england. We will talk about that. Right now, despite all these events, while england is being bombed, despite all of this, children are going to school. Outside of its borders, there are towers of the russian federation, police stations, and inside, our police stations. All this our soldiers are doing with the army. This will continue until piece is established. That, just as hundreds of thousands of syrians have returned to their land, our other syrian friend staying with us, they will return to their land. Just to us the question again about the troops in syria. Do you think you will keep the number of troops there, or will you increase them . The turkish troops in syria . That will change according to conditions. It could increase or decrease. Conditions will determine that, and of course, the part of our soldiers will change accordingly. Sometimes commandos, or sometimes regulars. This also changes according to the conditions over there. Right now, our highest ranking soldiers are represented. And they are waiting right now at the border. They are ready for a mission at any time to secure peace. Turkish president Recep Tayyip Erdogan speaking at yesterdays Bloomberg GlobalBusiness Forum. It is time for the Bloomberg Business flash, looking at the biggest business stories right now. Add 2000 jobs in new york city over the next three years in addition to the 2000 workers it is hiring for its new Staten Island for film and center. They plan to open a new office in manhattan. Italys biggest Bank Unicredit is interested any possible combination with germanys bank. Unicredit has had talks with the german government, which is commerzbanks biggest shareholder. Jobs ands are cutting selling assets to boost profits. Ecb president mario draghi warns that low inflation wont eliminate risk in the financial system. At aoke in frankfurt conference. Concernsportant aspect interaction between Monetary Policy and macro prudential policies. They can potentially become the synchronized meaning financial and balances can grow in an environment categorized by relatively muted inflation. Nejra draghi says in that environment, Monetary Policy is not the rental to address inflation. That is your business flash for this hour. Take a look for european markets are trading. As we had to the close of equity trading on the stoxx 600 is up 3 10 of 1 . Seen gains in the dax. This look at what the fx markets are doing. Tell the strength has been a big story. Of 1 inhigher by 1 10 the euro trading higher against the dollar. This is bloomberg. Live from london and new york will visit the european im nejra cehic with funny thing im nejra cehic with vonnie quinn. Equities have been big in the session. If you look on the left, most of all we are seeing gains. The ftse is higher. Greeces athens stock exchanges higher. Greek stocks had their worst week since 2016 and i send is weaker, but germanys dax is higher. Dollar strength was the story following the fomc. You are seeing a number of currencies gaining against the dollar. The pound is up. The euro rebounding after losses yesterday up 3 10 of 1 . The strength of the norwegian. Rone has been happening in the fixed income space, u. S. Treasury yields have steadied somewhat. Yields are moving higher in europe, both in the core and the periphery. Gold a little off there. At the stoxxlook 600 in the industry groups, over all, europes benchmark is up 2 10 of 1 . You might say that is not a big game, but the last two days, it has been treading water, so at least we are seeing gains in evidence of the risk on. The underperformance of the groups are on the defensive. Consumer staples and telecom are underperforming. Outperforming on the upside, Energy Stocks up 7 10 of 1 . Financials up more than 1 . We saw the banks outperform the u. S. Sessions. Financials are higher. The stoxx 600 is sitting higher since june driven by higher yields. Speaking of outperforming, wanted to show you a Bigger Picture of germanys dax. We are seeing the dax higher, but look how it has performed under merkel. We have taken it all the way back to november 2005. This is a chart normalized from then. You will see total returns in white. Euro stoxx in a blue. The ftse 100 in purple and the dax has outperformed its regional peers. Finally looking at the bond markets here, looking at the spread between the spain between spain and germany, the 10 year yield sprain between portugal and germany. Portugal yields have been pushed lower after the s p upgrade, but you might ask, why is spain trailing portugal so much despite better growth and debt metrics . Blog that perhaps it is down to politics. Vonnie nejra, thank you for that. We have the u. S. President meeting with their leader of south korea. Lets get to that meeting right now. Had actually, we are making a lot of headway in a lot of different ways. We are on a very from the braces basis were on a very friendly basis. Is theportant than trade other aspect of our relationship and we are working with, and that has to do with north korea. We are meeting on a constant basis and will be meeting in a little while also with Prime Minister abe of japan. That will be a try meeting. We will see, but we are making a lot of progress in a lot of different ways. Stay tuned. Stay tuned. [indiscernible] [speaking different language] vonnie we are going to bring you more comments. The translator speaking right the korean president what the president what President Trump just said. He said people see, but we are making a lot of progress in a lot of different ways and then turned everybody and say, stay tuned, stay tuned talking about north koreas situation. A response from the bilateral meeting with south korea. They are going to go have lunch with the Prime Minister of japan. And then President Trump will participate in an expanded meeting with the president of japan. Lets bring in our guest for the moment, Greg Sullivan in new york covering the meetings at the yuan General Assembly. And in d. C. , we have our chief washington correspondent, kevin cirilli. We heard the meeting is going to be about trading north korea. But possible agreement could koreaome to about rough about north korea. Lets get back to the translation. North korea has continued to discreetly s which is extremely deplorable. United states has responded firmly and in a very good way. Thatse of this, i believe vonnie this is the translation of the koreans martha President Trump. Comments to President Trump. Pres. Trump thank you very much, and i am happy that you used the word deplorable. I did not tell him to use that word. [laughter] pres. Trump i promise i did not tell them to use that word. [speaking korean] pres. Trump that is a lucky word for me and to many other people. [laughter] pres. Trump because of the fact that our trade deal is so bad the United States and so good for south korea, we will focus on the military try to straighten out the trade deal of make it fair for everybody. Will be onl focus the military and our relationship with south korea, which is excellent. Which is really excellent. We are going to stop the process right now. Thank you very much. Thank you, everybody. Pres. Trump thank you. The president saying our real focus will be on the military and our relationship with south korea, which is excellent, which is really, really excellent. South koreas president moon going into a bilateral meeting with u. S. President donald trump. Sullivan, hear from rdc bureau and our chief washington correspondent, kevin cirilli. Greg, what will this meeting ultimately end up with . We have mental from the president that the u. S. Is going to announce more sanctions on north korea. Greg the president made that announcement this morning saying he would be announcing new sanctions, but was short on details. His National Security adviser says trump is trying to do everything short of war to solve the crisis. Now, president loan of south korea gave his remarks to the you when this morning and it struck a very different tone than Prime Minister abe of japan or trumps remarks. Earlier, he said we cannot accidentally starting more and destroying peace. Kevin cirilli in washington, who was the u. S. President likely listening to an administration on this . Notable to see he was sitting next to or near President Trump during those remarks that we just heard. He was joined by top lieutenants in his administration, including Vice President pence as well as u. N. Ambassador nikki haley and secretary of state rex tillerson, and also, this is the big coup here, what we are going to get later this afternoon in the next couple of hours, treasury secretary steven mnuchin. Aboute spoken at length the pressure that the Treasury Department has been looking to put on russia and china, but i think i would echo the sentiment of what i think the pressure could be on south korea in particular. To step up to the plate a bit more, in terms of firming up the pressure on north korea for their continued military ambitions. Nejra kevin, i want to ask greg about china and a second, but in terms of the war of words between President Trump and kim jong un, it is almost bordering on absurdity now. President trump called him rocket man, and then kim jong un responded that President Trumps words were like a barking dog. But this is a very serious matter. How do we think north korea will respond from here . Kevin it is a very serious matter. Absolutely correct. I would take a Historical Perspective on this issue of north korea. Typically, what we have seen when we see administration changes in north korea and the United States, i have spoken the several experts on geopolitical relationship between north korea and the u. S. To point to the fact that north korea could eventually be making an opening bid in terms of humanitarian aid and other aid. In this administration is taking a far different approach and saying perhaps aid will not be worth it because the second point i would make is that south korea is just a couple of months away from having the Global Community focusing all of its attention on it during the winter olympics. And so clearly, around the corner right now, even more attention is going to be focused on this particular region. And let us all not forget the relationship between china as well as north korea. That is going to be increasingly under the microscope. Several sources at the Treasury Department hotel is they are examining that relationship on all angles. Nejra greg, yemen covering the General Assembly all week. And President Trump made his speed earlier this week, the chinese president was absent from the audience. We can talk about President Trump talking to south korea and japan about these new sanctions on north korea, but if china is not on board, how far can is really go . Greg you were right. Wasa and russias president not at the General Assembly. Past sanctions. They wanted a ban also exports. They had to ratchet that back to get china and russia on board. As far as sanctions go, it is far it unlikely that the u. S. Is going to get china or russia on board to ratchet up sanctions. Again, we have the u. S. Announcing sanctions. In might have to come from the u. S. Unilaterally. Vonnie brief reaction on the iran and tillerson comments yesterday and what might emerge on that front . Greg yesterday, tillerson briefed the press after he met with other Foreign Ministers of countries that are part of this agreement. The meeting lasted a bit long. The foreignpolicy chief spoke and the tillerson spoke after that. Both ministers said the discussions were frank and open. Both also said that all sides seemed to agree that everyone is in compliance, but tillerson stressed the country is only in technical compliance. The u. S. Wants to see changes to this agreement. Firm. U. And u. S. Have been and saying they do not want to renegotiate the agreement. You will have to look to see where that ends. Vonnie the president has had to bury strong words has had a very strong words. Thanks to Greg Sullivan and of course our chief washington correspondent nbc, kevin cirilli. Coming up, recent natural disasters, quakes in a mexico city and hurricanes and alike pumping ideas about the way we invest in infrastructural change and how water and energy are managed. We hear from the worlds leaders interest rotation management. Worlds leaders in infrastructural management. This is bloomberg. Nejra live from london and new york, im nejra cehic. Vonnie and im vonnie quinn. This is the european close on bloomberg markets. One of the Worlds Largest isvate infrastructure firms at the forefront of creating more resilient cities. Businessits largest unit, roughly 45 of revenue. 35 andnergy generates 20 . More for on more on this issue is anton phil roe is antoine frerot. I want to ask you on the user business of Hurricane Irma in particular. Not so much harvey. Irma was your area of expertise. Antoine yes, it was a lot stronger. [indiscernible] we have to find some ways to stop it as quickly as possible. That the total water services, but enough for serving the basic needs. We imported from water all parts are changingand we the plans. We could use freshwater with plants today. Vonnie youre really doing fantastic work in some hardhit areas from various natural disasters. How does that impact your bottom line when there is Something Like that . Antoine first of all, what we have insurance. More important, we provide services to the population. One of the key elements was services. Design all services the way [indiscernible] support toing some the corporation. Elements ofone key key groupthink. Of means anda lot help. Also to vonnie under your tenure, you reduced the amount of business you did to 20 or so. And the rest is foreign business. Abouto us a little bit president macrons and how more privatization can impact france . Antoine the first impact of president mccrone is to restore confidence of the french population. He is more businessfriendly. Announcedlaws he during the campaign will bring back a bit of confidence. The first impact of macron is the global mood, the global atmosphere to make this country a bit more confident and safe. And more president lee and more presently, he will present new laws and regulations. The first one is the labor law. It will help with better confidence and more means to a doctor businesses. Vonnie regulations have helped your business. For example, china is a wonderful area of growth for veolia. What does it mean to you that the likes of President Trump is pulling out of the parisclimate accord. Antoine the u. S. Is a splendid region to make business first. There are a lot of factors when it comes to climate change, fighting against emissions. The cities and states. In china, regulations and governmental issues are more and more stronger every year. For water, for so oil, for waste, and also for air pollution. This is a major driver of how businesses are in china. In also another emerging countries. Vonnie very briefly, your term is about to expire. What is next for you after that . Antoine your current term over we move from now to five years to classical businesses with waste and Energy Industries to the new frontier of this business. Deal with other places of the world. For the west business, we are wasteing and changing into usable energy. It is a new frontier for the company veolia. Vonnie thank you so much for joining us, today. That is the chairman of veolia, antoine frerot. Nejra and now, the battle of the charts. Stay tuned. This is bloomberg. Vonnie it is time now for our global battle of the charts we take a look at the most compelling charts of the day and what they mean for investors. You can access these charts running the bloomberg function of the bottom of your screen. Kicking things off in london is nejra cehic. Nejra thanks so much, vonnie. The chart i have you could say is simple, but tom keene would call it elegant. We are still digesting the postfomc effect on the markets and what happened with the fed. This chart shows that assets as a percentage of total ecb, boe asset holdings. Percentage washe almost at 50 , around 48 . You see it has come down to 31. 4 . Haidi a significant decline. Ae are suggesting quite significant decline. Perhaps its impact on the market is perhaps not going to be felt so much as it would have been had this happened back in 2015, particularly interesting because when i interviewed a lot of people, they say if the ecb tapered, you would want to watch more for the effect on global markets. Vonnie we may hear something about that soon. Thank you. You can see that at 1549. Emma chandra . Emma we are looking at and luxury goods. We are looking at luxury goods. It appears to be back in fashion , as we are in the middle of fashion week. This one shows swiss sports watches that are rising. Is hat line goes up, it that made the luxury industry is outperforming the market. Vonnie we have to wrap it up, but it appears luxury is back in fashion. Listen, i will give it a tie. Your chart is fantastic, nara, but i can use a little luxury. We have theresa may tomorrow giving the major speech. Dont miss that. Stay tuned vonnie it is noon in new york, 5 00 p. M. In london, and midnight in hong kong. I am vonnie quinn. I am shery ahn. Welcome to bloomberg markets. Vonnie from bloomberg World Headquarters in new york, here are the top stories from bloomberg and around the world. President trump john a in the sand with north korea, promising new sanctions on the road grid gene on the road regime. Shery his latest comments and getting support in the region. And we will speak with richard spencer, the vicechairman of equities, his latest news in the market in the wake of the fed decision and the smp announcement regarding chinas credit rating. And day when of delivery for the new apple watch, we take a look at what it means for consumers and investors. We are getting a check of the market with abigail doolittle. The rally seems to be over for now. Abigail we are looking at a pullback for the major averages. All lower, small declines