Anna a warm welcome, everybody. This is bloomberg daybreak europe from london. Im anna edwards. Manus im manus cranny. They are going to spend about a hundred Million Euros in annual costs on the pirates. The first cap revenue 3. 3 billion euros. This is the guidance. Profits for the full year will remain unchanged. Overall profit rises by 11 . Traffic growth offset their was with the pilots. With the pilots. Profit 1. 2 9t billion. Traffic is up 11 . Theyre going to spend 100 Million Euros on solving their pilot issues. From the french banking business, thirdquarter net income 2. 4 billion euros. As above the estimate of 1. 99. I continue that they havent avoidd have managed to the trading slots that drag down their competitors. Income from that side of the business falling back 26 presents. Increases the revenue from buying and selling stocks. Cl will be speaking with us. ceo will be speaking with us. Guidance is confirmed. There an uphill battle here. They suffered around engine glitches. This is one of the biggest issues. Engine and the the arrival from ge. They are standing by. Lets talk about sony. Chips to the spiderman movie. Analyst estimate. ¥630 billion from y500 billion. Camera chips are the key part here. Net income, 380 billion euro. Billion leanne. Yen. Llion dividend of ¥25. The chips division is the biggest powerhouse within the business. All about the guidance. Nice guidance for sony. Activists are 20 of the business. Whitetail investments have been looking for scrapping a merger. They were successful with that. Saying anything that looks towards the direction of talking to investors. We be looking through the details. The activist investors are arctic talking to the ceo. Are already talking to the ceo. Will he be able to withstand the pressure from these investors . Lets have a look at what has been going on in the market. Manus just before we do that we have another red headline. We will get you to the markets eventually. Telia is selling part of their holding in megafon. They have agreed to sell a 19 holding. That is the latest coming through. We shall get to the market. Anna stock market up by. 1 . That torrent of news we got with regards to russia and the united states, what does it mean for tax reform . We also got some chinese data. Back of some geopolitical developments, china and south korea are going to put decide differences. Interestings an progression in terms of the policy. 10 year Government Bond yields have come back from those heavy highs. Stepping back, it looks as took the taxrkets story disappointment a little more they took the political story. Thats why stocks and bonds coming little bit lower. The Prime Minister of new zealand says for a speculators will be able to buy homes. The currency comes down about. 3 on the back of that story. Trendy new zealand homes have become somewhat of a thing and there looking to clamp down on it. Paribas have not been to avoid the trading slots. Felle from trading bonds 26 . It did increase revenue from buying and selling spot gas stocks. Selling stocks. I think in the past quarter there was uncertainty. That is why so many waited to see what was happening. Now we will have to see how that goes forward. It is not impossible with the clarification that the ecb has given with the tapering off. Juliette the bank of japan has left its monetary Stimulus Program unchanged. It is diverted from its global peers. Voted to maintain the yield. 1 with news 8 board member dissenting. Spain has these control of catalonias government area the ousted catalonia president has led to belgium. Fled to belgium. Catalonia is struggling over the next move with grass roots supporters enraged. Theresa mays press secretary admits to inappropriately touching a journalist. They have put the incident behind them according to him. The victim also downplayed the incident. Global news 24 hours a day. Powered by more than 2700 journalists and analysts in over 120 countries. You can find more stories on the bloomberg at top. Anna the regional index in asia is that highs with the 10th straight month of gains. As anna mentioned, have a costly. The kospi samsung shares coming through at a record high. Theres been a change of the top. We are hearing the cfo will be nominated as the next chair. Softbank falling in tokyo. The is on reports that discussions between sprint and tmobile have hit a snag. Down about 13 na of the year. It announced its reducing its ratio likes of his peers. Manus thank you very much. No major developments yet into the investigation of possible nash now majoren developments into the investigation of possible collusion between President Trump and russia. Paul manafort and rick gates pleaded not guilty in washington in a federal court separately. Charles Foreign Policy advisor George Papadopoulos pleaded guilty of lying to the fbi. Kathleen joins us now. Is the most damaging part of this for President Trump . When you look at the papadopoulos plea, which kind of , theres of a headline were two separate things with that and the manafort and gates charges. Its the papadopoulos plea that is the most interesting to look at here. That can be read as lying the groundwork for additional charges. Mueller has not ruled that out. Maybe we should even expect. Looking forward, it will be who someng to find out of the Trump Campaign officials mentioned the plea agreement are. And if therell be some additional charges coming down the pipe. Its now pretty clear that there was some level of contact going back to at least march of 2016. What has the reaction been from the likes of the white house on capitol hill . We knew that donald trump to twitter afterwards. Theres some discussion around the veracity of those tweets. What is the overall reaction . The white house has been seeking to minimize the role of the folks. The press secretary did a conference yesterday where she talked about papadopoulos and said he was in unpaid adviser that had very little to do with the campaign. Trackingot necessarily with what the Justice Department is saying. Also, we saw each other administration talking about how the alleged conduct by Paul Manafort and gates was before they joined the campaign. While that is somewhat true, it is also true that in the last two counts of the indictment they are accused of making false statements in november of 2016 and february of 2017, after the election was over. We are seeing the white house tried to business itself. Thats distance itself. That will be harder and harder. Anna thank you very much. Kathleen hunter with the latest. Nicholasined now by gartside. Good to see you. This meansabout what for markets and investments. This is all mixed in with the leads the fed. Have extracted for the tax agenda . Is that the broader story for you . Nicholas i think it is. Politics is ever present now. Markets get desensitized to it. The key is the impact it could have on the economic fundamentals. Growth, inflation, and tax. That is what markets care about. Manus we are right in the heart of the earnings season. This is one of our charts. We are the heart of the earnings season and has been strong. Earnings per share, the beats have been four times greater. Are the deaths of by . Nicholas the jets are a buy the dips are a buy. What stocks are telling us is that its a very robust Global Economic picture. Central banks are still a little bit behind the curve there. Dips buyly by dips. Anna you are expecting a hike in december. How many hikes into next year and beyond russian mark beyond . When you look at markets, they are hugely complacent when it comes to Central Banks. We agree with that. Look at those economic fundamentals. They are robust. In one hikericing next year is very complacent and underestimates the economic picture. Penny i have in the world is probably invested in a pension somewhere. Americans are digging deep. Hey are taking out the savings rate is the lowest since 2007. Of a buyer. Im a believer. This is what is driving it. I wonder to what extent that cast the momentum. But does that make sense . Wage increases. There arereases indicators that there are increases. Thank you very much. Coming up, on the program, we are going to be joined by the Infrastructure Bank president. He will be joining us for an extensive interview. We hear from lars chanel coming up next. Beijing clamps down on polluting industries. This is bloomberg. It is 7 28 a. M. In paris. This beat the analysts estimates. Commodities fell 21 . The cfo said thats as the market wrestled with him certainty. With uncertainty. The past quarter was the uncertainty related to the uncertainty in the market. Thats why so many waited to see what was forming. Now we will have to see how that goes forward. Its not impossible with the clarification that the ecb has been given that it tapers off. You were relieved with the ecb decision . I will have to see. We see that the european economy is doing well. There will be solutions for the end of 2018 and 2019 on the Interest Rate and the volume. You have to see how it forms. Is the situation in catalonia impacting this picture Going Forward . This is a topic you should discuss in spain. Us, the things in spain that matter to us are stable and robust. We are not concerned about the banking environment. Do not think there will be a risk for the european Banking Sector . The banking environment in spain has really artie taken the steps has really already taken the steps needed. In france, you have seen domestic markets come down to about 3 . Do you expect a turnaround in 2018 to happen at the beginning or more towards the end . It depends what you look at already. They pick up in volume is already there. There is confidence. It has been a strong pick up in volume. This is not enough to offset the pressure on the Interest Rates. Overtime, when will that exactly happened, we will have to see how it goes. It should probably be the 2018 or beginning of 2019. Towards the end of next year could macrons move accelerate this process . There are several steps that were announced as changes in his on a track to implement them. The first wave has been done. There are next steps to calm. We should wait and see but it is encouraging. Bnp paribasas the ceo speaking to bloomberg. Lets talk about the European Growth story. To get the Growth Numbers out of parts of europe today. How stellar is the European Growth story for you . It is the International Economic success story. When you look at the job the ecb have done, its a tremendous job. They have got a recession and slow growth to a growth rate that for the second year running out runs the u. S. A might the pop politicians the slow and tackling the bad debts . Nicholas yes and i think that goes to the ecb with the power of ecb qe. We have written up a story the focus on the purchases of corporate that remind viable. The question is where with a concentrate the reduction in their qe . Quit sovereign and less corporate . Dont hit the buffers. What do you think will be reductions . Nicholas very likely to be of the government side. You think about the impact of qe, the power is on the corporate side. When you look at the average corporate bond, it yields today 67 basis points. Thats an astonishingly low cost of capital for the average european corporate. At thehen you look events of last week, very dovish, taper if you call a taper, you make a point in your notes that the ecb left open the r for extended scene extending purchases. How necessary is that get out clause . Nicholas its the inflation picture. The big question is, where is it . There forecast horizon, is no inflation in the eurozone. That is likely to persist for a while. With the high and elevated rates of unemployment theres an wages absence of inflation. Manus confidence is the highest since 2001. Talk to me about the flow of the management. Are they buyers of equities coming into you in a forceful way . Very much so. If you think where the flow goes, it goes to the sectors that benefit from strong economic growth. A couple standout. Highyield bonds. You have a great picture in europe. The second is emerging markets. Manus thank you very much. Nicholas gartside stays with us. Boj may stay course. We will go to tokyo for the latest on their inflation troubles. Anna this is bloomberg from london. Pe these images are coming to us from tokyo. The deliberation over Interest Rates in japan. That will be at 330 in the afternoon over in japan. Note change in the Monetary Policy program broadly speaking but they did trimmed their inflation forecast. Well be looking for anything governor kuroda has to say about the future of that policy. Manus the abatement in terms of where theyre going to hit that inflation target mainstay the bank of japan might have to do a little bit more. We are waiting for french gdp to break. Lets focus and now. Im double checking that my bloomberg terminal has not given me the french gdp . Yes. Rises 0. 5 . Continues. R macron bolstered by the brought economic recoveries. Strongest year on year growth since 2011. An upward revision to 0. 6 in the previous quarter. It seems to be coming out all guns blazing. Spain knocked it out of the park yesterday. Anna the Building Blocks of that yuri of that strong europe story. Monetaryas left their policy Stimulus Program unchanged. This will the verge them from their global peers. The governor and the board voted to maintain the yield curve. It was 81 with aoka dissenting. Lets get across to asia. Chris joins us now. Hiscould probably pronounce name better than my appalling attempt. No change in the policy but the market seems to assume they have stepped back from this inflation target. This might be a little bit more easy for the boj. I would be careful about that. They havent step back from the reignedwhat they have in a little bit is their inflation forecast for next year. Used to be 1. 5 . Now it is 1. 4 . Does that mean they would do more in stimulus . Probably not. There was a dissenter on the board today. An voted for a new yearsal for targeting 15 Government Bonds instead of 10 year Government Bond yields. People in see that as much of a difference. And wontvoted 81 have a impact on policy. The tone of what we heard from other centralt as banks around the world start to normalize policy the federal. Eserve stylesheet, the ecb indicating it will taper its bond purchases , south korea moving towards its first Interest Rate increase in years the bank of japan is having none of that. They are staying on the track of major bond purchases. Staying on the track of negative overnight Interest Rates. Staying on the track of Exchange Funds in the stock market. They are not going to move. Anna in terms of the pressure or lack of pressure that the boj ,s under, away from inflation the economy is on track for its longest expansion 16 years. That removes the need for the boj to do very much. Chris that is right. Boj might be a sweet spot right here. For years, the bank of japan oda tookovernor kur over, was landed the diet. They were not pulling japan out of the deck is a stagnation. Come in and kuroda have a great start but the economy was going through many recessions mn inirecessions. The yen was tumbling. It was getting to week. Too weak. Where the sweet spot. The job market is doing well. The economy is growing. You have the Prime Minister will seem to another victory. To another victory. Hes a big fan of governor kuroda. Are they close of their inflation target . No. But theres no immediate need to do anything further. Manus i love the big picture you paint it for me. You back to me away from that doom and gloom look. Thank you. Chinas official factory gate valve this month as beijing has prioritized the campaign to crack down on polluting industries and rein in debt. Pmis the manufacturing down to 5. 16 compared to 5. 2 in the previous month. Japan is in the sweet spot. Chinas new numbers were not exactly spectacular. But things are quite rosy in japan and china overall. When you look, the Global Economy is humming along a nice case. That is the message when you look at japan. There the politics comes in. Maybe you get the government encouraging more substantial china,creases area with its great growth. High sixes perhaps early sevens. When you think of the pattern, you have stronger growth globally and at a higher rate. China can manage to creep up the momentum despite the privatization of the environment. And the place to take credit debts. To tame credit debts. The big difference is globally grosses are synchronizing of this higher rate. A few months ago there are parts of the economy that looked fragile. At it today is nowhere across the Global Economy that looks new area manus fragile. The yuan is looking at its biggest monthly jump since january. Is a tiny something about that . Nicholas thats tell you about the growth picture, isnt it . Are inflation pressures there. It is much more that the debt. Buildup isnt all the government side as much is on the corporate side. Is about inflation coming in china with could be significant for the Global Economy area economy. Manus the other big event for us is the bank of england. Convincedhe market is that everyone is just waiting for a 25 basis point hike. Is there another story should be talking about . We should. We get the 25 basis point hike. As you look forward, there is a strong case for the bank of england doing much much more. Manus how much more . Nicholas two more hikes next year. Anna this will be hawkish. It will be one and done. Some in the currency markets are suggesting that this will be a dovish hike with one in done but the pound will fall down another 1 . You dont think how theyre going to do this russian mark this . We are looking at other bits of the Global Economy that are growing at robust rates of growth. Growth gvr global gdp higher. At least a couple of hikes next year. Thank you very much for being with an and myself this morning. Icholas gartside lets check in anna lets check in with their asian bash with nejra cehic. The cost be index headed for a record close. Be kospiost headed for a record close. Underr treasury yields pressure. This is a technical chart showing the double top. That 10 year yield has twice and still above 2. 4 of percent just to come back down. It is roughly a 2. 31 . The bloomberg dollar index recovering a little bit. Heading for its best month since john all caps election. Though it is police for the even though it is , cand for that best month that rally continue . Wti. Ng at secondset to post its monthly gain for the first time this year. Coming up, we speak to the president of the asian Infrastructure Bank. Cfo joins us a little bit later. We will talk about what lies ahead. Manus live shots of the governor of the bank of japan. He is covering a wide variety of targets. He is saying japans level of debt is very high. The government must keep the faith in terms of fiscal reform. They do buy stock in etf. They are aimed at reducing risk premiums. There is no excessive sentiment in the stock market this year. Get some of the japanese in this when you look at some of , theiranese indices trading very well. Ryanairs firsthalf earnings gained 11 . More than offsetting the Pilot Shortage that triggered Flight Cancellations. Income rose to 1. 2 9 billion euros. The ceo joins us at 7 a. M. U. K. Time. Morgan stanley has dropped out of an industry accord that allows Financial Advisors to defect to a competitor without being sued by their previous employer. They said the agreement has become replaced with opportunity for gamesmanship and lupin alls loopholes. Facebook, google, and twitter will be at a Congressional Panel to give more details about russian ads. Facebook plans to say that 29 Million People were directly served content from prokremlin russian groups. Light, shared, and commented on they landed in the newsfeeds of about hundred 46 Million People. 146 Million People. Itsung has announced recommends it cfo as its next chairman. The announcement came as samsung posted record earnings that beat analyst estimates. That is your Bloomberg Business flash. Manus thank you very much. Infrastructure banks as a needs additional 1. 7 trillion for funding projects in the region. Anna the president will speak about the need for more private capital. He joins us now. Good to havce you. You see the need for more private capital. What opportunity do you see that private capital does not see . I think there are lots of private sector Capital Investment opportunities in asia and beyond. As you see, the Global Economy is picking up. Its positive for asia. Chinas Economic Development has been sustained. You have seen the successful conclusion of the party congress. The president has completed his first term with flying colors. He will be leading the nation into the new era of socialism with chinese characteristics. A strong leader leading a Strong Economy will be very good news for the rest of asia. That makes it possible for a number of countries to ramp up their efforts to invest in infrastructure which is so important for sustained growth in this region. Manus good morning to you. You mentioned what was seen as a successful congress. There is an ambition to tie asia and european economies more closely to china. One of the biggest opportunities in that policy . I think there is some misunderstanding about the roadficance of the belt program. S is going to be a blog asia andtform for beyond. It is not asias program or chinas program. It is important for china but more important for so many countries in this region. The eurasian land has never been in so much need of connectivity. Its good for european countries, Central Asian countries, and middle east. People believe this is something for china, it is not. The global peace, prosperity, for the common prosperity. It should be done with broad consultation joined joint construction and shared benefits. You say its not just for china. Is the ai ip just for asia . People asking questions about how much you should be investing in projects that dont have an asian footprint. When china took the lead in setting up this bank, the idea was very much clear. Aiib would be developing asias infrastructure but its also indicated that the investment between Asian Countries and nonAsian Countries can occur. We will cover all of the countries which are interested in participating in the globalized economy and a cooperation. To your first question, i think private sector will have a wonderful opportunity to put their resources in the best projects for sustained returns. I think this is important. Asian countries are keenly interested in working with african countries, south american countries, and Eastern European countries. This is good for almost everybody who is interested in joining. When will you make your First Investment outside of asia russian mark asia . We did. Our board approved a Renewable Energy projects in egypt. We are also preparing for investment projects in the original members. In nonregional members. We have many countries that are joining. We have to consider their need for infrastructure development. We will discuss the strategy of investing in nonregionals in the next board meeting. Whether the guidance of the strategy, its approved by the board. Then management would be able to expand his business in the nonregionals. According to the articles of agreement of this bank, investing and nonAsian Countries must be good for the asian economy. Manus there has to be that symbiotic relationship. That mutual benefit. Youve had top scores from moodys, standard poors, when will you issue a bond to the Global Markets . Any indication of what size you would like to test the market with . As a developing institution, we need to go to the International Capital market. So our presence there. Important not just to get money from the market but also to set our benchmark. We have put in place a strong team. Were working on the preparation for the bond issuance area probably its possible to go to the market sometime early next year. Theould depend on opportunities. G xiresident mentioned the environment over the economy. How important are Environmental Issues . We think the close relations between chinas economy of the rest of asia will be very much important and we are very much happy that we enjoy strong support. Management is focused and dedicated to bring up the financial strength of this institution, but i think the chinese economy and Strong Performance in the rest of asias economy be very good. Manus we have to leave it there. President of the aiib. Thank you for being with us. Will talk about some breaking news from Companies Report in london. Anna the french bank pause income from trade bonds falls 26 . We speak to the cfo. I think in the past quarter, there was some uncertainty in the market. That is why some corporate waited to see what was not falling. Anna muellers inquiry. What will this investigation mean for the administrations addenda . Manus the bank of japan keeps monetary stimulus unchanged. The fed could follow suit in december. And brokerage world rocked. Morgan stanley drops out of an industry accord that allows Financial Advisors to defect to competitors without getting fooled. Manus welcome to bloomberg daybreak europe, i am manus cranny. Anna we need to get some breaking news. Largest Advertising Company giving us an update on their guidance. Broadly flat. Net sales growth, they saw that at 0 to 1 . The range previously was zero 0 to 1 . 1 this is going to be broadly flat. An interesting tweak coming through on the numbers from wpp. Like forted revenue, like net sales falling by 1. 1 . This is the World LargestAdvertising Company and it encapsulates a number of changes. Others in the sector, also changing from a consumer pattern, increasing competition from consulting firms, and lack of m a. The propensity of companies to advertise directly with facebook and google. We will see whether the share price gets a nudge on that one. Manus the clarion ceo says he does not think he will have to resign. He is under pressure from activist investors who want to change things. They confirmed that 2017 outlook. That is one line coming from the ceo. Bps numbers, 1. 87 billion. Quarterfor the third adjusted net income. 28. 4 . News. S a big piece of dp will be recommencing a share ,uyback program in this quarter so this is a reward to shareholders. Total had the highest profit. Exxon net income jumped. Isnt is nipping brent nipping in the bandwidth of 60. Third quarter debt, 39 20 billion. 39. 8rom Third Quarter billion. Redline beat. Dividend of . 10 a share. Anna let us have a look at the broader equity picture. Willutures suggesting we be pretty unchanged at the start of the trading day. Looks as if we will be flat. The ftse 100 perhaps a little bit of a lag guard, but not by much. You see this on the risk radar. The asian equity session has been fluctuating, up by. 1 . Russian distractions aplenty as we saw in the last 24 hours. We also saw, worth noting, the kospi up by. 8 on changing geopolitics. That is ahead of the region. Worth mentioning what we have seen in yields. Cuts, the proposed tax Corporate Tax cuts may face over several years. The new Zealand Dollar is down. The potential prospect that the foreign speculators will not be a look to buy new zealand is not a prospect Prime Minister just want. Let us get the bloomberg first word news. Juliette saly standing by. Japan has the bank of left its massive monetary Stimulus Program unchanged human if a trimmed its inflation forecast. As expected, governor kuroda and the board voted to maintain the program and asset purchases. The vote was 81 with a new board member dissenting. The indictment of Donald Trumps former campaign chairman, Paul Manafort, and his longtime deputy has captured the headlines. A second action by special Counsel Robert Mueller may reveal more about the direction of his investigation. Mueller signals he is aggressively pursuing leads that trump or his associates may have colluded in russian meddling. Catalonias Independence Movement has been left leaderless as spain seized control of the leaders government. The ousted president has led to belgium without warning his partyss she remembers or giving them any instruction on the way ahead. Ragedoots supporters in by betrayal of their cause. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 100 20 countries. You can find more stories on the bloomberg at top. Index here inmark asia, finishing out october, up by 4 . Close asat on the well, but the kospi at a record high, up i. 9 , so fairly mixed movement coming through from regional. We did have china pmi also the month of. 6 in october. In terms of socks we are watching, samsung coming through with record thirdquarter earnings and shaking up its top with the cfo nominated as its next share. It hit a record high on the closing seoul. Softbank is lower on reports the tie up between its units sprint and tmobile could not hit a snag. The bank of china dragging down in hong kong. It is after it lagged its peers. It downgraded the bank of china after its results on monday. Weakness coming through in hong kong. Juliette, thank you. Juliette saly in singapore. Earnings gained as price declines stabilized over the peak summer months, offsetting the cost of a Pilot Shortage that triggered Flight Cancellations for 700,000 passengers. Joining us now to break down the numbers, the airline cfo. Neil, welcome to the program. Thank you for coming back into talk to us. It is just the Bigger Picture in terms of the growth ambitions of ryanair. You already talked about cutting things back a little bit next year as a result of this crisis. How knocked has ryanair been in terms of this crisis . Neil we are and gary 200 we are going to carry customers. We have decided to slow down a little bit this year. We had reasonably said 129 million customers. In a profit of 1. 45 billion on a fullyear basis. We have slow down our growth moderately. The year after we start taking delivery of the aircraft, the game changers, as we call them, which will be great, and we start growing up the levels we originally envisaged in the past. Very much onwards and upwards. The business doing very well. Manus you put a price tag to dealing with the pilots, the pay rises, trying to get the staff back onside with you. You put that down at 100 Million Euros. Are you confident that your guys and girls are going to take this . How confident are you that this issue will close quickly . Neil 25 million of which we have taken in the first half of this year in relation to nonrecurring. It is 35 million in the current financial year. Is 100 million on an annualized basis. We have 86 bases around europe, 10 of which have already accepted the offer we had. They enjoy five full rosters, which no other airline can deliver. Massive job security, which is really important at a time we are seeing airlines manus i know that there is roster ring issues, but this has issue very fractious between you and your pilots. How do you get through such a crisis . A very goode had relationship over the years. Never miss a genuine opportunity. We have through our collective , as wellg agreements as 2022, six bases around europe. Part of an overview following the pilot roster ring failure, we looked into other areas in the business and decided we were always competitive when it came to piloting. We want to be the best payer out there, the absolute best boeing 737 800 employer at any of our bases around europe. We are negotiating with each of our employee representative committees, and it will take time. As i said, 10 over the line. A growing number. Democratically, voted against the deal. We are engaged with them to figure out what their issues our. Anna if they continue to say no, there might be more . Neil there are negotiations to figure out what their issues are. We have a very attractive deal on the table. They will be on the new pay and conditions. Placee, we have a deal in that in any event, this is negotiations. We will continue to engage. Anna can those groups be more coordinated . They would have a stronger hand if they were, perhaps. It is normal in a multinational environment whereby you negotiate on a local basis. You continue to do that. You have a collective bargaining vehicle. That is what we will continue to use. Manus look at the situation. You have the insolvency and monarch. But a still with how that is going to impact the market in terms of capacity and your ambition. Neil we are seeing opportunities to grow in the u. K. Provincial airports and getting job stability and sign up for us in germany. 95 of theross to domestic operations. We see good opportunities to get lowcost airport deals and continue to improve on the lowcost base we have around europe and we believe we will be the main beneficiary for what happens. We are already the largest carrier in the italian market and we see ourselves potentially providing feed into the long haul operations were selling their flights on our website. Anna where have conversations got to . What conversations are you happening with the u. K. Government around where aviation heads in a brexit environment . Worried are still very and concerned about what may happen in relation to brexit. It looks like there is a bilateral negotiation. They are very much tied up in the divorce. The problem for us is as we move into next year, september of next year, we will consider loading our schedules. We would hope that the talks would move along quickly and bilaterals would start being discussed and it would be interesting to see comments from our friend as well. The observer couple of weeks ago where the ceo said, worstcase scenario, aircraft will be grounded. It is a concern. It is an issue we all want to see results. Manus the whole discussion seems to have stepped back toward. What a transition deal before delay any movement that you might make in resource allocation change or delay any movement you might make in resource allocation . Neil we are going to grow on the back of monarch collapsing here in the u. K. , and the provincial airports around the u. K. We would love to grow more in the u. K. Market. We would love the certainty to know we could allocate our resources in here post april 20 19. It is a big market, as you said, anna. Europe is a big market. We have a very good growth plan 200 million customers over the next seven years. Anna thank you very much, Neil Sebastian . Nair cfo juliette saly. Bnp paribas has not been able to avoid the trading slump that drag down the results at its biggest competitors in the Third Quarter. Income from trading bonds, currencies, and commodities for the french bank fell 26 to 801 Million Euros from a year earlier. While it did increase revenue from buying and selling stocks, its Global Markets business posted the lowest Quarterly Sales in almost two years, missing analyst estimates. Quarter,k in the past there was some uncertainty related to the uncertainty in the market. That is why some corporate waited to see what was not falling, and we will have to see how that goes forward. It is not possible with a clarification that ecb has given that that tapers off and therefore that we have a more normal kind of devolution. Hasette Morgan Stanley dropped down from an industry accord that allows Financial Advisors to affect competitors. The worlds biggest brokerage said the agreement for broker recruiting has become replete with opportunities,. Gains and check, and the polls Morgan Stanley added that member firms have joined or change scope when it suited them through a facebook, google, and twitter, will get a Congressional Panel more details about the reach of russian ads and posts in the lead up to the residential election. According to testimony obtained by bloomberg, 29 Million People were directly served content from accounts blocked by a prokremlin russian group. They landed in the news feeds of 126 Million People, equivalent to 40 of the u. S. Population. Sam some Electronics Samsung electronics recommended a new chairman. He announced changes in a major rebound of the executive ranks. The announcement came as they hosted record earnings that beat analyst estimates and a plan to boost shareholder return. That is your Bloomberg Business flash. Very much. K you major developments yesterday in the investigation into the possible collusion between president donald Trump Campaign and russia. Authorities have now charged three people including trumps former campaign chief with money laundering, lying to the fbi, and conspiracy. And rickl manafort gates pleaded not guilty in washington in a federal court. Authorities disclosed that George Papadopoulos pleaded guilty after being arrested in july. Kathleen, what is the most damaging part of this for President Trump . Kathleen the big question now is we are seeing folks that are tied to the Trump Campaign or worked for the Trump Campaign that had contacts with russian officials dating back to march of 2016. That is different from what we have been hearing from the Trump Administration. As this probe has been unfolding. That is certainly a damaging piece of information. The big question now is what will be Robert Muellers next steps, and are there additional shoes to drop in terms of more charges to be filed in the coming days and weeks . Manus that is what everyone is on tenterhooks to find out. What should we look for next in terms of the story . Kathleen the big question is, you know, who some of these from Campaign Officials at least two highranking Trump Campaign that papadopoulos allegedly admitted to having to themwith an talking about his conversations, relaying some of his conversations with russian officials. Really, that is the burning question now is how much closer does that get to trumps inner circle . When did they know it . And you know, who did they share that information with . That is what to be the big question Going Forward. Anna kathleen, thank you. Kathleen hunter. The cia joins us from amsterdam with an investor pot take on all of the politics we heard so much about in the last 24 hours. Good morning. When you talk about what has been going on in the united states, what reassessment you make of what the Trump Administration can deliver on tax reform . How crucial is that tax reform to you . The major thing is that the economy is in a very strong footing, and all the various problems we see on the political scene is second stage. What is more important is we have a very strong undertone for the World Economy and this is creating price momentum on the equity market. Probably for politics in the u. S. Will be to concentrate the mind on the tax cut, because that is what really will account for the people. We have also to keep in mind on thee risk will not be central bank. It will not be about geopolitics. It will be about how the Economic Cycle will roll on. We are probably seeing next year a normalization of the Economic Cycle, meaning that we will see fluctuations, and the fluctuation can be a source of a risk, because the market is for the moment pricing only the momentum. You talk about the risks and pricing of those risks, and you say it is not Central Bank Policies which are the known risks, but there are surprising elements like a recession. This is not your best case scenario. You do look at perhaps the known unknowns. What irks you the most . Growth is good. There is a synchronize growth. What is it that provokes you . Didier the risk comes from the fact that the market i dont mean price for beauty. We have a nice momentum, but we are only pricing for the acceleration. We will probably reach a plateau in terms of growth velocity, so that is the point. And a small deceleration from by theurt the fared market like a recession. That does not mean we have a huge volatility, a strong drawdown, but it could provide probably some good entrylevel to buy equities, because correction, it did not really happen this year. And it creates volatility, and that is something that the volatility will match on the asset price of the business cycle, but the new thing is the return of normal business cycle. Anna but one thing that doesnt look very normal at the moment is the low level of Interest Rates we have got at the moment. Do you see no risks from Central Banks scaling back their Balance Sheets and the higher market rates of interest that might go along with that . Also, it creates some risk on the management of the monetary policies. Of course, we might have risk linked to inflation because if we are seeing, you know, the inventories creating a mini cycle, and the demand very strong on, you know, on the good side. It can create inflationary pressure. In the central bank. We have to recognize as well that the inflation cycle is a also aone and it creates global risk for Interest Rates. And bonds and commodities. So commodities are more to the upside as well as bond yields in this environment. Manus let us pick up on the commodity topic. The bloomberg has been writing we are in the pot territory in commodities. We had bp starting a new share buyback. 60 ingiving above europe. How bullish are you on the commodity cycle . Likeem to go through this groundhog day but not much of a memory of overcapacity. It was the story of two years ago, especially with the some form ofching cyclical bottom. Now, we are probably in the middle of the range when we look at oil price. 60. An go up to it creates a Good Condition for a very good balance between the shale producers and the Traditional Oil producers. Whereates an environment the capital goods can come back into the sector and it creates more solidity for the Balance Sheet as well as for the cash flows for the company. Materials sector remains an interesting sector to look at, especially in europe, where it has been undervalued, and it is probably a good time as well to look for sectors that recoveryrds into this that presents low value in developed market as well as in emerging markets. Equities remain your Asset Allocation of choice, i understand. Marketouts in the equity do you look for the best value given what you have said about how far we have come . Didier i think it is probably another weightn into equities. The momentum is very strong. To reduce this overweight, i think, and especially keeping the weight in europe as well as emerging markets, because there is still a value gap between the regions. And it is really a good balance between the growth elements that have been propelled by the economic recovery and evaluation to be captured in the industry or financials in europe or the materials sectors. Manus there seems to be this planpointment on the tax from the united states. We will get details this week. The bond market perhaps has reacted most aggressively. We treated 6 on 10 year Government Bond yields. E ran all the way up the hill they are not dead yet, are they . Didier i think there is still demand for bonds. You know, to have a form of interest into the portfolios. There is still Strong Demand from the Sovereign Fund of the pension funds. We have the possibility of having very strong, lets say, uptick in terms of yields. Forces. The cyclical we push up the bond yields as well as possibility of, you know, the tax plan in the u. S. The tax plan remained for the bond market. At thank you, cio thank you for giving us your perspective. Let a three the earnings we had this morning. Keep an eye being on wpp, cutting their fullyear sales forecast. Manus bp, obviously the big piece of news. It is a very positive move for the stop. You have got futures indicated higher. London, paris, frankfurt, all the way around there. French gdp absolutely strong in terms of spain yesterday. Matched the estimate, so advertising and oil are going to dominate. Anna ryanair, better numbers. The story being told perhaps by ryanair. Airbus also out with numbers. Watch out for any news in the gambling, gaming stocks. Cutu. K. Government is to the odds. They are launching a review on that. We will keep an eye on that center. Sony lifted their profit outlook two 630 from ¥500 billion. That is it from bloomberg as the european open is up next. And they have got the urine and ceo as ae euronav Company Reported their earnings. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Manus tuesday morning. Good morning. Cash equity about to open for the first trade of the day. We will of course bringing in that first trade of the day. I am guy johnson in london. Matt miller normally in berlin off today. Germany is take in the day off as well. Let us talk about what we are going to be talking about throughout the session. Talk in washington of a phased in Corporate Tax cut. That has set stocks lower. The president wants to go to 20 asap. Will he get his way