Summoned to the Spanish Court on sedition on suspicion of sedition. I am anna edwards. We have an exclusive convserat conversationw ith rob shutter. And evy hambro. Breaking news. Honda is lifting their profitability profitability outlook. The market has estimated 800 billion. They are trying to capture that position. They are trying to capture their equity in the open market at ¥19 billion. There was a 13 dividend pay rate. The return policy has changed. Market wasthe looking for something much more substantial. Something to watch for this Japanese Corporate meeting. This largest source of reckoning source of revenue is its japanese home markets. Companies have been less at the forefront of pushing into safer alternatives. Sacral let us talk about a number of factors that plays into the open market. We have a number of various facets of the markets. Americans are the most confident on record in terms of getting a job. Plentiful, minus the share that says they are hard to get. And they are all booking holidays. On halloween, as well. Rally in japan around 9 10 of a percent right now. Technology stocks are doing well. The weak yen, helping that story. U. S. Features, up around 3 10ths of a percent. Ending with its strongest market since february. You have chinese manufacturing. We should start to get bullish on nickel. Let us get your first word news. In new york, juliette in new york, the driver that killed eight people and wounded several more was shot by police. This happened near the site of the world trade center. President trump tweeted he ordered the department of increasesecurity to the vetting of immigrants coming into the United States. States congress has postponed its plan to release its tax bill by one day. Said Committee Members were pleased with the progress they had made. The delay reflects the challenge of crafting a complex bill i bys deadline by paul ryan this deadline by paul ryan. President has been summoned to a Spanish Court on suspicion of sedition. Choose be forced to between jail and life as a leader in exile. This is in response to catalonias declaration of independence. He returned to the barcelona airport late yesterday. U. K. Is preparing to compromise in its standoff with the European Union on the brexit bell. David davis said the financial settlement on the divorce terms will probably be better for the remaining 27 European Union countries. There will be a two day session starting tomorrow starting a week from tomorrow. Nothing is agreed, but everything is. The balance will favor the union in terms of things like money. Relationship will favor both sides. Global news 24 hours a day, powered by more than 27 journalists and analysts, in more than 120 countries. There is a fresh 21 year high here. The sx 200 had a good session. New zealand is not on this board. It is planning to ban foreigners from buying homes in new zealand. Shares at a nineyear high, the highest since 2008. This is after the Company Increases annual operating profits to 5. 6 billion in profits. This is after increased dividend. Macau casino revenue rising year on year. Ann thank you. House republicans have delayed the release of their tax bill by one day, reflecting the tension around key provisions in the proposed legal overhaul. Tomp Campaign Manager agreed a meeting with representatives of russian president vladimir putin, at least according to an email from george papadopoulos. Announcedmueller charges yesterday against him and two former Trump Campaign aides. Thleen, how big of a deal is it we had this delay by one day, which is what they are telling us, in terms of the tax bill. It is probably not that big of a deal, it demonstrates the difficulty that is inherent in we tax overhaul debate, cant even they cant even release a bill at this point without stepping back and getting more of their caucus on board with what they are trying to do. I think this demonstrates how onficult this is going to be the timeline they have sent for themselves set for themselves. To pass this in the house by thanksgiving, but with Everything Else going on, every shortens they amount of time they have in order took a push their goal. In order to college their goal. In order to accomplish their goal. Many were distracted by the acts going on in new york yesterday. Whilehave all known for a that at least there was some betweena meeting someone reporting to have ties to the russian government and donald trump jr. Trumpe known about the tower meeting from june of 2016. But we are seeing that this is potentially a different meeting and blame put into the public record. We could be suspecting this is something that Robert Mueller is looking at as part of his probe into potential meddling in trump collusion in meddling in the 2016 election. This is a very interesting development. Many will say, did we know already that the Trump Campaign had met with people with ties to moscow . The distance between discussion thank you, kathleen. Today is the federal reserve. It is their turn to make policy decisions. It is expecting the fed will keep rates unchanged. Trump wille, announce his pick for fed chair tomorrow. The president is said to be leaning toward jerome powell. With us. Don is good morning. Is, the impacts on markets, there will be an initial burst of excitement that will be shortlived. Does this one individual have so much sway . This is about the four vacancies on the fed board of governors. Do they represent a move towards a hawkish view . For a targeting the financial cycle, rather than the Business Cycle are they targeting the financial cycle, rather than the Business Cycle . This doesnt really tell you an awful lot about the trajectory. Are buying suites, going on holidays. But where is the bandwidth for bonds . They think the taelor range would move to a little bit higher. Drift higher in yields . I dont see a breaking out. Series of very competitive central banks, treasuries. As you start to hit that glass ceiling. What about the style we see from the fed . We have the actual name of the fed . We have been talking about Forward Guidance. Its place, but now we need to go back to a world where you dont need rate decisions with 90 pricing to take place. Bankers willink move away from the principle of guiding the markets. Byy were influenced strongly 2013. And a lack of communication when we go back to a situation where it becomes a complete shock, we just need to be clever around not conflating Forward Guidance with putting rules in place. There is a lot more to get through. Have special coverage of the fed decision from 6 00 p. M. , u. K. Changed if you are here in new york. This will not happen until next weekend for the states. Henderson atanice u. K. Time. The Catalan Leader who fled a brussels to choose between possible jail sentence into life index ill. We discussed between a possible jail sentence and life as a leader in exile. And we speak next to robert shooter. This is bloomberg. 7 1 8 a. M. In berlin. 7 18 a. M. In berlin. Challenges Angela Merkel challenges the bond line program. Here is your newsflash. The terrorist attack has killed eight people and wounded several. The driver was shot by police and arrested. This happened blocks from the site of the world trade center. Hasnt said he ordered the department of Homeland Security to increase spending of immigrants coming into the United States President Trump hasnt said he ordered the department of Homeland Security to increase the spending of immigrants coming into the United States. Social networks the said they dont have the technology to prevent a votemeddling from happening again. But the committees have said they will increase their safety and security. We are hiring more ad reviewers and doubling security and engineering efforts. We are launching new tools to i transparency and requiring more information from political ad buyers. Bitcoin is going legit. The Digital Currency that jaime diamond called a fraud will step into the mainstream of finance now that cme has said it will introduce trading in bitcoin by the end of the year. This will finally bring it regulatory clever. Regulatory cover. Bitcoin climbed to a record high. There is a variety of issues at play and markets. In markets. A party in the periphery. This is a story about the bond market. Doesnt this look like does this look like a bubble . Housing bubbles and bond bubbles. Let us talk with our chief economist. Do you see a bubble in european Government Debt . One of the bubbles that stands out here is very clear. Answer your question directly, in the business of shortterm with mario draghi. 2019, i dont think there is a trigger. Lots of european debt. We know that he is winning the argument of governing council to remain stimulative. But what comes next . We are talking about fixed income investors outside of the sovereign space. Partners this part of this is the space where investors hard this is thet of space where investors had to go. In terms of volatility, this discussion we had, volatility in terms of the vix. That if this concern Something Big happens in markets, this volatility could spike a massive cell for filling prophecy in many ways. 2 trillion, in terms of volatility. Much more than ever on the markets. This is the transition from a into one that starts to feed off itself. This is almost unrecognizable from a decade ago. We do not know what checks and balances are in stock. The economic momentum starts to feed into a negative space. This is the real thing the regulators have to understand. Prepared to gu ide Market Participants for an interventionist start. Were talking about where the next crisis comes from, and we think it could be right here. See something we big happen . The stocks could sell off and volatility could rise. Concern, the idea that the multinational retail have actually havent aroundsion of a solvency their ability to back. Bank, they havent been submitted to the stress test scenario. But what is the response of those counterparties through the etf market . I thought the whole point about the journey be troubled i thought the whole point about the journey we traveled from since 2008 was doing more on exchange to make sure party risk in theory is negated. We do not know. Regulation is designed to protect the consumer , the taxpayer. But not the institution . Correct. Bitcoin is now a thing. Some have said you cant be interested in bitcoin, but now . It has overtaken london house prices as the public conversation i am exposed to. You see a flag for bubble territory. Somethingw there is but going back to the principles of cryptocurrency. 99. 9 of investors are wholly inappropriate for the vast majority of investors. Thank you. Conversations have changed. U. K. E brexit bill the says it is preparing to compromise on its standoff with the e. U. This is bloomberg. The dollaryen. The yen is coming through. We have re broken some out of japan. We already broken some out of japan. We will bring those to you as soon as they break. , we are seeinges japan leading, with tech stocks gaining. We have this percentage of the one day change. Asian equities are trading at near highs. There is a kiwi surge as well. Bucking the trend of general dollar strength. Up over two days 9 in the session. Electric cars. The latest coming after glencore. We have the fed decision coming. Morgan stanley has given ranges for what might happen in the short term. The teether range is between is and the taylo range between 2. 5 and 2. 7 . Nordisk, an update. Outlook for the biggest maker of this diabetes drug. Bullish compared to the previous guidance we got. Singledigit sales have grown. U. S. Ressure ohas been on insulinnces, prices, and that has been the pressure on the new ceo. Up and guidance. Incredibly important. A new dividend. A new buyback. There london is upping their overall output. Low cash operating. The highend of their production guidance. Quarter production, 89,000. Signaled it ist preparing to compromise on its standoff with the European Union on the brexit bill. There is an effort to end the deadlock. Top lawmakers in london have said the eu would get the better deal financially. Everything is agreed, and nothing is. We have our chief economist, simon gordon here this morning. U. K. Government is looking for contingent payments on the divorce bill. There is a public commitment to a future trading relationship. There we need tos suggests get something back. Hitting toward the budget or regarding how much or little wiggle room the chancellor will have. We have seen quite huge job creation. Almost 3000 new jobs have been created in support of brexit. Thing that ties the hands of the chancellor. The competency that is happened on sure needs to go back to the u. K. There is a problem calming there is a problem calming, which is the productivity aspect. There is longterm fiscal sustainability of the u. K. s financing. To the does that do fiscal which is missing targets t hey are they are in tehe weeds, but things an can bget bettrer . Better . Hings can get we must not access about the shortterm deficit dynamic affecting government interest rates. What matters is the longterm trajectory. Addressing health care and guildns will impact investors within the longterm horizon. Is the government actually dealing with that. What is the outlook for you around productivity in a u. K. Context . We had a good conversation around the return of catholicism, whether it is really coming back. Said that labor is cheap and relatively easy in the u. K. The pace of technological change means that estimates on the return are very uncertain. This can destroy. In terms of the u. K. Specific ones, the shortterm impact means this is all about skills on the longterm. Carney may have to use this as justification. We have done a poll with analysts, whether you go with a with a dover hike or not . I would do none. The bank will go for dovish. Augest a guest from jp morgan said the u. K. Is not immune to the global story, which can carry us through. The economy hasnt some specific factors. Things thateries of are going to impact the u. K. Consumers. The bank may go on a tightening cycle. Would you call this a policy mistake . Emergency stimulus can be removed from august 20 august 2015. Simon, thank you so much. We will be speaking to the former bank of england. Two the former head of the bank of england. Gasolineand inventories have declined last week. Yousef, explain. Metric it is the key when it comes to the understanding of this Global Rebalancing process, and whether it is healthy. Data, thek at the api Bloomberg Survey is looking at more conservative is looking more conservative. It will be the fifth time in six inks you see a decline inventories. It is something we can all get excited about when it comes to the fundamentals. Dive into the bloomberg with me. Futures for december 2018 are trading at the biggest premiums since early 2014. Of tighteningy supply in the group market, trading at its most bullish in more than three years. This is something the Bloomberg Gadlfly called out. You are seeing more bullish in the brent contract than the u. S. Contract. There is a possibility for the uti contract to play catchup, and you could look at that spread be narrowed. You could look at that spread being narrowed. The middle east markets. 100 . We are all diving. Watch bloomberg on your mobile device or listen on Digital Radio in the london area. Investors have a lot to think regarding themp, fed chair and the rate decision. Veryll bring you the latest on the developments on daybreak. This is bloomberg. 6 46 in london. 2 46 in new york. Dreadful vents yesterday in manhattan events yesterday in manhattan. Let us go to the newsflash. Attack has killed eight and seriously wounded several more. The driver of the vehicle was stopped by police after the event happened block from the from the site of the world trade center. Facebook, google, and twitter have told congress they are not extensively russia meddled in it last year in election, but the will redoublethaey their efforts by the end of 2018. Doubling more security and engineering efforts, putting in place tighter content restrictions, launching new tools to improve added transparency, and requiring more information. We are building Artificial Intelligence to help locate bad actors. Bitcoin is going legit. The Digital Currency that jamie dimon called a fraud will be introduced by jp morgan into trading by the end of the year. This will provide the currency regulatory cover. Has gone up 500 this year. Goldman sachs is hoping to turn around its commodities business after it had its worst quarter performance in the federal history of the public company. Said it has added a managing director. Coming join in the weeks. Four of the groups top manangers may leave. The group employed ten Money Managers and used capital to bet on stocks, bonds, and currencies. Managers are close to exiting. That is your Bloomberg Businessflash. Mobilecas Biggest Network we will discuss. Robert. To the show, companies are set to benefit in terms of the size of the market. Are you feeling the competition . We operate across 22 countries. I think in nigeria, weve had ,ur business focused well operationally. I think in south africa, we still have a lot of hard work to do. We have made a very good start. Venture,n the joint things are going pretty well. Lots to talk to you about. In terms of the country you withte in, are you happy the portfolio of countries you are operating in in terms of the mna . Are you a buyer . Focus is toary of thee operations existing portfolio into make sure be happy productivity we need to build to be successful we have we have the productivity we need to build to be successful. Months to come, there might be an opportunity to participate in legislation. Now, it is focused on existing operations. You are optimizing your focus. One thing the market is focused on is what is going on in nigeria. What is itate us on that is holding you back . Mtn nigeria is focused on getting everything arranged for the ipo. It is a complicated process. A lot needs to be arranged. The nigerian stock exchange, a lot of buyers, we have to get everything ready. Market conditions we are watching as well. Withe moving forward anticipation in the next six months. We will have an idea from you then . Yes, subject to market conditions. You need to wait for the right conditions for a successful listing. Story,king of this farmers in Northern Nigeria called off various operations including operations, mtn, to do more, to block sim cards that arent formally registered. Do you need to do more . Registration is a complicated area. There are a lot of concerns for areas of unrest. The ceo has been meeting with nigerian regulators. There is more we can do. We can put those plans together in a constructive way. Iran is a critically important part of this for you. Waitingholding back in to make investments, waiting to see what the trump deal is on iran . We are not. We are putting a lot of investment into the ground in iran. Companies have been able to fund its own program over the year. S there is a huge demand for mobile data in iran. We are working on a project that fixplay. F a consumer it is business as usual for us in iran. We see interest from the European Countries coming to market. We will allow the american issues to play out their logical course, but we are not waiting for anything. Is their money around that you want to read patry eight repatriate . Have had dividends that were owed over the past couple of years. Thare looking to repatriate ose over the next six months. Were talking to you from south africa. Unemployment is it still high. Unemployment is still high. What is growth in that market looking like . There is a growth of data across the South African market. Most of the operators are growing around 5 6 . We are doing ok. The South African economy desperately needs growth. Of a could have more growth trajectory, that would help. Mtnhank you, the ceo of group, robert shuter. An hour to go until the start of european trading. Nordisk raises ebig forecasts for the year. And deutsche telekom. Obile and sprint are reported to be running out of time. And lundin petroleum. We will keep an eye on all of those at the start of trading. Fromg up, and enough george poppa an email from casts a pallpoulos on the trump president ial campaign. We are waiting for the tax congress. Om the u. S. And new york wakes up after a terrible terrorist attack. And we will talk about the metals and mining world. This book, google and twitter have told the u. S. Congress they extentsure of the full in last years election. They also said they dont get have the technology to prevent it from happening again. Company has vowed to redouble efforts in the case of facebook. The staffing will be increased to 20,000 i the end of 2018. Is set to step into the mainstream of finance now that cme has announced it will be introducing trading in Bitcoin Futures by the end of the year. Of thee will up the Game Software created asset and bring it some regulatory cover. Bitcoin climbed to a record high after the news went out and is up or than 500 . That is your Bloomberg Business flash. Thank you very much. The cio of Natural Resources at blackrock is impressed by bitcoin, as well. That is not an official view from blackrock at all. Lets get the official view from the market. Nonopec, for 2018. And a sharet, buyback yesterday. How sustainable are these levels . 6. 24 for royal dutch. Do you worry that the dividends are not sustainable . Is the market getting it wrong . We are going to rate transition. We have seen significant underperformance of oil shares this year relative to the oil price. It is very unusual and this through,we have been we think it is a significant opportunity for investors and we are as efficient at that way across funds. On the dividend yields, i find it fascinating that the Mining Companies went through this were rendered. Karen this period in 2015 when we had this enormous collapse in confidence expressed in resource equities. The collapse in the oil price was so severe that companies forced them to change very quickly. They rebuild their businesses much quicker than the Oil Companies. Way, the Oil Companies are lagging the recovery. Views, i think that is ahead of us and you will see that in investor confidence. When i talk about people being underinvested in Mining Companies, it is a different level of underinvestment in Oil Companies. Manus you think it is more . Evy way bigger. If you look at the Merrill Lynch surveys, it is a bigger consensus underweight. Ask you about another piece around the sector, the ipo story. Away from the specifics, is this a positive sign that the company the soviet Resources Company can come to london and price. This is something we saw a decade or so ago. Got ipos in general, i asked this the other day at the small end of the space, there has been poor ipo performance in terms of share prices. One of the companies has done well, but it is early days with regards to confidence around ipos. If you look across north america, we have seen more support for companies. A couple of them have done very well. Is interesting is Companies Come into market with that areectations acceptable to new investors, when we are not seeing a great ,ust levels like we saw in 2007 we saw massive valuations coming through. We are in a very early part of the recovery. Weve got a long way to go. Anna time heals. Manus if you are relatively boorish bullish on the court commodity content complex, where are you on gold . You probably want to load up on gold in a hedge. The you believe that theory or how do you think gold will trade for the rest of the year . On we have had this view gold that has been range bound for 2017. What we have seen this year is a strong start for the dollar that has come off. As it has, gold has moved to the top end of its trading range. That relationship very much intact. That never negative correlation gold has had with the dollar. Speaking with a lot of companies, the challenge gold faces is where is the next bit of gold going to be coming from . Manus thank you very much for being with us. The cio of Natural Resources of the equity team over at blackrock. Anna Bloomberg Markets the european open is next. Or have bloomberg tv bloomberg radio, the latter is on your mobile the vice or Digital Radio in the london area. Higher at theted start of european trade in half an hour. Us is bloomberg. Guy welcome, you are watching Bloomberg Markets, the european open. Your first trade of cash equity coming up soon. I am guy johnson in london. About the headlines. Whatever strikes new york. Eight are dead and several more seriously injured after a man planning cloud a truck down a bicycle path. Tomorrow. Fed until
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