End . Matt it will be interesting to talk about that, only an 800 gain for bitcoin. Im going toy go speak with the ceo of ing and of, deutscheeo Deutsche Bank, and i will stay here to see how janet yellen get on with mario draghi of the ecb. Take a look at where futures are pointing this morning. As we see the pound down, weve had a game in u. K. Futures. Futures,ee cac ibex futures, also pointing to a strong gain. That has a lot to do with the currency moves, as always, guy. Guy what is happening with the pound is fascinating this morning. The market is getting antsy about theresa mays action. Down, but itng is interesting to see how much support there is, trending down 9 on gol. D up. Ssive rally take a look at the mliv. Its sitting right on the trend line. There was a lot of selling in the last 20 to 25 minutes of tradeing, and it is nice to see what kind of support there is. That is where we stand at the moment. As matt said, it looks like we will see a slightly longer open the morning. Lets get the bloomberg first word news update. Trumps. President donald has said he has a great relationship with the president of the philippines. That came as he ignored shouted questions about alleged abuses the manout on running narcotics. Fed president Patrick Harker has become the latest u. S. Policymaker to sign onto a rate hike before the end of the year. Speaking exclusively to bloomberg, you expect to be supportive of a rate hike next month. These comments, head of wednesdays u. S. Cpi data. In saudi arabia, a senior official said king salman is not planning to advocate in favor of his son. The crown prince will soon ascended to the throne. He said application was unthinkable, especially since the 81yearold king interest perfect health. Speculation that he has found is false. The pound has weakened that 40 or more members of parliament will sign a noconfidence vote, meaning theresa may is struggling to maintain her grip on power. There are mounting calls to Boris Johnson, and the eu has raised its prospects for bre xit talks by the end of the year. South koreas finance minister said pyongyang must show that it is moving away from the old ways. Sanctions are working. That could mean they are finetuning the technical aspects. Hvave thisod we period of no provocation. Matt global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. This is bloomberg. Guy thank you very much, indeed. The u. S. Asters might be losing their luster after fridays s p thing. Then theres the distant flattening of the u. S. Curve, rising back up into about 2. 4. Wed just be hearing from mr. Harker. Ried or he is concerned that we will get towards an inverted curve. Harkerthink mr. Has the right to be concerned . Patrick that normally signals a recession will be coming. I think we are still a putt away from that. I think the curve will continue to flatten. Normally equities do well while the curve is flattening, and must we get some sort of extreme level. Yes, he is ultimately right to worry about an inversion, but it at thatsoon to fofcus on hat rate rise. Houston is the inflation data we are getting on a believe it is november 15 . Patrick it does not really matter for the december meeting much. As harker implied, it is a most impossible to not hike now. The december hike is almost baked in. It would take a very Aggressive Campaign for them not to hike in december. I think the december hike is a given and the inflation data matters for the past next year. They want to normalize. Quote when they can deliver the three hikes next year on the dot plot, that will depend on whether inflation picks up next year. It matters not so much for the month of december, but for the curve. Guy we are down again, three, four, five sessions now against the recent trend. We are at a pivotal nna hold. D its goinn if we break below that, what is nikkei. The mee things like a lot of people were not ready for this trend. People are trapped, which tends to indicate there are daytraders that are longer and they have not gotten their clothes in the ready position for the end of the day. So, this is a little bit of a bearish price action. For that reason, i think there is a chance that he breaks. The are providing a lot of stimulus. Growth is picking up, only a little bit, but it is picking up and there is some normalization in equity markets. S if that trend line breaks, he will get people a bit worried. They think this is a continuation of the original meeting we had last week. It is not about a structural switch, it is about the fact that the correction can last maybe a few days, maybe a couple weeks. Matt i wanted typically ask about bitcoin. We talked about another cy taking the limelight, but that is a spinoff of bitcoin in the first place. The hurt that bitcoin has we are still a 6,000 in change here. Kind of it is the same old story with bitcoin, it will remain very volatile. Its there. Like,gamble, overall, bitcoin to continue to move higher. This should not prove a t chan in trend. Perhaps even bigger corrections in the future. This is all about the greater food. Ny more peoplea into this. There is a lot of money to be made still. Volatilet will remain and then it probably will because of who you hire. And at some point, there will be the mother of all corrections when she causes a lot of pain. Mark, where do you thing youre going . I do think this week the pound weakness might be more against the euero. Dollarassets trade last week. I think eurosterling might be more obvious to trade. 1. 40 is the30 to level of cable people are watching for technical reasons. Mark cudmore, you can follow his life strategy and the entire team, richard jones, commenting on the pound just go. Can get set up quite well i think for your trading day. As donald trump needs rodrigo te, we will bring you the latest on the president s asia trip. Tour. Eena whirlwind guy 15 minutes until the start of castrating in new york. Heres the bloomberg first word news. Reporter uber is approved a multibilliondollar stake in the ridesharing company. The agreement let softbank and other firms invest up to 1 million in uber and during the upcoming me, purchase up to 9 million in shares from existing investors. The deal also includes uber governance changes. Uber is committed to services to airbus, lyft other ride sharing companies. It is not dissimilar to the 359. Hort range. Buncht use a alibabas business they generated 23 billion wotrth of sales. Postedinese Company Video of a staff rapping with williams. Matt the imf managing director has sounded and optimistic note on global growth, excluding speaking as exclusively with christine lagarde. The Global Economy is recovering. We went from 3. 2 last year, this year, 3. 7 next year, catching up with prefinancial crisis levels. Continue to be this Growth Engine it has been. Compared with the outrage of , but in asia i did mym my are at 1. 2 . You have countries that are relatively at low inflation levels. We believe Monetary Policy must recoveryto support and impact price levels. But there are places where inflation is quite sensible and good levels. Anna having said that, do you see several bags in asisa tightening in 2018. Monetary policy will be tightened in those countries where the economy is picking up, efficiently fast, and we are seeing rising inflation. This is going to be the case fo rthe u. S. The u. K. Has recently raised Interest Rates again. But in this part of the world, im not sure im seeing it the right way. China yesterday opened of further the financial sector. Is it normal . Or is it significant . Was telling your friend that Financial Services have to be better integrated and and open to trade exchanges. Thats one indication. Weve been hit with many different economic barriers for direct investment. The fund that it is considering to remove at least pac rtually above those barriers and then move after midnight to above 50 . An need two things, openness and also, that is a strength and confidence. Matt staying with the asia story, donald trump has hailed a great relationship with philippines leader, Rodrigo Duterte eight. Thetwo men met in final leg. Stephen, what progress has trump than making on this bilateral. He shunned the tpp, but is looking to make trade agreements bilaterally with a number of asian countries. Yeah, the success depends on who you ask. If you ask donald trump, he said, we have made great progress. The beginning of this trip he has big trade deficits with. We have three stops a long way to go in those three countries, i really focus on a lot of other issues, but japan and south korea. Right. Mind, youre wants technical investments, that is more dynamic for the united states. Thatis oenne here, i love train. The 11 remaning members, they have secured a Framework Agreement already at apec. So, they are pushing the ball forward. They have a lot of hurdles, though. Productular involved, as well as intellectual production. On the other hand, you have a protection from being pushed by the indians. But there are a lot of problems there with those 16 member nations because you are trying to get an a good will, open, Free Trade Agreement amongst 16 economies that right now are not open to each other, including india. India is exacerbating the already 49 billion trade deficit india has the china. India is really good in services. China dominates elsewhere. There is still a lot of room for progress to be made. Stuff. Ephen, great. Wemeeting, this treep are minutes away from the start of european trading. Lets take a look at the stocks we should be watching. Order went boeings way. An eye on theeep an well. Ufthsania as bu guy five minutes to go until the start of castrating in europe. Lets told about the stocks we are focusing on this morning. Airbus, disappointing him quite airbus, arab disappointing tim clark over in emirates. Bitcoin . Is down after the second session, 2x. Terdayown from 78, its in high still, a massive price and a big drop of about 25 over the last week. Eye on some of the oil stocks as well. Anyway, the market open at the moment, looking positive. Guy welcome back. Lets take a look at with the fair values are telling us. Germany, positive start. London looks like it is going to outperform. We have seen the pound weakening. The ftse 100 has a nonsterling base revenue stream. You have to reprice that revenue stream. The aussie is going to tick higher and outperform this morning. You can do this on this wei. There is nothing to write home about. Matt, what have you got . Matt that inverse relation between pound and the ftse, it could start to pick up a little bit as far as volatility. 7138, take a look at btv you can see one month fall on cable starting to rise again and theresa mays government comes in to depth. Guy lets see how this through as anticipated. The ftse 100 in positive territory. We will break down the individual moments. In terms of the gains we are likely to see, the ibex hanging around that 10,000 level. We are going to see a few more numbers. 4 , the ibex trading. 3 . As anticipated, we are opening up in positive territory. Lets give details with nejra cehic. Nejra lets start with the gilt market open it we saw the fiveyear tenure the along with european bond yields. We are seeing the 10year gilts track with the bond yields are doing. Down 1. 33 . Could on to the equities you talked about them being on the front foot, where up. 2 we are up. 2 . If we look at and it just included distribution across industry groups, heading higher. Telecoms and materials leading the gains along with consumer staples. The little rebound we are seeing comes after a number of these main indices saw their worst week since august last week. Here is a little bit of a technical chart showing the stoxx 600. It had its worst week since august last week. In terms of where it goes, one thing we could talk about his valuations. This chart is showing relations in europe and emerging markets. Guy thank you very much. Chinese data coming through. An estimate looks a little bit like aggregate financing. Lets talk about what is happening in terms of the moves we are seeing in the markets. Sunopta is down 8. 6 . Bayer, all softening up. Im going to change this to percentage. You still have edf in there as well. A quick look at where we are seeing the big percentage gains on the upside. The market is softer which is why the losers on the left. Some of the miners a little bit as well. The stoxx story continues to dominate. Youre getting some decent exposure in terms of some of these movers this morning. This morning come once again, matt, we saw evidence of that. Matt a lot to talk about as far as fixed income treasuries. Philadelphia fed president said he doesnt want to see the yield curve inverted, speaking to bloomberg. He expects to be supportive of the u. S. Rate hike next month. Patrick there are a lot of likely suspects. One is simply other banks continue to be highly onemmodative, and that is of the reasons why we are seeing the long end flat and out. The pace has to be gradual, do you think we will not see any inversion of the curve . Patrick i would like to avoid any inversion of the curve. My goal is to remove accommodations in a way that we do not run the risk of inverting in curve the end curve. What does it concern you to see the yield curve this flat . That is a sign the economy slowing down, this expansion has grown pretty long in the tooth. Patrick we are starting to see labor markets and unemployment at 4. 1 . Our forecast doubledip below 4 before coming back up. We are seeing a lot of tightness and labor markets. We are seeing a lot of growth, limitations in the economy. Expansion has been quite remarkable for along it has gone on and continue setting pace on job growth. It has been remarkable for those reasons. Also for what we have seen in the stock market here in the expansion period. As the Balance Sheet of the fed has increased, we have seen stocks go up. Will you guess are you confident we will see that thousand seat maintained . That balance patrick weined . Are trying to do this in a way that is as boring as watching paint dry. We want to make this slow, steady, on autopilot. Then use changes in the fed funds rate as control variables. With howee us playing we are doing the Balance Sheet. I want to keep that just easy, clear, concise and communicate very clearly what we are doing. Chatwell ats peter mizuho. A lot of our discussion with parker is pretty much a done deal as far as the markets are concerned. If you take a look at it, it is the flattest we have seen pete we have a chart have seen. We have a chart here. Harker said while we do see tight labor markets and are a lot of tenements to growth come are you concerned that this flattening yield curve is predictive the end of the u. S. Expansion . Peter i am not too concerned about that. There are a number of reasons this time is different. The fed is telling us that our start is close to zero. That implies that all else being equal, the peak fed funds rate should be somewhere around 2. 25 . It is inconsistent with what they are saying the peak fed fund should be. If you take what the market simply they are pushing fed funds close to that peak, right . 2 shouldmply the be flattening. Weve got President Trump trying to press through fundamental changes on the tech side it also potentially looking at changes on the tax side it also potentially looking at the tech side which is underestimated by the market of the weaker dollar. We have the structurally weaker dollar compared to how it is traded over the last 12 months. That is due to a resurgent euro. This means financial conditions for u. S. Corporates are now easier than they were. I think we have the potential for this to elongate the Business Cycle in the u. S. Which would mean we could even though the curve is flattening, still has further expansion in the u. S. Economy. Matt will that change . Harker index three rate increases next year. That combined with the possibility of tax reform, doesnt that strengthen the dollar . Peter i dont think so, because it is not just about rate differentials. It is about where the flows are going to be. If we take into account the shortterm Interest Rates, differentials could be widening. That would mean from an International Investment perspective, European Assets will become more interesting, because once you hedge the currency risks, it will mean European Assets will become more interesting relative to the dollar. Even yen assets will become more interesting, relative when swapped into the dollar. These dynamics are complicated but it means we can still have Interest Rates going up in the u. S. Causing some pains for the bend of the curve. The shorts are correct. Would also mean we could have quite a benign outcome on the u. S. Curve is rates go up. The 10year point, we think it is the 2. 5 . Next year goes up to the 2. 70 area. It is not a big structural change. Dollar underperforming. Guy the thing about central , with the ecb and the boj continuing to pour money into the markets, talks about watching the paint dry. That is what talks about reversing the qe program should be like. Assuming the boj keeps lying just keeps buying, that money is good to find its way into the u. S. 10 year. The u. S. 10year is not reacting to anything happening in the states. Are an environment of yield suppression. The currencies, the investors want to be buying. They are forced to move into other areas. This is why they are still theyre still a relatively flat yield curve in the u. S. Because of that foreign demand. You have an understanding, how big an external element is there in the u. S. Bond market . Because the front end of a veryg logically, it is negative term premium in the u. S. And i think you can see the flow data was really strong into u. S. 2015 2016. It is not so strong the share. There is a bit more uncertainty about the market dynamic. Weve also got the potential on the fiscal side. It could mean it is inflationary. It is a function of when to yield and to carry on the european and yen markets, when it is diminished. When we get to extremely low as theof 20 basis points curve in japan really flattens out, then there will be more demand. I dont think it is going to be disappearing for another two years. Matt all right, peter we are going to keep you with us. Theres a lot more to talk about today. Trumps tour in asia is wrapping up. There is the airbus boeing deal which is incredible. Kuroda,carney and global policymakers are gathering here in frank fort frankfurt to discuss what is on the agenda for euro finance week next. This is bloomberg. Guy shell, the companies to sell 8. 5 of woodside petroleum. Isnt but that stuck out of the it is going. 10 to put the stock out of the door and 31. 10. We are getting that confirmation coming through. The sale is expected to complete november 14, 2017. Inducing r reducing its interest. This is a big lump of stock that is going out of the door. You got to reduce your and. Reducing the overhang. We will continue to follow that story as it develops. I want to talk about in frank for it, it is euro finance week. The conference at which i will be speaking with the code deputy ceo of Deutsche Bank as well as the head of img about the future aig about the future banking. Mario draghi is going to meet with kuroda and others tomorrow. Theres a lot going on in frankfurt. Peter chatwell as to what this. Peter chatwell is still with us. You were saying that you think we can see some euro strength continue here. Even as the u. S. Fed raises rates, why do you think so. It is not just about rate differentials, you said. Peter the flow side of it is so important, because since 2014, as Interest Rates went down and went negative and when the ecb starts the qe, theres been a strong European Assets it is Asset Managers looking to underweight the currency but think about those who got a Global Portfolio such as an fx reserves manager. Because of the negative yields in the front end of the curve, there was an exit is from that there was an exodus from that. There is the hope that the ecb will be up to normalize policy, there will be investors who will come back to the asset class. We would expect that there is a flow affect that is coming back which means differentials which is a guide for those looking for a carry trade, continue to be less relevant. This even though we didnt have a lot of populist wins in the election, we did have some real presence here in germany. In eastern europe, you did have some populist strength in elections and italy is yet to come. Dont these things scare an investor looking to european highyield debt as it turns around or stops the momentum to integrate the eu . Peter none of these features, even though they are relevant now in the countries where they apply amd is relevant in germany afd is relevant in germany. Euroesnt have much of a zone impact. It is unlikely to be able to get a majority or be in a position i want to form a coalition with any partner. It doesnt seem like theres anything on the horizon. Got more likely outcome, more European Solidarity measures taking place. That is more important to the currency. Of aice the potential medium to longterm normalization of Monetary Policy. The euro area is investable. Guy that critical factor. Matt, who did you say would be in town centralbank wise . Matt we have a lot of people in town. Kuroda may be one of the more interesting guests. He is going to go over to the ecb and meet with mario draghi. Is interesting thing to me if anyone wants to concert action, it is the perfect time to do so. Guy that is where i wanted to go. We have the center story and we talked about that. For many weeks, that meeting down and portugal. As you start to see central bankers in the same room, coordination may be a step too far but i am looking at mines. Event with thean market having sold off over the past few sessions, i can understand why there might be reluctance to get back in. I would expect by wednesday, we got the possibility of downside to the u. S. Inflation. Wednesday is the time when there is an appetite to buy. This event on tuesday is a reason to be cautious, just in case they come out with something that spooks investment. Guy these could put the guys in the same room. Just kind of looking at europe, the way you play europe if you played that europe is normalized and if you believe that a youre going to be seeing a running off on the Balance Sheet. How do i play the trade . Peter if you believe that the ecb is still going to be patient in their withdrawal of monetary stimulus, that implies they will be waiting until the eurozone recovery, not just a core story but it has momentum, therefore putting nominal Growth Expectation back up to levels that mean that european periphery debt is sustainable. One has to outperform one has to overweight european periphery. The natural recovery traits that there is. The core curves would be steepening. Of we have a lawful out this we have an awful lot of data coming out of europe. You want to figure it all out, there it is. There is your ego screen. Eco screen. Peter is going to stick around. Up next, we are going to talk about some of the movers in the stock market. Ultra electronics down more than 20 eight what is interesting here is there is a downbeat sent around the British Defense sector this morning. Mod expending mod spending, etc. Couple of stocks to watch out for. We will do those stocks next. This is bloomberg. Guy lets talk about the market open and the stoxx that are moving up. Nejra guy, let me start with Ultra Electronics shopping the most on record and hitting a 2009 low. Bit of a triple whammy hitting the stoxx. The ceo has stepped down. The company has cut a for your guidance. Cut a fouryear guidance. Systems, courtal offense and security. Some of the seceding from the other u. K. Stocks. They are looking on to other other losers. Company drops the most since 2016 and hitting its lowest since december 2016. It is going to increase its investments. Expenditures to slightly reduce profitability on a temporary basis. That weighing a bit on a stock. Looking at the close of retail droppingl kappahl the most since 2012 on a profit warning. Guy thank you very much. Talking more to what is happening on the united kingdom. The pound is weakening up. Theresa may is pressing a cash is facing a fresh theres a challenge is facing a fresh leadership challenge. The conservative party close to being split. The Prime Minister will speak in london later on this evening. We will look forward to that conversation and what we get out of her speech. British politics certainly affecting the pound and the ftse 100. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Matt Philadelphia Fed president tells bloomberg he does not want to see the yield curve invert, but how close to that are we . Sterling slumps as theresa may faces another leadership challenge. The Prime Minister speaks at 9 00 p. M. Ek time u. K. Time. Is this years more than 800 surge coming to an end . Good morning and welcome to Bloomberg Markets european open. Im matt miller in front for alongside guy johnson. Guy . Guy lets break the market down and look at which sectors are moving. Where are we seeing the rotation . Nejra brought us some of the movers earlier on. Food and beverage, health care come autoparts business looking for little bit of safety looking at that break down. You tend to buy those less cyclical stocks. Autoparts doing reasonably well. On the downside, the Retail Sector a little bit harder this morning. Money rotating out of that. They financials also getting back a little bit of ground. Is the rotation story that we are seeing within the market. Movers. The fixed stock we are seeing what is happening with ultra. Lets catch up with what else we need to know with Bloomberg Business flash. Sebastian u. S. President donald trump says he is a great relationship with the president of the philippines. This cames this came as he avoided shouted questions about abuses. Up on the orders of the commanderinchief of the united states. Philadelphia fed president has become the latest u. S. Not to do a rate hike before the end of the year. He also said he doesnt want the yield curve to invert. There are a lot of likely suspects. One is simply the other banks continue to be highly accommodative and that is one of the reasons we are seeing the long and flatten out. I am concerned about that. That is why the case of removal of common nation has to be gradual. Sebastian in saudi arabia, an official said he is not planning to abdicate. The official dismissed speculation that the crown prince will ascend to the throne. Lebanese Prime Minister has dismissed speculation that he is being held against his will in saudi arabia and plans to return home and days. That is as he made his first public comment. He will speak to the governor after 10 30 a. M. The pound is weaker after the sunday times reported members of parliament have agreed to sign a letter of noconfidence to theresa may. May is struggling to maintain her grip on power after the resignation of two cabinet members. To hasks failing drawn praise from the imf team. Speaking to bloomberg, could you lagarde describes the move as a positive development. The fact that it is considering to remove at least partially those various, and to move above the threshold of 50 and gradually eliminate those thresholds, that is an indication of two things openness and also that is a strength and confidence in their own system. Sebastian global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. Guy am matt . Guy and matt . Guy the pound has dropped significantly. Theresa may may face a fresh leadership challenge. Is short of the number required to trigger a vote. Now is now is joining us , peter chatwell. Eight sounds like not very much but getting 40 to 48 is quite a big leap. Especially when you consider the current situation. A lot of people about by themselves in the conservative party. If they trigger a contest, you got a lot of tory mps. It is a bit of a leap. It is a part of the situation the government finds themselves in. It may keep her there. when you take a step let step back, it all looks grim. You are finding yourself in a does personal ambition gets you to the point in which you are willing to make a leadership challenge . The background so difficult. This strength story since rebuilding up on it. Night you got the scoop this kryptonite that poisons everyone that touches it. Who would want that job you want that job . There is no clear front runner at this point in time. That is why we may see this go on quite a bit longer. Peter for brexiteers, the conditions on a longer as supportive as they were. The negotiations have gone on for some time, and now if they want to push and caused them to break down, they wouldnt be so bad if they had done that at the start. I think because theres been ,nough hardball from the eu, the brexiteer doesnt lose face if they say we cannot negotiate with the eu. Person this is the big question. Would you say, you know what . I am going to come in and i think i am the right person for the job. As we have learned, do you want to go back to the nation and ask the question . The opposition parties when teaming up with the program and its could get that through the house of commons. It could force a vote. You probably have come if there was a probe is a leader, you could have them forging ahead allowing it to break down. And say we are out, guys. We have achieved brexit. Guy if youre conservative mp, do you worry more about brexit . Or your seat . Peter you have to assume so. There are many of them who would lose their seats. British public has put up with quite a few votes and i think the last one has proved to be very unpopular. Have another one so soon . There is a huge amount of fatigue in the country. There is a next dictation there is an expectation that it does need to carry on. Try to get a deal in place and see how the landscape looks. See. Now, it is hard to guy how does theresa may answer the question being asked by the europeans to get a final offer on the money . Theis dealing with leadership challenge, difficulty surrounding Boris Johnson and other core members of her team. You got two weeks. Youve got days to make a decision on the number you can offer by the structure on which that is one to be built. Said everyvis negotiator tries to set their own timetable. We have European Council meeting where it is important they get this permission to move the talks forward to trade. Realistically, you got to have some sort of breakthrough and little bit of ahead of that meeting, the leaders can come to a consensus. To get anything on the table by next october, almost impossible. Guy how vulnerable are u. K. Assets . Meat youve got an event coming up with good set the pound sharply down or up. Pressing the ukip the moment appears to be increasingly difficult. Peter the symmetrical asset is still on the ftse 100 because it supports it. The ftse 250 has less of that affect. Still the good cell versus swap. The good sale versus swap. The possibility the conservative government really pushing the leadership government. Elinquishing their leadership there is some subtle trades out there, mainly involving being short gilts and being long u. K. Equities. It sounds counterintuitive when we are going to shut up situation. Just going into a stressful situation. Guy where is chancellor and all of this . In all of this . In a bunker putting a number together. We will hear from that on the 22nd. He is very firm in the remain camp. He doest around feel a little bit isolated. The uks total running a budget deficit. There is no money and hes got to somehow put something out of the bag. Guy if we get another on the i think it is hard to say what happens. What we do know is it there is limited. It is guy david merritt, peter chatwell. Heater is on to stick around. He is going to stick around. Looking forward to carrying out on the competition. We are going to bring you our interview with the president of emirates, tim clark. Shake document announcing that order. It will surprise and tension around what is happening. Fascinating stuff. We will go back to the gcc next. This is bloomberg. Matt welcome back to Bloomberg Markets european open. This is the european open. I am matt miller alongside johnson. Boeing has snatched a surprise dreamliner order for under the nose of airbus. The order for 40 dreamliners spell doom. Yousef gamal eldin spoke to the president of emirates at the dubai air show started by asking him about the price of crude oil. I cannot see it moving outside of 55 to 60 because to likely the price will fall and around what you go but above that the supply calculus has changed a lot in the last three to five years. The higher he gets paradoxically, the better it is for some of our demand oil and gas, banking. On the one hand, we have a higher cost input. On the other, it brings richer segments hang more money. Paying more money. In the past, the higher the oil prices been, the more money we make. Something we are grappling with. I know we can save the company above 100. We have done that in the past. I have no concerns about that. Yousef you have been in this business for over three get over three decades. When you look at the time and look at what has been happening over the last year, do you say this is a most difficult time for the company . Not just in terms of the geopolitics but in coming out of the united states, more nationalism . Tim you are right, i have been here for a long time. As we go in this business, look globallyas happened and one of things we have been navigateo, managed to business through all of it. Of incidence has accelerated. I think there would be too big once a year and now it is one of month. We have to be a debt to that. Is that going to change . I dont think it is. We have major shifts in consumer aspirations and demand driven by all sorts of new things that come to the market. Guy tim clark, the president of emirates talking to u. S. Just talking to yousef gamal eldin. There was this expectation that we were going to see an airbus order. Then the sheikh comes out and they have ordered huge numbers 787 tens. Yousef because everybody by surprise. In terms of the expectations and whether the doors closing, it is not. When i talked to tim clark, he made it clear that the door is still open. He described it as a hugely successful plane and they have just gotten their 180th. He did make it clear that there are a couple of interesting things sorted out from the airbus site. For them to commit, they had to be able to get a guarantee they would build to produce at that rate for that long. Part, and was depends on emirates to make this happen and looks like the contractual terms havent been hashed out. Matt are we expecting any other big orders . Is this going to be the biggest thing that we see . We did get a day one upset. Airbus has a tendency to come back later on. It is a bit too early just yet. The deal we are looking forward , they have increased the corporation with emirates. They are both owned by the government. You can be looking at a deal for 175 jetliners. Maybe theyare will diversify that a little bit and go for a little bit of airbus. Possibly a surprise. Guy one quick question. Normally, it is emirates act yard, they dominate. Qatar is a big feature of that event. Give me a sense of the showing of that event. Yousef the absence is being felt. When you look the gulf, we talk about the three big gulf carriers and the gulf carriers are facing very difficult times. Qatar airways would be standoff with the prices and the fact that the book has been slow to fill. It we hadwhen wanted to 79 billion worth of deals. We had 179 billion worth of deals. Guy yousef gamal eldin joining us from the dubai show. You can watch the show using the tv function. I spun it back a little bit. You could factor in everything that is going on. Here. T bios over you got a charting for the market. I should pop these charts out. Use the sidebar in terms of falling along. Up next, we are going to bring you the stoxx on the moves on the move. That is next. This is bloomberg. Guy 53 minutes into the session. You are watching the open. Lets get some the stock movers. Nejra these are some of the bigger movers. Im looking at tdc which works in the telecom space, up 2. 8 . Goldman sachs upgraded it. I am looking here at some of the sunopta the company did maintain its fullyear outlook. Commenting for the first half of disappointing growth is well below the market. The ceo sending the company sees both on acquisition supporting growth. 7. 7 . Oking at edf down it has adjusted its 2018 target. The decline in french power demand in the drop in competition in the u. K. , some of the reasons for its 2018 target. Matt thank you very much for that. Im checking out bitcoin. You can see it on your bloomberg. It had plunged dramatically, 29 to 5,602 from an intraday high of 7082. Sixit is trading around 200. Not as dramatic now. It is interesting because the reason for the plunge is they didnt go with the breakup. They had previously put a fork in the road for bitcoin miners that worried the market but really recovered from that quickly. It seems a lot of people, including the bitcoin are getting into bitcoin cash, rather than the mainstream bitcoin. Is what i cannot figure out is this a zerosum game . The bitcoinmes out of augusta the bitcoin cash, that doesnt really tell me anything about bitcoin. It tells me they havent figured out which direction they are going to be going in. Is this a story about people getting out of bitcoin or switching within the various options . Latterhey are doing the but the thing is, if you own the original bitcoin, you want to see the price of that go up. Assuming that the price is is your only motivation. A lot of people in the bitcoin community, price is the most important aspect. For investors, it has been key. Guy it is fascinating. You get the portfolio effect as well. People tend to move in and out of asset classes. Not to be ignored. Stay with bloomberg television. Matt, you and i are going to radio. It will be bloomberg surveillance with francine lacqua. Revolt astory sterling slides. Taking a hike in december. Patrick harker tells us he supports a rate hike next month. We hear from him in an exclusive interview. Bitcoin erases 30 billion in gains. Good morning. This is bloomberg surveillance. Happy monday