China allows further tarifffree soybeans aheads. Of highlevel negotiations in washington next week. And we see a united front in europe. Joining the United States in blaming iran for last weeks audi attack. President trump is set to deliver his address to the General Assembly today. Morning. Welcome to the european open. The u. S. 10 screen year yield over the past three days. 1. 7 . It trading at watch out for another selloff in treasuries that would spike the yield higher. Remember, we saw on friday the , friday a up to 1. 9 week ago. Take a look at the futures this morning as well. Have gains across the screen. Even dax futures are up 0. 2 . Are going to get numbers in just about an hour and a half from now. Pmik disappointment in yesterday. Investors may be bracing themselves. Nonetheless, buying futures on the dax index. Mark cudmore, Bloomberg Markets life editor markets a live editor. Germany is heading towards recession. Brings, butisk it it is a major drag on the Global Economy. Not only the engine of european growth. Of derivativeind of the chinese economy given that is where exports go. This is a very big story. I dont think anyone is going to be surprised. It is maybe worse than a couple it is whethert this is going to seed into the u. S. Economy. It will absolutely do so and we are already seeing signs that. There is mixed data from other economies. Matt speaking of important economies that are engines will growth, the chinese central avernors saying he is not in rush to ease Monetary Policy. What do you make of that . Overall, it did not offer conducive rewards Equity Investors may have hoped. He provided a relatively optimistic take on the economy. History ofhis proven showing when they really need to act, they will act. This guidance was balanced perspective. I dont doubt the fact that china will when they get downturn again. We have seen that. When the economy shows signs of falling faster than expected, china has measures to take and they do implement those measures quickly area quickly. Saw the euro bounce weaken. Sorry to bounce back to this topic. The mliv question of the day is the reason i circle back around. Which assets have not priced in a manufacturing slump in pmi . Is the euro one of those . The euro is one of those. I think euro is going to have an ok end of the year. Part of my basis is slow growth is already priced into the euro. I would argue the euro is one of the few assets along with european yields that has priced the manufacturing slowdown in. Im not sure all equity markets have. I understand why credit markets are, but that liquidity means they could turn very quickly. The assets most misaligned are equity markets. It is u. S. Equity markets see a record highs that are most misaligned given the slowdown in soufacturing in europe is drastic there will be a global drag. U. S. Equities will suffer. We are just not seeing it feature to aggressively. The equity market has gone that nowhere for months. Surprised iran for the attacks on saudi arabia . Do you have concerns about the geopolitical risks . With the disclaimer im not a political expert at all, i was surprised. It hink there are under underestimated risks in the middle east. Military conflict is not priced in. , more sustained oil spike and more sustained Oil Supply Problem is not priced into the market. Optimistic pricing has proved correct so far. Like all these situations, it could turn very wrong very quickly. The way certain assets are priced, investors are collecting pennies. They will get incremental gain, but it could go wrong very quickly. Im not sure the risk reward is there to collect at those collect at this moment. Matt thanks for joining us. You can join the debate on todays question of the day, which assets have not priced in a manufacturing pmi slump, certainly we have seen the slump already here in germany. It is spreading. Not only around europe, but around the globe. Reach out to us and the mliv team on your bloomberg terminal. Now lets get the first word news. President trump says he did not ask ukraines leader to investigate joe biden in exchange for military aid, but we have learned trump delayed 400 million in aid to the nation. Call is the subject of a congressional investigation. The whistleblower who flagged concerns has remained unidentified. President trump made a short and unexpected appearance at the yuan Climate Change summit in new york. Howd leaders are discussing to tackle Climate Change as public anger grows at the lack of action. Teenage activist Greta Thunberg telling the summit they have ignored the issue for too long. You have stolen my dreams, my childhood, with your empty words. Im one of the lucky ones. People are suffering. People are dying. Entire ecosystems are collapsing. We are in the beginning of a mass extinction and all you can talk about is the money and fairytales of eternal economic growth. How dare you . China must avoid massive levelss and keep sustainable according to the central bank governor. Speaking at a news briefing, the pboc chief says overall Financial Risks are contained. Chinas growth is on pace for the slowest expansion in almost three years. 30 years. Industrial production rising at the slowest single month pace since 1922 the Chinese Government has given new waivers to several companies to buy u. S. Soybeans without being subject to retaliatory tariffs. The company has received the waivers were between two and 3 million tons of americans way. The Commerce Ministry did not respond to a request for comment. Global news, 24 hours a day on air and tictoc on twitter powered by more than 2700 journalists and analysts in more. Han 120 countries this is bloomberg. Matt thank you very much for that. Coming up, the main event. President trump will address the u. N. General Assembly Today as europe joins the United States in blaming iran for last weeks saudi attack. Bloomberg radio is live on your mobile device or on dab digital in the london area. Tune in. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. Futures rising. 17 minutes from the start of trading across europe and the u. K. Lets go back to the iran situation. The key European Partners of that nation are siding with the u. S. And blaming tehran for the strikes on saudi arabias oil facilities. France, germany, and the u. K. Have said no other explanation is possible. The european nations have also called for an expanded nuclear agreement. Lets go to bloombergs Annmarie Hordern, who has all the details. The showdown between the United States and iran moved to manhattan as 200 World Leaders and thousands of diplomats gather in new york city for the u. N. General assembly. President donald trump speaks today and his iranian counterpart, hassan rouhani, maybe front and center. Iran has second row seats, although rouhani and his minister of Foreign Affairs could choose to avoid the assembly or leave before trump takes the podium. Tomorrow, rouhani has a chance to respond. Talk of a historic summit between the president on the sidelines has died, but friends of both administrations will attempt to shuffle back and forth between the two to broker a deal. That the very least lowers risk of conflict. This has been a goal for emmanuel macron, the french president said both protagonists are there, something may happen. It might be more difficult now, given irans key european allies are blaming tehran for the strike on saudi oil facilities. There are also a few highprofile noshows at this years General Assembly. For the second time in a decade, israeli Prime MinisterBenjamin Netanyahu will not address the assembly. Speeches,his colorful last weeks election has put a dark cloud over his future. He is the most surprising of the noshows alongside Vladimir Putin and xi jinping. Annmarie hordern wrapping it up for us. Now lets get the Bloomberg Business flash. Credit suisse moving to contain the scandal of a former executive being followed. Before starting an inquiry into the surveillance of its former top private banker after he defected to ubs. Drama spilled into the open when investigators attempted to grab his mobile phone. Internal memo the truth will emerge. Facebook has agreed to buy a tech startup that lets people control a digital avatar using only their mind. It uses a bracelet to measure neuron activity. That determines the movement the person is thinking about, even if they are not moving. We have learned facebook is paying between 500 million and 1 billion for the company. Lloyds of london condemning what it calls shocking Sexual Harassment in the insurance industry. That is after a survey shows 8 of members witnessed such behavior in the last year alone. One in five respondents say they have seen people turn a blind eye. Lloyds commissioned the survey after a Bloomberg Businessweek investigation into endemic harassment. That is your Bloomberg Business flash. Thanks very much. Bloomberg has learned deutsche top shareholders are taking the search for the next chairman into their own hands. Representatives of the qatari royal family are said to have held talks with a recruiting firm to find a replacement for they are debating whether to force him out before his term expires in 2020. Joining us now is bloombergs simon. How unusual is it for these shareholders to take an active role . They own a decent chunk of Deutsche Bank. They do. Byse entities, entities held two people, members of the royal the former emir, essentially, the main royal thely, own about 6 of shares. It is unclear whether they are acting in concert here. Certainly, that would be speculation. Unusual for them to want to go outside Deutsche Banks own process for finding a replacement for the chairman. However, the chairman would have been involved in that process for would be involved, i should it remains a Deutsche Bank process. Anybody who has lost confidence in him, which it certainly sounds like they have, anyone who has lost confidence to find someone else, find a replacement for someone you dont like. Expecthat goals might we from a stronger qatari presence . Other than increased share price, obviously, they want to make a decent return, but what is it what does it mean for the chairman if they get a stronger foothold . There have been a couple toications they might want exert more power at Deutsche Bank. First off, they were against the commerzbank merger, warning worried it would dilute their shares. 70 stake has returned since they took a position in may of 2014, but should look at some of the recent executives and Board Members they have appointed. One important one being their representative on the supervisory board. Recently, he was given an important management role. He is Administrative Officer in terms in charge of regulatory affairs. Also, a new representative of theirs coming from a private wealth side. That took place over the summer. Recently, draining the supervisory board. Maybe an indication that they thatto improve and add to private wealth offering. Great reporting. Bloombergs Simone Foxman out of doha. We are minutes away from the open. Next, a look at your stocks to watch, including ab inbev, the beer giant raising 5 billion in the ipo of its asia unit. This is bloomberg. Matt just under seven minutes until the start of trading across the continent. In the u. K. , lets get a look at your stocks to watch from around the newsroom. Annmarie hordern is looking at total. Equities teamour is covering ab inbev of. Dani burger is focusing on eq to partners. In the oil patch. I talked to a guest this morning and said he wants to buy these stocks because he things the dividends will rise. What is the story . Big dividends. Thats the name of the game. Total listing what would have been a 3 dividend to 5 to 6 . They are seeing growing Energy Markets like lng and low carbon electricity, and that is going to boost their cash flow. Matt watch that stock at the open. Comes outab inbev with a successful ipo . Thats right. Unit ipon in its asian in hong kong. Weres of Budweiser Brewing priced at 27 hong kong dollars. Thats the bottom of the range. Ab inbev tried to carry out the ipo after a failed attempt in july. In september 30, and enterprise value of 47 billion dollars. Shares of ab inbev have jumped 52 this year. We will be watching at the open. Matt have achieved the ipo, i differently,ld see you could measure differently their success in that venture. Qt partners prices its shares at the top of the range. Washe top end of the range 68. Certainly near the top. They have raised 600 million. They are one of the biggest if not the biggest buyout firm in the nordic region. Theres a lot of demand for these chairs, especially when we look at the ipo market, how other ones have this to, but still, strong demand. An exciting ipo happening. Matt definitely an exciting story there. Hordern, dani burger, thank you for joining us. Viewers can get the latest stock stories on the terminal. Just type first go. You can also get the first word news with your bloomberg professional mobile app. Coming up, the market open. Futures pointing a little bit higher. Definitely take heed on german stocks. They expect a survey in an hours time. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Matt we are about a minute cash equity trading across europe and the u. K. Lets look at markets, with Annmarie Hordern standing by in london. Annmarie lets kick it off with the csi 300, off highs from the session but nearly up 0. 3 . The governor said the economy is in a decent shape, but not in a rush for stimulus. We are waiting for a u. K. Supreme Court Decision on Boris Johnsons prorogation. Well wait and see. Iron ore down 2 . Hard for iron ore these days to stay above 90 a ton, although the chinau. S. Steel scraps fell to the lowest in 20 years. Futures are trading ahead of the. 5 . Stoxx 50 up a bit of riskon in the market open. Just off 8 00 in the city of london, and lets look at where we are trading tuesday morning, after a risk off day yesterday. Ftse 100 opening in the green, up over. 1 . Ibex up 0. 2 . Stoxx 50 opening in the green, a riskon morning. Potentially with optimism around a trade deal. We had Steven Mnuchin saying the chinese vice premier will come to washington in the coming weeks. Amongst that, a backdrop of weak european pmi data, dismal yesterday in germany. We have the ifo, which will be monitored in terms of confidence in germany. Foreignexchange, a stronger british pound, stronger u. S. Dollar, but a weaker swiss franc and euro. Yesterday financials, were one of the biggest losers in the sector picture, but they are firmly in the green along health care and industrials. A little mixed picture across energy and miners, giving the weak iron ore price. Matt, what individual movers . Matt a lot more gainers than losers. 420 stocks gaining, only 150 lo sing. In terms of those adding the most points to the stoxx 600, bihg banks. Hsbc, for example. Nestle, a big consumer goods company. Then, total. You may have expected it, after the dividend story you did earlier today. But suchning only. 8 , a big stock, it has the ability to move markets singlehandedly. For the most part, banks on the upside. Santander, lloyds, ubs. Im flying to zurich tonight for an interview tomorrow. Stay tuned for that. Definitely check back for that. As far as the losers are concerned, you know lover andever at the top, anheuserbusch doing poorly, from some of the most the stoxx index, not. And relx down. 5 , plc, and a couple, astrazeneca on the downside this morning, Zurich Insurance on the downside. Losers, and the number of losers continues to rise. Little moreown, a than 400 stocks gaining. Lets talk about whats going on in germany. The economy is in pretty bad shape, and todays ifo survey in particular, the expectations gauge in the ifo survey will be closely monitored. Yesterday we saw the release of a terrible set of pmis, so a poor ifo reading could mean expectations for a downturn get another boost, if you could understand that. Expectations for a downturn get a boost. Any way you say it, people get more bearish. Thel continue to follow german story with daniel schaefer, our bureau chief in frankfurt. We saw yesterday pmi numbers worse than expectations, which were already very bad. I think it was 41. 4, the worst reading in a decade. What is going on with the manufacturing economy in germany . What so, yes, actually you are saying is right. Fall to a low we havent seen in 123 months. The german Manufacturing Index has been in recession for quite some time now, and the numbers we saw yesterday dont really bode well for the quarter in terms of the overall economy. En we are actually no very likely going to see a technical recession for most of the euro ate, a technical recession the end of the third quarter. Matt last week we got at the end of the week, close to the business day for germany, a 16 billion package for the climate, theit did not seem to have infrastructure aspects that a l ot of market part of the pins expected. Expected. Ticipants how has it been greeted . Daniel the climate package the German Government has come out with over the weekend is not the widelyexpected fiscal stimulus. This climate package, 60 billion over four years, and it will be incomeneutral, so they will take money from higher prices emissions, and spending it on measures like cash for buying electric cars. Helpwill not really the economy in the shortterm, so not what everybody outside of germany fixed their hopes for, a fiscal stimulus package to counter the threat of a recession in germany. Matt will we get that . Its now been a couple months and zoloft schultz since olaf schultz was in the studio. He continued to say, when i asked about a stimulus package, the labor market is great. There are not enough workers to hire. Is berlin going to wait until people start getting fired before they start spending money . Moment that, at the seems to be the case. We haveultz has said, the firepower and we can do something. He hinted at a number of 50 billion for potential fiscal stimulus the German Government could spend. Pend lso said, and has also said, in their view it is not the time to spend it, and they will hold the firepower of her things become worse. Now for when things become worse. Now, a lot of investors think that by the time germany has entered a recession and we face more unemployment levels, which at moment are historically low, but if we wait until we have higher unemployment rates, it might be far too late for fiscal stimulus. Startedhasten to add, i work 20 years ago in that bureau covering the umts auctions, and they raised 50 billion euros. Is a big know it round number, but i think they might be able to do better than what they raised from a 3g auction 20 years ago, especially when rates are negative. A a lot of people are urging them to consider borrowing and spending more. Daniel schaefer, our Germany Bureau chief coming to us out of frankfurt. Thank you so much for your time. The chief economist at bny mellon is with us as well. Let me ask you, on this topic, what do you make of the German Economy . How important is it for europe, and Global Growth . It is important for europe. Not so much for Global Growth, but for europe it certainly is. I sympathize with some of the things you have been outlining there just now. Germany is highly exposed to the Global Manufacturing slowdown, too muchrowth depends on Global Growth. It what it needs to do is stimulate more domestic demand, which they could do with fiscal stimulus. The one thing i would say, they are running a primary surplus of 1 of gdp, and they could move that without raising the debt to gdp ratio because the yield on its bonds is negative. Matt do you expect that to actually happen, shamik . The germans are still married to the black zero, as they call it. They dont want to go any further into debt. And have a big surplus, dont look like theyre willing to part with their money. Shamik i think you are right. Politically, it looks unlikely the germans are going to change course. All i can say, for the good of German Economy, and more widely for the euro area economy, more creative thinking, if you like, on fiscal policy might be helpful. Peripherale, the countries which were doing quite well a year or so ago compared to the rest of the world, they could use with a demand boost from the center of europe, so they can continue to export within the euro zone itself. Matt do you like any european stocks . We are looking at, and i know you are an economist, but were looking at a huge rally yeartodate. The cac up almost 20 . The dax up 17 . Is it possible that markets have gotten what they want already this year . Shamik thats possible. Ofhink theres an element the rising tide lifting all boats, and essentially what we d of q. E. ,is a roun led within the euro zone, stock markets within europe significantly. Can that go on . Personally, i suspect yes for a bit, simply because i am not sure we have reached the maximum level of q. E. , absent fiscal stimulus in germany. Much of the heavy listing lifting falls to the ecb going forward. , given that i wouldnt be goprised to see q. E. Levels up from this and possibly yields fall a little further. By markets are being driven discounted rates, rather than profits at the moment. Matt that is exactly where i wanted to bring you. I dont want to turn a chief economist into an advisor on equities, but i was thinking along the same lines. We will talk more about the ecb, and more about Central Banks. Shamik dhar, our guest cohost for the hour, chief economist at bny mellon. Move. Up, stocks on the a Chemical Company down after warning of a production cut. This is bloomberg. Welcome back to Bloomberg Markets. This is the european open, 15 minutes into the trading day and looking at gains across europe and the u. K. The cac up 0. 2 , and 40 in paris. The ftse up 9 yeartodate, the cac 40 up 19. 4 . The last few days, people talk about the discount european stocks have compared to the u. S. Stock market. You can cherry pick, but it is always easiest to use the yeartodate column. French stocks are doing just as well, depending on the time of day you look, sometimes better than the s p 500. We dax itself is up 17 , and look at the biggest pmi contraction in germany for over a decade, and still stocks are up 17 . I was talking to shamik about why that is, and we will talk to him more about whats going on at the ecb. Is that enabling this . Shamik dhar, chief economist at bny mellon, is still with us. We got the reentry into quantitative easing from mario draghi. Interesting, as so many of his, so many of his colleagues were saying its not needed yet, and now we get headlines that villeroy opposes it, obviously. Nonetheless, draghi went over their heads and did it. Do you think it will work the way he expects it to . Shamik there is a lot there. Tost of all, the first thing say is the ecb board has always been divided about the merits of q. E. , so it doesnt surprise me that you are getting some of the comments from other members of the board. That said, mario draghi has led the ecb very decisively, into q. E. This year effectively over the heads of those who are concerned about it. Will it work . I think it is pretty clear that successive rounds of q. E. , the marginal impact of successive that makes the Central Banks decision even harder. The marginal if impact is smaller, then you have to do more to have the same effect on the economy, and i think that is the calculation mario draghi is making at the moment. So bottom line, i think they had no alternative, in part simply because they are getting no support from the fiscal authorities, and are having to do much of the heavy lifting themselves. Matt they could print out euros as they see fit, so why dont they do . By the way, draghi responded to this as well. What is your take on that version . So many people have been talking about it, the last few days. Do you expect we see some kind or somecopter money, kind of monetary, fiscal cooperation . Shamik so, i think that the debate is moving in that direction, but i think the ecb will be extremely resistant to that sort of approach. Honest, thee fine. Ctions are pretty one buying bonds less than week old isnt massively different from helicopter money, but it is important to the european structure that fiscal and Monetary Policy are not intertwined in that way. So i think they will probably stay away from helicopter money as long as possible. Aat said, if we move into much deeper recession, it looks like we are going into a german recession, but if that intensifies into depression territory, everyone might start thinking more radically, and thats the kind of world i which we may see ideas like helicopter money in europe. I think we are a good year or so away from that, but it is not impossible over that timeframe. Matt all right. Fiscal, monetary cooperation. I feel we need to come up with a better kind of jargon handle for form of that helicopter money turns out to be. Chief economist at bny mellon, our guest cohost, stays with us. For top stock stories, we go to Annmarie Hordern. 6 , the, up nearly most in 10 years trying to get a bigger slice of the electric vehicle market. S, another day in the red. They were warning on production, which could mean 10 cuts to the earnings consensus. Evotec up over 3. 5 . For entered into a pact multiyear Drug Discovery programs, which looks like it will be beneficial. Matt i tell you what. Ive thought about this a lot, and ive tested electric cars. I will go e. V. As soon as there are more highspeed charging stations along the autobahn. Normally driving from here in berlin to frankfurt takes five hours. I did that in a fantastic electric vehicle recently, and it took me eight hours because i had to charge the battery three different times. Its very difficult at high speeds to go very far in an electric car these days, and i am sure thats going to improve, and i appreciate the drivetrain. Now, i am sure no one needed to know that, but that is my rant. Coming up, President Trump will address the u. N. General assembly as europe joins the United States in blaming iran for last weeks big attacks on saudi arabia. We will discuss further. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open, 24 minutes into the trading day. European partners are siding with the u. S. And blaming tehran for the strikes on saudi oil facilities. France, germany and the u. K. Have said no other explanation is possible. Thats a pretty big deal, especially france coming out and explicitly blaming iran for those attacks on saudi arabia. Shamik dhar, chief economist at bny mellon, is still with us. Were you surprised by this . How concerned are you by the geopolitical risks . Shamik i was not surprised. The u. S. ,resting that france, germany and u. K. Are kind of back on the same side. That is a interesting clinical development. Having said that, i think that is pretty clear u. S. Iran tensions will remain high, which means oil prices will be supported for some time as well. For thes that mean World Economy, very briefly . At the moment i think the 20odd oil, theice rise in direct impact of that shouldnt be massive. The longer Oil Prices Remain elevated, the longer geopolitical tensions remain unresolved, the impact on certainty and investment possibly accumulates, so something to keep a very close eye on. Matt is this price of oil fine for Global Growth, shamik . Is 65 for brent ok . Shamik in one sense, we are still below the levels it reached 18 months ago, whatever. But any kind of increase or shock at a time when the Global Economy is pretty vulnerable, when weve already seen a big manufacturing slowdown, any kind of shock puts the World Economy on guard, if you like. And if i can make one more point matt sorry, we have to go to break. I look forward to talking to you on the radio. You will join me there at 9 00. Shamik dhar. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. 30 minutes into the trading day. Here are your top headlines. Ab invev raises 5 billion for his asia unit in the second largest ipo of the year, but private equity for me qt partners searches more than 20 on its first trading day in stockholm, even after pricing your the top of the range. China allows further tariff free imports of u. S. Soybeans ahead of highlevel negotiations in washington next week, and says it doesnt need a ton more stimulus. Plus, a united front. Europe joins the united streets and blaming iran for the attack last week in saudi arabia. President trump is set to deliver his address to the u. N. General Assembly Today. Good morning, welcome to Bloomberg Markets. This is the european open. I am matt miller in berlin. 30 minutes into the trading day, here are some of the individual movers on my booth screen. 350 five stocks gaining only 232 down. It isnt as strong as it was at the top of the hour, but it still is in favor of winners over losers. Some of the big gainers this time in percentage terms, not in terms of stoxx 600 points, unit core was the biggest gainer, up 6 . Eagle tech up 4. 8 . Up, somelufthansa interesting gainers. We see loserse, here including Close Brothers royal down for percent, mail down 2. 8 . On thet have the size downside as they do on the upside, which is why we still see the gains. Lets get to the first word news in hong kong. Thanks, matt. President trump says he couldnt ask ukraines leader to investigate joe biden in exchange for military aid, but we learned trump delayed 400 million in aid to the nation. That was at least weeks before he spoke to the countrys president. That phone call is the subject of congressional investigation. The whistleblower who flagged concerns has remained unidentified. Aresche bank top investors directly approaching candidates ar about becoming chairman. Throughas patients go with paul lightner. They are also asking if they should try to force him out before his term ends in 2022. No comments from either Deutsche Bank or qatar. Facebook has agreed to buy control labs, a tech startup that lets people control a digital avatar using only their mind. It uses a bracelet to measure neuron activity, which determines the movement the person the thinking about, even if they arent moving. We have learned facebook is paying between 500 million and 1 billion for the company. Global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. All right, thanks very much. Your first word news out of hong kong. A survey by lloyds of london has revealed the extent of Sexual Harassment in the insurance industry. Members saidhanges they witnessed such behavior in the last year, but only 41 of those who raised the concern said they were listened to or taken seriously. The survey follows a Bloomberg Businessweek investigation that uncovered evidence of endemic Sexual Harassment at the worlds oldest insurance market, including inappropriate comments, unwanted touching, and sexual assault. Joining us from paris is our financial investigation reporter, alan katz. Alan, talk to us about the survey. What were some of the other results . Did all of those people who say they witnessed something actually say or do something about it . Well, thats not quite clear, matt. All we have are essentially the survey results lloyds has put out this morning. Peoples that 80 of witnessed Sexual Harassment in the past year. One thing that is particularly interesting about the survey is that it says women, for every question asked not just have you witnessed but would you feel comfortable reporting it women were more negative in every response, for every question, then men in this survey, which shows that there is a definite difference in the way men and women perceive things at lloyds. One of the things that makes it difficult is that this is a survey by lloyds. Surveyple answering the mostly worked for the Insurance Companies on the exchange, not directly for lloyds. It is a survey about the culture of all of these businesses that come together. So what is next . You have the results of the survey and then they are acting on . Well, hopefully. The ceo of lloyds says he hopes to have demonstrable numbers that he can turn to to show progress in the next 12 months. He said it will take probably three years to get the marketplace to where he wants it to be. So far, there hasnt been too much action. Since bloombergs the story came out in march, lloyds suspended the passage of two people to its exchange, the third is under review. No one has been permanently revoked. We will see in a year if anything has really come of it. All right. Thanks very much for joining us. Our financial investigator, alan katz, joining us on this lloyds story. Lets bring in from the u. K. Labor conference in brighton a little bit more from the opposition party, voted to back leader Jeremy Corbyns wait and see approach to brexit. Labor also debated a raft of radical policies on education, health care, and business. Joining us now from the Labour Party Conference in brighton is the labor shadow of business secretary. You think ofu what his waitandsee approach for business, i would think more certainty would be better. It was not a waitandsee approach. We have been saying for three years we want a credible deal, but there is a customs union, strong single market, and existing rights and protections. But unfortunately the government has orchestrated something of a pantomime over the last few years. We have categorically ruled out no deal. We dont think that is a good prospect for our economy at all and would devastate industries. But equally, we want the opportunity after a general election to negotiate a better deal to support industry in a more pragmatic way. To ae want to go back public vote so the people can decide whether that is what they voted for. The decision that was made yesterday was about setting that final deal in determining how we would campaign in such a peoples vote. Want to leave the european union, labor is not considering a remaining option . And a peoples vote, it would be an option between a deal, a credible deal, and remain, and the discussion we are having at the time, at this special oneday conference when we come back from the european union, will be a campaign for remain or campaign for the deal we negotiated. We will have to respect that. It could be 70 of what we ask for, 50 . That is why we have said wait and see. That is why we call it weight mc. If you are not sure what you want to do yet. Let me ask you, in terms of business, which would be the better option . Would it be better for u. K. Businesses to remain . Would it be better to get the deal you might want . Which would be the better option for business . Well, i dont think we can roll back the clock. It would have been better for business to remain, but unfortunately that wasnt the outcome of the referendum. Since then, we have been trying to get a package to get a deal that would protect our economy and industry and that is not what has happened. We are faced with the threat of a no deal brexit, which is why weve asked for an extension, so we dont get further uncertainty. Investment is stagnating and industries are looking at various options, which include reshoring to more secure markets. Opposed to at, as small extension and attempt to renegotiate a deal, i would go for the small extension, and i think businesses would do exactly the same thing rather than fall off the edge of a cliff. When we talked to business leaders, or when we talked to market participants, they are wantsconcerned that labor to nationalize a lot of privately owned companies. How do you answer that concern . Certainly, the elements put forward in my brief it is important to make the point that this is not primarily ideologically driven. We are facing a climate catastrophe and we know that if the government doesnt intervene, we wont be able to spur on the market and support the markets. We know that they have been repeatedly criticized for prioritizing dividend extraction overinvestment in critical infrastructure, and by taking them into public ownership, we can prioritize investment and to make sure there are connections that can happen rapidly, so the policies i am announcing today, an electric vehicle revolution, offshore wind on the scale weve never seen before, can happen rapidly and can bring thousands of jobs to areas that have been the industrialized for decades. All right, i think thats an appropriate note to ended on, as we are all watching the fight against Climate Change. Thank you so much for joining us, labor shadow business secretary in brighton. Up next, we will talk about the european allies blaming iran for the saudi oil attack. Are we going to see a new nuclear deal from trump and johnson, as boris has talked about, or will the u. S. Refused to negotiate with terrorists, as the old line goes . We will discuss. This is bloomberg. Welcome back to Bloomberg Markets, this is the european open. We are 15 minutes from one hour, 45 minutes into the trading day right now, looking at gains across the board, the cac huron up, as well as the ftse. Wening us from brussels, have just gotten some important Court Decisions, maria. Fiat chrysler has lost its case at the ecj, meaning what . They will have to pay the higher tax they didnt want to . Well, they are going to have to pay compensation, and are being told by this court that the European Commission was right. They benefit if from a special tax deal in luxembourg which violated state rules and allow them to pay artificially low taxes. What is interesting here, matt, is that investors were keeping a it could on this case, potentially signal the way the apple case would go. But we also have breaking news on a case against starbucks, where starbucks won the appeal on the same basis. Fiat chrysler and starbucks were both taken to court on the idea that they rejected the claims from the European Commission, and we have a split verdict from the same court, which has said that Fiat Chrysler did violate state rules but starbucks did not. I guess the point here is that it looks very unclear at this point what is going to happen with regards to apple, the big tex case everyone is keeping an eye on. Brussels has a much bigger political fight between the commission and american tech. All right, thanks very much. Us. Ring those decisions for irans key European Partners are siding with the u. S. And blaming saudi arabia. France, germany, and the u. K. Have said no other explanation is possible, however for the 2015 nuclear record. Prime minister Boris Johnson said that donald trump could negotiate a better deal then going back to the table with the same old partners. Joining us now is the Standard Life senior political economist. What do you make of this . I have to say, initially i was surprised, especially that france but also that germany was willing to get together with the iranand explicitly blame for the bombing attacks on saudi arabia. Yeah, i think they are two separate moving parts. The first is the decision to coordinate and give this statement regarding. The role that iran played that is it itself significant. However i think the deeper story its a that iran signal that europe will work constructively with the u. S. To potentially construct an alternative accord and replace the previous iran deal, or we are looking at an isolated incident. I think it is a positive signal for a better europeanu. S. Relations, but no one will get too excited because the u. S. Has had more trouble recently with European Partners in terms of donald trump being able to burn bridges across europe. It is no surprise that Boris Johnson is siding more with trump in terms of a new deal. That reflects the u. S. U. K. Access they are trying to build. But what we are really looking to his what are france and germany going to do next. Mean, if you i look at donalds negotiation track record so far, it doesnt look like he is going to be able to get anything done, certainly not very quickly, and he has an election to contend with soon, not to mention the fact that the u. S. Previously didnt negotiate with terrorists. They are saying that the iranians did this attack, they surely must classify that as terrorism. What is the likelihood that the u. S. Will enter back into negotiations with iran . Well, there is an important question, right . Is the u. S. Really ready, willing, and able to take on something as complex as negotiations with iran, given Everything Else thats on the agenda for the u. S. Administration. Whenow from the jcpoa, they built that iran deal, it took time, its a complex thing to do. If they decide to do it, the dangers we underestimate how complex that might be, even if that is in the cards. As we know with trump, anyone you speak to in d. C. Right, it looks like we just lost Stephanie Kelly. We are going to try to get her back on the line. I will tell you we are getting breaking news right now from the European Court of justice. We heard maria talking about the split decision that went against Fiat Chrysler, but for starbucks. Itsooks like google has won fight over the global right to be forgotten case. Ingle wins its court fight the European Court of justice, and we will try to get back to maria on the ground to cover that in a more indepth way. Obviously it is a much bigger stock and a big deal. We have Stephanie Kelly back. Stephanie, sorry, we lost the line for a moment. Looks like the sunlight is still down. Lets go to break right now and we will try to get back, either stephanie or maria to talk about the situation in iran or the situation with google. This is the european open. This is bloomberg. Welcome back to Bloomberg Markets. This is the european open. I am matt miller in berlin. 53 minutes into the trading day and we are still seeing green arrows across the board in terms of European Equity indexes. Not strong gains, but we do see 20 points on the ftse, 11 points up on the cac huron and dax. Rining us is Richard Jones, mliv fx and rates strategist in berlin. We have a whopper of a pmi number out of germany. Today we are looking at this survey what do you expect . We have just had a confidence data out and it was a little more buoyant than expected. Data wontmean the be as bad as it was yesterday . The survey consensus is for a slight rise in the meaningful Business Climate from the previous reading are to believe it will come in that way after how bad the pmis were, but we dont have long to wait. Very little could be as bad as the pmis yesterday. They were the worst we have seen in over a decade. Grumblingeard any near the Politics Team i know here in our offices have we heard any noise at of berlin that there is a possibility they are considering a stimulus package . They dont ask to see the numbers yesterday i dont think they ever will. Become more ofto a dialogue in berlin, so i think something is coming but im not sure if it will be enough or too little, too late. But you do feel that conversation is shifting and something is coming. But there is no enthusiasm for it and that is whats the problem they will be kicking and screaming. I know the euro is down below 1. 10 for the last couple sessions. Is this week data dragging on the currency . I think it is weighing on the euro. I think it will also drive bund yields back to the record low we saw earlier this month. But i also think this wont be isolated to just europe. I think the u. S. Numbers will start to deteriorate as well, and so therefore you will get perhaps u. S. Stocks coming off these alltime highs and dollar yields, treasury yields coming back down Richard Jones from the mliv blog, thanks very much for that. Lets go now to maria tadeo from brussels on the google decision. What can you tell us . We just heard from the European Court of justice, the highest court in europe, side with google. There is no such thing as a global right to be forgotten. You have to go back to a decision by a french regulator, which argued individuals have the right to have information removed from the web. We had the European Court of justice come out and say they agree with google. This comes minutes after Fiat Chrysler and starbucks both received a mixed verdict, they would have to pay back compensation over illegal state aid, but starbucks was told they did not benefit in any special way and the court sided with the company. When it mixed morning, comes to the future. Apples court case is difficult to say, and if you are an american company, it is difficult to make a case that there is a general fight against you because today we had a very mixed decision. All right, thank you very much. Maria tadeo, wrapping up what we heard from the ecj in brussels. Surveillance is up next. This is bloomberg. China allows tariff free imports for soybeans. Could this ease negotiations in washington . Britains most senior justices rule on Boris Johnsons suspension of parliament, we are live at the supreme court. And with factory activity, europes economy shrinking at the fastest pace in 10 years. We get the first interview of the day