Green, but seeing significant weakness in Consumer Discretionary today. Mcdonalds reporting relatively weak earnings compared to what the street was expecting. That is weighing on the indexes a little bit. We also got bad numbers out of ups. That is also weighing on the s p 500. Treasuries come of the dollar, gold all seeing bids come back into those. On that treasury yield, right now the bondholder undeterred after we had that selloff. They are back in the market today, looking around to buy. Hat dip seeing a little bit of strength in the dollar tethered to what is going on overseas with the pound, also with the yen. A lot of notes out on the future of gold, what is. Going to drive it higher weve been hovering in the what is. Going to drive it higher weve been huff what is going to drive it higher. Weve been hovering around 1500 mark. Guy in europe, we are watching the pound. Boris johnson says he will pull the Brexit Agreement if the timetable is not agreed by mps. Keep an eye on that. Stocks absolutely flat in europe. Just eat come of the delivery service, another bid coming through for the business just eat, the delivery service, another bid coming through for the business. We will talk about that a little later in the program. K Prime Minister Boris Johnson will find out in a few hours if he has any chance of getting that brexit deal through parliament. For the latest, we are joined by bloombergs emma chandra at westminster. Where do we stand at this moment right now . Emma right now, we have the mps in the house of commons behind me. They are debating what is known as the second reading of the withdrawal bill. The case forng that bill, saying it will unleash a tide of investment for the u. K. Because it will get brexit completed. They will debate it until about 7 00 tonight, and then there will be a vote on the bill. If the Prime Minister wins this vote, that will be a big victory. It indicates that mps agree with the general principle of the withdrawal bill and his brexit deal, but what could be more important is the goat that will follow immediately after. That is the vote on what is known as a program motion. This is asking mps to agree with this Prime Minister and the governments accelerated timeline for the Withdrawal Agreement bill. The idea is they want to push it through all the stages in the house of commons before the end of the week, setting it up for a quick approval from the house of lords and still allowing the uniono leave the european by october 31. What we have heard today is that the numbers are very tight when it comes to the vote on that program motion. It is by no means certain that the government will win it. The report we are hearing out from the Prime Minister is that if he does not win that vote and the eu offers an extension until january, he may pull the bill altogether and try to call for a general election. Guy do we have any idea about amendments . Any chance that labour will try to attach amendments today . Which one will they go for . Emma certainly there are a number of amendments that have been debated, have been proposed. We understand someone is proposing in a minute that would require the u. K. To stay in close alignment with customs and Single Market rules with the eu, saying that the eu will never agree to a freetrade deal with u. K. Postbrexit if it becomes like singapore. There are various other amendments that are certain to come through to gay and tomorrow come through today and tomorrow. If this bill becomes over bended, it might also reconsidered whether it will go to a vote. But we are also hearing from the labour party is that they will not vote for the second meeting of the Withdrawal Agreement bill, and they will not vote for that program motion. But we are hearing there are some rebels within labours ranks. Guy emma chandra, thank you very much indeed. For more on the brexit story and the implications for broader markets, we are joined by terri spath, sierra mutual funds chief Investment Officer, joining us in los angeles. Tell us about what the u. K. Looks like right now. If Boris Johnson can get a brexit deal through, do u. K. Assets look cheap . Do lookhey probably cheap. There has been so much concern over there. That said, theyve gotten so beat up and they are is still going to be a long runway on andstment that that we there is still going to be a long runway on adjustment that we are not putting much investment there. Guy we are trying to figure out what gets us through 3000 on the convincing basis. Judging by what you said thus far, dont think a brag that deal would be enough to do that. Terri no, i dont think a brexit deal will be enough to do that. We are watching the earnings that are coming out to see what the numbers are on business confidence, on consumer confidence. That all said, multiples are quite high. Any sort of multiple on the u. S. Stock market, although that is not a great timing tool, it certainly can give you some sense as to what your expected returns are going to be Going Forward. We think in these markets, you have to pick your positions very wisely and not just put money into the market broadly. I dont think that is the way to go. Romaine when we look at those multiples, they are a little bit rich overall on the market, as well as on a sector by sector basis. There was a Big Conversation a few weeks ago about growth over value, when we saw value assert itself and away way we hadnt seen in a while. Is that conversation still valid to have . Terri i dont necessarily think so. The companies that can accelerate growth in an economy and a Global Economy that is absolutely slowing down, that is where i think there are more interesting opportunities. Again, you have to be really tactical about it. You have to have a buy discipline, as well as a sell discipline, to make sure you get out of the way. Romaine what sectors of the market have your eye at this moment . Really plugging our portfolio for our clients. We think there is risk out there and not a lot of report to be drawn. Your expected returns are probably a little better and stocks than for bonds right now. Where we are looking to make money is where we can make some good return without is much risk. Our first buys have been in highyield Corporate Bonds and preferred stocks as asset classes. We think we can make better yields, better returns with less risk. Thats where we are focusing. Guy what signals are you taking from the credit market right now . There does seem to be outperformance of lower risk credit at the moment. You are seeing that in bb down to the cs. Basically, people are moving up the credit hierarchy. Are you doing that as well . What signal are you taking from everybody else doing the same thing . Terri we are doing that, but we are mindful that there is reach for yield right now. 1. 7 , it10 year at looks very frothy or interesting, perhaps, in the highyield Corporate Bond market. That said, i still think the credit quality is pretty good. We are not seeing spread widening, so we are comfortable in that area of the market. But again, being very mindful of the fact that this can go down very quickly. But right now, we are comfortable in highyield Corporate Bonds, definitely. Guy ok. Lets talk a little bit about earnings. What signal are you taking away thus far . We already have two courses on earnings recession. What is the earning outlook going into 2020 . Terri i think it is going to be a challenging earnings outlook. The headwinds are certainly there that we didnt have last year. We have slowing earnings just because Overall Economic growth is slowing. Just to harken back to that bond conversation, i think what the fed is telling us is our growth in the u. S. Is quite a bit slower than it was this time last year, too. Thats why they are taking back interestrate hikes they made last year. A quarterpoint here, a quarterpoint there wont necessarily help the. Earnings picture so we are facing headwinds help the earnings picture. So we are facing headwinds with the growth picture, but we are the cleanest dirty shirt, to use a phrase, so we are still comfortable in the u. S. More than internationally on the stock market. Romaine growth is slowing, but we are still seeing relatively healthy growth. Just maybe not as gangbusters as some people have gotten used to during this old market cycle. We sought this bull market cycle. We saw a negative reaction to mcdonalds today despite a 5 jump in samestore sales. Is actuallymble guiding investors higher Going Forward on this idea that they can control their costs and that they do have a little bit of pricing power. When you see these narratives play out from these companies, do you think that they can a downturn in the economy and still maintain some of those growth flows . Terri there are interesting numbers that have come out. Procter is certainly a more defensive stock, so people flock to that kind of a name in a slowdown. That is not as shocking, although the numbers were off the charts for sure. Mcdonalds typically thousand to that category, too, so we are getting some conflicting information. What we are really looking for is the health of the consumer. Its been very strong. Its been keeping us from saying there is a recession on the horizon. We want to see if there is any blink and that, with all the headlines that have been going on, any confusion, any pain to the consumer. Absolutely something that is helping earnings, and will help them Going Forward, but that can be a very fickle group, so we will keep an eye on how the consumer is doing in the u. S. , but so far, so good. Guy the dollar has been coming under a little bit of pressure recently. Presumably that is something that will help the earnings story out, particularly for those Big Companies that have nonus revenue streams. Terri i think he said the dollar is coming under pressure. It is coming under a bit of pressure, and it will help companies with more international exposure. The other area that is sort of interesting and is a little more stealth to play for a falling dollar is local currency emergingmarket debt. That is an area where weve been seeing some quiet rises in the prices of those bonds. Absolutely, global companith moe will benefit from that, and they will benefit pretty quickly, as well as other t can give a nice yield, but with a little bit less risk. So we want to put that on the radar for viewers also. Romaine all right, earnings season in full swing here. Our thanks to terri spath, sierra and desmon funds chief Investment Officer sierra Investment Funds chief indusind officer chief Investment Officer. Viviana adam neumann is expected to sell wework stock to softbank. In canada, voters gave Prime Minister Justin Trudeau a second term. Trudeau overcoming a number of scandals and claims what he calls a clear mandate. Still, his liberal party lost its majority in parliament. Ae most likely partner for coalition government, the liberal democrat party. A wave of arson and protests in chile. Thousands are protesting economic inequality, pensions, health and education. To president s attempt crackdown on violence is making the situation worse. For the first time in 30 years, japan has a new emperor. Today, the monthlong correlation of the new emperor was completed in tokyo. He is the first japanese emperor to be educated in the west. He spent two years at the university of oxford. The emperor has no say in government policy. 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. Im viviana hurtado. This is bloomberg. Guy thank you very much indeed. Right now in parliament, we have the debate on the second reading of the Withdrawal Agreement bill. That johnson threatening if the timeline bill doesnt pass that would allow him to get brexit done by october 31, he may withdraw the bill. This is bloomberg. Corbyn they now want to delay it more than that they now want to delay at more than that as they make certain that it cant possibly go through. That brings me very briefly to the whole issue, mr. Speaker, of two points that are made. One is the second referendum, which others want to amend this, and they want more time to do that. Romaine live from new york, im Romaine Bostick. Guy from london, im guy johnson. This is Bloomberg Markets. Lets get an update on those markets without ago doolittle. Abigail just with abigail doolittle. Abigail just looking at small movements for the markets. The dow has been flipping between small gains and losses. Investors watching a number of earnings reports coming in. In london, we see a bit of divergence between the bigger cap ftse 100 and the broader ftse 250. All of this on the recent brexit headlinescap ftse, prime minists johnson threatening to perhaps pull that brexit deal and force an election. On this, we have the pound down 0. 3 . In the month of october, lets 5 . A look at the pound, up right now on pace for its best monthly performance since may 2009, so more than a decade. This suggesting that investors and traders are hopeful around some sort of brexit deal coming through before the october 31 deadline. In the u. S. , lets take a look at some of the earnings movers. Up 34 its highs, excuse me, up more than 40 , adding a german this amount to from 41 billion, adding as tremendous amount to its market cap from 41 billion, this on hopes of its alzheimers drug. Mcdonalds making the point that they put up a decent quarter, where comps grew. A small earnings miss. They raised the dividend, but apparently not enough. Shares at this point down 3 . Romaine our thanks to abigail doolittle. Lets turn to canada. Canadian Prime Minister Justin Trudeau has won a second term in what he calls a clear mandate. Josh joins us in ottawa. I looked at trudeaus speech, and he basically said this is an adornment of a Progressive Agenda this is an endorsement of a Progressive Agenda. When you look at the seats he won, is that really a reflection of a mandate that he says he has . Reporter hes tipping his hand as to how hes most lightly to govern, which is with the support of the leftleaning new democrat party. 170 ofarties combined the 180 majority threshold, and trudeau fell short of that by about 13 or so. They will have a little over half of the seats, and they agree on a lot of stuff, with notable exceptions. They are sorted a natural governing ally, but these results were really evident of a fractured country. Trudeaus support is pretty much only in cities, with some exceptions. You can go a couple thousand miles without hitting a liberal lawmaker out west. So this is going to be a challenge for him, and will see regional tensions in canada Going Forward, but hes on pretty stable footing, even without a majority. Guy what does this mean for the Energy Sector . The conservatives basically backed the Energy Sector. Trudeaus backing the carbon tax and environmental policies. Where does it leave the energy business, which is so big and important in canada . Trudeau is pledging still to move ahead with the trans mountain pipeline project that he bought to try to save its expansion. That could be tricky because the ndp dont want that built, and they would be voting with him. But they may be able to find other partners, where they needing to put past some sort of law that expansion. I think more broadly, investors will sink trudeau and his base will not want unabashed expansion of oil in western canada, so peace trying to have his cake and eat it so hes trying to have his cake and eat it, too. Him this is at a minimum a warning sign to the Energy Sector, though how it will play out is unclear. His ministers saying today that they still want to build that pipeline. Guy we will watch with interest. Josh wingrove going us on the outcome of the canadian elections. Lets take into capitol hill. Treasury secretary mnuchin is giving testimony right now to the House Financial Services committee. Hud director carson will be joining as well. If you want to watch this on your bloomberg terminal, you can do so. Live is where you will find it. This is bloomberg. Guy from london, im guy johnson. Romaine from new york, im Romaine Bostick. This is Bloomberg Markets. Time for your Bloomberg Business flash. Under armour founder kevin plank is stepping aside as ceo, promoting the executive he brought into years ago during restructuring. He is now the companys president and coo. Planck started the company in his grandmothers basement in 1995. Mcdonalds losing momentum in the u. S. Sales rising less than expected in the quarter, having a hard time luring new customers, especially during the morning hours. The chain gets more than 1 3 of its revenue from the u. S. Market. Shares of biogen surging this morning. It will ask u. S. Regulators to approve its extremity therapy for alzheimers disease. A new analysis of data from two Clinical Trials showed promising results. That is your business flash update. Coming up, more on that biogen story and the revival of that experiment alzheimers treatment. Those details ahead. Guy lets take a look at what is happening in the broader markets. The s p fairly flat, the stoxx 600 fairly flat. We are seeing a move in the u. S. 10 year right now, prices rising in such. The pound flatish. Not yet at 1. 30. We will see what happens through the rest of the day. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Romaine live from new york, im Romaine Bostick. Guy from london, im guy johnson. Is is Bloomberg Markets lets check on the bloomberg first word news with viviana hurtado. Viviana a warning for british Prime Minister Boris Johnson. If parliament votes for another delay, he will scrap the deal and call for an election. Johnson will find out if he has any chance of getting is the all approved. He will also learn if it will happen before the october 31 deadline. President donald trump invoking a violent aspect of racism in the u. S. He called the investigation led by democrats a lynching. Lynchings were extrajudicial blacks and other after the civil war by mobs. U. S. Forces pulling out of Northern Syria would go to a rock to help in the fight against islamic state. President trump ordered the bulk of u. S. Troops in syria to withdraw after turkey began its military offensive there. Hundreds of thousands of californians against facing the prospect of another deliberate blackout. Bankrupt utility pg e considering a shut off to more than 200,000 homes and businesses this week in the northern part of the state. The company is trying to keep its powerlines from starting wildfires. 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. Im viviana hurtado. This is bloomberg. Romaine thanks, viviana. Softbank set to take control of the troubled startup wework. Theres a rescue plan that will also see founder adam neumann leave the Company Board after selling about 1 billion of stock to the Japanese Investment per and. Lets bring in Japanese Investment firm. Lets bring in liliana baker. Lets start with the package for neumann. What is he getting out of this deal . Reporter softbank is essentially paying newman to step aside. They will pay him a consulting fee for the work hes already put into the company. This is a good outcome for neumann. He holds onto billionaire status, but it is also a good outcome for softbank, which will be in control of the coming without his influence. Being treatedn differently to others . There are others that have a stake in this business. He appears to be getting a much better deal. How is that going to play out longterm . Is there a legal risk here . What does this say about how softbank is approaching this . This all toank once go away, all this noise around the companys future. By am plummeting their own strategy and leadership, they are trying to open a new chapter for wework. We reported that the former sprint coo who is very senior at softbank is likely to take a big role as chairman at wework, so he will have a role overseeing the company, and there may be s. Ks to search for new co right now they are run by two coceos who had been at the company during neumanns era. Romaine does this address some of the financial issues, the idea that they were taking on these properties and the money they were getting in return really wasnt covering that expense . Liana its very unclear how softbank will recoup a profit here and what the future holds, but what we know is that softbank will now have an iron grip on the company. They will likely control the board, control any major moves the company does, so it is in their hands now, which is what they wanted from the beginning because they already had so much exposure. They invested 10 billion, and a part of this new deal, they could be investing up to eight lien dollars in debt up to 8 billion in debt and buying out shareholders. Guy how are the saudis and some of the other investors into the vision fund reacting to this . Is this in any way an acceptable ir point ofhe view . Liana a lot of talks have been happening behind the scenes. We dont know how they view this deal, but softbank certainly wanted to decrease the drama around this. We will have to see if this is enough to placate investors in the second. Vision fund in the second vision fund. It is definitely not a good look to have such a highprofile flop in their polio. Romaine our thanks to liana baker, covering one of the most interesting shares of the year. Shares of biogen surging today on renewed hopes for an alzheimers treatment that a lot of people thought was dead. The drugmaker going to ask u. S. Regulators to approve the experiment of therapy after a new analysis of Clinical Trials. In march, the company said a major trial of the drug was a failure. Lets bring in same for sally lets bring in sam, director of for bloomberg intelligence. The drug didnt meet some sort of requirements and was pulled. Explain that. Reporter what happened in march, basically the trial had a futility analysis. Most trials have these things, but you dont necessarily know when they are. When the company did the analysis on the 1700 odd patients that had reached the required status in the trial, they said it doesnt seem that it is going to work. So what happened today, they say now we had more patients, about 300 more, and they say now we think the trial worked. There were two trials, and there were some key nuances in there. Guy sam, what does this say about where this drug could go . This could be the first that could get approval. If it could do so, how much worth . T be does this open the door up to other drugs pursuing similar lines of inquiry . Sam very good questions there, guy. At the end of the day, there are so many nuances in these trials. How early you are treating patients, what stage of develop at they are at, how good the drug is at getting into the brain and interacting with this beta, lloyd with this beta, this beta amyloid. As much as i would like to see succeed given the massive potential that these products had come of it also the need in terms of alzheimers, there are lots of nuances succee massive within biogen. They have said we should reserve judgment until the fda gets the chance to really dig into that data, so i am still a bit skeptical. Romaine when we talk about the future of biogen, one of the reasons i the stock has been so volatile surrounding this particular drug is because their areent stable of drugs moving into the late cycle of their patent protection. If this doesnt work out with regards to the awesome is drug, what is their future look like . Sam the pipeline is full of drugs trying to treat very difficult to treat diseases. Sclerosis. Multiple if that works, youve got a potential multibilliondollar drug. They are suffering from strong competition from the likes of roche and novartis. This is what they do. Difficultbets on very to treat areas and hope it hits. Without this, they are back to square one, and it would be waiting to see if one of the other pipeline drugs shows success. Guy how often does this happen . That you get a failure and then come back with more late stage data, and the fda going, you know what, lets give this one ago . Sam you can go to the fda and have discussions with them, and they say we will not discourage you from filing. At the end of the day come of this data will have to be scrutinized by an Advisory Committee of 12, 14, 16 physicians who will pour over 16 scientists and physicians who will pore over the data. It does happen, not very often, and it is rare that it comes back this strongly and the company suggests they will apply to the fda, but it does happen. To answer your previous question, the size of this market is anyones guess. Perassume a 200,000 sale year, and you imagine how many years and all summers patient has to be treated, it could be multibillion dollars how many years an has to be treated, it could sal. Is it possible that scientists will be going back and seeing what is going on . Perhaps they could do some data work also. Bio arctic in europe is a direct beneficiary. Another in japan is a partner with biogen. Theres lots of Companies Looking at the disease, at this area. It also gives hope for the whole sector, but as we said, we remain cautiously optimistic, or still renderin w. Or still wondering. We want to see more of this data. Ofaine that is Sam Fazeli Bloomberg intelligence. Guy after years of drama, we will have a new ceo to talk about the future of the Sports Apparel maker under armour. Thats coming up. This is bloomberg. Live from new york, im Romaine Bostick. Guy from london, im guy johnson. This is Bloomberg Markets. Romaine time for our stock of the hour, mcdonalds, one of the biggest underperformers in the s p 500, dropping more than 3 after it released thirdquarter results. Kailey leinz is here with more. Its been one of the out performers over the last year, so what happened . Kailey the stock has done markedly well has done remarkably well. It had a blowout secondquarter, and we have kind of seen things pulled down, especially with comp sales. Scale, actually beat. But when you look regionally, the u. S. Market, a very key market that makes up more than missed by aevenue, pretty decent margin. It is mostly due to traffic. The comp gains they did see were because of things like higher prices, not necessarily more people coming into the restaurant and buying. Competition is a big part of this, especially at breakfast, which noah some thing mcdonalds has been focusing a lot on. Theres a lot of competition from burger king, Dunkin Donuts , which also has faux meat offerings with beyond meat, which is another issue. Even with all of the investments they have made in technology and automation, it has paid off. Comp sales are way higher than they were, but we are seeing momentum a be losing a little bit here. Weighted,ow is price which makes it a little peculiar , steve got mcdonalds at one end of the spectrum, p g at the other so youve got mcdonalds at one end of the spectrum, p g at the other. Kailey png is doing quite well. Is anothernologies beat and raise. Aerospace really helping them out. On the downside, you have the likes of travelers, which saw core income fall 45 in the quarter. They are blaming litigation costs for that. That stock is down about 7 , dragging the broader average. Because you have all of these downside movers, it is basically flat today. Romaine our thanks to kailey leinz. Guy lets talk about that changing in the guard we are seeing at under armour. Kevin plank is stepping down as ceo of the Sports Apparel giant. He started it back in 1995. Patrik frisk, under armour president and coo will step up as the new ceo on to nori first. Bloomberg new ceo on january 1. Bloombergs Caroline Hyde sat down with them to talk about the transition. This is completely my decision, in concert with a terrific board. It is something we have been working on since patrik joined to into have years ago joined two and a half years ago. Inve been talking about this transformation the last few years. Really, it is the perfect opportunity for the business to do that. What i think this gives us is the ability of freedom. Freedom. As we are growing, it is difficult. As patrik kept ascending in the organization, it was whose hands is on the wheel. I want to make sure that is always clear. It is impossible to be effective if that is not the case. As i move into the role of executive chairman and branch chief, i can still do the things i think need happening in the organization, allow patrik to run the daytoday, and still have a vision for the business. Release you say in the that it is time for realization of its full potential. What is the real full potential of under armour . We believe we were quite good day. Year in our investor one of the things about our transition is the plan. It has been a planned transition. We worked on it for quite some time. Weve also worked on the plan for quite some time, not just the two of us, but the entire Leadership Team and the entire company. We are very confident that the way we are thinking about the business right now, the way we are thinking about where we compete, and athletic performance, who we are for, and our brand positioning is going to allow us to continue to be successful. Like kevin said, as we turned the corner into 2020, what you will see is a larger brand. We are turning from defense to offense, which was planned all along. He believes the transition really sets us up to be able to have continuity and leadership, consistency in execution, and ultimately enables us to win over the longterm. Ultimately, kevin asked me to help him with the vision of becoming an internal brand, and that is what we believe we are on the path to doing. Caroline you talk about performance rather than perhaps as leisure, but you are both sitting in under armour tops at the moment. Are you going to look more at the as leisure area, or urethis at the athleis area, every day wandering around . You know, we love that question because we dont look at the do things as separate. , we know from all of the consumer upsides, you have to look good. Kevin talks about beautiful performance, or there is no performance without beauty. Thats how we think about it. The way that people ultimately choose to wear our gear, whether it is footwear, apparel, is really up to the consumer. It is our job to make sure that is not just incredibly functional because our vision of making things that people need needs to go through every product that we make. Every product you buy from under armour has to do something. We believe people are going to make choices of how to wear it, whenever and wherever. Guy Caroline Hyde speaking to the outgoing ceo of under armour, kevin plank, and the president and incoming ceo patrik frisk. Lets talk about what is happening down in parliament. Boris johnson minting it pretty clear earlier on that if there amendments where is the timeline motion is voted down, he will pull the Withdrawal Agreement bill. This is what he said earlier. Pm johnson i will in no way allow months more of this. If parliament refuses to allow brexit to happen and instead gets its way and decides to delay everything until january or possibly longer, in no circumstances can the government continue with this, and with great regret, i will go directly to the point that the honorable jen when raised, that the bill the honorable gentlemen raised, but the bill will be pulled, and we will have to go forward to a general election. Guy from london, im guy johnson. Romaine from new york, im Romaine Bostick. This is Bloomberg Markets. Time now for futures in focus. Of Kkm Financial joins us from the cme. Earnings season fully underway here. This is usually a time when they can make a lot of money, but when you consider the backdrop we are heading into with this earnings season, is this really the environment where you want to be writing options . Dan theres always an opportunity. It is certainly a couple mentor a strategy to per polio management, so theres a few things youve got to look at when you do decide if you want e options in this type of environment. Liquidity and interest are a couple of things i look at. Romaine when you look at the risk parameters and want to make sure you are guarded against what you are expecting, how do you do that . What is the set up . Dan oneway would be a risk reversal in the situation. Basically, if we see a stock that is rallying and then reverses course, theres a potential to sell the high side out of the money call, so that parameters. Risk it does limit your upside, so there are a lot of things that need to be considered, but if implied volatility and preset dynamics within the structure are very important when you look at options prior to an earnings announcement. Romaine the dollar is going to factor into earnings and a lot of things. We saw some dollar weakness over the past couple of weeks, but not enough to knock it down by significant enough. How do you factor that into your trade . Dan certainly when you look at the dollar, we have broke down from that uptrend throughout the. Ummer we are seeing a little bit of a rebalancing as some of the risks in the market are coming out, and that is why youre seeing the dollar come under some selling pressure. Romaine do you think what we are seeing in regards to oil and the commodity space is also going to put some pressure there . Dan possibly, as we continue to see the evolution. If the Global Growth story gets back on track, the disparity between the u. S. And the rest of the globe comes back into line a little bit, and that is why i think you are seeing the dollar under pressure. You could see crude and others benefit from that of environment. Romaine great to have you, dan deming of Kkm Financial, from the cme. Guy time for a Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Saudi aramco pushing to complete that delayed ipo this year. Bloomberg has learned that the oil giant may make a formal announcement as soon as next week, or at least the next couple of weeks. It was originally scheduled for october 20, and delayed when aramco got mixed feedback from international investors. Giantitish consumer goods has lowered its sales forecast. The reason, weak demand for flu medicine in the United States and baby formula in china. Nine years ago, the royal bank of canada said its goal of becoming a top 10 Investment Bank in the United States. Now, Rbc Capital Markets has risen to number 10 in the rankings for advising on u. S. Mergers and acquisitions. This year, rbc market share is just under 10 . And that is your Bloomberg Business flash. Romaine lets get a quick check of what is happening in the markets right now. S p 500 holding premuch around re it started today holding pretty much around where it started today. A lot of the market being waged down being weighed down. Down. Wn, netflix the nasdaq getting a little bit of a bid, up about 0. 1 . U. S. P next, the seek the cqs ceo joins us as we count down to the end of the trade. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Guy Boris Johnson brexit plan crucial votes in parliament. We are live in westminster, and we will be joined in the studio by exhibitor rolet by big theyve your rolet by xavier rolet. And we hear from sergio ermotti. Live from london, im guy johnson, with Romaine Bostick in new york. We are counting you down to the close here on Bloomberg Markets. Romaine lets get a quick check of what is happening here in the u. S. Markets. Halfe about an hour and a into the trading day in the u. S. Holdingmind, whats this up is premier league the defensives and the utility sector, some consumer staples
comparemela.com © 2020. All Rights Reserved.