Point with them the investigators and asked him about this we have absolutely zero evidence that he was informed about it. Loud protests get underway in hong kong amid tight security as china celebrates the 70th anniversary of the founding of the republic of china. Boris johnson says they are prepared to present a plan for the eu a rise in operating profits to more than 5 billion euro by 2022 saying exclusively that the firm can handle the deadlines we have contribution of airfreight slowing down. We are not independent from the markets but we have enough selfhelp to continue to improve our models good morning and welcome to street signs. We have a busy show ahead. I want to bring you some eurozone data. These are the final manufacturing numbers for the month of september the pmi has come in 45. 7 this is. 1 higher than the flash estimate this is the lowest level since october 2012 looking at final new orders, that has come in at 43. 4 it is loss the lowest since october 2012 perhaps people could take a little comfort that these final numbers are better than the original fwhaul starting with very weak base and numbers particularly led by germany there as we got 10 minutes ago, the final manufacturing number came in at 41. 7. So very, very low. Lets talk about the price action in the European Market. Some of the gains are being carried back the cac is back. Big day as steve highlighted we are going to get a speech out of Boris Johnson and a formal proposal on the brexit plans to the eu so keep an eye on that big days coming up for the uk. The ftse mib, that is the outperformer today by. 7 2. 2 is the number we have to see whether or not that works well with brussels. As for sectors, today we are seeing a bounce in tech. So we have autos and tech up at the top. Some of the chip makers are having a better session today after the session in wall street after the white house has dismissed some reports that the Trump Administration was thinking of dismissing some of the supply from the list luxury continues to struggle in europe a lot of those companies have exposure to hong kong. The demonstrations are continuing the market in china is closed. It is a National Holiday our top story today, Credit Suisse chairman says there is zero evidence that they knew about the surveillance and he continues to have the full trust of the board the Swiss Banking giant has accepted the resignation after an internal probe shows that he operated alone up about. 3 of a percentage point. Lets put it in perspective. Over last year, Credit Suisse is down 17 the Swiss Banking index has come under a lot of pressure. This story has not helped. Lets get out to you in zurich i guess the big question has been settled some what he was not directly involved and had no awareness of the investigation taking place reporter there are a number of questions that remain unanswered here dismight the boards effort to try to clarify the role of the ceo and the bank more broadly dealing with what we know in a simple investigation according to what was conducted, they argue that coo operated independently. Didnt inform the board or the ceo that he intended to launch a covert spying operation that he was leaving the bank to go to ubs. Those were the bare bones. The board of directors said they have full faith and hope quickly to move on from this there are a number of questions that remain unanswered at this stage. The investigators who looked into this issue werent asked to look into the relationship and there is a merkier back drop over the garden party over the planting of these trees as the two gentlemen were neighbors that apparently led to a worsening of their working relationship which perhaps led to khan looking for another position unfortunately, the investigators didnt look into it, so we have no more clarity as to what role that relationship played into the events as they played out. We have no information on the Police Investigation that took place between an altercation between khan and those carrying out surveillance on him. There was a conversation outside of a restaurant in zurich where apparently in the confrontation, mr. Khan tried to take pictures of those pursuers. We dont know very much about that at this stage, we dont have a lot of clarity about why the ceo wasnt informed that this spying operation was launched that was in the number of my question how confident can we be that ceo was in charge of this bank if we didnt know about such an issue in advance this was a key focus of our investigation. We look add it and base our decision on this evidence. We have discussed this with them theyve asked them about this zero evidence that he was informed about it. Even in a big company, there was incidence established and the coo of the Company Acted alone it may take some time to find out if Something Like that happened the chairman went on to say that they enjoyed the support of major Share Holders at this stage and contends that the board has no reason at this point to ask about that situation. Enjoying the support of the Share Holders. Lets bring an alternative perspective. Joining me down the line as my colleague was just highlighting, the last 24 hours has seen a lot of turnover at the bank we saw the coo resign on the back of this investigation and a very public apology out of the chairman also the board reiterating that they have the full support my question to you, can they move away from this . Essentially based on that evidence, it does seem swift and adequate that the highest person in the company that new about it was removed. If the evidence was correct, i think we can definitely move on. We have to look into, okay, what do we turn up to why he wasnt performed. If it does turn out in the end, we can definitely move on from the scenario the coo would not be aware of an operation of this size. That raises questions about what grasp he has over the company. I dont think we want to blow this totally out of proportion it does sound like a spy thriller the impact has been quite muted. I think hes gotten in on the operational development. They have returned to roe and a lot of things he has to focus on it may be the effects of an individual there acting on the coo level. Thiam has a lot going on and weawe have to go off the evidence at this point this goes to the restructuring effort of mr. Thiam and the claim that restructuring efforts have come to an end. This sets them back a little bit. What type of impact do you think it would have if mr. Thiam were to step away from the role under duress pressure . Yes if thiam where to leave, it would be a big hit they are not up towards 10 . They are not out of the woods yet. It is increasing quarter to. Wealth management is growing in asia reduction of markets thiam has been instrumental. For him leaving would be a big thing. What about swiss banks in general, these are two titans. We are talking Credit Suisse and ubs. They are both facing similar issues which is where this story started from equally, they are set back by the negative Interest Rate environment. How do you see things panning out for this sector as a whole swiss rates are very low. The swiss banks have really reduced their reliance on the swiss income Wealth Management is under a lot of pressure in fees. For china, for example, there is evidence that business has grown yearonyear there are good targets that return to the down sides the swiss banks can deal with the negative rates and come to this big term issue. That was the fixed income strategist police have fired tear gas as thousandstake to the street of hong kong as china marks the 70th anniversary of rule in china. Things have taken a turn for the worse. What started out as Peaceful Demonstrations have deteriorated we are seeing a little bit of fire there, reports of tear gas and the demolition of cars you can see things are really beginning to tense up. Lets get to sharon, it really looks like things have turned in the last couple of hours reporter thats right. The question is by night fall, things can get uglier. That seems to be the case for the summer protest to give you the back drop of today. It is Chinas National Day 70th anniversary of the prc. A special occasion to mark you can see protesters behind me taking part in the main march happening today. They are quote, unquote, mourning the occasion. Many of them are Holding Black balloons hoel holding up flags of other countries like the United States and United Kingdom we have seen fire and tear gas has been used by Police Officers we are are also monitoring situation in this other part of hong kong near Chinese Liaison Office where water cannon trucks are being deployed a lot of Police Officers are being deployed there because some hard core protesters are making their way there as well the people behind me is taking part in this peaceful part of the Pro Democracy Movement we are looking at people from mainstream families, couples, really enjoying this movement by the night fall, we tend to see hard core protesters turning to other tactics and certainly a challenging moment an interesting back drop there with the anniversary going on there in china. Meanwhile, chinese president has pledged ongoing prosperity and Peaceful Development to mark 70 years of communist party rule. The procession of tanks, planes alongside different regions and ethnicities. Different celebrations as china faces multiple challenges. They said beijing would stand strong in the face of structure. Translator today, a socialist china is standing in the east of the world. There is no force that can stop this great nation from forging ahead. We are going to take a commercial break coming up, the special delivery. Ceo of Deutsche Post unveils a new anpl to grow the company more after the break or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Its how we bring hope to our patients like viola. Her team treated her cancer and strengthened her spirit. So viola could focus on their future. Cancer Treatment Centers of america. Appointments available now. Cancer Treatment Centers of america. Sfx upbeat music a lot of clothes you normally take to the cleaners arent dirty dirty. They just need a quick refresh. Try new febreze clothing quick dry mist. It eliminates odors and refreshes lightlyworn clothing. Breathe happy febreze. La la la la la. Welcome back to the show. Deutsche post dhl is looking to increase profits by 2022 they are targeting longterm leg legit massy. Deutsche post is very much the company trying to keep up with new e commerce trends. How is that being reflected in their strategy it is reflected in Huge Investment of digitalization and automation in virtually all the segments of Deutsche Post. They are wanting to concentrate on that part of the business, the parcel and the letter business they will now automate more. The Investment Plan is huge in digitalization over the final rise in 2025 this is clearly including an upgrade of their overall it systems. This is setting up the company which would be very efficient in the future and digitalized world. That is what frank apple wants to do. If their targets are quite ambitious given all the uncertainties due to the geopolitical situations, do away with their out look some what. Take a listen about what he had to say about his assessment of the situation. Delivering on the high uncertainty, since we have so much under control urselves, w believe we can grow. Helping in these moments we have business like Global Forwarding and the supply chain is very late in the cycle. That makes us very confident to deliver our target at first sight, one would think a company like Deutsche Post is badly affected by the trade dispute but that is sort of out weighed by also by megatrends that more and more people are going to the internet to do their shopping that is something they are benefitting Going Forward tremendously they have been able to raise prices in the letter and partial business that seems to be the status now. Still, there is head room in the parcel business to raise prices as needed. They have passed through the cost for example, if brexit were to happen as a hard brexit, he has said they can shoulder that for people using the dhl in the future bottom line is that their plan is to increase by 5. 3 billion and they are ranging to an e bid of 4. 3 billion. Back to you. It remains to be seen whether they can achieve those targets today is october 1, the 70th Year Anniversary of the founding of the Chinese Communist party there are celebrations going on in beijing as you were just speaking with our colleague, there are demonstrations going on in hong kong it appears they have turned some what violent in the last half hour they are ordering all persons to evacuate immediately reuters is reporting that the Hong Kong Police are firing blue water cannon as these protests are descending they are firing these Water Cannons outside the government headquarters youll notice many are wearing black because they say this is a day of mourning, mourning for democracy as weve been uncovering those are live shots from hong kong president trumps personal lawyer Rudy Giuliani has been hit with several subpoena. President trump has blasted the whistleblower. He was looking to discover the identity adding that the source misrepresented the identification trying to find out about a whistleblower when they report things that are incorrect. As you know and probably have figured out, the statement i made to the president of the ukraine, a good man, a nice man, it was perfect perfect. The whistleblower reported a totally different Statement Like a statement that was not even made, the statement with the call the call was perfect from u. S. Politics to uk politics, Boris Johnson unveils new brexit plans but ireland is not prsed imeswith the proposal. Details coming up next but febreze air effects eliminates odors. With a 100 natural propellent. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. Welcome to street signs. Im Joumanna Bercetche and these are your headlines in china, police use Water Cannons and tear gas on protesters damage control Credit Suisse looks to mend its represent after a probe finds that the coo acted alone on spying charges we base our decision on the evidence we have we have discussed this point with him, the investigators. Asked him about this we have absolutely zero evidence that he was informed about it. British Prime MinisterBoris Johnson says the government is prepared to deliver, quote, a very good offer to the European Union as he brushes aside plans for the irish boarder. And Deutsche Post and ceo frank apple tells cnbc exclusively that the firm can handle the head winds we have seen already. We have contribution that airfreight is slowing down we are not independent from the markets. As i said, we have enough selfhelp to continue to improve our models half an hour ago, we had the eurozone manufacturing numbers come in slightly higher than the flash estimate but till very weak, we are still getting the uk manufacturing numbers now have come in at 48. 3 versus 47. 4 in august. This is higher than the expectation of 47. Stocks of purchases into buying volumes rise some restart brexit preparations there may be some effect october 31 is the new brexit date the original one, we also saw and that may be showing up in todays numbers. Do take them with a pinch of salt Higher Expectations here Boris Johnson says the government will make the European Union, quote, a very good offer very soon he says there is a good way forward and good solution adding that the important thing is to get rid of the irish backstop. The comments come after a plan to dismiss those as a, quote, nonstarter johnson brushed aside the criticism. Steve is at the Party Conference to quote the godfather, is it an offer that you cant refuse . I dont know, to be honest. No one knows what the offer is the Prime Minister, we have to take him at his words. The reported offer at the moment is confused and just not right that reporting that he was reacting to and saying is a nonstarter we have to know if that is a partial detail or just plain wrong. That does remain clear is the legal text remains clear after tense negotiation that this will go to the eu so they can try to achieve some sort of accord by the eu on the 17th and 18th. We are in october. We are 30 days away from that hard brexit date ive been speaking to various ministers here and stake holders among the brexit constituency to ask them what is going on. The minister of business and clean growth, i said, listen, have you seen any growth listen to his reply. They moved. Beginning of august, i was told by newspaper people, media, there was no way they were going to reopen. Now, it looks like we are. Thats a huge amount of progress in two months. There you have it a minister who believes there has been movement from the eu. Are they are concrete happenings i spoke to one of the hardest brex brexit yers out there. This is what he had to say about his impression of something going on at the moment, what they are doing is sorting out with the eu the parameters for any future deal and theyll put the proposal on the table. They wont do it just yet, they havent completed the process. You think there is soming going on i know there is i know very well what they are doing. I know there is, ive been speaking to people involved. This is intriguing if they are trying to unlock the key to the door of brexit, that has to come to the backstop to see what those are there are two other places one in manchester, we are seeing promise after promise from the ministers just cueing up to offer what looks like a manifesto there. Seeing the billions for health two days ago talking about the billions for the infrastructure and more money that would be boosting the million weight 10 pound 50. These are very expensive promises they are matched from the labor party as well. That is the way as they have ended no matter who the government is. The other place we are checking out is westminster despite the fact that we have worked so hard and refused to have the tories with the recess. It appears very little that the socalled Rebel Alliance the democrats, the s p, the Labor Department are all on very different pages. Very interesting to see that development there in london, manchester and European Union negotiations back to you. Many different angels to consider lets talk about another country focused on the fiscal spending italys government is expected to raise the target to 2. 2 of gdp when it signs off later today. The economy minister says the new budget will be a quote, wise midway between the previous 2. 04 and the 2. 4 sought by the previous government. Exactly in the middle of that. Meanwhile, greece needs to pursue stronger fiscal and banking reforms according to the Imf European Department director adding while greece has made an historical start, it faces an up hill battle. Lets start off with greece. I spoke with you on the sidelines. You said to me, the worst is over and they have an uphill battle to climb. This new government has prioritized growth is that welcome on your part and can you be achievable given that you are still targeting the surplus . It is good that the new government is focused on growth. We had a mission there i think the government is fully aware of the key challenges. Many of the fundamental Structural Reforms are still ahead of it. Those long probes got considerable measure of stability would give it the breathing room to deal with the fundamental structural issues and it is right to focus on those. In this episode of weakness we are seeing in other countries, grease is doing relatively okay. Are you confident that it can be relatively shielded . Clearly, a good catch of potential and after a long time of many resources being idle, i do think that greece is in a relatively favorable spot. For this to translate into a durable recovery, it is important that greece tackle some structural al reforms just to take it back, i know the imf have been vocal on this, have we seen that reduce for the near future . We have seen that it would target some what lower surpluses. It is up for greece and the European Partners and whatever it agreed has not done in a way that does not rise and give doubt to that sustainability this is offered for the european and Greece Greece has paid off outstanding loans but the average rate on that is still 4. 5 very high still. Certainly makes a lot of sense to look to prepaid a lot of these early. I agree thats the way imf financing is structured to give benefit for early repayment. You expect that to happen soon they have taken the first step i would think down the road they would look to accelerate that process. Thats up for greece to decide it seems like there has been a shift with the new European Commission in place. The case that europe is facing structural structural issues and a little more spending on the countries with the fire power to do so italy has come up as a problem child when it comes to a relationship of the italians and brussels they have a new government in place. How worried are you from the outside looking in about the trajectory of the italian debt and pushing the boundaries of where brussels would like them to be . It is clear what italys challenges are fundamental challenges are low economic growth. Closing the productivity gaps. That is the critical issue without solving that, italy will never solve that fiscal problem if it doesnt get growth, for sure that credible term of fiscal plan for conservation and slowly bring down debt, what the appropriate fiscal position next year is again. This is something to decide to take into account in the recent development. Ill put hear the development is uncertain. Whatever italy does now needs to be anchored in the plan. That is critical my question to you is, can italy succeed in boosting productivity and these reforms perhaps the European Commission and the imf need to be more open finded minded to the possibility of that growth happening. It has to be in the context of a credible plan what matters is when announced commitments that suggest italy will get a grip with the issues and the border reforms. That in it self will give you more fiscal space in the short run. Are you confident that this new government understands that better than the prior government we have so far had limited contact but what i hear, it understands what the issues are. Well pick up the conversation in a few minutes. Also coming up on the show, the head of the uns Labor Ministry says trust has never been lower. No matter what i wore, i worried someone might see my bladder leak underwear. So, i switched. To always discreet boutique. Its shapehugging threads smooth out the back. So it fits better than depend. And no one notices. Always discreet. Welcome back. The European Unions nomination said they must stand up for themselves as they prepare to green light billions of dollars as part of a 15year spat over airline subsidies. Saying confidence in International Trade has never been so 0 low. He said he fears that could lead countries to becoming more autocratic we dont have an official announcement yet out of the wto but it looks like a lot of ramifications on businesses, companies and trust in the system what more can you tell us . Thats right. Yes, here, there was a Conference Held not far from the European Commission i am outside of now the conference focused on women in trade negotiators and politicians in trade. Among them, guy rider, i had a chance to sit down with him. I sat there and asked him about the whole range of issues about trade and multilateralism. Particularly when it came the possibility of tit for tat retaliations between them, here is how he expressed his concern about what might come i think the idea is out there about that one country has gained on the other. That trade is about what person, one country taking gain from the other. I think it is eroded in this situation. The natural consequence is a sort of drawing back a resort to nationalist and isolationism we are in unknown territory. I cant think of a time when people felt more uncertain about their futures. That is dripped into our political life as well as economic and social inter ever action that uncertainty referring to there is something we have already seen drive Economic Sentiment and investment decisions. It is not there for about companies that might be impacted by tariffs in europe or companies that might be impacted later for a ruling against boeing later next year, it is also about other businesses and investors making decisions to hold off for the time being and the impact that has on broader economies. Thank you for bringing us the latest there those ramifications are quite severe for more on the discussion, hea on line to cnbc. Com. I want to bring it back to paul tomorrow, trade wars, looks as though theyll launch a new front against china and europe how does that factor into the baseline of European Growth into next year . The situation is weaker than we expected six months ago it is particularly in trade, so far, it is not spilling over significantly. Labor markets are still relatively strong in most European Countries there is considerable risk to the out look in particular from trade. I have no comment on the individual case that you just referred to but it is critical that these things are solved inside the exiting framework given the uncertainty and risk, i hope at this stage, refrain from any action. This is a particularly important time to proceed very carefully producing a big package that comes in times the eurozone has been slowing down. With the help of the ecb, do you think that they have managed to thwart or stop that stag anythination of the eurozone. There are always risks here we really mean it with trade and brexit and some potential fears of negative shocks, what happened to the euro area. Europe in general. I think the ecb reaction is understandable if they are shocks, the main reaction would have come to fiscal policy. Here, a number of countries clearly have fiscal space. We have argued that germany and netherlands should use this space for their own good to boost their long term growth not a shortterm argument. Clearly if the shock effects germany and other countries, there is also a shortterm argument to do more. Already now, there is a strong and structural argument to boost growth, infrastructure increase and female participation in the labor market youve been following europe for many years now when you look back, would you say the current account surplus has held back the surplus and been way too high for too long there is no point that german surplus has been too high. It is coming down but coming down much too slowly the things i describe would help bring it down. Above, what we need to see is the strong position in germany translate to higher wage increases. That is crucial for the competitiveness. Greece is one of them. Just bringing it back to the ecb, there could be an internal shock, do you think we are getting to the limits of the policy here. We are not saying we are at the limit but clearly, if there is a need for significant effort, it would have to come mainly from the policy taking over we have a new chief taking over what do you think ms. Lagarde is going to bring to the table . She will bring an ability to listen to stake holders. She has a proven record of that and im sure she can do that at the ecb too. Now that theere is that understanding of taking on that crucial role we havent talked about brexit, in a situation of a no deal hard brexit on october 31, how much risk does that pose . Significant very significant to the uk, it is very difficult to quantify. This would be a major shock. In particular to the uk economy but also to the european economy. When you look back to the European Growth, is there an evidence that the decision itself has had adverse con kwenss consequences of growth we are seeing weakening evidence in the data. It is difficult to say why it is the sentiment. I do think the risk of brexit are weighing on sentiment. No doubt about that. Thank you for taking the time to chat with me today. Paul thompson, the director of the European Market from the imf. We were talking about earlier that it is the 70th year of the Chinese Communist party. What started as Peaceful Demonstrations have deteriorated into some what of a violent riot you can see that police are hovering around there. Earlier reports of Water Cannons and tear gas being deployed. Our correspondents are reportin that we expect those demonstrations later in the day to turn ugly the demonstrators are wearing black today. A quick look at the u. S. Futures. All three majors are seen in the green. Thats it for our show, im Joumanna Bercetche and Worldwide Exchange is coming up next. It is 5 00 a. M. Here, 5 00 p. M. In hong kong. Massive demonstrations in beijing as china celebrates its 70th anniversary protesters are hitting the streets and clashing with police live reports straight ahead. Call it the race to the bottom another central bank cutting Interest Rates again to record lows in corporate news. A story that sounds more like a novel than headline. A to