Deeper back. The ford picture is weaker investors shaking that off a lot of interesting news over earnings from the fierce tie up from Fiat Chrysler speaking of autos. Right at the bottom. The auto basket of stocks, a fairly significant day right at the bottom is peugeot riv riv rival renault stepping up as well down 1. 1 . Significant heavy weight in the basket banks down a frangs. We had been talking about a couple of Bank Earnings. Retail stocks. Trying to stay positive. Industrials up a quarter of one percent. The cancel of that apec meeting in chile chemicals up a third of a percent. Utilities trading higher in the technology basket you can see them trading gains suppliers in europe will react to some of those numbers around iphone and wearable sales. Financials out based by utilities. Fairly decent gains. On the day that was meant to deliver brexit we have the uk stock market trading down a forecast 7,313. Across the rest of the markets, a pop for halloween in the french market, a little more for the dax. Similar for italy. Not much for the swiss market and spanish stocks little sluggish start. Lets switch over to peugeot the company has agreed to a merge of equals creating the worlds fourth largest carmakers will be based in the netherlands and listed in paris, france and new york and fca says it expects the deal to lead to 3. 7 billion euros in annual synergies a quick look at how the share price is now performing. After the big spike we saw yesterday and declined today that has moved a little bit. 28 higher, so very, very strong worth noting some of those comments from the french government who was saying they want to protect the footprint in france saying they wont have any closures also around thecreation of Battery Technology karen, jimmy has joined us around the desk. We were talking about why psa is down so strongly fiat is indicated to open as much as 10 . Thats the only indication we are waiting for a trade at this point you made an interesting point about why we might necessarily see a divergence on this news. When you see that kind of sudden up down reaction, that is due to the bias of how one country is treat treated versus the other what would be your broad analysis of the benefits or otherwise for europe any kind of proactive consolidation in europe ticks two boxes. One, it moves forward the debate of how that can happen secondly, again, you are taking steps towards removing capacity. That is a continual complaint you hear from overseas just to make note, Fiat Chrysler is up nearly 10 . Jimmy, just looking at value stocks more broadly. Yesterday, our guest suggesting there is going to be support for stocks now moving forward. Not just because the valuation gap is so massive but also because of the restructuring mounts that will take place. What are you seeing and thinking in terms of Market Positioning weve seen a bit of momentum shift. Does that trade have legs . That is sort of a butterfly catalyst if you look at some stocks underperforming in europe. They are very value oriented weve seen that shift. More globally, two things. One is the lower risk stable type stocks were very puncture valued weve had some downward pressure you can only resist cap ex for so long. With debt capital as cheap as it is, it is impossible to resist temptation in worse case spend money on cap ex and to restructure. A year ago when the world was starting to fall apart in q 4, the faang stocks got hit what we saw was the market was not prepared to pay for a lyft or an uber then we saw them shift to defensives to stay invested, the market is paying more attention to valuation. The next step will be dividend yields and then cash because we are at the end of the market i think the market is trying to stay invested as much as it can. Karen, back to you. Showing the stock prices again for fiat and psa one of the fears has been about that industrial footprint. Looking at the numbers of one plant in france. You have to say that the focus will be the factories that psa have in france that will be one of the focuses. You can see that split performance. Enough to move that needle now driving enough performance of that country versus what you are seeing across the markets in the red. The italian markets trading up almost half a percent now just clocking out that 10 to a double digit gain. We have had a fairly weak outing of renault in particular some sour grapes that have missed out in the frank government standing in the way with fiat earlier in the year because of partners with the other line that had been from a stock price reacting that is a push lower on top of this, the chinese numbers pushing up we have weak pmis out of china. Thats the reaction across some of the german automakers ferrari up higher. A quick look going with the fiat stock up 5. 3 . Looking at more earnings action. Shell has been a big one to watch in the oil basket today. One of the underperformers in the oil basket in Third Quarter profit missing refinitiv estimates, the stock falls 2. 75 down 13 the oil wager was weighed down by crude prices. The Dutch Company launched a buy back program part of the wider scheme to bnp in the banking space. The stock just modestly south. Net profit coming in just below 2 billion euros. Often some of the Bank Earnings will be a reading on the economy. Just run us through the numbers and how they look. You are right it was slightly better than expected saying outstanding loans in france at about 5. 9 was good news in a wide and slower trend in europe. France was actually a bright spot there for results overall net profits are 1. 9 billion versus 1. 8 forecast. That was mainly led by the civ division whererevenue was up showing the restructuring of the bank is doing well going ahead they are getting closer to their 2020 targets including the cet ratio reaching 12 for the bank. I caught up with them and asked them to give us a top line of how they are doing in their cib business if you look at bnp paribas, they are up 5 , so are the revenues even in this environment of low rates in europe. This as they crib to being diversified. On top of that, we have this Revenue Growth and kept on focusing on post reduction that was the cfo reporting on the effects of the bank. Showing they are still carrying on with their cost cutting effort through the bank. We see a mitigated response. That was indeed actually a better than expected result. Better than the beginning of the year when we saw a bump in the row. Here that momentum is coming back for the french bank the stock has fallen further now down about. 8 . A reverse from that modest picture from the start lets move to lloyds the reaction is a miss the biggest Mortgage Lender was hit to an ongoing scandal related to insure. Ing, analysts have liked this stock for a long time. Not much to write home about beating expectations coming in at 1. 9 billion euros regulatory costs rose cet ratio to 14. 6 over the period getting to swiss re, Third Quarter profit has missed expectations coming in at 1. 3 million claiming natural and man made disasters the stock slumping just over 16 . Coming up, shares fall hitting two of europes biggest carriers more after the break do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Rowithout the Commission Fees and account minimums. So, you can start investing today, wherever you are even hanging with your dog. Ooh, like her. Shes probably investing right now. Taking charge of her money, making it happen. Shes not going to be happy about that pillow. Its time to do money, so what are you waiting for. Download now and get your first stock on us. Robinhood. 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. Whwhat do you see . He world, we see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. We continue to chase some of the earnings reaction. One worth checking on as the stock balances the revenue grew over 5 beating estimates. A weaker performance in russia by a stronger showing in asia and western Europe Sanofi backed its targets. The first set of results hudson said he was encouraged by the french drug makers work to British Airways owner iag this took a hit from pilot strikes in september the two days of industrial action led to 155 euro hit meantime, lets get to Air France Klm, reaction in more negative shares down 4. 8 the Company Expects slowing travel demand to hit sales the rest of the year after the company missed the forecast. The company saying, quote, crisis around the world adapting desires to travel. Still positive up 17 . Taking you to bt maintained the dividend to share. The uks biggest broadband provider coming in with revenue at 11. 5 Million Pounds the revenue basis points signaled the pause by removing the words act as appropriate fed chair said Monetary Policy is in good place but is ready to respond as the economic changes. Moving to a more accommodative stance the funds range will be arranged we are going to be watching all factors. When elements emerge, we would respond accordingly. George and rosengren as both agree to keep things steady. We go to our guests. What do you make of the fed decision i think it is interesting that the focus is on no more cuts he said we are in a good place what the equity market will take from that is that we are going to stay in a good place. Ecb has talked about symmetry. If we start to see a recovery, okay fine we wont see any rise to the cost youll see serious inflation for them to start hiking that means we could be in a very good place for policy for a very long time. There is a chance as the economy stocks recover, the market overexpects the hawkish delivery it is interesting that gold seems to be moving in a way that would reflect that pattern as well you are broad on gold yet, i get much more negativity from neil. It hopes the insurance cuts will prolong the cycle which he said would continue indefinitely. We look the u. S. Looks recessionary already the next thing hes going to do is panic hell probably be panicking by the summer with more about that, i agree we are bullish when you look at the u. S. Economy, it looks horrific we believe if things do deteriorate, youll see more liquidity. All of a sudden you are fine the s p is not massively overvalued we were worried wed have to see the 2020 provisions. That doesnt seem to be the case so far trades of huge delta, Global Economy and how the company feels about the activity you only need the trade calculation. The market can be wrong with how it is. With the pmi up, that tells me no one will be bullish on asian Growth Investment there will be happening. The u. S. Is in our book slowing even in the sensitive areas like housing, they really dont have much of a mojoe. The company down grades come when our companies will admit. The history shows so far this year, the down grades have been the fastest year over year i dont see where the 10 earnings rate will go. That does not just come from the earnings growth. There are not that many alternatives out there to buy. You are paying 17 to 18 earnings to now 0 earnings rate id rather buy growing at 15 . I think the value is out of kilter with the growth and there is no dividend with the u. S. Looking at the deal in china, Jerome Powell seems to be much more fix ated on the strength of the u. S. Consumer pointing to how the household sector has remained strong. It seems like regardless to what is happening in the chinese domestic market, hes comfortable with the market in the u. S. And he should be. Consumption was at 2. 8 . The top 20 of American Consumers were in a fantastic place. The bottom 80 were seeing auto loan deliquencies booming. We are not seeing a lot of pay rises until we see president warren we think under the surface, the dynamics are looking a lot worse than they were the outperformance of a target or walmart tells me where the money is being spent neil, based on your assumption of the sources and rates, you pay again for technology the market swings back to technology do you buy, technology, dont you . I dont i can just about live with apple. I think the other ones face reregulation and possibly political interference confidence about corporate spending will be in the areas where companies are way behind when it comes to it. I agree i think for every point we are making, the elephant in the room is the trade war we are seeing inventory cycles particularly in the u. S. Are up sharp. From our perspective and remember we are more a trading desk sku tells you people are pretty hedged into january there is a risk that all of a sudden that switch gets flipped. You unlock and see zero response taking the steam and heat out of the economy. We go 17 times and then 18, 19, 20 standing behind and seeing those yields go tight. There is this danger, if you are not vesting in the equities. You are missing the point that they may be willing to stoke the risk asset bubble to make sure they do not forego this opportunity. This comes back to the idea are they willing to go back 2 before we even blink the ecb has introduced this duel mandate. Realizing inflation has to be printing at 2 before the ecb will start looking at perhaps removing some of the policy. Thank you for joining us. Head of equity trading at cte. Looking at zalando narrowed its net loss the retailer narrowed the out look set to increase on the back of the Loyalty Program in germany. Not enough for investors fairly negative. Coming up, well discuss draghis legacy. Former greek finance minister joining us soon. My mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Thbecause with nband after thleague pass on xfinityr. You can watch the out of market games you want all season long. And with the allnew xfinity sports zone, you get everything nba all in one place even notifications about your favorite teams. Watch the dropped dimes, monster blocks, and showstopping dunks. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nba League Pass into your voice remote to upgrade for a great low price or go online today. A green light for an auto deal agree a merger of equals sending shares sharply higher while the peugeot maker sees red. Shares slide joining bp amid sluggish demand. Turbulence ahead air france shares plummet and flag slowing doe mand amid trade tensions apple beats on the top and bottom line as a surge in revenues from wearables help offset iphone sales and caps off a strong iphone season markets in europe have now been open about half an our we have some positive momentum it is important to look at the hand over. All three indices there trade higher hitting the record close. After hours, we heard from tech giants, apple and facebook both beating expectations and seeing shares rise this has meant for positive moves and for a variety of stocks across a range of different sectors. Investors seem to be shurging off different data and focusing on the positives weve got utilities, the most defensive part trading highest food and bev, travel and leisure. Technology also trading in the green on the back of those results from apple and facebook. We have oil and gas down more than 1 . Basic resources as well. You have to look for a trend this morning while the more defensive parts of the sector are trading off a bit. A lot of corporate earnings and Fiat Chrysler up nearly 10 those shares are down. Investors dont seem to like what they see on the psa side of things Air France Klm have hit shares around 5 hitting the sluggish demand it seems as though people are traveling less given the range of crisis around the world. Christine lagarde will take over the top role at the ecb tomorrow says he doesnt make sense to restart its bond purchasing program. Taking up such a minor program. Remember at a time when it was still in a space of growth extended over a period of 10 years. This doesnt make in my mind any sense. It will not have positive effects but it will have negative effects in the direction for the future decline. We have a special problem that the ecb is buying government bonds the question of violating the auto financing is always around she is an outstanding personality taking over the presidency will be a big, big challenge. One should always hope for the best my position was that one should constantly look at the strategy. How measures taken are in line with the strategy and from time to time, i myself suggested in 2002, we must prep for the strategy i had prepared it for my start before from all our measures and the tools. I think this is something that is absolutely normal and necessary. So lets talk a bit about mr. Draghis legacy. The man who famously spared with him is the former greek finance minister and founder of greeces 2025 Political Party good to have you with us this morning. So there is no love lost between you and mario draghi as i recall let us reflect that grease went into the retirement to the public sector. You have to see reform and fiscal response. That was not marios mantra his mantra was all about saving the eurozone from gigantic crisis which was repackaged. No question that was the kaes of a basket case. The reason why we have been in debited for years is not that. That is restructured allow me a quick correction there was never any animosity between mario and myself i gave him high marks for the way he handled his poor folio and the constraints he was facing in theory, it is the most independent bank but in practice, its the least independent bank somebody like mario draghi had to contact ways of bailing outstates and banks where in effect of contradiction with his own charter. One of the prices he had to pay was to sacrifice countries like us he had to accept that the ecb would be used against the governments attempt it must be around awful thing to pretend to be in effect as creating rooms that need to be violated by the central banker lets move on lets just move down the road and talk about the future and leave the past christine la guard comes in and what do you want her to do in the institution to improve outcomes. The tools that were essential. Like an antibiotic that had stopped working. Christine lagarde would have to live with the legacy of draghi behind her and developing new tools. Let me cut to the chase, i think she needs to develop the instruments. I think the ecb should issue its own bond to help convert part of the debt of member states. Instead of buying italian debt to issue its own bond that would be serviced by italy to cover the massive compliant part of the italian debt it is a radical new instrument imagine that could be a new safe asset. At the same time, this should be a massive program. She should push the council in the direction of giving the green light to issue a ward of bonds to provide the markets and the italian debt, german debt and dutch debt and so on coming back to the reform that the country would have to go through it still seems to me while we can throw a lot of money at it, when do you think or do you think Christine Lagarde is able to drive each european country so that in eight years time you all kind of look the same. Have the same taxation policies and fiscal policies of the welfare policies which we see at the moment that will be very unfair to expect of Christine Lagarde. This is not the job and not something we can accomplish. What the president of the central bank should be doing, she should be working to have safe asset like an ecb bond and have a plan that is a result of the collaboration. That would stabilize the europe ozone in aggregate it has not been stabilized over the last few years what mario draghi succeeded to do is to put a backstop and to stop the fragment ag of the eurozone but microeconomics are getting worse. You only need to look at italy and within the Financial Sector of germany to see the eurozone crisis is continuing to ferment. Its up to us politicians. Will we continue to put the burden on central bankers who can neither accomplish those tasks nor should they be asked to accomplish those tasks. I want to ask you about the fed. Overnight, we saw jay powell deliver the rate cut and talking about all the pauses what do you expect from the u. S. And what role for jay powell next mr. Powell leaves kicking and screaming that that was the last rate reduction hell visit upon us this is not a credible proposition. The way global capitalism is inching closer, the fed will be forced to moveforwards jap japanification we have to ask ourselves, a very simple question. Are we going to move down a globalization of japans state of play or are we going collectively to create a large scale investment program, a new deal and better be a green one that energizes the excess liquidity now pushing Interest Rates below zero around the world. We have 3 trillion worth of negative bonds and energize this money and press it for good purposes, for humanity sake. This is a great dilemma. The problem is, who is going to be having this conversation. Europeans dont talk to one another about matters of importance there is no dialogue between brussels and washington and there is a trade war between washington and d. C those three should be getting on with a discussion about do we want the globalization of the japan model or not thank you for joining us. Very much appreciate your time come and see us in studio at some time. Former greek finance minister. Lets talk about the latest news around the attack on the Islamic State leader authorities have released new footage from a raid that led to the Islamic State leader the plume there is a compound where authorities aim to destroy the site and make sure it is not honored as a, quote, shrine. And a warning of a retribution attack coming up, apple forecasts a happy Holiday Season for iphone sales. Want your skin to glow . Like woah. Try new b3 powered serum sticks and new overnight gel masks with b3. Cleanse with 5 in 1 daily facials. Get glowing, with olay welcome back the big deal announced deserves us to have a recap on what has been agreed to hear in the auto sector this is the term of the arrangement now put forward for fca and psa. These two European Companies that will become the fourth largest volume manufacturer of cars globally. It is a 50 50 share swap 50 of both businesses will own the business Going Forward in terms of what they are hoping to rest on sinner guys is 3. 7 billion and a special dividend of 5. 5 billion euros. When it comes down to management structure, this man, john elkan will remain chairman coming from the fca side and carlos, the man who has skill full y turned around psa and generated a 600 return in the share price. He remains ceo for the business. Very noted for his ability to continue to drive cost benefits from the business structure. Fiveyear term balanced board of directors we have have to watch and wait and see what hurdles have to be left here weve had bruno lamare from france scrutinizing any job cuts that will likely be announced focusing specifically across france and europe. Thank you lets take a look at the trading shares tech and retail beat earnings estimates. The numbers were boosted by a Strong Performance in wearables much watches and head phones has a 55 growth also issuing a bullish out look. Reacting to the apple news we saw overnight. A look at how some of the Major Players are reacting this morning. Shares of facebook have dropped alongside better than expected research and communities everybody is krinching numbers on apple as we see a pivot in services and wearables this was a major feather in the cap for the bulls. If you look at iphone demand especially in china. We think tracking the expectations iphone, thats the key you look at that with service and guidance i think you are looking at stock to hit about 300 right on the level of the launch of Apple Television if it can corner the market and get the eye balls, they could pick up the venture. Do you see that companying with so much competition and new ones yet to arrive like disney. That has the potential of 100 million sub. You have 900 million iphones worldwide. This could add about 1,500 per share. Now it will be about con tint. The iphone, demand especially strong ill see that stock go higher. Given that we know they can switch to the patterns and to the government about as bullish as ive seen in the last three or four years we could be looking at the units coming around the corner i think this is real about half is coming from the lower iphone 11 is coming from pro. The opportunity to up about half of those you go back three or four months ago. Most would think this is a dream. Thank you for waiting up for us we have to wrap up the program neil, sorry we didnt manage to get you back in. Well see you soon Worldwide Exchange coming in just a few minutes it is 5 00 here at cnbc. Investors cheering the third rate cut of the year tim cook wins again despite a slow down in iphones a twitter surprise ceo shocking the street announcing a ban on political ads will facebook do the same. Speaking of facebook, that stock rises and a big congrats to the Washington Nationals taking home the first world series