The thursday session. This is the spanish stock market, up by 2. 5 today. For today, the ibex was down by 4 over the week. We are going to talk spain in just a moment, so i am going to avoid chatting about it. The euro lower. Sterling down against the dollar. Sovereign bond yields, the 10 year in spain down by 8. 5 basis points. Finalities and cbs, your your final two columns. The spread is widening in light of events in spain. However, it still is pretty much in line with the historical average this week, the vix up by 1 . Hly this is the italy german spread, the difference in yields between the italian and german tenyear, coming down today, down by six basis points, narrowing. The german and the spanish spread, 1. 68 . Aberdeen investments is short italian, short french debt. Events weighing down on european periphery notes, boosting the alert of german bunds. But a money manager at elions globalsaid allians says he will move out of the short on german bunds, should the Catalan Crisis accelerate. There is a sale of a stake in by siemensng a stake in the lighting industry. Institutional investors buying roughly 18. 1 million shares in a sale that began after wednesdays close. The company did not specify the share price. The stock is more than double the july ipo debut. 53. 90 seven is where we are. In addition to selling the historic business dating back to the beginning of production of incandescent lamps, the osram t fromarks siemens exis the manufacturer of consumer products. 90 minutes into the trading day in the u. S. , what is it looking like . The major averages have hit intraday highs as stocks continue their seemingly inexorable rise that we have seen. We are also seeing a winning streak for the s p 500, the likes of which we have not seen since 2013. A gain of about seven sessions for that in stacks that index. The winning streak we are on we have seen a little changing leadership, in terms of who is leading it today. Take a look at the bloomberg. Consumer has been a pretty stable presence in the current rally. If you look at the imap on the bloomberg, Consumer Staples up today. Discretionary up to a lesser degree. Real estate has been climbing as bondsears are going as are going higher. Usually, they move inversely. Financials rising along with yields and tech, which has been a bit of an underperformer recently. It seems to be playing catchup today. Focusing on Consumer Staples stocks that are gaining again today, Constellation Brands is leading the games, up about 4. 5 after the liquor maker, mostly beer maker that is what it relied on in the quarter Beat Estimates and raised its forecast. Pepsi rises 1 . Colgatepalmolive as well. We see strengths in some of these stable companies. Netflix is one we have been watching, rallying yesterday on an analyst call from ubs. Today, bloomberg is confirming the company is going to be raising prices for the various tiers of subscribers. You can see the today gain netflixday gain for mountain. Outside of stocks, we have commodities rallying as well. Crude oil prices higher, as we have the russians and the saudis meeting and seemingly still going ahead with cooperation on extending production cuts. Gasoline futures trading higher as well. Copper getting a boost of 2. 5 today. Mark the stakes are rising and catalonia. S p says an escalation of session prices could hit the Credit Rating of spains richest region. At the same time, the ibex saw a spike as n was said to be stalling on an independence declaration, to create more time for negotiations, according to two people familiar with the plan. There will be no mediated talks with n leaders, according to spains economy minister. He spoke to Francine Lacqua in an exclusive interview from madrid. Point that important was very relevant in the discussion, that the European Parliament held yesterday. Isis that the rule of law the main question. It is the main point we have to enforce. It is the legality we have to defend. There is nothing acceptable outside the legality. We have been totally open to discussing with the catalan government, but it always has to be within the framework of legality, and the framework of the spanish constitution. If we accept any sort of, lets say, mediation or arbitrage, we are setting a very dangerous president not only for spain, but for the whole of europe. Francine what i am trying to understand is, would it be the same police that went in on sunday that would implement article 155 if that was the road the Spanish Government decided to go down . the Spanish Government has different instruments. In order to enforce the law you cannot be totally sure if people will be furious, and can be totally assured. We will use the instruments we have available. That is to enforce the law. That is the first principle. Know what the Regional Government of catalonia is going to do. But what i can tell you is that the Spanish Government is fully convinced and fully determined to implement the rule of law with all the instruments we have available in our toolkit. Francine minister, both the Prime Ministers of france but urged yourm, have Prime Minister to open negotiations with the catalan government. You mentioned conversations with your european counterparts. Are they more worried about being heavyhanded when you come to dealing with catalonia, or are they more worried this could be seen as a precedent . Luis well, i want to put it very, very, very clear. This is not a question of mediation, of arbitrage. Abouts a question enforcing the law of the Spanish Government. A Regional Administration is outside of the law, because it is following the agenda of a very radical group. There is nothing to negotiate without the full respect of the rule of law. So if they are back to the spanish constitution, if they start to respect the boundaries and the limitations of the spanish constitution, i can assure you that the approach of the Spanish Government has been to have an open dialogue with, you know, all the Regional Administrations in spain. This has not been the case of the m administration, unfortunately. They were not open of the catalan administration, unfortunately. They were not open to discussion within the boundaries of the law. Illegal referendum. They now are thinking about the of a unilateral declaration of independence. And i can assure you that if that could happen, the response of the Spanish Government will be very clear. When seen minister, lets talk about some of the banks. Catalan lenders such as caixabank have been pulled into the regional politics. We have heard some clients have tried to move assets. 10 you talk about the flows you have seen over the last six days . Tos the first thing i have say and i think this is quite relevant is that these Financial Institutions are catalan and european institutions, spanish institutions. While they have indicated that if this process goes on, they are totally open to relocate their headquarters to other places in spain this is likely an indication about, you know, how insane is the Regional Government of catalonia. You know, the independence of catalonia could take catalonia outside the union, outside the eurozone. Current affect the flows, the quality of the savings of the cattle on people the catalan people. We are determined to defend the integrity and the unity of spain. Francinet was part of s exclusive interview with the spanish finance minister. Lets get more on the events with spain, a stalled independence push for catalonia, spains highest court suspending a key parliamentary session. Lets bring in maria. Are we approaching the end game here . Two Key Developments over the past hour. One is the Plenary Session due monday has now been suspended by the constitutional court. The proindependence majority they have a majority in the catalan parliament. It is a way to preserve the catalandent m republic. The second element is our very own scoop, a story we put out on the terminal. Catalan within the government are saying members are getting cold feet. The coalition together for yes includes all kinds of parties the conservative proindependence n catalans, but also selfdescribed communists. Some are getting scared about what it could do about the economy. They want to reframe it, reword it. There is tension as to how to do it. They could go ahead, and one side of the coalition does not want to do it eminently and want to engage with the Central Government in some negotiations. Vonnie that is just it, maria. The first question to ask at this point is, do the Regional Government leaders recognize the spanish courts . If they do, they have no hands to play. The court has said you are not valid. Maria that is a great point, because this is not the first time, to be honest, they have not accepted spanish law. Again, this is what the government of Mariano Rajoy wants to do. They are betting on this administration to go forward because they want to discredit the process and say, we are not the bad guys. We are trying to implement the law. This administration does not respect anything. They do not even have a mandate. The keyword that started this whole thing is illegal a process that would go out of control and stop the coalition, onedo it in a way that no in spain or in the European Union would recognize it is valid. Maria, interesting moves in the ibex, especially for Spanish Banks or cataloniabased caixabank. Tel and could they move their headquarters . Is that why shares are rising . Whya that is exactly shares are rising. Yesterday, the ibex under a lot of pressure to read what a turnaround. Catalan banks, what a turnaround. Toy are committed shareholders, creditors, depositors, and will do what is best for the bank. Will hold al meeting to decide whether to move or not. They feel they have to. They are committed to shareholders, depositors, and that is their priority. Mark a great job. Maria is live from barcelona, vonnie. Vonnie lets check in on the first word news. Courtney on capitol hill, republicans take the first concrete steps toward a major tax cut. The house and Senate Budget committee will vote on a resolution. Enacting the budget what have republicans rammed through a tax bill without votes in the senate. So far, they have not agreed on tax cuts and which tax breaks to get rid of. Police in las vegas say mass shooter Stephen Paddock did not plan on killing himself following his deadly rampage. Police said they found a note. They would not reveal its contents. They said paddock was planning to escape. He ended up killing himself when police stormed the room. In niger, three u. S. Army special forces soldiers were killed, and others wounded. Authorities say they were probably attacked by al qaeda forces. The u. S. Soldiers were on patrol with troops from niger as part of a training mission. There was a historic meeting at the kremlin today. Vladimir putin met with saudi , the first time a saudi leader has visited russia. The countries are seeking an understanding on whether to agree on curbing oil production. Global news powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Coming right up, we chat about etfs. We have a big survey from james street. Vonnie live from bloomberg World Headquarters in new york, i am vonnie quinn. Mark from london, i am mark barton. Roughly 13n close in minutes. Growing evidence of the popularity of etfs, once viewed as retail. Institutions relying more on etfs than ever before. With a new james Street Survey and the european etf market, we bring in the head of trading for european etfs at james street. Thank you for joining us today. To be bought as much by institutions as retail investors, is what you have uncovered. Product. E a versatile our business is primarily focused on the institutional side of the spectrum. Therefore, we decided to commission a global etf trading survey to try to understand the patterns of Health Institutional clients look at liquidity and trading of etfs. Mark they are relying on Market Makers and request for rfq platforms, not investment banks, to implement their trade. It is 100 million worth a month, is that right . Slawomir what we have found is that on average european investors conduct more than two trades in etfs per day, which we thought was quite high. It shows that the product stops being a nation product a a somethingt and investors are using on a daily basis. And indeed you are right. We found 21 of respondents said they do active trades larger than 100 million, individual trades. Europe, the that in most popular counterpart they work with seems to be electronic liquidity providers who are facilitating those transactions. Mark what are the advantages of an rfq platform . Slawomir request for quote platforms are a really easy way of electronically pulling for liquiditym a panel of providers. For investors, they are able to compare prices that come back electronically in a fast and efficient manner, and select the price of the most convenient. Mark does this show institutions are becoming more sophisticated, more costconscious . Slawomir i think it absolutely shows that. One interesting finding of the the most popular use of etfs is for technical region tactical reasons. A quarter of respondents said they are using them as for Asset Allocation as core Asset Allocation. Focusing on cost is critical. It makes sense that institutional plans are finding ways to execute trades in the most costeffective way. Etfsif they are using for longterm rather than shortterm purposes, is this bad news for active managers who count on institutional clients . Womir i think there is the response is sort of in the numbers, if you look at the cash flow numbers. You see the etf market is going through record inflows. We do not see the same amount of inflows happening in the active marginal space. Mark they are getting smarter about the use, arent they . They base the liquidity on the Trading Volume of the underlying securities. Why is that so important . Slawomir it is another step of that education, in terms of understanding how to extract of most out of an etf as a product. How to understanding evaluate and assess liquidity of the etf, by looking at the liquidity of the underlying asset class the etf represents, is something very important that investors need to master when they use etfs in a systematic fashion. As we have found, two trades a day, 160 trades a month it is becoming a tool. Mark are investors interested in emerging market etfs . Slawomir i think investors understand there is a link between the etf and the type of asset class they are trading. We had asked them to indicate how they use different types of underlying asset classes, and i think they correctly indicated that they think using etfs for highyield or emerging markets is something they need to pay more attention to then when they exposure, which indicates they understand that the etf is just the transmission and access tool to the underlying exposures. Mark great seeing you. Please come back. He is the head of trading for european etfs at jane street. Vonnie fantastic interview, mark. Still ahead, the house is set to vote on the budget today. We will have the latest from washington, coming up. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, i am vonnie quinn. Mark i am mark barton with the european close minutes away. Time to look at some of the biggest business stories in the news right now. The impact of twin hurricanes on the job market in several states has faded. For anime filing implement benefits fell more than expected, jobless claims down at 12,000. The september jobs report comes out tomorrow. Boeing is advancing into autonomous aircraft with the acquisition of a rural flight sciences. The portfolio includes expertise in robotic copilots, drone aircraft, and more. Aurora is a long time partner of blowing that has projects with uber and the pentagon. Boeing says the acquisition will not affect financial data. That is the latest Bloomberg Business flash. A quick look at european Equities Trading as we head to the close in roughly four minutes. Stocks are higher today. Gains in london. Small declines in print for it. I will leave you with the currency board as we approach the european close. Mark live from london and new york, this is the european close. Is your function. Is your function. Brent is coming down. Spains top court suspending the catalog elementary catalan parliamentary session on monday. Catalan said to suspend the independence push. We are seeing spanish yields declining and the spread between spain and germany narrowing as well. It has been quite a week. Earlier, the spread did move to the widest level since april 26. Before today, the spread had widened by 20 basis points. We did have a successful bond auction in spain today. The treasury sold 3. 2 billion euros worth of fiveyear bonds. The socalled bid to cover rising, seen in the previous sale on september 2. The average yield did double from 0. 21 . We had some interesting comments in the last 24 hours from the head of the u. K. s financial conduct authority, issuing a new warning on levels of consumer indebtedness, calling for fresh thinking on how lending is run. With borrowing surging, chief executive Andrew Bailey highlighted his growing concern about payday lenders, excessive rates, overdone accounts, and it occurred debt. Theyll he sa