London. Manus a little bit of breaking news. We have assets under management at the end of october, 393 billion swiss francs. Number, the fight for new funds. Its not just about new funds, its about the profitability of those funds and putting them to work. Thats the headline number coming through from julius berg. 393 billion swiss francs. Thats the top line, and we have a little bit more that we will bring to you. Angela merkel, who would have thought the stalwart of europe cannot get a coalition together . Eurodollar, euroyen, swissie. Anna does that lead to more talks . Perhaps. A minority government, new elections . The euro is the key message. Manus the question is this. Do you look into the eye of the storm and say she will pull it back . There will be a rapprochement . What we have is a reflection. These are the risk reversals. He were trading higher, quite a bullish sentiment on friday. The most bullish since 2009. The risk reversal, trading back at levels we havent seasons october 12, and bang, merkels coalition attempts failed. I will say this, Asset Managers might be wrong and temporarily wrong, because the bullish bets are the longest on record for the Asset Managers. Is the euro a buying opportunity . Anna draghi was at 118. The Asian Session sometimes overreact to european news. We will see whether that is the case or not today. Lets get on the risk radar in show you what has been happening in asian equities. The shanghai market stands at negative, although it has pared some of its losses, and the selloff is pretty broad. Overall we are down. 8 , nothing enormous. The shanghai composite was down earlier, now it is down around. 6 . We do have some weakness coming through. In china there is a warning about stocks increasing too fast, which some people have attributed to the drop in the shanghai composite. U. S. Futures in their, they were in there, they were down on friday. How much of a concern about growth is there as we see the yield curve fitting the tightest level in a decade on friday . Manus what is that telling you . What does the fed want to do . They have penciled in four hikes, the market believes there will only be one additional one in 2018. Y, and that is a debate we will have through the programming. Lets get to at ludlow with your first word news. Ed good morning. Zimbabwes president Robert Mugabe shocked his country with a televised address that failed to announce his highly anticipated resignation. The dramatic twist means he may face immediate impeachment hearings. He has been expected to announce he was stepping down after almost four decades of rule. s command element has toerscored the need for us collectively, collectively, start processes that return our nation to normalcy. Ed u. S. Senator Susan Collins has said the republican tax plan passed by the Senate Finance committee on thursday needs work. Asked directly whether she would vote for the measures as written, she told abcs this week, i havent reached that conclusion yet. If no democrats vote for the bill, republicans can afford to lose only two votes and still pass it. Ron johnson has already said he cant back the bill as written. Japans recovery remains on track, with exports growing by double digits for a fourth straight month in october. That is the best performance since 2008. Exports rose 14 and imports gained almost 19 from a year earlier, leaving a trade surplus of 2. 6 billion, improving local demands fueling growth in exports through the year, with new Electronic Devices creating orders for parts and machinery. The u. K. Could be about to improve its financial offer to the European Union ahead of a crucial meeting next month. Members of theresa mays divided cabinet will consider how much money they are willing to offer if britain divorces the eu. Yesterday, Philip Hammond suggested that a proposal would come soon. It is not about demand, it is about what is properly due from the u. K. To the European Union under International Law, in accordance with the european treaties. We have always been clear that it might be easy to work out that number, but whatever is due, we will pay. We are a nation that honors our debts. Ed global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Lets check in on the markets in asia, heres david ingles. David thanks. Its not the best start to the trading week. As you can see, it is pretty much red across the board. There are a few exceptions, but if you look at the move across the region, it means the split close to 60 of stocks on the way down, give or take 35 . Not a lot of volume coming through, certainly the lack of good news, not so much negative, but the lack of good news. A lot of these markets are also a bit extended. Theres not a lot in the earnings pipeline to look ahead to. We are coming on one of the best Earnings Seasons so far, and when you look ahead, there is not a lot to look forward to, to drive this thing higher. But a few pieces of data, japan trade data, gdp numbers out of thailand not bad as well. Its this divergence between risk assets and the growth momentum remains strong. More an earnings story for the next quarter. A few big movers we are following in the asiapacific, a big deal in hong kong. Up 8 t has been swinging, at one point. It was down 13 at one point as well, down 4 at the moment. You have alibaba buying, getting a piece of the company, adding to their stake, at a discounted share. Aftera is still very much it, planning to raise more money in the market. Thats a wrap of the market story in the asiapacific. Back to you. Anna david ingles in hong kong. Angela merkels future is in doubt after a month of exploratory talks aimed at forming a Coalition Government collapsed last night, sending the euro lower. One prospective coalition partner, the promarket Free Democratic party, walked out on a deal that merkel said had been within reach. Speaking to reporters, she pledged to maintain stability. [speaking german] it is a day is deep reflection of moving forward in germany. I will tell you Everything Possible to ensure that this country will be well led through these difficult weeks. Manus matt miller is live in berlin. Good morning to you. The reasons for this lastminute allapse she says, its profound examination of germanys future. Matt yeah. The reason, according to people we were talking to in the cdu and her party, and people in the greens, is that the ftp walked out of talks. One of the members of the green Negotiation Team said that was welltimed spontaneity by the ftp, implying that they had tried to walk out earlier in the weekend anyway. The ftp, the liberal party here in germany, which would have been a minority partner in this government, says that they werent getting enough progress on the tax cuts that they want, on the business friendly environment they want to create here in germany. They were also concerned about the state of europe. The stp once nations to be able to leave the euro and still stay in the eu, so this was something that was a disagreement, and they have had other disagreements with merkel in the past. Matt, many of the options that now lie ahead are pretty untested in postwar german history. Lay out some of the options Angela Merkel faces. Matt well, one of the things she could do is go back to the spd, the social democrats, and asked to continue this grand coalition that is currently ruling in germany. According to hobbles lot, the head of the spd has said no way, jose after these talks collapsed. The spd is already saying that is not going to happen, because it turned out so badly for us in the last coalition. So the other two chances she has, the other two options, are forming a minority government, which is something that never happened, may be getting together with the greens and relying on those from the fpd in parliament, or she could germany tosident of call for new elections, although that is also something that has never been done before. It is constitutionally questionable exactly how it would work. But it would take weeks, maybe months, to do that, and it is not something that currency traders would be thrilled about. Manus it certainly is effected in the euro this morning. That miller in berlin. Matt miller in berlin. We have the chief economist at gplus, she joins us on set. Welcome to the show. When you raiders news, how disconcerting is it . To me, merkel is the stall wart of europe, nothing was ever going to go wrong in germany. Here we are a coalition she cant form. Im shocked, are you . The riseellor merkel is of the nationstate fortress and what we have seen around europe out of theoing liberal centrist, globalist, free Market Economics toward the fringes. Of course, the rise of populism, antiestablishment is well documented by now. Back in 2005, it took only 5 of the show, today it is close to 35 . The last time it was at this level was 100 years ago, and we all know what happened. Theres a great deal at stake here, but what i think we should not be forgetting is that this is not an environment that is ultimately driven by security, certainty theres a great deal of discontent with democracies, and there is a very big question mark as to what kind of governance we are going to get at the end of the talks. S is obviously a game of the potential Coalition Partners of chancellor merkel know she has no good options. There is great deal more Bargaining Power than she is probably willing to give. How that impacts other things like global trade, and in particular brexit talks, that is a big question. Anna in the u. K. , the government doesnt have a formal coalition, it has a supply arrangement with its partners. There is a fragility in many areas. In terms of the euro and where this goes, we have written quite a lot in recent weeks about how the euro started to look increasingly like a safe haven currency. Issues around it, to some extent, have been put to bed. Could this threaten to open those up . When of the things that she seems to have fallen out with is very much around the euro and european issues. Absolutely. We are in the year of discontent, and this is not a u. K. Specific issue, it is globalized. It is the failure of these Coalition Talks, that we are talking about the future of governance, an open europe, does mean that this drive toward nationalism, towards protectionism, is very much a european story as well. From that perspective, the markets are probably underpricing Political Risk, and i think we are probably moving beyond the euro. Although 2017 has been very much about the secret ninth double recovery, which has been a big beneficiary. However, we are looking at a growth and big market risks, because Spare Capacity and productivity growth is slowing down. In 2018, it will be a different proposition, which means markets should be more sensitive to political volatility. Manus a couple things. You said the fx prism is where you see the risk. Anna and i started the day talking about the euro. A little too early to call the demise of Angela Merkel, but europe wakes up today, do you think that europe will take those currencies lower, and how much more aggressive can it be in a state of charters for germany . There have been several layers in this framework. In the shortterm it is a political issue, in the longterm structural growth issue. Markets have been trading the euro as a haven because it has been the major yield market. This is a very positive message to be heard at a time when Political Risk is high, but at the same time macroeconomic volatility is low. Lets not forget that this is the time where populations are growing. Theres no region that faces more difficult demography than the eu, china, and japan. Productivity growth is very much challenged. The ecb is peddling liquidity in the wrong direction, so to speak. Debt,e this very large European Growth is under banked, and all of that will start to bear down on the euro. Anna what about the wages story in europe . Mario draghi was mentioning this on friday, euro at 118, and we are getting word that german negotiators didnt have enough common ground, according to the german fdp general secretary commenting on german are notting, that they afraid of going into opposition. They are really setting out their stall after we saw these collapses. On wages, how much is that key . Theres strength of the german economy, the strength of the euro zone economy increasingly evident, yet wages have been sluggish. Absolutely. Inequality, the sense that governments are being reactive rather than proactive, the fact that the hot button issue of the day has not been managed very well, is very much on chancellor merkels radar. All of that is very much behind the social political fragmentation, setting the ground across europe, and of course it has divided traditional and political values. Manus the chief economist and managing director at gplus economics. Anna coverage of macrons failed Coalition Continues on Bloomberg Radio. You can turn in you can tune in to Bloomberg Radio on your mobile device or on dab Digital Radio in the london area. Coming up manus Robert Mugabe has failed to resign in a televised speech. The 93yearold might face impeachment. Anna a race against time. Theresa may is set to increase her black brexit bill offer. More details coming up. This is bloomberg. Manus a live shot of singapore, early afternoon. Msci asiapacific down by. 8 . Is it investors locking in gains with the u. S. Tax wrangle . The msci asia up 20 this year, s p of 15 . There has been quite a dramatic outperformance. Lets set you up for what you should be focused on for the week ahead. Anna on wednesday, the u. K. s brexit chancellor is due to make his budget statement. On thursday, the ecb publishing the account of its october monthly policy meeting. Manus then we round off the week with a postthanksgiving shopping bonanza, black friday. Yes, yes. Anna nervous turkeys. President lets talk about african politics. It has been a plenty of has been a fascinating weekend. Robert mcgaugh they failed to announced his highly anticipated resignation. Manus the dramatic twist means the 93yearold may face immediate impeachment hearings. Lets get to bob wallace, joining us for more. Good to see you this morning. Where does mugabes nonresignation leaves and bubbly . What happened leave zimbabwe . What happens now . He had everyone waiting for resignation, which obviously didnt come. The next thing that happened were impeachment proceedings were likely to begin today, and and will lead to disaster that suppression of when not if he will go. Anna is there a chance he does stay on longer, or is it just a matter of time . From what you said, theres a process, that he will lead to his departure. Well, it is difficult to tell with zimbabwe. Most analysts think his time is more or less up, and that what he did yesterday was just his way of trying to negotiate a better exit for himself, and perhaps sort of secure whatever assets hes got. He did send the speech that he is going to preside over the Party Conference next month, which was very strange, given that the party had only hours before fired him as leader and replaced him with the former vice president. Weve got to see whether he will be able to do that, whether he will be able to oversee that conference as he says he will. They chose the candidate for elections, which will have to which is scheduled to be held sometime next year. It does still look as if mugabes rule is just about up, but when exactly that will calm, we dont know. Manus paul, im going to do something which is classic tv. You can see the chart but we will get the director to pick up this shot, the flow of money into zimbabwean stocks, aggressive because of the economic disc insertion in zimbabwe. Give us a sense of just how battered this economy is, and how maligned it is by inflation, the challenge ahead for who takes over. Mugabe said the economy was going through a rough patch, which is an understatement of note. It has been in freefall for the last year or so, probably 95 of the Adult Population is unemployed. Some 3 million or so zimbabweans have immigrated to the likes of south africa and thin the last decade. The most recent crisis has been a return of inflation, and zimbabwe had hyperinflation about 10 years ago. While it uses the u. S. Dollar, the Financial System is running out of cash, and zimbabwes response to that has been to print what it calls bond notes. They are meant to trade at parity with the u. S. Dollar, but they dont, because zimbabweans dont have any faith in them. Zimbabweans have poured them into the stock market to hedge against inflation, and on paper the stock market is the best performing in the world, until last week it was up about 320 in dollars. While it is obviously a small standards,lobal jpmorgan is there. Anna thank you very much. Bloombergs paul wallace, watching closely so in zimba. Manus britain prepares to boost its cash offer to the European Union. Chancellor Philip Hammond says a brexit breakthrough should be near. It is a big week for the chancellor. He has his budget. Will the cabinet move on the brexit bill . Anna bloomberg daybreak europe, 3 20 in the afternoon in tokyo. We have the dollar against the yen, the dollar is stronger today, the euro is weaker, that is more of the story. We are watching the geopolitical scene. On the subject of japan, we have had the japanese Prime Minister speaking of parliament. He has said that he did not discuss bilateral free trade agreements with trump at the summit. We saw president in the asian region recently, and he was focused very much of the bilater