At 1. 1764. The ifo index was at record highs in august, but we saw that preelection dip to 115. 2 in september. We were expected to stay around those levels but we got a stronger showing than what we had anticipated. If we look at the german ifo conditions, a forecast of 123. 8. And the ifo expectations index, 119. 1 versus a forecast of 107 this all beating expectations. Annette is in frankfurt with instant analysis this is all fairly strong data a day ahead of this crucial meeting from the ecb that would in a way justify tapering, wouldnt it . Of course in looking at the German Economy, tapering is justified if we would set the Monetary Policy for germany, i think we had taper quite for a long time already. Let me run you through what were hearing from the ifo institute. I think all the insecurities surrounding the outcome of the german election has gone people are investing people are optimistic about the future the expectation component is always very important. And that this has risen and about the expectation showing that there is a general belief that germany as an economic haven is intact and that the growth story is intact also given the current Political Uncertainty as we are not knowing where that coalition is not heading to i think the Political Uncertainty coming out of berlin has been digested already with investors. And everybody is confident theyre getting their abilict together the german ifo is also saying the German Economy is powering ahead that weve been seeing that in recent Economic Data from the industry, but also from the Service Sector so germany keeps going strongly. Of course that is giving more sort of tailwind to the likes of bundesbank credit wideman who is still saying there is no need for asset purchases next year, but the hawks are in the minority camp within the ecb the question is whether we get an end date tomorrow to the Asset Purchase Program or not. This is the big division in the governing council. The doves, of course, want to have more flexibility, saying we dont need an end date we should keep it flexible the hawks are saying asset purchase is no longer needed we need a clear schedule to phase them out with that, back to you thank you very much for that. Seems as though 270 billion euros, thats the magic number to watch for tomorrow in terms of the continuation of the Asset Purchase Program lets look at the 4 x markets. As i told you before euro dol r euro dollar, still largely unchanged. Not a huge reaction, 117. 60. Investors not wanting to take on major positions ahead of that ecb meeting tomorrow i should tell you the positions in the euro dollar overall is still long close to record longs. When we look at what cable is doing, thats pound versus the u. S. Dollar, 131. 24 it has come under pressure given the comments coming from the deputy boe governor he has said that, hey, we might not need a rate hike on november 2nd. And keep in mind we get the Third Quarter gdp data tomorrow. Keep an eye on the dollar today. Its unchanged against the yen still trading close to threemonth highs ahead of the durable goods order. Again, there was discussion yesterday and reports out saying republican senators favor john taylor who would be a hawk quick look at european markets this is the picture. Slightly higher. Xetra dax up by 0. 1 cac 40 up by 0. 2 the ibex 35 is out, also doing well after a couple sessions of underperformance given the spat between barcelona and madrid the ftse mib is off by. 2 all eyes off bnp when it comes to the sectors, this is the chemicals, retail, Household Goods outperforming. Base basic banco monte dei paschi that resumed lending shares were suspended last december after failing to get capital from investors and having to seek support from the Italian Government shares off 67 thats the impact of the relisting. And kering shares are trading at the top of the stoxx 600 after the company beat Third QuarterSales Forecast boosted by Strong Demand for guccis products and a pick up in Chinese Consumer appetite like for like sales were up 28 , sales at gucci grew almost 50 the Fashion Group warned about negative currency effects. Shares in lufthansa, they are under pressure today after the company opted to stick to its fullyear forecast despite posting record results for the last nine months the carrier reported a 32 rise in Third Quarter operating profit and improved Ticket Pricing trends, but net profit fell 17 shares also under pressure because were seeing some degree of profit taking this is a stock that has doubled over the last year the last 12 months, up 127 . Lets move on and talk about dassault the Company Announced operating income 10660 mi60 million eurose Third Quarter. Speaking to cnbc, the ceo of dassault systems said fx movements affected earnings per share. If you look at all currencies, to the euro, there is a significant negative effect as a matter of fact, today we take a new base for the Fourth Quarter related to taking into account the evolution of currency on the effect of the currency, it has a direct effect on the eps. The growth on the top line stayed the same. But there is an impact, and thats what you can see this quarter. Lloyds bank is trading in the red after it posted profits for the first nine months of the year which missed expectations shares off 1. 2 . The Tier One Capital ratio stands at over 17 lloyds said it had no new provisions for ppi and other legal issues, but restructuring costs increased to 469 Million Pounds novozymes upped its fullyear outlook after better sales and profits in the Third Quarter. Earlier we spoke with the ceo of novozymes and asked about the companys performance growth we took about 200 people out in january to be able to invest more in the emerging markets it was more transformation we needed to make i think some of the Good Progress youre seeing in our business is exactly that we pick up momentum in the emerging markets but underlying, i think bio energy is doing better than we had expected our food and Beverage Business turned out to be a solid propeller of growth, and actually does better than we had expected by the beginning of the year lets round things up with marks and spencer. Joe jenkins has resigned just weeks before the busy Holiday Season the resignation is expected to be a blow to the ceo who took over only a year ago email the show, let us know what you think of the earnings season so far. The address is streetsignseurope cnbc. Com and follow us on twitter at streetsignseurope cnbc and tweet me at carolincnbc if you go on my twitter page, you will see what i just posted. Today is world pasta day i tweeted a good recipe. I dont know if you agree with that lets all celebrate world pasta day. Always a Good Opportunity to do that on a programming note, the latest episode of the brave ones airs tonight on cnbc at 23 00 cet. It features the t mobile ceo and traces its unusual journey from gym teacher to telco executive i told my father, theres no way i am going to end up with those white button down shirts to be credit, he let me go i wanted to be an olympic athlete, for some strange period i wanted to be a podiatrist. I think maybe because in my hometown the guy that had the brandnew corvette was a podiatrist im 100 accessible. I have almost 5 million followers. My daughter would say i want to talk to so and so. I said watch this. I will text snoop dogg she will say are you kidding me . Why would he text you . Come on, they all follow me on twitter. I do a slow cooker sunday show on Facebook Live i do it every week no matter where i am its natural i make mistakes. The camera is the wrong way. I have tons of companies that want to collaborate, chefs that want to collaborate. This is a valuable tool but a competitive advantage, but i think its worth billions. I seen a mean karaoke. My goto song get it louis armstrong. I can do it full scream. I dont shy away from anything size and magnitude of companies that i take on, it takes a lot of courage my business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. Personalize it with beautiful images. And. Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. Can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone welcome back to the show lets revisit the efo data that came out it rose to a record high the month of october after falling two months in a row. The Ifo Economic Institute saying that its Business Climate index rose to 116. 7 from an upwardly revised reading of 115. 3 in the month of september. That was better than expected. Putting a slight bid into the euro dollar. Changing hands the 1. 1764. Joining us is the president of the ifo institute, clemen clemens fuest. It seems like the German Economy is firing on all cylinders what you are seeing . The German Economy is powering ahead two strong sectors in particular, its manufacturing, which is very important, obviously. We see very Good Business data from capital goods producers, suggesting that investment is coming on. Then we have a strong reading in retail as well that sector has been declining in havenven recent months now its getting a lot better, so that suggests there is increasing domestic demand overall the picture is really bright i want to pick up on the auto sector thats one of the few sectors that didnt do well in the month of september, even though the rest of the German Economy is still resilient to the euro strength why is it that you think the car sector has come back is it because of news flow around the Diesel Scandal . Collusion scandal has ebbed . What do you think it is . Maybe consumers paused and thought about what they should do what kind of car should they buy . Now it seems they got they made up their minds and got back into business here so they they have taken the decision and they seem to be buying again, i would say. Thats whats going on here. Are you personally surprised . Are your team members surprised there is not this sort of uncertainty factor coming from the Coalition Talks that are happening between the different parties in germany obviously we probably wont have a working coalition until christmas or until later in december are you not surprised the German Economy is so resilient, so immune to that not really. In principle, the fact that the liberals are back in government or seem to be back in government is good news for the economy and then the Coalition Talks have started fairly well so i think there is a feeling that there will be a coalition relatively soon. And all of that seems to be reassuring for companies, for consumers. Given that your numbers are strong, obviously that makes a great case for the tapering announcement by the ecb tomorrow that was set in stone any ways that was always going to happen tomorrow when it comes to the pmis, weve seen a little bit of slowing does it indicate to you maybe weve seen the peak over the summer but despite that were still Strong Enough for the ecb to go ahead with tapering . The ecb needs to look at the eurozone as a whole, not just germany, but i think were Strong Enough to start the tapering it doesnt mean a complete turnaround it doesnt mean putting on the brakes. Just taking the foot off the gas a little bit so i think its inevitable that tapering starts. The question is will they announce financial date for the purchases . I think thats not going to happen but suddenly theres hardly a way around starting the tapering i know youre not a 4x analyst, im curious what you think the pricing will be. If we get that tapering tomorrow do you think the euro wont react too much because its baked in the cake . Do you think stronger euro would actually hamper some export growth so far it hasnt really done that in germany. It hasnt hampered the export growth the strong euro is more a symptom of Strong Demand for european products, and rather than the euro stopping the economy. We should be aware, that were still below purchasing policy parity to the urgs dolla. S. Dolr i would say some type of taping announcement should be priced in, and if it was i think the euro will only move if its significantly stronger than most people expect. So, it all seems to go swimmingly for the German Economy. It all seems to go well for the rest of the eurozone yes, catalonia was a hiccup, but we didnt see a major contagion effect when it came to equities. A slight dip maybe in the euro what is in your view the biggest risk to the german and by extension the eurozone economy i think there are basically two risks. One is that the Global Economy may not go on running as smoothly there are there are the well known risks in china high levels of debt. The chinese economy is important for the world economy. There is the issue of italy mostly maybe more than spain. The catalonian crisis may have an impact on the spanish economy. So, Southern Europe is recovering, but not in great shape. Italy in particular. I think there is the greatest risk thank you very much for that perspective. Appreciate it. Clemens fuest. Staying in germany, three top investors have called for the ceo of kostin kenigna. A Supervisory Board meeting is set for thursday, but members say they will wait until the investigation is complete before deciding on his future lets get back to the earnings parade. Norsk hydro reported earnings below forecast the stock 1. 8 to the down side. The aluminum maker came in expectations of 2. 56 billion it lifted its Global Demand estimate and expects positive Market Sentiment for aluminum mainly because of chinese production cuts. Joining us on the phone is the cfo of norsk hydro looking at the share price reaction, investors are disappointed how do you feel about the numbers . I think we are overall satisfied. There is increasing raw material costs on the offstream side of our business the cost savings plan is officially behind schedule you are pointing to challenges in the Raw Materials program how do you try to get that under control again . We need to split that in two. First and foremost, when it comes to the target for 2019, we are confident and i believe were on track to meet that target that being said, we are somewhat behind within the raw products division, as you point to. That has to do with some operational issues we had in one of our core plants in germany and delayed ramp up of our new investments. The key focus is to fix that, get that back on track youre confident you will get it back on track investors shouldnt be worried we will get this back on track. Im confident on that. But there is a slight delay compared to original plans and targets. Lets talk about the greater outlook for the aluminum market. It seems were balanced, maybe even going into deficit next year you say this is pretty much driven by china. The china moves, the slowdown in local production, is that a sustainable move do you think its really just a tempered move because were going into the winter heating season its always difficult to guess what precisely will happen into 2018. What weve seen is the chinese officials have taken fairly forceful actions this time around both closing down illegal capacities, plants built without appropriate permits, but also from an environmental perspective taking out polluting parts of the industry. That helps the Global Supply and demand balance do you think we will go into a deficit in 2018 . Do you still believe that it will be a mainly balanced market we say largely balanced for 2017 as well as 2018 however, if you dive into the details, we estimate the short deficit in 2017 that should grow when we look into the details for 2018 so we talked a lot about the supply side of the equation. Lets talk about demand. You lifted your Global Demand estimate for 2017 to 5 to 6 from previously 4 to 6 where is that demand coming from where are you seeing the strongest growth we still see good growth within the Building Construction sector in china. But more interestingly in the markets where we are, there is strong growth in terms of substitution for automotive and transportation to satisfy the lightweight cars and other types of transportation. That is a trend that is there to stay and will continue into the years to come. Eivind, thank you very much for your time. In other news, just wanted to draw your attention to the fact that david davis, the uk brexit secretary is addressing the house of Commons C