Company is still far from overcoming this. Welcome. Happy monday. Back and locals volatility is unraveling. The volatility is up and they finally broke out of above or below and this changed with the s p 500 utility index. This is a correlation we are keeping an ion. And this negative near is a huge flashing signal. The dollar and commodities are down. The question is if it is a temporary movement or baker. We have seen the volatility increase and a lot of people are concerned about this. What take a look and see is happening with global stocks. And the indexis we arer for the u. S. And and wehat the yield is saw the increase on friday and manus was talking about the correlation breaking down and we and a 10ates go higher year yield go above zero. You can see the stronger dollar uan was south korean you down and north korea was doing nuclear tests. Andant to bring up crude producers increased the drilling risk incan see some this market. You. Ank clinton has canceled a trip to california. The campaign disclosed she was suffering from pneumonia. Stumble and to needed help moving to the vehicle. The team is evaluating the rest of the week. Consideration as there was a dismissing of an idea of horse johnsons support. There was a further indication of Division Within the government. Theresa may is a driver. Clear that, she is focused. Are all completing preparations for a nuclear test. This and it comes korea finished their test on friday. Companies are still far from overcoming the omissions crisis. It remains to be seen if the euros earmarked will be defined. Twitter spoke to Caroline Hyde. To producerying solutions for the customers and regainors and we have to the trust. Doneed to work hard and we work hard. Were making progress and overcoming the crisis. Slumpedng shares have usersgulators warned the of the premium smartphone to stop charging them. They have called passengers to stop using the devices. Dozen have batteries that caught fire or exploded. We are powered by more than 2600 journalists and analysts. You can find more stories on the bloomberg app. This is bloomberg. Thank you very much. Tanding by is david the equity markets are playing part of the catching up game on friday. Run us through the big moves. We are seeing the extension of what you are talking about and you can look at asia. Was. Not as easy as it have a look at the biggest hits. Were talking about new zealand and hong kong. You look at the scores of the moves and we are talking deeper under this hood and they are out of character. Were looking at three standard deviations for this market and the last time we saw these moves was back in 2011 and we started having a score of 4. 6 and we have not seen moves this fake for this market. Kong andstory in hong there was not a single stock on the index. Up and, apart from heavy,he volumes are heavy than usual. Have the index and that will do it for that market. , it is about the money reflective of the risk aversion going on. Thank you so much. The Federal Reserve governor will be the last to speak ahead of the quiet time frame. Some think he will flipflop and that a tightening is coming. In the meanwhile, there have been bets on an Interest Rate hike. Overheat, ifould policymakers wait too long. Joining me now is the head of macro strategy. It is great to have you on this program. We were talking about Monetary Policy coming. Is this the markets playing catchup. You had a time of compressed volatility in the markets have not really had the new stimulus to deal with and the question is if this is a change of policy and are we at the end of fiscal policy taking over the reins. There are fiscal implications and a lot of this has to do with notsioning and does necessarily have to do with a fundamental shift in the outlook. Policymakers believe they have the levers to pull and there is a Seismic Shift towards fiscal and i doat is going on not think it is a catalyst for a huge change. What you think the government bonds will be . If markets are complacent, will they be you evaluating what is going on in the other yield curves . I think about the fed story. I think this has more to do they haveurves and been globally trading for some time and the bank of japan is thinking about a form of the flattening and they are looking at a normalization with carryover implications in the u. S. , with higher rates at the same time. Disentangle at to policy shift and if markets are getting a shock after a time. You talk about people getting bet withand this is a and we are positions anding at the fed meeting signals from different policymakers with the market flipflopping. Ny she is towards the dovish end of the spectrum. Services in the manufacturing and there is no particular reason to be shifting. Also, with so many people meeting, theis last thing i want to do is throw the grenade over the trenches. This could stop the moving. Tshirts that are and this tracks and there is a chart that we have prepared for you. Really throw a grenade into the bond market . What would you expect next year . Way. Ink of this in another are we in an immensely inflationfree world . The growth could write remain anemic. We will not get a shock and all fiscal stimulus. This will be low. The markets have priced in a clinton victory. Will this shake the markets . It will make people nervous. Newswill react to this because they have on perceptions. Who knows . Anything to do with this ranking that increases a potential for that is on the mind of the markets. The noise andut you look at the core fundamentals of the economic scenarios, growth is low and will stay low. The valuation of bonds could be relatively rich and we are not talking about the start of a huge bear market. Will it go to this level . This is where we are starting. Ok. Lets get you up to speed with the week ahead. What do you expect in the agenda . Appearance scheduled before the quiet time frame tomorrow . A session gets underway in new york. On wednesday, the state of the Union Address given to the parliament. Ymer we will round the week off with a gathering of leaders. Coming up on countdown, eight different issue, after spending on a scandal. Volkswagen is looking to clawback some of the money discussed. A Stock Exchange today. Is the unit set for a choppy opening . The same old problems. Weighing on the crude prices again. We will get into this conversation. This is bloomberg. London. 6 18 in lets get across to sherry. Good day to you. Andhares have slumped again have seen the biggest fall since 2008. Said that the aviation authorities around the usingcould have to stop these devices. These phones had batteries they caught fire. The images on the camera. Convincing critics that the features are safe. Morningss that the could be ignored. There was an accident using the autopilot technology. The executive board says that they will combine operations for carmaker ishat the changing the electric car strategy to rival tesla. Comment. Ned to this is you are Bloomberg Business flash. We have breaking news for you. They are pushing ahead with the this in the see Fourth Quarter with the new and existing shares being placed simultaneously and staying with the energy and funding it for businesses. It will be interesting to see how much is with the renewable business. There is speculation that they will sell 10 of the business this is how they see this before the emissions cheating scandal. Caroline hyde was told that. Here were profitability issues evenat is skepticism and without the crisis. Had profitability issues, even without the diesel and we are honest about the have a lots and we of room for improvement in and toal to free up this free up the funds for the future. For more, were joined i Caroline Hyde. He admitted that the shortcomings with their and talked about investing in the future. How are they planning on getting out of the crisis . And its a balancing act was spoken about candidly. He tried to say he was far from perfect and he wanted this to be a force for good and they had to intoe discipline and move electric vehicles and ridesharing with the edge and a andof a perfect storm settling in the united states. At the same time, they have to be aggressive and they are usually exposed to slow markets in latin america. They have now been locked out of the markets and had to reimpose this and came back. Have a listen. Will looking at the extended time in the picture. And a plan and we have a strong underlying and wes supporting us have strong fundamentals. It will certainly come back to the Capital Markets and is working for us to have the and it isy available paying off. Friday saw the first criminal enough . Nd will this be candidly, they said they were not sure and they cannot be precise until the cover the entire amount they have to pay out. Usersettled and european are under some stress. They have devices in cars and he did hit back on the desires with the compensation for the european car owners. They have not seen a lot of paint everyu cannot customer with the same brush. That is speculation as to whether this will be enough to move forward and they need to start making some great cars then to bring forth discipline. Great. Charlie, you see Something Like this come into the market and are you concerned . Wallere has been a huge hitting the market and the reality is that the investment requires you to be cautious because the company sounds like it is having issues and it sounds like they have a lot of wood to chop. Terribly infused in the debt. Take a closer look at the decision today and this is bloomberg. Shot here a beautiful and i am afraid that we are seeing stocks move lower in the dollaryen looks weaker. Daybreak and the top Global Equity markets and u. S. Futures are indicated to be down. Asia is playing a catchup game. This is all because of a concern that Central Banks around the thed will be questioning benefits of reduced Monetary Policy. Markets andd in the the relationship is with bond and equity markets. At a speechook later in this will be the last scheduled appearance before the premeeting quiet time. There will be mixed signals at a Rate Decision from the fed. This is the Worlds Largest hedge fund manager. Protected. 2 . 5 billion and there is a new strategy last and inflows are a rare and hedge funds have had a good battering this year. Utility listing and the decision to spin off the fossil fuel business is in in theo the shift shift in wind and solar. Tell us more about the timing of this and what this will focus on. The areaill focus on and the reason they are doing they are lesse andcted by the commodities they hope to go forward with less impact from oil prices. Tell me about what is ahead and what will drive the earnings this morning. What will drive it . They will be primarily driven markets with oil and gas prices being important. These are the main areas. Important why this is and what it says about the industry. Atthey will watch closely the valuation and whether it around 10 billion or what the market thinks it will generally trade at. It will probably have an impairment, at some point. It will be a great day in the markets. Thank you. The index took the biggest stocks. E u. S. Chilcote has the charts. You mentioned the pacific and the biggest loss today since the brexit. Down in a chart that is the equities are generally down with the hong kong stocks down gotyou see comments that we in there is concern that Central Banks are generally cooling on monetary easing, spooking the markets. Down. Tures are watch the equity markets. Well. As you can see yields rising and it. 5 . Y andyield has been rising there was a selling off today. On germane yields bonds in 25 minutes. Oilnt to talk about performing right now and this is with a targetyear in crude since the beginning of june. The rates have been rising in the oil prices have not really been where you think they should go. Part of the concern is a resilience in shale, even with oil prices. Happens, all what the oil versus will get together cap on oil and markets. S who the thank you. Lets get you up to speed. And theyeing declines are adding to the momentum with and and ears later today there is the warning that the and thecould run to hot volatility is back with the nasdaq futures potentially dropping and momentum gathering with equity futures. Take a look at this and you andsee the futures are down you can look at the terminals lower. The markets open really, you are seeing losses across the board. Charlie is still with us. It will be interesting to see who breaks out of this and the stocks selling off. To earlier alluded you that this has something to do with market aboutics and it tells you a nebulous concept of Central Banks that is sort that support asset prices. Are we about to abandon the rewrite on Central Banks . We have a comprehensive view coming in the science are that they will stick with this policy to makek in the concept this happen as soon as possible may have policymakers learning that this is not a sprint and they will not necessarily and to reinflate right here may find it takes longer to learn about this process. You have Central Banks this only takes a minimum of Market Movement to overreact with the bonds held by the bank. More. Ould be amplified liquidity has been shockingly had and that flash crash we on friday will not help much and it will make people cautious. The approach here is the think about what we think the world policymakersdo and may be shifting with the longterm and the expectations are not really going to change. Ith violations and investment now. Ay with us the work permits are under consideration as a way of controlling migration. Idea ofismissed the changingor the Group Divisions in the government. Cabinet isns the pretty united. Settling in the backseat. Clear they are in the same direction. So, i found that you had Boris Johnson spiking up the hard scenario. You think we will go through volatility with somebody holding up a flag . Yeshe answer is probably and the reality is that the big question for the u. K. Is the type of brexit we will cap. Or will it have open access . Negotiations need to be carried out in there could be more of a harsh shock to the economy. We do not have guidance and it is clear that the softer brexit would be better, from the economic hit. Necessarilyt is not this. Le, depending on i want to ask you about the signaling ah yields they had chance and outlook inte with an the boe. There is a temporal question and, if there is a core action a a correction, we will see policy. Now, the reality is that whenever will come will take years and not months. Soon. Look to be too things are not as bad as they think. Even we have not you couldthreats and see a correction. Andt could be five years stephen was here from hsbc. Do you expect zero risks . I do not expect any more. A it may be a case for correction. It is the start of a big move. A oneword answer on the longerterm. The selloff. S of charlie stays with us all stop with us. Treasuries and middlemen turning their backs on the market. We will take a look. How are they weathering the brexit . Plus, secretary says shes looking at the work permit system. This is bloomberg. 6 48 in london. It is new york you are seeing their. It is a point lower and the dollar index remained unchanged. The volkswagen cfos is the company is far from overcoming the crisis. They spoke exclusively to Caroline Hyde. They had to regain the trust. We work are hard. It is a long way to go. Samsung shares have slumped again. Were called on people to stop using the devices during flight. Batteriesn phones had that caught fire or exploded. Anewater associates by thelows reported Financial Times are a rare exception in an industry that has suffered from poor performance and client reduction. Out aftero move , the vacancy rates in paris, frankfurt, and amsterdam are the lowest in a decade. 90 of the investment banks are considering dispersing employees across european cities. That is your Bloomberg Business flash. The bond trading club isnt what it used to be. This demonstrates that it was where the joining the markets middle man. For people familiar with the event, spokespeople declined to comment. We are joined now and can you explain what went on . And arduouslarge process. Crunch, theyto the decided not to go through with in banks. They are looking to make the markets of bonds and it has less to do with increased costs and bigger andg the role less appealing. Lets bring in the conversation. See with liquidity . What do you notice . The firstuidity is and they are focusing on risk assets. Act and less willing to the ability for us to access harder and theis is gettingtransact harder and harder. Problems withse this is actioning and big problem and it serves no ones interest. The lack of liquidity creates there ise pricing and no investor. Paul, you had a great quote at the end of your story and said the riskreward was not worth it. You see it elsewhere. There was the dropping out of there ismarkets and credit suisse. As charlie was saying, there is cause for concern. That is a a moment oneoff. Think this tells us anything about the bigger trends in the u. S. . Seen this since the and you can look across the figures and you can see this in the markets. Overseas Central Banks . We will go direct to the fed be under no illusions and the is a lot of debt to absorb in the u. S. Market. It is only when you get to places like japan that you have dealers for the primary are necessary. Thank you very much. The Federal Reserve is in focus. This is bloomberg. Manus will the governor turned hawkish in it, amid comments . The usa today futures are pointing to a lower opening for market. Hillary clinton cancels her threeday trip to california after the president ial nominees campaign discloses she is suffering from pneumonia. The south korean firm urging users to turn off their smartphones immediately over battery fire risk. Crisis. Esult is a lot of success. The cfo tells bloomberg in an exclusive interview that the company is far from overcoming the emissions cheating crisis. Manus welcome to countdown. Im ma