On sundays debate. Taylor Hillary Clinton and donald trump were in the ring again at Washington University in st. Louis for the second president ial debate of 2016, and the gloves came off almost immediately. Trump reeling from last weeks release from a 2005 tape in which the republican nominee discussed women in degrading terms. Clintonsto make bill 1990s scandals part of the conversation. He also discussed Hillary Clintons use of an email server while secretary of state. Mr. Trump people, their lives have been destroyed for doing 1 5 of what you have done, and you ought to be ashamed of yourself. Mrs. Clinton everything he just said is absolutely false, but i am not surprised. It is awfully good that someone with the temperament of donald trump is not in charge of the law in our country. Mr. Trump because you would be in jail. Moderator secretary clinton . Debate,prior to the trump appeared with a trio of women who previously accused bill clinton of sexual misconduct. Helicopters are carrying food and medicine to southwestern haiti nearly a week after an assault by hurricane matthew, but desperation is growing in cutoff areas where Health Health has not arrived. Power is out. Food and water are scarce. There are words that gunman have hijacked six convoys. Preparingorces are for the most significant role in iraq in years as troops prepare for an attack on the city of muscle. Mosul. U. S. Special forces are already taking part in rates of the surrounding area. In iraq. 6000 troops after the 2011 withdrawal, there were almost none. President hollande has said he has not decided whether he will meet with Vladimir Putin in paris six days from now. The longest says russian action in syria is unacceptable, and the people of aleppo are suffering were crimes that will be the subject of an internal investigation. Global news powered by more than 2600 journalists in more than 120 countries. I am taylor riggs. This is bloomberg. Tom this is commodities right now. Through the data all of this off mexican peso and the debate reaction. Today. O is a big story a quiet story. Oil churning near its 50 level. 14. 18 off of the weakness last week. Two year yield was at 0. 85. We come in two basis points over the last several days. Sterling was at 1. 23 when i walked in the door. Go back to the peso chart. Francine hassett. 18. 94 is a new, big, stronger peso off the festivities of the weekend. Francine it certainly is. I know you were going to talk about peso, but i did want to have it just in case. At the moment, the biggest proxy for how you trade the u. S. President ial election. A little bit subdued. I want to look at Deutsche Bank. , it john cryan was in d. C. Was unclear if he was meeting with the doj, we still do not have anything on that fine. Uped index, you can see, 0. 70. This is dollar peso, a debate indicator. Are going, mexican peso . It is the adjacency and export dynamics. The red line indicates a trump surge coming out of the middle of the summer. We roll over the first debate, the blue circle, the next debate last night, and we went down this morning. That is a stronger peso. The devils are in the chart, francine. Im Francine Francine had a mexican peso chart. You have stolen my thunder. It is right you are showing mexican peso. I see inflation in japan. This is the japan 10 year zero coupon inflation swap. We spoke to governor kuroda. The first circle over there, right on my right, is when abe unveiled the fiscal stimulus. The second is when the Bond Buying Program is extended. Since we had negative rates, this is going back. I imagine if you look at the forward slots for the u. S. , it would be a similar picture. Tom this is important. Peso, the question is, do we get back to this . Do we get back to this big middle ground . Mark mobius will join us in the next hour. Getting back to that is a big deal this morning, the idea of dropping back to it. Francine . To benchmark. Y it is similar to your chart. We have mexican peso here. We charted against the popularity of donald trump. You can see that clearly it is correlated to mr. Trump, how he is doing in the polls. A clear impact on the mexican peso. Tom i would emphasize for the global audience, what we are doing in the u. S. Is aggregating the polls. We really will not see that for a day or two. Kevin cirilli does not need a cold to know what need a poll to know what happened. He is torn has from st. Louis. The end of the debate, they did not shake hands. But the body language on that debate, the end of the with the microphones off, is totally different than the first debate. How uncomfortable was it . Kevin this is one of the nastiest debate in american history. We will be talking about this for decades to come. I put this question to top aides in trumps political orbit. The word they used to describe the Clinton Campaign was rattled. When i put this to the clinton surrogates in the spin room, they reiterated clintons claims they feel donald trump is unfit to be president and his performance in st. Louis was an illustration of that. Tom kevin, over the weekend, we saw a Republican Party shaken to its foundations. I put out a photo of the gentleman who explained to Richard Nixon he needed to resign. Help me with the washington Republican Leadership this morning. Mr. Mcconnell, mr. Ryan, and the others how do they move or work is to mark move forward . Kevin it will be fascinating to see how that plays out. During thatmp tower memorable display, to say the least. I have been covering his campaign for more than a year. Over the weekend stands out as perhaps the most memorable of the campaign moments. So there is a clear, clear separation between the Trump Campaign and the Republican Party. There was many calls that governor pence would actually lead the top of the ticket. Hearing inside of his political orbit as well as from the rnc officials indicates that trump and mike pence will continue onward, but they are embattled. This is a Republican Party without a leader. This is a Republican Party at a crossroads. This is a Republican Party that is now in a significant place of danger of keeping control of the senate, heading into the elections. Francine are there more tapes . Are there more tapes . I know it is the milliondollar question and we do not know. But if this is an outtake, i do not know if there is how much of a crossroads there is between tapes like this being leaked out and what his Vice President will do, Vice President ial candidate. The Trump Campaign is in full on nuclear mode. Just hours before the start of the president ial debate, we saw him appearing with several of the women who have accused bill clinton of lewd conduct, to say the least. This is a campaign that has had its back up against the wall. They are coming out swinging. They are essentially saying, bring it on. They are pushing back hard against all criticism not only from the democrats, but also from within their own party. They are under no they are not making any questions, if you will, that they are soldiering onward and soldiering onward, quite frankly, alone. Francine thank you. Go get some sleep. Actually, we need you in the next hour. Then get some sleep. Coming up next, the bank of japan. About, we were talking negative rates, the 10 year yield, and inflation. Will he have to change the inflation forecast . This is bloomberg. Francine i am printing not quite in london with tom keene in the york. Lets get straight to the Bloomberg Business flash. Taylor another blow for Samsung Electronics as it tries to move to the crisis over exploding smartphone batteries. A person familiar with the matter says the company is temporarily halting production on its note 7 from as Wireless Companies in the u. S. Have stopped selling the note seven after reports that replacement devices were overheating and bursting into flames. Investmentloys company is increasing its stake in vivendi to more than 20 as the billionaire titans his grip over the tightens his grip over the media company. It has double Voting Rights attached to the shares it is acquiring. Francine thank you so much, taylor riggs. Lets turn to japan. Coronadown with rookie at the imf annual meeting in washington, d. C. He said the boj will continue easing in the coming months. Kuroda the market tapering tapering, as you know is a way Monetary Policy from a way of reducing, stepbystep, the amount of asset purchase. But as i said, we do not [laughter] in 10 to exit from expansionary Monetary Policy at this stage. We will continue, or even strengthen our monetary easing in the coming months and years. And for the time being, as i said, ¥18 trillion of this would continue. It could, of course, beyond go beyond that, or go less. The most important is to achieve the eu achieve the cost control. That is the most important, because by achieving the canopriate level, we maintain and even strengthen stimulating impact over Monetary Policy. Francine that was governor haruhiko kuroda. We get more from an Investment Management chief investment officer. Great to have you on the program. What i was try to figure out and asking governor kuroda, they are jgbs. Jbbs if this start selling, that would be considered tapering. That is what the market is trying to test. That is right. That is clearly the expectation to ensure there is this positive slope to the yield curve. Hirelks about wanting to inflation. The textbook says that is what you need to get people to spend more. People with fixed assets often they put up savings rate instead of spending more. Japans policy focus is not going to work. Governor kuroda, i asked him several times, is this the one . He has been tweaking. James the entire policy agenda they have been buying equities strongly, and yet the equity market is down, not up. It is clear simply throwing money at challenges, when there are deepseated underlying no pelletc problems, for accepting inward migration inflation is up 16 , but the population that works is down 14 over the last decade. No surprise there is, in effect, no Economic Growth. I suspect very little impact on the growth for the next decade. See any indication that any central bank has successfully is successfully reflating . James i see signs consumers are beginning to spend more money in europe. I certainly see strength in the u. S. Economy. And i worry less about the inflation observable in the u. S. Economy. Jobs numbers, relative economic strength, it , this year andme next year. That is reliable Economic Growth. Observing at the moment as secular stagflation rather than a future recession. Companiesat backdrop, have continued with strong returns to shareholders. Tom i want to look at japanese yen. I call this the kuroda chart. It is good to see mr. Kuroda with ms. Blackwell ms. Lacqua. Yen cannotion is the break through the little blue line at the bottom, the 100 level. As i look at this, it is real simple. To go down and tests that area of the market . Are we going to go down and tests that area of the market . James driving the yen, i would observations. Nonjapanese investors have been selling japanese assets. We should have seen the yen falling. However, what we have seen a significant repatriation of the yen by domestic players. In this environment, we want to have more yen. I do not think mr. Kurodas policies are going to reduce the pressure. It, the morepush the yen is going to be purchased by his own people. Francine why . Testing . James absolutely not. This is a logical response been a climate of poor Interest Rates were you are up in your savings bigger nestng a egg, because you are worried about how you are going to pay for the next 20 years. Francine coming up, we hear from the Swiss National bank president. We spoke about going further into negative rates, swiss franc as well. Francine i am Francine Lacqua in london. Tom keene is in new york. We are talking energy, speaking on the future of the Energy Business here in london. Joining us is the ceo of enel. Think of for joining us. We want to talk about utilization, the future of energy, and investing in europe. Israll, the Central Banks it more difficult for you to do financing in a qe environment . Add think if you can something, it is may be easier. Money is available. The issue is projects and what to do with them. Francine you are talking about digitization. Did that change the name of the game for a lot of utilities . Francesco uin this division is changing in a big way. That is because it is being digitized. Grid thed to the grid is behaving a different way, and it is great. Mean yourdoes that valued differently . Is this like the year 2000 caps off saying, we are actually a tech company . Francesco we are becoming a big platform for many things, not only energy. There is a lot of additional value. Francine tom and i were covering the Imf World Bank meeting. It was clear there was a concern about who you speak to in europe, and that europe has been through such turmoil that it is difficult for an american investor to say, i want to have 500 million in europe. Francesco europe needs to unify the energy markets. Complex. E are too we need to make ourselves more understandable from outside. Tom i look at your companys share performance. You have a very large dividend of 4 , which by u. S. Standards is substantial. Is your dividend to high . Are you distribute them too much cash flow to shareholders . Francesco it depends from a point of view. For us, i think the right evident. We are not highestdivision company in the european area today. Actually, we are in the middle of the pack. But what we do we increase the robustness of our cash flow ratio, so we have a lot of cash flow at the same level of a beta ebita. The growth is an endless question. We do not think we are disturbing too much dividends at the moment when compared to others in your. In europe. Tom this is the shares in euros. The basic idea is regression. I am doing this on the bloomberg right here at the desk. I am concerned about the total return over a good 15 or 20 years. Clearly, you are turning it around, coming off the lows of 2013. How are you going to advance the share price . I think it is a combination of growth and robustness of cash flow. Successs been the major of these companies for too long, and i think it is time to turn to something more concrete. Make it more cash generation rich, and use that cash for growing. That is the bet. It depends on the opportunities of growth we are able to find around the world. That is why we are betting on digital transportation transformation. Thank you so much. Coming up, we speak about emerging markets and the fed. Tom new york city was focused at midtown. I walked across mr. Trumps emporium in midtown. A stir. Ere, creating there is midtown new york, mr. Trump midtown new york. I am tom keene. Francine lacqua is in london. Now we go to first would news. Taylor Hillary Clinton and donald trump had their second debate as night. Last weeksg from release of a taped in which he was discussing women include terms offered another apology behavior. Is not only it women and not only this video that raises questions about his fitness to be president. He has also targeted immigrants, africanamericans, latinos, people with disabilities, pows, muslims, and so many others. This is who donald trump is. The question for us, the question our country must answer, is this is not who we are. Mark c. prior to the debate, trump made an appearance on facebook of the women that accused him of sexual misconduct. The National Weather center says are matthews winds diminishing along the coast. Last night, matthew was still packing winds of 70 miles per hour. Matthew has killed at least 17 people in the u. S. , nearly half of them in North Carolina. Or for an outreach this week for theresa may. The conservative party leader is listing denmark and the netherlands today. Thatcomes after concerned alienating eu risks partners. U. K. Businesses have adopted since theous outlook brexits. That is according to the chamber of commerce. The u. K. Lls on government to take steps to boost confidence. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Francine thank you so much. I sat down with bank of japan governor at the annual meeting in d. C. Boj maythe do boj delay hitting their target. The economy is actually accelerating growth. How about inflation tackle you the goals of inflation expectations, the current rate of inflation is around zero or slight negative. In may take flight unity more months to reach the 2 inflation rate. We have to carefully study we relevant statistics for review the focus. Changechange, we may not. At this stage, one thing is quite sure. Economic growth is likely to accelerate next year. In alets bring strategist. Thank you so much for joining us. Them on tried to push what is the Comfort Level on the yen. When do they intervene . I picked the market is looking at the 9095 level. Definitely, previous actions suggest that is the Comfort Level. Francine the Comfort Level of them intervening . It is unclear if at the end of the date it will actually work. Dollar looking at yen at 95. Rate differentials is a key reason why they had not been the yen. Ead th rate francine does it make the job easier . I think a stronger u. S. Economy is good news for everybody and therefore, i wo