The december deadline looms large and Hurricane Irma sweeps over the caribbean and batters puerto rico on its way toward florida. How much will the category five storm cost miami . Miamiin to evaluate as evacuates. Matt we are less than half an hour from the european open. It is 2 30 a. M. In the morning in new york, 8 30 a. M. In frankfurt. Take a look at where the futures are trading. You have the stoxx 50 futures up one third of 1 and the continental futures are doing better. The cac up. 4 and the ftse futures doing basically unchanged. It looks like a risk on day. It can see that as well if you look at the bunds, yields rising as investors sell off the debt. Maybe getting prepared to raise funds to buy stocks. Here you see the german yield at 0. 26 . Rea that looks like a two day trade 0. 015e today it is up basis points. A little bit of gain in the german yield. Manus there is a forum in vladivostok but we had where we had putin and mr. Moon. Putinkoreas moon and condemned north koreas test. The dollar is lower so the dollar is not as if yousef about the debt ceiling extension. Chinas down i. 4 of 1 . The cosby kospi, there is that sense of relief that politics will deliver rather than war. You are seeing that relief rally for the south korean stock market. The kospi this morning. The currency had a really frilly in it as well. Gmm, letsarkets on get across to the bond market. Sovereign yields as well around the year it european market. Yields go higher. Well get into that on ecb day. Juliette saly has your first word news. Juliette President Trump has sided with democrats on adding a threemonth extension to the u. S. Debt limit to the Hurricane Relief bill. The agreement goes against the argument for fellow republicans who pressed for a longer debt extension. Calledn which paul ryan unworkable provides funds to keep the government running until middecember. Has resigneder citing personal reasons and will step down in october. The 73yearold was appointed five president obama enjoy 13 to a term that would have ended in june. The wall street journal says the president is now unlikely to nominate gary cohn as the new fed chair. Flagship pace of piece of legislation will be debated giving opponents and an opportunity to lay out objections. Allplan aims to ensure british law is copied and pasted before the separation takes place. Hurricane irma has caused the station on a chain of islands in the caribbean with wins at 185 miles our as it passes puerto rico. The latest forecast suggests it could reach the coast live thursday. And potentially the most hurricane expensive hurricane in history. And jose has developed into a hurricane. Pursuing Legal Proceedings against leaders and catalonia. They were asked the Constitutional Court to invalidate the record and consider criminal charges against those who called for it. If the government does not halt it, the referendum is said to be held at the beginning of october. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Bloomberg. Matt thank you. Mario draghi opens debate about the future path of stimulus yesterday after the Ecb Governing Council was presented with various scenarios for winding down asset purchases at least according to people familiar. Discussion, the ecb president follow through on a july pledge to start talks in the fall. A formal announcement on the next step may not come at the press conference, maybe not till october. Joining us from frankfurt is our bloomberg reporter. Why is the ecb taking its time . Is this all because of the strength of the euro . Jenna partially i would say. But do not forget that after years and years of unconventional stimulus, it is quite difficult for them to find the way to more normal Monetary Policy without disrupting the markets. Investors have gotten used to with the ecb is doing. You mentioned the euro and that surely plays a role. The euro does not move in isolation. Whatever the ecb does, whatever the fed reserve does on the other side of the atlantic will matter for the currency. What are we expecting today from draghi question like we have growth, inflation, there is a lot of discussion about the propensity to rise in the euro and that may force the ecb to adjust its inflation outlook. Am not sure what to expect from him in terms of the fact that he will volunteer, but surely, those are questions he will face. Quitero has appreciated extensively this year which is weighing down on inflation which is also threatening to hurt with thend clearly, ecb trying to get inflation back to its goal of below 2 , that is not helping. There has been a lot of volatility over the summer as well as investors were gauging with the ecb will not do. That is something the ecb will clearly try to avoid. Volatility further. As far as the economy is concerned, growth looks very solid at the moment. Economists expect the ecb to revise up their forecast for this year on inflation and as i said on inflation, it is a slightly different story. The taper options the ecb is considering . A lot of people would say they started the taper when they moved from 80 down to 60. Are they looking at a move from 6240, are they looking at giving us calendar items as far as when we can expect to more intervention . Good question. They have not said. , theyre i know looking at all scenarios. They are looking at how much the stock contributes to stimulus, how much the flow matters, they are open to all options. They have received technical documents from the ecbs committees. They do not represent policy options or proposals that surely lay out which moving parts they have to consider when they set their course for next year. Matt today we will hear draghi at 2 30 p. M. Central european time. Are there phrases we should be on the lookout for when he speaks . Jana yes, definitely. The ecb Forward Guidance is very much tied to asset purchases, to any change of wording there to say that progress on inflation will depend on all Monetary Policy tools that the ecb has in important e very a very important signal going forward. Also at the moment, the ecb commits to keep Interest Rates low, will pass the horizon of asset purchases. Any tweak of language there will give you some clues as to how Monetary Policy will ship up over the coming years. Manus it will be one of those interesting ecb days. Randowrundell jana joining us. Is 12 45 p. M. And followed by draghis press conference, 1 30 p. M. Next, kicking the can down the road. President trump signs sides with the democrats, adding a threemonth extension to the debt limit. We will have exclusive interviews with the Russian Central Bank governor and the russian finance minister. This is bloomberg. Matt welcome back to Bloomberg Markets, the european open. I am at miller in new york city. Manus cranny alongside me at our headquarters in london. It is starting to be a risk on day in markets as futures rise and bunds selloff. Lets go to Juliette Saly for your Bloomberg Business flash. Juliette nordeas banks decision has been seized on by opposition politicians who say it is the latest example of jobs leaving the scandinavian country. Puts the to finland bank inside the eurozone with savea estimating it will one point 3 billion in costs. Stirringfound adverts political controversy and were connected to 470 fake accounts and pages on the social network area the company says it is sharing its findings with u. S. Investigators. United airlines is expanding and earlier order for the jetliner handing the playmaker a critical when in its battle with boeing for the widebody jet market. Planesl is for 459 replacing an order for 35 for the bigger model. Apple will have to wait to move beyond samsung. Apple has been aiming to a. Earlier technology because of its fiber and colors and Lower Energy Consumption but it has been hampered by limited availability. Eamsung is the dominat manufacturer. That is your Bloomberg Business flash. Manus thank you. President donald trump has sided with the democrats and agreed to pass and eight for Hurricane Harvey. And extend the debt limit to mid december. The agreement moved markets and 10 year Government Bond yields rose. The rates in the tbill market went a little bit kinky according to the chart that we read this morning. The federal reserves chair Stanley Fischer moved resigned. Overve the mliv team all the markets. This is essentially squashing a heck of a lot of risk into christmas area the turkeys are nervous for christmas but so too are the bond traders, 15th of december, who is going to want to wait until that date to go to the crunch . Mark it is close to a fed meeting as well, there is a meeting in a couple of days. December could be an uncomfortable time. Im sure investors would like to get their risk off the table we ahead of that. It will be quite tricky. As you see yesterday initially it was not taken to badly. But we kicked the can down the road and we will have to go through this all over again. Markets are not out of the woods yet in that respect. They also have to worry about who is going to be in next year, who will take over from fischer, and will the outlook of the fed be dovish or hawkish . People are enjoying today, markets not doing too badly but there are still risks ahead. Matt there is a playbook ready for this debt ceiling debate. But not really for what is going on in the fed right now or at least not this exact scenario is resigningr does not lookohen like he will get the nod. How has the Market Reaction been to this . Mark the market is a little bit concerned that there are too many spaces available. I saw one report today suggesting that by early next year, they could there could be as many as four fed appointments due to be made and there are not that many names being pushed around. Donald trump has said publicly he prefers a soft fed policy. He likes doves. They are going to go out and find a lot of doves to fit his be sond there might not many around so that market has a lot to worry about and it is hard to see what the fed will look like in a years time. Matt you think is there a mock of alien aspect to this, does trump not want to put cohn in that position, or maybe is it a better idea to have a phd in that seat . Mark trump is more concerned about what is good for the business world, what is good for wall street, that sort of thing. I do not think he is concerned with of they have a phd or not so he is looking for people friendly toward business and he has to find those and i am sure he will take advice from a lot of people. I do not think academics is a big issue in that regard. Manus we have got mario draghi coming to the ecb meeting. Meeting, thet Bloomberg Euro index is up 5 . Financial conditions have tightened. Apparently he has been presented with an all a cart series of options. Just how punchy do you think today will be . Mark i suspect they will differ. They do not sound ready. It sounds as though it there is a big split between the ecb, we have had a lot of leaks from different people and there does not seem to be any unity so it will be hard to come to consensus decision. I expect he will see as little as possible and tell us to come back in october by which time they have had more chance to assess what is going on and to have a more concrete plan. Volatility, certainly. He may address the strength of the euro. I do not think you will give us too much away on asset purchases today. Not too much on asset purchases. He usesuage to use is about patience and persistence. He wants to avoid a center spike. I wonder from a market point of view him a we have read the load read the road. You have a fed meeting in december. If the ecb holds back in terms of a full delivery until december, vol, i presume, could be one of the aggressive ways to look at this market. We are stacking everything up for a christmas slammer. Mark yes, people will be looking at vol curves right away and assessing what the best way is to play be seat between january and december. Matt thank you for your time, bloomberg mliv strategist. You can follow him, live Market Insights come a just Market Insights, just type mliv. You can also watch the show using tv as well as the video stream if you are a customer and get radio and events. You can see our charts and functions scrolling by. You can message us directly function. Iv we are quick to check it and include your questions or comments in the broadcast create we are minutes away from the open. We take a look at todays movers including nordia. Said the decision could impact earnings and chairs. The opening is nine minutes away. This is bloomberg. Matt welcome back to Bloomberg Markets, the market open. We are six minutes and 20 seconds away from the open. This is a big story, some analysts have said the decision to move its headquarters from stockholm to helsinki could have a positive impact on earnings. The ceo is basically saying the same thing at a press conference right now. He wants to get out of the swedish Regulatory Regime and into the eu of which finland is a member and that can save the bank one and 2 billion euros a year. 1. 2 billion euros a year. Manus what is he going to do with the overall offers of capital, when they make this move . It could be anything up to a saving of six Percentage Points in terms of tier one capital. Inidends are hot and heavy the oil sector but today is an important day in the u. K. We have the team on bloomberg on listed stocks go ex dividend including [inaudible] and you have all the lists coming up. Bhp billiton and glencore, exdividends will trim 5. 6 points off the ftse 100 and 8. 74 points after off the ftse 200. It looks as if we have got two different stories, to roads in the snow he would and equity traders. Equities are bid, london, paris, and frankfurt are bid. They are indicated higher and the dollar is lower. That is different they like the debt ceiling extension but abe, and mr. Moon are in flood of loss got vladivl ostok. 47 off life is taking the market. It is the ecb day as you have donald trump reaching out across the aisle in the United States. It is a Beautiful Day in london. Manus just under one minute to go until the start of the european trading day. Equities are indicated higher. Just one line on air berlin. It is a small value stock, up 25 on a number of different exchanges. One as air berlin sells more than 2 million shares yesterday. Let us keep an eye on air berlin when it opens. Matt. Matt mayor berlin air. Erlin, only . 27 also fascinating for me this week, because i am in new york, the eurodollar rate during the is one theuro index ecb will watch more closely. The eurodollar has been a real point of consternation for mario draghi. Year to date, a 14 gain. Manus if we had a bell, we would ring it loud. Asia extended gains. You have the debt ceiling extended to christmas. Asian stocks higher. Autos, electronics, altered the market higher. The market is taking a breather from geopolitics. Stanley fischer stepped down. Does that mean you get a more dovish fed . He was a centrist. Certainly not on the list. Nominatel probably not him. This is the european opening. It is draghi day, dd. It is draghis day. Paris is up 5. 3 . 3 . By i love this. The cost of one week call options on the euro are more expensive than the puts, and they are the most six pence of a in nearly one month. There is nobody that want to be caught on the wrong side of the draghi trade. Nejra cehic is going to take us through the market opening. Stocks are bid. Relief abounds. Donald reached across the aisle. Nejra absolutely. Let me start with the gilt market open. 10year gilt yields follow the yield in the u. S. Lower today, we could have dropped below 1 . We are at 1. 0 2 on the 10 year gilt yields, tracking european yields higher. Those bond markets keep a close eye on the markets. We will hear from mario draghi later. Up stoxx 600 overall, pointed percent. Every Industry Group heading higher. I. T. Stocks outperforming along with consumer discretionary, materials. Risk on in european equities as we saw in asia and the u. S. Session yesterday. You talked about draghi day. You talked about the euro. I love what you said about the calls. These are one week risk reversals. Yet, look. Pricing in euro upside. Something to bear in mind when you look at equities as well because of that correlation between the euro and eurozone equities in particular. Finally, another chart on equities. I was talking about peripheral bonds with mario draghi. I have done a chart on italian bank valuations. They have risen above the stoxx 600 valuation for banks, generally, when we are looking at estimated pe. You can see, interesting, that is holding above since about the end of june. Manus, matt. Manus thank you very much. Let us take a look at some of your movers this morning. To the lefthand side, micro focus. They are confirming no new Financial Disclosure today. That is helping the stock move a little bit higher. This is the outsourcing company in the u. K. They are little bit lower. Admiral is one of the stocks that has gone exdividend. You are seeing that come through. And imperial brand, up by 2. 6 . Matt . Matt mario draghi opened the debate about the future path of stimulus yesterday after the Ecb Governing Council was presented with various scenarios for winding down the purchase program, according to people familiar with the matter. In starting the discussion with his fellow council members, draghi followed through on a july pledge to begin talks in the fall. Expectations are that a formal announcement on the next step may not come before october. We may not hear about it at todays meeting, but we might. Something to Pay Attention to. Theyl let me ask first what you are most focused on for the ecb. Do you expect news on the possible taper . Bilal there is really two things we are looking for. First of all, some kind of indication that they will make an announcement at th