Crisis management. Russias Central Bank Governors as the Global Economy is coping with political turmoil. We have interviews with her and the finance minister. We are less than half an hour from the european open. I am looking at losses in equity index, futures, really across the board. You can see the the Index Futures down. 2 , as our ftse futures, dax futures down a little more. That doesnt show the picture of what a risk off they it is shaping up to be. If you look at bunds, you see it there, coming below a three handle. Bunds trading at zero point 2992 0. 2992. Get aroundiling to the world. Investors getting into treasuries, as well. The 2 level, i think it is turning out to be a big risk off friday. Anna looking interesting to see we didnt really see such a risk off vibe from the asian session, things were mixed there. Japanese markets weighed down by what was going on in the currency market as we see money piling into the yen, but elsewhere, gains for asian equities. Perhaps that will be the case in the european session. Appear,he gmm pulled the euro continues to strengthen, we saw that during the press conference. As if the euro euro wasnt listening to the dovish talk of mario draghi. The pound on the rise, the euro on the rise, the mexican peso doesnt look to be moving very much. Do keep an eye on that. We have had this earthquake hitting off the coast of tres picos in new mexico. Ago,d an hour and a half and we are still trying to estimate the damage and mexico city seems to have come out of things not too bad, but we have this morning of a tsunami and we will watch for the impact. Its given up update on the first word news. Juliette an earthquake registering magnitude of 8. 0 has struck off the coast of mexico, shaking buildings in the capital and triggering a tsunami warning. The quake hit at a depth of 20 miles off the coast of tres picos in the south of the country. The Pacific Tsunami Warning Center issued an alert that possible along the coast of new mexico and guatemala and as far south as ecuador. Unofficial described the quake as the strongest in more than 30 years. Hurricane irma maintains a collision course with miami after battering puerto rico and a chain of her king island caribbean islands. Has the threat of becoming the most expensive storm in u. S. History. Category five storm destroyed almost all the homes on the west Indian Island of barbuda, killing at least eight people. President says it is not inevitable to go to work with north korea that military action remains a possibility. An imminent Missile Launch with the north saying it may come on the anniversary of its family founding. The white house is considering at least six candidates to be the next head of the Federal Reserve according to three people familiar with the matter. Goesreath and research against the narrative the choice is a two horse race between gary cohn and current fed chair janet yellen, whose term expires in february. The list includes executives with inking experience, economists and other banking people. The former governor of the reserve bank of india says the country must fix growth if it is to provide enough jobs for the worlds biggest workforce. Slowedafter expansion the 5. 7 , he said the pace needs to step up. Growth, if it stays at six or so rather than going to eight or nine, it would imply we have a harder time and dissolving this labor force aming in, which creates concern about what kinds of actions you take Going Forward. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt . Matt thanks for that. Russians central bank is said to discuss a reduction in its key Interest Rate by a five. 5 according to the governor. In an exclusive sitdown, guy if she wased her likely to be more cautious, given the recent volatility in the inflation data. Forecast, never give and never give estimates of what we would do with the policy. It will be up to the board of directors who will make a decision at a subsequent meeting. If you look at our track record during the past year, both have taken different decisions. Cases where we reduced it by 25 basis points, by 50, and sometimes we had to pause to take more time to give additional consideration to the matter. It will all be subject to analysis. We will look at the institution and the economy, the inflation figures and expect nations and all of that will determine our decision. Guy governor, does that mean we can rule out you have talked about taking into account all the fact and you are going to listen to your board and discuss all the options, but given where we are in inflation, can we rely perfect you will leave Interest Rates on hold and can we rule out the will see a really big cut, like a 75 basis point cut . Once again, we do see potential for reduction and we will probably debate for somewhere between. 25,. 5. Guy you talk about moving to this new phase and i am curious about how you perceive the inflation target. How symmetrical is the target . Are you happier to be below it and you are to be above it . How much symmetry is there around that target and how much tolerance you have for being away from it, away from that kind of target . That is an important question you are asking, and the question has actively been debated in this country. 4 isays made clear that our target, but does that that does not mean inflation will stay at 4 on any given day or month, there will be fluctuation. We are prepared for that. Downll be going up and around 4 and we think for for 3. 3 is3. 3 4. 4 or attractive for us. What is important is to understand the nature of those fluctuations and to come up with correct measures to respond to those. We need to understand what factors led to this and to see whether they are sustainable . Is a oneoff factor, it is likely to fade out very quickly or not require any response inconvenience on behalf of the central bank. When we first started inflation targeting, we studied the experience of other countries, and we have seen that some of them decided to determine a corridor of inflation fluctuations. Plus or minus one, 1. 5 percent, but we decided not to do that for a clear reason. We thought if we do that while Inflation Expectations are not country, thatis would mean people would expect inflation to stay at the higher end of the corridor. We did not want that to happen. Act on ad to casebycase basis, we need to do our analysis constantly because the economy is a living organism and we need to keep track of all the changes that are happening. Guy johnson joining us now from moscow. Great interview, guy. What else did she have to say . Lot about what a is going to be happening Going Forward from here. My sense is that she remains reasonably cautious. The inflation data, particularly, are reasonably volatile. , we have had some sub inflation be subpar, but what she is looking for is a sense of stability right now. That is clear from the action she has taken. Nevertheless, she confirmed to us in the universe interview that the meeting that will be on the 15th is likely to look at a 25 to 50 basis point cut, the economists we have been pulling at bloomberg are talking about a 50 basis point cut. Remainse, 50 to 25, she reasonably cautious. She is aware that expectations among the general public remain relatively high in terms of work expectations on inflation. She is that during that in. Another factor is what is happening with the Rating Agency s p, currently has russia on a positive outlook. The sanctions story remains front and center and remember, the central bankers had to nationalize one of russias biggest banks. The Financial System firmly in focus. Anna the Financial System in focus. As is the currency, and you talked that with the finance minister. What did he have to say about the ruble . Guy he talked about this issue of stability. The russians having seen inflation come down from around 17 , the currency being incredibly volatile. What they are looking for is definitely a feeling of stability and that is what they are looking for from the oil price, which remains a critical factor for this economy Going Forward. It accounts for about 40 of the inputs to the budget. That remains a critical factor, as well. But they are hoping for is they dont get any significant changes in the ruble. It remains a little elevated, but a sense of stability is what the minister is looking for. Anna guy johnson, speaking to apologies for that, i think we were going to bring you some sound. Maybe we can return to that a little later on . Some sound from the finance minister . Guy johnson, thank you. Matt lets get to that later. We will going back to guy johnson throughout the day on bloomberg. You can catch those interviews using tv or check them out on the web at bloomberg. Com. Ant to bring our loot viewers the latest on mexico because we have gotten an , athquake there reported magnitude eight earthquake that is only 35 kilometers deep and is apparently very shallow. The interior minister their reporting three deaths and obviously, there is concern beyond what happens with such a big earthquake, including concerns of us in know me. Tsunami. Beyond the her concerns of irma and katia, already on track to mexico, you have the possibility of a synonymy. Hat is one reason tsunami that is one reason investors are seeking shelter. Plus, missiles. A lot of risk that is, we will set you up for the market open coming up 16 minutes time. Going to getay is started with our markets live strategist next. This is bloomberg. Matt welcome back to Bloomberg Markets, the european open. As investors scramble for the perceived safety of Government Debt, pushing yields down around world. But get the business flash with juliette saly. Juliette three senior and that worthcutives sold shares 1. 8 million in the days after the company was struck by a massive cyber attack. None of the Regulatory Filings listed the transactions as part of a trading plan. Million american customers are thought to be affected by the security breach, discovered by equity fact in july that made public yesterday. The trio had not been informed of the incident at the time. In show confidence, huawei is joining local rivals in new products around the iphone. Products estimated to go headtohead. The ceo spoke to bloomberg. For many years, huaweis mobile phone is seen very fast growth. I am happy to see the first half of this year, huawei mobilephone shipments to china and internationally increased along with the average price. The Largest Pension Fund in the u. S. Is talking to blackrock about outsourcing its private equity business according to people familiar with the matter. The California Public employees entire midsystem is to be a discussion with blackrock about some of its 22. 6 billion in equity. Seeking to offset anemic returns. That is your bloomberg is this flash. Anna thank you, juliette. Mario draghi, Hurricane Irma and the ongoing threat of north korea have rattled markets. The dollar and treasury yields have taken hits as investors seek something safe from storms and missiles. Grunfeld, now, Mark Bloomberg strategist. Market taking a hit yesterday on these risks from this cacophony in the market. Look to yous because in the asia session, equities were up as a whole. We she money going into the yen, but also the aussie dollar. It is not as simple as dive into bonds, take ever across the board. No, it seems to be do anything apart from u. S. Dollars. People were grabbing anything they could. Asian currencies, major currencies, a strong day for the Australian Dollar among the things. The chinese currency has had an extraordinary day, a good week. Yuan has been a star performer and drag debiting with it. Everyone decided we dont want to have u. S. Dollars for the weekend and got rid of everything they had. Quite a busy day today in the form six foreignexchange markets. Equities were pretty mixed. I guess they were just watching the show in the foreignexchange market. They couldnt believe what they were seeing. In the bond markets, we have seen yields drive lower. Matt absolutely, that is a story today, but we heard a lot from fed speakers. We had dudley, george, master, what was the message . Too different from what they have been saying. They both seem fairly happy with the way the fed is going. It is a gradual process, there is still going to be room for rates to be erased raised at some point. But they are concerned inflation isnt showing the way they would hope. Dudley thinks wages will start to increase again, he said. The bigger concern for investors is when they hear things like there could be as many as six different people being considered as the next fomc chairman. It makes them hard to decide how do we read policy Going Forward . I think investors would like some clarity on if it isnt going to be janet yellen, who is running the fed next year . Matt mark, thank you so much for your time. Bloomberg mliv strategist. You can follow Market Insights on the bloomberg with that blog. It is insightful. Mliv is the function command on your bloomberg carried we are minutes from the open. Up next, we take a look at the movers in todays trading including akzonobel, which has cut its profit outlook. This is bloomberg, the open is just nine minutes away. Welcome back to Bloomberg Markets the at miller in new york this week. We are minutes from the opening of trading you can across the continent. Your stocks to watch right now, firsts akzonobel after profit warning, the company says it is not going to make a target for Profit Growth of 100 million euros. It will coming lower. Down forfo is stepping health reasons, they will replace him on a temporary basis while they look for a permanent replacement. That expected to hit the stock hard this morning. Watch akzonobel shares. It is embattled as a takeover target, so that is why you see the big game there. News around the guidance and the cfo and seeing the u. K. Market continues to be sluggish. Update on the insurance sector. We need to watch reinsurers, keep an eye and munich and swiss , in the United States, down 7 in yesterdays session as florida braces for Hurricane Irma. We know what it has done in the caribbean, deadly and destructive. How much will it be so in florida . What impact will it have on life there . But also, what impact on the markets . Gasoline, insurer companies, soft commodities all in the mix. Disasters in mind, we are keeping an eye on mexico. We brought you news of an earthquake two hours ago. It was measured eight on the scale, that was two hours ago and as a result, we saw a synonymy warning coming through. A tsunami warning for three meters high. Mexico much damage in city, but elsewhere, there could have been and we are getting updates all the time of damage coming to in chiapas. A host of factors in the trading day. We had a fairly resilient session in the asian markets, we were positive on asian box, but things looking at little different in the bond markets as we head into the european stock open. Matt bunds below 0. 3 now and you are looking at the two flat level on the 10 year yield in the u. S. , as well. It looks like investors are running for the perceived safety of Government Debt. We will keep you uptodate on that trade. Those markets open, equity markets five minutes away. Stay with us on bloomberg, the open is next. This is bloomberg. Manus welcome back t. Start of the equity trading day, and we expect things to be weaker at the start of trade. The feature on the bloomberg expects teachers to be down at the start of trade. Insurers are very much in focus. I see almost every currency beating the u. S. Dollar, with the exception of the paces. Traders worry about the earthquake there. If you take a look at the bonds and the 10 year treasuries in the u. S. , this is a one year chart. Those yields pushing down to almost two even. If we had the 2 level or go below that, it will be the First Time Since november 10. Keep your eye on that as they pile onto Government Debt. Anna keeping an eye on what is going on in the bond markets and opening up in the European Equity markets. Expect a weaker start to the trading day. Not just Hurricane Irma, but other Natural Disasters. We have the sunol me warning associated with that earthquake off the western coast of mexico. We are keeping our eye on all things mexico. We are keeping an eye on the start of the European Equity trading day. We do not have much in the way of prices to go on yet. On theping an eye insurance sector as well as we wait for Hurricane Irma to make landfall in florida. There could be some negative moves as well. We were down 7 on some of those u. S. Insurers. Lets open up with nejra cehic. The gilt market opening, the 10year gilts yield at 95 basis points. We are below that 1 level, down two basis points in todays session alone. We saw yields move lower across europe following the ecb decision and Mario Draghis press conference. We are watching we saw the gains yesterday down today, down 0. 2 . Industry group distribution, we saw most Industry Groups move lower. Underperforming, down 0. 6 percent, along with Consumer Discretionary and energy yields outperforming. We are seeing oil heading for its first weekly gain since july. Taking a look at this chart, i focused a lot on the fixed income space. The 10year bund yields and where that is headed. This chart showing the european banks overvalued, relative to on where german yields are. Another interest