European Equities Trading 30 minutes until the end of the session, little change in the stoxx 600 with a couple of stocks lower and if you hire. Sterling is up against the dollar. Near the highest level since last september. Bond yields mixed. Stocks are down for the week. Drinking shares down as much as 50 . Greene king sinks, down as much as 50 . It is cautious over its nearterm prospects with a weaker consumer prospects and higher costs and increase competition, shares have been hammered today. Mario draghi referred only to ,he euro volatility yesterday rather than explicitly commenting on current market pricing. Bidding risks keep reversal across the curb with bullish bets on the six months tenure. 10 year. Reversal andsk rising for a seventh day, 23 basis points in favor of euro core, the most bullish sentiment from the currency since september of 2009. They data out of china, export growth slowing and Global Demand for the countrys front. 13. 3 , leaving a trade surplus of 42 billion. Geopolitical risk cloud the economic outlook, demand for chinese products softening slightly amid mixed performances of some developed countries. The message demand is showing site domestic demand showing signs of resilience thanks to steady investment. 19 minutes into the trading day in the u. S. 90 minutes into the trading day in the u. S. A mixed picture, the dow and s p 500 which just slipped higher by the tech heavy nasdaq down fractionally, 1 10 of 1 . Flipping between small gains and losses with some uncertainty. It is friday, a holiday shortened week, moves up and down. Perhaps investors taking a break and perhaps about fears about north korea into the weekend. A distinct move is oil. ,n intraday chart of oil, 10 00 it took a very sharp leg lower, down 2 on the day. Not clear what is happening, not a fundamental cause. Not the dollar which is off of it slows. It could be profit taking, on the week, oil is having its first of week in six. Six. Week in overall, oil down 10 on the year. More declines been gains. We have had declines over the last five weeks but this week oil is up about 1. 8 and commodities our commodities reporter says Hurricane Harvey hitting and energy have is bullish for oil over the longterm. Individual movers within the energy complex. Occidental Petroleum Trading down, perhaps in sympathy. Valero up about 1 . Seems they are back in business and trading higher. A look at metals, gold is higher, up 1. 5 . It makes sense, considering the dollar is lower and the haven bid. Industrial metals all down. One of it our commodities strategist says this is long overdue private taking. Profit taking. Julie Industrial Metals now a pullback. Speaking of hurricanes and the energy complex, the latest on Hurricane Irma as a goes towards florida with the National Hurricane center issuing an a. M. , a category four hurricane with winds up to 150 Miles Per Hour and hurricane conditions over parts of cuba and the central bahamas. You can see the latest on the bloomberg. Has left at least 11 people dead and thousands homeless across the caribbean. Threatening to become the most expensive storm in u. S. History. Miamidade county biggest evacuation effort and the National Hurricane center extending the hurricane watches north, all the way to the Daytona Beach area and the storm surge warnings as well. Lets bring in our miamibased breaking news reporter, joining us from downtown miami. We actually have you now on camera from your hotel room. Tell us a little bit about the storm preparations you have been seeing around you in miami. Are you the only one left . Pretty sparse in terms of population . It is pretty empty, i am in the financial district downtown with a big view of brickle avenue, the financial industry area. There is pretty much no one here. Some other correspondence in the hotel. Am not the only person left a lot of people positioning themselves to respond to the storm once we get through the worst of it. Mark give us a sense of the impact so far on the local economy. And the potential impact, if irma strikes as expected at the weekend. You started things to see things slow down and stop yesterday. A lot of businesses are shut and people putting sandbags in front of entrance is. People are waiting to see exactly how this storm proceeds, and how the turn goes, and exactly where it hits. It has the potential to disrupt transport, tourism, a big banking and financial community, everyone is waiting to see how bad it is. There has been officials saying that parts of the state could be without power for days. People are hunkering down and positioning themselves. If you go to a supermarket, there is not a lot of bottled water. People have been preparing for days and everyone will wait and see how it hits. Of, whate us a sense is it like being there . What is it like Walking Around . I know you have spoken to a number of people. What are you hearing from the community . Right now, it is still sunny and a beautiful day. It looks like the weather will start to get bad as we get into tomorrow. It has been full of conversations. Everyone got back from labor day on tuesday and people started thinking, what am i going to do . You saw people debating whether or not to stay, or try and evacuate somewhere on wednesday. Yesterday, people who thought they might stay started to get out of the city. People are going to airports and trying to get a flight wherever they can get out. People driving as well. Just going up north. The way the storm is looking, it is credible because it looks like it will go up before state. At the whole state. People tried to go to tampa or atlanta but it looks like the storm will go up the whole state. I think it is almost like there is no escape. Those of us here in miami or in florida. It has become a game of making sure you are prepared and ready to ride it out. Julie there are some people there as well who are now getting ready for Recovery Efforts already, even before it hits. We are showing the map. As you talked about, it encompasses the whole state and beyond. What kind of not just racing four and bracing for impact, but looking beyond the storm for cleanup efforts. How do you do that before the storm begins . There have been reports that utility crews are stationed. I do not think anyone is expecting to have full power and communication when the storm is right overhead but there are crews getting ready so they can get back out and running as soon as possible. Then we will just have to see how much damage is done. Where i am right now in the brickle, if we have a couple of hours of rain, you will see mild flooding and certain parts of the city. If we get a big storm surge and a lot of rain, you could see significant flooding, especially on miami beach and all of the barrier islands. It is not clear how much water is going to hit the city and how far the storm surge will go. I know that all of the government officials have said that they are prepared so that, as soon as this is over, they can get working to get things back to normal. We will have to see how the storm hits and exactly where it goes and how fast it moves, and how much water and wind damage there is. Julie good luck to you. I hope everything goes well for you over the weekend, reporting from miami and we will check in with him on monday once the storm passes. Lets get to the bloomberg first word news. Bymexico has been rocked what is president calls the biggest earthquake in one century. It hit off the mexican Southern Coast not far from their border with guatemala with a magnitude 8. 2. Houses crumbled and at least 32 people killed. Concerned that aftershocks could make matters worse and soon on the waves could reach 10 feet. Congress has signed off on the debt ceiling bill that includes more than 15 billion for Hurricane Harvey relief as the health house gave final approval between President Trump and democrats tos extended debt limit and extend the government staying open until december 8 and goes to the president for signature. The north north korea nikkiening the u. S. After haley said north korea was begging for war by detonating its most powerful nuclear bomb on sunday. Tim john kuhn said the u. S. Would pay dearly for that kim jongun said the u. S. With regular for that. The wife of Benjamin Netanyahu is told she is facing indictment after misusing public funds. Benjamin netanyahu has says the allegations are absurd. Global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. This is bloomberg. Mark coming up, with brexit talks at a stalemate, we will look at what is ahead for the u. K. Economy. Sterling rising for a fiveweek i against the weak u. S. Dollar today. Julie live from new york, i am julie hyman. Mark i am mark barton. European close in roughly 15 minutes west early on the rise and investors covering short position and u. K. Manufactory taking beating expectations. Joining us is the chairman of the Investment Committee at outline capital management. Have you changed your position on brexit, given the failure of talks last week. And the first week back for parliament . We are going nowhere. Nobody believes there will be a deal. Even if there is a number that is agreed by the government, you cannot get it through parliament. Two, thein a month or talks will come to an end. It will allow the commission to say, you were never serious and we will not stop trade talks. The whole game will be played out. Mark how does it play out . The conservative party is completely divided on europe and has been for 40 years. The Prime Minister lost her authority and nothing she can do to resolve the issue. It is down to the most powerful politicians. Mark getting their act together on brexit, they seem to be. They are keeping their heads down, letting the government messes up. Mess it up. They will eventually have to agree on a compromise, maybe a norway style deal. Away and let the whole thing march towards no deal . I think that is what will happen. Corbin is keeping his cards close to his just and the official parliamentary view is that it is the closest possible to the Single Market as possible. Will they put make it happen, i do not think so. Mark muhammad ali are in spoke Mohamed Elerian said mr. Fishs department departure has led to a huge void in the fed. A lot of positions to fill. He has the biggest opportunity to completely mold the fed into whatever image she wants. Nobody knows where he wants to go. We are finding from donald trump, this should not be a surprise, he is a practical person and not ideological. I do not think he is pouring over monetary textbooks and trying to quiz economists and work out a particular viewpoint. He wanted to work. Wants it to work. I do not think he will be a point janet yellen he will appoint janet yellen again. Mark the white house todays says to consider six for the fed chair. I think it is completely open, gary cohn is out of now but earlier Jeff Sessions was. People come in and outoffavor. I do not think anybody knows and it is completely open. I do not think donald trump is focused on it. Mark what does the market tell us about the assessment of donald trump and his presidency . Itsdollar continuing decline and treasury yields at 2 with equities near or at record highs. What is the message . The market is very short donald trump. The market is very long u. S. Treasurys. Linked traits are trades are linked and we saw something new this week, nancy, chuck, and donald show. Nobody thought it could happen at in one fail swoop, donald he had no its ranch with politics, no experience with politics, these very complicated politicians, he said, Republican Party, you have the majority in both houses, you repeal obamacare and do this and that. Guess what happened . They stymied themselves and have not done anything. They are like most political parties, full of different wings and contradictions. Donald trump is showing himself to be capable of doing is reaching out and saying, i will get things done. Think he was bothered about the debt ceiling but he wanted to get money to harvey. His base is florida and sorry, texas, and he did not want to say i cannot get the money to my base, because of arcane rule about the debt ceiling. Mark some say it paves the way and the white house says it is so he can focus on the true love, which is tax reform. I think you are right. A much better chance for tax reform to succeed. It may be a different kind of tax reform where the republicans have wanted a few weeks ago, but it does make it much more likely and much more likely to explode the federal deficit. We are back to treasuries. Mark treasuries have reversed and the dollar becomes favorable. You are saying the inverse of now. This is a turning point for the trump presidency. Mark in december, you have to deal with the ceiling and daca, and other issues. You just kick the can down the road. Politics is always collocated and a lot of negotiations. Complicated and a lot of negotiations. The Republican Party could not deliver on some things and john mccain came off of his deathbed to go back to arizona to jettison the repeal of obamacare. Suddenly, there is a new game in town and donald trump is showing himself able ineffective presidencies in the past, bill ,linton who did triangulation positioned himself between the republicans, democrats, and use the power of the presidency. If donald trump can do that, i a lote could be lot more effective and get tax reform but a Donald Trump Style tax reform which will mean a lot more spending and tax cuts, higher mark the ecb, the big takeaway from yesterday and what it means, qe, policy Going Forward . I am depressed as an intellectual because mario draghi has done what he always does, find an excuse to carry on buying 60 billion a month of european government bonds and keeping Interest Rates negative levels, even when the european economy is doing well. This week his excuse was the euro. We are going nowhere with this trait and it will be very painful and slow. This trade and it will be very painful and slow. Mark always great to chat. , chairman of the Investment Committee at Alpine Capital management. Qualcomm, they lost a bid to force for apple contract manufacturers to pay qualcomm hundreds of millions of dollars in royalties for its patented Technology Used in iphones. Qualcomm and apple battle their licensing dispute, while a san diego judge denied the qualcomm request forcing the contractors to resume making payments they had stopped. Contractors including foxconn and pegatron who shares are lower. Mark lets get to a bloomberg excuse of, the Russian Central Bank governor says she will discuss a reduction of the countrys key rate at a meeting next week. She spoke exclusively to bloomberg at the moscow financial forum. Cases when webeen reduced. 5 basis points and cases when we reduced it by 50. 25 basis points and sometimes when we reduced it by 50 and sometimes we took more time. It will all be subject to analysis and we will look at the economy and inflation figures, inflation expectations. All of that will determine our decision. Mark an exclusive with the Russian Central Bank governor. More markets coming up in a few minutes. Four minutes until the end of the session with stocks little changed, slightly up and down over the week. Declines in london and in paris with gains elsewhere. The close is next, this is bloomberg. Live from london and new york, this is the european i am mark barton finishing up the day. We are up for the day, down for the week. Continuing that trend of alternating between weekly losses and gains that started seven weeks ago. Analysts believe stocks will continue to rise despite the strength of the euro. There is concern that the strong euro will dent exporters profits. Analysts expect stoxx 600 companies to grow by 13 this year. We are up today and down for the week. Eurodollar, cannot get away from it, 1. 2032. Rising for the fifth day, best run since august 2016. We are on track for the biggest weekly gain since june. Draghi did not say enough to stop the euros advance. He admitted there was brought concern among the governing council, but it wanted monitoring, stopping short of that verbal intervention some thought he would give. 1. 2030. Remember these levels, 1. 03. Parity,talking about but it has been a different story ever since. Manufacturing data out of the u. K. , the economy having a mixed start for the third quarter. Manufacturing boosted by a strong rebound in car production. The trade deficit was little changed from the downwardly revised due to construction after plunge in orders in the second quarter. These do little to dispel the view that the economy is stuck in the slowing is a brexit uncertainty because of brexit uncertainty. Surveys showing the dominant Service Industry is continuing to lose momentum as well. Construction the blue line, manufacturing the white line. Grew less the economy than the governments preliminary estimates in the second quarter, weighted down by capex. 2. 9 . They have maintained six consecutive quarters of growth, the longest expansion since 2006. Inflation and tepid wage g issun for a long time for the bank of japan. Julie in the u. S. , the white house is considering at least half a dozen candidates for the next head of the Federal Reserve including economists and expecting officials. Bill dudley, the new york Federal Reserve president made it clear who he favors to lead the central bank. I think chair yellen has done a fantastic job. I have known janet for years and years. We are good friends. I think she would make a fine choice. I will leave it there. Julie the bloomberg daybreak america team sat down with Mohamed Elerian to get his view on the future of the fed. This is a very tricky time for the fed, and it is running now with less people on the bench, on the