Buying and half next year. In half next year. Matt, good morning. You. Good morning to pleasure working with you on this friday. There was a lot going on, especially in this part of the world. We have some moves on the ftse, down. 2 in futures. We are looking at equity index futures. Dac and cac ore euro stocks at large. There are interesting stories if you look deeper into the trade. Take aas the risk move, look. I have 10year treasurys up right now. U. S. Treasuries show you what investors think. This is the last three days. We have the yield continuing to come down, down, down over the last three days. Remember bill gross said we need throught go up 2. 4 and that before the 30 year bond bull market is over. We are nowhere near that. I am going to show you the bitcoin price. A threemonth chart, but if you look at it, yeartodate, and i will put that appear, i will put that up here, up over fivefold. Think of what it is up against, jamie dimon says it is a fraud. It might split again. Against the odds, this asset ,lass, which is thinly traded has blown up. I think it is an interesting story. Manus it is. The point you make about the volatility in bitcoin, blasting hips5,000, but when it w all, it makes sterling look like a walk in the park. Lets talk about gmm. This is what we have got. It is all about the equity story. You have china up there, india. He saw the nikkei doing well. You saw the nikkei doing well. Dollaryen on the move. And nikkei onopix the equity market rolling ahead. Laryen is want to watch dollaryen is one to watch as we go towards the election. Exports that phenomenal. It was the imports that drove the market. That is your gmm. Lets get to singapore. Juliette has your first word news. The u. S. Administration has taken the most drastic step get to roll back obamacare. After issuing an executive order. The moves, which critics call delivered attempts to sabotage the law, come weeks before americans will be will to start signing up for coverage for next year. Is expected today to refused to certify that the multinational accord to curb Irans Nuclear program sufficiently serve u. S. Interests, however, according to officials, he will stop short of abandoning it. We will bring you that announcement live at 5 45 p. M. U. K. Time. European Central Bank Officials are considering cutting their monthly bond buying by at least half starting in january. According to officials, the program may be kept active for nine months. They said reducing quantitative easing to 30 billion euros a. Onth is a feasible option councilmembers have yet to officially discuss options and an ecb spokesman declined to comment. In the u. K. , opponents of brexit say they will soon be British Government if it fails to release internal reports of impacts on leaving the european union. They have asked for 57 studies that cover 85 of the economy to be released in 14 days. It comes as u. K. Talks with the you have reached a deadlock. Ophelia has strengthened into a category two hurricane. Current forecast ofck, it could cost millions dollars. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Matt thanks very much, Juliette Saly there with your businesses. The u. S. Yield curve has collapsed. The rate seems a far distant memory. The japan yield curve is no steeper than the u. S. For the First Time Since we 15. There you see a picture of both of them. Is this a sign to be bearish on the u. S. Economy . But the bring in mark cudmore, joining us out of singapore. Our, joiningg in us out of singapore. What is this mean . Why is it happening . Mark i think it shows that investors dont believe in the full fed hiking cycle. It is not necessarily a negative sign in the u. S. Economy. It means it is not the super bullish sign. It means we are getting late in the cycle. It has more to flatten, more to go, and probably invert by the end of the cycle. It is not a reason to panic. That just not think investors dont leave three hikes next year. Manus the conversations we have had this week seemed to show that hesitancy. The other side of the coin is, are they measuring inflation in the right way . That runs slightly counterintuitively to this, doesnt it . Mark no. Investors are happy to collect the yield of 2. 23 . That is what we are seeing. If traders and Foreign Investors might to buy it, there are structural issues what people want to buy treasuries, whether it is regular trade issues and banks, building up reserves. There are many issues why the treasury is still appealing. We saw that demand in the auctions this week. I think a struggle for the 10year treasury yield to break above 2. 24 . It all hinges on u. S. Data today. Soggy all week. If youre going to rescue their october performance, it needs a good cpi data print today. Matt i got to bring up bitcoin. As i said, tightening regulations, Chinese Government concerns, jamie dimon says it is a fraud, important in my strategists poohpooh it all year. Yet, it goes through 5,500. What is going on . Mark i think it is going to go higher. The thing is still a religion in the modern world. Bitcoin is going to keep on going. I think it will continue to have volatility. The high this morning was the high this morning was percent above where was yesterday morning. It is extreme volatility. At the moment it looks like it is in one of those corrections after this mornings high. We broke 5,000. We will probably get one of these 20 , 30 corrections. Overall, the price should go higher. It has withstood everything. It is a bit of a modernday religion. There is a lot of people who still want to buy into it. Many people think it is a precursor to a currency revolution. Whether it is one that continues to something to bother investors. Whether it is one that continues doesnt seem to bother investors to volatility is not going to go away. For sure it has got its own jesus. On the other side, people think it is the mark of the beast from revelation. I want to throw you out of left field, i have a friend in berlin takeaways friend in berlin who is the did because he says eating meat is not sustainable. The mliv blog and i was surprised to see crossing my terminal that you have a post meat. Ab what you talking about . Mark i think the whole revolution starting to happen in lab meat might change the world, change markets. It is not an imminent thing. We heard about burgers were people couldnt tell the difference between the real burger and the lab grown meat. This is sustainable, healthy, passing approval rates. It is in the early stages. In the next few years, we could see a major shift in lab grown meat. It is sustainable, better for the environment. It avoids moral issues and frees up land. If this happens, it is going to change some he sectors of the economy from real estate to employment, to fertilizer companies, transporter companies. It is something that should be on the back of investors minds to think about. Mind how youws my can talk about two minutes for chickens talk about chickens and need for two minutes. Mark, thank you very much. Matt miller, just taking it left field in berlin. Can follow the Market Insight on bloomberg throughout the trading day on mliv. Up next, the far rights back. Set ton nationalist return to government for the first time in years. This is bloomberg. Lets get to the Bloomberg Business flash. For that, we go to Juliette Saly in singapore. The morning. Juliette good afternoon from singapore. Ofs has a great to buy parts bayers cropped unit. Announced today is expected to close in the First Quarter of next year. Scandalels fake data has extended to its core business as the company admitted inappropriate actions related to steel produced overseas. The steelmaker make it broken up. Samsung has posted a record profit on booming demand for displays and memory chips and announced one of its top executives is to step down. The Company Reported operating , toppingmost tripled estimates. Who served as coceo leaves the company as it moves past its corruption scandal. Price on aput roy leave of absence after a producer told the Hollywood Reporter he sexually harassed her. Thatr told the publication price made inappropriate it manus advances to her at an event. Price could be reached for comment. It comes a day after the ousting of harvey weinstein. That is your Bloomberg Business flash. Ares austrian nationalist poised to enter government for the first time in 12 years. The Freedom Party seems set to emerge on sunday as the junior ,oalition to the front runner sebastian kurzs peoples party. The e. U. Will be counting on the givearold conservative to the far right. Joining us on the phone is boris. What would be Freedom Party bring to government . What a what would it mean for austria and that you . And that you . I dont think it would put the euro membership at risk. That is Party Something the Freedom Party has toyed with in the past. They have toned down their program on that him and is no demand for a referendum and no demand for leaving the eurozone. Thing forruptive europe wont happen if the joint government. Hand, they are not in the camp of those want to deepen the integration in the e. U. They are not on the side of macron. That is for sure. Matt they have been in the government before. Let me ask about sebastian kurz. Very interesting that he is only 31 years old. He has been the foreign minister. Would he be able to control the Freedom Party . He has had to move to the right to get voters, especially on immigration. Boris definitely. I think he will have other options. That is if the polls are right in predicting the result. He will also be able to make a coalition with the social democrats again. Cant overplayty their hand in government, and that i think will be one thing rz will be up to play against any disruptive ideas they could have. They are very close on most policy issues. On economic issues, they are really close. Manus if we look at this young candidate, if you thought macron was going to shake up the landscape, and the prospect here is that this young man has the ability to bring a fresh voice , versuse versus merkel the older. Boris absolutely. I think germany should become used to austria not being on their side all the time as it has been. Sebastian kurz and the Freedom Party, they could a closer i like to some of these that European Countries in terms of policy. Ally to some of these than European Countries in terms of policy. Boris, thank you so much for joining us from the end of this morning. He is our bureau chief in vienna. They have that election coming up on sunday. Angela merkel will face voters in the northwest state on sunday. The result will be watched for signs of the parties relative strength ahead of Coalition Talks expected to take place next week. Chris. Peak to he runs our transport team in germany. How is the election going to play out . What is it mean for volkswagen . Winner is likely going to be it is a question about the coalition looks like. Viables likely that continue as the Prime Minister of lower saxony. Yesterday they said we are going to have a more probusiness environment postelection, and that could result in an outside ceo replacing. Chris any kind of a people in the government approach to volkswagen will have a voice and help the company is run. Will have a voice in how the company is run. Theyre looking around at how they want to set that up. Probusinessore stance, if lower saxony loses a seat in the election and have to become probusiness, they have been generally aligned with the workers. That has traded this strong lock in volkswagen that has blocks change. That has blocks change. Matt the workers have boat powerful spot on the supervisory board. Let me switch gears. Mccue out of nikkei lower accused the government of colluding to create a monopoly. Is this getting a lot of attention . Chris it is an issue, for sure. The issue with boost comes a ufthansa started last year. The idea of a stitch up is something that ryanair think about. Complained about. It is an issue. There is not a lot of space in germany outfitters, really. Frankfurt and munich are in the hands of lufthansa, and berlin and do. And duesseldorf have air berlin. Movedhe new airport being , that couldd constrain capacity. The new airport in berlin was supposed to urge her newly the opened in 2011 was supposed to be originally opened in 2011. It is still not going to be opened for a few years. They are in a space for other competitors. He has his own skin in the game. He was bidding as well with encore. With condor. If lufthansa gets these planes and no one else gets the rest, they will control the entire market. Is there a concern about prices raising . Chris that is something that could be politically used against merkel. How much does that e. U. Look at this . What kind of remedies is that e. U. Going to demand from lufthansa . If fares rise in germany, bettis something that is something that could be used against merkel. It has been a top story in germany the last couple of days. Chris, thank you so much. We are minutes away from the open. Manus, what stocks are you watching . Manus a little bit of a german flavor. Bafs basfwe have ers product. Uy bay it will be there largest acquisition product there largest acquisition ever. Keep in i on the Worlds Largest publicly traded hedge fund. Investment to gains in the quarter, 3. 3 billion. Those stocks are going to be the ones we want to watch at the open. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Last day of trading begins in europe. One minute sterling tumbles. Down 1. 15 . Might possibly offer the u. K. A transition deal. Barnier would be in a position to do that. Equity markets a little bit higher. Matt we dont want to come out like we are behind, if you look , it looksce chart less dramatic. If you look at the rsi, you can if you dont want to look at it, you dont have to. ,f you do want to look at it you can look at it on the terminal. There you go. The open is going to come. Indexes are not flailing around. This chart is interesting. It has not been oversold in two years. It is not close to overbought. Thank you. The equity markets are a little higher. Is a second nice level of growth. Markets are equity prevaricating at the moment. Story is thepean reduction in quantitative easing from 60 billion to 30 billion. Nejra good morning, manus. The 10 year treasury yield is study. If we look at the 10 year gilt yields, it is fairly unchanged from yesterday. Yield ing the bund not tracking the bund yield. Moving on to european equities, steady as well. The benchmark is unchanged. Mixed picture Energy Stocks up. Tech stocks outperforming even more. On the downside, you are looking at financials. Health care stocks and real estate also lower. If you look at the u. S. Versus the European Equity markets, we , one thing you can point to is surveys we have most bearishof the on u. S. Stocks have turned bullish. Is that a sign of reliability . Threats market bread th, ill leave you with that question. We have an election happening this weekend. Stock are austrian stocks cheap, but they also have been outperforming their european peers this year. Strudelhey do very good. Lets talk about some of the market movers. Onare waiting for indication basf. This is a company that produces disposable hygiene solutions. We have a broker move on this. That is a ratings great. I like this story. Bring back the money. , gains have come through. You have that kind of move. You have investment gains of 3. 3 billion. Up from 95. 9. Swedbank is the protagonist here. Deutsche bank has said no idea nordea is losing shares. On swedbank, the price target is down. Ofy will be the beneficiary strong marketing in recent years. It is the largest mortgage lender. Those of the bids. How it looking for you . Great for me. It is friday. There is a lot of news. We are getting ready to hear from european Central Bank Officials about cutting their monthly bond purchases. According to officials familiar who declined to be identified, they may cut their bond purchases by half, starting as soon as january. The program that he kept active up to nine months after that. Thats less hard to believe. Could the ecb let qe die ever . Councilmembers have yet to discuss the options. An ecb spokesman declined to comment. It is a great skip by bloomberg it is a great scoop by bloomberg. Its hard to believe mario draghi would allow deep cuts and only extend qe for nine months. What are your expectations . I think you have to put it in the context of all the messaging we received previously. If there is one message the ecb has sent us, when they do taper, it will be slow. It will be cautious and spread out over a long time. It is not so much the monthly if theyre going to cut the buying and have, youre much more likely to see them carry on for the next year. Rather than stop after six or nine months. Getof the comments we center on the concept that they question the sustainability of inflation. That is clearly the driving factor. Skills seem like a good it does seem like a good scoop. Length theys the will be tapering rather than the amount. What about inflation. It seems not just a problem for the ecb. The fed and the u. S. Also doesnt seem to be able to hit an inflation target and hold there. 2 . They dream of, about for the ecb it is more difficult and they are further away. How will they justify that . Charlie it will be looking at their inflation targets. This is why they need to buy assets. Not necessarily in large amounts, as it stands right now longterm inflation forecast is not quite as high as they would like. They wanted to be low but close to 2 . Right now it is too far below 2 . They will keep on going, and they dont want to upset the market and cause a big spike in yields. We hav