Two years. Led by luxembourg and austria. Today is writing rising today against the dollar. I said we would talk austria. Even the chance of the far right Party Getting into power in sundays austrian election isnt expected to spoil the run for investors in europes bestperforming developed stock market this year. The conservative peoples party, the leader in the opinion polls, is expected to form a governing fact packed with the National Freedom party. Dropping the antie. U. Rhetoric of the past from its platform. The partnership is broadly benefiting the austrian trade index. The white line on the top charts right there. Helping extend the 27 run this year by bringing about corporate and wage tax cuts that would s lash tax bills and boost investor demand. 5 stoxx europe is up by valuation. The atf, 14 times earning the stoxx 600. More than 15 times earnings. China overseas shipments rising from a year earlier, narrowly missing estimates on the later cited on the latest sign that Asian Traders holding up. Up bytember, imports 18. 7 . The blue line in the white line exports the trade balance the bars on this chart, demand for chinese products has proven robust, though this trade report also getting a boost from a comparison with a low base last year. Exporter tobiggest uncertainty amid trade restrictions with the u. S. And the north Korea Nuclear tensions. Sticking with emerging markets, weathering political turbulence, the prospect of tightening Monetary Policy is about to get tougher, according to 17 investors in a survey on the outlook for the rest of the year. South koreas bonds were the least favorite, and south africa came at the bottom. By contrast, russia and brazil have the best prospects for bonds in currencies, argentina and india have the brightest outlook for equities. Equities this year in emerging markets of by 26 . Currencies of by 620 , the best years since 2009. 90 minutes into the trading day in the u. S. Hows it looking . Julie stocks hanging on to, records for the major averages with the nasdaq outperforming at Large Cap Technology does better. We saw this morning interest in inflation data on the Consumer Price index front, coming in lower than estimated. We saw a drop in yields. All of that is playing out in the stock market as well. Bloomberg, we the have groups that are on the move. Materials doing the best today, and technology. Technology more heavily weighted, which helps matters. Health care on the bottom as we talk about the continuing repercussions of the trumpet ministrations ran to cut back on health care subsidies. That is definitely getting health care. I want to focus on materials for a moment. We are seeing a pretty broad andy in commodities, metal agriculture as well. On the agricultural front, we have mosaic and that are both corning, as we see climb after the latest usda crop report. Monsanto participating in the ad rally as well. Ag rally as well. U. S. Steel is higher. You see eclipse as an iron ore producer surging more than 9 . It has to do with china, as you just heard mark talking about what happened with china imports, specifically iron ore imports. Take a look at the bloomberg. We have iron ore imports, the white line surging 100 million to a record that surpasses the previous set in 2015. China has been placing some restrictions on steelmaking in for pollution related reasons, to reduce pollution. Theres demands now for higher great iron ore from abroad. China is also restricting domestic steelmaking, not just for pollution reasons, but there is less steelmaking going on in china right now. They are importing higher grades. You have iron ore at various prices on the bottom. It not been doing well recently, but now seeing a rebound on this and then trickling through to the steelmakers an iron ore producers as well. The ecb could be inching closer to make the longawaited change. We are learning some exclusive bloomberg reporting the Central Bank Officials considering cutting their monthly bond buying by at least half starting in january. Policy could Reach Agreement on just how much debt the european euro area Central Banks will buy , if the ecbs october meeting. Alessandra, is there any to stipulate that it will end in september . Is that causing some Division Within the ecb . Its quite clear that decision would be reached in october. Whetheratter perceptions may be, everyone is quite an agreement that they want to exit the carla program very gradually and carefully. Not to jeopardize the progress. Our reporting has shown that this compromise might lead to extend the program for nine months at the pace of 30 billion euros per month, which is par for whats been happening so far. Vonnie how would it be distributed among countries . Weve already seen the ecb run up against its limits. You see the p is very different for different countries. Alessandro the ecb has been size and the economic the populace never country. This is a hard limit and its very unlikely they will reflect this. Distributed onbe this, and depending on availability. Mark giving an end date to the program, september 2018. Are we hearing the whole of the ecb is behind that . Or is that according some division . But september could well be the end date. Alessandro thats probably way too early to say. Whats clear that from other reporting that there is some Division Within the firm end date for the program. When he gets to september, will there be some tapering . What will be sure is the ecb will keep rates unchanged for quite a long time. This is something that policymakers want. Having a longer tapering already proves the rate increase or wetland 2019. Into 2019. Mark alessandro speciale, thank you. Richard, given the euro was earlier,anged, up. 4 what does that tell us about the Market Reaction to this bloombergbased story today . Richard not only is the euro Holding Income equities are doing pretty well. , the core and periphery are doing well on the back of this. Theres not been a market disruption. From the ecb perspective, they are pretty happy with the results of the way the market has been digesting this reporting from bloomberg. Mark after the ecb will be happy with the way the spanish bond market has digested the last couple of weeks, post catalonia referendum. Are there risks for the spanish bond market, richard, Going Forward . Given that monday is the next key date in this catalonia referendum saga . Richard i dont think you want to rule out risk completely, but i think the reaction weve seen so far is probably giving us an indication of the Way Investors are going to treat this Going Forward. Its been a slight disruption, not a major one. And the fact that the ecb is still providing that backstop really does give some support to the spanish bond market. Vonnie it is so interesting that ray dalio is taking this position against italian banks. I dont know if you saw that story just cannot little while ago. Its a pretty big position. But the ecb as they are, and even if they are meant to be in banks, they have said it off so banks are not going to fail. Richard i think the ecbs backstop is quite powerful. If you look at the fact that he is making, its under 1 billion, and they have about 160 billion in assets under management. Its not a really big chunk of their cash file. I think its looking at being selective and not committing too much. Supportingthere and the european banking sector. And that includes italy. Vonnie if the ecb keeps this program even half the size, 30 billion a month for the next nine months, is that going to be enough to prove inflation . It hasnt been, so far. Richard thats the big question. People smarter than me will be able to answer that question. Its been a bit of a conundrum for policymakers everywhere. The ecb is is flummoxed by it as the federer and others. I think the hope is this will finally start to get some traction, in terms of inflation heading more towards target, but so far, its been a little bit elusive for the ecb and also for the fed. On marketsrd jones live, at 11 41 today. There are indications the brexit taxable we get worse in at some point, thats likely to show up in measures of fx volatility. Why hasnt it shown up yet . Richard i think it hasnt shown up yet, mark, because theres been a feeling that things are going to be negatively impacted by brexit. I think everyone who thought that has had their fingers burned a little bit. As we go forward, we are six months or seven months into the twoyear process of article 50 and as that date approaches and we dont get a deal, i think the fx volatility could actually inch higher because we get closer to that cliff edge brexit and thats a big concern for everybody. Up until now, people have been able to avoid it. But as the clock ticks forward, its going to be unavoidable. Say in this 1141 piece, you talk about how Angela Merkel is distracted and we have to look within the potential coalition options, because they are not going to bend over backwards either to accommodate the u. K. Richard no, i dont think brexit will feature very highly on the list of priorities for Angela Merkel. But also for coalition partners. I think before the election, you had other party saying they would welcome scotland back into the eu should they decide to separate from the u. K. After brexit. Thats not exactly music to theresa mays ears. At least we think this new coalition wont be as accommodative to the u. K. As many in the u. K. Believe. Mark richard jones, Bloomberg Markets live fx and rates strategist. The ubs chairman joins us later today. With storm clouds gathering in europe, 2 30 p. M. In new york, 7 30 p. M. In london. Lets check in on first word news, Courtney Donohoe is here with more. Courtney President Trump says its the time for the entire world to join the u. S. In putting pressure on iran. He is expected to disavow the Iran Nuclear Deal, but he wont abandon it. He will refuse to certify that dealultinational sufficiently serves u. S. Interests and last congress to amend and. Susan collins is staying in the senate, staying speculative a possible run for governor. Shes one of the few gop centrists and believes she can by remainingaine in washington. Receipt is up for reelection in 2020. Estelle the deadliest week of fires in california history, at least 31 people have been killed by wildfires raging through northern californias wine country. Hundreds of people are still missing in the city of santa rosa alone, almost 3000 homes were destroyed and high wind are keeping firefighters from containing the fires. Ireland could be hit by a hurricane on monday. Hurricane ophelia is a category two storm with top wind of 100 miles an hour. It could become the strongest storm destroyed ireland since 1961. One forecaster says the hurricane could cost ireland almost 800 billion in damage. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Courtney Donohoe. This is bloomberg. Mark courtney, thank you. Coming up, brexit hitting a rough patch after the breakout talks and ended in a deadlock. The eu commissioner for economic and Financial Affairs says the eus position is clear. More on that conversation, next. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, on vonnie quinn. Mark live from london, i am mark barton. Counting down to the european close. The next its over exit hang in the balance after talks ended in a deadlock. The european commissioner for economic and Financial Affairs spoke to bloombergs tom keene about the eu position at the imfs annual meeting in washington. Clear,position is very its a divorce that needs to be a good divorce, with a strong relationship after the divorce. But discuss the future relationship between you and u. K. , and u. K. Will be a european country, even if not inside the eu, we still need to show the issues on the table. And the first thing is we need to have a strong, precise, definite discussion about the financial settlement and also about citizens rights. First things first, in the future, tom do you need a more like a courtalogue process in divorce or something squishy like american arbitration in divorce . What you need from the british . More precision and iq dialogue . And acute dialogue . Everyone appreciated the progress because the ideal transition and the reaction by all eu stakeholders was its getting better. But everybody said at this time we need to move from the speech, which is good, to a precise proposal and we are still waiting for them. And this is why yesterday we had to say that there was not perception sufficient progress to move forward. ,n the two months to come progress is possible. Tom they can be decided outside the courtroom as well. With what a drive this dialogue for europe . You represent the voice of the European Union, or will it be driven by the state leaders, Angela Merkel . Have a very precise organization and our british friends are aware of that. Negotiator, the acts in the name of all the commission. He is a friend, but im not negotiating with his counterpart. He only represents the commission and hes been recommended by the european the british side must know that the very clear position and there are talks of united will stay so. Tom bank of america decided to moving bodies from london to paris. Everyone wants to live in paris. Are we going to see more people in london in the city make the choice to move to paris . Today, brussels is not paris, but paris is a fantastic city. What is clear is through this shift, theres amsterdam in berlin another centers and also spain, you can see how necessary it is for these banks to have a very strong foot inside the eurozone. This is why im a very strong advocate of the eurozone. I think after the brexit, euro will be 85 of gdp of eurozone as a whole. Mark the european commissioner for economics and Financial Affairs. As we head to the close, heres a look at germany. The benchmark in germany surging to a record. Gainers,ong the big contributing to the record rise. Which i can on the closing number just a few minutes. Perhaps President Trump will refer to it. He likes his records in the stock market. President trump is expected to decertify the Nuclear Agreement with iran today. How will iran itself respond . Thats next. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, on vonnie quinn. Mark live from london, i am mark barton with the european close roughly six minutes away. Time to the Bloomberg Business flash, to look at the biggest business stories in the news right now. Wells fargo has gotten hit by bad behavior in the housing bubble after almost a decade after it happened. The bank had a surprise 1 billion charge previously disclosed mortgage related investigations. Wells fargo reported earnings that were less than expected. Bank of america posted its highest rating in six years. Chief executive brian morning hands efforts to boost profits through costcutting finally got some help from interest rates. Net incomenses and was the highest since 2011. U. S. Relators are looking into with the Guggenheim Partners inappropriately steered client money into businesses run by former barclays chief executive bob diamond. Broadert of a examination of guggenheim that regulars were looking into diamond on his company. More on this story, coming up later this hour. Thats your latest Bloomberg Business flash. To go to where european markets are trading. We are heading to the close. Stocks are higher, not higher in london today. Higher sterling, weaker ftse. For thet the currency euro is up against the dollar today. The day and for the week. Im going to leave you with the bond board. Year,got the u. K. 10 german tenyear, spanish 10year and italian 10 year. Yields lower today, the big bloomberg story is ecb officials considering cutting monthly bond buying by half starting in january and keeping the program active. This is bloomberg. Mark live from london and new york, this is the european close. I am mark barton with vonnie quinn. Oil and gas are up for the fifth week, the best run since march 2015. One of the big gains today, man group up i 15 . The biggest publicly traded Hedge Fund Firm reported a net increase of 2. 8 billion in the First Quarter. They are allocating capital to the emergingmarket debt fund at radically lowcost investment strategies. A total of 38. 7 million was allocated last year to the money polls. This year through august, after 112 billion was pulled over all of last year, thats the Hedge Fund Industry in its entirety, man group also announcing plans to buy back as much as Million Dollars worth of shares and said it will explore further acquisitions. This is euro against the dollar headed for the first weekly gain in three after the worst losing run since april 7. Ecb officials considering cutting their monthly bond buying by at least half starting in january and keeping that program active for at least nine months, according to officials familiar according to sean callow, senior currency strategist at west bank. Thats likely to be further upside for the euro if the dollar is set to ease slightly, focusing on the tapering prospects will intensify. He says 1. 20 looks like an electric fence for the ecb. 1. 18 is where we are today. Japanjapan closing at a 19 96 h for a third day. The best run since december 2016. From the highs of late 1989, still 50 below those levels. Breaking news. Trump hasesident disavowed the Iran Nuclear Deal without yet acquitting the multinational