They do see fourthquarter dajusted ebit. At 200 ebit monthly users up about 4 . The stock up about 5 in the premarket. David we have earnings at ford, ford out of they are beating on revenue and earnings per share. Gap actually reported by earnings per share of . 39 per share as opposed to a . 32 percent . 32 prediction. They controlled costs beautifully. They had record sales in the pacific in asia. The one thing that fell short, europe. Why . Brexit. Bob shanks will be talking about this in about 20 minutes. Jonathan the ecb, 45 minutes away we get the decision. Is it that beginning of the end of the qe plan . Mario draghi expected to announce a scaling back of the Bond Buying Program and loose Monetary Policy. Running us now from outside the ecb in frankfurt is bloombergs matt miller. What is on the table . Matt the consensus is for a cut in half, from 60 billion euros a month in bond purchases down to 30 billion euros a month, and an extension of the program for nine months until september of next year. Bloomberg markets thinks we could see a little bit more dovish action from draghi, maybe a cut only to 40. Maybe that would be a sixmonth extension and he would leave it openended. He does like to leave things openended and say he is willing to come back with more firepower if necessary. Analysts at jpmorgan think we will see a more hawkish mario draghi and that would be bullish for the euro. The euro looks like it is set to move either way. It is very thinly traded today as people wait for the decision. David breaking news related to europe, the sec has just given a essentially get out of free get out of jail free card to various brokerages and banks here and there was a question if you charge for research do you have to register as an Investment Advisor under u. S. Law . The sec says at least for 30 months we will give you a pass and you do not have to be subject to onerous regulation. The other big story, matt miller, i want to bring you back in with the chart, the ibex in spain. Delivering some nice gains of almost two full Percentage Points. Catalans alone president the catalan president might call a Regional Election instead of independence. He does not want to talk about politics, does he . Matt he does not but he will face some questions. He will make a statement at 1 30 p. M. And our press conference with draghi is an hour later. Bloomberg news has reported he is going to hold elections rather than declare independence again. Right wing further or left wing, depending on how you see them, separatists preferred the independence declaration but elections could give him more power. If he wins he will have a mandate to go forward with Catalan Independence and if it does if he loses it may be a more dignified way for him to bow out of the standoff if he loses it may be a more dignified way for him to bow out of the standoff. Jonathan great to have you with us on the program. First president for dutch question for president draghi. If you were in the News Conference, what would it be . Jordan a lot of what you will hear will be like a bad cricket score. You get the e. U. Cricket board. 30 billion for nine months of an extension in qe, or could it be 40 for six, which is what we think. What matters today is a lot about Forward Guidance as well. Does draghi keep us on a wait and see for the next nine or six months . Ecbs. Ne of these weird i have not seen an ecb with so many variables and a low conviction in the market. This seems very light, very nimble. It is going to be euro higher. Jonathan nine is really, really bad. Months seemsr nine to be the central base case that as jordan says it will be difficult to establish where the market is and what it expects. Pierre we see it in line with the market and i would certainly agree that the emphasis is on Forward Guidance. Perhaps the one element i would add is if we get any details about the balance of Government Bond purchases relative to Corporate Bond purchases. I think the currency market will focus very much on Forward Guidance as well the Government Bond market, but i think Credit Investors will be focused on any comments about the cspp. David taking us into that question about buying sovereigns as opposed to a Corporate Bond, does the ecb have a choice . Do they have to go into Corporate Bonds because they are running out of sovereigns to buy . , it will almost over time it will almost become the default option. From the perspective of Credit Investors, if european bonds have been well supported by the ecb and it looks that they would put more emphasis on the Corporate Bond program rather than on the nonsovereigns because of the limit of bonds out there to buy. David we always talk about mario draghi because he is very much the president. He has a number of people he has to please. How unified are they . Is it possible he might have to move a little bit more in the hawkish direction to keep his team on side . We have seen deflation risks have abated but we are not above 2 . We have not seen these inflationary impulses that deal with the hawks in the ecbs and now they need to be slow and steady. If they did a taper tantrum, looking back at 2013 and the experience the fed had, if you have real rates exploding in that manner that would offset a lot of the gains in the program we have had so far so i do not think it will be that hawkish. Jonathan the data just is not there, inflation is not back to target. Is this more about the technical constraints of the Bond Buying Program and less about the data and improvement in the european economy . Pierre i would still classify it as a move from extraordinary measures to more ordinary measures in the sense that quantitative easing has been a massive support for the Government Bond market appeared we are running into technicals, but i think at this point in time if you look at real rate, they are very low whereas we have seen real gdp growth improve a bit but still at relatively low levels. Inflation has picked up but it. S by no means close to target i think for me it is more about a move from extraordinary to more ordinary levels of stimulus. David we are going to get the decision but then we get the News Conference where mr. Draghi talks to us. What will you be looking for at the News Conference and in particular, is his main goal not to tell us anything to keep his options open . Jordan of course, every central bank wants to keep their options open. We will be looking to see if the emphasis on Foreign Exchange is a basis. Press conference the mention of currency was there and much more frequently more frequent. There is no need to signal any need to go in any direction. It has been carefully stagemanaged. Nine, there 30 to will be some people who are surprised but the total size of the package will probably be roughly the same and Forward Guidance will be unchanged. It is hard to give any color that people do not know. For me, i will be trying to figure out if the rate rising shifts. , q1, for one rates will start to shift higher, if draghi pushes that further into the future that will be a euro negative and something we will be looking out for. Jordan rochester and pierre bose sticking with us. Coming up, bob shanks. We will talk to him about his callers earnings. Disappointing trading results, we will hear from barclays jes staley. We want to see a better performance. It is not impacted our market share. Our market share has held in given what the other banks have ane, but all of us expect return to more normalized levels of volatility and volumes. Emma this is bloomberg daybreak, i am emma chandra. It is now all but certain that opec and its allies will extend Oil Production curves next month. The saudi round prince tells bloomberg he wants to limit that the limits to stay in place the Saudi Crown Prince tells bloomberg he wants the limit to stay in place and he wants to make a commitment to cutting costs. According to a person familiar colonye situation, capital is no longer making a cash infusion into the weinstein company. They have been losing projects after a number of women came forward to say Harvey Weinstein harassed them. Deutsche Bank Reported a 30 drop in thirdquarter trading revenue, choices much as the decline of its u. S. Rivals. We have actually been holding , especially in fixed income markets where this quarter we are down 24 . If you put together our fixed income and trading and our trading segment, it has been a difficult market for everyone. We held share in that market. Emma john cryan has struggled to deliver on a pledge from last march. That is your Bloomberg Business flash. David barclays is another European Bank reporting earnings. In fixed a 34 drop income trading, jes staley says his he remains on track. We closed a noncore business in june of this year. That had about 23 billion pounds of riskweighted assets in it. We did incorporate some of that assets back into the corporate and investment bank. For that, our markets business was down about 25 . Still, it is not something we want to see a better performance. It really has not impacted our market share. Our market share has held in their even what other banks have done, but clearly we expect more normalized just a return to more normalized levels across the Investment Banking space. To finish off, you have been in these markets many years and have seen highs and lows and lived through the crisis. What irks you the most . Record after record in the s p or the mind of betting against volatility, 2 trillion . 1. 4 trillion was the number the market had against subprime so jes staley, are you worried about markets as we go into the back of 2017 or should i join you on a parade . Ofi think we are coming out a historic experiment in using Monetary Policy to try to drive economic growth. We have been running with very low levels of risk free interest time. For a long period of that does funny things to asset values across all markets. As we begin to unwind that molotov policy Monetary Policy we have to keep an eye on dilations across the market. That was jes staley speaking to manus cranny earlier today. Jonathan in the markets, there is nothing impressive about this. Deutsche bank and barclays stocks treading lower. Thirdquarter results found trading revenue found more than x fell more than expected, exceeding the decline by u. S. Peers. Tice,g us now is Jonathan Bloomberg base bloomberg banks analyst. Revenue drops of around 30 Percentage Points at Deutsche Bank and barclays not great. What me through the significance of that. Of them say both they are maintaining market share when you put the finance in so from the sales and credit perspective they are struggling. Barclays said earlier they are going to leverage an extra 50 billion from the Balance Sheet to put into ci be to generate to generateib returns. This is an interesting time, qe unwinds. You are putting more risk on at a fairly unknown period in history. Deutsches end Barclays Barclays the trading at both of them was roughly as weak. Jonathan jes staley would probably say you cannot cut your way to growth and growth seems to be the story. How many quarters today have left and how much patience is left amongst the Investor Base at this point . , ifthan t. the problem is you look at barclays, they have got a 25 credit card market share in the u. K. Retail over here is very tough. Is the point of bringing somebody else in . You have got to give them a little longer but if once they were up allocated capital and we have not seen a dramatic improvement on the return of capital allocated, either approaching or at double digits, you would wonder. Jonathan we are in this low volatility regime. For jes staley and john cryan, will they continue to be disappointed . Will we remain in a low vol rating . Bank ini think any will struggle. It puts the emphasis on those names which have a balance of income which comes from more steady places, such as whether it is equity underwriting or wealth management. I think right now is the other colleagues have mentioned, it is something that we are going to have to bear through these kinds of markets for names which have more trading exposure. Jonathan jonathan tice of Bloomberg Intelligence and pierre bose will be staying with us. From new york city, this is bloomberg. David this is bloomberg, i am david westin. Ford announced its thirdquarter earnings, beating estimates on earnings and we welcome bob officer. Ords chief you beat both on revenue and earnings per share. How much of that is topline growth and how much is cost control . Is the vast majority of it good cost management, cost control. We had over 700 million of good ,ews on a yearoveryear basis so the team did a really good job in terms of delivering strong cost performance. What is encouraging is it was across many aspects of cost and also across several very important parts of our business. , andy excited about that see it as a down payment on our efforts to improve the overall fitness of the company. David that is a word the new ceo has used more than once. Is it too soon to see the jim hackett affect on these earnings . Bob i do not think it is too soon. I think this is a good example of the focus that we have had in terms of the overall fitness of the business and efforts of the team on a broad basis. There are a lot of work streams underway that would be more addressing, if you will, the way we do what we do so we think about it as redesigns as opposed to cost management. You will see some interesting things over the coming months and years, but i see this quarter as a good town payment down payment. Mixd you have a product issue as do all auto companies. As ford turning into a suv and Truck Company as opposed to a car company . Bob it is what is happening in the broader industry and it is not an issue, it is an opportunity because the margins are in general better. Consumers are moving away from cars to utilities and trucks, and certainly that is good for us because we have some great products on the utilities side, and a wonderful set of franchises on the truck side. That is good for us in an absolute sense. Inid one of the big shifts the Auto Industry is toward electric vehicles and mr. Hackett has been very clear he wants to move as fast as he can. Where are you in that process . You may be a half step the hind some of your competitors. Behind some of your competitors. Bob this will be a relatively long transition in the sense of Pure Electric vehicles. We will have a dedicated that are he electric vehicle and 2020 and we talked in new york about accelerating those efforts and doing more in that space. Willeally important period be in the next decade where you see the transition from internal more that engines the is electrified, including various types of hybrids and battery electric vehicles. Faster, willing that be increased Capital Investment or shifting away from internal combustion . Bob i think that will largely be reallocation. One of the things we did talk about is taking down the investment we have over the next number of years and decreasing combustion by a third to allocate our election electric vacation effort. David thank you. About 20 coming up in minutes we will break the ecb policy decision and 45 minutes after that we will go live to frankford for president draghis News Conference. We pulled back from alltime highs in yesterdays session, futures are positive. York, this is new bloomberg daybreak. Two hours away from the opening bell. Yesterday we have the biggest oneday drop on the s p 500 since early september. We are up about 1 10 of 1 on s p futures, dow positive dow futures positive by around 35 basis points. Rot very quickly in the treasury selloff. Balance story, going into that News Conference, 1. 18 almost dead flat on eurodollar. It is the story of two data points. Yesterday, gdp surprised on the upside. Today, a bit softer. The cbi index plunging at the fastest annual pace in eight years. It looks like a brutal chart. Is it noise or news . Lets look at the cross accent picture asset picture. The mostis one of anticipated European Central bank meeting since mario draghi became president. The ecb meets to discuss how and when the should end its launch largescale Bond Buying Program. Trump u. S. , president says he is thinking about giving janet yellen another term as chair for Federal Reserve. He would like to put his own stamp on the fed and at the same time he says yellen is terrific and we are obviously doing very well together if you look at the market. The leader of catalonia may be backing down. Call Regional Elections this week instead of declaring independence. Spanish authorities are finalizing their plan to oust the rebel administration. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am emma chandra. This is bloomberg. David today is the day for the budget resolution of congress, with the house scheduled to vote to go along with the senate approach