Friday session. Down by one point 5 today, we had the Catalan Parliament voting to implement an independent state. Spain senate giving spain the power to take control over catalonia. The plot thickens, the imf down by 1. 5 . The stoxx 600 is up for the six week in seven. The euro down for a second consecutive day, over two days since the ecb announced the whole roster news yesterday. The euro down almost 2 . The biggest today declines in september. We have the 10 year rising today. , weerday, with the reverse saw european bond yields declined on the back of the ecb news. I just want to get to ubs today, chief executive Sergio Ermotti reposting expectations for a share buyback. He talked to down the prospect of dividends increasing proportion of the profit. We saw shares lower by 1 and also subdued client activity in the fourth quarter. Revenues increasing across International Wealth management, net margins and measure of profitability. Little changed from the second quarter. A busy couple of days for european banks. Iag, the Parent Company of iberia and British Airways falling as much as 7 today. The biggest decline since the day after the brexit vote last year. Struggling to raise ticket prices at the same prices at the same pace as rivals as the Airline Group boosts longhaul Budget Options to counter tougher competition encore u. S. Through. Shares getting hammered to down by almost 7 . On the flip side, we have linda today, thirdquarter profit beating estimates providing a solid footing as the german triesrial Gases Company to get its merger in place with partner praxair. They are trying to appease regulators to divest billions of dollars worth of companies, there are about to start this 12 month countdown during which they have to announce significant disposals and order to win antitrust approval for the 41 billion tied up. They are attempted to create the worlds biggest supplier of Industrial Gases and overtake their french rival. Linde up. Ay in julie earnings and technologies are up. The dow is somewhat lackluster today, the big winners are in tech. The nasdaq up 1. 5 , a sharp contrast with the dow and the nasdaq 100 in which the largest cap tech shares are concentrated, its performance is more notable come up by 2 . Really quite a divergence in todays session. As you know, many of the biggest cap tech stocks are up with earnings in many of them are trading at records. A record for amazon, intel, at a 17 year high. Not quite a record. Highlights from various earnings reports from amazon coming out with net income the by a wide margin. Sales up 34 and analysts are pleased with performance of whole foods postacquisition as well as the companys cloud services. Speaking of clouds, microsoft performing well in that business as well. Revenues surging by double digits and microsoft topped estimates for the sixth straight quarter. In alphabet. Thirdquarter sales beat earnings estimates as well. Youtube and google momentum doing well. Intel pushing into new products that is helping boost sales and earnings, although there is an outlook for perhaps that momentum to slow to some degree. This looks at the performance of various groups in the s p 500 year to date. No surprise from the top performers tech. This white line your the s p 500 tech index, its performance this year now about 34 . The s p at 15 , so there you see a divergence and outperformance. Speaking of divergence as well, as weve seen largecap tech surge on earnings, its been a different story for other areas of the nasdaq, and thats biotech. The julie performance of the nasdaq biotech index down nearly 7 , and some of the Largest Biotech Companies have been underperforming over that time. Disappointing zoning report yesterday, it went out with earnings late yesterday with gilead, numbers beat. The companys guidance for the hepatitis medication is leading some to be somewhat more cautious going into next year. In barcelona, cattle lawmakers have voted for an independent republic. In madrid, Spanish Senate voted to revoke catalonias autonomy. The Spanish Government bonds have dropped, pushing up the yield spread to the widest in almost a week. Both sides play their highest card. And thedeo in barcelona european government reporter in madrid as well. Maria, talk us through the last hour of what the reaction is being where you are standing. I can tell you the regional president has blessed the catalog parliament. There are no flags has blasted the catalog parliament Catalan Parliament. There are no flags flying your. Here. If you go out of the parliament, thousands of people are expected to surge on the n Catalan Parliament. People said now the republic is here, is our duty to defend it. People in barcelona say is our time to defend the republic. Lets listen to catalonias president. Today, the parliament, a legitimate parliament, which is the result of elections, has taken a longawaited and long fought step. Have filled a mandate which is validated by elections. That was the catalonian president speaking after the vote. N, the senatebe voted, giving him the power to seize control. Will it be a peaceful takeover . En thats probably the 6 million question. Cabinet had a next ordinary meeting this evening, theyre going to work out what to do. Government for the is that they want to make it a gradual takeover in catalonia. That the byword throughout this process has been a proportional response. They want to avoid the violent scenes they saw october 1 when i try to shut down the illegal referendum. They do need to restore their authority in catalonia and do it quickly. A few months ago from the u. S. State Department Statement which says the u. S. Supports spains efforts to give the country united and up United States enjoys the great friendship and Enduring Partnership with our nato allies, spain. Well cut loan you ever get outside recognition will catalonia ever get outside recognition . Or will they turn into one of these invisible countries . Ben i think it will remain part of spain. Thisost likely scenario is will come to seem like a strange elipses in the countrys history. They dont have proper control over the administration and they havent established that their Authority Takes precedence over the spanish state. The most likely thing is that over months, madrid takes people onmposes its the Catalan Departments and we are more elections to return catalonia to some kind of normality. To ben vonnie thanks sills and maria tadeo. Hes enjoyed great relationships with various parliaments and governments, and a banker to the world. This get did they let so difficult to get to a faceoff point . I was with him in new york five years ago and at that point in time, he knew that his biggest problem in his mind was not the economy. Change thehad to economy. He knowledged his biggest problem is going to be catalonia. People have been surprised hes let the thing get this far. In 1935, 1934, the president of catalonias Regional Government tried to declare independence. And thatrown in jail was one of the preludes of the spanish civil war, which was terrible and led to francos invading from north africa. Did, hehe reasons he said he invaded to fight communism and to keep spain whole. This is something that needs to be taken i think quite seriously. That he will have to be careful how he influences this. Tosays he will go parliament and stay there and they want to drag him out. This has to be handled very carefully because they end up having to send troops in or nationalize the police, this could cause real problems, even though its not clear that you have a great overwhelming majority of voters. Vonnie 2 million of the 7 million in catalonia voted yes. And not even all the catalonians registered or took part. What concessions could he give to the catalonians . Handout the olive branch . At some point, this has become friendly again. Bill he has to offer more autonomy than he already had. I was not in barcelona, but theres a strong feeling the rest of spain absent the situation in the basque region, where they are following a very carefully. Spainncern of the rest of is that if too much is given to catalonia and they are allowed to much in the way of independence, then the Basque Country will also insist on it, and you can see some unraveling in spain. I think what hes got to do is sit down and try to see if they can extend more autonomy and then have a vote. I think you should call elections immediately and find out exactly what the people of catalonia want. Because that referendum as you point out was just 2 5 of the population, basically. The calling elections i think is the key here. In both parties have to agree to do it. Spain has been one of the stars, if not these star of the eurozone economically in recent years, growing by 3 . How much damage is this saga going to do to the economy . Bill if this goes on much longer, it could have a damaging effect, because two of the largest banks, and the thirdlargest bank is domiciled in catalonia. If thisave problems thing isnt resolved in a timely fashion. You dont underestimate that. Vonnie, as an irish woman, you howmber your own history of britain denied home rule for ireland and ended up in the 1960 eastern rebellion easter rebellion and led to independence. These are things that have to be taken very seriously in the only way around them, including the arrangement between Northern Ireland and the republic most recently is to sit down and have a realistic negotiation. , they are talking past each other and not sitting down at a table to get a deal done. Mark do you expect a different response from the European Union . The European Council president said just after 3 00, around the time of the vote in catalonia, i hope the Spanish Government favors force of argument not argument of force. But clearly the eu stands behind spain. Do you expect that to change . What would cause a shift in the eu support of spain . Come back fromng france, where i had a chance to talk to several people in government, they fully support spain because you have the situation of flanders and belgium and the recent vote in northern italy. Thats a great concern this not be allowed to get out of hand. On the other hand, theres a limited power tolerance for violence. In europe. People want to see violence. Its very difficult. Right now, the Popular Support all over europe and the u. K. Is favoring the Spanish Government. But if you have asked of significant violence here, you could have a change of opinion. Ceo of wl rhodes, william r wrote scrollable William Rhodes global advisors. This is bloomberg. Vonnie live from bloomberg and quarters in new york, im vonnie quinn. Mark im mark barton, county down to the european close. Ubs raising expectations on a possible buyback, the swiss lender reported a thirdquarter profit rose and Capital Markets rebounded and chief executive Sergio Ermotti spoke with bloomberg television. Sergio ermotti we are looking to continue to implement progressive policy on our cash dividend. And eventually, complement that with capital returns through share buyback. But its too early to talk about it. Mark ubs continuing its focus on Wealth Management them adding 2. 4 billion of new money. ,ets cross over the details elisa martone he is here. The market hasnt had a particularly strong day today. Mark there was a bit enthusiasm about dividend possibilities and then the enthusiasm for buybacks and dividends, more of a reality check . The strong red across the board, which is a testament of how they have been able to diversify. The outlook isnt all that much the type ofrms of trading that would benefit them on the Wealth Management side. Mark did a wonderful piece a few weeks ago, its bearing fruit. They had one of the strongest performances. Compared to barclays endorsement and deutsche bank, they are underwriting their derivatives. Mark on the derivative side, Investment Banking down by 24 . Note for a dividend, its a bit further away from the ability to pay a dividend. It was a capital story today on the common equity. That key measure of financial strength of people look to, the bank needs to bolster before can be giving money back. Martone on finance and investing. Vonnie shares of barclays after as the bank renews allegations it sold toxic margin mortgages. More on that, next. Live from vonnie bloomberg headquarters in new york, im vonnie quinn. Mark im mark barton. The european close a minutes away. Barclays in the u. S. Just to promote the sale of allegedly toxic Mortgage Securities a decade ago. People with knowledge of the situation say the two sides have revived discussions about reaching outofcourt settlement great Stephen Morris broke the story and he joins us now. Why is barclays seeking a deal with the Justice Department now, stephen . Barclays has been in talks with them until september when the talks broke down in the markets as you are asking for too much. We wont pay at a we are prepared to go to court. It appears now about 10 months on that theyve had a bit of a rethink and they are going to come back to the table and discuss settlement rather than face a protracted trial, which wouldnt start for number of years and may take even longer to find a conclusion. This looks like a natural thing for both sides. Already the shares were battered, and then it came in with trading revenue that was so far below estimates that shares are getting another battering. Is barclays losing clients over this . Clients aree looking at these headlines in thinking do i want this bank to continue being one of my major counterparties . Barclays is held steady at the seventh Biggest Investment Bank in the world. It says it wants to get up to six, which is still outside of the top five u. S. Banks. We will see. They hired a lot of people underspending a lot of money. Getting 50 billion next leverage to play within the division. Within the next six to nine months, the ceo has to show an improvement of performance, otherwise things are looking only good for him. Mark he was sued under the Obama Administration. People think the trump and administration wont be pursuing these are the same way the Obama Administration was. But these talks are preliminary and no figures have been discussed. No guarantee they will reach a deal. It does play a big part of the rationale. Mark how desperate is barclays to clear this up and move on . Stephen investors, the board, and employees are fed up about reading always scandals. They decided to pay 7 billion to settle this and get it out of the way and move on. Barclays went the other way and so they would fight and now it looks like thats mark they will read through brother banks who are ready to settle. Stephen the biggest one to come is the royal bank of scotland, owned by the taxpayers. They are behind barclays in the queue. Their ceo said today they are hopeful of getting it done before the end of february. Thats not that long. Mark daily is under investigation as well. The deadline was pushed back until september. Theyre waiting actually to find out the results of that. Mark Stephen Morris, thank you for joining us. 4 25 in london, take a look over european equities are headed. What a week its been. , for the six is up week and seven. Its been quite a week and a run over the last month. The ftse, the dax all rising today. I will leave you with a currency for a big week next week. The fed, bank of england, one of those two is forecast to raise Interest Rates i think you know which one. The closes next. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Mark live from london and new york, this is the european close. Im mark barton with vonnie quinn. Stocks higher for the sixth weekend seven led by oil and gas , also, technology with strong results today from the likes of statoil and to tell. The earnings season really gets into full beer in full gear. Lots of earnings in the oil better position to handle its remaining legacy issues after posting strongerthanexpected capital quarter, the third four years into its tenure. Rusnak yuan is making headway in turning run recipient of the biggest banking bailout during the financial crisis. The firm is still hampered by legacy misconduct issues, just operating profits fell 6 , shares up by 1. 9 . Today, clarion in the news, calling of their planned merger to create this transatlantic Industrial Chemical company, ending a victory to an activist investor that rallied other shareholders to oppose the deal. Shares are off their lows of the day down by almost 1 today. An Investor Group called whitetail holdings by mistake of more than 20 in clarion and other shareholders come to oppose the deal, making it unclear whether the company would get two thirds support necessary for the tie up to go ahead. The deal would have created a giant with the value of roughly 20 billion, including with annual sales of 13. 2 billion. It will leave both focus both companies the focus of t