Sprint hits a snag. Mean . Ould this 60 plus holding in that business and a fixed income. Bnp paribas says it could not avoid trading slump that drag down its results. It banks cfo tells bloomberg leads to uncertainty. We are less than half an hour away from the start of european trading. There is a lot of stock stories out there to focus on this morning. We will kind of walk our way through it as we work our way to the open and get analysis as we work our way be on the open. At the moment, that looks like it will be a fairly flat one. We saw this did yesterday in the United States. Its used to be driven by this tax talk. Thats used to be the main driver. At the moment, we are looking at a mispriced to fair value. It will give us a very, very, very small open either way. So, maybe some markets down by less than 1 of 1 . Choice on that. The Market Makers have a stock specific choice. Let us talk about the gmm and what is going on around the world and give you an idea of what the picture looks like. First of all, the new Zealand Dollar continues to be under pressure. That is a story to keep an eye on. The reason for that is the new government looks like it is going to have an impact on foreigners buying properties in new zealand. Yesterday, some markets did reasonably well. The s p slid by. 3 . That seems to have been a taper tax talk that does seem to be doing that. Clearly, we have got a lot of politics and interest toward our way through the rest of the week with. A lot of data coming up from the United States and analysis of thursday, the release date for that feds name. Let us get a bloomberg first word news update. Here is juliette saly. Juliette thanks. The bank of japan has left its massive monetary Stimulus Program unchanged even as a trimmed its inflation forecast, signaling further divergence. Haruhiko kuroda and the board voted to maintain the yield curve control program and asset purchases. The vote was 81. Catalonias Independence Movement has been left leaderless as spain seized control. Have fled president to belgium without warning his partys senior members or giving any instructions on the way ahead. That has left separatists struggling over the next move with grassroot supporters enraged. In the u. K. , pressure is mounting on prime mr. Theresa may after defense secretary admitted to inappropriately touching a journalist. It brings the sex scandal swirling around westminster to be part of the government. Michael fallon said he apologized at the time for repeatedly touching the knee of julia brewer at a dinner 15 years ago, and they had put the incident behind them. Brewer said she threatened to punch him in the face if he did it again also downplayed the incident. The u. S. Treasury secretary has put to rest the idea of doubling in the 14. 2 trillion treasuries y might introduce that sales. Steven mnuchin said we have done a bunch of research and reached out and do not see a lot of demand for it. He said it may work under some scenarios. Pulled intoetting hollywoods controversy over harassment and abuse. That is after allegations that kevin spacey, the star of the Companies House of cards theories made a sexual advance to a 14 or old boy many years ago. Become an he plans to end the show after season six through the cancellation had already been planned and is not related to the accusation. News, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Guy. Guy thank you very much indeed. The u. S. Russia probe intensified as federal authorities revealed indictments against three former associates. A selloff in small caps and a rally seemed to be driven by tax reform talk than russia after writers were said to have discussed facing in tax cuts at the Corporate Tax level over a number of years. The president wanted it to happen over a number of years. There may be economic arguments for doing it in a more phased basis. This is the talk of the markets right now. Let us discuss both issues with Kathleen Hunter. She joins us now on set. A very big day on wednesday with the cap story. Kathleen absolutely. Guy we are going to get more details entered with the inevitable we would see things coming few like this that there would be a whole range of issues that the market does not fully understand and you kind of wonder what both sides are going to be arguing about . Kathleen we are still very much at the beginning, not the end of debate. They are coming out with the legislation tomorrow. It is not that surprising that we are seeing, you know, some of these initial legislative horsetrading happening. That is really what republican castrated rate is have to be concerned with now is what can get the vote passed in their chamber. We need room to negotiate latitude. That is what we are seeing with them talking about this phase that they might be looking at in order to try to get some additional load. Is probably the first of many potential changes we are going to see through this process that will be contemplated. Guy do they care about the Market Reaction or is this more about a kind of knows count . Kathleen the Market Reaction carries a degree of weight. We see trump always tweeting about the stock level. Guy it is an important metric for him. Kathleen obviously. But when you look at lawmakers on capitol hill, they are really markets could be thrilled with the plane, but if it does not have the votes to pass, they are not going to be happy and nothing is going to get accomplished. The nos counting is where the rubber hits the road in terms of the lawmakers and what they are trying to put together. Guy what is the take away from yesterday on the russia probe . Kathleen the big takeaway is we now know that, specifically, folks within the Trump Campaign did have contact with russia and sought to get dirt on Hillary Clinton dating back to march 2016, and so, who knew what went . Papadopoulos, who pleaded guilty yesterday, for making false statements, the about house the white house is downplaying his role. If you read through the plea document, it talks about several highranking trump cabinet officials that papadopoulos said he gave the Justice Department contends papadopoulos gave information, relayed to them what he found out from the russians. The question is, what is millers next step . Drop . S the next shoe to who is next person to face charges or be called into . The special counsel . Into question by the special counsel . Guy is it easy for the white house to kind of rush to one side . But it is the underlying story, as you say, after the russian relationship, that people are tried to finesse this. Kathleen even though the manna for it having been the former Campaign Chairman the real potentially damaging from yesterday with the papadopoulos plea because that is much closer to these allegations of russian collusion. Through that read plea document, it really reads like someone is laying the foundation for a case, a further the of collusion between Trump Campaign at some level and, you know, russian government officials. I think that is really kind of the more damaging aspect of yesterday Going Forward for the trump administration. Guy thanks very much indeed. Bloomberg Kathleen Hunter joining us from the latest coming out in washington. The reaction to all of this. Marc renfield joining us now. Ways, the headlines about the russia investigation is somewhat of a distraction. It seems like the market is focused on this tax story. Delayeed, the potential is coming through and a bit more damaging to the markets. Equity markets are pretty much got used to the idea it would happen this year and it would take be a significant boost for investors, but as you told them, it has to be spread over several years. A little bit disappointing on that side. In terms of the russian investigation, obviously what investors will be concerned how much time does the president need to spend away from the business of the country . If it is keeping him away from implementing new policies and working on a better tax plan, that is a concern to investors as well. It just for the cap story, is that for some sectors of the market. It may not be bad for all sectors of the market inasmuch as it may be prolonged the rally and may be not quite as dramatic. It may be good for emerging markets. Is this a zerosum game here. Is the market losing out . Marc probably in the shortterm mark probably in the shortterm, we see the market go down a bit. People start to look at which sector has underperformed in which one can catch up, which one has better prospects. You will start to see the switching. It is the right time of year for that. Fourth quarter is a time when people naturally will be making big adjustments in their portfolio. As people look for undervalued sectors, everything will look at again in a few days time. In the shortterm, i think it is a general disappointment for the market. Guy one final quick question. Was the market right to not panic about the catalonia situation or is it more nuanced than that . Honestly, i think the market was a bit surprised at how quickly it wound up. I think there was a moment at the end of last week when people thought it was going to spill out of control, and you could see the equity market in spain was looking very nervous. But suddenly, it all seems to have evaporated. I think investors are very pleasantly surprised that it is going into the background. I think people were getting ready for a bit of serious damage to spanish bond and equity markets. It is not going to happen now. Guy it is interesting to see him showing up in brussels and the brussels reaction to that. Mark cranfield, thank you very much indeed. You can follow mark and the rest of the team all morning, overnight. Fantastic on what is going on and the smart analysis. Mliv on your bloomberg. Up next, talking to the third advisers. Largest we will bring you that story, the airbus story. There is a big emp banking story we need to talk about as well. This is bloomberg. Guy 7 45 in london. A Bloomberg Business flash. Here is juliette saly. Juliette bnp paribas has not been able to avoid the trading slump that dragged down the results at its biggest u. S. And european competitors in the third quarter. Income from trading bonds, currencies, and commodities at the french bank fell from a year earlier. While it did increase revenue from buying and selling all, its Global Markets business posted the lowest Quarterly Sales and almost two years, missing analyst estimates. In the past quarter, there was some uncertainty in the market. That is why some corporate waited to see what was unfolding. We will have to see how that goes forward. It is not impossible with the clarification that that tapers getand therefore that we some more normal kind of revolutions. Juliette airbus has reported a 4 decline in thirdquarter profit after the company said deliveries of it play in will miss its annual target as engine glitches continue to afflict the jet. 697 million euros, beating analyst estimates. Ryancare gained 11 ryan air gained 11 . More than the cost of a Pilot Shortage that triggered a flight cancellation for 700,000 passengers. Income rose to 1. 2 9 billion euros. Morgan stanley has dropped out of an industry record that allows Financial Advisors to the worlds biggest brokerage by advisor counts of the agreement known as the protocol for broker repleteing has become with opportunities for gamesmanship and loopholes. Morgan stanley added member firms have joined and dropped out of the deal or changed scope when included them and that is your Bloomberg Business flash. Guy data dropping in france. The cpi number look largely in line, annualized at the figures year on year. 1. 2 , up a little bit. Every little bit helps. Up from 1. 1 the last time around. The french data dropping as we speak. The output gap remains of a thing a focus in europe. It remains something of an issue as we look at the wider measures of employment. Let us talk about what is happening in the telecom sector. Talks between sprint and tmobile appeared to have hit a serious smack. People familiar with the matter said the Parent Companies of both businesses cannot see past differences when it comes to valuation. Board members of sprints owner, softbank, giving up control of the unit. Let me show you the share price. Shares falling. Germany has closed. It is 500 years since martin luther, reformation, etc. , etc. We are going to see no trading today in the german markets. It is a big day for the german telecom. Let us talk to our Asian Technology editor out of hong kong. Robert, what is the problem here . Robert it is going to come down to parts. Tmobile,ave is with which is controlled by deutsche telekom, that is worth 50 more than sprint. So not surprisingly, the Deutsche Telecom side of things, they want to have majority of whatever it ends up being. Sprint, under the ceo who has the have it of doing deals, to be in control. It is going to come down to price and you get to call the shots. Both of these companies have a very rich desire to do a merger that if they can agree to who will be in charge, is going to stall like we are seeing right now. Guy is this negotiating tactic being used . Or is this something more fundamental . To say at is hard this stage. It certainly seems to be more than just a negotiating tactic. The arguments that sprint have been putting up and the softbank side of things, is that even though it has a lower market value and it has got fewer subscribers, it has a variable spectrum. What is going to be important for rolling out services across the United States and giving a competing with verizon and at t, so while the different,ation is sprint have long argued they have a very important asset that will be recognized. As something they do not want to give up, and are not getting any signs they are willing to give up on that just yet. Guy if i am sitting on a Merger Arbitrage agreement. I am figuring out how to prices one. If i have gone 100 the deal is going to get done to 80 the deal is going to get done, or am i way off those kind of figures . Robert you probably are still above the 50 market. 50 mark. The other wild card is the antitrust authorities of the united rates under the previous administration. They certainly pushed back on this and it remains to be seen whether the trump administrations regulators will be more open to it. The fact that they are still talking to each other and trying to negotiate a deal is a fine they are committed to trying to get something happen. This has been dragging on for months and it is something that will lower the odds of a successful completion here. Guy robert, great stuff. We will watch with interest to see how this one develops. Editoran technology joining us out of hong kong. Minutes away from the market open. Remember, not only is it halloween today, but it is also reformation day. Those sortears since the brakes with catholicism. That means the german markets are not trading today, as a result of which, we are not going to see much reacting, but we will see reaction in airbus. It continues to have problems. Problems on the 320 line. We are watching to see how bnp is good to open the 20. Well see how ryanair is going to open. Plenty of stocks to watch. We are going to talk about those, next. This is bloomberg. Guy welcome back. Five minutes to go until the equity markets open. Germany will not be opening. Let me keep reiterating that for you. We will not see trade in german stocks today. Bnp paribas out with numbers. The gravitational effect of the problems we are seeing when it comes to a lack of Trading Volume and volatility does seem to want again be having an effect. The thick division did not do well. The i think a result had intact from that. They are sticking with it though. That is interesting. Wpp is downgrading its estimates. Keep an eye on it at the beginning of trade. Stock that comes under pressure this morning. Airbus still having problems with the 320 line as a result of the engines. Still having problems with the 350 line. Keep an eye on bp this morning on the back of its numbers. Keep an eye on this this morning. Looks like they have cut them. So Pay Attention to that one as well. More broadly, equity markets dont look like they are going to go anywhere in a big hurry this morning. At a headline level, seeing some of these indices really flatlining into the open. Take a look at the apple supply chain as well. At could be something worth paying attention to. Apple was the reason the u. S. Equity markets did not do as bad as they did yesterday. Anyway, the market open, four minutes away. Is bloomberg. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. 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. Welcome back. Yesterday we sell the tax story dominating u. S. Trading, sending u. S. Markets lower. We are called up and down by less than 0. 1 . Remember, the dax is closed today. That is why you see that little bit of red there. That does not relate to what is happening today because that market is not becoming a reality. There are a lot of stocks to watch out for there. Paribas, that will be a featured story today. Weir out this morning. Bp is that with numbers. There is a lot going on. Plus, we have got the Deutsche Telecom story. The market is beginning to open up. Lets look at the numbers. I have swapped out the dax. As you can see, we will get a quiet open, as anticipated. The ftse 100, barely budging. By 0. 1 . Up paribassee how bnp trade this morning. Bloombergs fair value calculation is kicking out the right