The fed kicks off a swathe of Central Bank Rate decisions. Will the dots deliver a more hawkish message . Delivers. Day of trading. We will take you live to the uae for an update. Matt as you alluded to, we may see a delay in the open, we will see a delay in frankfurt. The trading system has been disrupted because of technical problems. X is experiencing serious issues. Delay, aoking at a likely delay. We do not know how long it will take or if it affects all assets that we will see delays on the sessions eurex trading. Lets take a look at where the futures are pointing us. You can see that the ftse futures are virtually unchanged at the moment. You will see in a moment rates look the same. Down. 1 of 1 . Take a look at the treasuries. 2. 3976 field. It has moved sideways since the close of trade yesterday. This is a three day look at the treasury yields. Not getting a lot of direction from there either. I absolutely. It could affect other markets. Austria could be affected. I am told ireland potentially being affected by this outage. About thealking underperformance we may see from the ftse 100. It did reasonably well yesterday going to the 75 level. We closed on the ftse 100. Rostoxx up. Norway is outperforming. The us trillion dollar is bid, the dollar is on offer but only just as a result of what we have seen in alabama and we have the, space. Bid this morning. Trade down by 1. 9 . For the commodities a mixed picture in terms of the metals and energy. What are some of the Energy Stocks . Lets get a bloomberg first word news update. Heres juliette saly. Juliette the European Union has warned the u. K. Against rowing back on the agreements it made last week. The block was on alert against britain trying to unstick the deal struck on friday. Europes leaders are planning to hand the u. K. The caret carro t tomorrow. Hollande sees possibility of striking a deal with the eu he cautioned the block has certain red lines. A trade agreement is always possible but it needs to be clear that it cannot happen at any cost. There have been discussions over the past year and they have continued and there are certain points that remain extremely resolute, for example might agriculture and what one would call cultural exception. The Donald Trumps position on trade agreement is not encouraging going into discussions with europe. Juliette oil has resumed its advance. Crude stockpiles dropped for a fourth week. Inventories declined by 7. 3 8 Million Barrels last week. Government data do today is forecast to show supplies shrank. Major steps have been taken to support the market. Thate significant progress we have made together with our nonopec friends eight in the oil markets to return to stability. Seeing thisnuously across all regions. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Guy thank you. Or jones has won a stunning victory against republican roy moore in alabamas state elections. Senate election. With all precincts reporting jones led by 49. 9. It has not elected a democratic senator since 1992. The victory narrows the gop advantage further making the task of passing attacks builds a buy a tax bill even tougher. Upset. A big lets focus on what it means. What does it mean for the president s agenda . Kathleen everything will be that much harder. They had a two seat majority in the senate controlling it 5248. Now it will be 5149. Every time you try to do willhing all of that rethat much more difficult because you will have a much slimmer margin for error. Like we saw over the summer when they tried to repeal obamacare, they were not able to keep republicans on board. That task will get even more difficult. Matt what does this mean for the tax legislation as it stands now . Do they still have the ability to push this through before roy moore comes in . Kathleen we saw Chris Van Hollen calling chaim calling for him to be seated. It depends on when the vote happens. One thing to watch is whether there is controversy, whether republicans are a bit cheeky and trying to put off seating jones until they pass their tax bill through. Democrats will balk at that but that is a dynamic to watch. Guy what does it mean for midterms . Kathleen they are bold heading into the midterms. They just won a seat in the most republican of republican states. Special elections are different from midterm elections. There is not a National Wave and a special election. Who comes out to vote. Usually it is the side that is the most motivated. That could have been democrats. It looks a get was democrats. It is something that democrats will take as an emboldening development. They will feel like they have the capacity to pick up republican seats across the country even in the most conservative of areas. I would temper that encouragement by saying what happens in the midterms is not necessarily going to correspond with what we saw in this microcosm of the case in alabama. The me toothis movement in the u. S. Rooting out in congress,avior business, and hollywood. It has affected almost everyone a sitting a few senator and someone who is running for senate. Everyone except for the president is affected. Does it add momentum to that issue . You see in some ways both sides of the argument. In some ways it as momentum because it shows that there could be consequences for allegations of Sexual Misconduct not just for people like al franken or john conyers. Voters might impose a penalty on type ofwho these allegations are lodged against. The republicans, some of them might be breathing a sigh of relief. Great into the background rather than have him be an active member of the senate, some are hoping that will give some breathing room to not be tied to him, likes and time. Matt i am sure we will talk much more about this. Coversn hunter washington for us from london. We will go to singapore and mark cudmore is said to talk about how this will affect markets. The first thing i saw was the dollar was falling on this. How does this translate to a move in Asset Classes . Mark from this two things to Pay Attention to. A negative for the Trump Administration for next year. Positive for the democrats and it will make it hard for the Trump Administration to get further policy past. Lets ignore the tax situation for the moment. It is a negative for the dollar. Some of the hope for those things that mike it pass might get past less likely. We could still get tax policy past before jones takes a seat which means it may not derail the tax fund bit but people will worried the tax fund is brushed. There were hand scribbled notes in the margin. There might be some mistakes, things might he done to quickly without due process and without assessing the impact. I think it is a impact. They seem to be rushing it through superfast because they do not expect to get it passed in the new year. If they are going we know this will not pass when there is a new majority so we need to rush it through now. Passes, itefit still is positive for the dollar and equity and yields are higher. It does provide more data and is taking some of the sheen off. Guy lets talk about what is happening with the fed. How is the market set up for the possibility of more dots, higher dots after today . I am seeing an increasing number of people talking about the idea that the market is coming around to the idea of four fed hikes not three. The market is at two. It will be surprising if janet yellen given that she is unsure that the low inflation is transitory, it will be a strange time for her at her last press conference to go much more hawkish. I think we are betting on a thinkh turn and i do not there are people betting that way. Some people are going the base case is standard, stay the course. There is little to lose betting and on a hawkish turn. There probably are a few positions that we but not many. Matt you have a piece out on brexit that says it is a nonnegligible chance that we could not see of brexit. A brexit. It is possible brexit does not happen. Why do you think that is more likely . Seen the steps forward and negotiations which seem like major progress but it is clear we have not made much progress in terms of what the two sides want. There are two major sticking points. The eu are not giving away a cheap trade deal without allowing Free Movement and defending citizens rights. The u. K. Once the same trade deal but without Free Movement. The other one is the irish border. They have fudged. The dup and Irish Government red lines. I do not see how we can get a brexit deal. If there is anything that both sides would want. If there is anything but the softest of soft brexits and that might be the u. K. Has done a brexit therefore it gets no vote in the future path of the union but is subject to all its rules. Worst case scenario. I do not see how the government would be able to make their supporters swallow that deal. It is increasingly going to look like a no deal brexit. Once the population, this is slowly gaining traction. Once the public loses that it is looking likely it will get a no deal brexit. Brexit will start to rise. It is a nonnegligible possibility. It cannot be a base case but it is a small possibility that is rising all the time. Despite the fact it looks like negotiations are progressing we will see more people talk about exit being scrapped. Not quite so easy to see on live television. On yourfollow them bloomberg. We had a flash about the open. We have been having issues with zetra open. E we are counting down to the oven and 15 minutes time. Distribution shares soaring as the retailing unit begins trading and abu dhabi. We will take you live to get the details at the security exchange. The market open is 14 minutes away. This is bloomberg. Guy 12 minutes to go till the start of european trading. Here is the Bloomberg Business flash. Indetex has boosted store efficiency and remodeled shops. Operating profit rose to 3 billion euros in the nine months analystoctober matching estimates. Revenue reached 13 . Toshiba and Western Digital have and a dame monthlong legal spat that has threatened to derail the sale of the flash memory is of and cut the u. S. Company off from a future supplier of new products. Toshiba is dropping claims that were aimed at stopping the sale by a Consortium Led by in capital. Its legal claims against Western Digital. Airbus faces the prospect of having to find a new leader after the ceo has reportedly decided not to stand for a third term. Aro french newspaper le fig said he will not renew his mandate. The news sparked a leadership contest as they grapple with a bribery probe and flat demand for its biggest airliner. A spokesman called the report your media speculation and said no decision had been made. That is your Bloomberg Business flash. Thanks ray much. Lets get back to the breaking etra tradingng the z system. Angela runs the midcap stock coverage. What is going on with Trading Systems . Angela we are still trying to is to the autumn of what behind the disruption. The central system has been experiencing technical problems. Eurex has been experiencing problems. There will be a delay. Guy which markets will be affected . To open on is likely time. How will this affect germany . Angela it is difficult to say. We do not have clarity. It issued an emergency trading update. Saying that the opening of the Trading Instruments state opening auction has opened, should have opened at 845 cet and clients should check nonpersistent orders and the aware that could be delays for some products due to manual state changes. That is as much as we know right now. Matt right now i see on the piece, seriousg issues are being decided by them. We note anything else other than it is serious . Angela they have toned that down to experiencing issues might technical issues right now. The serious seems to have disappeared from the language. Itther they are resolving remains open. There has been a change in the language in the last few minutes. Guy we will look forward to seeing what happens in a few minutes time. Angela collins giving us the latest on the story as she has indicated, the market open eight minutes away in europe. Or may not happen. Could be further away. Selling at 16 . The Parent Company raising 851 million by selling a 10 stake in the unit. Bloomberg markets of sick executive editor Tracy Alloway joins us now. The firstpected to be in a wave of ipos. We should put that into context. What does today signal about that pipeline . Tracy this is the first in a wave of listings expected to come from National Energy champions. In the gulf we have these state owned nationalized companies from the 1950s to the 1970s onward. They are expected to sell stakes drasticternational and investors. Saudi aramco is the most highprofile talking about eight to two in dollar valuation which will make it the biggest ipo in totory but adnoc has managed beat them to the punch. There are a couple of key differences. Adnoc is listing a 10 state gas redistribution business where saudi aramco plans to list as a holding company. The Current Trading we are being in the valuation will closely watched by anyone who wants to get a piece of that middle Eastern Energy complex. Matt what does and not do with the cash that it is raising here . Tracy they have lifted their shares at 2. 5. We did that had see that pop up to 2. 9. It has pared back to 2. 7. This is not a company that is strapped for cash. It is backed by some deep pockets in the form of the abu dhabi government. What this is about is sending a message about the future of abu dhabis National Energy giant as well is the future of the abu dhabi economy itself. Noc is open about how this is about attracting investors. It is part of the transformation of the company and they will talk openly about how this means have to adhere to International Reporting standards and they have to publicize their financial results. That is a huge change for a company that has been nationalized for the duration of its history. That is the message here. This is the glasnost moment for adnoc and abu dhabi itself. Matt thanks for a much. There at the glasnost. A minutes away from the start of trading. We could have some delays in frankfurt. Should open onn time. Clothing of the zara chain, revenue rose and also in the Third Quarter earnings rebounded from a threeyear low at zara. Things are picking up. Guy keep an eye on airbus at the get go of trade. There is your media speculation that they will not the ceo stand his role. There is a scandal swirling around this business and tom has been impacted by that. There is speculation as a result and he may not continue post. It will be interesting to see if this ends up affecting the stock at the get go of trade. I am looking at the wei. Reasonably. Ing the market open is next. This is bloomberg. Guy one minute to go until the start of cash trading. Lets talk about the background. The cable rate, absolutely flat. Remember, we get wage data later today in advance of the banks decision. We have the fed coming up today. The nikkei, closing down by your point but present closing down by 0. 5 . Oil is trading up by over 1 this morning. The s p 500, a fairly flat session. Lets show you what is happening on the wei screen. London looks like it is going to outperform a little bit, but elsewhere, a slightly softer open, down by 0. 2 . Lets check the numbers and see if we do get an open. The picture tells us things are green. The ftse trading around this 75 level. We think it will be down. 1 to. 2 . This is what the energy story looks like. We are expecting pretty much Everything Else to open down. 2 . There is a report out of italy this morning that we are now going to be seeing the election happening on march 4 and department will be dissolved just after christmas. Just be aware of that for the political backdrop. We now are able to start pricing that in. The dax, down by. 3 this morning. Lets look at what the imap shows us. We see some weakness in the key sector in europe. Energies are trading down. I would have thought energy had a slightly better bid this morning. The oil price is up this morning. Bitrials actually showing a of strength year. The general picture around europe, and the financials are a big chunk of it. Health care alsoo trading softer. Imapajor parts of the are trading down this morning. Matt, what are you seeing . Matt im surprised because we do see crude up 1 . 1 . Num nymex, up 3 4 of take a look at the down side. First off, you see some of the banks here. Bnp paribas is down. Santander is down. Also on the downside, royal dutch shell. So, integrated oil not benefiting from the boost in crude prices we are seeing today. Switch over to the winners here and we see one big bank at the top, hsbc. There, after the big action yesterday, buying westfield for almost 16 billion. And then you see glencore and a Anglo American winners. Some of the Mining Companies are adding a little bit to the stoxx 600 this morning. Now, republican roy moore, switching back to the u. S. For a second, but something that has affected assets around the world has suffered a stunning defeat in the alabama election. Doug jones became the first him that theo win a senate first democrat t doug jones became the first democrat to win a senate seat in alabama since 1992. This makes cash reform tougher to get through. The fed will announce the final policy decision of the year, expected to be an increase in rates. The market has priced a 99 chance of a hike. The focus will be on Janet Yellens post meeting address, and the dot plot project since. Oining us is Michael Metcalfe. Let me first ask you about the roy moore issue. It has affected the dollar this morning. It has affected other Asset Classes. Treasuries as well, as it looks like it mig