Prime minister also proposes a three day schedule for the votes. Trade talks on track. President trump says negotiations between the u. S. And china are advancing ahead of next months apec summit. Will they be ready to sign a deal . And ubs Wealth Management assets reached a record high with rich clients adding nearly 16 billion in the quarter. Sergio ermotti strikes an upbeat tone. Still a very Challenging Market condition. Am glad we were able to grow solid performance in this difficult context. Matt less than a halfhour away from the european open, im taking a look at the pound. You can see threeday trade, maybe its more exciting if i put it into a six month perspective here. And bouncing1. 2975 along under the 1. 30 level. We have broken it yesterday for the First Time Since may 10. Take a look at futures. We saw this morning a mixed picture in futures, a lot like the mixed picture we saw in asian stocks. Dax futures and cap gaining. Ftse futures down. You see these numbers are so small right now. Really not getting a lot of direction indication from european futures. Further out, we have the u. S. Open coming. U. S. Futures are up across the board. Dowcan see 0. 1 gains on and s p futures. Nasdaq futures. By the way, you can expect to see some tech stocks here taking off at the start of trade as well. Boris johnson will find out if he has any chance of getting his breakthrough brexit deal through whether heand also can do so ahead of the october 31 deadline. The main action happens at 7 00 p. M. In london. We have what is known as a second reading vote on the governments Withdrawal Agreement bill. Joining us from outside is our bloomberg west mr. Anchor west mist and stir westminster anchor. What is the timetable if they go according to the plan . At 7 00 p. M. Ks off local time with the second reading of the bill. This is the first time despite the name that mps get to vote on the legislation which would implement Boris Johnsons brexit plan. We think there are probably enough votes just to squeak that one through. Of the about the timing passage through parliament. They want to push this through at a very quick speed. Three days. Thethat into context, wild animal bill took longer. Plans to force her highspeed brexit, this gives you an idea of the lever the level of anger in parliament with the speed. 31 deadlineober still applies to Boris Johnson. That is what he has to face the country with if he fails. Bill,it sounds like the the original bill, might pass. He might have the votes, just. But it could be delayed. We are hearing negative reaction the timetable, and it could end up looking very different, cut into it, with all the amendments Boris Johnson wanted. That comes at the next phase. Put is the transfer mps to their personal stamp on what brexit looks like. There is so much discord about what should happen. Boris johnsons plan is just one option. Voting could see is mps at a second reading only to lay down or support amendments at this later stage. Then what we could see as potentially demand for a Customs Union to be included or a second referendum. Thoses the chance to add as a way of frustrating the process. What has been agreed between the u. K. And the eu is fixed. If a customs amendment passes, Boris Johnson would have to go to brussels and renegotiate that. We end up at a second referendum. There is a certain level of support for that in the house. If we look at the indicative all these were given options. None of them commanded a majority. Customs union came the closest, followed by that second referendum. Matt thanks very much. Cache bloomberg westminster daily at noon. Here in berlin, richard, we are seeing gains in the pound. It is maintaining its strength. Does this mean Market Participants expect the Withdrawal Agreement bill to pass . What we are seeing the price action over the past week or so is that it validates the view that everything is still alive. It will pass the second reading. The fact we are not pushing higher means a lot of the uncertainty that sebastian just described is very much alive and keeping the pound from pressing on from here. In the short term, all of those exigencies mean we do not rally hard longerterm. There are a lot of challenges for the pound. How much downside is there . What could trigger downside for for thehe afco pound . I think the pound tracks sideways. It is a waiting game. What becomes difficult for the pound is that the transition time does not move. December 2020 is when all of this has to be wrapped up and a new trade deal takes place. Will at this point we probably get another extension into 2021. The u. K. Government will have to ask for that. Its not clear to me the way parliament is constituted that we will not be able to avoid an election. After the election, all bets are off. The u. K. Government has to ask for an extension. It is not automatic. It is not straightforward. Matt thank you very much for joining us. Richard jones from the mliv team. We are going to get more from richard later. Stay tuned. You can also join the debate on todays question of the day. What does the s p 500 need to hold 3000 . I suspect that is more related to trade them to brexit. Give us your take. Reach out, type ib tv on your bloomberg terminal. To take part in the conversation. Coming up, ubs beats on the bottom line has Wealth Management assets reach a record high. We will hear from the Ceo Sergio Ermotti next. Do not miss that interview. Remember, Bloomberg Radio is live on your mobile device as well or on dab Digital Radio in london. Tune in. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. A mixed picture, but not a lot of signal for direction here. Ftse futures are barely down. Cac and dax futures are up just zero point 1 . Lets get the first word news. Good morning. Recapping ony brexit. Boris johnson will find out if he has any chance of getting his deal through parliament. On theond reading vote Withdrawal Agreement bill is scheduled to take place at 7 00 p. M. U. K. Time. Mps Previous Post suggest johnson has enough support to win. He will immediately face a more difficult vote on his rapid timetable for putting the bill through parliament. Justin trudeau has won his second term as canadas Prime Minister, with a reduced mandate. The liberal party was leading short of the 170 districts needed for a majority. Canadas election four years ago, the liberal party secured a majority to govern alone. Trade optimism raising expectations in agreement with china. President told a Cabinet Meeting beijing had china has started buying more agricultural products. Benjamin netanyahu has failed in his bid to form a new government. He has been forced to return the mandate to the countrys president. The president plans to pass that , who is expected to face an equally difficult task. Two inconclusive elections have left israel in deadlock. Thousands of protesters gathered in city squares around chile yesterday after a weekend of riots and looting that left 11 people dead. The country is enduring the worst unrest since the 1980s to about 1. 5 thousand people have been arrested after arson and riots. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 analysts and journalists in more than 120 countries. This is bloomberg. Matt next very much. Addedy clients at ubs 15. 7 billion in new money last quarter. Earlier, bloombergs manus cranny sat down with Sergio Ermotti in zurich. Very Challenging Market conditions, but im glad we were able to bring performance in this difficult context. By 59 percent in the investment bank. You announced restructuring. What does that look like . Market conditions have been very challenging. Market conditions are also favoring our strategy choices. We are much more skewed toward europe than the u. S. The u. S. Is nominating in terms of calendar. Manus what cost savings will you get . Is going to mean job losses . Most importantly, i think it is opportunity to refocus our markets is inthe us. We will focus on our execution, structuring, and financing businesses. Leveraging the Technology Investments in the last few years. Industries ander more Global Business than regional business. Also leveraging within the organization. Have 5003nus you hundred people in that division. Are there going to be significant job losses . I do not think it will be significant in the context of the numbers you mentioned. We need to adapt the business to Market Conditions and the new priorities. Manus since you scaled back on the rates business, you scaled up on fx. Where is the product excellence going to focus . On execution, we are still the leader in equities, in effects. We are under invested or underrepresented in credit and rates. In primevelopments brokerage. In terms of our banking business industrieson few rather than a regional approach. Of netyou have ladles new money. Mostly come from . Where is the flow from wacko from . Have avery happy we positive trend for the year. The vast majority was coming from asia. I ami am pleased to see that acs the board in all regions we had positive or neutral net new money. Your clients are waiting to buy the dip. Do you get a sense if we got a good trade deal and negotiated brexit, pentup desire for the clients to act actively and get involved . If all these challenges you mentioned are somehow addressed, or clarified at least, there is room for investors to act selectively in the market. 46 of investors we surveyed think so. Depends how the dip is going to play out. Saw a dip that was too quick and too dramatic. Opportunityee an where things get resolved or any correction in the market is somehow digestible. Manus is your glass halffull or halfempty . At that sense, i would say it is half half. Manus Wealth Management, we talked about net new money. You have a new banker. I want to know what you and he decided on the unrealized opportunities. What are they . Onboard very fast. Our current strategy always had opportunities we wanted to explore and execute on. Of course, in any situation when somebody starts into a new job, we expect that person to contribute to the development of the strategy and the not only to the execution of the existing ones. ,att that was the ceo of ubs Sergio Ermotti, speaking to manus in zurich. We are going to continue to bring you more throughout the day. We are minutes away from the open. We will look at stocks to watch, including novartis, which has raised its earnings forecast for the third time this year. This is bloomberg. Matt a little over six minutes to go until the start of trading. Joe easton is focusing on record bank. Covering Sunrise Communications, and dani burger is looking at novartis. Lets kick it off with reckitt. What is the story . Reckitt bank has downgraded their forecast citing weakness in china and flu medicines in the u. S. They say sales will rise between zero and 2 , down from 2 to 3 . In the latest quarter, the rate of growth is around half what analysts expected. Another week quarter. Year ine ceos first charge. Jeffreys,note from they say they expect shares to open lower. Any recovery for the shares should be slow and rocky. Benckiser share is set to decline this morning following an earnings downgrade. Matt what have you got on Sunrise Communications . Not a great day for sunrise. The company was forced to cancel a vote for its purchase of qvc components. Upc components. The price was too high for free net. A big setback for liberty global. We will see what happens next. Is the deal dead, or can it resume . We will keep you posted. Good news. Us some was the story with novartis . Novartis should be one of the big gainers. It has raised its outlook for earnings. This is the third time the company has died this year. The big items here really helping their earnings are one of their new gene therapy drugs as well as a new Breast Cancer drug also beating estimates. We are seeing calls for the share of higher as much as 3 . Good news there. Hopefully for mankind. I believe Breast Cancer awareness month. Thank you very much for joining us. You can get all the latest stock stories by typing first go your terminal. Matt we are just a minute from the open of cash equities trading. Lets take a look at the markets. Dani burger is standing by with that in london. Dani today is all about trade deals, brexit deals, we are seeing the kick up, asian equities higher. Japan, closed for a holiday today so that and s p our fut are gaining today. Hopefully signals the u. S. And china will reach a deal next month but the s p yesterday smashing through the 2000 level. Looks like 3000 levels. The other deal, brexit. Johnson, looking like he will finally get a vote later today on whether he still can pass, whether he can get a deal done before the 31st deadline. Gainse of some of those in sterling, we are seeing weakness on the ftse 100 futures. , mostly flat. The interesting thing will immediately equity market. Big caps may be more interesting than what we are seeing in the ftse 100. Act as a proxy to the pound, but they are up about. 1 despite the fact that the pound is slightly higher, but a little and changed. Get a deal,o perhaps any validation of Sterling Gains will be shortlived because the most important thing here is the trade accord between britain and the eu. Even a deal before the 31st, the transition hangs in the balance. We are seeing mixed markets otherwise. Spain, down a bit. It is a very heavy day per earnings. It will be a battle between macro or the earnings. Of earnings, lets see what sectors are doing today because there are a lot of eight names that will be important. Financials, no surprise here. Green across the board. Ubs earnings, the ecb also signaling they wont have more stimulus in the coming months and other ones, health care down to the red despite novartis earnings and a mixed picture otherwise. A really big day for earnings. That is sure to make an impact here. What about those individual names . Matt we have more stocks gaining than losing. 354 are up, 214 are down. Youve got tech stocks doing fairly well after the asm news. I suspect you will see a lot of tech stocks gaining. Asml is the biggest point to the stoxxition 600, sinking below the zero line. You also have a lot of financials. Bnp paribas, banco santander, Credit Suisse ray moment and holding this index back from bigger losses. Lets look at the losers. Roche, down. 6 but a big heavy stock, so roche is off as is your letter unilever. Roche is probably a issue of competition from novartis. Unilever, down in sympathy with Reckitt Benckiser as it cuts its forecast. Markets are opening mixed slightly to the downside. Westminster is still getting all the headlines today. Does Boris Johnson have the votes to push through his brexit from and will it emerge the house of commons looking anything like the agreement he brokered with the European Union in the first space . Place . With the latest, Sebastian Salek is standing by at westminster. Run us through the timetable of votes this week. 7 00 without second reading, this is the first chance and hes have to vote on the implementation bill that would push through the brexit deal. If that goes through, and analysis suggests we might have those votes, the Program Motion sets out the timetable and this is when it gets controversial because the government really wants to push this through in three days. That is so quick for a government bill. There is opposition to this. The front page of the paper shows the fury kind to force through. They are annoyed by that. There is no guarantee this will pass. If it does get through, we will see things moving straight through to Committee Stage and that is when we could get the possibility of amendments, things like a possible custom union or referendum. For ae seeing mps voting second reading and this is when the mischief began. There were suggestions if we get amendments added to come and you can get the ball bill pulled. This is what we saw on the telegraph. See even more frustration on the part of the government. You saw the pull the vote saturday and it could happen tomorrow or today if that happens. There are plenty of hurdles for johnson to get her and that is before we even get to the house of lords, a whole different ballgame. Matt thanks very much. Sebastian salek is the link anchor of our lunchtime. Bloomberg westminster at 12 00 new london time. Baidu have now come i would say it is pretty important again in. Joining us, the Portfolio Manager at Hermes Investment. She leads the psg and strategy within global equities. We are also joined by the chief economist for the americas and europe at Standard Chartered bank. She has years of experience covering 27 and emerging market macro economics. Start with your take on brexit. What are you expecting now . It looks like at least we have for the most part ruled out a no deal brexit. Dealthink ruled out no certainly by the end of this month and of course, that was a big concern for many in the marketplace up until recently, but where we go from here, i think there is huge uncertainty. There are reports there are enough votes to get the second reading telling the governments way so with labor rebels, tory all Research Group making up the numbers even , Northern Ireland unionists arent voting for th