There are no changes. Confirm ouring data assessment of protracted weakness in e. U. Area growth dynamics. The start of the problem. It means the problem will be handled to somebody else. Russia and turkey cut a deal in syria. Pres. Trump this was the result of us, the u. S. , and nobody else. Market conditions the past few quarters have been challenging. Low Interest Rate environment puts pressure on the bank and the interest margin. Investors and policymakers share per perspectives on the slow down. Whether this is bottoming out the headlines, the trade war, has put americans on their heels. We will have europe in recession next year. It is all straight ahead on bloomberg best. Hello and welcome. Youris bloomberg best, weekly review of the most important business news, analysis and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. Parliament met and postponed a vote on Boris Johnsons brexit deal, a familiar sense of uncertainty for europe. Boris johnson a renewed attempt to win Parliament Backing for his brexit deal. E. U. He was forced to write to thee. U. , seeking a threemonth delay. Does he have the vote to get this deal through . Yes and no. Yes, we have the secretary saying, yes, they do have the magic 320 number, for a meaningful vote. But that is not the end of the story. They need to also get the Withdrawal Agreement back. There are many more hurdles to get through in order to get brexit done. Really anything through is far harder than it might seem. Has. K. Parliament speaker denied Boris Johnson a second meaningful vote on his brexit deal in the house of commons. This is not persuasive. It was published and there will be a vote known as a second reading tomorrow. That is tuesday. If the government wins, that will be a big victory for Boris Johnson and the government. Following that would be a programknown as motion. That would allow them to accelerate the motion by which this would become law and getfully the government can relevant legislation passed before the october 31 deadline. Progress seemingly on the trade deal. President trump saying negotiations over trade deals are advancing. He was referring to chinese purchases of u. S. Agriculture. Optimism on trade, we are susceptible to that soundbite. Suddenly things might be Getting Better in trade with china. There might be clarity. All of that is moving the markets up today in optimism. Added 15. 7lients billion in new money last quarter. 2. 5ng assets for a record trillion. Profits are down. They are restructuring. What does it look like . Market conditions the last few quarters have been challenging. For sure, Market Conditions are figuring strategic choices. We are much more secure toward europe and asia then we are into the u. S. Ins is still a business terms of calendar in business activity. Client sentiment is better than outside the u. S. I would say it is a minor win for ubs today. Their Wealth Management units did better than expected. Bit ofestment bank was a a disappointment. They have cut jobs and there will be a 100 Million Dollars charge in the Fourth Quarter related to that. U. K. Prime minister Boris Johnson looking set to try for election after parliament blocked his plan to rush the brexit deal into law. He warned defeat of the timetable leaves the u. K. In limbo. It does seem we are heading into an election. A question whether Boris Johnson pushes for a general election now, and he threatened to do so. Tries tor he waits and work on a new timetable to get his Withdrawal Agreement through parliament. Either way, he will need some sort of delay because on october 31 seems incredibly unlikely. That is only eight days away. Were just waiting for the e. U. Side. Trying to work out the length of that delay. That could have an impact. Hisario draghi closing out tenure with downbeat analysis of the economy. After releasing a new round of stimulus to counter the slow down. Early incoming data in september confirms our previous assessment over protracted weakness in the euro area growth dynamics. In terms of Monetary Policy, no changes were made at this meeting, but he did say he felt justified in making the controversial moves he made in september, after he saw some of the surveys unfortunately coming in on such weak levels. Hopefully Christine Lagarde can unite the governing committee and carryforward the accommodative stance mario draghi has been forced to go back to at the end of his tenure. Ecommerce giant amazon missed estimates, posting a profit drop for the first time in two years. Amazons forecast for the Holiday Quarter gives investors more to worry about. They are still turning a profit, but growth was slower. Why . There was a lot of angst around cost. We knew it would bring variability with it. Variability played out. Also they are spending a lot on content, the aws advertising division. Off, we arepaying seeing a sales impact happen on the retail side. It will pay off longerterm in terms of market share, revenue growth. As far as cost variability is concerned, it can continue a few quarters. Warned low Interest Rates and brexit will make it tougher to meet targets next year. Even as bank traders outperformed most of wall street in the third quarter. Six of the last seven quarters we generate a return of capital over 9 . We feel good about the 9 target for 2019. Up,ink what we are bringing as you look into 2020, you have the macro environment and the u. K. , where Economic Growth is somewhat muted. If we continue with the uncertainty of brexit, one has to think you will continue to have soft growth in the u. K. Also we have lower Interest Rates. In the lower Interest Rate environment, it puts pressure on of margins and possibility deposit base. We need caution against the 20 target for 2020. Lets maintain the target for now. With six days before the u. K. , we have notu. Seen a deal on brexit. Opposition leader Jeremy Corbyn says his backing depends on the length of a brexit delay granted by the european union. That puts brussels in an awkward position. They are to delay a decision to avoid getting caught up in westminster politics. Jeremy corbyn does not want to give Boris Johnson the election he wants until Boris Johnson takes no deal off the table. If we do not have a longer extension, that is hard to do. It is a difficult situation. Get anard to see how we election, but also how to get resolution without one. The e. U. Was supposed to come up with a decision on the extension, but they do not want to make a move until the u. K. Moves first. One isto complications, really willing to fight this one. He said there is no point granting three more months. He believes time is not going to fix this. The only way to fix deadlock is to put pressure on the u. K. Parliament to get the deal done. They cannot agree to a decision and we will have to wait until monday. It is something that has to be deliberated. We will see leaders back in brussels the end of next week. Vice president mike pence gave a long anticipated speech in which he criticized chinas actions in hong kong. Beijing firing back, calling his speech lies. His speech comes at a crucial time as the countries remain in trade war. China said it will provide 20 billion of u. S. Farm products in year one of a trade deal. They accused him of arrogance. While they are exchanging barbs, it seems discussions over goods are continuing in parallel. We have gotten word from a trade representatives office, bob lighthizer, Steven Mnuchin got on the phone this morning inh vice premier liu he beijing, saying they made headway in areas and are close to finalizing sections of this deal. Inpositive and that that to lift hangover over Global Markets and the economy, but the big question is, what comes next after . Ritika still ahead, as we review the week on bloomberg best, more on the earnings front with earnings from boeing, caterpillar and tesla. Plus highlights from the weeks most interesting interviews. And more of the top business headlines. Swedens central bank works the global trend and sticks with its plan to exit negative rates. The right thing is going slowly. Ritika this is bloomberg. Ritika this is bloomberg best. The weeks top business stories. In canada, will the Prime Minister the Prime Minister keeps his seat, but loses parliamentary majority. A Justin Trudeau has won second term among scandals. Thank you for putting your trust in our team. Think you for having faith in us to move this country in the right direction. Thehe support of leftleaning new democratic party, progressive de facto coalition. Nonetheless, a win for trudeau, who lost the popular vote. An outcome that will look familiar to donald trump. He lost the vote, but it was spread out more evenly. He won significantly more seats. For now trudeau is status quo, he is still the Prime Minister, has to name a cabinet. Then things get tricky. He has to he will not have a majority. They can look more into scandals that dropped his popularity in the first place. Forill be a messier ride trudeau even though he is still in power. Russia and turkey struck a deal to create a buffer zone in syria. President erdogan spoke to president putin for several hours. It involves joint patrols to remove kurdish buyers. Fighters. Erdogan called it a historic deal. What does it detail . What it basically did was allow Vladimir Putin and president erdogan to take back chunks of syrian territory that were until recently controlled by kurdish forces, once allied with the u. S. It allowed turkey to push back against elements they thought were enemies away from its borders without having to go through a lengthier military campaign inside syria. President trump taking credit for ceasefire in syria, painting it as a victory for his unconventional foreign policy. He removed all u. S. Sanctions imposed after turkey launched its operation. Pres. Trump this is an outcome created by us, the united states, and nobody else. It is not quite landing on capitol hill. While he says the ceasefire is permanent, reactions ranged from skeptical that this is a deal that was told, to downright critical. Some republicans said it appeared the deal benefited russia and turkey more than anyone else. Bank lookingentral for a rate increase in december. They expect to keep rates unchanged at zero until mid 2022. Mid we do not see a downturn around the corner. Thing is to right slowly move up. Continued slow growth driven by protected protective Global Policy led the amf to revise asias growth downward. Andxtension of 5 this year 5. 1 next year. The slowest rates of age and growth since the Global Financial crisis. The risks are still on the downside, given all the uncertainties to do with geopolitics in the trade war. That is right. Notwithstanding the downward revision of our growth forecast this year and next. To therisk weighted downside. They include of further slow down in china, more accelerated trade tensions, a reduction in Risk Appetite in Global Financial markets, an acceleration in japankorea trade tensions, higher oil prices, and so forth. A number of Downside Risks are in the offing. Seeing signs are of how the trade war is eroding the economy. Exports extending declines. Put it into perspective for us. This is the 10th straight month of decline. South korea down 19. 5 yearoveryear the first three days of this month. We will probably see another decline. It is led by the u. S. And china, autos and machinery exports, particularly semiconductor components. We need to see manufacturing slow down, we need to see the trade story improve. China considering a plan to replace hong kong chief executive carrie lam as interim leader could be installed by march. This is not the first time there have been reports about carrie lam potentially stepping down or questioning whether she wants to stay in the position. There have been previous reports of her offering to resign. She said anyone in a difficult position like hers could take the easy road out and resign, but it is not something she said seriously. She said she would stick around until this unrest in the city is settled. Beijing from the beginning has backed her, said they are backing her and the police. They are pushing this report away. Violent protests extending to a fourth day in chile. Thousands took to the streets to protest income inequality. At least 11 people are dead. Chile becomes the second latin American Country to declare a state of emergency this month, after ecuador. Who is leading demonstrations and what is their grievance . We do not know who for sure is leading. There is no leader. It started as a protest from students, the increase in metro prices. There was manifestation from several people, students, labor leaders. They believed they had been left behind. They felt they had been mistreated. Increasempted to prices. Learnedberg news malaysia is privately discussing an agreement with Goldman Sachs 1mdbhe banks role in the scandal which resulted in 7. 5 billion. Malaysia is reportedly asking for 7. 5 billion in fines. We heard from forces they are negotiating closer to 2 billion to 3 billion. We are not sure why they are talking less. They are looking to come to an agreement by the years end. We are not clear what will happen to charges if and when Goldman Sachs pays up. Ritika you are watching bloomberg best. Bankthe European Central this week, investor attention on u. S. Economic slow down on the risk of recession. He shared his perspective. Are you confident we have seen the bottom . At one point this year we had 17 point trillion dollars 17 trillion. Are you confident we have seen the bottom in global bond yields . I would not bet on them going low again. One one is the policy side. I am confident Central Banks understand they should not go any further. I am uncomfortable where they are. I cannot move forward, i cannot go back. That is not a great place to be. The policy dampening rates is done for now. On the other side, i am not sure if the Global Economy is bottoming or not. We could have another round of [indiscernible] in the forecast. We will have europe in recession next year. You think so, in 2020 . Yes, for the euro zone. Wow. Where does policy response come from . I do not get it on fiscal. Throughjust a muddle with bad growth . Yes, because the political process will have trouble responding quickly. Ritika coming up on bloomberg best, more compelling conversations. Aboutral bank speaking Monetary Policy. The Bloomberg Business sustainability summit. Since 2014 we have reduced Carbon Emissions close to 40 . Ritika this is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. This is bloomberg best. Great uncertainty continues to weigh on global Economic Growth and in hong kong, unrest advocate investment picture. The worlds secondlargest fixed income etf provider after kick pimco plans to expand in china even as the Trump Administration continue considers curving fund flows to chinese equities. Tom mackenzie spoke to the ceo in beijing. What i focus on, the larger narrative, which has been happening for over a decade as the opening of the agenda of the china renminbi and local Capital Markets to the rest of the world and if you want to call that making hong kong listen for is an entryway in and out of china, our offices are in shanghai and we do that because going forward, shenzhen and shanghai and beijing are important cities in their own right for the Capital Markets in china. Are you still seeing demand in terms of inflows into your china etf from u. S. Investorss . Let me say no. Let me be very clear. War,eadlines, the trade everything going on has basically put americans on their heels as far as investing in china. Have been allocated for a wild but there is a lot of wait and see. Frankly, given the u. S. Equity market, why bother with that risk . I do think in the long term, it is an interesting opportunity, but sentiment is horrible and interest is low. Singapore in asia, narrowly doster recession in the latest quarter. The monetary authorities eased for the first time in three years. The managing director told bloomberg posh Haslinda Amin it is unfair for Central Banks to shoulder the growth burden alone. Theycause of what fabulously did in the financial crisis and subsequently in holding up the Global Economy and Global Financial system, there is