One to watch today but if you look at the initial signals, we are lower on the stoxx 600. It was a strong session yesterday for the dax up close to 1. 8 , clearing fresh hurdles, well above that 13,400 level rough day to follow up on some of though gains. Lets see what were seeing elsewhere. Telco is at the top, healthcare is at the bottom most of the markets really showing sectors are declining out of the starting position in terms of that sector, couple of reports in there including sanofi the overall picture is a weaker one. Just outpaced to the down side by travel and leisure sliding by a quarter of a percent basic resources, a slightly weaker start up by a quarter. Utilities off by 0. 2 . The others, media stocks, weve had that sector trade down by 0. 10 . Utilities down slight declines in the early start of the session wayment to get to retail quickly. Next is falling again after a horrible trading session yesterday on the back of its concerns around unusual volatile patterns in its business week to week and Credit Suisse getting a slight bounce. 2. 6 better than the market had anticipated. Oil and gas stronger the big report has been shell. That stock trades higher construction up 0. 2 and telcos, 2. 5 higher. Enough to drag the basket up 0. 4 heres how it looks at the start. Shy of 7,500 points as we inch back towards that level on the footcy the French Market holding on 5,500 after a modest tick up yesterday. Its just drifting in the early part of the session. The dax, early signals are weaker after such a strong run yesterday. The other markets, mostly weaker for the ibex and the swiss markets. Stocks in italy trying to hold on to a fraction of green at the start. Credit suisse, the early print that been better, a gain of 1. 1 the market charging higher on the back of the report card of Credit Suisse. Net income was above the banks own consensus. The result marks three consecutive profitable quarters. There were concerns that activist investors were welcoming importers. We respect and listen to and we welcome the you are sviews or investors. We have had conversations, we have been in a constructive dialogue we listen. We absolutely always listen. To ing, another report in the banking basket up about a third of a percent. Not a huge reaction. Theemonth picture, up 0. 6 . So fairly flat, but a stock that has gained in recent years profits at the company rose in the Third Quarter to 1. 3 billion euros. The dutch bank had underlying income of 4. 1 billion euros beating expectations it announced the final dividend proposal that we made at the end of the year. The cfo said profits are being reinvested in Technology Must invest in technology and optimizing processes on one hand were spending money. We do that with the aim to bring costs down to another report, sanofi, the reaction is negative as the stock slides almost 3 at the start. Its confirmed its 2017 outlook. That after the french drugmaker reported Third Quarter results slightly under expectations. Net income fell 1 to 2. 1 billion euros. Sales of the diabetes business are expected to shrink 6 to between 2015 and 2018. We were talking about this before, seems as though one pathway to growth might be through consolidation but it missed out on a number of big targets. So question marks remain around the 5 zigs strategy. T driver in new york cit Acquisition Strategy bt has reversed what has been a dismal performance its been a steady grind lower after significant dips on the back of warnings bt posted a declining Second Quarter profit and revenue as it struggles to turn around its Global Services unit they also said growth at the ee mobile business feailed to offse costs for sporting rights and pensions earlier we spoke to Gavin Patterson about the accounting woes at bts italian unit. We taken all the important decisions, changed management, transforming the business, getting on and putting it back on its feet. I think its behind us as with any situation, theres a regulatory followup, legal challenges afterwards. In terms of the operation, we are getting on with the business it means getting the cost base right, focusing on the right customers, focusing on Software Defined networks, the future of our industry of course we looked at controls. We checked that theyre strong, where we found weaknesses, we strengthened them. Swiss rehas po has posted a i the latest set of results. The insurer says it expects claims of 4 billion related to hurricanes it also will proceed with a Share Buyback program set to start on friday. We will be speaking to swiss re cfo, david cole, thats coming up in about 15 minutes time live from zurich. Lets talk about some market strategy, where should you put your money in this environment we have the investment director and louis costa is still with us inflation is low, growth is high, were seeing Profit Margins still going higher and higher even though we thought last quarter was the peak, then we still have a dovish central banking environment, even though theyre tightening what could go wrong here definitely in a goldilocks scenario yet again inflation is not picking up. Theres realistically only two Central Banks, the bank of england and the fed who are on a path towards hiking rates after the ecb was more dovish recently the focus will have to be on wages. Wages are going to be the main driver of inflation. Inflation expectations this is all that Central Banks will be looking at in the months you will be waiting for a while if you are waiting for inflation. Havent you heard about automation this is the missing link is an argument about whether the oldfashioned models to model slack and inflation in the economy are accurate in the current environment. The fact of the environment is we dont know. Central banks, they told us theyre not sure themselves. Yellen said that theyre looking at how to interpret the data how to forecast what wages will do in the next few weeks and months for now, for them, they have to follow a cautious path its an interesting point when you talk about wages, particularly from your world that you look at, emerging markets. It feels like robotics are much stronger in emerging markets, is there some impact on this automation Adoption Rate in some markets and whether wages push up in developed markets because there might be a shortage around parts of the United States but not elsewhere because automation has not been adapted how do you see the breakdown of wages globally i see some industrials ems, the first one that comes to mind is an extremely integrated company into europe, but lets not believe this will be like an eventing sequence. There will be lags the lags can be years and years. We know this economy is still not necessarily keeping the pace of productivity with dm. The one important thing is that Wage Inflation is starting to show up in many economies. If you look around eastern europe, which is benefitting from this nice rise in output in europe and western europe over the last 12, 18 months, you are seeing a series of things. Were talking about high Single Digits in some Eastern European economies. My question to you, andrea, going back and looking into the macro, you mentioned something interesting, a step back from the ecb. 3 months, 4 months ago, everybody was gung ho on the idea that dm Central Banks are hawkish at the same time synchronized hawkish spirit. And now, you know, draghi is elegantly taking a step back how much of that is a setback foreuro dollar i see the european economy a much younger cycle compared to the u. S. Is it a detrimental factor to the euro dollar now . Is it the time to take the chips off the table . For the moment, euro dollar, exchanges are always a difficult market to make forecasts, it looks like for the time being euro dollar will be a play for the next quarter ahead on the euro side of the equation, draghi has told us that rates will stay here for a very long time at least to the middle of 2019 real rate differentials are one of the main drivers of effects, a lot depends on what happens on the other side of the pond in the u. S. What do we do about the breakout in yields when it comes to global curves, especially bunds, treasuries i guess we have come to levels that are crucial, pivotal . Maybe 50 basis points for bunds last week . Maybe 2. 5 for treasury yields do you think well move beyond those levels now is this the time to see that continued selloff in bunds people have been trying to back on the great rotation for fixed income for a long time, particularly on the Government Bond side. Those levels, you mentioned, they are key, the 50 basis points in bund is something on the charts that looks extremely important. Bunds will be driven by what happens to the treasury market while there is scope for some upside in yields, we dont think that will be sustainable in the medium to longterm. Why . We have mentioned inflation being something that is lacking. Besides that, there are more structural issues at play. Theres a lot of debt in the system can we afford significantly higher yields rates for a long period of time we dont think so. So, we think the scope for meaningful increases in yields is not really there. Is limited at this point. Lets take you back to the markets. Looking at gold stock, randgold a lot of assets moved in october, gold was not one of them its been updating the market today. Production and profits were down in the Third Quarter you can see the stock is down 2. 2 2. 9 profit for the quarter 60 60. 2 million compared to 77. 77. 25 million a year ago it comes to prediction levels, that was down 9 compared to the previous quarter. And to shell, the reaction this morning has been positive. The stock is modestly firmer so far at this point in the session. The threemonth picture, slightly more compelling where the stock bounced 10 . Royal dutch shell reported a 47 rise in profit to 40 40. 1 billi beating expectations strong gains in refining and operations have been credited for the jump cash operations slowed as cost cutting measures began to kick in and 4. 1 higher for hugo boss they upped guidance for sales after posting Third Quarter numbers in line with expectations the german fashion house were boosted by strong growth in europe and asia. Hugo boss has slashed prices in china in a bid to appeal to younger customers. We were puzzled around the americas which showed a slowdown in sales by 9 its own Retail Stores fared nicely, but whole sale was weak. So this is telling you another story about retail, which is that Department Store sales are challenged not really delivered for a number of big Luxury Companies the best gains are seen in Standalone Stores danske bank raised its 2017 guidance after they beat forecasts for the Third Quarter pretax profit, danske credited this to higher customer activity, which is unusual we have not heard that from a lot of banks pretax profits, 6. 42 danish crowns danske also lifted its Profit Guidance to 19 billion to 21 billion crowns carlsberg, 0. 4 higher as numbers hit. They posted weaker than expected Third Quarter sales. The danish brewer reported volumes and revenues below forecasts. Carlsberg cited bad weather in western europe as weighing on the quarter but also a change in the 1. 5 liter bottles in russia. New regulation thats been impacting volumes there. Well break down those numbers further when we speak to the ceo on the program, 11 00 cet. Tune in for that interview coming up on this show, Profit Guidance lifted at tate and lyle for the year, and it is one of the top gainers on the stoxx 600 this morning nick hampton will be jnioing us in a few moments accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. My business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. 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Were delighted with the first half performance we saw good broad based volume in both divisions and across the global that turned into strong double digit profit growth, and alongside that we continue to invest in the future of the business how sustainable is that performance given that we are seeing pressure on the fastmoving consumer goods sector in the u. S. This is something that wpp repeatedly point out to us how much of the pressures are you feeling . Sure. Clearly the food and Beverage Industry is clfluid. We make a range of sweeteners, starches that help take sugar calories and fats out of food and put stuff back n like fibers and protein. Thats where consumers are going today. The opportunity for us is to help the more challenged Big Food Companies solve for those problems and grow. Alongside that expand into healthier categories in this environment is there actually scope to raise prices thats something where analysts would like you to make more headway in the future. Do you have wiggle room there . The key for us ultimately is the way we create value for us and customers is by helping them build solutions. We have to have strong applications, capable in the business to help them solve for problems theyre trying to solve for. If we can do that, we can create volume for them and us its a nice story, but innovation costs money if youre aware your end client is challenged on their margins, facing enormous pressure from activist investors, whats the rational for plowing money into research and development to come up with Innovative Products . Its always a balance you have to balance investing behind innovation and creating value from it. But ultimately if you can make ingredients that are innovative and can help solve problems for customers, they should be able to price that through. Were seeing good growth in new products over 14 growth of products in the first half talk with us about mexican soda sure. It seems as though the market has been concerned about the trading relationship between the United States and mexico, though that sort of was caught off with other issues facing the Trump Administration do you think the Business Environment changed a bit . Theres a balance of course in mexico because of the nafta trade negotiations were watching that with interest the good news is the Agricultural Sector in the midwest is important to the u. S. Economy. The mexican market is important to u. S. Agriculture. Were hoping for a positive conclusion to negotiations like everybody else, we watch it with interest. Today we might be seeing the first rate hike by the boe in a decade on the other hand we still have uncertainty when it comes to brexit issues. Where do you stand and how optimistic are you about the home market . Though tate lyle is a ftse 500 company, less than 2 of what we do is in the uk. Most of our debt is u. S. Dominated. As far as brexit, we are a u. S. Dominated revenue stock. Thats given us a good bump because of Exchange Rates in the shortterm do you feel pressure to engage in more m a the big spinoff of the sugar business, that was a while ago do you feel you need to engage in more portfolio oizatio optim . Pressure, no but were looking for the right kind of m a and will do that should it occur. Can i go back to the nafta issue . Its a fascinating thing i was in d. C. At the meetings a couple weeks ago it was an offagenda topic, because a few weeks before the d. C. Meetings nobody was expecting the markets to be discussing nafta its on you mentioned your company is u. S. Centric how much of an impact can trade wars or a more abrasive trade environment, how much of an impact can that have its clearly consideration for us as we think about the future were great believers in free trade as you would imagine well watch with interest the developments in north america. There are other factors going on in north america, like the taxation system, which could provide a positive its a balanced picture as always you have to build contingency plans appropriately. Thats what were working on nick, thank you very much for the time today nick hampton with us, cfo of tate lyle. Shares of hello fresh, the german meal kit Startup Company making their market debut in frankfurt. You can see 10. 63 on the screen. Thats u