We should recap what has been a great 24 hours in the equity market world. Guy we had a decent day throughout the u. S. Yesterday. Which slightly raised the expectation of whether or not the fed is going to hike rates. We think it is going to come more likely after that number. Anna at least the chances have gone up a bit. On monday,was 28 now we are at 32 . Guy things are moving pretty fast around here. Obviously a long way to go between now and then. Two days of debate started today, what will the results the . A great deal of coverage of the next few days. Quitearkets finished strongly, a decent update. We will talk about hewlettpackard more on cutting jobs. Does,and anything the fed if that moves the dollar, that could have an impact on the large multinational businesses like the number one clothing retailer. So the numbers about the eurostes, 1. 9 7 billion wayty much in line with the they benefit from a stronger dollar. Clothes fromlot of asia, not getting a benefit from a stronger dollar. We will see the company themselves say anything this morning about currency. Guy we look forward to hearing about that later on. Lets walk you through what is happening in asia. Find out exactly what the story is there. Juliet standing by in the hong kong. Enough good morning, not points on the market in my opinion. But it is a really solid session here in asia come on the back of those gains you just mentioned coming through from the u. S. We have seen the shanghai composite fluctuate in and out of the positive territory. 1 , certainly more solid today up by 1. 2 . There has been downward pressure on the securities, chinas largest broker. Insideris investigating trading, which has seen about four executives questioned. Certainly leading the charge in asia today, there is a potential merger between samsung engineering and samsung heavy, which has seen great games from the heavy players in korea. Currently up 2 today. Paring back some of the earlier losses in the afternoon, we see the weakness coming through from japan a Machinery Company today, elsewhere a lot of bigger name consumers looking really good. In australia, all sectors hire today. Up by 1. 5 , essentially reversing the loss we did see yesterday. It is worth noting we do have the malaysian market closed today for a public holiday. However, the Malaysian Ringgit is having a very solid session as investors here awake the decision coming through from the fed. We are seeing a lot of money coming from emergent markets. They will tell you a lot about the Malaysian Ringgit, but it was slightly up against the dollar. Today it is a 1. 1 gain. Holding,back currently and the aussie dollar has Commodity Currencies getting a pickup, as we see that rise and equities and also commodities. Had astralian dollar has lot to move with, new Prime Minister in australia. Yesterday it was up slightly against the greenback. Pretty much unchanged at the two half week high during yesterday trade. Guy thank you very much. Asian markets on the front f or and pushing. A long way to go between now and then. Giantmining and trading glencore has suspended trading in hong kong, pending toormation on information shore up the Balance Sheet. Caroline hyde has all the details. Caroline glencore known from holding that wooden spoon of the worst performer so far this year. Let us take you on the details about what this is about. Share suspended, as we await confirmation details around the deal. The understand they are selling 1. 3 million new shares. That will raise, if we are looking at the current share price which netted a record low in london yesterday, it is priced near those numbers it would get about two and a half billion dollars. It puts it at a discount. According to people with familiar, we are likely to see a price about the 5 range discount. The no less than that overall. Area, this has strong demand. They are able to close the books very swiftly, by yesterday at 8 p. M. Lets look into what the managers are swallowing. They are standing behind his company, no surprise that billionaires were made to the company. He will remain a key care shareholder. Enberg two glassman will retain his 8. 4 stake. An stanley and citigroup have not agreed to buy, but theres also a book runner on the list as well. Lets remind ourselves, why are they doing that . It is shoring up the Balance Sheet. They acted so swiftly. We had the plan that they will be cutting debt by about 10 billion. Right around the third, the overwhelming debt is 30 billion. Investors are starting to get unnerved, particularly Standard Poors the standard Rating Company had the outlook needed junk. Raded to how can they sustain themselves in this commodity rout . They are not only raising capital, but they are cutting spending selling assets and holding dividends holding up to 10 billion. Theyre coming out and saying we think we have clarity on about 7 billion on this deal. The issues still remain about the selling of assets overall. They are saying tenderly be streaming agreements, the longterm reduction in loans, that is were they see transparency lacking. But we have to remind ourselves, will the start to shore up not only the Balance Sheet but the share price . Look at this. Down 62 over the course of 12 month. This is where the paint has been felt because the commodities rout and the concern about the they have beent trying to make amends for. Guy thank you very much, indeed. Caroline hyde on glencore. Number the chairman of bloomberg, he is a senior non Voting Member of glencore. We have to make that clear. Anna simon french, chief economist. The dizzy you. A few stories, about the commodity markets. Gas prices, the fed, glencore into commodities, selling off of the commodity market. Simon i dont think so. Because of the commodity story is principally a supplyside story. There is less pressure with low Interest Rates, and longer Interest Rates, for those marginal producers to have those debt margin calls to close down capacity. There is still chronic overcapacity, a hangover from the super cycle. It is not going away fast. From a commodity perspective, if we do get a rate rise of this week, that signifies higher rates going forward. That may start to move forward the marginal cost producers out of the market. It could give support to the commodity support. Guy what is the most important thing we will hear from the fed . Raising rates, the trajectory of the race . What do we need to know . Simon that is a great point. A single move up does not tell us really anything about the longer term to decorate. Points, that is unlikely to change the position regarding emerging markets regarding the commodity sector. But a more bullish sentiment about the cycle, the of cycle and whether that looks like some of the mid2000 cycles when there was aggressive tightening, or whether they are more moderate early 90 cycles, what that actually looks like is the key bit of information we will get this week. Anna youre talking about 25 basis points, as if that is the smallest unit the fed can move in. I think the research, our bloomberg hes picking up on , sisteron economists really tiny baby step. Simon we havent talking about the fed it for so long. There has to be something new, take your pick. It gives you another angle to write about. I think it is more likely for the reason that the risk of surprise in the marketplace remains there, despite this being the most taut economic event until the next one next month. And then a december. What were actually seeing is the desire from the fed to stage manage the whole thing. And therefore, i think it would be a big surprise. Guy we saw Sales Numbers out of the states, evidence that the in sumer is getting into gear after what has been a very long hiatus. Simon when i got a boost their pockets from the fallen gasoline prices, a saved it. That was responsible for the slow growth rates we saw in the back end of last year, in q1 in the u. S. But they concluded this is there for the medium term. And therefore they are spinning that. We are seeing that in the updebeat numbers. Yesterday or today, it will definitely change. Theyre going to arrive with retail sales nna but theyre big concern was around whether the turmoil in the markets related to china, and the spillover we saw into the developed equity markets as a result, whether that was going to get into the psyche of the u. S. Consumer, or was the evidence of that. Simon; no there was not. The turmoil in china, the of monetaryakening policy, it could actually mean lower prices. And if that is associated with strong labor markets, and this is where the u. S. And u. K. Standalone, that could see deflation. Which we have seen very strongly in the u. K. And at times in the u. S. Anna simon french stays with us on the program. [no audio] guy i think the risk is that they dont, that they the International Events are overtaking the fundamentals here. Especially was happening in china. I personally think if they were to hike in september, it would be a mistake. Move off right time to of zero, at a time when clearly you are closer to unemployment. But i think you can make a very reasonable argument that some slack remains. And you are quite far away on the inflation site. I do not think they should do a trickle out hike because they want to start hiking. I think it would be poor judgment to make that move. We have the dollar too strong, manufacturing down, Global Growth is just too slow away from this china. Guy those were the thoughts of our guests here on bloomberg tv. Ahead of tomorrows decision. Anna 70 minutes at 6 00 here in london. Here are the stories you need to know this morning. Guy we have been discussing the members of the open market and their crucial meeting on thursday. Tomorrow, we will find that if the federal raise Interest Rates. An aide to janet yellen says it would be a mistake to hike this month. And he thinks the central bank should hold quality study. Well into 2016. Anna hewlettpackard will cut 30,000 jobs, as Ceo Meg Whitman tries to refashion the business. Hp moved into two separate entities in december. It will supply businesses with highend technology and ink and printers. Camp isakeshift refugee growing on the serbian side of the hungarian border after hungary sealed off. People have been using the boarding crossing as an entry point into the European Union. Meanwhile, Angela Merkel has defended her decision to allow tens of thousands of refugees into germany, only to reimpose Border Controls the numbers became overwhelming. She is calling for an emergency eu Leaders Summit next week to discuss the crisis. Our a ets bring in expert, ryan. Responding to Angela Merkels calls. Ryna she made that call yesterday. It follows the meeting at the interior minister meeting, with a agreed on the distribution. Hadthing the o eu discussed before the crisis the mcgann. They failed to come up with a deal to distribute the remaining 20,000 lets take him. I think she has decided that the idea of waiting for the same interior ministers, when they meet next month october the eighth, that is pathetic. This needs to go up the food chain in anything happen now. Summit, theor the tough mandate decision to call it or not. The spokesman said he will make that decision on thursday. Now he was tweeting the same. Merkel has changed, moved on, altered her view. At the beginning of the story, she was very much we were going to let people live up to the possibility of living in the eu. He will become the migrant friend. That was public opinion. But that has now changed. It is interesting to see the compare and contrast with other nations. Ryan if you think about it from an eu perspective, she was the tough guy when it came to greece. Wasnt she . Now he is the conscience of europe, or the she was when germany said there would let the men. Now he has backtracked. To the badcomparing guys in place of her, the tough youce on the refugees, know, she is deploying, for example, the german chancellor germanmembers of the military to office duty to process the migrants they will let him. Whereby he has deployed military on hungarys border with machine guns. There is a difference there. Facing theans border. But youre absolutely right, merkel has her work cut out for her. A lot of people in her country and throughout the union are saying, how do you reconcile the fact that you will let these refugees in . And now theyre closing borders to some extent. And within her own country, there is a lot of unease amongst the regional leaders who she met with yesterday, who are saying where it is going . Anna away from humanitarian story, which of course is still at the forefront of this, the economic story is gaining momentum. You hear some voices digesting this could be a positive or various European Countries, that have unemployment and population growth. Ryan the single biggest manifestation of that is on the financial front, they came yesterday from a report from s p that said the single biggest uncertainty when it comes to the individual sovereign ratings of eu countries involves europes solution to this crisis. So greece was a threat to the cohesion of europe. And now that threat has been replaced by this one. In itself, it does not necessarily represent a fiscal or an important fiscal issue for these countries. But if they are unable to agree thatis, then s p says poses a governance issue. And that is uncertainty when it comes to ratings, because it does take into account issues of governance. Anna there was talk that some European Countries might be tempted to try and push back on some of their fiscal limits, as a result of the demand put on them by the refugee crisis. I noticed that they quickly jumped on that one. He did not want that went to gain momentum. Simon, lets bring you into the equation. Is it popping up on your radar yet . Growth . Population simon ryans point is very prescient from a management perspective. But from a pure economic effective, net migration is something europe desperately needs. If the 2013. If we look at japan, where pete in the early 1990s, do not want to take the next Economic Performance from japan and transform that. In the shortterm, the shortterm, yes, there are fiscal retirements. But everything we know about the Empirical Data is that these are upwardly mobile people who accrue skills at a fast rate. And they become positive in their countries. A pro for theh European Union, if it can attract migrants in these numbers. Guy will it accelerate the progress . What tells us how quickly we can get the net benefits of this . Language skills, getting them to work quickly simon integration is key. If there are systems they can easily assimilate into, they can enable them to find jobs, with a live, establish language skills. I think what you are looking for from european leaders, as ryan said, strategy. How are we going to manage this influx of labor . To maximize anna European Solidarity coming from germany, where unemployment rates are very low, and clearly sounds different when they are falling on the years on people where the rates are higher. That is one of the issues that perhaps is raised by this question around governance, whether europe is Strong Enough to stand this kind of challenge . Ryan if you have high unemployment, you have principally a left of Center Government or a vocal opposition that can make the electorate very difficult to garner public support for taking in migration. Clearly in germany, to a lesser extent in the u k, you can make the case that this provides employers with a real boost. It provides local communities with more consumers, more productive capacity. It really is quite a polarized debate right now. Guy when you look at europe, i degrees to get both of your takes, is it failing again . Ryan all the actions we have seen thus far have been kicking the can down the road. Guy we have seen that before. Ryan or passing the buck. It is quite easy to see. The refugees that have been piling up at the border, at serbias border at hungary, are now getting on buses and going to croatia. That is the next weighin. Problems,e solving but solving austrias and germanys problems, but he is creating problems for croatia. Maybe problems for romania. Simon underlined the European Union, the eurozone, they have common governance which prevailed in the eurozone crisis. In the greek crisis, and now prevailed in the migrant crisis. What you need to do is out of theyre trying, to forge a new way of governing. Anna simon, thank you. Guy 20 more coming up on the fed. When they come back, we will take a break. We will see you in a moment. Anna welcome back. 6 30 in london. Here are the stories you need to know. Guy members of the federal open Market Committee staff their meeting today. Tomorrow, we find out if the Federal Reserve will raise rates for the First Time Since 2006. Anna glencore is selling shares to pay down debt. The stock will be valued at 2. 75 billion based on the closing price. Performer this year. Yesterday, it touched a record low. Toncore requested a halt trading in hong kong yesterday, pending an update on the sale. Guy Jeremy Corbyn will take on for theameron First Time Since becoming the leader of the labour party in the united kingdom. Labor leader attacked the conservatives as he addressed them in brighton. They call us deficit deniers. But then they spend billions cutting taxes for the richest families. For the most profitable businesses, what they are is poverty deniers. They are ignoring the food banks, the housing crisis, theyre cutting tax credits when Child Poverty rose by half a million to over 4 million. Anna lets get thoughts from our guest host, simon french. Simon, give us your thought