Story, a little bit concerned about it. Those factorsof in the mix. Anna we do not need to revisit the fact we saw all materials down 40 in the last quarter. A little bit of a bounce in copper of days or so. Extending that bounce after we had the chinese data, at a oneweek high. Before you get too excited, Morgan Stanley talking about the worse to come something we heard from citigroup earlier. Guy not good news for ivan blazoglazenburg. We are watching the credit story, it is one of the factors that honestly has been behind the equity market rally. Markets beingt used as a way to generate buybacks. They elevate equity levels, and if that story stops spinning, because have a problem. But a bounce in copper, most things have come back. Let me show you the crossover index, this is the story credit has been signaling a much longer term concern being priced in. We saw a big selloff, that is glencore and a number of factors in their. We did see a big bounce, but nevertheless, the credit story has been a factor for a while now. Maybe a leading indicator for what is happening with the stock story. Be concerned maybe as we start the new quarter. Holiday,is a chinese and it is a weeklong national day getting a week holiday for a national day. Equity markets in china out for a bit. Guy japan is back, we will talk about it a lot. The twitter question today is the Fourth Quarter. Please let it be better than the Third Quarter. Someone argue that we had a torrid time. Anna we saw u. S. Stocks bouncing little bit yesterday, advancing and closing a little bit higher. But the rebound on the last trading day of the quarter was nothing close to a recovery for wall street after the worst threemonth rout in three years. Stocks finishing up a dismal quarter, their worst in four years. The s p, doubt, and nasdaq all falling around 4 against their worst performance in 2011. There were really three primary groups, though the selling was widespread. Three groups that were largely responsible for the crime. Energy, materials, and health care. Energy and materials having to do what happened in the commodities market. And a big selloff in biotech and health care in the wake of Hillary Clinton tweeting that she wanted to cap prescription drugs. Moving on to commodities and what we saw there, gold experiencing its fifth straight quarterly line. That is the worst streak since 19981999. Oil having a terrible quarter, down 20 . Copper pulling back sharply. As that was going on, the dollar actually did relatively well of by nearly 1 versus a basket of currencies. Really interesting trading in the 10year note. That is, treasuries to drink a big month. We heard Officials Say there was a likelihood that we would see rates go up by the end of your. On the quarter, by the time all is said and done, the yield on the note had gone down the most since the Second Quarter of 2012. That idea that we would see rates go up by the end of the year, more things to reflect over the concerns of Global Growth. Guy julie hyman joining us from new york. What a month, in terms of what the futures of the pricing, pointing to a positive opening on wall street when it opens on the first in the quarter. Anna china and hong kong markets are closed, the rest of the asian markets are trading. Lets go to juliet. Juliet it certainly is, anna. We started off a new month and a new quarter here in asia with some good gains coming from the back of that late rally we saw in the u. S. We survey saw good gains from taiwan, up by 1. 5 . The manufacturing gauge as well was above expectations. A lot of focus on the survey which came through, showing a bit of stabilization in the Manufacturing Sector which has really boosted sentiment securely in australia. Up by 1. 9 , and base metals rising in london during a decision yesterday, that is helping out a lot of the players. And japan up by 2. 3 in the afternoon session, we have just under an hour left in japan, korea, and is brilliant. That is despite the fact that we have the survey for the Third Quarter in japan coming through. It did miss estimates coming in at the reading of 12, as opposed to 13. A pickup in japan, korea also had a fair amount to a just today. Certainly, things looking strong for the first trading day of the month. I will have a look at the major stocks that we have been watching in the asian region, minerals and australia and the private equity firms picking up by 10 sending all shares to the biggest surge in 20 months. The commonwealth bank, and the Second Largest Company by market cap in australia lifting the region. In japan, the lifting really being done by mitsubishi and toyota. Both are lifting the index, but japan which we were talking about yesterday, still under intoure by more than 3 american spirit tobacco. The market does not see the like that. But certainly a positive start to the new quarter here in asia. Anna juliet, thank you. Joining us from hong kong. Guy off on the right foot, let us stay in asia. Index, large manufacturers fell to 12. This is from december and a reading a 15. It is still a downward project three, a growing concern that the economy may have contracted in the quarterj that is just ended. james there are two main factors that are causing them to be less confident. The first is the terminal deal with china, exports fell in august. It is where the survey was conducted. And you also saw a total after the yen devaluation, and that is really affecting. Also exports to other Southeast Asian nations, concerns over their economies. The other factor is the domestic economy. While the best economy, there is a concern of recession, one of the factors and that is weak domestic spending. Theyre not buying cars, industrial goods, or refrigerators or televisions. That is playing into weak demand, playing into and pushing down manufacturers like toyota or toshiba. Pushing down their confidence in what is going to happen the next month. Anna falling confidence then as we saw in the survey. The industrial output, where storyhis leave the growth and the inflation story in japan . James it is not in a good position. I mean, if the economy get contract in the Third Quarter which is what a lot of economists are saying after the data yesterday, the minister has been in power for 11 quarters. And the economy only shrunk in five. Coming in to fix the economy and the deflationary malaise japan was under, it has not hand out. You have not seen steady growth. Steady losses like before he came to power, the real question is what does the government do about that . Bank of japan do . Before governor corona came to power, which is maybe one of the reasons why the stock market is rising, will the government have a fiscal stimulus package . Will there be a stimulus this month . The majority of economists we speak to say it will stimulate the economy, whether it happens this month, that is a different question. Government advisers have been saying definitely there will be a feminist package, theyre worried about how much it will be. Those two factors are what are going to happen in the short term for the economy, whether that will be enough to put it on a proper growth path or not, that is another question. Guy james, glad to get your take. Joining us out of tokyo. later this hour, we speak to a former official from the ministry of finance. That will be at 6 45 in the morning. Guy that is a cool name. Out ofre the markets asia, lets take a look at european data. What are we expecting . Manufacturing in the eurozone, the First Reading of spanish pmi for september, and we get the number from italy. Later, we get the aggregate number. The core and the thinning to the periphery, you get italian data coming through and you aggregated into the bottom number down there at 9 a. M. U. K. Time. Twitterver in the u. S. Shares spiked after the company will welcome jack dorsey back as the permanent ceo. Can he resuscitate confidence in the social Media Network . Caroline hyde, she is with us with the details. Favoring continuity over a fresh face. Caroline the return of the man originally ousted back in 2008. Could jack be back . That was the headline across the bloomberg terminal yesterday. That is what set the shares higher. Dorsey could be appointed permanent ceo. Remember, he was interim ceo for more than three months now. He could become permanent ceo as soon as today. There are still a few caveats. Saying that at the moment, they need to be really signing the under operating roles, they need clarity there on the roles of coo. The likes of cfo like the to stay there. The top players back jack dorsey. At the moment, all bets are on jack dorsey returning as permanent ceo. He has indeed been interim ceo since june. Here is the internal candidate the issue was, he was already ceo of another company. The company that he helped cofounder, keeping himself busy, and that is square. We understand that he would remain chief executive of square. Which is interestingly readying aself to sell shares as soon this year. So clearly, there is still much to be really confirmed. It looks like jack is back, and what does he have on his plate . This is a company that at one point saw shares spiked at 1. 5 after hours. It is because they saw their he near record lows in august, we hit a record low for twitter yesterday. Hope thathed on the jack dorsey could be a visionary and roll out new product. Us have a look at the new ones they have brought out. Far, we had the ecommerce that by button is going to the masses. Millions of businesses are going to use that, not just twitter etc. You have polling, political donations, reports you can tweet more than 140 characters. That is a new one being discussed. How much will that help beef up the user base which is just 360 million, compare that to facebook 1. 4 billion. This is the european story. I want to describe it to our viewers this morning, Luxury Hotels that you can get at a bargain if you happen to be of look to get that deal and you remember. It has been on the path since a got funding itself, by german rivals. This is going to add about half a million users to the base, in already has 19 million users 2 million from germany. It is trying to beef up, the secondmost popular destination after spain. The reason they got the cash, they get funding from google and the likes of octopus. Now they want to beef up in europe, and they already made an acquisition in poland. Now they are making it in germany, and the plan is to keep on rolling out in europe. Looks like we could be seeing even more in our direction, if you happen to be on that particular user base. Anna Caroline Hyde with the latest. Guy what we can expect out of asia, we should be hearing from the chinese leadership we think in an address during the 66 anniversary of the peoples republic of china. We think that will happen around 12 30 u. K. Time. What policy announcement surrounding that . Anna the already heard from the chinese premier during the celebration. His message on the anniversary is not easy keeping chinas growth on track. As the worlds secondbiggest economy, it is not easy for china to maintain a growth rate of around 7 on what is a 10 trillion gdp. It makes them even more challenging to build a Better Futures from this point. Anna as he cautioned on the growth, we had a fair share of warnings. The imf chief said growth is disappointing. We will break down her comments, coming up next. Guy it is 6 18 in london. These are the stories you need to know this morning. Anna chinas official factory gauge stabilized at a threeyear low. The managing index climbed to 49. 8 in september, it was 49. 7 in september. Equity futures gained on the news. China and Hong Kong Exchanges are closed today. Guy confidence is falling in japan, the latest survey from the central bank shows the index for Large Manufacturing fell in september from 15 in june, adding to the bad news. The strain on the economy may have contracted in the quarter, which just ended. It was send it back into recession. Anna speculation is growing that the twitter board is set to name jack dorsey as permit ceo. It gained 5 on the news. Announcements could come as early as today. You needdo you think to think about Christine Lagarde . It is all about china. And she says Global Growth will only moderately exhilarated here as the world grapples with the fed hike. China. Wing growth in speaking in washington left my, she said china faces a delicate task of moving to a new growth model. Christine china is in the midst of a fundamental transformation, one and has been called for an expected by many. It has launched deep structural andrms to list incomes Living Standards of the violation. These reforms are by design. They will lead to a new normal of slower, safer, more sustainable growth. Chinas policymakers are facing a very delicate balancing act. They need to increment these difficult reforms, which they have embarked upon with political determination. To stay the course, while at the earning financial stability. Investors were worried about the speed at which chinas economy was slowing. These concerns, the investors concerns, but further pressure on Commodity Markets and triggered sizable currency depreciation in a number of exporters securely in latin america. But as it invests less, china is getting to purchase more of the commodities. This will come in our view, contribute to what could be a prolonged. Ed. A Commodity Prices that will be lower. Anna and our next guest says it has been known for a while that china cannot continue to grow using the old model. What is being missed is the speed at which china is climbing the value chain. Let us discuss that now with douglas morton, head at deviant global. Lets talk about china moving up the value chain, reaching what you call a lewis point. And explain the significance. Las by definition, as china rebounds, they disproportionately impact the primary and secondary demand indicators. The things we usually look at will be disproportionately affected, for example, twice the amount of energy per gdp dollar of any country. Which theyre doing on the treasure industry now cannot apportion gdp the first time. We will have headline weakness. What is happening at the detail at the moment, and we see this both from u. S. And domestic result, the rebounding in terms of the consumer it is performing well, versus the rest of the economy. But particularly, the competitive environment within china is changing dramatically. So china now spends more on research and of element for the first time in history. We are seeing them internalize research and development, and there is different indicators. And the lewis point we talk about, basically, when you no longer have a competitive advantage in low value many factory. And china needs to climb up the value chain in order to revamp the economy. That seems to be happening a lot faster. Guy overlay that on the daytoday. Douglas although we had a stabilization on pmi, the real increases in price, by all gauges, is not only a very strong indicator of future demand Going Forward and potentially the simulation that is in place, and also it is an top growththat the may actually be starting to move. Despite the fact that we have seen these indicators within the detail of gdp slowing being very positive, the top line outlooks like it will destabilize not improve. We see that impact is deliver ies, also sales are serving the cap now. Anna you mentioned auto sales. Why are we seeing, are we backward looking that we think the auto picture is giving us something blooming. I understand what you are saying about the rebalancing, surely they will be telling us the macro picture is not indicative of there may be good experience. Douglas i think you need to separate the commentaries. Inking at individual results Global Companies selling into china, it is indicative of a general slowdown in demand. This is not the case. We have had structural changes, before chinas internalizing research and development. Basically, onbers their own admission, the reason there has not been a slowdown is because theyre no longer using chinese inputs. Theyre using other inputs, the other industries have had issues with luxuries in china. Theyre not necessarily good indicators of the general consumption environment into a. Of the initial stages of reform, of which guy but things are not looking as bad as we thought. If that is the case, why are people talking about further stimulus being announced later today . Douglas the first thing, for the reform enhancements rather than just risks. On top of that, the stimulus that we talk about is not necessarily the way and western commentators think. Ratiosrve requirement in the Banking System are the highest in the world. A lot of people think that is to constrain growth. In actual fact, there is an argument to say that the reason theyre there is order to keep them in check. Starkly, they have been holding back liquidity. Therefore support the growth model that they have utilized historically to grow. Now as that changes, as they move away from export driven growth, no longer need these. The reforms become a matter of whether they need them or not . Anna you do not think they will use that to drive export growth . Douglas i was astounded to the reaction at 3 . Of thehe personification reform agenda that the Chinese Government has been forward. They will support it in the medium term. And the longerterm outflows will see. Anna douglas morton, thank you for joining us. Guy goodbye hong kong, hello tokyo. We will look at why consumers are switching their holiday destinations. Anna plus, Vladimir Putins plans break International Plans with airstrikes. Is his target the Islamic State . That is up for debate, when we return. Anna welcome back, 6 3011. Here are the stories you need to know. Stabilized 49. 7 in august. China and hong kong though close today because it is a holiday. Anna confidence falling in japan, the latest survey shows the index of large manufacturers fell to 12 in september from 15 in june. Adding to the bad news, insert is growing that the economy may