Started to see the pharmaceutical sector taking the edge off of markets. The dow average was a little higher, the s p was down. Day, this had a good on the back of what is happening with this dollar. Sessionless, a negative delivered yesterday. One of the stocks that stood out, let me show you the chart an arands had terrible afterhours session. Really the fact that we had a revenue mess. Yumchina recovery story for not quite as tasty. In terms of today, we are looking forward to the u. S. Session. This is the percentage miss price. This is where we think the terminal expects the u. S. Market to open. It looks like negative sentiment. We will not get a bounce back. U. S. Futures showing at a flat open. No bounceback after yesterdays selloff. Bank of japan is front and center they are keeping a record stimulus unchanged of its growing speculations the signs of a recession will press it to act towards the end of the month. The media focus turns to the press conference of the governor later this morning. Brett miller is in tokyo and is used to attend due to attend. What happens next . what happens next is the press conference. Iswe remember, the governor fifth key job is to end deflation in japan. He came in with the goal of getting price gains to about two percent. We are nowhere near that. Any comments on that will be key. The governor has said to look past the impact of oil prices. As we know, Falling Energy markets have stripped out the impact of price gains in japan. The emphasis he gives to the impact of oil prices could get a hint to the way he sees inflation going. That, he has made comments about a virtuous Economic Cycle in japan. By that he means that companies are making record profits, they should pass that on to wage earners with higher pay. In return, we would get people spending more. Listen carefully to anything he might have to say about wage gains, tight labor markets, and corporate profits. Some would argue that its more of a fiscal question. That leaves us to the relationship between a fiscal and monetary side of things. Plan for whatjs they want to sue the economy . C with the economy . Bank has been doing heavy lifting in terms of getting things moving. We have had no change today. October, no change in that really puts the emphasis back on the government to think about fiscal spending as another way to get consumers to spend more. If we look right now we have saying5 of 36 economists there will be a boost in monetary stimulus come at the end of october. The ball goes back into the government court. Guy we will watch on the end of the month, a lot of things happening. It is amazing to watch what is happening. Thank you very much. Mentioned the governors News Conference kicks off around 7 30 u. K. Time. Are out of japan, we expecting the pricing of japans post. They are preparing an 11 billion ipo. It is the sixth day of gains for asian stocks, shery ahn has more. Good morning, another day in the green for asian market. Markets. Energy producers gain after oil extended its gains past 49 a barrel. Players areenergy gaining more than 10 . Samsung is also driving the benchmark index higher. They Just Announced a betterthanexpected earnings. They are the heaviest weight of stocks in the cost be it is now gaining 7 10 of a percent. Been fluctuating, it is up 7 10 of a percent. Emergingmarket stocks make a come back. Malaysian stocks are up for tenths of a percent. Biggest asiathe exporters. Waiting fore still mainland markets to open in china. Chinese stocks in hong kong are climbing. Cei is up 2. 6 . Saying that people might be more optimistic ahead of the session. Course china is now head is experiencing the slowest growth. Brands are getting hit by the slowdown in china. More than half of the revenue comes from chinese markets. They traded down 18 in afterhours trading new york. Guy thank you very much. The story out of hong kong. Lets talk about one of the , samsungat is a focus shares jumped almost 7 after posting earnings that beat analyst estimates. Lets take a look at the dollar affect. Caroline a phenomenal move. We are above 7 for samsung. This is the biggest move since january 2009. It tells you how much of a downward trajectory they have been on. It is a big move in profits, of 80 up 80 . Karen gely about foreign currency moves. The dollar is about 12 stronger versus the south korean won. One. Strength of to the the chips area. It is a company that makes chips for other rivals. They also make screens, led displays have been selling well. Profit estimates are up 54 . These numbers are not the full and numbers, we get those in one month. These are the initial estimates coming from samsung. Breakdown, gotten a but analysts say it is up 54 percent for chips. They are expecting curve displays to sell well. Smartphones are doing positively, but not nearly as well as the other units. We expect smartphone profit up 24 . Iphone, iphone 6, iphone 6 plus, that sold in record demand that is doing well. The low end is eating into the market for the lower than 200 area. Clearly the smartphone is still an area of concern. They saw demand far below where they expected for the galaxy s six. At share prices, yes, we have a massive rally if you years it from a perspective, up the most since 2009, where it has come crashing down from earlier this year. When you think about the apple share price, think of samsung i can tell you that 27 billion worth of market cap has been lost since april. Guy thank you very much. That is the Market Update out of asia. Let me tell you what is coming up, well be watching what is happening inside tesco earnings. German Industrial Production, 7 00 a. M. U. K. Time. Then we have the u. K. Industrial production at 9 30 a. M. U. K. Time. Exxon ceo will be speaking at the oil and money conference at 11 00. I think 11 00 is the merkel addressed. Address. French and german leaders i think they are getting a joint of the conference later this morning. I think you will hear a lot about changing planning, the housing crisis, that represents a big issue in many parts of the u. K. Right now. I think that will take center stage of his address later on. Australian up, from to germany, the Global Recovery remains uneven, that is the view from the imf. We see a pick this year in the u. S. And the euro area, japan had a strong q1 showing that is beginning to look wobbly. Within the advanced economies of course there is also heterogeneity. Some of the advanced economies are commodity exporters. Canada, norway, australia, are facing headwinds. Guy we will look more at what the imf sees in the future any trouble ahead it expects. Plus, how do you fix 11 million cars. German regulars have told vw they have until today to set out a plan. Details are getting them back on the road, next. Guy it is 6 15 in london. Here are the stories that you need to know. The bank of japan has kept its record stimulus unchanged with todays Monetary Policy decision. Growinges amongst rumors that the the governor speaks this morning and he focus will be on any hint of adjustment for the october 30 meeting. Has told as at vw german newspaper that he be intends to begin recalls in january. He hopes all cars will be repaired by the end of next year. He faces a deadline today. Afterg shares have surged thirdquarter profits beat estimates. Chips and displays have become central to reviving the company. The weaker korean currency is also helping to boost sales, i. E. A stronger dollar. Start recalling 2. 8 billion vehicles next year. They have told the Company Workers they should be prepared for pain. Lets go to hans nichols. The implications of what the new boss said yesterday. Hans he is the head of the Works Council that heads about 50 of the seats on the board. He says there will not be in a shouldses and workers not pick up the tab. The new ceo was not quite as definitive. He warned of pain to come. Here is what he told 20,000 workers yesterday, he said we will review all plant is notents, and what vital will be canceled or delayed. I will be completely clear, this will not be painless. Billionview is this 86 longterm spending plan, it also included costcutting. That is under review. Cut,are potential areas to there is a billion dollar upgrade in mexico. Some analysts were talking about scaling up back. You have executive bonuses, they have been clear that they will not provide those if they will have job losses. You take a look at other spending, research and development, they spend way more than competitors, more than gm and ford combined. Annual r d budget. You look at their percent of what they actually spend on their worker salaries, it is about 16. 7 of their total sales. That puts you north on last years numbers, 30 billion. Those are some areas, they obviously want to be more efficient and have profitability. That has been a challenge these last few years, it has only gotten more difficult. Guy what do we expect to hear . Hans today they formally submit the plans to be German Transportation authority. What we heard yesterday in that interview is they plan to start oft recall at the beginning january 2016. The question is, will it be expensive or cheap . That the carsis in germany will require a software upgrade. That could be a 20 euro fix. It depends on their jurisdiction, how drastically they will have to fix it. What he is saying is, they do not want 1000 fixes for different jurisdictions. They want three. For places where they do not need to comply, they will do a light fix, at the other end, an entire new car. Guy that sounds expensive. Thank you. What do we investors need to hear today . Arndt ellinghorst is the head of research at investment bank, to my. Good morning. What do we need to learn today . What will give of clarity us clarity . Arndt ellinghorst so far there is limited clarity. They need to make big steps to restore confidence. I think drop by drop, area by area, country by country it will take till the end of the year. Guy it is a long time before we can put a number on it . Arndt ellinghorst we can put a number on the recall. 6. 5 said it would cost billion euros, i want clarity on that. The next thing is, how much market share will they lose in europe and the u. S. Thirdly, all of the legal fines, that might drag on for years. Be apresumably there will sales head, but the sooner they get the fixes in, what is the lag time between that and starting to see sales recover . Arndt ellinghorst i think it is between 36 months. If you compare it with toyota recalls, the consumer usually comes back quicker. Some people put the numbers in spreadsheets and come out with big numbers. The consumer is normally rational if the company is honest and fast at fixing. Theyl use discounts use discounts . Is there a package that will affect the bottom line . Arndt ellinghorst they clearly have to help their dealers. Their competitors are all over them. Some of their peers are offering conquering bonuses. Cheeky. Bit is included in the 6. 5 billion so far, it could be more, it needs to be seen. Guy can i take a step back, you this,vw in me about some ways was in need of a shakeup. This may not be the way you ultimately have wanted to do this, you would like to manage it on your own terms, but you look at them, do you think they will emerge healthier . Arndt ellinghorst many people, including us, have insulted them for being overly german, overly bureaucratic, running the company for growth and not efficiency. A rate of destruction moment. What has probably been needed for the company to wake up, they need a complete change in leadership and culture. Many people say because he has been run too much with fear. Said working for the company is like working for north korea without labor camps. In the atmosphere, people do not run the business as efficiently as it could be. ,hen you look at the cost base it is unparalleled to any other company. Guy how do you think that costcutting will work . And next plus one . X plus one . they have aorst huge amount they spend in r d. It is also about complexity, sharing components, using what they have within the root to develop new cars within the group to develop new cars. Complexity, and more shared components, and rethinking the number of brands and products that they are running with. Guy the stock is trading at 97, i listen to you today and i think, i want to own this stock for a long time, it will generate not returns now, but in the future. Is this a place i want to look at . Or do i need further understanding . Arndt ellinghorst it depends on your risk profile. Model, they look at it the way you described it. It could be interesting, if they get their act together. This is a company that should be earning 1520,000,000,000 euros a year. If you look the through the current pain, it could be interesting. As a buy rating, it is not great. It is a very unfortunate situation. It could be an opportunity for some, but we need more clarity. The Company Needs to be more shareholder friendly. Guy thank you very much. Arndt ellinghorst, the head of automotive research. No way to there is prepare the 2016 budget and break and for the Sovereign Wealth Fund for the first time. The imf is facing severe headwinds. More of what western europes biggest crude producer is up against, when we return. It was like a fairly negative market this morning. U. S. Futures are not great at this moment. We will take a break, we will take talk norway when we come back. Guy welcome back, it is 6 30. London. Let me tell you about the stories you need to know about this morning. The bank of japan has kept its record to know if unchanged with the monetary decision. Will presscession them to act of the end of the month. The governor will speak this morning, the focus will be on any hint of a change of policy at the october 30 meeting. Has told as at vw german december he plans to begin recalls in january. He plans to have all of the cars repaired by the end of next year. Sources say that renna may strip restructure. Ventureearold joint was created when nissan was on the verge of bankruptcy. Nissan has become more profitable, it is now worth twice as much as rental renault. Caroline we are taking stock after the slight pause in the rally in the u. S. Yesterday. We are seeing the u. S. S p 500 faltering yesterday, down 4 10 of a percent. , especiallycky road in context with the rally we have seen, the longest since december. A rally of 5. 6 . We are coming off of those highs. Futures are starting to point a little bit higher for the u. S. Digest thewill still effect of a no fed hike this year. Many feel the probability will be 2016. Japan holds still in terms of its central bank stimulus. Optimistnot all of the optimism. At the moment, lets have a look at oil. Currently, the longest stretch in six months, look at the surge since october, up more than 9 for wti crude in the month of october. This is all down to inventories, apparently dropping 1. 2 3 Million Barrels last week. That was reported before Government Data comes out which they later today. That is helping asian stocks go higher today. Keep your eye on one european stock or stock, nokia is in talks to buy out another company. It is trying to diversify themselves away from Wireless Networking gear to more clouds networking. They just outlined their restructuring. They say they will conduct their Network Businesses through four separate unit mobile networks. Applications, analytics, and ip optical networks. That is a bit of restructuring. Guy thank you. Minority government reveals the budget plan later today. They could start tapping into the 830 billion Sovereign Wealth Fund the country has. The fund was set aside for future generations. They might use it early to ward off a recession caused by dwindling oil prices. Us, wass in context for this inevitable for us to use the reserves . The Oil Price Drop has been dramatic. Clearly, people here did not think this was anything that was inevitable, the same. This soon. The economy is struggling. The government will probably later today announced record use of its oil fund. The finance minister told us she wasning as we as walking out of her home, the budget will be expansionary. It will be set up to tackle the challenge of norway, which she claimed were challenges they have not face for many years. What has been leaked so far is 910 and cutsout to the Corporate Tax rate. Targetedthere would be measures to tackle the oil regions of the west coast of norway where people are losing jobs by the tens of thousands. Fund, it willoil be a razor thin margin, if they need to withdraw from the fund next year. The fund is set up so it is used as a buffer. Income, theo oil fund will probably use dividends should the government decide to start withdrawing. We will see we will have a better idea at 10 00 just how much it will need to take out, if that is the case. We have heard noises about how he will change his investment travesty, in a low return environment, it must be struggling . Yes. It has a return target of 4 . Whereo said that given bonds deals are, that will be hard. ,t has been shifting strategy going into emerging markets and frontier markets, which obviously has not paid out that well for them recently. Given the lack of new funds coming in, it is making it harder for the funds to shift strategy. They used to use inflows to go into new markets. Potentially, that could mean if they want to shift strategy in the future, given that they are not seeing inflows, they would have to sell some assets. It is also looking to expand its real estate holdings, and potentially getting into infrastructure down the line. It faces a lot of challenges. Guy thank you very much. Norway government has made bets on the price of oil. Debtdary distress investor, thanks so. He said that predicting the oil price a year from now is beyond us. Knowing the mike doyle in six months is credibly valuable and impossible. One thing i try to convince people is they have no idea about the price of oil. I make it clear to them by of the take the price year out, add and subtract five dollars. I will bet you 100 you are wrong. Whatever your prices, i will bet you you are wrong. I had one guy take me up. Saidve me his card, he 100 we are on, i take 35. I am going to win. I will do that debt bet all over the place. Guy interesting. Nick carn is the founder of carn advisors. How do we predict oil . Carn if you are experienced rating and you have an 80 confidence in the market that will be between 80 and down 15, it is weak. Guy had ecb world how do you see the world . Nick carn you can set your sales by broad trends. We went through a long inflationary trend during the late 1960s and through the 1970s. Then we we