Once again, when you talk about data coming out of china. Guy it seems like a familiar theme. But the aggregate is interesting here. The chinese inflation data and aggregate again just adding to this overall picture, the chinese economy is slowing. And as a result of which, maybe well see reaction. Cpi story, speculation the central bank would do more to stimulate the economy. There is ongoing weakness the factory gate deflation story. We have a chart that shows just how long we have been in negative territory, that the 2012 is as far as you have to go to find a positive number. 43 those are the months that we have seen it in negative territory. Guy that has an impact around the world. With weakcoincides growth, we have a chart here on bloomberg that shows the deflationary trend running around the weakening and Global Growth that we saw. Guy we have intelligence out overnight, a company is breaking estimates. We will bring yo that and have back and analysis in a couple of minutes. It looks like it missed on the revenue line. Anna lets get to asia for an update on how the markets reacting. Yvonne man is standing by. Morning, we see asia extending the losses all across the global markets. It is really marking the second day of losses we have seen in the region. You mentioned that read on Inflation Numbers in china, Consumer Prices and factory prices expanded for the record run inflation. That adds to concern in pacific nation. Everywhere except singapore, and may take a step down 130 billion in market cap wiped out. Yesterday, the damage was at 230 billion. This is what is really happening across the board. Let us take a look at the major indices real quick. Somethe exception of maybe constituents, they are in the red. Also take a look at australia, as well. Were seeing it down 1 10 of 1 . Angapore managing to avoid recession, the central bank is easing policy for a second time this year. Some economists still think this is a subtle move. But what were seeing in the lookingght now, china like this coming back from the lunch break, down in shanghai and hong kong. Down three quarters of a percent. The are trying to weaken yen since the most since august 2013. Lets get more on the chinese numbers and where they will take us. Let us go to beijing, tom is there. We are watching the Inflation Numbers edging down in september. What is this data telling us about the state of the chinese economy, and where we have to go next in terms of policy . I think low inflation is telling us a story of our economic weakness. In august, we saw a little bit of a jump in cpi. But the story there was really a supplyside shock on agricultural prices. No one expected that the last. And indeed, the september numbers are showing the cpi edging back down to 1. 6 year on year reading. It points to very low price pressure, the demand remains very weak. Putting that together with all of the negative numbers weve had recently, numbers on the pmi and on exports, the scene is really set for further easing into the yen. Anna what does this mean for the export deflation, that side of things . On the one hand, if you look at cpi there is speculation that there might be more action on the central bank. But as you were, on the deflation story, 43 months of negative points on that number. Tom it is been an extra ordinary. Period from the factory sector. That has negative impacts on the economy. Producers arei expecting the price to go down, theiris there incentive incentive. We saw the central bank talking about how low demand is weekend. One the reasons is that producer rice is falling. There are really two drivers for china, one domestic overcapacity. The other is international. We are in a period of low oil prices. If you look at history, it was in the Fourth Quarter of 2014 that oil prices really started the plummet. So actually, in the months ahead, we will start to see some of the impact of low International Commodity prices dropping out of the numbers for china. I think we will still be in the place very territory by the end of the year, perhaps a little less severe. Guy tom, nice to see you. Thank you for the analysis. Anna you dont have to look much further than the u. K. Inflation data to see the effect. Here are some of the other datas we are looking at, 9 30 we get u. K. Jobless claims. At 10 00, we have euro industrial production. And later we will get the fed beige book. Guy bank of america and wells fargo report tomorrow. Overnight, it was jp morgan kicking off the reporting season in the u. S. They warn that the pain is not over for Trading Operations come off to a tepid start in the Fourth Quarter. Lets bring in prison for wheeler, good morning. Fixed income and commodities, no real surprise that these are the areas that drag down jpmorgan. Obviously, the beginning of september there was talk of 5 decline in trading revenues on fixed income. Jpmorgan actuate saw the 3 . September was brutal. Anna not going to get any better from what they have said. They are not talking up the Fourth Quarter. And of course the most telling thing, common across the banks is that the cfo came out and said that we would take out 2 billion in costs down to the cost base, another half 1 billion he is looking to take out. I think that is the right thing to do given the fact that the out look for revenue is so dole. Anna they are looking at the right spot. Christopher it is still a very strong bank. Capital position is strong. They had a decent use, the fact that they have this global systematic buffer. The fed has effectively doubled up what they suggested. It to them up to 4. 5 on top of 7 base capital. That came down to 4 , which is a lot of money about 30 billion in capital. They have been managing down their balance sheet. That is good for shareholders because it is filling up more capital for them to keep commodities. Toit is not what to get down 3. 5. Guy that is as good as it gets. Institutions,her what can we learn from jpmorgan that we can now transpose to others. Christopher to some extent, Goldman Sachs and Morgan Stanley more dependent on fixed income. That will hurt. Good bad kennedy . Can it be . Of thisher the irony is that jpmorgan goes offers and puts out results that are the best. We will look back and say this bank is performing well. I used that word in our meeting recently, because i think that is decent results in a truly awful quarter. Some of what is happening of a prices of come down on the back of the noise about china. I think you have really high quality banks like wells fargo in jpmorgan, their statements. If you want high yields, looking at quite cheaply, and where they were a few months ago, when they looked a little anna what about the more traditional banking side . The advisory and all the things going on with the debt underwriting . Christopher Equity Capital markets were truly awful. Down quarter on quarter for the industry. The ipo market close. They are making positive noises on the paul he call leslie. Capital markets were off, but that area looked quite robust. Everybody is critical down the mma market. We still pumping on. One of the things i keep talking about, private equities, they get pushed down. Really an issue at the moment, a lot of unused capital. They are struggling to find deals. It would be great to see that. That is not the noise you hear. You are looking at barclays, what you can do with your business, he knows that business. And he will learn a lot about that business. What is he going to do . Christopher he is starting 30 yards behind the competition in the race. He was clearly in the race, but it was a politically acceptable for him to take the job. He had a chance to shake the bank with all of the changes. Barclays, the cfo a worked with him at j. P. Morgan. They have the same sort of mindset about what needed to be done. But i think the key thing here is that one must member, he has been sitting on the Management Bank with a big investment business, sounds a lot like barclays. What he wants to be seen as is a man not just as an investment bank, but one who comes out of Good Management training. You can allocate capital of poorly. Just like deutsche bank, it is not a sixmonth job. Anna talking about the rest of the sector, there is argument that we have seen other players in the euro space, stepping away from the investment bankings eye. There is lot be gained from a tank that wants to go after that part of the business. This is a different story for the barclays weve seen in recent years. Onistopher Joe Mcfarland monday, it was a precursor to today. As someone who follows u. S. Bank banks, im happy to see them taking market share as they continue to do. But for the europeans, i do scare some of john mcfarlands concern. This may be, it means cancellation between units. Were talking about credit , having a bigger entity may be to flinch, dare i say working with the british in terms of creating a stronger player. Who knows . Inhink they asked us to come and think outofthebox a bit about what they need to do with the investment banks. Wheeler, analyst at atlantic equity. Guy caroline hyde, over to you. Caroline what is the fate . Today, the number one player. Enol offer foraking an deutsche roman. Of 1. 9s to be in excess billion for the equity. That is about an 11 premium the company says about where the shares traded on average over the last threemonth. Debt with athe premium, you are getting a value of 14 billion euros. The way it is broken down, for every 11 deutsche shares, you novia. Et seven four knovo this is the number one try to take over the number two. They have in trying to buy out another player in germany, as welker it really has been a spree of battles for size in germany in the resident market. September,back in they made an offer for 1. 6 billion. We will have to see that smaller deal goes through. To number two player trying compete against the acquirer. Number one landlord in germany trying to buy out the number two. And it is 9. 9 billion euros in equity value. Guy thank you very much, indeed. We will talk about the first debate for the democratic president ial get it is. Sanders it is the greed and reckless behavior of wall street, where fraud is a business model. It helped to destroy this economy in the lives of millions of people. [applause] i thinkclinton when about capitalism, i think about the Small Businesses that were started. Because we have the opportunity and freedom for people to do that. And to make a good living for themselves and their family. And i do not think we should confuse, which is safe capitalism from itself. Guy Hillary Clinton at the democratic debate in vegas last night. Up next, the woman with the blessing from putin. How to get inflation down from 60 to 4 . Big odds . Maybe. You will find out after the break. Back. Welcome there are stories me to know. Weaker prices in september for china, leaving the idea for Monetary Policy to be eased even further. That is down from 2 in august. The august number was a bit of an anomaly. Prices fell for the 43rd straight month. Has singapores bank narrowly avoided a recession. The monetary Authorities Say they were reduce slightly the inflation and a currency. Grew in september. Economists had suspected a contraction. Guy the largest u. S. Bank said revenue fell, drew to a slump in failing. Mortgage banking result shares in jpmorgan fell in extended trading. Anna the London Metal Exchange week. Industry key players are gathering in london to talk about metals. Ahead of the annual conference, we caught up with the chairman of the worlds biggest copper producer. Hea bloomberg exclusive, told us Commodity Prices have become disconnected from the fundamentals. Do a very simple analysis of the price, it is very obvious that copper prices but also a whole variety of commodities they have become volatile. They have acquired a life of their own, one would say. Away from the fundamentals. And that is just the reality of markets today. Guy it has been a year of oversupply and weak demand, much of the blaming put on china. Speaking to bloomberg in the same interview, oscar said he was not too concerned about the situation. Oscar we are still in good shape and the chinese market. If you look in the overall situation, i think we have to be very sincere and say there are a lot of people talking about china. But i dont think there is a broad understanding of the nature of the adjustments. We all know there is an adjustment. Everybody has his own theory. This willieve that take a couple of years, will take some cleaning of the balance sheets. It is a process. But in the end, the fundamentals for demand for copper are still there in the longterm. And so we believe that we will still be in business in china for a long time. Copper, confusion the main story that is emanating both from that interview and from lme week. Lazenburg really confused about china. Why is he confused . One possibility is something we will talk about. Ken kaufman is good at making the good speech at bloombergs metal conference in london today. He joins us now. Ken, your speech is called the emperor may have no clothes. Explain. Ken one of the things we know the chinese have been doing over the entire course of the past 10 years is people, small to mid users, can to thousands of them, have been borrowing outside of china at 2 . To finance the inventory, since you cannot freely bring money in and out of china, leaving the copper sitting there. Then going to the local bank with those dollars, changing it into youan. Ft said 70 of copper was used for this. We are met with many producers who say i do not run my equipment. All im doing is bringing it in, financing it, it is a free way to make a lot of money. I met one guy who said he had 2000 tons of pipe capacity, he was using 5 . He cared about financing is copper. Anna if you have all of its copper just sitting around there doing nothing, not being used to build anything, just being used in this financing activity. How do you get a sense of how big this trade could be . Ken you have no idea. That is why ivan is so confused. If the number is right, that is 25 Million Metric Tons about a year and a half of global supply. In the big question for every analyst right now is if chinese demand was not real, part of the demand was fake, it was just being used to pile up warehouses, instead of china being half a world copper demand, maybe there only 40 . And so that number as it comes down, it means that the demand looks good. It could be good, but in terms of what they really need to bring into the country, it can be far less. That is why the copper price is falling. Gu speculatey on how much it could fall if the trend continues. How long will it take to unwind . Ken nickel has been the canary in the coal mine. The Worlds Largest provider is indonesia. It came out two years ago and said they will not do anything less you build a smelter. Last year, everyone said nickel. We love nickel. The price is down 60 . Why . It has been crushing the price. If this happens in other areas to make a beep be devastating. So what you have to look at his ners are cutting to keep the price i. Right now, there is only one. And that is glencore. They know china better than everybody, or the other miners arson do not worry. Anna it might not be legitimate. But i suppose it only impacts the price, if it starts to unwind. What clues to you have to the guys doing this will just keep on doing this . Are the same dynamics in place, the still make sense for the slightly less legitimate trade to take place . Ken a could be a 2016 event. What youre looking at, if the chinese are starting to do things that make a turnaround. They want to stoke the economy and lower Interest Rate, much like the u. S. And they have been lowering. Depreciatingan. If they start to lose money, stop doing the trade. And the banks will start selling the material back to the marketplace. And that is the unwind that does not happen, we hope. Guy we talk about copper, so the other metals. Are we talking about oil . Ken anything they can trade financing on chemicals, gold, anything they could use is for. Ed aboutdely talk a metals, the ever has no close. You mentioned the nickel market, this is been happening. This is gaining currency, this argument that people trying to increasingly get their heads around the scale of this. Ken i think some of the smarter players who of the smarter players who have been around, this happened in the early 90s h smaller scale. The effect was brutal. It could be happening again. Ken, thank you for joining us. Saysnext our next guest Economic Activity will improve. Why is he seeing the glass as halffour. We will find out when we come back, after the break. Guy 6 30 in london. Good morning. Here are the stories you need to know. Anna Consumer Prices in china came in weaker for september, leaving room to ease Monetary Policy even further. 2 inse by 1. 6 , down august. Factory gate prices fell for the 43rd straight month. Guy singapores central bank has ease policy, after they narrowly avoided a recession last quarter. The Monetary Authority of singapore said they will reduce the depreciation in the currency. Gdp rose 1 10 of 1 in the threemonths through september. Economists had expected a contraction. As with. Organ missed driven by a slump in trading. Shares fell in extended trading. Guy let us turn to russia. Back to russia, Ryan Chilcote is back there. Choked by sanctions, let us see how big business is faring. Ryan is joined by one of the countries biggest the telik medications company. Actually russias largest mobile company. Thank you very much for joining us. I want to start by asking you where things are today for business in terms of funding . You you and i spoke last, were talking about a crisis of liquidity. Are we still there . Last, we talked in december. I think that was the worst year. I dont think we see the liquidity strength in the market. Tight toit will be start the investment cycle. And i think that we will see, and that is what we showed ratesday on the forum, going slightly down further. It then we will probably see for a good investment cycle in russia. Ryan rates could go as low as 4 by 2017,