Let us talk about the currency market very briefly. As an introduction to set the scene this morning, the euroyen set for the worst ever losing streak against the euro since 19 59. This particular pair getting a bit of a chill ahead of the ecb mating that is looming. Story than broader that. It is the euro weakening generally, against most of those 60 major pairs apart from the danish krone. As you can see, that was back in march and april time. An interesting one to watch. We will have more on that and does the moment. Let us get to the bloomberg. Nejra france and russia have agreed to coordinate strikes in syria to increase the focus on jihadist militants. That is after president Francois Hollande and president Vladimir Putin met. Differences over assad. Commerce sales surged yesterday, raising questions about how many will show up for brick and mortar promotions for lack friday. According to adobe, sales are expected to total 1. 7 billion. President ping announced a Major Overhaul to make the largest army or combat ready. He told military officials that all branches of the armed forces will come under a joint military command. He is also insisting that the military maintains correct political direction. And the euro is set for its longest stretch of weekly decline versus the yen since its creation in 1999. That is as anticipation builds that the ecb will surprise with the size of stimulus next week. And that is your bloomberg first word. For more on the stories and others, at the bloomberg. Com. Anna thank you very much. Let us put the Current Trading picture into perspective. Lets get up to asia and find out what is moving markets over there in the trading day. Yvonne man is standing by with a pretty good picture. Yvonne we are seeing a selloff in the asian pacific. Not a good friday. Not really a great week as we wrap things up. Required, given the u. S. Holiday thanksgiving yesterday. We are seeing some read here, the shanghai composite down 3 . That is the biggest since september. The China Industrial profit, that was a big culprit here 4. 6 fall on the year. Five straight months we have industrial profits drop. And that is down one third of a percent as we wrap things up. We did get core Inflation Numbers falling 1 10 of 1 . Core inflation, that was the one to watch, that excludes all food and energy. Still, far from the bank of japans 2 inflation project. But on the broad sink we are seeing an up trend. We did see that they did raise 6monthrence rate, chart, you can see where hitting levels the summer, you may remember the evaluation that sparked this global selloff. Ghed onde on the wei the concern that the remedy that china will get the slower than anticipated imf reserve currency back, that decision happening next week, as well as chinas pmi. Securitieses today, those are be investigated by a regulator right now. For a legend rule violations. Close to 9 . We talked about this all week. The ceo and chairman is still missing. They did send inspectors to the office. Suspensions, the still waiting on a statement on that. Anna yvonne man with the latest. Five minutes past 6 00. France and russia agree to coordinate strikes against syria to increase the focus on jihadist militants. President clinton and i president Leonard Hamilton and i will Exchange Council of all kinds, notably between our armed forces. The accounts of the Islamic State will take place in a coordinated fashion to increase our effectiveness, particularly attacks on the transport of oil. Thirdly, and president has given support your, the forces fighting against the terrorist groups must not be affected by our actions. Need to hit them and daesh. Anna president Francois Hollande was rallying support. Ryan chilcote is in moscow. Merkel, and now lender putin are all on board. Has Francois Hollande succeeded . Ryan in terms of the pledge that he got from Vladimir Putin, the russian president planning to coordinate strikes with france. And also to avoid, using the russian president s words, going after moderate forces by not just the Islamic State but of course the syrian government, itself. If the russian president makes good on that pledge, that he made at that press conference yesterday, and the talks with the french president , that would indeed be progress. But the United States, many of the u. S. Allies are fighting in above,bombing syria from they complain that the russians have been going after pretty much everybody but the Islamic State read because their main goal there has been to prop up Bashar Alassad, not to go after the Islamic State read but if Vladimir Putin keeps his word, as the french president suggests he would, that wendy be progress. And progress would be the most we could expect out of this meeting. Anna yes, indeed. A major slideshow to all this, that is the geopolitical situation. What about the economic situation, the fallout from turkey down in the russian airplane . We understand letter putin has ramped up sanctions. Morning, itday looked like it might because medic the introduction of sanctions, restrictions on turkey. Then it got worse. The russians announcing they will not just be parting with furniture, childrens close, and food, and were a lot of food is coming a lot of vegetables coming from turkey after russia imposed similar restrictions against them, but the russian Prime Minister then spoke and said that even Turkish Companies could be banned from doing business in russia. No specific measures but very serious rhetoric coming from the russians suggesting they have prepared the economic embargo, this trade war with turkey right to the hill. Anna . Anna ryan, thank you very much. Ryan chilcote joining us from moscow. Ekerre joined by hans red from Morgan Stanley. Good morning to you. Lets talk about the geophysical angle. Is this playing out in your fx fear right now . Certain currencies in focus. Hans while i remained generally bearish, i will also say the russian ruble is not that bad. Of course, we have to increase the risk premium in the ruble. But when you look at other factors, they are quite supported for the ruble going forward. Russia is back in play. You will see that the sanctions against russia are going to be reviewed. So thquestion is, they are seeking this alliance against state, iislamic think it is very unlikely. I think you will have a partial list of the sanctions, which should be positive for the currency. Secondly, there is a restructuring story taking place in russia. Third, when you look into what happened the last couple of years, a significant decline in the russian ruble. Fromhas allowed revenues exports of oil and other commodities to be less hit when compared to others. I think that is going to stabilize, as well as the local investment. So the outlook for the ruble is not as bad as far as emerging market currency goes. Anna some people have suggested in that very seat that there could be this rapprochement that could be seen as traumatic for the ruble. But on the other hand, the russian economy, it is still entrenched. You seem to believe in that . Hans the structural changes in the economy are visible. On the oil price, of course, we have to admit that there is quite a bearish factor going forward. If you want to play that on the oilneutral way, you could buy the russian ruble and say you take canada or norway against it, you take the oil and get it out of there. On a relative basis, the ruble should be ok. It is no longer perceived as weak as a year or two years ago. Anna geopolitical influence on european economics, perhaps, as you describe it, you and the dutch prim finance minister talking about shortterm investments. How is this changing the landscape, do you think, from that perspective from the fiscal side . Hans when you take a textbook, you say there is a better fiscal approach, fiscal expansion is a currency support. I think that could have some small stabilization into the euro. But beyond that, you need to look into the Growth Potential of the european economy. How much all economists estimate the Growth Potential at 1 . It is inevitably lower than it used to be. The question you have to raise, how can you generate a return of lets say 2. 5 , as many Pension Funds in europe are supposed to do, within an economy that has low Growth Potential . That actually means the real money accounts become exporters of longterm capital. I think that is going to take the euro longer. You have mentioned this before, we have seen the euro in a losing state environment for some time. At one point, and i think it may be around early december you will have a rebound in the currency, but i think that is going to be shortlived. And providing opportunities for selling. Anna we would talk more about the euro. Hans, join us for Morgan Stanley, thank you coming up next, the inflation gauge is falling for the third and month. Isimulus on his way stimulus on its way . That is coming up, next. Anna welcome back. Here in london it is 16 minutes past 6 00. Let us get to the Bloomberg Business news. Chartered is up against another hurdle when the bank of england releases stress test results rate last year, regulators stepped up scrutiny on exposure to emerging markets. Like others, they generate most earnings in adrian aiming to see what the perspectives found for the superjumbo, the company is pitching a new version, said to be the ideal congestion buster for carrying children to mecca. Ceosaudi Arabian Airline said he declined to comment further. And Goldman Sachs as appointed englands new National Rugby coach to the of eyes report in japan. Eddie jones will join the board. He recently coached Japans National team to win an unprecedented three games and this years rugby cup. For more on the stories, had to bloomberg. Com. Anna interesting search for talent there. Thank you. Let us tell you what is happening in the asian trading session. The shanghai extending losses, it was actually down as much as 5 a few moments ago. Now down by 4. 8 . Brokerages, and also we have had weak industrial profit numbers come through the for the month of october, underlining the weakness in the manufacturing story. And underlining the crackdown on the finance industry that is taking place, ever since we saw that route in equities this summer. That is the Chinese Market at the moment. Let us turn to japan. Core Consumer Prices fell for the Third Straight month. Cpi fell and the jobless rate the lowest in 20 years. We in tokyo with a closer look of the data. What does the Consumer Spending number tell us there . That is another part of the story. Plenty of data out of japan. What does the number tell us . There are several aspects to that number. The court cpi number which excludes fresh foods was down, hovering around zero. Andif you look at all food energy, there was actually a rise in the number. That is what the boj will probably be looking at. Governor corona has said the Inflation Numbers are improving. If you look at the core, that could be the. In terms of whether that will tell us much about further easing by the boj, it is unclear. Different aspects of the number, you can look at it different ways. Unemployment is a good number, the lowest in 20 years. But Labor Force Participation is down. And the overall labor force has actually declined. Wages ofd basically, not been keeping up even though you have a very strong labor force. And that also meant that Household Spending numbers were down as well today. Anna jodi, thank you for joining us. Setting up that conversation for us. Let us get another perspective. Umada joins us from hong kong with analysis. The to have you on the program. In japan, we seem to have core core when it comes to inflation. Tell us what you look at . The indices are a bit silly. There are far to many and confuses people. The number we are looking at and a number i recommend you should are theng at too core inflation index around the world, the cpi excluding energy and food. Now japan is really the only advanced economy or they call for inflation and index them and only excluding food. That, minusok at food and energy, the boj inflation index is up 1. 2 yearoveryear. Still far off at 2 target. But definitely moving in the right direction. Isis more importantly, it starting to move more steadily at the beginning of the year. And of course, over the past 20 years, it used to be negative. That is really a very, very good development. Anna we have an interesting situation with the unemployment picture in japan. A 20 year low on unemployment. The government has been trying to increase participation, get more women in the workforce. What is that really low unemployment number, the tight labor market, tell us about japan . Mikio partly, it is demographic. The labor force is shrinking, as were journalists correctly pointed out. And so it is not entirely due to a Strong Economy, of course. And you need to increase both the size of the labor market by basically involving more women in the workforce. That is however a social issue. Social attitudes, whatever the government would like to do, they simply take more time and told they unfold in a broader way. I think we have simply be more patient. But the big picture is still moving in the right direction there, as well. The what do you make about conversation about more quantitative data from the boj . Does the data today play into your thinking . Mikio well, you know, if i had to make a choice, i am probably in the camp that doesnt really see the need for qe in the future. Theill depend on what Federal Reserve does next month, and also the ecb. But if you look only at the domestic japanese economy, the case for qe is not that strong. All of the nominal aggregates are moving in the bank of direction. I think they will wait to see what the fed does, how it plays out, before they make a move themselves. Anna thank you for joining us. Capitaltrategist at lgt partners there in hong kong. Hans is still with us from Morgan Stanley. Weigh in with your thoughts on the japanese debate. Will we see more qe . Boj my guess is that the have to change behavior. It used to be progressive, but it is now converted. That actually means they will ease if necessary. But most on the monetary side, to break the disinflation there he room, that has been done. All of you on the market, the market is still looking into the disinflation equilibrium will still be there. What i mean by that is, when you ordersort orders and oil are weak, there should be more easing. What you need to look at, too, the Service Sector industry is picking up in japan. Reading forat the services, there is a higherlevel level now than 2006. That is very important to break the disinflation equilibrium. The unwanted rate is declining because of the declining workforce, in a stable participation rate. But nonetheless, it is declining and they are showing tightness. Wages are going to pick up. When they are picking up, you have an impact on Consumer Spending. Last but not least, it is all about the high cash level defined in the sector in japan of totalt is about 22 Balance Sheet volume. One of the highest you find globally. Why is that . Because you have a Corporate Tax rate that is internationally not competitive. That is where japan is going to work . When you have now more fiscal approach, less Monetary Policy approach, you the Corporate Tax rate, in order to have higher dividends and more equity buyback programs. Under that circumstance, it is a completely different set up compared to 2013. Reason wes the worriehe are bullish. Anna you mentioned wages, something the government has pointed to. Unemployment is low. Corporate profits are high. Why are wages are higher than they are now . Hans i think that is a reaction to that. When you have a tight labor market, it is a completely different competitive decision. The power is going to change into the hands of wage earners. And they will demand more. And as they make more, that is how you overcome the time lag. You should expect them being ahead of the other events, but it is lagging other events. 2016 come in a year, it is likely to show a year in japan where wages in japan are growing slowly higher. And you were talking about the poor inflation rate. And of course, it comes down from 4. 9 to 4. 7 . If you take the tokyo reading, there is a different picture. Most important, when you look at the longterm perspective of where core inflation has been coming from, it is a Straight Line going up. I think that is important. So japan is no longer in this inflationary equilibrium, it is headed toward something new. Last and the best argument for against strength, it is due to demographic. The Pension Fund Industry is no longer increasing, it is declining because of the negative net cash flow in the pension industry for the liquidation of asset holdings. That may well include anna we arty have three measures to talk about. Hans stays with us. Coming up, were going to talk about corporate. Debt debt. More on that story, when we come back. We live in a pick and choose world. Love or like . Naughty or nice . Calm or b