Clearly a bit of Risk Appetite in the equity sector. We will have a little luck at the selloff in the euro. Stimulus thats once again rearing their head into the front and center of traders minds. We are starting to see inflation in negative territory once again. That is really adding fuel to the fire that the ecb will add stimulus while we start to see the opposite happened in the United States, potentially a rate hike in the federal reserve. Databer, manufacturing gato aplenty today. It is expected to be growth, coming out at 9 00 a. M. It is all breaking in your hour. And of course we have the likes of u. S. Later today, expecting growth, a bit of a slowdown but still growth. The euro is coming off, and more stimulus from the ecb. Meanwhile, Risk Appetite is hoping the commodity sector today. We are seeing relief in china driving oil higher, driving copper higher, up by a tenths of a percent. Watch out for those miners in oil giants. Lets have a look at some of the other stocks. Bp up more than 2 . Minister ofu k, the the Telecom Sector in a report says he is a skeptic of ripping open reach away from bt. This is not going to be music to the ears of others, but it will be is it to the ears of bt shareholders. They are trying to funds that megadeal for cablevision in the u. S. It is falling as a look to sell shares, but the ipo is selling off, not raising much money. Jonathan caroline hyde, thank you. 40 seconds into the session, the rally continues, ftse up by 77 point. Over in asia, a twoday game. It amounts to almost 5 . Shery ahn in hong kong is standing by. Japan is leading the gains, leaving higher. This despite some disappointing data on the business sentiment, with confidence among large manufacturers worse in the Third Quarter, down from 15 and missing estimates. Korea also has factory output data rising 3 10 of 1 . The cost indexes rising a tenths declining,rts also still slowing. Itsroline mentioned, positive sentiment we are feeling across asia. A closedom china, today but without manufacturing pmi climbing to 49. 8 in september. That has shown signs of stabilization, positive for markets across asia, with stocks rising for the second consecutive day. In newy decline is zealand, because the energy pulls the index downward more than 12 after interest sale from their closing price. In australia, the asx 200 is rising. And wenished higher, also saw the Australian Dollar strengthening for the second consecutive day after chinese pmi data came out with a surge. Of course, two days of theirutive game in china, biggest export market. Jonathan thank you very much. Sometimes it is hard to keep up with what happens in china on the shanghai composite. If you are following glencore, it has been difficult. Glencore stock popped over 7 this morning in early trading, ss, the a week of lo biggest daily decline on record with the biggest daily su rge. Give it a little more context look at the chart over the last month. September, down by 40 . Maybe the chart over the last month is the real story, not the fracture. That is whats happening in markets if you are struggling to keep up. Heads up on whats coming up japan Manufacturing Confidence slides. I china slowdown may mean a japanese recession. Then, a brutal quarter for markets. The imf chief Christine Lagarde warns of disappointing growth ahead. And twitter stock takes flight. The prospect of jack dorsey returning is permanent ceo sends it shares a surging. Shares surging. Chinas official factory gauge stable around the threeyear low. Just below the level which signals expansion. At an event in beijing, concerns were addressed about chinas growth. 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. That makes things even more challenging to build a Better Future from this new point. Jonathan officials in china remain cautious about sustaining such a high growth rate in the future, but in japan, bad news for china may be good news for market. The largest manufacturer index found that the china slowdown could contribute to a possible japanese recession. Japanese stocks are rejoicing. Put it all together. Lets get to Jodi Schneider in tokyo. Is this a big bet on the boj doing more before the end of the month . Jodi thats right. There is a lot of concern about a recession that some economists say. There is a lot of batting and hoping and speculating about what is going to happen, perhaps as soon as october 30. Would be more stimulus added to the unprecedented amount of stimulus that has already occurred. Jonathan jodi, the big manufacturers are clearly losing confidence, and after yesterdays drop in industrial output, are we heading for a recession . Where does this leave abenomics . He is talking about a golden age but it doesnt look so golden. Jodi no, not really. So far it has been incomplete and at some point, you have to get a grade. Right now because of things like the manufacturing index, there is a lot of concern that there is already a recession. Stabilizingy on the of china manufacturing. There is a lot of concern about what happens here. The companies and corporate profits have been going back. They havent been spending them on the economy and havent been contribute into wage growth. That has to happen for abenomics to succeed. Jonathan Jodi Schneider in tokyo. They give for joining us. Michael temple joining us now, at Pioneer Investments management. He manages 40 billion in fixedincome assets. And derek, at bank of tokyo mitsubishi. Great to have you. Michael, the boj took the fight to dollaryen, arguably it hasnt really helps the economy in the way many people thought it would. How did they take the fight to what is happening with china into the japanese economy . It is that process just the getting to play out . Micheal its a great point. If you look at isolation, have you not had the flights of headwinds in japan, you probably would be in a different place. A lote certainly seeing of improvements, at least psychologically, in japan. You are starting to see corporate ceos attended to return on equity. You are starting to c. K. Rises. Unemployment has never been a problem in japanese situations so now we have a situation where you are starting to see that her actions on the part of the ceos, but in the manufacturing sector, they are having to not really deal with a slowdown in china. The number you saw today was a stabilization that we were expecting. It is happening sooner than we thought because the stimulus takes a long time to go through. It should help japan. Derek, this is your chart japan versus the rest of the world. It is not pretty. We dont know what it would be if the boj did nothing. That is worth pointing out. For now, when you look at what is happening, facing the prospect of a second recession, that is not good, is it . How do we turn this around . Derek absolutely not. If we did get a contraction in have had six quarters of positive and quarter on quarter growth and six of negative quarter on quarter growth. Clearly it has not been good on the gdp perspective. I think we have to take into account the big, big sales tax increase that happened during this period of time. I would say Going Forward that perhaps there needs to be some greater focus now on the gdp side to try and get things going. I would question the second sales tax increase, for example. If you are talking about reducing overall debt to gdp, which is close to 250 , you are going to get that dynamic if you cant get gdp up. That is where the focus has to be. But there hasnt progress in other areas. We are not convinced that the boj does anything. Where we are seeing clearest indication is on underlying inflation. Overall inflation is flat, but ultimately, core is trending higher. Matchat its highest level last year, which was the highest level since jonathan i want to pick up that thought. Why are they looking at it as a done deal for the boj to execute on more stimulus . Why do they see that and you see Something Different . Derek i think they are focusing on the growth aspect and what that means for inflation Going Forward. I would certainly except that is a logical argument. That perhapssay is they just want to give it a little more time to see how china plays out, how the emerging market plays out, before making a decision. What were hearing is that the message to policymakers as we like fx stability and we dont want further yen devaluation. Jonathan that is what it has for now. What it hasnt got is jpycmy stability. They may have dollar stability Going Forward. Michael, have you been surprised by how neutral the policy response has been from the pboc . Yes, they cut rates, but this hasnt been an aggressive cycle. They still have a lot of space to play with. Pimco is saying the yuan devaluation could amount to seve 7 . Derek it would be difficult to absorb within a modestly percent 4 devaluation. You had seismic tremors cascade through the financial markets, and a real concern that china was going to adopt a devaluation pact toward better growth. But we never really believed that was occurring. It may have been handled improperly in the sense that you can have problems with the stock market debacle, and there are questions about what they are doing on the currency front. But the reality is that i dont think china is at appointments Economic Development where it believes that a massive currency devaluation is going to help overall growth. To restructure their economy a bit more towards consumptive services. That isnt helped by a massive devaluation. Our belief is that if they were truly trying to change the currency regime so that they could get acceptance into the imf program. Jonathan what question to you, derek, when you look at dollaryen, they might have to but if theynowon dont move, are we set for an aggressive retracement on dollaryen . Derek we were talking about that earlier, myself and my colleague. If expectations continue to build the stability story, it comes with the risk of volatility the other way, for sure. What i have a soothing is that the u. S. Story continues to play out, and is expectations gradually build, yes, you probably have a correction, but it went to be a trend as long as the u. S. Story plays out. Jonathan derek, michael. They stay with us. Thank you for joining us. , a brutal quarter for markets. A year to forget so far. Lagarde warns of disappointing growth. More of whats in store for q4 after the break. Jonathan as we close the books on a brutal Third Quarter, 2015 is quickly becoming a year to forget for many investors. Analysts have cut growth forecasts. It is a sentiment that has been echoed by Christine Lagarde. Global growth will likely be weaker this year than last. With only a modest acceleration expected in 2016. Emerging economies are likely to see a fifth Consecutive Year of declining rates of growth. Fifth Consecutive Year. India remains a bright spot. China is slowing down. It rebalance is away from export led growth. Orntries such as russia brazil are facing serious economic difficulties. Growth in latin america and in general continues to slow sharp. Slow sharply. As emerging markets suffer, the picture isnt much better for bond investors, who suffered their worst quarter in four years, and there is no sign the pain will and. Michael temple, director of the u. S. Credit research, manages 40 billion in fixedincome assets. Michael, a strong dollar and a weak yen. How far through that cycle are we . Michael i think we are probably about two thirds of the way through the cycle. You suggested that we begin to see the fact that we were in the beginning of a bull market with the dollar back in late 2014. The idea here was that the u. S. Economy would essentially diverge from a lot of other it developed world economies, as well as emerging markets. We see that story play out in 1990s, and we ask what are the implications for Global Financial markets . What we wanted to do was we wanted to make sure we were in areas of the world that will benefit from a strong dollar and make sure we had much lower allocations to areas of the world. Clearly, commodities, anything related to dollarbased services and goods are going to suffer. The big question that i am getting right now is where does this and . This end . Do you end up with a strong dollar and a week Everything Else . Jonathan how does this end . We are talking about the bank of japan, the Government Pension Fund buying other asset classes. What happens when the Central Banks try and pull back . Are people going to fill in for them . Michael its a great question. This is classic fund pressure. The person who was here earlier mentioned this. We saw this in the 1950s coming out of the second world war, with all the debt countries loaded up. Banktially comes central said, ok, everyone is buying treasuries, and you cant own gold. We are seeing the same thing to a certain extent go out and buy equities, and were going to bonds. We needobal to reflate the world. We are still in that same playbook. Jonathan final question. We have also seen this ridiculous reach for yield credit taking a beating. For your fund specifically it is ago anything, by anything fund. For you, when you start to think it is time to pick up the pieces . The damage is done . Or does it get worse . Michael this is a question we are debating very hotly. We began to get pretty conservative on credit starting in early 2014. At that point it was more valuation, so they were one standard deviation rich to their longterm historical average. It is never a good time to own credit in a massive way. Have seener hand, we the same thing back in 20042007, when it was one standard deviation cheaper. How long will that take place . My concern was given the stronger dollar, which is a different thing this time around, credit will start to weaken similar it started to weaken in the late 1990s. That what we have had is a pretty significant repricing and credit. It is now cheaper than longterm averages. The question is do we now start to go back into the waters . Are valuations of safe . I would say in general your liking credit more. Are looking at adding more higher quality, high yield credits. We think it is time to start dipping your toe in the water, not going out there and reaching for a yield, because there is a lot of uncertainty. But the real question in my mind is half we reached a period of economic stability . Data today in china suggests that one data point doesnt suggest a longterm trend but you will see a rally, because people have been thinking the China Economy is going one way. Jonathan will they . Have to leave it there, unfortunately. Thank you very much. Coming out, is jack back . The twitter founder is reportedly about to be named as chief executive all over again. Details after the short break. Jonathan good morning and welcome back. Twitter shares of spiked after jack dorsey being replaced as permitted ceo but can he have revived confidence in the social Media Network . Caroline hyde will try to answer that. Caroline justin 2008, we saw jack dorsey ousted as chief executive. Now seven years later, he gets his steve jobs moment. He gets to come back to the helm of the company he helped found. Recode put up a headline that he is about to be appointed permanent ceo. He has been interim ceo since june, the top internal cabinet and there was so much speculation, and pleasure to make a decision. They have been losing product heads. Have a look. The status of Key Executives needs to be determined for the decision is made. Dick costolo will he leave the board . Dorothy should continue as ceo of square . Ceo of two Big Companies . Will that remain . So far, optimism is there. But have a look at the share reaction. That drove 5 higher. We will see how he can beef up the amount of people that use twitter. Jonathan thank you very much. We will break down moves after the short break. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Jonathan good morning and welcome back to on the move. I and live in the city of london. Lets get straight to your top stories. Chinas official factory gauge stabilized around the threeyear low. The official index climbed to 39. 8 in september as u. S. Equities gain on the news. Confidence is falling in japan. The latest survey from the central bank shows that the index for large manufacturers fell to 12 in september from 15 in june. Adding to the bad news, concern is growing that the economy may have contracted in the quarter just ended, which will take the world thirdbiggest economy back into recession. Capital suffered a 3. 6 drop in its Main Hedge Fund last month. Year, and 17 this unless cream i can rebound in the fourth quarter, it will be his first yearly loss since 2008. 31 minutes into the trading session what happened to all that negativity in q3 . A second day of gains for the ftse 100, coming off the biggest day of gains in over a month. We add to that with 87 points. The dax is up as well by 1. 16 . 70 stock movers out there. Lets get to a few of them of caroline hyde. Caroline what is leading the charge . A volatile stock, but it is up the most in the month. Theil up almost 12 lenders are standing behind it, helping to drive it higher this morning. The debt Capacity Remains at 3. 7 billion. They have been speaking with their lenders and they say they demonstrate continued support and a period of low oil prices. They say assets are made of highquality. This is all down to a sixmonth redetermination, and it looks like the process has one out this time. Tullow. Stand behind company is of m a, a being hotly pursued by arrival. By a rival. 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