Putting it on track for the biggest monthly advance since february. It hit a two month high yesterday. We saw the euro dropped to a two month low. It started dropping as drug be ghi wasaking as dra speaking. You considered, you can see it, it is flat today. Investors pick up on the trade being unwound. One of the reasons we werent seeing euro strength in the past few weeks. The euro. A drop in conversely, we have seen a pushup in many emergent market currencies. On sentiments there that we can get more stimulus from the ecb. If we look at options, the premiums increased after draghi spoke. Jonathan some move in the bond market yesterday. Versusead, italy germany. It dropped below 100 basis points in the News Conference yesterday. The interesting part for me is not just an germany with the yield there at an interesting low. The italian two year yield is negative for the first time ever. Take lives in the bond market and the fx market. Lets find out what is happening in asia. Good morning to you. We had a positive today across the asian pacific. A nice rally underway. Check out what you can the on the map of the region. It is green across the screen. A 1. 3 gain here. The hang seng is up by a similar amount in australia. 2 nikkei is rising by there. We saw consumer related goods and electronics moving. Big industriale stocks. They did very well today. They are in japan with a 5 gain. With those tech earnings in the united states, we saw technology as a key theme around the region. Telecommunications docs did well and electronic shares also advanced. Up 3 in hong kong. The latest data that came out today from china confirms that the government stimulus there, the Interest Rate cuts, are feeding into the market. Inside china, and the inner parts of china, the expensive land the country occupies, they are seeing prices advancing. 39 out of 70 cities in septembers up prices go up, as compared to 35 in august. That tells us housing recovery appears to be underway. I want to bring your attention to the airlines. We saw some speculation that the chinese major airlines, air china, china eastern, and China Southern may consolidate. This is as china moves to consolidate stateowned businesses. They were down today in hong kong. There is speculation these three carriers will come together and make a make a carrier to rival the worlds biggest American Airlines. They have more than 1000 jets and a lot of cargo and passenger market in china. Zeb. Han great work, enjoy your weekend in asia. Fromve data coming in prawns. Manufacturing pmi. A 52 pointtter in three. The survey, 51. 7. These are preliminary readings. An improvement on the previous month as well. Germany is up in about 30 minutes time. We will bring you that data, live. Here is what is going to happen in the program today. The currency falls against the dollar. The most since the qb has been announced. And then, the tech sector. And steel gets touch. We speak to the ceo as prices meet their new level. The European Central bank left Monetary Policy unchanged. As anyone looking for a hint to whether more stimulus was in the pipeline, draghi did not disappoint. Domestic demand remains resilient. Concerns over Growth Prospects emerging markets and possible repercussions and possible repercussions in the economy from developments in financial and Commodity Markets continue to signal Downside Risks to the outlook for growth and inflation. Monetary policy accommodation will need to be reexamined at our december Monetary Policy meeting, when the new euro system projections will be available. The governing council is willing and able to act by using all of the instruments available within its mandate, further lowering was indeed discussed. It is one of the instruments of Monetary Policy that i refer to what i said, all instruments have been discussed. There were a few members of the governing council which hinted at the possibility of acting today. It was not a prevalent theme of our discussion today. Jonathan the big question from the meeting is, is december a done deal . Lets bring in the Senior Investment strategist. Great to have you with us this morning. I look at thee newsc conference and theb i look at the News Conference and the ecb takeaway. Is december a done deal now for you . Guest it does look like that will be the day. There is one thing quite good about that. What has been lacking a lot with Monetary Policy in the u. S. Is uncertainty. And we a day to focus on need to get a day to focus on. Expect haitians are even higher. I wonder what comes in december, as far as you are concerned and what would be considered a disappointment . Dan they can lower the deposit rate further, extend the amount of time that they will pursue qe, and move into other asset classes. All three oft want them because that will bring in the sense that, if they do that, there is nothing left. I think one or two of those is what we will see in december. Not all three. Jonathan i think of anything came out of yesterday, it is the ecb reemphasizing the fx channel. Is that what you took away from yesterday . The fx channel is becoming even more important for the ecb . Dan that is definitely something they are focusing on. To help in weak euro terms of eurozone growth. Is oneey because that of the few areas that can happen affect on the underlying economy. Thean argue about how much lowering of Interest Rates is doing. A clearly helps in exporting economies. Jonathan the investors watching this program, the biggest meeting since 2013. Forget the qb meeting. It was big for equities. Many are asking, are we in 2015 . R q1 for to be, like weg had in the first part of the year. It will happen more quickly this time and there is the risk it will be euphoria. Eventually, we start to sit back and ask what is happening with the underlying economy . Are we worried about china again and will we get a bit back . Jonathan as they get tighter and narrower, the front end of yield a two year negative on the italians. What does that tell you . Dan we will be in this environment for quite a while. The bitter irony, is it is pushing people further and further out. Togo into treasuries to go highyield. That is good for a while. When we start worrying about growth, people see they have too much risk exposure and it all on winds. It all unwinds. Jonathan do you want to play the momentum trade right now . Dan you have to be smart about playing when it is going to end. Where are the parts of the market that you find value . What is important is at an aggregate level, you have more dispersion in terms of the returns across countries and across different asset classes. You have to ignore which ones are going to work out. Jonathan i go straight to the euroyen pair. A much weaker euro against the yen. What does this mean for the governor . What we want to see for japan is weaker yen versus the dollar. That is what is driving the rally there. Jonathan great to have you with us this morning. Up next, we take it to tech. In 90 billion silver lining. Microsoft, and google surge. Ceo isn twitters giving a third of his stock to the employees. He officially took charge of the social networking site. He is sharing to 1 trillion of the company. Crisis compared withe, 35 cities in august, in 39. Levels the lowest growth since 2009. The Banking Group will take charge. The u. K. Government prepares to sell shares to individuals. The lender is scheduled to report earnings next wednesday. 15 minutes into the session. A quick check in the equities market. Uge, the biggest equity market move post a Ecb Press Conference since 2013. The rally continues this morning. Is this speculation . It looks like a done deal. Denominated markets. Percentageup one point. Big moves in tech as well. Everyone is looking at the tech sector with google, amazon, microsoft all facing estimates. We have more on the good news. Reporter a big beat for big tech. Let me start with amazon. What we saw here with thirdquarter sales beat estimates. A surprise profit for this company was driven by fastgrowing cloud computing. He also had a boost from their prime day emotion. They kept a watchful eye on spending. The shares rallied in afterhours trading, making him the third richest man in america. Moving onto google, or should i say alphabet. The is the last time company will report as it did yesterday. As of next quarter, it will be a holding company, alphabet. The earnings will be broken up between the main google business, and the businesses within the Alphabet Holding group. Profits beat estimates. Up 23 . Hat total clicks was up andtraffic they were able to keep costs under control. Those techewarded companies. For the first time ever, google also announced a 5. 1 billion share buyback. Precise number is the square root of 26. Why . There are 26 letters in the alphabet. Finally, moving on to microsoft. The fiscal firstquarter profit beat the estimate. Largely to alod growth in cloud services. Julyob cuts announced in also took part of this. 7800 cuts took part in july. Jonathan we will be talking to the former ceo of microsoft. That is at 1 00 p. M. U. K. Time. Do not miss that. Dan morris is still with me. The cloud business, microsoft, amazon. What is driving the performance in cloud . Where is it coming specifically . In mind,ave to keep margins are high and they are looking for every opportunity they can. They probably do not have a lot of opportunity in terms of labor and payroll. Anything they can find to help increase margins and cut costs will be an appeal. Something like Tech Software is a big appeal. That is what you can see the boost in cloud. Jonathan it is phenomenal and expended training. Amazon, microsoft, alphabetgoogle, they are all up. Those three stocks have really searched and added a significant amount to the s p 500. I asked about it before the break and the other segment. The want to play the momentum in trade, or do you want to differentiate a little more as far as tech is concerned . Dan text covers a whole range of industries. We lump it altogether but you have on one extreme, social media, cloud services, and hardware techs like ibm. About, we need to think what are the exposures to china . If you look at the u. S. , at tech sectors has the highest revenue exposure to china. For those companies that are looking for that as a source for revenue gains, they will be more exposed. Others will focus more domestically on the u. S. Jonathan the other question i will ask, and they always ask this, when you look at the s p 500, the two best performers were netflix and amazon. It has long been a certain habit of the consumer. Dan i think what we are all trying to do is understand how the consumer mentality has changed after the financial crisis. Everybody is waiting for a big boost in spending because of the fall in petrol rices. Maybe we see some of that here. We also have to take the savings rate into account. People are scared and will increase their savings rate. Money theyextreme oa have in their pockets. It is being saved instead of being spent. That will change slowly. Then, you have what the consumer is doing. The question i would ask you is, if a wanted to play one, rather than the other, what is your preference . Be the business focus will on cutting costs. That is a huge opportunity to increase productivity. Jonathan dan morris will stay with us. Up next, we will bring you the stocks to watch this morning. It has been a busy day for earnings and the market as well. Another big move this morning with the dax up by 162. We will be back. Jonathan good morning. We are 24 minutes into the market session. Lets bring you the scores. Another 155p points. Is moves in a bond market phenomenal. Lets check out fx and the bond market. Since january. E lets look at the bond market. Lets go to the periphery. 06 . Talian yield is that is not a misprint. Big moves. Reporter it has been a big day for earnings. I am talking about the worlds secondbiggest truck maker. Thirdquarter operating profits were boosted. Orders actually dropped 15 . Earnings rose 75 . We know it is restructuring to become more profitable. Ericsson went down 4. 87 . Maerskally, ap muller said its profit outlook would be weaker. It cut the profit outlook and cited a weaker global container shipping market. This is the worst performer on the stock 600. It is not just the concern for the company. The question is, what does this tell us about Global Growth . Jonathan that it is not that good. Thank you for breaking that down for us. Here is your day ahead. Germany is coming up in a few minutes. At 9 00, we will get numbers for the entire eurozone. Before the u. S. Session starts, we will get earnings from American Airlines and proctor and gamble. Numbers atatest pmi 2 45 u. K. Time. This short after break with the german pmi. Jonathan 30 minutes into your trading day. With thestraight to it german manufacturing pmi. It comes in at 51. 6. The direction of travel is also a concern. It is below the previous month. Came in at a solid 55. 2. That is better than the survey of 53. 9. The composite comes in at 54. 5. It is bigger than the previous number of 54. 1. It is mixed you look at manufacturing, but when you look at composite, because of the it iserformance positive. Lets go to hans nichols. What is the story . Hans the composite number holds. Last month it was down. It is a good number and still below the august number of 55. Anything north of 50 signals expansion and less signals contraction. Ons is a pretty good number the composite side. Services are really surprised me upside. I would be more concerned about the manufacturing number coming in less than expected. What everyone is concerned about scandalny is how the vw will affect the broader economy. Our we starting to see the beginnings of a slowdown . Two weeks ago we had factory orders that disappointed. We had Industrial Production that disappointed. On the german side, services are blooming, but there is a slowdown in manufacturing and that could be a potential concern. Jonathan you and i have gone back and forth about this. A chineseis there story buried in this as well. Hans potentially. The one thing about emiis they pmis is they are immediate. We will get the flash rooting for october in a couple days. We had numbers other friends this morning. They all were on the upside. In the past, we have seen french numbers go down while germany has gone up. Germany is moving up on the composite. On the composite in france, they are surprising us as well. We a couple numbers in the 52 range. The story with france really is yes, negative or flat growth in the last quarter when we had gdp figures is this is the eighth consecutive month we have seen expansion in france. Heres a copy up for you. The are barely expanding. They are in the 51, 52 range. The are manufacturing at 51. 7. France is a along just north of 50. Theyre not into the high 54 number we are getting from germany. In some ways, the divergent story still holds. In some ways, there is a little bit of convergence because france is doing better than expected. Jonathan great work and more from the later on in the program. Lets turn to the data coming out from china. You can see the chinese story in germany. Prices were rising last month. We also got numbers from the sector that has been impacted by chinese growth. For more on both of those stories lets bring in the bloomberg team. Andrew roberts joins us now. Lets talk about the housing property data. Does this change the outlook as far as you are concerned . The issue here is that we have had some much bad data in previous months. They push to the upside on housing data is good news. You have to remember that property and housing real estate comprise about 15 of the chinese economy. It is a real bellwether for over a economic health. There are still some warning signs. There is a huge overhang in availability. There are tons of apartments and homes on the market that have not been sold. That is a problem. But certainly, it does suggest that the government has been doing, those stimulus efforts, have been working. The question is whether they will take their foot off the accelerator, or keep going . Jonathan you have a question, nick . There are marginal tweaks around the housing and property sector, regulations to help support the market. Do you anticipate the government is about to announce further stimulus measures . And if so, will they be these marginal tweaks . The general expectation we are hearing is that they will bring out the big guns and it will be fairly soon. There is so much money locked up in the economy. The reservek at ratio requirements and the amount of money banks are required to hold and reserve, Interest Rates are up more than 4 . You compare that to the u. S. There is a lot they can be doing. Signs hearing disturbing of the government is growing more concerned. It may not hit the 7 target for the end of the year. A bloomberg internal gp tracker put the number at six. 6 . Another thing to keep in mind is that they have in the past, acted every couple months. We are now on the outside of that range. There is now high and anticipation that we will see a cut to the ratio in the coming days. Jonathan thank you very much for joining us. I would like to bring an enter roberts now. Andrew roberts now. What did we learn on that front . Andrew china is still a problem for the luxury goods making industry. Also pointed to weakness in north america. What is interesting from the numbers here is we are seeing some of the selfhelp edgers take place in puma. They have been struggling to turn that around for a decade. Also with gucci. The numbers with gucci were down for this quarter. The new collections that are hitting stores as we speak from the new designer seem to be getting a good response from consumers. Handbag sales are up into the double digits. With whatbig contrast has been going on with the brand in recent quarters. Market is optimistic that there will be signs of life emerging. Quickly, we have seen this regional split. All categories are doing ok. What are they doing that others cannot . Andrew fendi is a little bit like the other luxury goods maker. They actually have the best 27 organict growth. Fendi is growing in all regions and what these plants have been common is, essentially, the scale. They are both billions of euro brands. For areas like hong kong, which have been hit hard by a shift of the spending by chinese consumers to other areas in asia, notably japan, they are issues on the mainland as well. There