Con. Who is find those devices in new york. Tom the mayor of london had trouble getting around new york as the mayor was multiple was occupied with multiple blasts good new york begins its biggest week of the year with police in full investigation mode. The global message is this is all about all of manhattan, and then over west into new jersey. It will be interesting to see where the police stand in their investigation as we move through monday. Francine this is because the yuan general a simile starts today. You have all of the World Leaders the sending on new york. Taylor another xmas of device went off overnight in the new york another explosive device went off overnight in new york. Injured. S this is all happening the day after a bomb exploded in your city could more than two dozen people were injured. A second device was found nearby according to the associated press. Five people are being questioned. All of this happening as the United NationsGeneral Assembly opens today. The ceasefire and syria is going shaky because tests in syria is growing shaky because of a number of attacks in syria is a growing shaky because of a number of attacks. The u. S. Says it regrets the attack. There has been another setback for Angela Merkels regional elections. The social democrats lost support and elections. Their combined vote share fell about a quarter. The antiemigration alternative for germany siphoned off the vote. The mayor of london says the British Government is trying to boost confidence in the wake of vote. Exit my advice is a sense of calm. Lets make sure the teams are ready to understand in relation to the best deal from the eu. Lets make sure we negotiate the best deal. Be more than will two years to get the right deal. Lets reassure. Therell be more interview with him coming up. Global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. I am taylor raikes, this is bloomberg. I dont know any equivalent in the United States to mayor con. It was remarkable, not only the discussion on him selling london but his comments on mr. Trump and having mr. Trump over to his house. I thought it was amazing. Francine i think it was great you talk about trump. He is a child of diversity. He seems like someone who is trying to do his best. When you look at his background, it is refreshing, especially at a time where brexit happened, i would argue that this is the person that london needs to lead it, because he shows london is open to endeavors. Tom he throughout the first ball to the mets twins game. Done that ball he she did better than i wouldve done. Lets do a full battle on the data check to set up monday. Equity bonds currencies commodities and nice pop to the market with the euro weaker dollar stronger. It catches a bid after a lovely three days. After an ugly three days. Sterling with a modest 129 handle early this morning. Francine . Francine top, this is my data ,oard, european stocks gained argues that it is all about the boj. Forget the fed and less they hike. Crude oil, will get down to that a little bit later on. This is hibor a little bit like libor what it is in hong kong. The mostn hong kong since january. There is speculation that Chinas Central Bank was fighting to tom lets set up wednesday with the fed and the big of japan and they are linked to the wish of the strut a million times. Can we go with each fed meeting here we go with each fed meeting. We see where we are on the two year yield. The major messages in the center of the screen in that rollover of the circles over the recent 1, 2, 3, 4, fed meetings and some of that is due to the economic malaise. Tom, i also had something that i had to work on. If you look at the terminal, it was the correlation between vicks and yen. You can see that correlation is not as correlated as used to. That chart very shortly. Joining us now for the hour, chiefbevan, he is economist at hsbc. Thank you so much for joining us. James, if you look at the boj and the fed, it is an awkward timing. The boj on the morning of wednesday and the fed later on. Boj becauseould be if you look at traders, they dont know to think. James the boj looks limited room for maneuver. He would have to come up with a new storyboard for next march because the amounts of government bonds that he is going to want to purchase is running dry. Yet we dont see i am quite bearish. Paul we dont think we are going to see a lot from the bank of japan did there is a lot of expectation around the idea that they might deliver various things to it will be similar to more of the same, that we think more asset purchase expanding the range of which they are preparing to buy. Also potentially we think there could be another cut on rates. They could not a little bit off. We dont think there will be a big move. We dont think there is a bazooka coming. That is what the market is looking for. Francine what if they come back and say you know what we have done so far . The negative rates are just not working. Step . Market a worse paul are they going to review and come to the conclusion that what they delivered has not worked . Are they going to reassure us that what they have been delivering has gradually been working . They need to do a little bit more the same but it is going to deliver the inflation they are expecting. That is in more likely pat. More likely pat. Tom james, i want to talk about sterling with the 129 print for a cup of coffee pit we ended , is thisth saudi oil linked to the two centralbank meetings on wednesday . Is there another story . James i think there is a story about relative weakness of sterling, therefore i would expect sterling dollars to get around to around 120 to 125. Continued sterling weakness. Very interesting negative correlation between shifts in the oil price and dollar. I expect their relationship to remain strong. I am expecting in global terms, sideways movement in the oil price and dollar. Tom lets bring up the sterling chart. This is where james bevan is mentioning the yellow circle. That is the migration into the vicinity of 120 out of the middle of next year. Hsbc with that i lie or call that outlier call 110. What it comes up to is a shock. New york has had a shock with these awnings you wonder with these of bombings. James, what do you think . James i am worried about Global Markets at the moment. I fear significant gaps between expectations and reality in terms of the numbers that are coming through. Negative surprises have delivered four unpleasant markdowns in the last five years. We are going to have another one at around 10 . Tom what is the shock out of asia . Paul we are not forecasting in a shock out of asia in the scheme of things did we think the asia story is Holding Together well. We still have birth in China Holding up pretty well. The bank of japan is in focus this week. I dont think it is going to be a big deal at i dont think they are going to deliver a big change. Francine let me bring you over to the number of terminal. This is symptomatic of what we are seeing at the boj. The blue line is the volatility index. The white line yendollar rate. You can see the currency trading with the volatility index and you can see the correlation. Ises, are you concerned this a symptom of what we are seeing in europe . Means that people worry about what Central Banks can do especially when it comes to negative territory. James we are increases in savings, both over here but also in japan. We will see more of that and the yen strength is precisely what japan does not want to achieve as a result of this policy. If you said to me what would be better for the Global Economy, i am not sure i would share the point of view. I think it would be smart for the japan to try negative rates. We have been at this for a long time, it is not working and we need to step back from quantitative easing. They will not do that does theyll be too big of a wrench. I am thrilled to tebow the of you here to get started on this monday. We will continue in our next hour on american capitalism, on the elections from chicago, Luigi Zingales, throw to have a men. Ints thrilled to have him thrilled to have him in. If you have to drive two blocks in midtown at 11 00 a. M. This morning, get out and walk. From new york, this is bloomberg. Francine this is bloomberg surveillance. Tom keene is a new york. Lets get to the Bloomberg Business flash. Taylor cone in china warning indicator for stress has risen to a record according to the bank for international settlement, chinas credit and gdp groep gdp gap is at 30 . In bigger ratio can signal that credit growth is excessive and a bust may be looming good japanese and back supplier is moving ahead with an auction of the company. It is behind the auto industrys biggest recall ever according to people familiar with the matter. Possible buyers include kyle ill group included carlyle group. Bidders have been asked to submit proposals by early next week. Samsungs exploding smartphone battery crisis again with a rush to beat the iphone according people familiar with the matter. Samsung sped up the launch of the galaxy note seven after hearing that the next iphone would not have any major inventions. Just days after the samsung device made its debut, there were reports that the batteries were bursting into flames. Samsung plans to recall all 2. 5 million note sevens. That is your Bloomberg Business flash. Francine the overnight search the most since january and chinas credit binge could lead to a financial bust. For more we are joined by enda curran. Great to have you on the program. What did we learn today . Intervention from the chinese . Enda good morning. We cant say for sure that it is but it bears all the hallmarks of a slap on the risk from beijing on those traders risks. Beijing was going to let the currency we can once they got through the g20. The narrative has been once china got over g20, they would let the currency start to weaken. Of course, the suspicions that the bank is going to make it much more expensive to borrow in hong kong did they did it back in january. In hong kong. They did it back in january. Imf ina goes into the maybe that could be a hurdle for china allowing currency to weaken. It is still want to watch as we go forward. Francine how much of this is to discourage short positions on the currency . And how much of this is related to the fed on wednesday macro enda on the on to the fed on wednesday . Andreas it was quite effective in curbing and you want in hong kong. It scared a lot of position out of the market. Every reason is suggested, a lot of people lost money betting on bearish positions on you one. China has been lucky with the feds dovish turn. If the fed was going to come up with hawkish terms, that would put downward pressure on the n and aside on chinas and Chinas Central Bank. Tom a momentous monday before centralbank meetings. The statistic of 6. 71 of gdp growth. Beijings got the best growth known to mankind. What is the quality of their 6. 7 Economic Growth . That is the big debate that china has traded Economic Growth for rising inequality. The other point is it gdp is based on cheap credit. The chinese storing up bigger problems later down the line. What we do know is the narrative in china is the monetary stabilizing had very rocky beginnings at the start of the year. There is a feeling that china cannot continue to pursue the cheap credit and kicking the can around the road testing the can down the road kicking the can down the road. Tom we still have james bevan with us. Paul, your shop has been wonderful on low interest rates. 110 sterling as well to give us how you fold the hsbc caution on Global Growth into what we see in asia which is the locomotive of Economic Growth . Paul chinas growth is slowing down and we are doing with that. It was inevitable that it would slow to a degree. The point is the one that in the made that the timely indicators are looking we have seen better numbers on the investment side. That transition that china is trying to make from a more construction lead story to a more services led economy, there is evidence that is underway. One of the things we have been pointing out recently is you are seeing signs of reform, particularly in the commodities space. A pullback in chinese production of high cost iron ore. Thoseand of course provisions they put in place. These are reform measures. It is happening to a degree. Tom what is your industrial commodity called . If you look at a chart of commodity inflation, it seems like we are starting again the longterm structural deflation and commodities. Where are you on that and commodities, where are you on that call . Paul we build very low levels of Commodity Prices and we think they got to such low levels that you are starting to see a bit of a pullback. U. S. Shale production in the oil market and that has lifted the oil price to a degree. You have seen signs of that in the middle space. In the middle space in china itself which is where the reform is. That is evidence that reform is going on. Commodity prices are passed the trough. Francine paul and james, thank you so much. This is a picture for european and asian stocks. Overall they are on the rise. The equity Index Futures rebounding. Oil a little bit off. Dollar tree treating and you this ish more guvi bloomberg. Francine this is bloomberg surveillance. I am Francine Lacqua in london and tom keene in new york. Tom Michael Mckee turning over to a no denver broncos. Also watching the president ial race. There is a real new wants. Michael donald trump had by what conventional measures would call a bad weekend. His economic plan widely panned. Joe stiglitz giving him an f on economics. No surprise there. It is an adult. Thats it doesnt add up. It doesnt add up. His trade plan would cost 4 million jobs. Friday he had a News Conference which he used for an advertisement for his washington hotel. And then the whole thing when he reversed himself saying he lied about obama and the birth of thing. Then friday he went out and said this arm Hillary Clintons secret service. Tom is he running this campaign . Or is he running to these two key officials . It there is no question he is running his campaign but they seem to be setting off his rough edges. A week from the today only from today, the debate is going to set the stage. Tom Michael Mckee with a quick update on the campaign. It is historic. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Monday morning, thrilled you are with us. Economics, finance investment. We will have an interview coming up. Francine speaking with the mayor of london about the future of london. Here is first word news. Between a connection bomb in new york city and another bomb discovered overnight in new jersey. No one was hurt. This all comes a day after a bomb blew up in a chelsea neighborhood. Another explosive device was found nearby, five people are being questioned. Fbi is now investigating a. Tabbing attack in him all Islamic State has claimed responsibility. A newspaper report described the attacker as a somali who lived in the u. S. For 15 years. Senators john mccain and jack reed want to limit the number of overseas. Ship bishops have been criticized for reliability falls. In russia, Vladimir Putin is in the kids victory election. Theas the first full since 2011 election led to huge and type putin antiputin protests. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am taylor breaks. This is bloomberg. Francine thank you so much. More on the markets, more on Central Banks, more on what is happening on wednesday, probably the most important day of the calendar in a while. Lets welcome back james. If youre positioned in the market for nothing much from doj and from the fed, there is still a big risk that you can be taken by surprise. I think there is more Downside Risk than upside. I think there is putting of room for disappointment. What is the one thing you think markets are too complacent about . I worry the markets are taking growth for granted and suddenly states are being supported and we will have sudden t translation of growth. The suggestion there has been an overstatement of the expectation. I worry there will be a markdown of expectation. Tom the world is terrible. You have been brilliant on have encourage to stay in the markets. Ftse, it is the extraordinary, the gloom in the chart. Can we actually breakout from those recent highs over 15 years on the ftse . We can, and we blow. I worry we have to have a correction first. I worry we have to have a correction first because too much is baked into the cake. I am however confident that, in due course, we will break out. Maybe we will have a correction of a continued full market. Tom it comes from corrections which is it . I should say that we should expect earnings to remain in line with revenues. Certainly there is a political risk. Labor is awarded a slightly larger slice of the cake. Toget reductions similar revenues. Look toould really partial september and the idea. F units in Pricing Power i think it is fascinating to see what the unit dynamic is an all this disinflation out there in pricing. Likeine i wonder is, just Central Banks, everything mirrors itself. When you look at how companies are structured, is it very different because we had a different currency but also we have been through so much more pain in europe . When you say we have been through more pain, we have had