Widely forecast by 28 out of 29 analysts by bloomberg policy makers back in september scrapping plans for further rate cuts amid signs the nation was withstanding the slump in oil prices and inflation remaining above target. 2. 9 sweden earlier keeping rates unchanged leaving the door open for further stimulus in 2017. That is the big headline. Norway central bank maintaining the key rate. Lets look at whats happening across the assets. The stocks were earlier. It suffered earlier. Down. Worst stretch from september well over a month. Ahead of the allimportant g. D. P. Data in roughly 29 minutes time. It bottomed at 120, 123. Thast the lowest since may 1985. The tenyear yield is little change. Yesterday it rose to the highest since june 23. Up from 51 bases points on august 8. The lowest boosting expectations and moving to expectations of inflation. What a good time to look at the breakeven. The almost highest level in three years. Risen 2. 3 prereferendum. This is one of my favorite charts of the day. 4, 5, 6,. Basically what its showing you is developed Nation Exchange rates Holding Steady against the fed dollar index is the blue line. This is a very uncommon trading pattern showing the rally in the green back in the last couple of years. The merging markets currency index little changed over the laves months. The feds reserved the dollar versus several major curnsies. We love charts but theyre uncommon. Thats our favorite. Thank you so much. Volkswagen has said it expects 2016 profit to be at the upper end. The Company Forecast is offering return on still before special items to be at the high end in the range of 56 . Growth in china helped the auto maker weather the fallout from scandal. Ions holders of sam sung, the heir apparent of the Group Controlling family that came tazz Electronics Division reported a 70 slump in Third Quarter product after the demise of its note into disarray. Global banks will probably lose their current legal rights after brexit. In the most detailed outline yet of the governments thinking, mark garn yea told bloomberg theyre trying to create a new model for Single Market access. Donald trump used the official opening of his new hotel in washington, d. C. To insist he will win the election. In an interview with bloomberg the canned dated said he was winning or gaining ground in key battleground states. I think were winning iowa, ohio. I think were winning florida. I think were winning florida actually by much more than your poll says. You have us 2. 7. I think were going to do fantastically in North Carolina. I think were soon winning New Hampshire. New poll says youre closer. When i go there, people say look its jobs. Its fix our military. Its take care of our vets. Its dont let the world take advantage of us. I dont know if im a great messenger but the message is absolutely the right message. Youre going to get 270something electoral votes . I think were going to win. News 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Thanks. Deutsche bank shares are up following a surprise return to profit after weeks of bad news around negotiations over u. S. Department of justice settlement. Good morning. What drove the beat today . There seems to be a pickup like we saw the u. S. Competitors in debt training. We saw revenue rise, profit rather than a loss. Ore capital ratio improving. Again. Better than had been expected. But i think the cloud in the midst of this Silver Lining is the issues that litigation costs and restructuring costs was reduce. Thats what so many are saying has been helping these numbers today. They could run past this. We see once again litigation cost with the allimportant department of justice find yet to come. Interesting they set more money aside for that. But theres key take aways. Remember, 49 increase in revenue in the stumplet just 10 increase in deutsche. Still not performing as well as the competitors mark. The elephant in the room. What was the news on that front . Frustration. He said the chief executive, im not in control of the timetable. He says he wants these issues tied up by the end of the year. Notably they set aside more in terms of litigation costs. Many feeling if theres anything more than 6 billion euro fine coming from the United States, that would call capital strength into question. That potentially would be more Capital Raising to come. Not a question of if, its a question of when. Remember, that has not gone into effect yet. They havent yet settled with the department of justice. Some really interesting lines coming out of the ceo. Infuriating, he says it is, the leak and journalist reports as to the negotiations. Sorry, were just doing our job. But they are really talking about the timetable not being in their control. And the negative issues, the negative perception have hit volumes. In particular 5 billion euros can add up. The cause of the turbulence that surrounded Deutsche Bank. Only three analyst sace buy this stock at the moment out of 36. Thanks for joining us. More good news on the banking process. Bar clays reporting a 35 jump in profit. Chief executeive daley spoke impact pact of of brexit. Well do what we need to stay engaged. Were looking at those alternatives. Were in the very beginning of a long road to negotiate the impact between the United Kingdom and the European Union. Well look at whatever alternative wes need to pursue. Our intent and desire is to stay fully invested in london and the u. K. We are a british bank. Theres a lot of cap dal in u. K. Which is put to work in the European Union. We would hope, as the brexit negotiations go forth, that the politicians and the regulators keep up the free flow of capital and continue to allow participants in europe to have access to participants in the u. K. To have access in europe, to help europe grow. He helps oversee 344 billion pounds. Thanks for joining us. Has the negativity, the bearish sentiment towards the european Banking Industry hit its lows, do you think . Thats a difficult question to answer. Possibly but maybe not. I would say clearly Deutsche Bank and a number of the european banks need more capital and it really is a function and question how they get that capital and what they do with it in terms of repairing their Balance Sheets and putting their businesses back on an even keel. Its a fragile business and confidence business. Banks right now, especially Deutsche Bank, is a pretty wounded animal. We had the big plunge weve recouped losses thanks in part to the return to the share price. Were still down 16 for the year. The second worst performing industry group. Which led me to that question, have we seen the lows, the 2011 low ors could we go back to those sorts of lows we saw post brexit . The really challenging job comes in two ways. First many of the banks need more capital, secondly the Interest Rate environment is not one to cl deucive to them making the profits. Could we have seen the worst . Possibly. Does the future look rosy . I dont think so. The Interest Rate will be with us for a while. The negative rate has seen its day. Do you see the sense that Central Banks wont push negative rates any lower . I think theres a sense that the current cure for the worlds travails is doing as much damage as the illness. Certainly the low Interest Rate environment in terms of what it means in confidence, fention fund liblets, company profits, theres a lot of you could argue its now doing as much damage as good. For that reason theres a lot of vested interest in thinking about what fiscal measures might be introduced. The problem is the world is very much indebted. Maybe in japan we will see this. Japan is a little under itself and in many respects is pretty selfdetermining. But i think in many places the level of net debt to g. D. P. That we see is going to be a hindrance in terms of fiscal expansion. Stay with us. S, including our interview with the ifm. Brexit boom or bust. We break down those u. K. G. D. P. Figures. Plus Deutsche Bank, bar klays. Ell break down the figures. This is bloomberg. Mark, thank you. Deutsche bank has reported an unexpected Third Quarter profit on lower than estimated restructuring costs. 256 Million Euros compared to 394 million loss. The ceo has cut jobs suspended dividend and sold assets to shore up profitability and capital,. Bloomberg customers can cover all the Deutsche Bank news. Barclays has said profit rose 35 in the Third Quarter. Pretax profit climbed to 837 Million Pounds as revenue from fixed income trading surged to the highest in more than two years. That may help ceo convince investors keeping an Investment Bank. An unexpected loss amid lower Energy Prices. The first of the Major Oil Companies to report thirtquarter earnings said the adjusted loss which excludes financial and other items was 261 million. That missed estimates of a 136 million profit. Thanks. Christine said a move by the Federal Reserve is a positive for the Global Economy. And there was such a hike presumably very gradual, phased in and well communicated as chairman yellen has indicated, it would mean that the u. S. Economy is faring better. It would mean that employment is higher, inflation is picking up a little bit. And those are strong positives for the Global Economy. Reaching the limits of Central Bank Monetary policy effectiveness . It kind of feels like it. Absolutely. I think that the problem we ave is that in terms of g. D. P. Growth to pick up, if the central bank is signaling that things are looking quite gloomy, in terms of confidence and activity, i think a gentle rise in interest particularly in the u. S. Is going to be a helpful thing. Can the world withstand it . Weve known about it for quite some time. Unemployment is relatively low. Growth is modest. And inflation is modest. But the Financial System is in good shape. It has been well signaled. Yes, i think we can withstand a gentle and i emphasize the rise. Entle the talk has been put to bed youre crying out for fiscal measures though. Are governments listening . I think theyre calling out for fiscal measures. The problem is its getting a political consensus amongst 27 different nations. If you took germany out of the equation it would be a more straightforward set of decisions but there is significant opposition in germany to ending the austerity program. And absent that, theyve got to have an extensive set of interventions in the market to keep the system Going Forward. How long does it continue for . Is tapering even on the cards in the latter part of 2017 . Well, possibly. But i think ecb is going to be very involved in Financial Market force a very long time. The Financial System in europe is much more fragile than in north america. Unemployment is still relatively high in many parts of the europe. Growth is pretty flat. So i think the requirement for them to keep the system moving forward is much greater. The idea of the ecb targeting the yields curve, is that something that should be considered . I think that would be a positive development. The conflict that we have in terms of wanting the economy to grow but having an Interest Rate environment that is not conducive at all is something theyre very, very cognizant of. And a steep yield curve would be one of the ways to get around that. But its not easy to engineer but i think it would be a positive thing. Back to that in a bit. Up next investing in a world of low growth, low inflation, and low rates. Weve got mark burgess take. This is bloomberg. Low growth, low inflation, low rates. Mark is still here. Global head of equities at columbia. Thread the needle investment. Low growth, low rates, low inflation. What does that mean for investing . I think it means investors continuing to need to seek out a yield. I think Global Markets are going to continue to not do the job theyve done traditionally in providing a return. So it means a relatively conducive environment for credit and equities probably trade higher than you think they would. Wheres the surge for yield taking you to places that maybe five ten years ago you wouldnt have dreamed you would go . Interestingly, maybe right now in the short term one of the things that we think of quite attractive again is is is u. K. Commercial property. You saw a lot of suspension post brexit. But if tenyear yield and property yields you more. Even if theres Less International demand for u. K. Property thats still a relatively attractive rurp. How is it going to play out . For all Asset Classes here. Difficult to tell. Certainly the move in sterling has made the u. K. A relatively place to come on holiday and go shopping. Certainly some of the companies exposed to that have announced that theyve seen an uptick in tourism related trading recently. It really does depend on the nature of the relationship with europe that we have and that unattractive ly place but it is a possibility. For Financial Services and for Many International businesses that have headquartered in the u. K. Took sess the Single Market we could potentially become quite an unattractive place to do business. The plan a. Clearly theyve got a big incentive to negotiate hard for that not to be the outcome. And were an important export market for europe and consume a lot of goods and services manufactured in europe. So there is an incentive for both parties to negotiate the right outcome. But the difficulty the europeans have is clearly not encouraging other European Countries to do what weve done because the european system is relatively fragile. And were we to get a lead vote from a constituency of the e. U. That would be bad for them. U. K. G. D. P. Next. Lets take a look at sterling. E akate numbers. Await the numbers. Little change against the dollar. Off the 1985 lows of earlier this month which is just about 120. This is the biggest piece of Economic Data since brexit. Since the day after. A bit of a surprise to the upside. The economy grew by 0. 5 in the Third Quarter. That is a surprise. Less. Ectations were Third Quarter production fell 0. 4 . Little signs so says the office for National Statistics of a pronounced brexit effect. There you go. The economy continues to surprise, growing by 0. 5 driven by continued resilience in the services industry. Offsetting declines to construction and production. Lets talk more about this. Chief economist at the cbi here. Marge burgess of columbia thread the needle is still with us. It is higher than we were expecting but on one hand im not that surprised because when weve been talking to our members weve seen quite a lot of resilience in the economy. Certainly in terms of the british consumer. Theyre carrying on regardless. Weve seen strong retail sales. Also in consumer services. So i think that does underpin the services. Even in manufacturing our surveys have been suggesting stronger growth related to how the pound is helping exposhts than the official data suggests. But i think its too early to read in what is the impact of brexit. Its far too early to make any sort of judgments. Too early to make an assessment . Its stronger and the 15th straight quarter of growth. Weve got the best of both worlds. Thats not going to pertain in the medium term because were going to leave the e. U. Right now Interest Rates are low. Weve seen cuts. Consumers are in good shape. Anything made in the u. K. Has become more competitive. Weve become a cheaper place to come shopping. But we still have all the benefits of being part of the Single Market. Thats not going to last. 0. 7 was the previous quarter. The economy is slowing. Where do we go from here . I know your official forecasts are coming out soon. Give us a sense of where the economy is heading in coming quarters. I think this picture of resilience will continue. But what were concerned about is growth next year and particularly in the second half of next year. And its investment where we have real concerns. Businesses are still operating in a fog of uncertainty. So while theyre meeting current high demand and capacity theyre not really investing for the future as they would do normally. And i think in particular thats where theres a real role for the chancellor when he stands up at the Opening Statement to do measures to kickstart investment, to look at raising the allowance for a couple of years. And more generally investing across our infrastructure to drive growth across the regions. And you would like him to move forward with 425 billion pounds of proposed infrastructure projects. Its a massive statement. Isnt it . So yes. Its a big moment for the chancellor. It really will be him setting out his economic vision. And we would like to see an extra 6 billion pounds of investment particu