And pimco says the worst of the price collapse could be over. Merkels moment to is the german chancellor about to win a Nobel Peace Prize . A warm welcome to the pulse, live from london. Im manus cranny. First up, minutes from the latest fed meeting show that the policymakers delayed the worsfit hike last month because of concerns about china. There was plenty of reaction from financial leaders of the imf and world bank. We will hear those voices in just a moment. But first, oil is about 50 a barrel, headed for its biggest weekly gain since august, coming as pimco calls the worst of the collapse and Commodity Prices is over. Bring in mark barton for some context. Mark have i got some stats for world the all country indexes rising for an eighth consecutive day, the longest winning stretch since february minutes from the september meeting are pushing out expectations for when the u. S. Central bank will hike interest rates. The msci in that eightday period has risen 5 , the biggest gain since december, 2018. December, 2014. Trillions has been added to Global Equities and we are coming off the worst quarter in four years, and have a look at the msci asiapacific index over 2015, asian stocks are heading for the biggest weekly ase in almost four years investors push back expectations for when the fed will raise rates. This is the msci asiapacific index, jumping 6 , the highest level since the end of august coming after the gains assigned 15 in the Third Quarter. The bestperforming equity index in asia this week wait for it indonesia, which soared by. 0 lets talk about emergingmarket currencies a Bloomberg Index tracking 20 emergingmarket currencies is on track for its best week in more than six years yes, you heard it. Been quite some turnaround for emergingmarket currencies after the Third Quarter when this gauge registered its biggest quarterly loss since 2011, and the biggest laggards are the biggest gainers this week. The indonesian rupiah, the russian ruble, the Malaysian Ringgit are the big gainers 9 , 8 , and 7 respectively. Are they going to be fleeting . According to forecasts, all 23 emergingmarket currencies are projected to weaken against the dollar by the First Quarter because of the worsening Global Economic output. Manus that is a feast of stats for our viewers. I want to bring you breaking news abm, the tussle continues. The author is on the table. The offer is on the table. The stocks are unchanged. Miller raised the annual cost savings target to at least 1. 05 billion by 2020. They are putting out this message that they are really going to push in terms of cost savings. They say more than 430 million of annualized savings through to march 31. Equities in areas like procurement are under one roof. Go to my twitter account, because you will see a bloomberg article there that talks about the cultural differences between bev and theab in hotels that sab likes. We have heard from the fomc and they have delayed raising rates last month because of concerns about china, and that decision was a big talking point at the imf and World Bank Annual meeting. That is where Francine Lacqua is when the fed should press the go button. Says wean authority will be data dependent, there are two drivers unemployment and inflation. What we are saying is Inflation Numbers have to be solid. We have to see them, and for the moment there is not much on that horizon, neither on inflation nor on wages. Favor asery much in soon as it is possible, to normalize what we do in Monetary Policy the same goes for europe. Place, the different u. S. Is ahead of us and economic recovery, but lets not postpone it. The fact is that americas recovery is anemic. If you look beyond the five point whatever percent Unemployment Rate, the true Unemployment Rate, people working parttime, is well over 11 , 12 . We think they will go at some point this year. The markets dont see it like that, and i am not in the business of guessing with the next fed move is what is much more important is the medium to longterm guidance it will get to the market wil. Manus lets bring in james burboun. My question is you read the minutes and saw the market reaction. Was this a prudent fed, a smart fed, that avoided a policy misstep, or did they miss the window . James i think they missed the window and while back. View thatly share the there is a problem brewing in the local economies. Subtext is that the governments need to spend more money. You wees, when prepared a great graphic that we when volatility had been on that river this is volatility, and what you do is we track the amount of time 4 debts ral forge ines i worry they may hike december and then begin a new barrage of qe. I suspect that they now feel like they have to act because they have made so many statements about their appetite policy rates. We have two more fed briefings do today and i realistically expect that we will be tightening soon. Manus it will be interesting to see if they go down that road the other big call this morning oil,mco was talking about oil stabilizing, above 50. You say this is also a critical part of the equation in how you look at stocks. Talk me through the correlation and how that works out. Price is me, the Oil Essentially a productive oversupply. So much depends on the Global Economy that is very low oil price is corrosive rather than supportive for big chunks of the economy. There has long been an expectation that the low oil toce has it worst round hit producers and only a very slow longterm benefit to the consumer. New the storyboard york taxi drivers pocket 2000 extra this year because of the oil price has fallen away. A harsh reality is that oil is now such an important part of Global Market and global economies that we will see a stronger oil price being driven by the controlled decline and rising level of demand to prevent a Solid Foundation for solid economic growth. Manus is that sustainable . We are up above this 50 a this is something we were talking to Peter Oppenheimer about. You have the retrenching, the qataris looking at asset sales does that worry you . James absolutely. When one thinks about why was it that the arab spring failed to engulf saudi and the other oil nations it was i suspect because the very significant Social Security program. People felt comfortable. The reality is that retrenchment was in the economy on the back of an oil price. Manus and glencore what a splendid chart. James isnt it fabulous . Manus they are renting the heart out of the zinc market as well, up 80 from its low point. What you make of that . It is also highly correlated to Commodity Prices. James we are playing rio tinto and bhp we believe that they are capable of making serious money to the commodities tackle, through a combination of strong free cash yields and sensible control. I want to be clear as to when Commodity Prices and on a permanent operative ejector he we know that the cycle typically runs through a period of Creative Destruction in order form a clear a base. I think it is too early to call the bottom for glencore. Manus ooh, challenging. We have a lot more to get through. Lets get you up to speed with the rest of the radar this morning. For gross is suing pimco 200 billion over a shock departure from the giants last year. He accuses executives of the company he cofounded of pushing him out in order to get their hands on his bonus. He says he wants to expose what he calls unethical behavior. Says like his u. S. Chief the admissions scandal may take years of testifying before congress. Companyhorns has the did not make a corporate decision to cheat the system, but it was done by a few engineers in germany. On behalf of our company, my colleagues in germany, and to me personally, i would like to offer the sincere apology, sincere apology, for our use of Software Programs that served to defeat the regular emissions testing regime. Prices have jumped at glencore as they cut production by one third. The company has already cut copper in coal, and are navigating a rise in Commodity Prices. Russia has denied claims that missiles fired in syria landing in around. They launched rockets at 11 targets. It would have taken them over northern iraq. U. S. Officials say at least four went off course. Offlix has raised its price the most popular streaming package. New customers will pay a next her dollar a month for the plan, which lets to viewers use a subscription at once. Existing customers will be given a grace period before the hike. Netflix shares closed 6 higher in new york. Coming up next, a bumpy ride for appearse u. S. Chief before congress with one politician saying admissions scandals are on the same scale as enron. We will hear more from his testimony, coming up next. Manus welcome back to the pulse. Volkswagen. The u. S. Chief says all the vehicles involved in the omissions scandals may take years. Michael horton said the company did not make a corporate decision to cheat the system, insisting it was done by just a few engineers in germany. Hans nichols is in berlin with more on this story. What else did he have to say . This was a pretty big Public Statement this was about quit about grasping the u. S. Metal. We heard quite a bit of contrition and some anger. This is the head of volkswagens u. S. Unit, seeing very disappointed and willing to match the lawmakers anger when it comes to the malfeasance of his own company. He did say that there wasnt an easy technical fix, and in some ways he says he would have taken it if it had been there. You have mentioned that roughly 500,000 cars are affected. Out of those, around about 430,000 cars are gen 1 vehicles, which were early starting in 2009. For those cars, we believe that the software only solution will not be possible, because to be quite frank, if it would have been possible they would have done in the first place. Enginethat 2. 0 liter is going to require a Software Upgrade but that is not the case in the states. A lot of them are smaller engines and they will have to add hardware. It will take a long time they dont even have a timeline, but they are still working on feasibly how they do this. As he was testifying, manus, there were raids in wolfsburg. This was done by the state of lower saxony, which is having a criminal prosecution into the matter. We also heard from the german vice chancellor yesterday. He says he wants a quick and fast solution to this crisis. Manus hans, fascinating. We are just getting some video it is almost like the perp walk. Letting the cameras catching him look stoic. That is not all bad news. There is a bit of good news. Hans audi put up some remarkable Sales Numbers in september. The interesting part is that they jumped in china, where they were seeing a slowdown. The audi is a necessarily being hurt. We saw strong members in the states, an overall increase. In germany they stayed flat but it could be seen as a positive sign. Something in the audi division, there is some hope for volkswagen. You take volkswagens overall profits, audi and porsche are three fourths of it. That audi hasnt been affected as a good sign for volkswagens Balance Sheet. Manus hans stays on the story. Still to come, could merkels handling of the refugee crisis when her this years Nobel Peace Prize . With a decision due in less than an hour, we look at her chances. Manus it has been a volatile week for two big lenders. Deutsche bank is posting a multibillion euro loss. That is due to a combination of writedowns and litigations. Uissehile, credit squ is announcing a new strategy later in the month amid growing speculation that it plans to sell shares. James is still here. Capital. Speculation Deutsche Bank is doing everything but to raising capital. James i think there are some clear global winners in the banking sector. When i think about who is doing well on the back of the fallout from the Global Financial crisis, i see wells fargo. I see amongst the investment banks, Goldman Sachs and jpmorgan. Over in europe, this is the right moment to be looking at the domestic players, but also the spanish banks. They are in a much stronger position, particularly with a turnaround in brazil. Tonus we have anna bot that whole risk in terms of being a Global Player with the wrong exposure james you talk about global risk and going back to the vw story, a lot of people say it is risky but at five times earnings on an Enterprise Sales ratio of. 2 that is not right for me because i worry about the deep government challenges. But i know a lot of people who think that price is cheap and i will go. Manus you mentioned vw. Thes the Lance Armstrong on industry. Peter welch is saying it is on the scale of enron. Vw t own any james thats right. The corporate governors were always suspect, i just didnt see adequate control to protect shareholder value, and i dont believe they are the Lance Armstrong. The problem in the cycle world is a hell of a lot of people involved in taking drugs. Cycling did it all. I dont think that is the case of the car industry at large. I look at toyota, which is a fantastic company we just dont know how they do it, we will make new technology, not in diesel. I think toyota is fantastic and will do well. Manus in terms of we have an article on the canary in the coal mine in regards to germany. Are you worried by the german data . James of course i am. I am worried about the whole of europe, spanish lenders being incredibly strong, a huge dry zone. The ferrari ipos coming up. Are you the man of a ferrari ipo . James it is a luxury stop but it is not for me. I see some fantastic longterm values instead. Manus always great to have you. Cio. Speaking of that gleaming red ferrari on your screen, that is what we will be talking about. How much is ferrari worth . They could launch a multibilliondollar ipo today. The details we go to milan. That story. I just had a horrible nightmare. My companys entire network went down, and i was home in bed, unaware. But that would never happen. Comcast business monitors my Companys Network 24 hours a day and calls and emails me if something, like this scary storm, takes it offline. So i can rest easy. What. You dont have a desk bed . Dont be left in the dark. Get proactive alerts 24 7. Comcast business. Built for business. Manus will come back to the pulse, live from london. Im manus cranny. Here are some of our top headlines this friday morning. Office september meeting of the fomc, an upbeat feeling about the u. S. Economy darkened by threats from abroad. Officials felt chinas a slowdown in growth and the threat to emerging market economies raised the risk that the dollar might strengthen further. That would make exports more expensive, and that could create an additional drag on the u. S. Economy. Are part of glencores plan to cut expenditures. They already curbed copper and coal as they attempted to navigate the right of Commodity Prices. It briefly went to 6 billion from its market value. Sab miller raised its annual cost savings target as it steps up its defense against a takeover bid. Brewery is aiming to save over a billion dollars by 2020, more than double the target set last year. The move comes just days after it rebuffed a 100 billion offer of its larger rival. Bill gross is suing pimco over his shocked departure last year. Executives at the company he cofounded pushed him out in order to get his hand to get their hands on his bonus. He says he wants to expose unethical behavior. That is how much ferrari could be valued at. According to people familiar with the matter, the official price range is going to be published today, and although the value may change amid market volatility, earlier we spoke to a majority owner of ferrari, along with his brother and sister, about the strength of the brand. Ferrari is a legend. It is a legend of its kind. It is a legend because it is capable. It has been capable to protect its brand, to protect the numbers, and not give more than what was needed. T has had great people in it i would say that there are a lot of great men and women in that company, in that company is a source of inspiration for me. I do believe also for many italians and people around the world. You dont sell a car, you sell a dream. Manus selling dreams. That is what we do every day on the pulse. Lets bring in our reporter at large, in milan. You follow this you chase marchione. You get the stories and break the news. Where are we on the pricing . Might be theoday day when finally we get the real price on ferrari. With respect to the final filing coming after u. S. Markets close in the next few days we will have to drive a ferrari. Marchionne is going to be investors offshore at the new york stock exchange. Finally, everyone will get a slice of ferrari. Manus looking at this valuation, they could be anything up to 12. 4 billion euros. How did marchione get this . I love with that grandson said this is not selling cars, but it is a out selling dreams. Everyone dreams about one of these showroom cars. Big lesson and gleam at 3 00 in the morning, and it is a dream, isnt it . They are not selling ferrari on the market as a carmaker. They are selling ferrari as a luxury good. Luxury goods makers are valued between 10 to 20 times their rivals. Marchione says that ferrari is more than a carmaker. Fiat chrysler is selling 10 of ferrari, and for the first time they can buy a stake in for ari. There are many people whoant to be part of that game. Manus it will be interesting to see who the institution of shareholders turn out to be, versus who do the retail owners that just want a little piece. Talk to me about the bigg