>> they have a change of jobs. jobs are changes. it would be fullest to think it would do business in the same way. >> societe generale tells us the way forward. the dollar strengthens as the fed resident tells a wall street

journal there close to raising rates next month. china's push to join the elite as a currency takes a hit. more work is needed on the yuan. welcome to "countdown." this is bloomberg live from london. 6:00 a.m. numbers are coming through from moments ago. let's get to carolyn conan. she is in paris. >> yes. it is the highest quarterly

earning in eight years since the financial crisis. societe generale benefited from three things. they had a good performance and equity ending. it jumped 61%. they also had a gain of 312 million euros. recovery of the economy in europe, especially in france. they had 45 million euros in russia. this is smaller than it was in the first quarter you also told me in the second quarter.

we spoke exclusively on second order earning. >> we have a strong set of results. good performances across the board. also good monitoring of costs. a really strong performance. and very happy. >> couldn't talk generally about the economy, france and europe. would you say the economy is still fragile? >> more progressive than fragile. the euro versus the dollar. lower energy rices and interest

rates. it is feeling the economy progressively. where are -- it does not a miracle. it is going in the right direction. i would say the cynthia thing most european countries. we are going to benefit from that. >> you were saying that you are seeing normalization. it is getting better at this quarter. do you think the situation will improve from now on? >> the economy will probably be at 3.5%. we see a progress in normalization.

we are adopting very efficiently or the business model. i think they are doing a good job. the top of that, business is independently funded. number money from the parent company. >> to citation that i'll -- no more money from the parent company. >> they plan to achieve it hundred 50 million euros by 2017 -- 850 euros by 2017. he said it is premature. some may have to change jobs. it is just like we have seen with other banks. it is a matter of feeling tougher regulations at boosting investment in new technologies.

the shares have gained 28%. that surpassed the euro banks index. they want to target 11% by the end of 2016. >> thank you very much. six minutes past 6 a.m. in london. let's talk about numbers for the second quarter the dutch banking groups. second-quarter net profit coming in at 1.3 6 billion euros. -- 1.36 billion euros. we're getting were details on their balance sheets.

it is a fully loaded ratio. they are giving us underlying assets. going into these numbers, is lot of focus on the capital ratio and whether that would be boosted by some of the asset sales they are doing. they're focused on the cost side of things and talking about whether we would see cost the lower and improving the environment and driving a better picture. all of that when we talked to the cfo of ing in about 40 minutes time. mystic a look at asia. -- let's take a look at asia there is a chance they will delay the chinese currency in the reserve basket.

david english joins us now -- -- david ingles joins us now. >> good morning. that me get started with some headlights -- highlights. the imf may have to decide on the you want -- yuan inclusion. you're looking at a one-year chart. the imf also playing out an update and that ongoing review. there is a proposal to take the push back any rule to changes. they will decide whether to push this forward.

it still could happen. this makes the criteria. it is loosely defined. a lot of these metrics like percentage of global reserves for the yuan trade finance, it is actually a little behind. that is all between the chicken and the egg argument. once the yuan becomes adopted that rate of adoption accelerates. anyway, that is the headline right now. the imf may decide on the yyuan's

inclusion. we will stand top of the story if that happens. another volatile session there. this massive rally on tuesday. that is wednesday. down about 1.4%. volumes are thin. that is over 500 stock still frozen. investors are kept on the sideline. it is all over the place. let's leave that as is. let's get an update on markets across asia. it is looking much better than tuesday.

they are trading higher. it is one of those days you have a few of these big asian stocks. and their concession today -- a good session today. most reporting very good results. an hour left in trade. the rest doing well. we will update you with what happens on the shanghai composite. volumes are about -- fallen about 60%. we will see how this plays out. that is the state of play across asia.

back to you. anna: thank you. that was david ingles. twitter question of the day -- what should sway imf's decision on yuan reserve currency status? #yuan. we are considering this in the lives of exceptional selling we saw chinese equities. their china prop up the chinese stock markets. what do you make in all of that? should that sway the imf is decision-making? mentioned some moves in the treasury market in the dollar as well. this is a picture of the dollar over the last three days. if it's a despite. his comments are coming through.

this is where close lately i think september. the bar is low. treasuries falling. the dollar rising. away from the macro picture, list talk about what is coming up on "countdown." we will be talking about all things animated. this may disappoints. they slashed at the forecast. find out what is troubling them after the break. ♪

>> "countdown." -- welcome back to "countdown." societe generale beats estimates.

socgen says it will cost costs in 2017 to counter -- cut costs in 2017 to counter investment in technology. baxalta has rejected the advanced by scheier. -- shire. shire close down more than 5% in trading. baxalta closed up. the imf says her work is needed on studying the data in the yuan . the imf says -- major benchmarks. disney in extended trading's missed analyst estimates.

it also cut the force gas for cable tv -- it's forecast for cable tv profit. it is facing challenges like fewer cable subscribers and a strong u.s. dollar. as take a look at disney shares in after-hours trading. it dropped more than 6%. chris stewart us on the phone from los angeles. thank you for staying up to talk to us. it is down more than 6% after hours. >> there are two big things they called out. one is the foreign currency is having impact. the operating income it will be down as much as $500 million. the second thing is slower growth in the cable tv business. >> what about the bits of disney that we perhaps on this side of the atlantic think with the

theme parks or the filmmaking? howard those business -- how are those businesses doing? >> they had a big flop in "tomorrowland" but then strong hits of "avengers" and "cinderella." the film industry is strong. >> this has been a strong performer in the stock. does this suggest that some of the glass has fallen away from this business? what was driving it so strongly to this point? >> there have been a lot of anticipation about "star wars" movie coming out in december and the new shanghai theme park is coming out next spring in china.

there has been a lot of excitement about those two big events coming up. historically, it has been the cable is this. -- business. we are seeing a little weakness there. it interesting to see how people react this time tomorrow. >> thank you for joining us. let's shift gears. the bank of england is changing the way it releases its data. it will publish its policy decision and minutes and votes and forecast for every facet of the u.k. economy. we discover what to find out on super thursday. >> the call it super thursday. the bank of england is about to lose a flood of data. up until now, their decision and minutes fell two weeks apart in and then there are banks report would fall summer in between. that is about to change.

they will simultaneously published house a decision meetings including votes come and forecast covering every facet of the u.k. economy. at leeds investors will have all the information in hand and within -- it means investors will have all the information in hand and within seconds. here is how it will go down. officials on threadmiddle street will gather on august 5 to be briefed and then vote. everything will be announced the following day at noon giving you 45 minutes to digest all of the details before the governor mark carney begins his press conference. traders, investors, economists of the city of london, brace yourselves. >> that was jonathan rep orting there. are you braced? >> very brace. >> very ready.

is this anything more than does a logistical headache? or is it immaterial thing? >> it is the opportunity. we get to see all the data on that once. it will be alleges exercise. that is what we do. -- logistical exercise. that is what we do. >> it'll have to than -- they don't have to partially revise that as they go. everything happens on one day. equity one that helps them with communications. >> yes, exactly. minutes were released at a different time from the inflation report. it might be some small the between that to.

they -- to understand why that is going on. we could piece things together and a much more consistent way. >> you have been a lot of talk of whether we might see dissent in terms of some of the members actually voting for a rate hike this time around. i you expecting that? >> -- are you expecting that? >> i think so. . . i think of stressing that process. -- i think we will see that process. >> when i you expect to that to take place? some are talking about may. some are bringing that to february. you are saying it could be dependent on what the fed does in september. >> that is when it is fully

priced in we think the u.k. economy is running out of slack. there is a possibility the bank of england could go in november. headlining inflation is really low. but doesn't start picking up until the start of next year. it will be quite surprising. there is no massive market reaction to that. >> in terms of the things you might hear from the inflation report, that is where we typically get updates from the central bank. one other things people are talking about is whether we will see saw a more hawkish comments. will we see some ethicists in the short term? that will be interesting.

we have got the trade waiting sterling chart here. it shows how strong sterling has become. >> exactly. you have the combination of the strong sterling -- the statistical effect will wash out by the start of next year. it does more of a powerful longer-term process. generally they are prepared to consider not being dominated by the strength of sterling. the sense is when it is released tomorrow -- it will probably be at target or slightly higher than previously. the reason for that is we think the slack in the u.k. economy -- we are seeing wages growth in

the u.k. being reasonably strong. the labor market is pretty good. it is being removed in a reasonable place. it is enough to take policy rates away from the -- d >> it sounds the conversation will be about lift off in the profile of rate increases from that point. >> exactly. the market is pricing at such a low half of interest rate increases. to us it seems possible. there's nothing be priced in that it goes somewhere between two or 3%. it is a lot less than what would assume. it is significantly higher than that. >> thank you very much.

coming up, gold, copper, oil. after the break, we are asked when -- we learn more about commodities markets. we will take a break. see you on the other side. ♪

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anna: welcome back. you're watching "countdown." you're the storage you need to know this morning. societe generale reported its highest profits since the financial crisis. they said that they were caught costs by 2017 to counter rising regulator rate extensis and expenses -- expenses and expenses in digital technology.

china has been pushing for the yuan to join the dollar in that you meet imf ask it. alibaba is tapping michael evans as president. is to be in charge that the e-commerce companies and global x mansion beyond its home in china. we are expecting to get numbers at this point from london petroleum. we were we for those numbers to come through. we will be speaking to the ceo of london petroleum -- lundin petroleum. we will wait for those numbers to break. we will talk to him about m&a.

we will see how he fits into that conversation and macy's on the production side of things. we will talk to him about all of those. it has been a rotten year for investors in commodities. it falls across the assets last. we have ken hoffman. he joins us from singapore. good to see you. you have been traveling in china recently. there is a demand any supply story here of course. >> it is very important to china. china is trying to right the ship. unfortunately on my trip through china, we didn't see any green

shoots whatsoever. the numbers just came out of china. it has been down 16 of the past 18 months. i met with a senior executive. tell me what's the are is looking good? is that, nothing. [laughter] anna: that is fairly gloomy. what about the commodities story? offering a counter to that. some are suggesting the market is putting too much emphasis on a slowdown and the demand. >> the commodity producers have been pretty dumb. there are still continuing pretty much all the plans. you have china which is slowing

down. another part of the problem is lot of those -- they are saying don't worry, china will come to the rescue. everything will be fine. all of that is a recipe for what we're seeing with the price. it is falling off a cliff. anna: we have seen a number of senior oil executives that we will be lower for longer. is that the sensing you're getting as well? ken: how long will they be in a bear market? we are minute. that is -- wait a minute. that will save the day. it is pretty gloomy stuff. anna: they give her much for

joining us. let's get back to the director of fixed income. does that ring true with you? >> it seems to be perfect storm in commodities. we have got the swing from in investment leader to -- it means much less commodity intensity. the demand is falling off. all of the producers were expanding massively. what we have seen this is perfect storm.

prices have to adjust to reflect that. we have increase in supply. we had a buildup in supply in the u.s.. that we have iran with perhaps a million barrels a day. anna: the trouble is if you're looking for reasons to be bullish on commodity prices that this might change come all of the guest i have talked to, no one could come up with a trigger that will have the -- have a change. that is why we are getting conversations talking about three or five years with no change. >> i think on the face of it that is what analysis suggests. these are long-term projects.

they just cannot be shut down. it is about geopolitics as much as anything else. it seems unlikely at the moment. i would be relet to extrapolate the price worse we have seen over the last 12 months. i think the price mechanism should be efficient. anna: what has been interesting about consumers benefiting from the oil price and in countries where commodities are important. we could see a tax -- tax cut effectively. instead consumers went and saved some of that money.

some are describing the is a more medium term effect. >> exactly you it is a secular shift of sumer's. -- consumers. i think what a number of investors have done is wrong is that they have extract related the weakness in commodity prices. that is to say it has fallen off a cliff. we don't think that is the case. it is more of a supply story. that is important. anna: how are you exposed to these commodity prices at the moment? in the fixed income world, sovereign debt are some

of the countries -- or is it more about corporate operating in that space? >> we are generally not overexposed or underexposed to anything to do -- what we have seen in some of commodity producers and the russia's and brazil's -- we are keeping a close eye on that. it is quite substantially weighted towards energy expression production companies. that has been really week. anna: thank you, kevin. let's get to the latest on greece now. global optimism with a deal possibly insight.

as nichols is in berlin. good morning to you. hans: a looks like brussels is quite positive. we haven't heard anything match that from berlin you. all of berlin is officially on vacation. the timing of this is important. you could have votes in national parliament on august 12, august 14. it would have to be called into session. there are still differences. there are a couple of requests. what will the details be? the numbers are quite high. do the numbers add up? could you get enough money to actually go into the bailout? what to do about recapitalizing the greek banks?

there's a lot of talk about creating nonperforming assets. we saw that on the athens exchange. yesterday it ended the day down. that could be an indication it is returning to normalcy. bank stocks continue to be clobbered. the other ones were down 26 or 29%. there's another meeting on whether not to extend that. looks like about a billion euros of come back into the banks now that we are returning to normal. anna: thank you very much. coming up we speak to the cfo one of the continent largest banks. stay with us for that

conversation that is coming up next. ♪

anna: welcome back to "countdown." here the stores need to know this morning. society should the route reported its highest profit since the financial crisis. socgen said he would cut costs by 2017 to counter rising expenses and investments in digital technology. shire made a bid for drugmaker baxslalta. baxalta has rejected the advanced by shire. shire close down more than 5%. baxalta ended the day of.

i met says more data is needed on the yuan. china has been pushing to join the club. the imf says -- ing has reported second-quarter earnings. we could speak to the company's chief finance officer. patrick, great as always to speak to you. the business showing second-quarter income rising by 27%. tell us where this is coming from. >> good morning.

it is supported. it is coming from challenge in growth markets. it is coming to our commercial bank. these of the main areas we are expect to. anna: your repositioning of ing from being a rustic player -- tell us that transition. patrick: we have revised strategy last year. we have challenging growth markets.

we had: in turkey -- we had fallen -- poland and turkey. 2020 plans and organic growth plans. you could see germany, which is the most developed in that phase. a quarter million profit per quarter. now $10 million with commercial lending their. that is the strategy. anna: can you update us on targets for your cet ratios?

what kind of balance sheets are you looking to maintain over at ing? some are saying about you would look well-capitalized. how do you capitalize that? patrick: that is one of our success stories. we are delivering on that. we are delivering on that. we also have capital. at year end, we will be looking at -- anna: sorry to interrupt you.

could you tell us what is happening in turkey? patrick: we cannot really comment in the market. we have a strategy that is working very well. we feel no pressure. that said we are able to cast our eye over the market. anna: ok. and you for joining us on the program this morning. the cfo of ing. 10 minutes until 7 a.m. in london. lockhart made comments to the

wall street journal -- let's bring in kevin adams. it's in that he is suggesting they are close to a rate increase. >> certainly. the question is whether obese september or november. they seemed to be on the hawkish side of the fed. he is much closer now. on the face of it it has been much higher for the rate rise in september. 225 or 335. that kind of number. that would give the fed a green light for a rate rise in

september. anna: because of all of the conversation of whether it would be september or december, there will be a lot of attention. there always is. what should we be looking for us to mark is at the wages or component? what will be decided? >> a look at indicators. the chart is a useful thing to look at. also when you look -- all of the leading indicators are now above where they were in the previous boom.

it is pretty much up there. it is not up to the previous peaks. the keynote was payrolls. the latest data has increased up to a level in which it has fallen back a bit. there are more forward-looking indicators. it is point to labor market times. anna: september. ok. we will definitely be hearing your thoughts. thank you. stay with us. we will carry on our conversation.

take us through some of the big stories of the day. it hasn't escaped your attention, has it? >> that's right. i think grew looking at the biggest gain in six weeks. are looking at where people stand on rates. you could see a move from unanimous rates to a couple of people saying maybe we should move. there seems to be a conundrum. we would like to see the economy gain. it is rising quickly. anna: just illustrate that, a chart here. there is a five-year chart.

it underlines what they are dealing with here. >> you could see the export sector feeling some pressure. anna: what else have you got for us? >> the unintended war on drugs. it looks at the hash highway. a lot of amphetamines move into saudi arabia. they shut down that trade. the quest to the most recent data available. it is in that area. anna: amazing.

that was a couple of stories from our website. thank you very much. just try to get people ready for super thursday, do you think there'll be any kind of chaos in the markets? just had to deal with all of these new releases and a new warm and a new time. >> things could possibly go quiet for a few minutes. they're trying to find the differences in the forecast. from that point of view, -- anna: they'll still be giving us those chart rather than a number that everyone could focus in on.

kevin, thank you very much. thank you for spending the last two minutes with us. we will take a short rate. we will be speaking to the company's ceo about company numbers and take a look at that with him. ♪

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>> people have a change of jobs, because again, some jobs are changing. >> it would be foolish to think with the new technology we would do things the same way. anna: the ceo tells bloomberg exclusively cutting costs is the way forward at the second-biggest bank. it posted profits. treasuries fall and the dollar strengthens. the central bank is close to raising rates next month. china's currency question. the push to join an elite basket

of currencies. welcome to the program, you are watching "countdown." it is 7:00 here in london. 7:01 in fact. wanted to bring you numbers from the energy sector. we have numbers from a northern independent oil and refining company. let's tell you what their numbers are. they are talking about q2 profit coming in at 700 million euros. giving us guidance, saying it stays the same. later on we will be speaking with the cfo of neste.

getting numbers from the london stock exchange group. caroline hyde has the numbers. caroline: a strong start revenue up 19%. basically in line with analyst estimates. 1.1 6 billion pounds. operating income, 36 6 million pounds. up 11%. a strong case. they continued to deliver strategy, good financial performance. some breaking news there from the london stock exchange. i know you have an interview to come. and a: the ceo at the london stock exchange joining us on the holes. a number of businesses reporting and their representatives talking to us later.

let's get to the next guest. legal & general has released their numbers. the estimate was 677 pounds. the dividend coming in higher than the forecast, 3.45 pence per share. who better to talk to about this than the ceo, nigel wilson. great to see you. tell us what has been driving the business. strong organic growth. nigel: i have talked about good numbers, but we have a great numbers today. operating profits up 19%. dividends up 19%. great numbers. anup: where are you getting the growth? you have talked about intern

ationalization. nigel: the macro trends, the nationalization of lg and as a business. we have been hugely successful. global pension de-risking not going away. 10 trillion of assets that need to be managed. we will get a reasonable share of that going forward. housing, an interesting area. as we move from nimby-ism of the past. anna: remind us of where we are on the structure of -- story of infrastructure investment. nigel: not in my backyard was a dominant theme of the british economy for 25-30 years. devolution, it is part of the same thing. giving accountability back to

the great cities of britain. several stepping up, realizing they are not under built. they have to make themselves into modern cities. generating real jobs and real growth. there is too much focus on bank of england what interest rates will be. what we need to be talking about is investment in jobs. how to create more investment in the u.k., more jobs in the u.k. and ana: let's explore that. they said -- i remember speaking to the bcc around the time of the last budget. they reiterated the british chamber of commerce this message, the way to get better if the structure development. that nimby-ism drops away. is this because we are better compensating people like

arguably the french do? or because attitudes have changed? nigel: attitudes have changed confidence is changing. the message that devolution is going to happen is happening across the economy. bristol, cardiff, all stepping up. trying to do the right thing for the people who live in those towns. create real jobs for them. interest rates have never been so low. they might go up 25 basis points in september, but they will be very low for a long time. it is a great time to invest. anna: one of the things you have been saying, speaking favorably about the government. they introduced changes to the pension agenda. what was it, more than a year ago? how is that working? how does that affect your business?

nigel: we hurried in a little bit. people are under serving for their pensions. we are seeing a pickup in pension servings. contributions are only 2%. by 2018, 8%. substantial growth in pension contributions. we have to help people and figure out how to give them the proper advice about how to use their servings to look after themselves. when they are close to retiring. a bit of a gap in that. anna: back to the business itself. there is some talk about you selling your french business. can you talk about what is happening with that? nigel: some of the small peripheral businesses that don't fit into the long-term strategy, we call it the cluttering. the five or six things that matter and make a difference. it will help us create a great business at legal & general. one of the smaller -- one or two

bank of the smaller divisions are getting sold out as we speak. anna: nigel wilson the ceo of legal & general. coming up after a short break, we will talk more. earnings reports, let's go to caroline connan in paris. the performance has been driven by trading. this is something other banks have talked about. still suffering from their exposure to rush on the negative side of things? caroline: they are posting their highest quarterly earnings since the financial crisis. they had good performance across all the units except in russia where the situation remains difficult. if you look at trading, they have jumped in equities trading

61% in their income. 799 million euros. they had a good performance in france, the main domestic market. the french bank contributed 419 billion euros this quarter. oncee issue is the situation in russia. they managed to reduce this in the second quarter two 45 million euros from 90 million euros in the first quarter. i asked the ceo what he thought about the situation going forward in russia. >> we know the risk remains high. we have not changed our guidance for the year. fundamentally, we see -- we expect a slight increase in gdp.

we are adapting efficiently from business models. monitoring the portfolio strictly. i think we are doing a good job. the business is independently funded. no more money from the parent company. caroline: despite the difficult situation in russia, expecting a slight increase in gdp in russia and 2016. he told me he remains 100% committed to russia. anna: they have also announced a new cost saving plan, 850 million euros. is that because of the tougher capital rules introduced? caroline: of course tougher capital rules are affecting some businesses. equities trading as i was mentioning was actually jumping.

this is one of the reasons. they also want to adapt their new business model to the new technology and competition. rivals such as bnp are doing the same. they have to adapt. their business model, whether this plan of 850 million euros of cost savings will involve -- and whether it will only focus on the investment bank. >> the cost saving plans can mean people have to change jobs. jobs are changing. it would be foolish to think with the new technology, we would do the business the same way. caroline: the ceo saying it is unnatural to say these will involve job cuts. some people will have to cut jobs.

in terms of litigation, and the investigation going on with the u.s. authorities regarding business done with the sanction countries, he told me the investigation still going on until the end of the year. anna: thank you very much. joining us from paris. coming up on "countdown," the first super sale day at the bank of england. we are back after a short break. ♪

anna: here are the stories you need to know. france's bank reported there earnings.

socgen says they will cut costs by 850 million euros. investment in digital technologies. shire made a $30 billion -- they have rejected the advanced by scheier, which is looking to become the biggest maker of drugs for rare afflictions. the imf says more work is needed in analyzing data on the yuan before it can grant the chinese currency reserve status. china has been pushing for the yuan to join the dollar pound and yen -- they say it trails those global counterparts in

benchmarks. let's continue the conversation with nigel wilson. good to have you still on the program. we talked about where interest rates are headed. much to your exacerbation i know. i know you think these get too much attention. but to risk annoying you i want your perception on where you think interest rate are going to head. it is super thursday in the u.k. tomorrow. a load of data from the banks. what do you expect? nigel: i think we need to focus more on the i for investment rather than interest rates. i don't think whether they move up in september or november really matters. when yellen decides they are going to go up, it will be a positive signal. they have been nervous about this for a long time. whole industries have been developed while interest rates have been low.

very cautious and conservative people are being reluctant to move operates. i don't to get will have a profound impact on many industries are many parts of the world. there will be volatility in the markets, but that is to be expected. the signal is the economy is doing better. we will follow in their wake. it is unlikely the bank of england is going to do anything ahead of the fed. it will be interesting to look at all the data. inflation is more than anybody expected to or three -- two or three years ago. we are living in a different world, the zero world. lots of zeros. but lots of opportunities. anna: any rate rise will not be like those in previous cycles. we were joking about how rate hikes used to be rate hikes.

you don't think then that this will take the wind out of the investment and infrastructure story we talked about? nigel: i don't think so at all. we are looking at 10, 20, 30, 40 years for investment returns. movements in interest rates are going to have zero impact on our strategy. anna: you are saying interest rates going higher will be a sign of positive developments. one negative for the u.k., sterling having a negative impact on exporters. what can we do to boost that part of the economy? nigel: it is becoming more highly valued as a currency. that is a danger in raising rates further. we simply do not have enough export infrastructure around the world. the best in the world at creating small businesses. they are not exporting enough. there's not enough if a

structure in china, south america, to help these firms export faster. the trade balance is dreadful and rarely talked about. that is for me, a real problem we are not addressing. anna: i have taken to bring messages from this conversation. three, infected with the numbers are great. trade balance is dreadful. we will talk more next time. thank you for joining us. nigel wilson, the ceo of legal & general. the bank of england is changing the way they released their data. starting august 6, they will simultaneously publish the policy decisions, the minutes of the meetings, and the forecast about the economy. jonathan ferro explains what to expect on super thursday. jonathan: they call it super thursday. the bank of england is about to unleash a flood of data. until now, the policy decision

and in minutes fell to bring weeks apart and the inflation report would fall somewhere in between. that is all about to change. starting august 6, it will simultaneously publish its policy decision, minutes, as well as any new forecast. the instantaneous unveiling means investors will have the information in hand within to wade through all at once. it is an unprecedented move for a major central bank. officials will gather on august 5 to be briefed by staff and a vote. the decision, together with everything else, will be announced the following day at noon. giving you 45 minutes to digest everything before governor mark carney begins his press conference. traders, investors, brace yourselves.

anna: we are braced. jonathan ferro will be back in 40 minutes time with "on the move." one of the things the bank of england is wrestling with his weakness in energy prices. we have heard from a number of companies. neste reporting. philip is onset. let's take these in turn and have a look at them. what do we hear from neste about business keeping its guidance for 2015? phillip: the refining business in general has benefited from the low oil prices. the joy of the downstream. they have lower costs of materials. it remains open how the story will continue.

a lot of people say the refining margins will not continue in that way. neste is a special case because of the value fuels/ it is also producing high-quality fuels. anna: let's talk about london, the oil and gas company. interesting commentary about their numbers. update us on what they are saying about production. they are saying their production base will grow significantly at a time when it is falling. philipp: lundun has low production costs. in the current environment, that is very good.

however, they had to delay their production forecast. lundin has a number of the big developments, fields coming up. they are saying production will start in 2015. it is not all bad. they are not out of the woods. anna: we will be speaking to the ceo from lundin in a few minutes time. philipp: thank you for taking us through the highlights. some big stories with alibaba poaching one of goldman sachs key players to grow its global expansion. investors fall out of love with apple as shares hit a six month low. and then a host of media earnings. disney, the top sock on the dow

so far. caroline: let's rattle through all these trends. key among them, wall street's finest going to tech titans. goldman sachs former partner has been on the board of alibaba. he is now going to be leading the charge in its expansion. this is michael evans. he was a partner, vice president . when you are looking at his amazing cv vice chairman over at goldman sachs. head of global growth markets. with his knowledge of asia. he has taken the role of president at alibaba. focusing on the international growth strategy. fascinating statements saying globalization is the most important strategy for this particular chinese

e-commerce giant. the 2 billion customers. heat is going to be leading the charge. let's look at apple. the frenzy of selling we saw yesterday. this is a chart of the 200 day moving average. suddenly be share prices dropped below the 200 day moving average. the first time we have seen that. the six or did the selloff across the board -- this accelerated the selloff across the board. if we look at what really happened, the volume exploded tuesday in terms of selling. 120 million shares traded yesterday. we haven't seen that since january. earnings disappointment is playing into this, as is the china selloff.

perhaps they are not spending quite so much on tech going forward. anna: caroline, thank you. coming up on countdown, we will talk oil once again. we will speak about the numbers with the ceo. ♪ . .

anna: "countdown. welcome back. you are watching" -- welcome back. you are watching "countdown." second-quarter net income rose to 1.35 billion euros from a year earlier. socgen also said it will cut jobs. the imf says more work is needed in analyzing data on the yuan.

china has been pushing for the yuan to join the dollar, the euro, the yen, and the pound in the imf elite basket. the imf says the yuan trails those currencies. michael evans will be in charge of the e-commerce company's global expansion in china and will report to the ceo of the business. just 30 minutes to go until the start of the european equity trading day. caroline hyde has her eyes on the market. caroline: after a little bit of selling yesterday we could see a little bit more buying when it comes to equities. you will see the euro stoxx 50 almost .5% higher in europe. in france up about .5%.

how much does that have to do with socgen outdoing credit agricole? really showing what it is made of, up taking -- upticking in terms of sales. we are also seeing the dax up about .5% as well. clearly, equities rising. we will see how the bond market is performing as well. all eyes on the federal reserve. anna: thank you very much. caroline hyde with the latest on the markets. let's talk about energy. lundin petroleum reported earnings this morning. second-quarter revenue missed with production guidance being cut. joining us for our first interview of the day is lundin ceo ashley step install. -- ashley heppenstall. you were talking about how your production base will grow

significantly. at the same time, you are cutting your guidance on production for 2015. update us on what is happening on the production fronts. ashley: our guidance was that we would triple production during 2015. so we would exit this year at 75,000. we are still on track to achieve that in 2015, but we have cut our guidance this year for a couple of reasons. the first oil from the greek project is being put back to the end of the fourth quarter. have had some production timing issues with one of our fields during the second quarter, which has resulted in reducing our guidance from -- four 2015 production. we are on track to achieve our production are the and of this year. anna: what is your assumption on

oil prices? we have seen a number of executives increasingly moving into the assumption that oil prices are not going to bounce up anytime soon. which camp are you in? ashley: i think the question is how long is longer? i am of the mind that oil prices will rebound, despite the negative momentum at the moment and the questions surrounding iran and the chinese growth. it is an area where spending is significantly less on capital at the moment. that will impact supply. my view is supply and demand will come into line. when that will happen, my best view is the later part of 2016. but we will see oil prices recovered. the companies which are going to perform are the ones like ourselves, which -- with a low

operating cost base and strong balance sheet. anna: you talk about the cost of getting oil out of the ground and you say that, going forward, your profitable operations are going to be below $10 a barrel. how are you managing to do that? what kind of discounting are you getting from some of your suppliers that enables you to have that kind of production? ashley: we are starting to see costs come down. clearly, the sector is in a difficult position. therefore, we are managing to see areas -- costs come down in areas such as drilling costs. when you bring on stream a new project and oil production levels are high, the operating cost per barrel is lower. that is the major reason why our operating costs are at the levels which they are and will come down over time.

anna: if we try to get a handle on how weekly the company's -- how quickly the companies that provide you with services are responding, can you give us examples of where you are seeing companies cut their prices or demand less from you as a result of this week or price and vice -- weaker price environment? ashley: i think everyone is on board. if we take the costs of the drilling rigs, we were paying close to $500,000 per day on a drilling rig. those rates have come down by as much as 50%. companies are clearly operating those rates on a basis where they are covering the cash operating costs. they would much prefer those rigs to be working than stacked. i think the main issue for the industry is that lower oil prices do make the industry

focus on being more efficient. that is starting to happen. the success of that will be very important for competitiveness. that is very encouraging. anna: should the weak oil price be focusing minds on mna -- m&a? are you expecting to take this opportunity to do more m&a? do you think the sector, as a whole, will? ashley: i have to say that, as oil prices drop, some of the equity valuations start to look pretty interesting. my view is that we might start to see m&a coming more into the fore. if the right opportunities arise for lundin, it is something we will look at. anna: thank you for joining us.

great to talk to you this morning. ashley heppenstall from lundin petroleum. just how much the suppliers are cutting their prices for those oil producers. let's move on. let's get some more on the oil story and how the collapsing prices are being felt in the u.k. jamie murray joins us now with more. good to see you this morning. weaker energy prices something that the mpc is going to be wrestling with in the run-up to this super thursday. jamie: that is right. if you look at the oil prices since the main inflation report, it is white a bit lower. the same is true of the exchange rate. i am expecting the bank of england to revise down its short-term forecast for inflation. anna: we have the commodities prices falling. we have the pound stronger. i have a chart that shows the

trade-weighted sterling performance over the past couple of years and it illustrates what the u.k. economy has been up against. we have seen a substantial move higher, haven't we? jamie: it is going to be a drag on their trade, but it also makes it cheaper to buy. we are expecting the latest move maybe .2 or .3 of the rate. anna: does it make sense what the bank of england is doing this delusion of data -- deluge of data in one day? they do not have to keep visiting this in between. they can speak freely. jamie: a lot of data for the markets to interpret. anna: they do not care that they

made your life difficult for 45 minutes. what about the mpc voting? are you expecting more evidence of dissent among the members? jamie: we are. we do not think in mccafferty will go for it just yet. i do not think david miles will vote for high cuts at this time. anna: where are we going from here then? we have said too much, according to nigel wilson on interest rates. where do you see us heading afterwards? there are two things, where they start and where they go from there. jamie: we expect them to be much

lower and for longer than historical averages. people are gloomy about productivity growth and global growth prospects. we expect these things to improve over the next couple of years. anna: thank you very much. jamie murray joining us with the relationship between the pound commodities, and what the bank of england is wrestling with. tomorrow, super thursday, on the horizon as well. let's get more. ken hoffman is the head of mining for bloomberg intelligence. you have been traveling in china. this is a central economy to all the conversations we are talking about. how central is china to what we are seeing in the commodity markets? ken: if you look back to the year 2000, china is between 80% and 130% of all the growth in metals in the world.

most shrunk in metal demand and china took up 100% plus. china is pretty much as the be-all end-all when it comes to commodities. they are shifting focus to higher value added technology, rather than those kinds of areas, rather than just more construction cycles. it has really been a problem. when you start to think about it -- maybe, in retrospect, china has been in a construction bubble. china uses as much cement as north america does in a year every 11 years. how long can that last? now that it is starting to deflate, it is having a major impact on commodities. anna: what do you see happening from this point? a number of oil executives are acknowledging that oil prices are not going to bounce anytime soon with respect to lundin a few moments ago and show last week.

where do you suspect we had from this point? ken: the mining companies, in particular think it is insanity. times are tough. how are you going to increase production? we are going to go forward and increase production. it is like, wait a minute. are you listening to what you are saying? you have zero plans to cut production. the industry is really going to be in a bind. we are looking at copper supply adding about 42% over the next five years. in an industry that in our estimation, is seeing copper demand declining. how does this workout out at the end of the day? we need prices to go down first. then these companies will be in so much pain, they will finally cut. anna: how long do these companies run with these kind of -- this kind of mindset?

you can understand a business not doing very much, but at some point, they have to make a decision whether they keep operating at these lower levels or whether they stop. ken: part of the problem is they have made so much money, the prices have not come down enough to where they are really hurting the company. they would need to get to 3500 per metric ton to see pain where they would cut. most iron ore analysts are looking for 30 to $35 pre ton. that is sort of the problem. none of these guys see any reason to cut production. these prices have not come down far enough for them to say, i am going to shut this line, playoff a lot of people. -- lay off a lot of people. anna: thank you for joining us.

let's talk about our twitter question of the day. we are focusing on china and its ambition for its currency. the imf says more work is needed before the yuan is given reserve currency status. what should sway the imf in its decision? should it be swayed by the stock market and the regulator steps to try to tackle those moves in the stock market? what do you think? get in touch on twitter. coming up, has shire found the next big thing in pharma m&a? it's been for a company that is barely a month old. we are back in a minute. ♪

anna: welcome back. here are the stories that you need to know. france's second-biggest bank

reported its highest profit since the financial crisis. second-quarter net income rose to 1.30 5 billion euros -- 1.35 billion euros. they will cut costs by 2017 to counter regulatory expenses. shire made a $30 billion bid for xl to. -- baxalta. baxalta has rejected the advance by shire, which is looking to become the world's biggest maker of drugs. shire closed down more than 5% while rexall to -- baxalta and in the day up more than 11%. let's get more on shire's bid. sam joins us in the studio. does this make sense, this approach is that we saw from shire?

sam: when you have a hostile bid like this the other party is not just going to roll over and say yes on the first bid. i think it does make sense for shire. this is along a strategy that they have been talking about. the new ceo. it does fit. parts of baxalta fit very well with what shire is trying to do. this would create a significant powerhouse where you still can command some meaningful pricing power. anna: and rare diseases is something baxalta seems to specialize in. sam: both companies. shire has been mostly based on that. attention deficit disorder, etc. they are trying to bring their earnings into ireland and reduce the tax on it. pretty quickly, they get a significant uplift in earnings.

anna: are they going to roll over? is this going to happen? are there hurdles between now and when the deal gets done? sam: shire has been saying they are trying to engage the management and they have not engaged. anna: they are saying, other than one meeting, they have not responded. sam: baxter owns close to 20% of the company. they can have a significant say in what happens to the company. if baxter says to the shareholders, do not do it, it gets tougher. the same kind of thing happened before. there are hurdles here. could shire raise its bid further? yes, i think so. anna: people thinking maybe shire is going to overpay for this asset.

sam: overpay i doubt shire would do it they have 6000 people and have the same revenue as baxalta has with 16,000 people. i and not suggesting those can be let go but usually people take 10% of the operating expenses as the target and say that is a possibility. of course, shire gets a significant boost by just moving the earnings of baxalta into the irish location. i think this share price went down yesterday because a lot of people were expecting shire to be the prey. anna: prey becomes predator.

great insight there. let's take a look at what is going on in asia. some big stories today. the imf saying there is a chance they will delay putting the chinese currency in its reserve basket. david is with us from hong kong. david: good morning. that is right. there is a chance. they will be deciding on whether or not they do push that back. that is the story. they need more time to analyze whether or not the room and the -- the reminbi is ready to be considered a global currency. back to the markets. it is a bit misleading. most markets are up today. we are doing better in a sense that a higher percentage of individual stocks are higher. if you look at the regional benchmark, we are actually

lower. that is down to a few stocks. toyota, 10 sent -- tencent, samsung. heavily-rated stocks pulling the index down. that being said, we are seeing gains. back to you. anna: thank you very much. david joining us from hong kong. "on the move" is up next. jon ferro is here. jonathan: a stronger dollar and a weaker euro. it is the stronger dollar we have got to talk about. a vote-carrying fed official has just endorsed september in a big way. dennis lockhart saying it would take a significant deterioration in economic data to convince it to put off hiking rates next month. nevermind more improvement. he needs to see a significant downside surprise to sway him. has he got any friends?

how many? that is the key question for this market. also, in the u.k., we look ahead to super thursday. anna: interesting that those lockhart comments have not put equity markets off their stride very much this morning. as we look at the futures we are expected to see a little bit of a move to the upside at the start of trade. that will do it for "countdown." stay with bloomberg. the market open will be a big feature on "on the move." jon ferro will be here with that. socgen reporting numbers earlier today. watch out for movement in that company. ing also reporting. keep an eye on the banking sector. i will see you tomorrow. ♪

jon: good morning and welcome to "on the move." we are moments away from the start of european trading. let's get stay to the morning brief. the dollar climbs to a four month high after dennis lockhart tells the wall street journal that the central bank is close to hiking rates next month. a big beat, bloomberg is told exclusively that cutting costs is the best way forward. another deadline -- greece's government aims to reach terms on a new bailout in the next two

weeks before another bill to the ecb comes due. ahead of the open the futures in london are up a little bit high. are we going to get a higher open? let's answer that question. caroline: after a dale of selloff in europe, could it be back into the green? we have the same breaking now and later and the eurozone at 9:00 a.m.. it's basically flat to on the green side. there is caution when it comes to china. the imf saying there is still more work to be done. if you want a reserve currency. everyone is focusing on what the federal reserve will do come september. will we see a rate rise? we have seen dennis lockhart playing into that voting member on the federal reserve