by 91 points. let's get straight to the market open with caroline hyde. caroline: 33 hours and the rally falters. we follow it here. risk of version, million of concerns about global growth. game,still got a good but consumer prices down for the 42nd straight month. you have stimulus happening in new zealand trying to boost their economy. good whent looking so you look at machinery. what kickstarter the rally? doesdata, too strong, that mean we would see a rate hike? clearly, risk aversion once again in equities. today, noank decision

change expected, but we will start to see some service paid in the minutes they are worried about china. sanguineey has been about the chinese so far. lower, and concerns about the demand of oil. this report showing their likely to see demand not within expected for 2016 because of asia. let's have a look at some of the equity markets, some key names. we have a few numbers coming out, chief executive says only six months and a big turnaround still. five of the convenience stores floated yesterday. the 5 million pounds through the door. bad, we seeok

first-half profit down 35%. that was a miss. he says they will improve in the second half. morrison's is lower, but a different take, up two point percent. nordic, they said they said to have a good start to the year. germany always a little bit slow to wake up in the morning, but e.on is lucky to fall this morning. -- theerse of that plan good to bad split comes a little bit more merciful. back to you. jonathan: caroline hyde, thank you very much. down, erasing some recent gains. over in asia, shery ahn is standing by. japan didn't last that long.

shery: no, it didn't. it was the one of the biggest pieces of news today. china's producer prices fell by the most in six years. the shanghai composite down, analysts saying we are seeing some profit taking after the recent gains. the only index among major markets to rise after the korean yuan weekend for the first time in three days. it finished lower after we got employment data out of australia showing the economy added more jobs than expected. but it was all about the nikkei today. a historic rally we saw, all sectors -- but we have some disappointing data. machine orders falling below

expectations. stocks just taking a beating. we have rate cuts this morning by 25 basis points. kiwi dollar tumbling more than 2%, back to you. jonathan: great work, thank you very much. asia and china always in focus. thechinese premier said at world economic forum that the door will open wider. >> we will not be swayed by short-term market functions, but notably take them lightly. he will take preemptive measures, i leave the chinese government has the ability to give economic growth and i high to medium speed in the long run. spokean: the premier while deflation deep into the

worst in almost six years. he has beene, pouring over the numbers. did the premier map out a number -- a plan to go forward? nick: what you saw was more a reiteration of government principles. there has been a lot of uncertainty in recent weeks about what the government was up to after the devaluation of the yuan and the slew of bad data. this is sort of a steady hand on the tiller. they will balance long term reform with short term stimulus. the message today was one of reassurance the government puts very much in control, and knows what it is doing. obviously, we will have to see how things play out in the coming months. --it is anything like jonathan: we appear to love lost

nick. -- to have lost nick. let's bring in anna. anna, great to have you with us, when you look at the data, clearly they can do more to stimulate the export engine. when i look at brazil, will that the man hold up? been the goalver of chinese authorities to have growth of over 8%. they have been trying to change that quality of the gdp towards local consumption. a slowdown was in the cards. it is happening under their own circumstances. the local consumer is not there yet because of the overinvestment, rather than social services and welfare state. it was a huge slowdown in chinese exports. gdp is heavily relying on that.

this is happening, but not the way the policymakers wanted. what can they do? they invested heavily, they devalued the yuan, and will do it more aggressively. betweenmy correlation chinese equity markets and u.s. equity market is increasing. 0.3%, but now what is happening across the global market. jonathan: when i look at china, i look at the policymakers, i would question whether or not they can engineer a soft landing. some people would call it a bumpy landing. can we look at the shanghai composite, is that really the case? there is a big influx on those countries on exporting commodities. a slowdown in china has a huge impact on commodities.

how do we define that? or is thatp growth, a bumpy landing? the fundamentals should be there, and they should develop -- they cannot simply rely on the exports. if you look at that, it will not happen overnight. jonathan: the pivot point over the last couple years play shift from infrastructure to some domestic led consumption. when you look at the property market, it was a big driver of gdp. , then bottom out stabilize. that can be one way out of this mess. ana: not really at this point because the household is already in that. the level of debt increase hugely over the last couple of years. the question is how much more they can afford to borrow. it is not just a measure of creating the lending, but of the state. policy,er pension

better health care, but infrastructure for social services, that we need to see rising. jonathan: i look at that currency pair and think about what is going on to the bank of japan. now, i sit here and wonder what can they buy? and will it work? when you look at japan, du say forget all that and reach for the playbook. is that the play? ana: the dollar/yen is probably a clear winner because of the situation. maybe not in september, but at some point. clearly the kiwi has been falling over the last year. they can be comfortable to raise it like rates, although

emerging markets even worse. when it comes to japan, this shows that markets are very correlated. there fundamentals are complete different than the chinese. there seems to be, especially the third one to come to corporate governance. there come a long way to increase confidence. to short if i wanted china and i want that a proxy to do that and didn't want to get entangled in regulatory stuff in china, where do i do that? ana: i would be shorting the market in asia. they are heavily exposed to china, and also some latin american countries are very exposed to now. in gdp's were beaten over the last five years because of the slowdown in commodity market since 2011. now asian emerging markets are

not china anymore. jonathan: we will talk about those soon. new zealand's lowest interest rates for the third time in as many months. brazil's credit rating goes to junk. we take you to the moves. tim cook unveils a whichle products, one steve jobs once ridiculed. we find that a little bit later from the bank of england. good morning. ♪

jonathan: let's get you up to speed the bloomberg's top stories. the bank of japan should expand its qe programming. he says the banks october 30 policy meeting will be a good opportunity to do so. been firedg gun has on japan's biggest ipo the century. apple has unveiled a wide ranging lineup of new properties including updated iphones and a

bigger ipad. the chief executive officer tim cook showcased the problem -- products yesterday in san francisco. tv,ome back to bloomberg let's get you up to speed on markets this morning. equities going into the open, futures were lower. equity was down across the board. 1.2%.y 225 downei to 25 -- today. plenty of moves in the markets. remarks on the japanese lawmakers on the potential on what they should do. ahead of a decision later today, i will get you right now. new zealand cutting its interest rates for the third time in as

many months. the aussie dollar was strengthened by better jobs numbers. let's get to sydney. it was over a year ago that new zealand was raising rates, now they have cut three times. did they get it wrong? thing,sight is a good isn't it? wasar ago the central bank looking at dairy prices going through the roof and a construction sector that was looming and a bit of a housing bubble. since then, dairy prices are now down to 12 year lows. the central bank had to cut its growth rate by one percentage point. it is a completely different picture. they are unwinding those rate rises last year pretty quickly.

we have had three cuts in three months, and probably more to come. look at: when you history over the last couple of years, scandinavia and australia facing housing bubbles, new zealand got out front of it. when you think about the use of that, is that working? does that given the capacity to cut rates much lower? iain: not really. house prices are still going up. they get are up 20% on a year just staggering. they have strengthened that even further. out ony really is still whether that is working, or not. jonathan: to australia, a different picture for the aussies. the unemployment rate dropped back slightly. have we seen the week in the -- peak in the number of jobless

going forward? iain: there was some discussion that may be the jobless rate would go higher because of government changes. that did not happen. economist are saying maybe now we have seen the peak in the jobless rate. it will now hover around 6%, we have pretty healthy employment gains over the last month. more than three times what economists were expecting. part of the reason is because wage growth is so weak. that is helping employers keep staff. jonathan: thank you very much for joining us. meanwhile, it is back to junk for brazil. they lost their investment grade that they enjoyed for seven years.

the downgrade highlights the economic challenges facing the country, and many other emerging markets. here with moore's caroline hyde. ,aroline: you are cut back brazil currently faces negative. there can be more pressures coming. as i said, after seven years, returning to junk status. still at investment grade, but could this be an ongoing trajectory? challenges -- we know already the worst recession for brazil at the moment in 25 years. a quarter of a century. interestingly, they cite the government budget deficit one of the key reasons for this cut. brazil cut not once but twice. --y managed to downgrade first of all it surplus moving to a deficit.

they think it deficit will be north of 5% of gdp come to the 16. 2016. that engulfs even the president herself. this is what is happened to gdp in brazil, look at that slumped over the past couple of quarters. 30% versus thewn dollar, and how the markets reacted to these cuts in the debt rating. we are continuing to see borrowing costs in brazil rallying to a six-year high. , theredit default swaps protection against a brazilian debt, that insurance is continuing to get more costly. what can be done? where can we go? what needs to be fixed to end

this downward pressure? the finance minister has been under so much pressure, he's a technocrat. it really hit home when it came to austerity. popularity negative of the president, he is not able to get through to carry the government. we're seeing congress rebelling against austerity plan. no tax hikes, no cuts to spending. we just had opposition rebelling tripper potion -- rebelling to the proposition of tax increases. the rebels are approving antiauthority measures -- austerity measures. they're trying to create retirement eye out.

we are hearing from the corporate finance minister saying brazil will take legislative action to boost efficiency and productivity. but the drive to reform is going to take time. it will take -- be difficult to pass when you have such an unpopular president. jonathan: thank you very much. alwayso back to ana, surprises me will be talk about a slowdown in emerging markets. in brazil has been going on for several years now. they are in recession, the slowdown is happening right now. what is the future? : the commodities markets have been facing difficulties since 2011. now we have a situation of facing a stronger dollar and higher interest rates. many of those economies borrowed at cheaper rates and have completely different

evaluations. a great to growth story during the commodities bond, the program was quite promising. they really failed on the implementation side. clearly, a selloff in the commodities market was not very helpful. exposure to china is not that helpful. it is not quite the same, and in brazil it is a different story. this raises a big domestic credit story to be talked about in brazil. let me talk about china, or australia, let's talk about brazil, what kind of give it does brazil need to make? we have been talking but austerity measures in europe for a number of economies, that is

not transitioning to some of the commodity exporters. austerity is there in the cards. zealand, a message in the bottle for the federal reserve. raising interest rates not once, but twice. embarrassing, and it is also a message for the federal reserve. how much do you think the fed will be thinking about those instances? ana: this could be a great message for the credibility of the central bank. ,f you look at the u.s. economy unemployment rate of 5%, the size of the economy, and the fact that they already started -- markets have not been diversely affected. it cannot be helpful to the

current situation with a downgrade in the chinese economy stumbling. raising the rate will be great for the global economy. jonathan: the most surprising thing is what hasn't happened in the bond market, it is struggling to get a bid. we have been near 0.7% for the last couple of weeks. what is going on in the bond market? ana: investors are looking for a safe haven, it looks like investors still have a lot of confidence in the qe and the support of the central bank. ofyou look at who holds most the securities, they are central banks. in japan, the bank of japan holds one third of the local bonds. the ecb is increasing their own allocations. 50% of the bonds in germany, france, and spain. we don't hear investors looking for particular safe havens.

thank you very much for being with us this morning. what underthrew they buy? we talk about that. big day for apple yesterday. a range of new products, adapted iphones, a bigger ipad, and something steve jobs famously hated. >> a stylus, right? no. who wants a stylus? you have to get them, and put them away, nobody wants a stylus. jonathan: i will answer that question after the break. the only way to get better is to challenge yourself,

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perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. jonathan: welcome back to "on the move." down, the dax benchmark is also down lower this morning. switch of the board, so much action in the fx market in the last 24 hours. let's get it out for us. , euro-dollarcable almost flat. japanese lawmakers are tarting about doj action -- talking

about doj action. new zealand cuts rates for the third time in as many months. energy is the top theme today. eon one of the big losers today. german utility was trying to cut itself into good company. it is trying to settle off some of the bad element of energy in germany. china is starting to spin off conventional power. fits thew no longer nuclear element into the spinoff. they are reversing the november 2014 plan to get off the nuclear plants. the government cracks down and makes it much harder to do that. going forward, they will have to reverse that.

this sends the stocks that much lower, although some analysts say this should a lay any political concerns. morrison down as well on the back of four numbers. this is profit being down 35%. the are seeing second-quarter sales slumping more than expected. the new executive at the helm is trying to do an awful lot. all but five of the convenience they're shutting 11 more supermarkets. more job cuts to come, that is the market is talking about. meanwhile, on the bright side, next is up more than 2%. the reason? next profit up 7% that beat

analysts estimates. thank you very much. annual product launched in separatist go yesterday, investors weren't exactly blown away by the up, sending shares down 2% by the close. the world's biggest company unveiled updated iphones. the one that stood out was the apple pencil. former ceo steve jobs famously mocked the stylus back in 2007. steve jobs: a stylus, right? we're going to use a stylus, right? no. who wants a stylus? you lose them, you have to put them away, yuck. jonathan: a lot of people having a lot of fun with that video. nate joins us now.

the mc outs we take of the stylus. is that the shift? nate: it is one shift, certainly. won't find many graphic designers who don't sit at their desk without the keyboard but with a stylus or digital tablet. that is what the market i think apple was going after. we were talking about huge numbers of devices like libraries who needed styluses to use their devices. it's a completely different era, i can understand the irony in the conversation. jonathan: we will get to the negatives at the moment, but one of the positives, the big story that tim cook was pushing last quarter was the amount of people that still need to upgrade to

the iphone 6. but we saw last night was a revamp of the whole product line. what is a enough yesterday to get to me and others to upgrade? nate: in terms of the iphone, if you are using a six, possibly not. i think the challenge apple tends to have on the phone side is that they have this tic toc strategy in that you get a very large release with physical , which is the iphone 6, then you have the s year which is the same thing with incremental upgrades. i do think it represents a very new direction for apple. whatever they aren't reducing this year, it will be in the next model. as an upgrade from the current model, probably not. jonathan: two words, peak

capital. it gets thrown around a lot, when you look at the revamped, let's be flippant -- when you start drifting into collars, haslinda things are, have you lost her innervation -- colors, how slim things are, have you lost your innovation? nate: we see huge innovation inside. on the ecosystem side, the kind of things apple is grappling with. it is very difficult to make that really sing and dance at a two hour keynote. jonathan: final question, which talk about the significant of what apple was doing for other

companies. you touched on ecosystem, what do anything that you saw that will be tricky for the others? nate: the one that really stood out was microsoft. i found it very interesting that at a time when tim was talking about the iphone pro, they brought out this very microsoft surface like keyboard that attaches to the longer side of the ipad pro. it is something i thought was quite microsoft. the microsoft came out to talk about office and how you can use office and if a powerful way on the ipad pro. it really emphasizes the fact that the ipad pro is in that businesses, corporate users, people using productivity more than just consuming media. when you see the likes of microsoft on stage doing this, you think that is probably quite good for microsoft, moving them away from only using our things

approach. at the same time, it makes me think what about the surface? where does that stand? microsoft is very clearly supporting what apple is doing here. that, is follow-up on there a concession coming? is that where that is going? nate: i don't think so with apple. it is a combination of hardware and software that makes apple products what they are, that is but they stress. third-party support has become a huge part of their business and a massive reason why the iphone is successful. i don't think we are moving to a point where one without the other cannot succeed. jonathan: thank you very much for bringing that down. i am still here wondering who want a stylus, i wonder what

steve jobs for the thought about that. what do we learn from the greek tv debate last night? we get the news from business. we do that after the break.

jonathan: good morning, welcome back. let's get to bloomberg's top stories this morning. brazil's credit rating has been cut to junk.

brazil enjoys an investment grade rating above that for seven years, but it has been hit by worsening economic recession and instability. new zealand central-bank lowered interest rates for the third time in as many months. the governor says there is potential for further easing if needed. he is looking very carefully at data coming from china. an advisor to japanese prime minister says the bank of japan should expand the qe program. doj should increase that, that the banks policy meeting would be a good opportunity to do so. to bloomberg tv, let's get a check on the market. equity markets in the red this morning. by zero put 8%.

under 1% lower. over in greece, opposition lowers -- attacking imris last night -- alexis tsipras. >> i remind you the protest in european capitals that were exaggerations. these mistakes were corrected. nevertheless, we took the decision to put the interest of the greek people above the party interest. was a golden raspberry award for the economy, he would definitely be the winner. he turned surpluses into deficits and emptied out welfare funds. >> the government that i would form big government of cooperation.

in contrast to mr. tsipras, he doesn't want to even see me. i come as a speak of the parliament, i was able to put together opinions to discuss three parties with a multiparty parliament and get the guarantee that all together we can achieve the best. let's get the perspective from greek business now. ceo of theed by the interlock group. great to have you with us this morning. let's start by saying your overwhelming majority of revenue comes from outside of greece. this is a problem for you, when this kind of thing happens, you just don't discriminate. the first question, why list in greece at all? >> we have been listed in greece for a good number of years.

also for the better part of the history of this country. , mores the years go by problems than opportunities. for a truly international company, it is a valid question. jonathan: going forward, i'm sure which it would love is some political stability. what would you like to see company election. : you mention the right word -- a stability. the economy needs stability to start considering this part of the world again. for me, the most important ,hings at the half an agreement and since the two major political forces have no side,ence on the policy there is no political question coming out of this election. it is a matter of who is going to implement the memorandum in a more effective way. that is the question of those

elections. wantnies like interlock stability going forward. jonathan: what happened if you don't get it? one of the surprising things come we've had two or three occasions where i would get several guests giving me the on to when the greek but a to the euro. if we don't get that stability in the next 12 months, when are we at truly breaking point? antonios: out of those five years of constant changes and memorandums, the thing that we as a country have gained is that we have understood how it is to work with coalition governments. would be theuess new regime would be again a coalition government. you need the bigger part of the people agreeing to implement such changes.

i think the question of grexit has been answered. nobody wants a grexit, seriously. i think it will be a question of how quickly can we implement an agreement. the moment we start implementing the agreement, then we start being reliable towards our european partners, then we get a better deal. forward, you're just need political stability, but some growth. the bailout package will be difficult to see how that package delivers growth. what do you make of the bailout package? thenios: i don't think package as presented today will bring the growth. to have the growth, we have to recapitalize the banks. that is number one. this was not included in the package, but it needs to happen very fast. we need this as a development.

i think this will be the first step in the way of restarting the economy. i think we will see this bailout package changing form, and changing as we go forward. the first thing, we needed banking system that works. jonathan: on tour in london today, you are one of many companies when investors voiced their concerns about greece. what is the message you're trying to sell internationally? : it is very difficult to sell greece as a product right now, and i can understand the concerns. we have a different story, but this is a very small part of the greek economy. it is very difficult to say anything about the future of greece. you can be optimistic, and we are, you can said the things have changed, but there is no serious answer to the question

why greece now? the moment you start thinking about waiting another six months, your prolonging the problem. jonathan: let's say go back to athens a get the stability you want, you speak to a government official, but would you like to see happen? like is awhat i would banking system that is working, so that i can get the fuel back into the economy. then i would like to see the reforms. community, thes reforms have agreed on are very important going forward. we talked about a program that is very strict, we talked about austerity, if not done anything to resize the public sector. or to promote the private sector. this is something we need to start thinking about, this is a

country with more than 1.5 million people all coming from the private sector. we need to get those people back into their jobs. if we want to have success going forward. seconds, youe 20 get the overwhelming majority in greek banks of the moment? antonios: we never did. jonathan: thank you very much for joining us this morning. how will market volatility affect the u.k. debate? we find that out later. ♪

jonathan: welcome back. down by about 0.5% this morning. it was down almost 1% at the open. cable, wethe board, are unchanged on the day ahead of the decision. almost everyone expects them to leave the key interest rate unchanged today. theet some insight into central banks thinking within minutes. we're joined by richard jones, and manus cranny. mr. jones, last month we talked

and howper thursday, close the bank of england was to hiking interest rates. he said now is the time to go. help the things have changed. thursday,ent to super we all know what this been happening outside the u.k.. there are a lot of international concerns, but if we look at the domestic data we had a bit of a soft patch on super thursday. the manufacturing data was week, but the services, the competent pmi, even the retail numbers we've seen from the british retail sources show the prices and sales are down. it is a murkier picture than where we were four weeks ago. jonathan: morgan stanley out with a note, the potential that the bank of england put handout

for a rate cut. where are we? richard: when we were sitting here before, we were oscillating between may and august of 2016 as left off. since then, it is august and 2016.er of 2060. -- it's deferred quite a bit further than where we were this time last month. polls will be a big part of the program. manus: it is interesting that is so far from where mark carney has been trying to guide us. but events overtake you. who would have thought that china would have brought us to talking about the risk of a global recession? the premier of china this morning just they don't worry

everybody, i think very vague toolbox -- big toolbox. mark gilbert has a free chance on the pulse, we have and might make it to the end of the week. guests.have a couple of we believe a chat the vice-chairman of the airlines taking off. we have some updates from greece. all of the rest of your fund -- how to make money. jonathan: gentlemen, we do have to go. thank you for joining us. so much has happened in the last four hours, rates cut over in

new zealand for the third time in as many months. brazil got a cut of their own, a credit cut to junk. the minutes will be interesting. ♪

the chinese premier of lichens managing his economy to a chess game. brics crumble. standard & poor's cut herself's credit rating to junk as latin america's largest economy faces tss deep it recession i deepest recession. share priceple's dropped 17% since january. welcome to "the pulse"