manus: welcome to "on the move." we are counting down to the european open. i'm manus cranny alongside caroline hyde in berlin. caroline, good morning. asian stocks soar. european markets higher after a strong jobs report aegis concerns. the japanese prime minister promises broader, boulder economic measures after a decisive victory in the upper

house election. and osborne hits wall street. the u.k. chancellor heads to new york, aimed at shoring up confidence in the u.k. as economists think the bank of england governor could act as soon as this week. caroline is in berlin. this is "on the move." not "countdown." i'm catching up with myself. it is too much for me. futures up in london. harris indicated up 1.7%. this is a brisk march higher in the markets. what you saw there was a nice, strong reading. the world is asking itself, where are we? london, paris, frankfurt, the next indicated stronger as well. we have stronger market.

citigroup are bullish on commodities for 2017. caroline? caroline: that march higher in futures being brought over from asian trading. we have seen significant gains on the msci asia-pacific. it has been a cracker of a day in japan. prime minister abe's ruling coalition winning the upper house election. earlier today, talking about old economic measures he wants to put in place. the yen underperforming as we expect more stimulus. 1.3%, what a move. 1.9% gain last week. really managing to erase a lot of those gains cheering and gold on the downside. casting as the yen, casting aside gold, brent crude continues to fall lower as we see a buildup of those rigs being turned back on.

now let's get out to the bloomberg first word news with david ingles. ministerpanese prime shinzo abe's conservative coalition has scored a convincing upper house election win. japanese shares jumped 4% after abe repeated his pledge for action, saying he wants the swift formulation of comprehensive, bold economic measures. u.k. chancellor george osborne heads to wall street today to shore of investor confidence. he's embarking on a shuttle tour of the u.s. he comes to china and singapore to urge financiers to come to the u.k. says she firmly expects the next uk prime minister will honor the brexit vote. president obama has echoed that very sentiment. >> i think we have to assume

that a referendum having been passed with a lot of attention, a lengthy campaign, and relatively high participation rates is going to stick. david: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. caroline: thank you very much indeed. one of the biggest events of the year for the aviation industry and my coanchor, guy johnson is there. how is brexit actually impacting the industry? they must all be discussing it. guy: politics is going to be front and center. we just had the brexit vote. the industry is learning to deal with that. what will it mean for north atlantic travel? will there be less demand for air?

what will the drop in sterling mean? airbus make swings in wales. what effect will the sterling story have for them? rolls-royce make jet engines here as well. then you've got what is coming up in november as well. what would a trump presidency for the north american producers? boeing is having trouble getting its iran deal through the house. could there be more of that problem affecting these north american producers? politics absolutely front and center and will continue to dominate this industry for quite some time. the low rate environment is the story as well as the low oil price. probably not going to see the deals, but plenty of great stories coming out of this show. manus: you are going to be there, telling those stories. who are the guests? who is going to break news?

what is going to drive the agenda for you down there? guy: the read across from some of the stories we've been talking about will be where those stories come from. we're going to be talking to the boeings over at rolling, celebrating 100 years. what does the history tell us about what happens in the future? we are going to be talking to airbus as well. what is the future for that wing production in wales now that the u.k. has decided to leave the eu? we're going to talk to ge about their jet engines. we will get the story about north america. we're going to be talking to qatar air. they've got a 50% stake in iag. is he going to increase that stake? we will find out this afternoon. some really great guests coming up.

going to try to break news for you. it is going to be a really interesting show. manus: guy, thank you very much. i think you summed it up beautifully. sterling, proverbially under pressure. i was going to say on its knees. have a great air show. guy johnson, anchor of "on the move," joining me along with caroline in berlin. senior adviser at credit suisse, bob parker, i think the last statement said it all. starving under pressure, what does that do for the great british plc? is the pound going to continue to be under pressure? the ceo of aberdeen asset management said to me, this is not 2007. wrap it all up for me. martin is right in saying it is not 2007 in the sense that

we don't have major systemic risk in the u.k. in the banking system. i think you've had some very strong and correct statements from the bank of england, saying they will inject liquidity into the system if necessary. we don't have been thinking problem in the u.k. that we had 2007. on sterling and foreign investment in the u.k., i think there are a number of issues. let's take airbus. we all know that when you fly an airbus, the wings are made in north wales. with sterling down below 1.30 and i assume it is going to stay below 1.30, the cost of production for airbus, a euro company, is significantly cheaper. but if i'm the chief executive, the last thing i want to do is manufacture wings in north wales, transport my wings to bolt on to the fuselage, and pay

a 10% tariff on the transport of those wings. if you are entering a period where the u.k. loses access to the free market and applies wto rules which would imply tariffs, then you've got a problem. caroline: worries about tariffs. also give me a sense about airbus, a european company. what about the contagion effect? well that the impacting european companies going forward? bob: i think the answer is the contagion effect from brexit he's real for europe. i very much doubt that contagion is going to impact other economies such as the states or emerging markets. one of the themes is the outperformance of emerging markets versus developed markets both in fixed income and equity. the reason is because you don't have that contagion effect.

coming back to the u.k. in europe, what the u.k. has been very successful at over the last few years has been the financial services are. if the financial services sector , that hast a passport consequences for growth and financial services in london. the u.k. has been very successful at attracting foreign investment. if brexit means a slowdown in foreign investment for some reversal in foreign investment, that has negative implications for sterling. that is why, with the current account deficit, that dependency on foreign investment, i would be very surprised if we get a bounce in sterling. manus: you are one of the first who says, i struggle to see sterling really aggressively bouncing back. lots of people have talked about recession. me, we are not

likely to see a recession in the united kingdom. do you think we're going to see a recession, and you've got a collapsing gilt yields. the gilt market is priced for recession, but not christ for more quantitative easing. do we get a red con on thursday? is there more qe on the way? bob: we have got very low bond yields everywhere, not just the gilt market. 10-year treasuries below 1.4%. this raft of negative yield in the eurozone. you've got an interesting question at the moment. many people saying the bond markets are pricing for very low growth or recession. our house forecaster at credit suisse, we revised the down. that is no recession, but it is

a sustained people a very mediocre growth. in response to your question, i think the bank of england will ease monetary policy. i don't think the u.k. goes into recession, but i do think it goes into sustained low mediocre growth. the week pound will put a break on foreign disinvestment, whether it leads to foreign investment is another matter, but it puts a break on disinvestment. the other factor is easier monetary policy. look at the statements from the government. fiscal policy is not going to the tight. -- going to be tightened. manus: after he's collected his air miles, i wonder if he's flying british airways or virgin. anding about george osborne his original austerity budget that he suggested we might have. stay with us.

up next, no more brexit backdoor. german chancellor angela merkel says she expects article 50 to be filed once britain has a new prime minister. we will talk about the implications. this is bloomberg. ♪

manus: "on the move," welcome.

i'm manus cranny. david ingles is with us. good day. david: let's get started with these comments from the ceo of aberdeen asset management. in the wake of the brexit vote, says there is huge interest in british real estate. martin gilbert says that the weak pound is spurring demand. >> 2007 and 2008 was a liquidity-driven crisis. there was no liquidity in the market. the world is awash with liquidity at the moment. we are seeing a huge institutional interest in u.k. property. i don't want to sound too cynical here, but the retail investor and the institutional investor coming in, taking advantage of the weak currency and lower prices. shares of nintendo have

soared again after the success of the pokemon go smartphone app. users trackich lets down virtual monsters in their vicinity, has topped the free to download charts for apple since its release back on july 7. standard chartered has started its first business in japan with about 100 employees, 20 of which will sell emerging-market products with the potential for fast growth, brokerages, banks, and asset managers. the move comes as ceo bill winters cuts cost and tries to turn around the london-based bank which last year posted its first loss since 1989. that is your bloomberg business flash. caroline: thank you very much indeed. german chancellor angela merkel has said she expects the next uk

prime minister to honor the brexit referendum and start talks on leaving the bloc. she said she firmly expects article 50 to be filed once britain has a new prime minister. we are joined by the chair of finance ministries economic advisory committee. thank you very much for joining us. we are anticipating article 50 to be invoked. how will that affect the u.k. going forward? you've been speaking about the need for reform. are you expecting eu to be improved by brexit worsened? >> there's political instability in the u.k. about how the leadership, what the leadership will be, but there's also a lot of instability and uncertainty about what the european stance is. the bargaining powers will have changed. losing britain as an important voice in all these negotiations will be a change.

course, there's a lot of interest in germany and other european countries to renegotiate a new deal, a new association with the u.k. after all, trade he's a win-win, and it is in the german and european interest to find a good agreement. the way until this is reached will be quite difficult politically. it is hard to make promises or predictions when all these things will be settled. caroline: how will angela merkel have to change her stance? how will germany have to change its stance? we've got spain and portugal potentially going to be fined or some sort of slap on the wrist when the brussels meeting kicks off today. ofl there be more relaxation these rules, or will it get tougher? 3 -- >> that is a good question.

i hope that the rules that have once been signed will be kept and that european leaders will learn the lesson from the past that it is important to negotiate on good rooms, and once rules are implemented, trying to do the best they can to fulfill these rules. there are lots of signs that still bargaining is so important. i guess bargaining is something where you lose your ability. i think it is important to stick to the rules in the future more than in the past. bob: this is bob parker in london. i would be interested in your views about what action needs to be taken on boosting eurozone growth. if you look at the imf projections last week, they've downgraded the growth outlook for 2017 to a number which all of us would regard as a fairly

mediocre level of growth. in germany, we've got a near budget surplus, low unemployment. you wouldn't make that statement about most eurozone members. i'm interested in your thoughts on what action needs to be taken and what action probably will be taken. i think all of us agreed that eurozone growth is mediocre. >> to talk about european growth, it is important to think about other sources of low growth. we are still after a huge financial basis in europe. -- financial crisis in europe. many countries are trying to clear up things and that is an important process to get growth coming up quicker. it is important to do all of this clearing up quite fast. a lot of countries in europe are still quite laggard in terms of these were arms that are -- these reforms that are required.

i guess that is one of the explanations for poor growth in europe. caroline: thank you for getting off the plane from nuremberg to visit us in berlin. the germanr of finance ministry economic advisors committee. making the views known of where germany acts next and where we've seen portugal and spain. we are minutes away from the open, manus. we will look at the potential corporate movers, including the far shall some as it sells its indian unit for more than $1 billion. this is bloomberg.

caroline: welcome back to "on the move." minutes away from the open, a beautiful day in berlin. about 1.2%.e ftse citigroup going long on commodities, saying, look for them to rally in the next half of the year and just year. lafarge, a bit of acquisition here. they are selling off the india unit to be drawing in $1.4 billion in terms of enterprise value. they are selling it to an indian company. three cement plants and two grinding stations. look out for lafarge.

coming up, the market open. futures signaling a strong day on the get go after a rally for asian stocks. all eyes on the miners as we head toward the open. ftse 100 called up 0.5%. ♪

manus: good morning. this is "on the move." i'm manus cranny, here here in the city of london. i'm right alongside caroline hyde, who is in berlin. caroline has your morning brief. caroline: i do indeed, manus. on.relief rally i s a strong jobs report eases concerns about the world's strongest economy. the japanese prime minister promises bold economic measures after a decisive victory in the upper house election. and osborne hits wall street.

the gensler goes to new york, shoring up confidence in the post brexit economy. let's check out the markets. you have got european equity markets rising. london and paris and frankfurt, all marching higher. there is a definite shift here. we have a movement in the dollar -yen. for me, this is where the shift is emanating from. falling and the dollar is rallying. 328.toxx 600, we also have this commodity note coming from citi, they are bullish are commodities for

2017. u.s. and china growth will lift demand into the next year. nejra is going to break these markets down for us, go under the hood. nejra: speaking of commodities, manus, it is materials leading the gains on the stoxx 600, up .9%. and financials are up, .8%. but it is green across the board and you can see this on the imap in asia, too. let's take a look at the u.k. 10 year yield, we always check this as the gilt market open. it looks like we are down five basis points, coming in at 73 basis points on that u.k. 10 year. let's check on these stocks we are watching this morning. i wanted to start with

astrazeneca because what we heard from the sunday times over the weekend is they are considering tabling a last-minute bid for medivation. gaine seeing astrazeneca ever so slightly. lcim has lafargeho agreed to sell an indian materials business for $1.4 million. this come as the world's biggest cement company is trying to pair down debt. and finally, rpc was called higher by 4% to 5% by analysts. in the first quarter, it was significantly higher than last year in terms of group revenue. though, we can see that movement in the open as well. caroline: deutsche bank is pushing ahead with plans to become one of the world's top five wealth managers.

that is as the business outlook for european banks worsens because of the brexit vote and the italian big crisis. -- and the italian bank crisis. how can the company lift returns? i want to get back to the banking story with the senior adviser at credit suisse, bob parker. on my screen, i have the rankings from the stoxx 600. not one bank is falling. in fact, every single bank is rallying at the moment. it used to be the peripheral lenders on the high side, but not one is in the red. >> i think the first point to make is if you look at most european banks, particularly relative to american banks, price to book ratios are exceptionally cheap, europe

versus the states. and also, european price to book ratios relative to the historical values. that means the european banking sector has now reached a point where it is sensitive to go od news and less sensitive to bad news. so, i think the valuation here is providing support for the banking sector. obviously, i think there are a number of themes in the banking sector, particularly with italy. we will have to see what happens with the restructuring of the italian banks. the nonperforming loans are woth rth some are close to 400 billion euros. i assume there will be an agreement between rome and brussels. i would be very surprised if there is a breakdown between rome and brussels. he is in a very different

position than where he was when the irish had to go and ask for a bailout. >> for the spanish, for that matter. -- or the spanish, for that matter. manus: this shows the return to date. credit suisse is down 15%, but it is the italians that are demolished. i mean, this just makes everything else look like a walk in the park, in terms of bailouts for banks. if that is the number, bob, then, how concerned are you that this demolishes the italian growth story? >> well, if we look a italian growth over the last 15 years, there has been no growth. and there are many reasons why it's realtaly has been a no groh economy. now, if you compare the italian

banking sector with ireland or spain, where there was very successful restructuring in what was a very problematic banking sector in both countries in 2008 and 2009, as well as with the united states, those countries, which move very fast to restructure their banking industries, that has resulted in renewed bank lending and renewed growth. even with the impact of brexit, ireland will grow at about 4% this year and spain will grow at 2.5%. italy, in contrast, will struggle to get 1% growth. that correlation between the speed with which you restructure it your banking industry and your growth outlook is nearly perfect in correlation. italy has been remarkably low in dealing with this problem. kitties banking consolidation.

yo-- it needs banking consolidation. and it needs to reboot bank lending. otherwise, the economy will remain stagnant. manus: you have just completed a report with your hat on, in terms of international capital markets, on liquidity. martin gilbert said 2007 to thousand eight was not liquidity to grab. >> i think it is very complex. if we look at company liquidity, it is at a near record level. one of the reasons why we have got low growth is because companies are sitting on too much cash. likewise, consumer liquidity is very high. consumers are sitting on high savings levels and they are not investing, and their risk appetite is slow. yes, volumes are low with marco -- yes, volumes are

low with market liquidity. the first problem is liquidity in fixed income markets. that is where the international capital markets association updated its report on corporate bond market liquidity. and there, there is a significant problem because of the reduction in investment bank market making and inventory positions. the second problem is obviously, the problem where you have liquid assets in the funds, such as real estate, where asset managers are providing liquidity to investors. now, you have a structural problem and you will always have a structural problem when you are investing in long-term ili quid assets. that is very dysfunctional. anna: a dysfunctional element and a tricky dysfunctional

issue. will we see more consolidation, not only in italy and spain, but here in germany? >> i think the answer inevitably, is yes. compare what is happening in spain with what has not happened in italy, and to a certain extent, what has not happened in germany. if you look at the spanish local banking sector in 2007, they were over 40 local savings banks. they are now less than five. so, you have seen a major spanishation in the ban banking sector. and the spanish authorities should begin at full credit for that aggressive restructuring of the banking sector. in germany, the regional banks, they are still far too many. likewise in italy with these local savings banks. that is where a lot of these nonperforming loans are hidden

within the italian banking system. manus: i think you have just summed it up beautifully. the reality of it is, every country that has got their banking -- i will not even make the statements subjectively that the u.k.'s banking system is in order. andiamo! andiamo! andiamo! that andy go as far as bottle."nother abe's stimulus plan, it takes shap. and we go to tokyo. this is bloomberg. ♪

caroline: welcome back to "on the move." green across the screen. we can see a rally in every single sector on the stoxx 600. the miners are leading the charge this morning, but the dax is outperforming, up 1.4% in germany. , bute, obviously dismal a jubilant on the stock market. first let's get to the bloomberg first word news. david: let's get started with

the u.k. chancellor george osborne. he is going to wall street today, aminiming to shore up confidence in britain's market. this is a bid to persuade people to stick with the u.k. of aberdeen asset funds int, which froze the wake of the brexit vote, says there is huge interest. martin gilbert said the weak pound is spurring demand. 2008 was a liquidityigh driven prices. with the depreciation of the pound, we can see a huge stimulus in u.k. property. i don't want to sound to cynical

investor the retail from abroad coming in, and taking advantage of the weak currency and lower prices. david: and shares of nintendo have soared again after the success of its pokemon go smartphone game. $7 million has been added to the market value since the game 's launch last week. the game has topped the charts oth the u.s. ands australia since its release. global news 24 hours a day, powered by 2600 journalists in more than 120 countries around the world. manus? manus: japan's prime minister has promised swfiift and old economic measures after winning an election. we are now joined from tokyo.

so, the win put the wind in his sails. what are we getting ready for? stimulus me up? >> that is right. he said he wants to do bold stimulus measures. when prime minister abe decided to announce he was postponing the sales tax increase back on june 1 he said, they will be brought, bold economic measures in the fall. now, with this upper house election, this gives him a mandate to do more. over, -- however, with the 2/3 win he could begin the process of reviving the institution. we do not know yet what he will economy, but tomorrow we are supposed to get more details. caroline: and there have been some numbers potentially about advisors. 23 million yen is what people

are looking at, in terms of the stimulus. talk to us about the challenges awaiting abenomics. >> there has been a lot of stimulus already in the economy. the number you mentioned is what one of his advisers thinks could be needed for stimulus. it is a big number, but so much has been tried and the economy is very weak after more than three years of abenomics. we still have very slow consumer spending, almost flat wage growth in an economy that keeps shifting between like to growth and contraction. since the beginning of the year with the stronger yen, that has also weighed on exporters and their outlook for the future. economy and it is unclear even with a lot of money being pushed through the economy in stimulus, how that might

affect actual economic growth here in japan. there are some thinking, one of the notes that came out today said that perhaps, with more fiscal spending that will ease somewhat the pressure on the bank of japan to do more monetary stimulus. they of course, meet later this month and there is a lot of thinking that they will ease further. manus: jodi, thank you very much. let's get over to caroline. she has a little bit of breaking news on airbus. caroline: interesting stuff coming from airbus. a near $12 billion deeal is being announced. billion to be precise. that seems to be going to air asia, a low-cost carrier. they have been trying to get these more fuel-efficient planes coming from airbus.

we will be getting much more on all of those deals coming from guy johnson a little bit later, but we are going today can into japan a little bit more now. manus: we will talk to bob barker, our senior advisor at credit suisse. looking into the japanese situation, i laughed almost when "yayy!", my question to you is, is he correct to be focusing on infrastructure spending? is that the answer? because, let's face it. we have tried abenomics, we had tried a structural change, and it has not necessarily worked. it has not delivered inflation and it has not delivered growth. will this dollar-yen move further? >> we have a number of problems in japan. the strength of the yen risks

deflation, and that has a negative impact on consumer spending. we have consumers sitting on significant levels of cash. because of the demographics in japan, i would argue that when you have an aging population, negative interest rates discourage consumptis consumption. wheels love company sitting on record levels of liquidity. they are not investing. -- we also have companies sitting on record levels of liquidity. they are not investing. we have the bank of japan as the biggest buyers and owners of jgb's now. coming back to your question, will infrastructure spending try to reboot the economy?

i think infrastructure needs a raft of measures. infrastructure on its own will not solve the problem. the reason there is a lot of focus on restructuring is because the economic multiplier from infrastructure is more powerful than other aspects of spending. spending is ature very powerful way to reboot your economy. now in the case of japan, will that multiplier the powerful? does jpaapan need more high sped trains? does it need more motorways? we remember the old adage of building motorways to nowhere. in japan has motorways leading to some of the islands were nobody wants to go. you have to be very careful with infrastructure spending. caroline: many fascinating points, being made.

we will see if we see the stimulus being directed in the right direction this time. bob parker, staying with us. up next, it is time for our chart of the hour. it is all about china's expanding service sector. this is bloomberg. ♪

caroline: welcome back to "on the move." now, let's get to your chart of the hour.

nejra, talking china. nejra: of course, we have that better than expected inflation data, showing we get gdp from the world's second-biggest economy this week. i thought it would be interesting to look at how this rebalancing is going. the chart shows the majority of china's gdp comes from services and that gap is widening. services accounted for a record high 54% of economic outlook, that is the blue line, compared with 40% of the manufacturing industries. to that quarter from january march, it did include the annual new year festival, when factories close and hundreds of millions of people travel. so, you would assume that services would account for a little more during that quarter. manus: thank you, nejra.

let's bring back and bob parker. the yuan has had a fairly tortured run. the japanese seem much less concerned about the yuan's devaluation. our forecast for the end -- forecast for the end of september was that the renminbi would be against the u.s. dollar. i think the way the people's bank of china have managed the devaluation of the renminbi over the last month has been much more controlled than what we saw last august, and also back in january. we saw significant capital outflows from china, and a jump in the volatility of the renminbi. i think we will settle down for the rest of the third quarter,

between 6.7 and 6.8. you.: bob barker,, thank theext, we are live at farnborough airshow. ♪

caroline: welcome back to "on the move." 30 minutes into the trading day. green across the screen. every industry group is pushing higher on the stoxx 600. it is really the miners leading the charge. by .7%. 100 up keep an eye on the italian and spanish lenders today. we got some of the individual stocks to dig into. nejra has the three top ones for you. nejra: thank, caroline. my him starting with one of the biggest gainers on the stoxx 600

today. roup finance g ministers meeting in brussels to discuss the italian banks. this is following a rally on friday after the company said on july 7 that it was working intently with authority to quickly resolve its bad loan burden. italy is in talks with the european commission on a plan to recapitalize montepaschi. that is gaining. irupp.aining, thyssenk there is a possible joint venture in europe. this is after reviewing vids obs the u.k. as a charter had been planning to sale. gaining onkrupp that. and one of the worst performance today is rolls-royce. it has agreed to purchase the

stake it does not already owe for 720 million euros. this is to strengthen his position i -- this is to strengthen its position in the service market. caroline: thank you. the finance minister from france is talking about the italian banking deal we're looking to see in the new few days. the eu needs to show "solidarity." the bank aid rules need to be applied with flexibility. all of this as italy is looking for a way to potentially bail out. ail in.to see a b germany in particular wants private investors to take the pain, rather than the taxpayer. now, we have to get back to the farnborough airshow.

my cohost as usual, guy johnson, joins us there. you have got a great guest. guy: we certainly do. john harrison, the ceo of raytheon international. are any of the 2000 jobs in the u.k. at risk? >> absolutely not. we have been here for 100 years and the work is still very good. anlook at it as opportunity. guy: sterling is falling pretty fast. you have had a business here for quite some time. any opportunity you might look to add? our: the key is to focus on customers, where they are going, what their needs are, and what gaps we have. guy: when we think about ou look at it as

an isolated event, or a trend that is navigating the world right now? >> we have been here in the u.k. for a better part of 100 years and we intend to be here for the next 100 years. there are always going to be challenges and opportunities. the brexit is another opportunity. we actually do not see any immediate impact as a result of the brexit. guy: looking more broadly around the world, what do you see in terms of the trends that could shake your business? it was interesting listening to the leaders of the warsaw summit last week. do you see defense spending going up? where do you see opportunities outside of the civil side of the business? john: we see growth opportunities. we just signed a letter of intent with the polish industry there to coproduce and codevelop

the next generation there. poland has the opportunity to be the 14th nation to have the fully integrated missile-defense. we see opportunities in integrated missile-defense, cyber, here in the u.k., the middle east, as well as the parties. guy: is there concern about russia? about isis? what do you see as the most important trends going forward? >> our most important trend is to understand where our customers are going. the customers are looking for capabilities in our markets. they want to be able to be protected against ballistic missiles, or air raids. they want the ability to effectively and meaningfully prosecute targets with a position guided ammunition.

guy: how many of your customers are asking you about what this could mean for your business? well, has talked about it. are they asking you, what is going to happen after that? customers, on our our customers and the relationship we have to our customers. we spend a lot of time talking, talking about the marketplace, talking about the government. we continue to build that relationship. guy: but you think politics will be playing a bigger role in what that conversation looks like? over the last few years, politics has become more and more central to every business, every ceo. guy: i would tell you -- >> i would tell you, guy, the one thing that is comes to his

politics has played a strong part in what goes on. the important thing for us is to not work the policy related issues, to understand where our customers are going, what they care about, and to bring the right solutions to the table. our priority is to give them integrated solutions, like what we are featuring here at the farnborough airshow. we have a cyber demonstration. again, which is a key component of our capabilities, as well as featuring our ballistic missile defense systems, as well as the guided ammunition. that is what our customers are looking for and our job is to be the trusted resource to bring innovative solutions to them to fundamentally, help make the world a better place. our job is to grow and this is a growth story. guy: where is the growth going to be geographically around the

world? john: we see growth in al all ol the markets that we are in. we see growth in europe. we see growth opportunities in the middle east, force protection, cyber. and the same holds turue in the far east. korea, they have just signed for precision munitions, as well as integrated air and missile defense. guy: john harris, ceo of raytheon international. thank you. back to you. caroline: guy, a fantastic interview. looking at the u.k. asset classes the moment. .3% on then by 20% o pound.

interesting, one of the worst performers on the day on the major currencies. this is your world currency ranker. thoughnd is up by .3%, it is a story of the japanese yen today. up next, drifting along at an unspectacular pace. what is holding back global economic growth. this is bloomberg. ♪

manus: it is "on the move." it is 8:41 here in london. go to gmm if you want a complete breakdown of the market currencies. the lower pound could of course, help with u.k. assets. this is what i wanted to show you, the gmm. we are looking at the yen, down by 1.4%. copper is up by 1%. crude is down. there is a real diversity of complexion of what is going on here this morning. you have got the pound under pressure, continued pressure, as osborne takes a trip to the united states of america. the reality is, markets are trying to decide whether this move in the yen is enough to move the markets. let's go out to david i nglis.

david: one of the best performers here in asia, nintendo, soaring 25% after the success of its pokemon go smartphone game. the company has added $7 billion in market value. the game lets users track down virtual monsters in their facility. it has topped the free download charts since its release. airbus is said to be close to announcing deals close to $25 billion. we are talking a price of $12.6 billion as early as tomorrow. inbus is said to be discussion with both airlines. they declined to comment.

and stanchart has a started its first brokerage business in japan. employees will be selling emerging-market shares. the ceo comes even as cut costs. their first loss since 1989. that is your bloomberg business flash. caroline: now, sluggish global growth has changed the probability of a fed rate hike. some of us still believe it could happen at least once, if not twice this year. speaking exclusively to bloomberg, the ceo of aberdeen asset management told us that he believes these could help more than hinder. >> i do believe we will see a

rate hike later this year. the fed are in a difficult position. if they don't put them up, people worry. and if they put them up, people worry. it is a lesser of two evils to have marginal rate increases in the u.s. caroline: as the probability of rate hikes changes, the global economy has managed to just stay afloat. the world has skirted a number of catastrophes and the forecast is more of the same for the coming year. let's get more from hong kong. why the global growth slowdown story? what are the main country bidding factors? is it all about brexit? >> good morning, caroline. it is not all about brexit yet, but i think that could become a bigger feature as time goes by. there is a growing sense of disappointment that even after so much policy stimulus from the central banks and from some

governments, that policies are struggling to gain traction. in the u.s., which is a relative shining light, it has been one of the weakest since the second world war. there is a sense of disappointment around the world. economists are also tearing up their old text books and trying to figure out, what is the new growth model? we have no sign of coming out of this anytime since. is asia fairing in all of this? much greater mind than mine, manus.

i think asia is a strong region. but even here though, there is a sense of a new reality dawning. exports are falling, commodity prices are falling, china's economy is slowing. we really have to look at japan. we had a big election victory for abe over the weekend. and of course, he is coming out and talking about ye tmort mored stimulus measures and of course he is because what else is there for japan to do? there is little sign of the cycle easing anytime since. manus: thank you very much with the latest on the great debate regarding policy response and a slow growth environment. let's turn our attention to the middle east.

made,lion in bonds were setting a precedent for other gulf nations planning their own bond sales. .racey joins us from abu dhabi there was this rush to issue before ramadan. these countries, these sovereigns, want to make your they get their deals done. but what is the back story to these fee rises? >> sure, well, as you have rightly pointed out, there was a rush to issue bonds over the last few weeks and months. we have seen a number of gulf countries come to the market. cac sold $9 billion worth of bonds, and attracted $23 billion worth of orders. paid 21ar actually basis points on that $9 billion bond deal, equating to $19

million between the 10 banks it hired for the bond sale. that is much more than the six basis points or so it paid for its last bond deal five years ago. when you have this deluge of bond issuance, you have to make sure he gets sold to a wide variety of investors. and qatar certainly paid for that wide network of banking investors. caroline: at last, some of music to the bankers' ears. there are some freezes coming from the bond sales. will we have other middle eastern countries coming to the market? >> sure. i think the thing to remember is it is a 21 basis point spread amongst 10 banks. yes, the percentage fee on the

whole looks pricey. it is triple the amount qatar paid the last time around. manus: we seem to have lost our connection there with abu dhabi . tracey is telling us about the latest in terms of the fees being paid. up next, mark carney anders the third week of trying to respond to brexit. -- up next, mark carney enters the third week of trying to respond to brexit. a slim majority of economists easing.orecasted further this is bloomberg. ♪

caroline: welcome back to "on the move," 52 minutes into your trading day. later today of course, eurozone finance ministers our meeting in brussels. tomorrow, they are joined by the rest of their eu counterparts. and then on wednesday, harker speaks. and on thursday, we will see the first monetary policy decision. and let's return to the all-important bank of england governor mark carney facing lawmakers tomorrow in his third week managing britain's response to the economic shock of the

brexit. we are joined now by bloomberg first word strategist richard jones. richard, it is so great to get tor take, looking forward what could be employed by the bank of england. a rate cut and more stimulus as well? >> the sterling market, which closely tracks the bank rates, is tracking a three in f our probability. you can't help but think, given the 10 year gilt yield right now, there is an expectation in the coming months that we get more qe from the bank of england. manus: bob parker joins us this morning. doubts said is that he the ability of cable to get back above $1.30. you think monday, tuesday,

and wednesday is the build up? the build up to a potential 25 basis point cut on thursday? >> speaking to bob's point specifically, we have seen cable struggle above $1.30. we were there at least two or three times last week and it really did not like being above $1.30. from that standpoint, it is telling us something. the fact that thursday is not fully priced, but is widely expected, that means that if we do get a sell off on thursday, i think it is going to have to get below $1.28 to have a meaningful downside. butwe might get a squeeze, it seems to me right now that sterling is efficiently priced. caroline: is it all about fx? is that where we are going to see bond purchases and the rate

cuts? >> on june 30 when he gave his press conference, he did speak specifically about fx and the need to ease policy further. that is what is driving those expectations. of course, we have the ftc as well. we know what they did last week when they cut the countercyclical buffers. i think it is part of a broader package that might actually include some fiscal loosening as well. manus: richard, always great to get your input. let's see how carney does on thursday. it could be the beginning of a whole new cycle in the u.k. we are priced for a recession, but not for quantitative easing. caroline, in berlin. i'm in london. guy is at the farnborough airshow. paris and frankfurt are also rallying. th iis is bloomberg.

"the pulse" is coming up next with francine lacqua. stay with us for all the breaking news throughout the day. ♪ .

>> the market to bounces. markets rally. outlook.lobal optimism in japan. george osborne heads to wall street in an effort to boost conference. can osborne and carney sue that the markets? of geak to the ceo aviation not at the air show. ♪