bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. anchor: welcome to "on the move." i am guy johnson alongside caroline hyde. americanism, not globalism. trump calls for isolation. and jobs first. he says he alone can fix the system. can he convince the american people? brexit backlash. mark carney says the global

system has been resilient, but what does this think? we break down the latest earnings to find out. and ready, willing, and able. recommit's, draghi but stops short of action. what is the next step for the ecb? caroline: less than half an hour to the european opening. more money coming off the table. asia down more than a percentage point. coming off from lows on the ftse 100 futures. clearly, risk aversion coming from japan. on hold for now. talk about the currency markets. a lot going on in terms of the story. euro dollar falling the -- following the draghi inaction.

all these figures in play today. 132 .51. dollar yen, 105. 96. oomberg the blu first world news. haslinda: donald has officially become the republican candidate. he cast himself as the outsider who can repair a nation teetering on disaster. he reinforced his campaign themes welker criticizing his democratic rivals. mr. trump: hillary clinton's legacy does not have to be america's legacy. the problems we face now, poverty and violence at home, war and distraction of a broad, will last only as long as we same allrelying on the

editions who created them in the first place. haslinda: hillary clinton poised to unveil her choice of running mates. the republican -- democratic nominee well seek to reach out to voters after a week in which the republican party dominated the political voice. virginia senator tim kaine, tom vilsack, and corey booker are among the favorites. the imf chief christine lagarde lamed brexit for downgrade to global forecast. she said the rest of the world is doing better than expected. today tohoping to come for the first time in six years revise upwards. the forecast for growth.

i would have done that because china, japan, the euro area, were doing better than what we had expected. but unfortunately, the united kingdom decided to go for brexit. .o we had to revise downward haslinda: rupert murdoch will succeed roger ailes as the head of fox news channel. the 85-year-old founder is taking on the role to ensure continuity in the wake of the followingn of ailes accusations of sexual harassment. the cable not network accounted than two thirds of operating income at 20 century fox. global news, howard by 2600 journalists in 120 countries.

manus: thank you very much. let's get back to the event christine lagarde was at every the global economy is resilient. this year, the system has faced two spikes of uncertainty and risk aversion. it has demonstrated its resilience. meanwhile, vodafone reported results and says growth remains stable. vodafone, let's kick off their. will see this as an up arrow story. confirmation that the turnaround is continuing. of revenue they generate off the services, they saw with their network.

data and phone calls. it is up 2.2%. last quarter, we got 2.5%. we saw the robust growth we were looking for worldwide. people will be impressed with 2.2%. there were one offs that helped the number. strong,he reasons it is despite the fact that the eu cut roaming charges, growth is share -- stable. caroline: called off about 1%. talk to us about the united kingdom in particular. the brexit affect. .onsumer sentiment and notably, competition. the megadeal is tough times. interestingly, brexit is not

too much of an issue. people use their phone just as much as every. they're not too worried about this. u.k. remains a mess. down 3.2%. last quarter, down 0.1%. the company blaming problems with the billing system. disappointment among customers. 18 million customers that vodafone has in the u.k.. it is one of the reasons they have been the most complained about of the mobile phone networks in the u.k. they have to fix their customer improve 4gblem and network access outside london. they have this program, a two-year investment program to spend 20 billion pounds to do that. a lot of that money going to the u.k. but it has not delivered

the results people were looking for. they have got to sort those issues out. guy: the vodafone call just starting. the conference call. --will get conferen comments. chris turner. vote,efore the brexit vodafone said they could move their headquarters. terms of the data you are looking at, to try to get an understanding of where we are one month on from brexit, what are you using? what corporate is saying? the governor? how are you getting a picture of the economy? chris: most people were just looking at everything together. as you mentioned, the first look at the pmi from the manufacturing sector. we will have a good look this morning. if weations, i'm not sure

are going to cover that later. expectations are steep in terms of the decline. that is pretty exceptional. i think the market is expecting the worst. the sense people are expecting the worst? a lot of negativity priced in. chris: i think they are. you are coming to a point where there is a risk on the positive surprise. there is a chance today, it has not quite delivered. give us a sense of the british pound. the world currency ranking shows the pain we are seeing in the pound. down 10 percentage points. underperformer. are we expecting more weakness? chris: we are expecting further week's sprint toward the end of the year, we have a target at

about 125 or so. euro sterling can go to 88. to 82.5, thatwn might be the best level sterling will see. we are encouraging customers to take advantage of those levels to hedge for the second half of the year. guy: vodafone saying they care a lot for the digital single market. he said he would potentially c-suite sea suite -- out of the u.k.. i wonder if the reality is going to be as bleak as they suggested. >> part of their argument is most of their revenue is euros. it makes sense for them to be in germany. ouldn't just be brexit. a lot of people, when they announced that, said that is

telling about the direction the company is moving. guy: we will continue to monitor the call. chris turner is going to stay with us. of next, we are going to carry on with the currency conversation. the yen digging in as the doj governor says policy will not dig in. all the stocks to watch including vodafone. trump.n a triumphant ♪

caroline: a beautiful morning. they might be backing off on a deal to buy a humps unit ridley let's begin with some of the other world news. here is haslinda amin. haslinda: boeing says they expect a 2.1 billion dollar cost for the second quarter. the biggest loss is related to the dreamliner, the carbon fiber jet. they also reported hits from the jumbo and a refueling tanker. sachs set to raise money for its first private equity fund since the financial crisis.

they may gather up to $8 billion. the fund -- and the firm will contribute a small amount of capital. is officially available in the country where it all begun. after becoming a viral phenomenon, that have can be downloaded in japan, the country that gave earth to the pokémon franchise. shares trading higher. market cap has doubled in two weeks. starbucks has third quarter revenue that missed expectations. shoporld's largest coffee chain says same-store sales in the americas climbed 4%, down from 7% in the previous quarter.

program of the rewards may have left some customers confused. that is your business flash. forecasting the yen will host its first gain in five years. the strength has but the bank of japan policymakers in an uncomfortable position. that has led investors to speculate the boj will influence a policy of so-called helicopter money, a notion rejected by governor kuroda, . >> monetary policy is decided and implemented id central bank. i don't think at this stage we .hould abandon this institution what was interesting is

that interview was recorded before the interview was actually played out. the chart weout are talking about in more detail. this is where forecasters have the yen going. the yen, interestingly, trading at around 106. where does chris turner see their yen going? where are you in terms of the call for where the japanese go next? chris: we have a september forecast at 95. one of the more bullish yen forecasts. u.s. largely driven by the election risk premium. one of the amazing things, we abenomics and the suggestion the rank of japan

would intervene. we have come from 125 to 99 without a hint of intervention. nothing official. i think we have the g-20 meeting, all about free markets. a very difficult political environment to intervene, unilateral intervention. ofoline: there were talks the fiscal side of the equation. how much will we see government spending stepping in? for almost ¥30 trillion to come out and perhaps pump activity into the economy instead? chris: we are definitely at that stage. and you look at what the boj can do, the consensus is tweaking their policy. real estate investment trusts. modest adjustments, not major new initiative with regard to

buying. is fiscall, if there stimulus, it will encourage growth. there has been a correlation between the nikkei and the yen recently. it could support the yen. there are a number of risks as we go through the year. there is a correction to 107, they may be the best levels for dollar yen over the next couple of quarters. guy: there is talk of perpetual bonds and things that could help japan weaken its currency. how much of a game changer with that be? would be a game changer but it is far too early for those issues. he is the categorical about it. guy: helicopter money is different than a perpetual bond. that: the boj buying

perpetual bond. we think it is too early for that. as caroline was mentioning, these estimates for fiscal stimulus have increased. we have seen that before japan. it is hard to over deliver in terms of these large expectations. yen,lance, we think our there are challenges facing global financial markets. dollar yen strength will be temporary. digging into some of the key moves coming up, minutes away from the open. vodafone reporting revenue that beat expectations. this is bloomberg. ♪

7:50 three in london. seven minutes until the open. vodafone, let me bring you the last highlight. you say consumers will not be u.k.ized by the brexit -- consumers will not be penalized by the brexit. caroline: i want to keep a key phone, a key player in germany. fromer stock, backing away a $1.5 billion deal with pfizer.

care provider. public the traded, the biggest one in europe. ble one to keep an eye out. guy: politics continues to dominate the environment. we have been talking about what is happening with exit. what about another political surprise in the united states? we have just seen the rnc convention. it puts everyone on notice that the run to november is going to be interesting. you are basing some of your big calls on the fact that the run to november is going to be interesting. the financial markets are going to wake up to this one. chris: i don't think that is priced into markets, especially the fx markets. that is one of the reasons we have had a weaker dollar yen. donald trump introducing

americanism. protectionism. the last time the u.s. experimented in protectionism was in the early part of the clinton administration. they were trying to open up the japanese auto part market. that gave birth to the strong dollar policy. pricehen does the market this in? you think it is a longer lead time? chris: once the conventions are theof the way, we will get polls. right now 5% lead of clinton over trump you read if we see them narrow, policies can be delivered. that will start to wait on the dollar. we think the channel is again through dollar yen. a large net foreign asset.

one of the reasons we think our yen is going to 95. guy: coming up, it is the market open. this is bloomberg. ♪ guy: good morning.

you are watching "on the move." i'm alongside caroline hyde, it was in berlin. caroline has your morning brief. caroline: indeed, guy. trumps calls for isolation, vowing to put american security, strength, and jobs first. he says he alone can fix the system, but he can't even convinced the american people. brexit backlash. mark carney says the global financial system has been resilient, but what does business think? we break down the latest earnings to find out. and ready, willing, and able.

i determined draghi reaffirms the commitment to whatever it takes to stop short of action. e what is the next step for the ecb? on the back of that, the market is currently singling a down day, guy. let's talk about what those markets are doing as we head into the open. we think we will see a fairly mixed start, but a mildly positive one. european equity markets are trying to make up their minds, as to which direction they are going to go in. we just had french pmi data, 48.6. these services sector, 50.3. survey of 49.5 last time. france, exactly 50. this, as the ftse is down by .1% y positiveta is fairl for the french economy,

certainly more positive than the market was anticipating. manus: absolutely, guy johnson. there is one big driver in the market, one zone in thre green. -- in the green. that is tell communications and the vodafone story. of course, where do we go next? is policy from the central banks going to drive equity markets? is that the direction, as i speak with the global c this io this morning. asian markets, just coming off their november highs. let me show you the three stocks to watch on the open. the best-performing is telecoms, vodafone up 2.8%. the service revenue, up by 2.2%. that is according to goldman sachs. crh,rish building company,

will rise. we expect $1.1 billion in terms of earnings. originally, we expected $1 billion. so, a strong quarter in the u.s. we have just reverted back to that one, guy. the euro, where does it go next? this is the long-term average on the euro-dollar. i have overlaid it, or the team has overlaid it, with the 200 day moving average. of course, draghi -- i suppose, the lack of movement yesterday from the ecb. what to do next? when i get the data, when i see what happens with italian banks, when they see what happens with brexit, i will have a clear indication as to what i want to do. the dollar-yen, the consensus from the forecasters is 1005.

despite what we have heard about helicopter money, we're still going for a slightly weaker yen. guy: thank you, manus. let's deal with the details now of the french pmi data. it is better across the board, i would argue. the composite number is coming through at exactly 50. services, expected at 49.5, but 50.3 is the number. let's get a reaction of from our guest, chris turner. the french economy is delivering. chris: yes, better than expected. the euro could get a small lift forfrom that. guy: not much of the moment, but we did see little pickup in the euro post-draghi last night. but it has been very stable around that 110 level. chris: this has kept the euro-do

llar stuck around, waiting for the next big thing. caroline: speaking of the next big thing and waiting, we heard aftercb and mario draghi the press conference after the central bank left rates unchanged. once more, he stressed his determination to fulfill his mandate. >>t the governing council will act by using what is available within the mandate. readiness,stress willingness, ability to do so. caroline: but chris, what is fascinating is the market is not buying it. i want to focus on a chart manus had up for us earlier. the resolute inactivity of the euro, this is a 200 day moving average. love how flat it has been at $1.10. the euro continues to be aspletely range-bound,

though the monetary policy promises coming from draghi our not being listened to. and the world's biggest, most traded currency at the moment, chris, at the moment, is remaining with the smallest move across the board with any major currency. are we going to have this range-bound lack of activity for the euro-dollar? what is a take for mario draghi to shift the euro lower? chris: the euro is already pretty weak. also, if you look at the eurozone current account, that is about worth 30 billion euros to 35 billion euros per month. so, even if you do get this negative news coming through from the monetary policy front, you have to have a high conviction that the euro will go lower. and i think the market just does not have that at the moment. if the dollar,

strengthens on the back of increasing fed views, they could get down to 1.08 or so. orhaps, as we move into 2017 urozone to recover further, any markets are to consider the ecb tapering in 2017, it could push back up to 1.20 next year. guy: what was interesting yesterday, and you pointed this out, was the way the euro traded during the ecb press conference. what did that tell you about market positioning? chris: since they introduced qe, the market was positioned very negatively on the euro. expecting fresh policy to exceed the frenzy. and yesterday, basically, we thought there were some expectations that they might announce changes in the modality of the ecb bond buying

operation. nothing doing there. come back in september. the euro would have had a short squeeze with draghi failing to deliver, but we did not see that at all. i think that tells us that positioning is a lot more balanced these days than it was over the last 18 months. caroline: what about the italian banking crisis, chris, overall? there are some other concerns that continue to remain, sort of bubbling along when it comes to the euro, even though we have got everyone, 33 out of 34 economists expect the mark wanted of easing come september. is it more the systemic problems that are a risk to the euro, and are going to affect the currency, rather than the policy coming from the ecb? chris: yes, you make some good points. it is very pressing now in the run up to the stress test results next week. in europe, we seem to move from

one issue regarding test we have the banking system and then that feeds into the politics, for example. and the constitutional in october.n italy obviously, a lot of european elections in 2017 as well. but getting back to the euro, has held up pretty well by a lot of bad political news. as i mentioned earlier, it reflects the fact that it is very cheap. if you speak to a lot of corporate, you will not sell long-term hedges because the euro is relatively cheap. caroline: thank you very much, chris turner. up next, we talk market turmoil in turkey as the nation enters its second day under a state of emergency. later, we talked the impact of brexit on travel and tourism with the ceo of london's heathrow airport.

we are live in cleveland as donald trump accepts the republican nomination for president in a speech that warned of dangers to the u.s. at home and abroad. this is bloomberg. ♪

caroline: welcome back to "on the move." a pretty mixed picture is being painted on the markets. it is flat to lower across the board when you are looking at the stoxx 600. the ftse 100 down by .1%.

the dax also lowered by .4% today. the ramifications of brexit, gu y. lsr property overall, slumping. this also seems to be down to concerns about brexit. guy: let's talk about some of those concerns, caroline. as you said, the u.k. property sector is under pressure. there was a warning this morning about nonresidential construction. it is believed that is the loser on the stoxx 600. as for the stops on the upside, vodafone up by 2.7%. chr thought, up 3.83%. let's get to the bloomberg first word news. reporter: donald trump has officially become the republican presidential candidate. in his acceptance speech at the party convention in cleveland, he cast himself as the outsider who can repair a nation

teetering on disaster. he went forth with his campaign theme, including curbing immigration and free trade. donald trump: hillary clinton's legacy does not have to be america's legacy. the problems we face now, poverty and violence at home, war and construction abroad, last only as long as we continue relying on the same politicians who created them in the first place. reporter: hillary clinton is ready to unveil her choice of running mate today. according to persons familiar with the plan, the democratic dominate wilc nominee will see a caption the attention -- will seek to recapture the attention of voters. murdoch will succeed

roger ailes as head of the fox news channel, the most-watched news network in u.s.. founder is old taking this over in the wake of ailes' charges against a fellow anchor. global news 24 hours a day, powered by 2600 journalists in more than 120 countries around the world. this is bloomberg. guy: now, turkey has requested market reports produced by international banks in the country, saying it disapproves of creating negative expectations ahead of the turkish banking regulations. a said, we disapprove of our banks' publishing reports that would turn expectations and the atmosphere negative, like the international credit rating agency did.

mr. erdogan said the downgrade could be viewed as an extension of the coup attempt. benjamin harvey joins us now. are bankers nervous, do you think? >> i think they are a little bit nervous, yes. this is not the first time this has happened in turkey. of for the 13 antigovernment protests, there was a similar investigation. of course, the upside is that the quality is coming out of turkey because people do center themselves. -- people do center themselves. guy: are these pre-released censorship by the authorities? >> not pre-released, but they are being asked to hand over the reports that they published in the wake of the coup attempt. at lisa three national banks

said they were contacted and asked for those reports. caroline: dig into the words, us,semantics, for benjamin. what is meant as the extension of the coup attempt? >> there is a a feeling that the downgrade was premature, that they had not had time to analyze the impact on the turkish economy. but of course, this also fits into a larger narrative, which says this is not an isolated event. turkey has been subject to multi-pronged attack seeking to undermine its government and economy. and erdogan that is much yesterday, saying the s&p downgrade was political and also, the could be other countries, without naming them, that were involved in thsis cou p attempt. guy: what do we understand about the timeline and how it will

work with the state of emergency? >> i know, the state of emergency is three months, but erdogen said yesterday that it is possible to extend that. guy: in terms of how the situation continues to develop around the world, we have heard the line being pushed very clearly that turkey needs to thatct international law, it needs to respect its people, that it needs to deal with due process. is that as far as you think things will go at this stage? >> as far as the international reaction? probably so because they will see that turkey is not going to pay much attention to that. and they are determined to get these people out of the bureaucracy. we did an interview with the deputy prime minister yesterday and he said this group has been laying down this for. 40 years under normal circumstances, it would take 20 years to root them out. that is why they pass this stage of an agency. they don't have this time. caroline: it is a nominal, the

conspiracy theories that seem to be swirling around turkey. benjamin harvey, thank you for being with us. , a turbulent first week of german earnings. -- up next, a turbulent first week of german earnings. what is in store for the week ahead? this is bloomberg. ♪

caroline: welcome back to "on the move." 20 minutes into your trading

day. the dax is down by .5%. deutsche lufthansa the worst performer in germany. clear downside concerns after a loss of earnings. we are well into the season now. volkswagen and daimler beating expectations in germany. flagged a turbulentmina summer ahead. we are now joined by ralph zimmerman. thank you for joining us. fueling equitys markets have been a hoax of earnings being better than expected. -- equity markets have been the hope of earnings being better than expected. talk to us about what you see in germany? noticeably, airlines are taking a hit. >> yeah, it is definitely a mixed earnings season.

there will be positive surprises and negative the prices -- positive surprises and negative surprises. you will certainly not see something similar in europe, as compared to the u.s. it will be all mixed. i think the reporting season will be neither fish nor fowl. we are still talking about stagnated earnings in the upcoming season. caroline: what is weighing most heavily at the moment? note,lk about, in your that we could actually see at times, more defensive stockpicking. is that the way you are talking to your clients ahead of the rest of earnings from e urope? >> at the end of the day, it all comes down to the question, is

the global economy going to accelerate or not? the macro consensus is calling for an acceleration, the analyst's expectation as well. q2 is expected to be better than q1. further acceleration in the second half and across the board, we are going according to the consensus. we are going to see double-digit earnings increase next year. but we are more cautious here. we think, if there is no global gdp acceleration, which we think is pretty unlikely, he will only see an earnings acceleration. this does mean we would recommend investors to be more cautiously positioned, more in the defensive sectors, like food, pharma, like household goods, and only selectively in the deep cyclical sectors. caroline: today seems to reiterate the fact though, that

so much of stocks are built upon monetary policy. we have japan coming down one percentage point week is the concerns that we won't see so-called helicopter money, more stimulus, being injected. what about the ecb and european monetary policy flying into what you go in terms of defensive stocks? policyeuropean monetary here youinto what yo go, in terms of defensive stocks? central-banks have to be more mixed than they have been before. only refusing cutting interest rates further, this is not the silver bullet. it is pretty negative for the banking sector. the performance of the banking sector is closely driven by

interest rates, closely driven by the yield curve, and further paths in the interest rate would mean a negative for the banking stocks. so, with all the wide variations and helicopter money, this would be a major positive for european stock markets, but what does it mean, helicopter money? you need an expensive package before you really are going to see it here in germany, europe, or the u.s. it is something further down the road. it is not immediately ahead of us. and as long as that is not the case, it will be really a bumpy road, if you have no acceleration in global gdp. guy: let me jump in here from london. the s&p is trading at a near record high right now. what will it take to get u.s. investors reengaged with european stocks? >> yeah, you need ongoing,

better macro-use flow. q2 was somewhat better than q1. that is fine, but with this brexit debate out of the bottle, at the end of the day, we don't know if actually a brexit is going to happen. but a key issue is, there is so much uncertainty around and investors will watch really closely upcoming political events. and all eyes will be on the details of the upcoming recapitalization of the italian banking system. if there is any bail without full compensation of italian households, which are deeply engaged in banking debt, it will increase significantly political risk in italy. you know, there is a referendum in october.

and this is -- i think global investors are going to expect a better flow. guy: thank you very much. we have to wrap it up there. we are moments away from the german pmi data. we will talk about heathrow, next. this is bloomberg. ♪

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yourove." half an hour for trading day. we have breaking news coming through from data, in terms of the pmi data. it is beating too. from got 53.7 coming in german manufacturing, well into expansion territory and more than the survey had estimated. we are also doing better on the services pmi front, 54.6. that if you number for german pmi on the services. 53.2 with the estimate. so again, stronger than the estimate. we are seeing resilience from france and germany. should we be worried about brexit? it seems the economy is riding

it through at the moment, certainly for the month of july. guy: some stocks are certainly in tune with that story. it will be interesting to see how long this story takes to get into the consciousness of corporates. this is what we can see on the european stock story at the moment. . most stocks in europe are softer this morning, down by .4% vodafone, we're watching the very carefully. not really focusing on the brexit theme, this morning, but talking about the idea that the continental market are performing strongly come up by .225% this morning. foxtons though, one of the well known brands among british state agents, reacting to its warn ings. and they are down by 4.28%. and lufthansa as well, down

another 1.4% after being hit so hard. it is talking about strikes antiterrorism impacting its business. it did that yesterday. but today, it is again into doing to soften up. yesterday, we thought easyjet and air france under pressure, caroline. it will be interesting to see hopefully, when we talked to heathrow very shortly, if the arnings we are seeing now is feeding through into that story. he will be joining us very shortly. so, the company reporting a 1% ase in first half revenue 35.7 million passengers use the airport. the company said it has got what it takes to get permission for take off, i.e. to build another one might. let's speak to the ceo of heathrow, to know joins us from

heathrow. let's talk a little bit about what is going on. let's talk about where we stand post-brexit? any impact you have noticed so far? >> first of all, i want to say what a fabulous set of results we are seeing today. that is all coming through in a very strong financial result. it is too early to say what the impact will be from the vote to leave the eu. we have not seen an impact on the passenger volumes. it will probably take three to six months before we see that. in our business, we are very resilient, even with the financial downturn in 2008. we did not see a significant reduction in passenger volume, and that is because of so much demand to fly out of heathrow and because we have such a global business. we are flying to emerging markets around the world. so, we are more affected by the global economy in many ways. guy: over the past couple days

though, we have seen warnings from a number of carriers. lufthansa yesterday spoke about how terrorism and starks could be affecting business. -- terrorism and a strikes could be affecting business. you get a sense from the carriers that you operate with that they are concerned about the north atlantic routes? may be not the brexit affect, but a wider instability in europe is the read across. >> we have been concerned for the last three-month about some of the issues you have been talking about. we are the main trading route for europe with north america. that is just how significant it is. and i think we have seen a bit of a tail off in some of the business traffic. people were holding off doing

deals. it is too early to say what the impact will be longer-term, but i think it is sensible for people in the aviation sector, including ourselves, to be prudent as to what the future might look like, make sure we are not being over ambitious with revenues. i think that is typical for many organizations within the u.k., just to make sure we are protected against whatever might happen to the economy. caroline: you have talked about business deals being put on hold. we have now seen a few big mma transactions. britain looks relatively cheap because of the cheapness of the british pound. how much will this affect your business? >> it is a very good point, actually. 15% is now 10% to cheaper than it used to be. for travelers choosing to come to europe, as compared to traveling through europe, heathrow is a much better value

than it was a couple months ago. so, we are trying to market the huge advantages we have here. hebrew is not only a better value now. w-- he threw is not only a better value now -- heathrow is not only a better value now, but it is the top choice but customers. 16 billion pounds of private investment in the u.k., the is a much better investment now than it was even a few months ago because it is so much more affordable for investors. so, we have seen huge appetites to invest in heathrow. caroline: john, the appetite might be there, but the decision-making is proving slow. we have just had a new government taking over, theresa may saying that on july 20, the decision will come in due course. when are you anticipating that

we look at the final sums up? what do we anticipate in terms of any kind of scale up? >> i think we feel a new sense of energy from the administration. they want to make big decisions and show britain is open for business. they want a long-term economic plan that will secure britain's future outside the eu. and there is a very simple answer to that, to expand heathrow. heathrow can connect the u.k. to those emerging markets. and better yet, we have 16 billion pounds of private investment, which is a huge shot in the arm to u.k. industry. we have support in cabinet for heathrow expansion, as well as the majority of mp's supporting heathrow expansion. many businesses up and down the country, as well as many locally, want to see heathrow expand. anything between parliament coming back in early september

and the autumn statement in november, that is the window where we are likely to see a positive decision from the government. guy: demand that now runs london though, favors gatwick, john. what does that do to the argument? >> this is a decision for the government taking a national view. but actually, we have huge support within london from labour and conservative mp's, who want to get behind backing heathrow. they can see we have the right balance of the national economic interests, the local economic interests, but also doing the right things from an environmental point of view. we have recently had mp's to recently oppose the expansion changing their minds. and a is why i am confident we will at the right decision from the new government to get on and do the right thing for the u.k. in the long-term and expand heathrow. guy: john, just a transcendental

question. airbus often touts the capacity crunch aircraft, i.e., one that can bring many people into the places like heathrow. would you have a problem with them canceling it? i am not suggesting that that is what they will do, but do you need bigger airplanes? >> generally, we see a trend towards larger airplanes. so, for the really busy routes, such as los angeles or singapore, that is where we see the a-380's coming into their own. but many of the risk need to get through, into indonesia and bogata, there are not enough routes to support the larger

planes. and heathrow has been very effective in helping to grow hubs. the efficient airplanes are helping to make the u.k. better connected to all of those global markets. and we have more of those kinds of planes going to heathrow also than any other airport in the u.k. guy: john, thank you for your time. john holland-kaye, the heathrow ceo joining us from the airport. up next, we are live in cleveland as donald trump delivers his acceptance speech at the republican national convention. this is bloomberg. donald trump: either people who work hard, but who no longer have a voice. i am your voice. ♪

caroline: this is "on the move." we are focusing on the u.s. now because donald has officially become the u.s. presidential candidate for the republicans, delivering his acceptance speech in cleveland. he started by depicting america as a nation under siege. donald trump: the most important difference between our plan and that of our opponents is that our plan will put america first! globalism will be our credo. caroline: bloomberg politics reporter sasha eisenberg joins us live from the convention in

cleveland. it is very early in the morning for you, but give us a sense of the message. >> it was a very bleak message for a party that has long prided itself on its optimism. trump was describing chaos globally and what he called "lawlessness at home." there was a combination of publicg on crime and safety. those are issues that have gained a bit of salience with the shootings over the last few weeks here, and then talking about the global threats with isis, in particular. he presented himself as the only person who could fix these problems, as he put it. guy: as we are packing it up behind you, we are all moving on to focus on the democrats. how are they going to be viewing what happened at the rnc? ais is a disunited party,

party preaching to the converted. give us a sense of what the rest of the world will see hair. >> i think the democrats will be pretty happy with what came out of cleveland this week. what we saw was donald trump basically continuing the types of message, and the town, that carried him through the republican primary. but there has been talk for a well that trump would make a pair of it tivot to expand his coalition. i don't think we saw a lot of evidence of that here at all this week. guy: it has been great work throughout the week from you guys. thank you very much indeed. let's keep the conversation on politics. pick an adjective. >> i think this was a circus. i think the republican convention was supposed to be led by this ringmaster, donald

trump, holding it all together and everything seemed to fall apart, from the unscripted plagiarism, to last night's speech, which doubled down on a policy that seems to appeal to a voters, that is not large enough to carry him to the white house. guy: how will independents view this? >> this was a dystopian vision of what the united states is like right now. and the question is whether the media narrative that jives with a that, these headlines regarding mass shootings and terrorist attacks, will carry a lot of weight, given it does not match up with statistics. crime is down in the united states. the number of cops killed in the one of duty is lower this year than it was last year. the question is, is this fear mongering going to resonate and carry him into november? people be thinking about this message, or will the

message move on to economic issues, which i'm sure the democrats will focus on? caroline: is there an estimate of just how damaging it could be to the economy to see the u.s. become much more isolationist, to put up walls, as donald trump has talked about in the past? have you been analyzing what the repercussions could be? >> i think it is difficult to put a figure on this because the stuff he is talking about is unprecedented in modern american history. he is talking about tearing up the nafta free trade agreements, departing from our nato allies. we are dealing with things that have never happened in modern history. it is tearing up the rulebook of what american politics stands for and that is why we saw a divided party because most people in the republican party do not stand for the ideas that donald trump espoused last night. ofoline: give us a sense what the breakdown will be when we finally see clinton go head to head with donald trump?

what was the breakdown assessment be? how much strength has donald trump got from the rest of the united states? >> typically, with conventions, you see pulling bouts, where the soccer side of the candidate comes through. we did not see that in cleveland. we saw a divided party at trump doubling down on his message on fear, saying, i am the only one that can solve this. currently, the polls suggest clinton is mildly ahead from trump, final think we will see a lot of movement either way because the airways have been saturated with both for a while. there is not much new here. the question going into the democratic convention is, what is clinton's message going to be that is new? guy: did what happened in cleveland affect the vp choice that clinton will go with? >> i think that by picking pence, what trump has done is make it more palatable for clinton to pick a safe person,

but it has also made the rewards ickpicking an unsafe pc higher. but pence is emblematic of the problem that republicans have. he stands behind nato agreements. he stands for a robust international presence for the united states. ec all of these contradictions within the republican party. trump previously tweeted that s wasdea to ban muslim unconstitutional. you see a lot of political contortion iism, trying to put themselves into this box of what trump stands for, but it is very confusing. guy: does this speed across to what happened in congress here? >> you have a huge problem if you are a republican up for reelection in a swing state this year? jeff flake from arizona said he

would not attend because he was mowing his lawn. john mccain who previously accepted the nomination, said he was going to be treking. these people are trying to run away from trump without seeming like they are running away from trump. he is a toxic message in these swing states. guy: up next, what were the biggest arrays and major market moves -- what were the biggest stories and major market moves this week? we have our chart of the hour. this is bloomberg. ♪

guy: you are watching "on the move." it has been a busy week for the markets. up, let's talk about this failed coup in turkey that absolutely weakened the lira. the producers decided to title it "turkish lira tanks." this was the big move and we have popped off that, but continued in the state of emergency to continue lower for the lira. the country has been downgraded and now it's simply turkish administration would like to see the reports coming from the banks on what is happening in the economy.

reports -- ithese don't know what is going on with my brain. that seems to be causing more consternation as well, caroline. caroline: it is fascinating, whether moody's will be affected by some of this, the thought thing thrown at s&p's direction at the moment. i want to move to the corporate world. the biggest deal we were analyzing was the arm holdings deal. chip buying up the u.k. designer for $32 billion. sure, they want to get into arm holdings which powered 95% of all smartphones. they also want to get into the cheap currency trade that made the timing just so fruitful. here we have the japanese pound -- the japanese yen versus the british pound. suddenly, up goes the price of

arm holdings. it was the right time to purchase a british asset, it with same, guy. guy: let's talk about this with richard jones. what kind of way cap you had? richard: it has been a busy, busy week. the brexit seems an awful lot longer than just a month ago. i think what we are looking forward to today, guy, will be these one-off post-brexit pmi's. given the fact that all the data we have had up until now earlier this month has been all backward looking. this is a little more forward-looking, reflective of what the actual brexit impact has been on the u.k. guy: what about the week that is coming? let's talk about the boj input is coming from the japanese. richard: there is a lot of expectation that they will be doing some pretty impressive easing.

i think it is all part of a fiscal and monetary approach to easing, but obviously, the boj next week will be a massive focal point. we have seen the dollar rise quite strong against the japanese yen over the past week or two, which has been driven by the expectation that we will get drivers from japan. guy: what is the economy like? >> it is perhaps, exacerbating these moves, given liquidity has been below what we normally have. guy: richard jones, always a pleasure. caroline? caroline: stay with us because those u.k. pmi numbers are coming up in 30 minutes. "the pulse" will be breaking it down. manus will bring you the eurozone numbers as well. remember, we have germany beat, france beat. will it be a beat to the

eurozone pmi as well? this is bloomberg. ♪

delegates, and fellow americans, i humbly and gratefully accept your nomination for the presidency of the united states. accepts thed trump republican nomination with a speech warning of dangers abroad and at home. i am your voice, he tells the american people. will he get their vote? draghi reiterates his commitment to act, but holds off for now. the fed and the boj prepare decisions next week.