francine: abe we fires his first -- and jobs on the fourth day. how will that affect friday's boj decision? more cuts from crimes young -- second quarter profits and hillary makes history. clinton becomes the first woman to run as a presidential candidate of a major u.s. political party. we are live in philadelphia. ♪ francine: welcome to "the pulse." live from bloomberg's european

headquarters. i am francine lacqua. we have a great and busy lineup of earnings and we speak to the cfos of brochure and captain me. we speak to the ceo of eula. let's speak to -- let's get to bloomberg first word news with caroline hyde. caroline: hillary clinton has been nominated as the first woman to run for president of a major political party. it happened after bernie sanders to the microphone to ask that is former rival be unanimously named the nominee. >> madam chair, i moved that the convention suspend the procedural rules. i moved that all votes cast by delegates be reflected in the official record, and i move that hillary clinton be selecting as the nominee of the democratic party for president of the united states.

shares jumped in extended trading. that is after the company's lower-cost iphone see gained more traction with users. the tech giant forecast sales which fell for a third consecutive quarter. it was better than most analysts estimated. the two bank says it's second quarter profits were always wiped out as trading revenue slumped for money set aside for job cuts. income fell to 18 billion euros -- 18 million euros. it forecast a loss of 22 million euros. japan's prime minister announced plans for more than $260 million and economics dip -- economic stimulus. i basis the package would be compiled the next week. the yen fell against the dollar on the news of the announcement came ahead of the japan a rate decision on friday.

-- the japan rate decision on friday. global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. you can find more stores on the bloomberg at the top . i am caroline hyde. this is bloomberg. francine: caroline, thank you pete on the latest out of japan, let's head to japan. jody, it is been quite a roller coaster. what do we know so far in terms of what will come on japan in the next two weeks? on the fiscal side but also the boj? juliette: prime minister -- jody: they are compiling a fiscal stimulus package. we don't know about package, we don't know how much is new money , fresh spending and how much is left over from other budgets or tax revenue? some analysts are saying it may appear bigger than it really

will be because we don't know how much of that is that fresh spending. we don't know how it will be financed and we don't know what is exactly in it. i missed abe has said it will be bold, copperheads of. -- prime minister abe said it will be bold, comprehensive. high-speed rail and other infrastructure projects are expected to be a lot of this page with the boj, the decision on friday will come friday at the end of the two-day meeting. atare anticipating stimulus our survey showed the largest percentage of analysts anticipating stimulus since governor kuroda debuted meeting more than three years ago. this may put pressure on the boj for the stimulus. francine: monday through what is going on with dish run me through what is going on with the yen.

-- run me through what is going on with the yen. given the fiscal stimulus of the caveat you are mentioning, is a possible that yen at ahead of itself because of the drop that we saw today? bei: that could very well good without any real news coming out yesterday, the finance minister made some comments that moved things along. is responsible for monetary policy, and they are anticipating a fiscal package. he did not know the size of that and that caused the yen to move. real news about the package, .here's been a lot of movement all eyes are on the boj and there's expectations from sir -- expectation for some sort of action. traders don't look at any sort of comment and take some action based on that. a lot of anticipation it would

have a little bit to wait. -- a lot of anticipation. we still have a little bit to wait. --ncine: joining us is including currencies and also earnings. thank you for coming in. there is a huge red cross between currencies and the currency moves we saw in yen but also the dollar. how much life gets easier for a lot of these companies. >> fx has been -- the macro driving fx, it is an open question. it is going to have an impact. missing in the u.s., europe and japan. questions asked by investors, it is all about fx. whether it is the boj going into tomorrow and friday. it remains a bit -- a big driver

. francine: what are you expecting for yen? governor kuroda is difficult to read. the markets aren't spending so much. >> surprises on both sides, i would argue. u.k. is a slightly ahead of the yen. if you think there is a fair value -- 110. if you are surprised with a bigger yang -- there move price and by the end -- by the nikkei market is by 3%. it is different volatilities. the end should be a lot bigger. -- the yen should be a lot bigger. the expectation going into friday works in the high. the margin, what came up this abeing from they, -- from -- what the package does look like. new packages --

francine: at the moment -- >> it feels like it. the market reaction is telling you if there is a fiscal easing issue for the economy which is why the yen was up. the nikkei was up. the yen should probably not be too weakened. market reaction is probably quite logical. a little bit ahead of itself may add a few percent of squeezes depending on the announcement. francine: thank you so much for now. we have another great exclusive interview. second-biggest carmaker has promised it will remain on a turnaround track. morning.g this we will speak to joe battista shaquille -- jean-baptiste the don't -- -- the shelti

you are one of the biggest gainers in terms of share price today. talk to me about the chinese market. how is that evolving. jean-baptiste: thank you for taking the skull. we are delivering very strong results this morning with record level of margin for peugeot. strong.market is very our profit margin operation with 5.7%.sing it is a where heading for 2018 toward 10% profit margin. we're looking at improving our margins in china. at the back of a very strong cost-cutting plan that we will , 2017 anding in 2016 2018. with the european car market

continue to grow despite exit? jean-baptiste: in europe, we do not see much change in the european market. the we can tell is that the strength of our cost settings is such that we feel perfectly fit to face this event. -- but we arect beating very much our targets in terms of cost-cutting which is more than compensating. that is why this morning you can tell that with a very low canation, peugeot shows it deliver very strong on results in this market. francine: are you concerned that in the future brexit will have more of an impact? we heard from some of the managers already setting brexit as one of the reasons the plants

will be idle. jean-baptiste: we are monitoring our -- on a strict basis. we haven't monitoring of our working -- we don't see a change in demand in the u.k. we are not expecting major changes on that front. it was already down in the first half in spite of this, we delivered groundbreaking margin profits. a record for the push of group -- from the peugeot group. from a generalist, almost a premium margin. a very good result in spite of this stellar effect. francine: do free-trade agreements not were you? -- not worry you? would you say brexit is your top

concern at the moment? is there something else? jean-baptiste: know, we feel very confident. it is not a top concern. processaid, brexit is a nobody knows how long it will take. we are focused upon our performance and we want to be delivering cash every fiscal year. we want to deliver strong profits every year. that is why we maintain our guidance. leastce to deliver at four-person margin on the auto business which is an all weather guidance. you see we feel we are perfectly -- on that front, maybe peugeot shows particular a bigger level of volatility.

francine: thank you so much for your time jean-baptiste de chatillon. thank you virginias from -- thank you for joining us from paris. stay with a pulse. consulting and technology group reports dish reports a drop in first-quarter profits. an estimate of u.k. gdp is published at 1:30 a.m. we will bring you numbers as it breaks. we talk about the future of sportswear with the chief puma.ive of, -- of this is bloomberg. ♪

francine: welcome back. this get to the adf with caroline hyde. -- with the bloomberg business flash with caroline hyde. --oline: acquired by japan's since second-quarter sales increased below analyst estimates. on which is the market leader in chips says it signed 25 new licensing agreements since the quarter. the company plans to raise its dividend by 20%. unicredit is said to be considering a 5 billion euros stock sale in selling its entire stake in poland in order to raise capital. the bank is also said to be considering the sale of a large share of its bad loan -- and literally. air france klm group says the market is deteriorating since

fares fall and terrorism impacts. analysts had forecast 6.5 6 billion. an exclusive interview with bloomberg, the cfo outlined risks to brexit. cooks we have -- >> we have seen in the u.k. because we are directly correlated to the gdp. [indiscernible] on top of that, [indiscernible] what is going to happen. we believe that people are rational. people in the u.k. are rational and they should come to an agreement.

francine. francine: consulting and technology group has reported to 266alf profit up 26% million euros. at -- welcome i'm on is --ase look at a man is at thank you so much is at for joining us. your first half net rising 26%. you lifted your operating margin to 42016. what you worry about the most? you are about brexit? you are about growth. -- you worry about growth? aiman: where cautious about brexit. we have done recently reviews of our u.k. business with our country board.

they do not see any slowdown. -- and project decision as a going to the first quarter. if u.k. business starts to be concerned about growth in the u.k.. right now we are cautious about the brexit. we don't anticipate any slowdown at this stage. francine: i have to pause because we are getting some breaking news out of unicredit. we have been having some speculation around banks. we'll get back to the cap germany seafront in just a second. this is something that broke a couple of weeks ago. unicredit and the santander has -- have ended talks on a deal with asset management. we heard about a possible, nation. late last night, there was speculation that unicredit -- this is ahead of the bank stress test on friday. unicredit could selloff the entirety of its polish unit.

unicredit share price has not been looking that good. i want to bring your to the uber terminal. this is the share price for unicredit since july of 2015. we have a lot of news today good to aimano go back ezzat. if it is not earnings, the speculation and we need to keep everyone up to date with breaking news. you are saying you're watching brexit very closely. what kind of impact could it have on your company if it were to unravel and become ugly? aiman: we don't really see any impact. there may be some slowdown but it will be minimal. question is basically are we going to see a lot of clients putting projects on hold in the u.k.? we don't believe so but we have to remain cautious. we don't think it can get very ugly people have quite a bit of

business. 50% of our business in the u.k. is public-sector. 50% is private sector and some of it is contracts. on -- itift depending remains a minimal impact at this stage. -- aine: a memo impact minimal impact. the expect people to hold off spending until the situation is clear in the coming months? aiman: we don't see because we have a lot of mandatory projects you have to do in your business. it is only the discretionary part you can see we could wait six months or one year to make the decision. when you look in the scoop of our business, it becomes quite small if you target only the private sector. we don't think there will be any slowdown from the government spending which is 50% of our business in the u.k. francine: understood. what about

consolidation? are you expecting consolidation in your industry back odc yourself as a consolidator -- industry? and do you see yourself as a consolidator or? -- consolidator? aiman: being one of the largest players locally, where started already could we have done a number of acquisitions in the last three years, including last year. a big acquisition in north america. we do see potential increase in merger and acquisition in the coming years. francine: thank you so much. aiman ezzat, great insight into some of the things that cap jen is doing. joining us from paris. it is a big newsday because we are trying to figure out what sayings -- you are

portfolio change -- and we were hearing from the peugeot chief financial officer that value stocks may be brought into at the moment. >> if you look at the last rally and it has been led by low risk. therefore, one bucket which is been completely left behind is revenue and autos and banks will feature quite highly. in the little bit tricky value space because -- but the size of the underweight is starting to create some benchmark issues. from a risk point of view, it is interesting to see that if you add value to your portfolio. filing it away from some of the macro drivers and so on. we're starting to see some pick up. back see a potential step

to the upside in value. .t is likely an increase francine: will get back to banks in the second but overall -- the negative rates compared to the fact that there is about a stock usually undersold? >> going back to the risk versus value. -- it has taken the rest of the market with it. therefore earnings are dramatically important. a lot of the work has been done -- not by the peas. seeing a season that is coming up better than expected in the u.s. it is important for future prices. francine: i want to talk about tech. revenues and profits beat estimates. meanwhile chipmaker arms holding -- arm holding missed estimates. we'll get earnings from amazon.com.

that is just -- what does it mean? how do you look at tech? we talked six muska about being in a bubble. -- we talked six months ago about being in a bubble. resilient despite everyone saying the contrary. >> thing happened over the last six months which was a huge implosion price momentum. that did unwind a lot of positioning. was about credit and is and how many people -- [indiscernible] therefore we are looking at a much cleaner slate where we can start building on it. it is going to be about following momentum and growth and trying to extract this growth out of the equity markets. francine: are we pricing risk wrong? i look at charts on a daily basis were equities go up but

yields to going down. until certain bags are normalizing, is this the new trend? >> it raises interesting questions. it has been a long climb to some extent. equity has been helping performance. we are keeping a close eye on the expectations of rate hikes next year, who knows? that could in itself trigger bonds into equities if we are starting to see some potential for growth in the u.s. excited hedging, we have been looking at -- in the u.s. hedging, we have been looking at. backing up a little bit and equities settling down a little bit. francine: on tonight julie a -- he stays with us. -- was the get new u.k. it would brady down for you

-- u.k. the futures on the these is volatile. we heard unicredit and some thunder have -- and the santander have ended talks for a merger deal. this is bloomberg.

francine: welcome to "the pulse," live from bloomberg's european headquarters in london. has grown 0.6%y in the second quarter, a little better than what economists had expected. we expected 0.5%. a reminder, this is basically the last her robbie for brexit because it came before the rrah beforehe last hu

the brexit vote. we havenomists that been speaking to expected this after the be reversed country voted to quit the eu last month. the snapshot for gdp for the second quarter is important to cousin gives us an indication of where the economy was headed. boe will know what the or will not do because we do not know what the shock or not shock of a brexit will happen. there has been some strong second quarter and that gave the u.k. a little bit of momentum heading into this referendum result. let's get to the bloomberg first word news. hillary clinton has been nominated as the first woman to run as a presidential candidate of a major u.s. political party. it happened after bernie sanders took to the microphone to ask

for his former rival be named unanimously as the party nominee. madam chair, imovie that the convention suspend the procedural rules and i move that all votes cast by delegates be reflected in the official record , and i move that hillary clinton be selected as the nominee of the democratic party for president of the united states. caroline: apple shares have jumped in extended trading after the country does after the iphone sc gained more traction than -- with users. their range for the current period was better than analyst estimates. trading revenue slumped and money was set aside for job cuts

by deutsche bank. forecast a loss of 22 million euros. japan's prime minister shinzo economicnced plans for stimulus. he said the package would be compiled next week according to the paper. the yen fell against the dollar on the news. the announcement comes ahead of the bank of japan's rate decision on friday. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. find more stories on the bloomberg at top . i am caroline hyde. this is bloomberg. puma shares are trading slightly higher after they reported a second quarter earnings beat. --joins us on the phone bjorn gulden joins us on the phone. can you keep the momentum?

footfall, or soccer, and the women's market. bjorn: our business has been decent in the first two quarters. development of our plan and we see that continuing in the second half that we will hit our target. our sales have improved in all categories and we feel we are in pretty good shape for the second half of the year. francine: meaning that you can build on what you have achieved this quarter, that profit will rise or you are expected to remain stable? for anwe have guidance improved profit this year and that is what we are trying to achieve, and feel comfortable that we will do so. i would say after the first half it is confused -- confirmed that we will continue to be step-by-step and build the brand back so the cat can shine again.

francine: what are you doing so right in the united states? .ales were up some 40% is it because of the u.s. market or are you tapping into something the u.s. really wants? we were up not think 40% in the u.s. market. we have grown 30% in the global market and we have a positive development in all markets. we are a small player compared to the big ones and have a long way to get back to where we should be, but feel comfortable doing itsroduct is job. we are especially happy with the job development in women's and look forward to the rest of the year to see that we sell more and better product to the consumer globally. may, for it is 40% in sports shoes, and then it dropped to 17%.

17 is not bad either. mayyou concerned that you confuse some of your users and clients by focusing on people anna and kylie jenner? does it confuse your customers? bjorn: i think p.m. is active in sports so we have to bring -- puma is active in sports so we have to bring a great product. we also know that the kids of byay are influenced not only sports but from the entertainment and music scene. we see a merger between sports and fashion, especially on the women's side. rihannahe influence of and kylie jenner as very high on the youth group. puma being a little bit more

edgy and fashionable than the other brands, especially the women's. i am happy to work with three on a and kylie, and we see with the influence is working well so i'm not afraid of confusing anyone. i think a good product that looks great is what puma should stand for. francine: which athletes do you have in your stable that could start to fill the shoes of the sprinter when he retires? bjorn: we do not know if he is retiring. he looks in great shape. he ran last week. i think we will see an astonishing performance in rail. he has not decided if he will continue to run or not. he has been with the brand since it was 15 and it is turning 30 during the olympics. with him as our major athlete if he continues to

will work for, he the brand in different capacities. let's take one step at a time and see after the olympics what he wants to do, and then we will make our plans. francine: thank you so much, bjorn gulden. the share price is a little bit on the upside. we just had breaking news on gdp in the u.k. for the second quarter. we also heard from the new chancellor for one of the first ,imes since brexit happened that we heard for the chancellor in charge of finances, philip hammond. he says the fundamentals of the u.k. economy are strong and he says the government and boe will do whatever needed to support the economy. the pound is not really move on the back of the second quarter because the figures were pre-brexit but a little bit better than expected.

we have a lot of earnings, we have central banks, and the gd the figure -- gdp figure. antennae on, thank you for sticking around. -- antonin, thank you for sticking around. we were talking about portfolios and how to navigate this kind of environment and also some of the idiosyncrasies that we are seeing on the market. what is one thing that half a the most when you look at the trend? antonin: the fact that volumes likeuite light, and looks a lot of the moves are happening on not a huge amount of volume which should tell you there is not a huge amount of convictions, which is testing investors' risk appetite. we have been in the range for a while and therefore there needs to be asset trading allocations to try to make money in this market. what is quite reassuring is that

it looks like the central banks are starting to address what is needed by the market. to answer your question, one thing that is worrying us is the weakness in the renminbi. it has been on a downward trend as of august last year. it seems to have gone unnoticed by the market. one of the things which makes it tactical going into friday is the yen. the yen has been stronger which has held the dx why do not be too strong. that would become an issue. depending on what happens on friday, that could act as a tailwind to the market or a headland. francine: we are getting breaking news from the european commission president saying he the former minister of agriculture and fishery in france in 2007 and 2009, and he

oversaw the internal markets and financial services from 2010 to 2014. how do you deal with brexit? the battle lines are being drawn so we know who is in charge. we do not really have a clue of what it will look like. not.in: no, we do i think the cfos earlier thought the same thing. we understand there will be a framework. different ways the u.k. could go and we just do not know. look at the ftse year to date, it is up 6% or 7%. therefore brexit does not necessarily equate with the ftse. the ftse has a lot of energy names, pharmaceutical names, and that is not really related to the u.k. so it does not mean that brexit correlates with the

250. a much higher correlation with the ftse 250. francine: stay with bloomberg, plenty coming up including first markup, we break down deutsche .ank's profit hillary clinton makes history as the first female presidential candidate. shinzo abe announces a stimulus package. how it will feed into the friday boj meaning, that is "surveillance." ♪

francine: markets are higher this morning. let's head to the bloomberg for your asset check. it is all about earnings propelling the european stocks higher as we await the results from the fed meeting. the yen, the boj continuing to be set for two stage. shinzo abe will push through a fiscal stimulus package equating to 28 billion yen. the yen weakening against all 16 of its peers after they reported that such a program will be approved by the cabinet on august 2, citing his comments at a speech. andboj meets on thursday

friday and it is expected to expand the stimulus. the dollar is rising against the yen, up as much as 1.8%. yesterday, it fell the most since june. a busy day for earnings, look at the stocks bank index. unicredit, we have a stock sale announcement and we just heard that unicredit and santander cannot be producing this asset management tie up. 4.6%,he bank shares down second quarter profit almost entirely wiped out. it set aside money to reduce jobs and the ceo signaling possible deeper cuts. psa profit jumping 30%. jumping better than expected, europe's second-biggest carmaker promising it will remain on a turnaround. it downplayed the effective

brexit on its company. the french government and its confidence, a wave of new models will help it meet its profits. the biggest rise since january 2014. bank, the onesche we are watching for today after the ceo signals they will have deepen cost cuts after they reported their earnings and the second quarter profit was almost wiped out by a trading slop. let's get more with michael moore. what did we learn from deutsche bank? it is not looking great but we knew that. michael: we knew this was going to be the year of restructuring, and it seems to be on pace for

that. you he them talking about even deeper cuts, trying to boost capital and bring the cost income ratio down. -- ingoing in the down the wrong direction because they have some charges from the restructuring. santander also so earnings drop 50% and then we have the news about unicredit and santander not trying to combine their asset management. what is more significant? what sort of landscape will we see for european banks in a few years? michael: you are starting to see some hint of it. it will largely depend on the rate environment, santander continuing to get squeezed. unicredit making a lot of quick moves. the ceo has been in place for two weeks and he has acted pretty decisively.

the market is not living the news of a capital raise that at least he is taking some action. about takingking some action, a lot of the portfolio managers are looking at banks because of the value like we were talking about before, but as an industry group it is not looking great. it is hard to imagine european banks growing at this point. antonin: the business model is challenged by zero negative rates and there is a big npl issue that has to be addressed, so the focus on capital and what it means for share prices will be key, and this weekend will be key as well. we knew this capital had to be raised. you could have argued that hindsight is a beautiful thing and h one would be better to do it then h2.

one thing for sure, europe cannot outperform the u.s. until the banks start outperforming as well. that is a very strong historical correlation. banks, theat global japanese ones are challenged as well because of negative interest rates. the cleanest slate is probably on the u.s. side where you have the best chance of high-growth or higher rates. francine: thank you so much. global head of equity strategy at citigroup. hillary clinton makes headlines as the first female presidential candidate in history, we are live in philadelphia. ♪

francine: the democrats have formerly desk formally nominated hillary clinton, making her the first female presidential nominee. her husband was the speaker on the second night of the fractured democratic national convention, and made the case for her presidency. clinton'sow was bill speech digested? order as hed a tall attempted to unify the democratic party. some of his former challengers are feeling a bit disgruntled,

so bill clinton took the stage and delivered a largely personal speech and then presented his wife as a "change maker." she has fought for issues from health care to women's rights to children's rights. mr. clinton: some people say we need to change. she has been around a long time. has, and she sure has been worth every single year she has put into making people's lives better. clearly, bill clinton not really making a pitch to progressives as much as he is for independent voters. this is a tightening race with a recent poll showing that donald trump received a bounce out of the cleveland republican convention last week. francine: what do they need to do? do they just need to make hillary clinton more likable,

and what was the mood like? theredium was strong out in the arena, some of the supporters were booing her. kevin: the democrats really played up yesterday that this was a history making day for american politics. she is yesterday becoming the first ever female candidate for either major political party, and she appeared on video on stage at the convention making that case, saying she put the toughest and strongest crack into the glass ceiling if you well. today we will be hearing from president obama and vice president joe biden. the democrats bringing out all of their major stars, and yesterday they had an actual star, meryl streep, appeared on the stage. francine: is it unusual for the real star, hillary clinton, to

make a guest appearance on day two? kevin: it was videoconference. but i willoo rare tell you that yesterday in the packed stadium, chelsea clinton was there, bill clinton was there. this was a moment of party unity they are trying to project, trying to unify this party. i would expect more excitement today as president obama takes the stage. francine: i look forward to hearing what they have planned today. at the democratic national convention in philadelphia. "surveillance" is up next. we will kickoff the conversation on the reported massive stimulus package for japan but we still need to figure out how much of this spending could be new and how much we already knew about. we talked to geoffrey yu of ubs. andill be talking to banks

we also have the story from jean claude juncker appointed someone in charge of brexit negotiations. we will have plenty more on that next. this is bloomberg. ♪

fires hisa brief arrow. how will it affect friday's boj decision? ceo signals more belt-tightening. history, clinton becomes the first woman to run as a presidential candidate of a major u.s. political party. this is bloomberg "surveillance," francine lacqua