guy: welcome to "on the move." , we are counting it down to t europeaopen -- this is what we are watching. picking a fight at apple. is european commission likely to force billions of dollars in back taxes as brussel claims of state aid. how hard will it hit transatlantic laons. pain svoid its third election in a year? the parliament is holding a vote of confidence for the prime

minister as he tries to form a new government. jumps as thera impeachment is called, the death of democracy, but are investors undeeimating the sk we are now less than half an hour away from the european equity market open -- let me show ou whee we thihe lndon looksike it wl openso er this morning, continental markets looking firmer and the cac in paris has a similar amount for the dax. a little bit of a pop following what we got yerdayw comeuitis to u.s. . et' u thh th gmm nd show you wt's going on around the world -- in terms of e bloomberdollar index, is popping higher, up 2/10 of 1%

, a strong dollar this mornin,'c ppeng inmoty it is fter today and we will talk aut that later. let's get you details on whats happening with the first word news. david: thanks. razil's suspended president testified after an impeachment agnsr puemoccy arisk.paign she talkedbo her ture dsnt s s at e faces are all politically motived. u.k. jobseekers are starting to feel the impact of brexit and companies are advertising more contract positions to any permanent hiring according to an index by --

it says the average advertising is down 2.4% through july. japanese airlines have canceled ey are clo factories as as. precaution of the storm that could brg more rain and it is heading toward the northeast, areas that were devastated by the earthquake and synonymy. and gene wilder has died at the age of 86. he will be remembered by many for his lead role in the original "willy wonka and the chocolate factory." the comic actor has also starting classic films like "blazing saddles," "young frankenstein," and "th producers." global news, 24 hours a day, powered by over 26 journists ananalysts in more than 120 countries. this is bloomberg.

guy:blin ddles," p 10 fms. european regulators it lks like are going to breach at noon today in brussels on the competition case surrounding that.-- we have just had let's analyze what is happening. apple is apparently on the hook for up to $19 billion worth of cktaxes -- this could be europe's largest ever penalty. this is culminating about whether apple had a sweetheart deal. our brussels bureau chief joins us now. run us through the deils of what we know and what we are expecting to hear ter. the competition commissioner will come out at noon and layout exactly what the commission has found and what it believes in

terms of apple and its tax deal with ireland. the statecome in with aid investigation to say that the special arrangement apple has with ireland has given them an unfair advantage in regards to other companies. we will be listening very closely to what they have to say because we want to see what the languages. we are looking for billions of dollars and we want to see what the what t charges are, so we can see how this might affect other companies, and there are a lot of u.s. companies that are in ireland. guy: is this about ireland's tax rate, or about particular sweetheart deals? us, what isointing the reasoning of what the eu is doing? >> right. it's not about tax rate. ireland has one of the lowest tax rates in europe at 12.5% and

it's about special deals on top of tha it's not just ireland in these cases, the eu has also go againompanies a luxembrg, in belgm, andn th eerlands th companies like anheer-busch, that had to pay 700 million euros or so i similar cases. so that is wwe are looking, the ct that ere is special l thdea irelandas cut wit ale and the reasoning is it gives them an unfair advantage over other companies. guy: we will ave it the. we look forward to your coverage. at press conference could be comi up around noon in russels today with the competition commissioner -- we will hear from her and hopefully will take it to you live. he numbers ithisase our eye atering, enormous.

had 232st month apple billion dollars in cash. $24billion of it is held overseas. tes are growiver more contentious and the amount of money held offshore is absolutely phenomenal. let's join our guest for the next 40 minutes, but head of global fx strategies -- good morning. if u asompanies repriated all the money they had over, whatmpact would that have? >> that largely depenn ho mu is hedged, so it really depends on where it's being put. for the largest part it is being held in cash accounts and i suspect a large degree of that is currency based. i would think it would be marginally beneficial for the dollar. guy: when you look at what's

happening in europe and the implications of what's going on this isn't about tax rate in germany or ireland or wherever but nevertheless there ten about w economic performance is being delivered. policy isys, fiscal becoming the new focus of other taxand all the rates will be coming under greater levels of scrutiny. how on the same page do you think europe is right now >? how are you analyzing what comes next? es are largelyeurozone and eur. erare coming out of an where we h fcal onlidationthe righw it seems to be panning t -- at least the g drug is petering

out. that in ordern for eurozone to move forward you would need more relaxation on the fiscal friend in order -- guy: is that spending? when you analyze what's happening here and youthink about the shift in monetary to fiscal, hodoes it work? >> it differs, largely because the eurozone is such a herogeneouplace. in some countries y would definitely need some sort of tax reliein oer to provide incentives but in some other --ntries you need a lot of greece, i don't thinthe issue is about how much fiscal burden is, it's all about stability, fiscal -- stability wheitomesk the to expenditures. guy: stay with us. next, investors rejoice in the

demise of brazil's president, but have they underestimated the risk? and can spain avoid its third election in a year? can the prime minister rally the support he needs for a confidence vote? and as the family prepares an exit from south africa, we are sticking exclusively to one of their holding company falies. that's coming up. don't forget, a little conversation with this man, said vice chair stanley fischer. hewill be joining us at 11:30 u.k. time. this is bloomberg. ♪

guy::43, welce back. let's get your bloomberg business flash david ingles. david: thanks. apple is said to be developing new features for the ipad that desktops laptops and accordintoeople familiar wi it. upgrades include wider operating systems, and refreshed wa includes new versis of the desktop and macbook air. the company helps to shift the updated ipad software and the macs are expected to be out as soon as later this week. company hasping been suspended from trading

after plunging to the lowest level since 2009. that's after the agency reported its creditors refused to provide fresh loans for court protection. south korea's largest container line says it will do all it can andthe shipping industry, the main lender declined to comment. said tont bankers are be among theemployees have left ntarily om the perso, according to people with knowledge of the news. they are major industry spokespeople. -- has walked away from a takeover bid for hershey, rejected by the chocolate maker. they say they see "no actionable cap or word toward an agreement. "

it was rejected at $107 per share. that's your bloomberg business flh. guy: thanks. bril suspeed the prsint eyre isonal apal lawmakers,ay wod amountto "aolitical death sentence fhe country's democracy. [speaking portuguese] guess, oncee to aen i was held captive serious and painful illness made my existence shorter. today i am just as afraid about the democracy. reporter --oin rem was she in any way able to convince some of these senators not to vote against her? >> well, she wasn't.

ctually, her speecs very pate, very intee. public medis waiting hear and e dn't anythings new,he didn't ing ne fight or anything that would be a game changer. that now we just consider this is pretty much her la f urin this position. gu ok. when doe get the final rsul 20 wfinally kn she i?s gone >> this is probably going to happen by the end of the d in brazil and maybe the early morning tomorrow. that is because we have more than 50 senators lined up to speak, witna froboth sides, those that ar suppters and hersh are her critics

d that have been her critics since it started nine months ago. the discussions will coinue all day long in brazil and there is an expectation by the administration that the ving could happen at 11:00 brazil time but there is no clear signal that this will actually happen. benit guy: thak you very much. philippe. le's talk bout what's happeng in brazil right now, the litics taking and center in evybody's mnd, but behind thecenes there are interesting things goin -- this is an average ofrazilian corpe bond this you can see rate cuts, economic data deteriorati, the macro picture

loing faly blk and yet the maetis hein on th vic chancellor toeliver som ecic performance. the flow ibrazil has been lutely amazing. some companies missed out on this, south africa, but nevertheless it flows to emerging markets. the last couple days it has been moficult. let's get a take on where these currencies go next. fortunately we have unicredit's head oglobal fxrategy. the rally has been amazing. particularly the bond markets around the world as people have been searching for yields, and into the stock markets -- too far? >> don't think so. i say this he comeshe rally we have en largely depends on the field the market is gradually

taking over the fed. back in 2015 we had a temper tantrum, a massive set of emerging-market asset andight now i think the market has come into a phase where it realizes two things -- first of all that the dollar has been overvalued substantially for quite some time aat the same time it seeshe ds potentially moving by the end of the year but it's a very gradual pace. in tha respect the market is reaching out for yields right now without being worried that much about the possibility of action by the fed where they raise interest rates to quickly. from that perspective and when i combine it with the dollar valuation, i thi on e whole and absent vatility in the short-term it still has legs. they underestimating

the local domestic problemthe country has faced? the vice president has so much on his plate, and livering will be so hard. south africa, the list goes on. >> you are absolutely right. and this is one of the themes we haeetrying to push for que some time. the idiosyncratic factors are definitely at play -- i'm not tirely sure -- i still think it can strengthen from here. y mentiod to ocotries that definitely have problems aggards but at the same time -- guy: where do i get the biggest bang f my ? >> ti think ahas a wi room to re fromerand

in eastern europi would ate mostly on hungary and pond. guy: ok.ll thi asia we are minutes away from european equity market open. up next, the potential corporate movers in today's trading. including the shareholders that are meeting with the softbank takeover, very much in focus. th open is eig minutes away. this is bloomberg. ♪

guy: welcome back. 7:53 in london.

minutes away from the market open. let's talk about the stocks to watch. arm is certainly one of those stories that will generate plenty to scusthe ft takeover. theresa may i expect will adess th, the issue bein the u.k. companies being sold with nothing to replace em in terms of the product stream. you can see the stock has done pretty well. is this an argument that says the u.k. and the pound dropping is going to deliver, because of the fact that u.k. asss are cheap, people can come i weekend by what we want aa discounted rae, and as a result we will smooth the transition in a meaningful way? >> right, i have heard that argument many times. i would like to give it as the

pound dropping, cushioni the impact of brexit at the same e u. rightow is ch investing in highe evewi the softer sterling. a the uncertainty rains largely inlace -- we haven't gotten anything so far. cloudsre still a lot of in the horizon d as long as the uncertainty the, yes, a lower pound makes u.k. assets more attractive but at the same it. the uncertainty ofet as a matter of fact -- i think i see outflows. guy: t market is coming up next. positive.pointing

london is playing catch-up after the national holiday yesterday. ondon is expected to dip fractionally. plenty comi up. we will talk to stanley fischer. ♪

.

guy: good morning. welcome. you're watching "on the move." we're here in the city of london and moments aom tway fr start of pean trading. let's take a look at what is in focus this morning. aki a bite out of apple. can spain avoid a third election a year? rousseff, are

they underestimating economic risks? moments away now from e star of european tring. we are moments away now from some data of the of spain as well. we are expecting a positive open with the ftse playing a little bit of catchup on the downside. the market is opening up. that white line there is london. it went straight tough yesterday doing absolutely nothing as we enjoyed the bank holiday. we expect the purple and blue to go up and the white line is expected to go lower. looks like we're opening chge on the ftse 100 at 6.833. let me show you to spanish data which has come through in line with expectations. minus .3 meerwas nus.7st me around. in some areas, that is good news. the kdn

're seeing on the stoxx00. most markets on the periery are up a little bit mor the german market up ..5%. france laggi a little bit. caroline hyde is here. nice to see you. caroline: very ne toee you. ftse plays catchup. so toodo.k. gilts at the moment. whether not pension fund t ininsurers want to sell up their longer year and later-dated gilts. post jackson hole and the

concerns that we wld see the ited statehike as soon as september. if not certainly december. yields pushing up on the k. treasury. let's have a look at wh's happening. we're digging in now to the breakdown when it comes to industry, guy. focus on oil prices that toned dip a little bit lower today the reprieve. th united stes managed to s a record misme were so close in interprets of sll the desio get in equities. let's get to some of the individual stocks. a little bit of hen it comes to mercado. we might see wal-mart ocado.

i want to be looking at royal tch shell. loing toe selling up to $h20 million worth of gulf of mexico assets. lastly, i want to be moving on to a german stock. more to't be digging in he indian b.s.p. guy: thank you very much. let's get back to the data and the markets and the politics. spanish c. pimbings in line with expectations at minus .3, .7. that is not the real focus today. politics taking center stage. spain's acting prime minister

rajoy hopes to end an impasse. he can't count on support from san ocialist leader, pedro ch zench. today is critical. is he going to get over the line today? if he doesn't, what happens later in the week? reporter: well, today he needs an absolute majority in the 350-seat parliament. he hasn't got them going into the debate. he speaks today. vote tomorrow night. he is almost certain to lose that. hen he does that, triggers a second debate friday, two days later. if a handful of his opponents were to abstain, that would let him get through. at the moment they are all

insisting they are going to vote against him. that then takes into this two-month period of negotiation where is the politicians are trying to find a solution to avoid that election. guy: politics is the art of the impossible. why is it impossible for these people to find a deal? reporter: it is down to corruption. they would do a deal with the p.p. where they have common ground with policy measures. the problem is the system has not been able to hold them to account for these algailingses which have been floating around for seven or eight years now which makes it difficult for rajoy's rivals to do a deal with him. long-lastingle and will it be? reporter: that is a good question. probably not very stable. people are talking about a

two-year parliament. that south of thing. -- sorts of thing. if rajoy gets in, he is going to be behold on the the opposition they will stake their reputation to hold the p.p. on account of corruption. i will expect if and when he does get in, it will be a fairly rocky and short legislature. guy: thank you very much indeed. let's get back to our guest from unicredit. why are investors ignoring are they ignoring the political front? we have so many issues we face. terrorism. no government spain. greece backsliding.

they arey have decided not going to put their money to work here or there are bigger fish to fry elsewhere? guest: markets have a tendency to move ahead of the actual fact. with that initial massivive selloff in euro, we had a big selloff. one element is it is already priced. the other element for me is i think the market is taking a more top down view. they have now become accustomed and used to the fact that so originating within the eurozone. there are political hurdles. they will remain in place. absent, a really big fallout. what we should be focusing on is

economic data. i think it is fair to say the data has come a bit better than people expected especially in the aftermath of the brexit result and the referendum. from that sense, i think there is still a lot of value in european assets. i think the investors are taking that view. guy: he hasn't done anything, spoken much in terms of guidance for five weeks now. get the projections coming up. we get a decision. a press conference. the data is ticking along. why does draghi need to do anything or does he need to do something? reporter: we'll find out. 4 we'll find out coming out of the september meeting. on the whole we'll get a usual very strong pledge or promise to do whatever it takes along these

words or similar words in case things deteriorate from here. having said that, we have reached and and it is not just about the e.c.b. we have reached a status that there is a limb to what monetary policy can actually do. from that respect i think even if the e.c.b. does something, it will likely be sometime in q 4 subject to some deterioration in the data and potentially it will be somewhat margal but not really. -- marginal but not really. i think to e.c.b. is actually looking -- guy: would the market target a lower rate? guest i don't know who i think right now 110 is a strong level for euro/dollar.

i think remain at that level. guy: great stuff. coming up, democracy on trial. brazil's first female president ccusing authorities of a oup-d' etat. geelt into a debate as well. plus exits also causing concern in south africa. following capital out of the nation. the fallout continues. we'll talk to one of the portfolio company bosses and get his take on what's happening with this story. aural of this next on bloomberg. ♪

guy: welcome back. you're watching "on the move." lovely day in london. he ftse is trading at 6.833. we are going to be watching carefully as theresa may's new administration starts to get down to what a brexit actually means. let's catch up with the world ews. >> thanks. let's go to brazil now. the suspended president has

testified at her impeachment trial. rouseell spoke insisting the charges of financial mismanagement she faces are politically motivated. she will be permanently removed if 2/3 of congress finds her guilty. apple is said to be facing a potential tax bill running into billions of euros with an e.u. ruling as early as today. the european commission is expected to say that ireland provided the iphone maker through a sweetheart deal in return for creating jobs. apple said it had nothing to add to previous statements. ireland has vowed to fight any adverse finding. the european competition commissioner is scheduled to hold a news conference in brussels at 11:00 a.m. u.k. time. we'll bring you that here on

bloomberg. japanese airlines have canceled more than 90 domestic flights affecting at least 5,000 passengers. toyota is closing its plant as a precaution. the storm could bring more rain in one day than normally comes in the month of august. the american actor gene wilder has died at the age of 33. he is best remembered by many willie role in "the wonka and the chocolate factory" movie. he was in "the producers." he died on sunday in stamford, connecticut due to complications from alzheimer's disease. guy?

guy: to you very much indeed. a record number of overseas investments were made in the u.k. in the 2015-2016 financial ear. ryan has been watching the brexit developments. this is an interesting piece of data. is it really relevant to what's happening now? ryan: it is good news for the u.k.. it is good to have foreign investment on the rise or at least the number of projects funded by foreign investors rising by 11% year-on-year. it could be use for the government and the brexit, in a sense, a lot of this investment is coming from places you wouldn't have exited and the u.k. is repositioning the country towards. biggest andains the behind them china in the number two spot and behind them, india. 79 countries in all.

places in the world like latin america contributing more than they have in the past. latin american projects funded by latin america up 240%. when people like liam fox talk about moving away from the e.u. and doing direct deals with emerging markets in places like latin america, obviously they are encouraged by this news and say this indicates they are moving in the right direction. guy? guy: wages, you could argue the u.k. employment picture has been positive. wages haven't held up that well. what is the picture now? >> wages have not been great. we have a job search engine that does a whole bunch of analysis and they have come out with a report today that says salaries for the average advertised job in the u.k. have fallen by 2.4%. if you're a university graduate looking far job, the jobs

offering salaries about 5% this year than last year. that is not good news. also getting news that the services sector is week and confidence there falling fast. good news on the foreign investment front. not such great news in terms of wages here if the u.k. guy: thank you. s the u.k. getting poorer? guest: definitely there has been a negative shock into the u.k. in the i can't have math of brexit in the brexit we saw, because brexit hasn't really happened yet. i think that remains to be seen. it is not a done deal. i think it depends on what form of brexit we will get. brexit, we'll definitely be worse off compared to what the u.k. had before. i don't think it is going to

have such a lasting impact on u.k. assets, wealth in general. in terms of wages, you know, it is not just the u.k. phenomenal. we see it in the u.s. the relationship between labor market dynamics and the wage growth having softened quite substantially. and it is really the million dollar question is exactly what the central banks are currently watching now. i think further down the road, we're probably going to see some wage pressure. in the u.k., they are going to be a number of offsetting factors. i think right now that was the natural response for salaries to start dropping a bit largely as a response to the potential uncertainties that the referendum has brought. i think it is far too early to judge what's going to happen on a six to 12-month valley.

guy: what does it look now like in terms offer the flow in the u.k.? guest: the s.b.i.'s the inquires to show a slowdown. the numbers, you referred to april, up to the end of april. also a period in 2015 when there was a lot of turbulence where investors were looking for safe havens and the u.k. remained throughout all of these years a safe haven across these developed markets. it is difficult to make the case for f. dimbings' not to slowdown because of the uncertainties. that's first thing that matters from medium to long-term view. derek: we need to talk about the fed. we'll do that in just a moment. coming up, the conversation will focus on the fed. we're going to get some idea exactly where we go next.

stanley fischer is going to be 11:30. us at it is a standout store story for us. stanley fischer. the vice chair over the u.s. federal reserve. this is bloomberg. ♪

guy: 8:23 in london. welcome back.

investors continue to weigh the odds of a federal reserve interest rate increase. expectations have surged over the last two weeks. fed officials said the case for the hike is getting stronger. bloomberg television will be speaking to fed vice chair stanley fischer. do not miss that conversation. very likely to be market moving. mr. fischer has delivered market-moving comments over the past few days. i expects we'll continue that. our guest is still with us. the market is pricing in a hike. 25 basis points. 25 basis points. how significant that? guest: for the economy or the exchange rate? guy: the exchange rate. guest: i think taking up face value it is not. it points to a lower dollar, especially against majors. what really matters is the

market's expectations and to that extent fed communication going to be important about what the path of these fed tightening policies is going to be. our view has been all along that yes, we should expect another hike by the end of the year most likely in december, but in order for this to make a difference for the dollar and push higher, you need to have a severe repricing towards far more aggressive cycle by the fed. i still see the dollar overvalued. short-term latest comments may provide some marginal -- but i still see the dollar in decline. guy: what is the half-life between the cuts? are we going to get another huge hike? guest: this goes very far out. this will largely depend on the data. the way i see it is when i look

at the mandate over the fed, i see this has been largely met through various extents. as far as the labor market is concerned. these bottom line is ople feel it needs to be a cautious stance buzz they still feel there is some fragility in the system. unless this thing peters out in the next nine months, i think we should expect a very mild tightening cycle by the fed. guy: briefly where is the dollar at the end of this year? guest: i think it goes down by another 3% to 4% and potentially will have corrected it overevaluation by next year meaning another 5% in 2017. uy: thank you.

up next, preparing to exit south africa. we'll speak to one of the holding companies. ♪

guy: welcome back. you're watching "on the move." 30 minutes into the trading day. here is the picture of the markets across europe. london playing catchup today. dax up 4%. cac outperforming. 4,466. ryan: let's kick it is off with royal dutch shell. after its acquisition of b.g., up just a tab today after announcing they are going to sell some of their assets in the gulf of mexico. shell the biggest producer of oil and ghass the gulf of mexico. also suffering from nom not so great profits last quarter.

we saw the worst profit in 11 years. shell trying to improve that. selling some of the assets that don't give the best returns. this is one of the case where is you have an oil service company saying they have no bad newsened that in market that is good news. ares up, ocado finally, some takeover speculation wal-mart, the company that the u.s. retailer that owns in this country might be interested in buying ocado. not the first time we have heard these rumors. that has pushed the shares up. all green here in general. stoxx 600 moving up. guy? uy: thank you very much, ryan. the latest indication that jacob

is losing his grip on power in south africa may be the decision of a wealthy indian family to -- -- assets in the country. joining us is the c.e.o. of the holding company owned by the family. good morning to you. thank you very much indeed for taking the time to join us. how much of a surprise was the news that they are going to be selling out of south africa to you? >> well, you know, they decided in april to step down from active roles. suppose a logical step was to diverse the shareholdering. guy: this is completely an apolitical decision? any people will question that. >> i'm sure they would, but you know, i can tell you the

reaction since the weekend has been lots of people calling for opportunities to buy in the business. it is definitely a business on -- sound business principles or we wouldn't have that kind of interest. guy: can you give us a sense of how the price is going to work? you have expressions of interest. how do you think the price is going to unwind? >> i suppose there is never a right time to sell a business. we have had some business from some international parties. and taking talks to a certain level. from our point of view, we would to razy to close our eyes just one party. guy: when do you think you'll close? >> well, our commitment in the statement saturday was by the end of this year. guy: do you think that is a

realistic timeline? just in term stovers process, that it can be executed that quickly? >> we believe it can, yeah. just based on the interest of since the announcement. the talks we have been engaged in so far. guy: you have had interest in all of the businesses? >> well, you know, several people have come for a little bit. our view is we prefer to kipet hole whole. let's see what happens. at the end of the day, especially a decision how they close the matter. yeah, i think we have had interest in whole and in parts. guy: it is not an expression of concern about the political environment, is it an expression of concern about the economic environment in south africa? > i think you know the great created by the

media. the suggestion is that why would people want to bite now if it wasn't for the sound business principles in place? guy: do you they the operating environment would ber's, though, if it were not owned by the -- that the banking could expect to improve. would the ease of doing business actually change? >> i think they have been singled out for some really cruel and harsh freement treatment for a family that came in and invested all of their funds in this country. never taken a dividend. created 7,500 jobs. it may cause some rippling effect on other foreign investors and they may want to think twice about the environment they are investing in. we hope that it will calm down. that is view over the shareholderer. perhaps that will set us up on a

solid footing to go forward. solid footing. you think business will be easier once this happens? >> i think the shareholder's view is if they were out of the way perhaps life would be easier for the businesses. that's why understanding of the shareholder's view. guy: how will these businesses operate without a local backer? who do you think is going to be the buyer? a domestic buyer or a foreign buyer? how do you think it is going to work? >> i think we referred to an international interest we have. that is a real intangible offer we have. there have been lots of local people who made contact with us to engage in conversations as well. guy: do you think -- jouths of curiosity, there is concern at the moment that we are going to see a downgrade rating for south

africa. how much of an expression of all of that potential bad news oming down the pike is this? >> you know, we have gone through i think some tough times over the past few months. i think we have come through 12 months of really tough times. you know, i don't think it is going to get that much tougher in my view. as long as we keep our eye on -- big picture, our view is it will come through quite nicely. unscathed. guy: you're effectively saying that the reason the shareholderer is selling is because of the toxic environment created around them. nothing to do with their relationships with pretoria, etc., and you're making that very clear.

nevertheless, you're also implying there is a political discount or a media discount applied to the businesses. how big do you think that is? >> from our point of view, i'll say we are fundamentally good businesses. all of the businesses are in very good shape. the fact that we have people calling us and engaged in conversations is what prompted the sheryl to sell his position. rom our point of view, i think all of the business is profitable. all of the business is having a good market share, contrary to the public position, probably 5% less of that business is -- in terms of our 2015 balance sheet. it is a business based on a very broad spectrum of turnover. guy: how much do you think

business will be -- how much more do you think the business would be worth if we were to see guptas not being involved. how much more would the business be worth were they not involved at all? >> i think you know any shareholder that would wlook at the business in interpretors business is funneled mental. there wasn't any lack of reaction from potential buyers. from yesterday we had buyers coming out of the wood work and wanting to engage on the business. i don't think there is a discount at all. i think it is a very good business with good fundamentals in place. guy: do you expect ca -- a downgrade for south africa? do you expect the ratings to be cut?

>> i don't see why it should be changing. there has been much speculation about why it should change but the fundamentals are in good shape. i think we have a good plan for growing our economy. guy: is gordon the right man for the job? >> i think i have a great respect for minister of finance. i have known him for many years. he has brought son-in-law good discipline to our treasury and good leadership. a d.c. -- oubt he is in our movement. he has paid his dues to our movement. i have great respect. guy: there have been reports -- let's talk about him a little bit. is that the case?

>> i said that in the newspapers. i've seen no further evidence other than what is reported in the newspapers. guy: just to nail that down 3. -- down. to your understanding, you're the c.e.o., no papers have been filed? >> certainly not. certainly not. certainly not. guy: a final question. do you think you'll carry on being involved in the business? what do you think your future is within this company? >> let me say to you, saturday was a sad day for me getting the news from the shareholder. i've been this the group for six years. dealing with outside forces and internal stuff and colleagues. i'm very saddened by their move. of course my future is will be decided by who the new shareholder is. guy: thank you for sharing so

much of your time with us. up next, you have got to pay to play. a key ally of angela merkel says the u.k. has to chip into the budget if it wants the benefits. we're going to get into that debate next. this is bloomberg. ♪

guy: welcome back. lovely london today.

the market flat. playing a little bit of catchup. the rest of the continental market a little stronger. we have got some sunshine here. what do we care? we're back at work. >> let's talk about am now. they are said developing new features for the ipad. according to people familiar with what is going on, software upgraced will include wired operate systems and in terms of the refreshed hardware for the mac, it includes new versions for the desktop. they hope to reship them by next year and the mac are expected as soon as 2016. shares in south korea's largest container line were suspended from trade after plunging to the

lowest level since 2009. creditored refused to provide fresh loans in a move that may boost the likelihood of protection for the company. the company's restructuring is hard to accept. they will do all they can for a covery even if it -- now nomura investment bankers are employees among 17 moving they were manage directors. a spokesman for nomura refused to comment at this point. mondelez has walked away from takeover discussions with hershey. two months after the bid was rejected by the chocolate maker. the owner of cad burr said it

cadbury sees no path forward. that's your bloomberg business. guy: the u.k. will have to pay into the e.u. budget if it wants the market advantages. england's 's prospects. >> if someone wants to benefit from the european union, he also these contribute to the cost of that operation. -- before the referendum nobody talked about that fact. guy: let's pick up on the

conversation with the man who has it. why has merkel not defined the regulations with britain? >> she has been very careful not to create the impression that the negotiation would already start because britain has officially triggered the brexit process. that's the reason why. she just wants to say well, first britain has to move and then we will move. guy: ok. so we'll wait for the brits to decide and wait for london to figure out what exactly is happening here. one of the defining characteristic turnovers e.u. d the migration story as a backdrop, you can understand why freedom of movement is so important to that. give us a sense of how important it is, know. >> i think it is nonnerveable.

non-negotiable. if the e.u. would allow britain to get away with it, to abolish t, i think it will put a bad precedent for all other countries that might want to lever the e.u. the message could be you can basically get a special deal when you leave. so that will not happen, i think. that simple. guy: is there a sense in ber explain the u.k. doesn't have its act together. doesn't know what questions and what ideas it needs to be debating? that actually the brexit process is going to be slow. is there an understanding of that in berlin and that's why we're not feeling pressure here? >> totally. i think angela merkel has realized that the new british

government simply need time to get its act together and to decide what it actually wants and how it wants ost to do it. maybe there is even the silent hope that in the end, brexit will never happen. guy: silent hope. thanks very much indeed. thank you very much indeed. up next, we're going to carry on the brexit conversation. we're going to look at how the sterling crash close to referendum has turned some currency derivatives toxic. this is bloomberg. ♪

guy: welcome back. you're watching "on the move". let's talk about the highlights rom the day ahead. due to hold a general meeting on a takeover by saft bank. and then talking about apple. let's talk about what's happening surrounding the rexit. some countries' derivative lives are toxic. i have seen this movie before. we always get these kinds of things happening wubs once you get a big currency move. this time different? >> the difference this time around was the brexit was such a

large and unforseen kind of curn see move. you're absolutely right. there are aspects of this story which are familiar to anyone who followed the financial crisis and the fancy derivatives and many people hoped we moved on but seemingly we haven't. businesses up and down the country -- there are designs to get them over their currency costs in the future. there are triggers that are hit. people end up having to buy 10 times more currency than they need and end up hugely out of pocket and unable to pay. guy: is it the banks that are involved? he banks did this before and got pinged for it. you would think they would have

learned their lesson. >> they are still involved to leaser extent. nowadays you have kind of smaller foreign exchange rokerages. they hire people that will phone um businesses. we heard people getting like five phone calls a day from different fx brokerage firms saying we can help you address your foreign exchange costs. the banks have been burned before. these are firms that are essentially acting although they are regulated with much less scrutiny. guy: in terms of precedent and what happens next, what do we understand? >> we're at an early stage. brexit -- it will be subject to negotiations.

people will say i can't afford to make payments and will try do some negotiation. we'll start to see where businesses fail in a few months as they come through that process. guy: thank you very much indeed. liam vaughan joining us. as we head ourkts a quick check on the markets to show you where we are now. the cac is being led by lafarge. the dollar rising against yen. the mining stocks are softer today. the big story for today. apple and there is a press conference coming up and then stanley fischer, the vice chairman of the fed. that is a conversation you do not want to miss today. "the pulse" continues the conversation here on bloomberg television. i'll be joining the bloomberg radio team for the next hour.

the market is flat. this is bloomberg. ♪

forbidden fruit. apple is facing a tax bill as the eu is set to rule -- september -- morgan stanley picks the fed will not hike next month. eye writers markets jobs number. eye fridays and jobs number. ♪ francine: welcome to the pulse life from bloomberg's european headquarters. i am francine lacqua. let's check quickly on the