anna: central bankers at west as investors wait yellen at jackson hole. war.ck to the trump's threats triggers concerns over congress's plans. a failure to lift the cap could spur a sovereign rating review. i'm a call -- anna: britain said to one the eu back to add its biggest contributions to the european investment bank. >> hot or not. samsung unveils its smartphone trying to win back its trust

after last year's fiasco. ♪ anna: a very warm welcome. i am anna edwards. manus: i am manus cranny. today is a little bit risque. hasn't the t-boned market that its key boots on. we are going to jackson hole. the market is getting worried about the debt ceiling. states coulde net be under pressure. what does the market do? they want their money and they wanted now. they want a premium. -- they want it now. they want a premium. they want their money for october and that king in the you curve is because -- in the yield

curve is becoming more pronounced. they want a timely readdressing of the debt ceiling. manner. a timely anna: they are concerned if they do prioritize the repayments, what does that do to the other parts of this spending obligations? it would be in uncharted territory. we'll discuss that later. in terms of the reaction, it was interesting when we were covering trump and everything he has to say about the wall and nafta, he didn't seem to move markets all that much. it didn't seem to make markets fall off a cliff. by .1% on the msci asia pacific. still another date to go before we hear from yellen and johnny. all of the excitement that starts today. we have the euro in here. pretty flat now.

that wasn't the case yesterday. manus: nice today. anna: we had this comment from the estonia central bank governor. he downplayed the scope of the recent gains saying it is within the corridor he monitored. there is thought to add, paul ryan in the gop are up for reelection exterior. with the gop really risked shutting down the government? -- would the gop really risked shutting down the government? anna: that was one of the comments we got yesterday. i was doing research saying this is a person who doesn't have a great deal of goodwill after the charlottesville event. that is another reason markets are not going too much on what he has been saying. manus: we put cable in here. we have got a roster of data,

the gdp came out today. where are we as far as the pounds trajectory? they are upping the ante in ante in terms of what is taped upon. [no audio] anna: something to look forward to. in terms of the what your holiday lands -- in terms of what your holiday plans are. let's head to juliette saly. juliette: anna, thank you. donald trump threatened to shut down the government over his border wall could come to take the job of raising the debt ceiling. congress needs to pass a spending measure. it is facing a deadline to raise the nation's debt limit. republican leaders don't have a plan or how they will proceed the one scenario is to package

the two together. the u.s. is pairing another round of sanctions to top -- to punish the government of venezuela. -- one of the people said the next step in the campaign to pressure the president is still being debated within the trump administration. assured under the leadership of president trump, the united states of america will continue to bring the full measure of american economics and diplomatic power to bear and until democracy is restored in venezuela. juliette: japan's current run of economic growth provides in now or never opportunity to tackle the nation's debt. that is according to the lobby group, the japan association of corporate executives. the chairman says difficult measures should be tackled in a

good time. -- over its contributions to the bloc investment bank. the u.k. contribute about 16% of the capital in the european investment bank which the eu uses to fund infrastructure projects. theresa may could seek reimbursement of some 10 billion euros. germany's free democrats say they are under no pressure to form a coalition with angela merkel after next month's elections. he was speaking with exclusively with bloomberg. importance.ot of it is bring our ideas, get this organization running again, because there is one thing. , ite don't do it this time

will be a killer. juliette: global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. stories at topre . we are seeing japanese equities volumeand volume -- and it elsewhere, it is a good day across asian equity markets. agent investors seem to be taking whatever donald trump says with a grain of salt. have a look at hong kong's market coming back after the typhoon closed trade yesterday, up .6%. in terms of other stocks, we've seen a real estate developer in hong kong surge after a couple -- afteres after it's it saw an 84% jump in profit. underlying profit in sydney also looking quite good.

one of australia's biggest supermarkets is down. it continues to struggle with its big w division. it took a $150 australian dollar hit. this chart.at some casinos and hotels still being shut down after the typhoon. nomura saying he could wipe out 700 basis points over the month of august. apparently the gaming floor is absolutely ended -- actually empty. they are forecasting we could see 2.7 billion down from their previous forecast of 300 billion. manus: juliette, thank you. european central bank auto hansen said he doesn't have any concerns about the euro.

the estonian central bank governors says the dollar is a reflection of the momentum. the focus should be on the crossing policy message for the part of stimulus and 2018. anna: officials appeared to discuss how to wind down there on purchase of ram and ahead to jack's -- purchase of ram and ahead to jackson hole. you.morning to we want to talk about central banking. jackson hole is upon us. when kansas isn't in kansas anymore. we are heading to jackson hole and we are waiting until tomorrow to hear from yellen and draghi. the big things for you, are they going to be around our set prices? the things that central banks are not supposed to look at. is it going to be around why don't we have more inflation? ben: all of those. the crucial part is inflation.

the growth conditions look reasonable. the asset price element certainly something the federal reserve incorporates in their deliberations. the inflation outcomes that we see has been a cross within a global issue. two months ago, it seemed to certain that the ecb would be announcing a tightening program much more in the balance because of these benign inflationary outcomes. yesterday we actually in light ,f the central bank just spoke european manufacturing pmi is pretty strong. slamdunk, more tapings announced. anna: did not give as many clues yesterday. manus: a bit of a back swipe. after that he lost me. this is what we were looking at.

we talk about the former president of the federal reserve, alan greenspan. back in 1999, he was facing the same series of issues. i wonder where the debate is. down.al consumption is the risk is just greenspan went into a major hike mode. i am not saying that is where we go but our is the fed should stick to plan and keep raising rates. do you buy that argument? ben: i do buy that they should keep raising rates. market has it about right that we are looking at a single rate hike over the course of the next 12 months. the balance sheets will be reinvesting coupons. i don't think the balance of the fed needs to see the white of the eyes of inflation and it is

not there. really write compelling reasons that we think innovation to come to the u.s. ex line i don't think there is going to be a gain. anna: talking about whether the ecb is concerned about the strength of the euro. we got a story talking about other central banks that could express concern. they are not all going but to some central bankers can's -- anchors could express concern. it here concerns about strength and currency from these central bankers. how did the market react there? really with the market wants to understand is what you are going to do? have cause i pegs -- quite as i pegs.

their hands are tied. they can use the media to add to the private conversations they have to express their frustrations and their demands and try to influence policy. liepower of the decisions within the european central banks. these outlets will be used to try and express policy desires. the impact they can have. manus: draghi coming he didn't just draghi, he didn't really take the reins. the market itself is paying a huge premium, three times the amount. this is your dollar won -- this is euro dollar won. indeed, dollars turning. -- dollar sterling. how real is the risk? ben: in the business of building

balance portfolios, we lean portfolios on the basis of how we assess the risk. , it isn't action slamdunk. these things are in the balance. there is clear evidence the euro has been strong and although it is not creeping into the evidence, it is hurting manufacturing. of course, it could. it reduces competitiveness and it brings in deflationary forms. my long answer. in the balance so the risk is real. anna: it feels like the last couple of jackson hole's we have gone in saying interest rates are so low. how can they stay so low? to illustrate the global nature of the low interest rate environment, one of my colleagues found yields dropping below 6%.

anyone'st tapping into knowledge of lending money to the ukraine, mongolia. even if your government in a orce that has been war-torn is war-torn, you have other major headwinds. you can borrow at rates that are ,ower than 6% and even the fed lending on treasuries at 6%. ben: they are extremely low. they sent alarm bells ringing. these particular trades are something we are about to dive into. we would necessarily be igniting concerns about junk bonds because these cyclical forces are still quite benign. banks, we don't believe will do something that can throw

risks into turmoil. in his the classic assets that behave on the back of the sentiment. dous: they are not going to that they haven't already flagged to us or told us. then, he stay with us. you stay with us. anna: we bring you an interview in jackson hole at 12:30 p.m. u.k. time. that kicks in today. manus: as you have been saying, the kansas city fed composing gets under way in wyoming. anna: we have a gdp reading in the u.k. for the u.s. manus: the european central bank , ignazio visco speaking. coming up --

anna: donald trump threatened to shut down the government. what is the risk facing the world most popular economy? this is bloomberg. ♪

manus: looking at shots of hong kong harbor the day after. that is better than yesterday morning. hang seng is up a half of 1%. looking back at previous typhoons, the city's benchmark hang seng opened down on trading day falling for the last six occasions. the market closed down during 1975, 1983 and 1999. anna: let's go to bloomberg business flash with juliette saly. juliette: thanks peter deutsche bank has have the price of its research as competition mounts. according to three people, the

german lender plans to charge asset managers 30,000 euros a year prompted and uses. uses. year for up to 10 -- a year for up to 10 uses. fcc's perusal -- approval says it will not hurt competition in the growth is market -- in the grocery market. big tex companies will become too powerful and president trump has singled out amazon. its dividendaised payment from one cent a year earlier. that is after a surging commodity prices including: megan nice. -- including coal and manganese. prices of raw materials soared setting the tone earlier in the

week. samsung has unveiled its new smartphone as it tries to put the fiasco of its previous model behind it. company $6 billion. it is a big screen in advanced features. its introduction comes ahead of new phone launches from apple and google. manus: thank you very much. resident trump's threat to shut down the government over the wall creating concerns over capitol hill. he would veto a spending bill that would fund -- anna: codices to pass base -- congress needs to pass a funding bill -- a spending bill that would fund the wall. >> i don't think anyone is interested in having a shutdown.

while we work on doing what we actually said we would do, what we have done already is to control our borders. i don't think you have to choose between the two. manus: paul ryan biting back. ben gutteridge, it is interesting you have trump yesterday, and his position. he we are, the grand old party speaking here. this is ryan saying we are not in the business of looking for a shutdown. what was the discussion yesterday? recognition that the authority really does lie in congress. it does lie with people like paul ryan. when they say it is not in the interest to have a shutdown, we have to take that as a red. it is not like shutdowns in the past. it is not a split congress.

republicans have the house and senate. they will be playing a game of chicken with themselves. we recognize the short-term traders will get nervous around calendar events. as you said in the introduction, i don't think these threats are particularly credible from donald trump. any modest market reaction -- anna: we were discussing about how we didn't see an enormous amount of reaction in the early stages yesterday. we have got these comments from fitch which are interesting about the threats to the aaa. what struck me is they are saying if not meeting other commitments. this is not about them servicing their debts. debtsould service their but fitch has to be worried that not meeting other commitments. you cannot be aaa just because you meet your debt commitments.

ben: i think there a cry for an orderly conclusion in this with conclusion to the debt ceiling issues. whether we get that, i am not convinced we will get that does everyone has to be seen battling to the final hour for the will of their electorate. perhaps only the last minute to they receive that for the health of the economy. those types of aspirations from the credit raising test credit rating agencies may not be forthcoming -- credit rating agencies may not be forthcoming. may threaten some sort of negative watch. i don't think it is going to affect asset prices so much. manus: we have had the downgrade before in terms of the aaa. that was for a whole set of other issues, but the question for markets is -- it is getting kinky.

i'm talking about the market which is this desire to have your market at a premium. the market is getting skittish. should i be really worried about a aaa disappearing in the united states of america? ben: no, i don't think so. there are short-term traders out there will trade on news. there is money to be made good on the medium term, we don't think a shutdown is happening. would beasis, we selling yields at a premium of 1.4 on your chart. anna: thank you very much. he stays with us. we will turn our attention to stocks in our next part of the program could manus: you will like this. the fed today -- program.

manus: you like this. we'll bring you the research on the old adage. is it racing? we run the numbers. this is bloomberg. ♪

anna: welcome back. 2:30 in the afternoon over in tokyo. the dollar against the yen fairly unmoved, 109. the conversation over at jackson hole is on to be a feature of the market conversation. things kicking off today and high-profile speech is taking to the stage tomorrow. we will see what we get from the japanese side. let's check in on the markets. here's nejra cehic. good morning, nejra. nejra: we are seeing equities struck off the weakness in japan. gains on the kospi and hang seng are higher after opening because of the typhoon.

let's take a look at this index here. slightly higher. everyone look at the distribution across industry groups, we can see material stock on the front foot. we are seeing metals bid and shanghai. text also outperforming. we are seeing crude being supported the data is today. telecoms and industrials underperforming. the dollar yen, you showed the light -- the life price. this is a technical chart showing the break of the lower dollar yen gap band opening up for further losses. so far there's a number of support levels for dollar yen haven't fallen below. certainly this currency will be in focus along with some others like the euro and jackson hole. -- bureau at jackson hole. the london metal exchange after some weakness yesterday. this chart showing trading in

shanghai having its busiest month ever, speculators taking their cue from some supply reforms on the government side. manus: nejra, thank you very much. a new addition to daybreak on your bloomberg in mobile. let's take a look at some of the top stories that we have got for you today. jackson hole, we talked about it. it is a gathering. fostering dynamic global growth. it may not see much in the way of grand policy decisions. central bankers try to jawbone their currencies. the backdrop of solid global mewth in the prospect, they -- they may need more than words. anna: we focus in not only on the spectacular scenery -- every time it looks amazing. we are focusing on the commentary coming through from central bank. eib funding around britain and

britain will want the eu not to take an aggressive stance over contributions to the investment bank. that is what the eib is. about 16% of the european investment banks capital that is used to fund infrastructure projects. pounds lastlion year. the final story. the purchase of whole foods. it will equip u.s. antitrust approval and it shows any concerns in washington about the growing power of tech companies wasn't enough to derail the online giants biggest acquisition. anna: let's talk about stocks. september 16 -- that is not today. the horse race which is supposedly the the world's

oldest classic. the auction's biggest social occasion. manus: what about that old adage today and buyng again on ledger day. gutteridge is with us. this is your forte. let's bring it to you. do i buy on ledger day? is that the empiric? what is the empiric proof? ben: the history of the past 10 years has shown that that is a good trade. this year, it is an interesting set up going in because like higher years, we have seen one or 2% slump in the stoxx 600 since the beginning of may. however, the big question is the

typical september through may performance is about 4%. this past year from the autumn of 2016 intoumn the spring of 2017, clearly we had a huge rally which set the market up at pretty lofty levels from a valuation perspective with a lot of expectations going through on the standpoint of earnings, economics, european politics being better than expected. bar andwe have a high as we see it, there is positives and negatives. anna: i am worried about calling anything the new normal. how do you approach an old adage? do you invest around it? -- yet to findl big reasons. ben: it does feature if the evidence does stack up. .t has some logical merits people go away from the summer in the make him back.

it is only going to have a modest impact on our investment thinking. we would still be under the thesis that people should be buying because we think markets have room to run. manus: it is not only just empirical evidence. this is the core of it. you still expect continued high single digit growth. of prettye underbelly empiric evidence, isn't it? tim: there are opportunities and there are some hurdles. the big opportunity we see sustained, ongoing economic expansion. we see pretty good earnings growth. the second quarter or first half of this year has been about 9%. the expectation going into the second half is just slightly less than that with another 9% in 2018.

if you look broadly across market expectation. we have seen since late last year on a relative basis versus the msci world, the stoxx 600 has outperformed and it has outperformed at the same time we have seen a long-term negative trend of relative earnings turned positive. anna: european stocks, two stocks look expensive echo it is going to be a very popular trade this year to buy into the eurozone recovery in the european stock universe? valuations are as cheap as they were. evaluation relative. they are so cheap and the growth outlook is ok. as we talked earlier, i don't think draghi will do anything to disruptive. euro has been strong. it is been on a common currency basis, dollar investors, the

euro has helped add to the cultural return. -- goingee that being forward. anna: taking too much of an edge across the big exporters. ben: that will be a headwind going forward but europe is much more acquired to global growth than the u.s. it will be an offset to headwinds of euro strength. manus: we have run some of the numbers. take.so do a broader where are we in the debate? chief -- think the ,im: we think the chief risk the mega cap's on average across the stoxx 600 have something on 45% of their60% --

business abroad. it is a significant piece of their revenue. manus: you have translated that. stoxx 600, 35%. the docs 2% or 3% off their revenue could we are going into jackson hole, jawboning about currency. anna: one of our colleagues made that point saying they cannot all be complaining about strength in her currency. >> from the currency perspective, it is an interesting thing. a lot of people talk about the dollars cheaper or the pound is weak. the euro is in as strong -- isn't as strong. the time we had political concerns from the u.s. perspective and we have had a positive surprise in europe which i referred to earlier, the french elections, better economic opportunity with the pmi being at also dennis being

at almost unheard-of levels -- being at almost unheard-of levels. with currency being an issue for exports and an issue in the way that european earnings are calculated. manus: if you talk with a european growth, european manufacturing, they ran the numbers. manufacturing and services indicates germany should grow around 2% this year. manufacturing in france shut up. take the earning stories and translate that into the forward look in terms of growth, this is perhaps validates. we're not at the point where all the money has come back in. tim: very true. i think it is going to be a bit of an ongoing debate from the standpoint of where do we see economic expansion, does pmi stay in the mid 50's which is supported locally.

do we have ongoing, solid, sustained growth in china, in the u.s. which will feed into that export story? it is also small caps i get decent exposure. anna: when you're looking around what to buy, as we head toward a decent autumn for stocks which of the sectors get your attention? ben: where focusing on valuations. we are a u.k. house. we're looking at the u.k. stock market. callw that is a tangential but at the moment we are -- we don't expect the u.k. economy to shoot the light solid -- chewed the lights out. -- shoot the lights out. in that sector, that looks appealing. manus: in terms of the flow, we talked about money. everybody raced to position themselves. what are you seeing in terms of

the flow of money? to take moneyd out of the u.s. into europe earlier this year. we are now overweight european equities. we are not adding this juncture because we are in an overweight position because they are still risks out there. could happen over the weekend, italian elections aren't too far away and that is one of the geopolitical risks that we do think is being discounted in markets it anna: tim craighead, thank you for joining us and ben gutteridge, he stays with us. manus: we are going to talk about samsung because just i suppose visitor moment -- i suppose this is their moment. previous model exploding which cost $6 billion.

anna: despite this, jay y. lee being on trial, samson's ability to sell hardware and remains profit remains intact. elstrom.s more, peter great to have you on the program. tell us about the new phone. the note eight had its debut overnight in new york. they had quite a fair in the city. they shut off the new phone. it is bigger than the past versions. it is 6.3 inches across diagonally. they pioneered this idol of big phones. they pushed the market with the note well before market did. it has been a success. there was the fiasco last year with the battery problems in the note seven. there was talk about scrapping the note brand because it was such a problem. they decided to keep it intact. they came out with a note eight and their message is not so

subtly that they feel if they fix these problems -- they fixed these problems. they feel like they will be strong demand. manus: what about the effect in regard to the competition? apple is expected to deliver their phone ahead of thanksgiving. where are we? peter: this is a very important moment strategically for the company's. apple is coming up with their 10th anniversary iphone. reporters at the till quite a few of the characteristics. historically it has tried to get up little before and show off features a half that the next iphone won't have. up in markets like the u.s. other markets, samsung has to worry about other competitors. china, it's the biggest .martphone market in the world

these other competitors have been pushing the envelope in terms of technology even more than apple has. manus: heater alstom with the latest -- peter alstom with the samsung. ben gutteridge, the head of research and he is still with us and when you see samsung and you see apple and the whole debate ,bout phones, facebook, apple where are you in terms of technology deck of how much technology -- terms of technology? how much technology are you seeing clients take on board? ben: we are into it. we like it. manus: hardware and software? ben: we don't get too hyped about the story. that wethe fact recognize on most of the phone components there are valuation challenges. the analysis we conduct, we are

believers in the story. we talk a little bit more about them individually. i think there is a risk out there that these companies absorb all of the revenues that nearly all other companies are currently deriving. they are extracting revenues, disrupting other this is his. -- other businesses. i wonder what the risk is for the growth models. you keep hearing them mentioned in a situation where they could be getting too big. i wonder whether those regulatory risks around samsung in the united states. if: the clear risks are growth really sussex on reading ,nd there is more growth around i think the risks is something i would recognize but it could be the case looking at amazon, regulatory imposition may mean

some sort of breakup and if they were to sell and of u.s., that could -- aws, that could elevate the company. manus: in terms of break it up and create more value. stays with the daybreak team. anna: navigating a minefield here. we will discuss the string of warnings from british companies. this is bloomberg. ♪

manus: 1:50 a.m. in york city. futures are flat. the market seems to be holding on to paul ryan's comments as the grand old party is not that focused on the government shutdown. people market may have some thing is to say. it0 a.m. in london and let

bloomberg business flash. juliette is in singapore. juliette: which a bank has have the price of its -- deutsche bank has have the price of its income. according to three people with knowledge of its plans, the german lender plans to charge asset managers for 30,000 euros for 10 uses. a spokesman for deutsche bank declined to comment. amazon's whole foods deal one with antitrust approval. the ftc's approval indicates that doesn't think the tie up will hurt the market. the big tech companies are becoming too powerful and trump has singled out amazon. of doorstep lending unit providence financial has a zero value. providence home credit division

may lose before tax this year. the bank cut its rating to mutual from overweight and shredded it's price target by almost two thirds of 1200 pence per share. miners out of bhp that is after a surging commodity prices including: manganese -- including met -- including coal and make any's. prices of raw materials sort. uber says it generated $1.75 billion in adjusted revenue in the second quarter this year, up 70% from the -- up 17% in the prior quarter. the figures come after the company faced an investor revolt against travis kalanick over a

self-inflicted fiascoes. anna: juliette saly with an update. let's continue our stocks conversation. a 66% collapse in providence financial -- providence drop was the latest. manus: oakwood into the research compounded by bloomberg, four of the five against one-day price retreats on the benchmark index were u.k. stocks. bpp: that would include the because although it was sizable, -- manus: 22%. if you are wanting what the bpp did this year -- wondering what wpp did this year, 22%. risks and thethe stoxx 600, they have been majority of these big moves, 11

of the 20 drops in 2017 have been in the u.k. is our market really that much -- atk it i was told risk? i was told look at the ftse. ben: look at the markets. manus: would you buy bhp billiton? beenthe broader story has disrupted by these idiosyncratic -- they're really piling up. a lot of dividend it's cut. you get a double whammy. u.k. stocks get really that hard in an environment. seehis juncture, we do value in the u.k. stock market. i think it is pretty clear the ratings are not too challenging relative to the regions. i think the economic forecast

are pretty gloomy and the consumer is in reasonable shape. u.k.decent outcome for the economy, going to present good value. anna: a day after the big fall wpp. they did a 2.5 hour session with investors. 22 outside factors that are sapping the life out of that industry. are others across europe that are struggling. reevaluating, maybe spending less in total and 80 passing them through into other forms. do you stay away from anything? just ticket? ben: they are going for a transition for how they're spending it i don't think we are

too despondent, like advertising. they will be able to understand and do understand the way the world is changing. so, we would expect wgp to be at the forefront of innovation -- wpp to be at the front of innovation. manus: and a and i started the show and talk about the condition of the pound. we're in for one of the longest stretches of their activity on the pound and five or six years. where are you in that debate? the parity debate? ben: think the pound could go low. we are modestly optimistic. we think -- a lot of bad news coming through the u.k. economy. when it comes down to central banks, we think the balance the desperate there

balance debate is much more attention on how to respond to inflation issues. anna: thank you for your time. 6:56 in london. this is bloomberg. ♪

manus: central bankers had west. investors await speeches for clues about the path ahead. said they are not worried about a stronger euro. toa: fitch warns of failure list the cap could spur a rating review. asks: warning the eu not to for bigger contributions to the european investment bank. anna: samsung unveils its smartphone. can it went back users after last years exploding battery

fiasco? "bloombergome to guy daybreak: europe." we could see a little bit of upside, south of the european trade but not a great deal. >> you have all of our equity markets a little bit higher. the focus of the market is more -- to sayan's line of we are not in the business of that is close down, not key on their agenda. lovely different things, you have 11 companies going ex dividend and you opened up the chr numbers. this is cement, this is one of

the world's biggest cement makers and they delivered their numbers. comingirst half ebitda in a shade below estimates. ebiing about second half tda, we will let that go through the works. u.s. futures point down but only by .1 of 1%. here is where the asian session has gone. hong kong was playing catch-up from the moves in the market yesterday that it made when it was busy dealing with the typhoon and we are up by .5 of 1% on the hang seng. you look at the euro-dollar, we are -- the has been a great deal of speculation but we have this story, doubting any scope of the gains is something that rankles with him, it is [inaudible] you pay up for volatility, you have to pay up for euro

volatility over the next two weeks relative to canadian dollar. draghi could say something to those markets. anna: he did not give any clues away yesterday in glendale -- li ndau. the pound, could be a proud record that the pound takes with it. manus: that is your favorite word. and the speculation is what happens next on the european central bank in these markets will remain moderately subdued until we hear draghi. a bloomberg first word news update. here's juliette saly. juliette: u.s. resident donald trump's threat to shut down the government and october for his

border wall could complicate the job of raising the debt ceiling. they need to pass a measure to keep the government open and raising the debt limit. republicans do not have a plan for how they will receive -- proceed. the u.s. is preparing another round of sanctions to punish the government of venezuela. one potential tool under review woods ways trading in the country's debt. the next step is the campaign to pressure nicolas maduro. no decisions have been made. you may be assured under the leadership of president, the united states of america will continue to bring the full measure of american economics and diplomatic power to bear until democracy is restored. in venezuela. upiette: china has ratcheted

its opposition to the investigation into its intellectual property practices. to defend its interests of necessary. the ministry of commerce spokesman said the two nations have more shared interests than disputes and stress that corporation is the best way to address any differences. growth provides in now or never opportunity to tackle the nation's debt and forge ahead with plans to increase the sales tax according to the business lobby group the japan association of corporate executives. its chairman said difficult measures should be tackled in the good times and the government must not waver. britain will warn the eu next week not to make greater financial demands over its contributions to the block's investment bank according to a person familiar with brexit negotiations. 16 [inaudible]

the city of charlottesville has covered two statues of confederate generals and the decision during a chaotic meeting and following racially charged protests in the virginia town that left one woman dead. the death toll from the typhoon has risen to 12 am a the most powerful storm to hit the southern chinese region in more than half a century. killed in theere gambling have and 153 were listed injured and -- amid extensive flooding and power outages. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. more stories on the bloomberg at top . we did have hong kong market closed yesterday for that typhoon but today, buyers are back with a vengeance, the hang seng up by .6 of 1%.

we're seeing the nikkei closed lower down by .4 of 1%. playing into things there and also flat finish on the asx 200 turning things around by two points. the csi is down by .41%. the regional index is being supported by that gain you see in hong kong and taipei. and one of the better underlying for your buffet looked good even though the net income was a miss, the ship is up by 11% on the close in sydney. woolworths is down 3.5% on the close in sydney, the big w unit a big miss for what worth and it 150d take a further hit at million aussie dollars in the next financial year. we're talking about the impact of the typhoon on macau gambling. or 700uld strip 600

basis points off their initial forecast of growth giving revenue for august. we had july visitors coming through up 4.4% but you can see that lou line suggesting -- the blue line suggesting we might see an outcome of 2.86 billion dollars for the month compared to the earlier estimates of 3 billion. a lot of those gaming centers, the casinos empty around -- and another has hit the gambling hub hard. manus: some pieces of breaking news, we brought you the numbers. isn to the big sale which taking the market's attention, $2.6 billion worth of the sale of their american distribution business, selling that to be can -- beacon. spending .6 billion euros buying the fells business so that is a red headline for the team over

at crh. anna: we are keep an eye on interesting comments coming through, the u.k. cell phone market conditions are challenging and have given us new numbers for headline profit before pretax. this gives us a little flavor of what is going on, a lack of innovation and it has to do with the pound. more challenging market, currency fluctuations and handsets are becoming more expensive. technical innovation has been more incremental. people are holding onto their phones for longer than previously. interesting on the day we get this new from from -- phone from samsung. manus: let's talk about european central bank policy from mobile

phones and cement to policymakers. you join the dots. we have a central banker on the european central bank and he is currently not concerned about the strength of the euro. last comments come after week's ecb at -- account that some officials were worried the currency could appreciate further. investors will await more signals in his jackson hole speech do tomorrow. byus: he will be joined janet yellen and mr. kuroda to discuss how to foster dynamic growth. we brought in malcolm smart. great to see you this morning. it is going to be an interesting 48 hours, it is either going to be lifeless and perhaps nothing for markets but what are you waiting to hear from from jackson hole?

malcolm: mario draghi shaping up to be the big newsmaker. he studiously avoided giving any policy signal. does that mean he is setting it up for investors at jackson hole? the next sc -- ecb meeting september 7. would he want to pave the way of winning back the big bond buying program question mark that is the number one question. we will have janet yellen speaking as well. is this her last jackson hole, she has been there each year, a lot of speculation that mr. trump will appoint mr. cohen or someone else to the ordered. as for yellen and the policy picture, it seems pretty fixed, based on next month we will see of beginning of this unwind the 4.5 trillion balance sheet. and expectations are that they might be that follow-up interest rate increase in december. any movement away from that would be a surprise from yellen.

anna: interesting when central bankers gathered to discuss if they are on the same page ordered diverting. -- or diverting. -- around theg balance sheet, certainly. we had this uncanny convergence of all three of the big central banks, boj, the ecb, and the feds balance sheets all hitting 4.5 trillion dollars. stage the bond buying program will be round back to less growth there and we're going to rivers for the fed's balance sheet and the boj will continue, no signs of any scaling back. , whens going to go up sideways maybe and the other one going down so on the central bank balance sheet question, certainly. the other big diversions is between the developing and the

developed markets. the developing world, the emerging-market world is still in the easing mode. we saw indonesia coming through with cuts that defied expectations. there is talk or could be more and some of the south american central banks are cutting so that is another area of diversions. manus: thank you very much. good to see you this morning. alldebate is this, if they begin job running about their currencies and you're talking about this in the 6:00 hour, there is little likelihood any of them are going to win because the market presumes that draghi over time and i focus in on draghi because that is where the risk is, over time, will reduce qe and moved to higher rates. tois going to be a tough one shift your currency out. guest: i agree.

i rather cynically think that although they will have some interesting conversations and private, i suspect they are not going to say a great deal in public. may be asly, there short statement from draghi about normalization of policy but i do not think it will be more than just a headline statement. i think you wants to manage this very carefully as you rightly say. everybody knows he wants to move towards a raining and of qe the next six months but i expect he will give lots of signposts in the next three months as to timescale. anna: onwards and upwards for the euro, as he was speaking yesterday and not giving any heails on what he thinks, was talking about other things intonteresting insight policy and history lessons that we did not get anything on concern about the euro. we got strong data out of the eurozone. guest: the fund flow is into

euro and euro equities and to a degree eurobonds and that is coming up. that will continue to the next quarter. it is one way trade into the euro at the moment. big issues arer the debt ceiling which is coming up to a boil. and government shutdown. fitch said it want to see a timely delivery in terms of the debt ceiling or the aaa in the u.s. could come under pressure. that did not irk the markets when they lost the aaa before but this is the market that is getting kinky. for theirmore money october bills than they want for their november bills. his risk rising? the problem for the market is that donald trump and atweet a day statement that could unsettle

investors on a pretty regular basis. what i think most investors are taking the view that there has been a lot of noise but little delivery. and so consequently, unless he delivers on closing down on the debt ceiling, then i suspect the view will be there will be a deal done. at the moment i do not think the market is that worried. anna: what is your strategy around u.s. growth around u.s. stock markets, we look at where u.s. stocks are at the moment, where do you see it? bullish campin the on u.s. equities. i am the first to admit that we are toward the top end of valuations. i think the u.s. economy will continue to form reasonably well despite donald trump's best efforts. and consequently one should not be too concerned, inflation remains benign and overall, the u.s. will be a reasonable place

to be over the next 12 to 24 months area manus: in 1999 greenspan had a different set of scenarios. yellen faces the same issues going in. my question is this, our estimations of the fed's rate hikes versus the estimations of rate hikes are deeply divided, should they get on and continue to raise rates? the conundrum is around inflation. inflation has remained benign and consequently even though employment is low, and coming down in europe as well, we have not seen that inflation pick up in wages. that is internal debate they will be having. we talked on this program recently, is the phillips curve

weken, does that mean should -- we should revisit how we are looking at unemployment? is it basically a group of the ofkforce but now are outside s markete say the job and they have been taken out because they do not have the skills to perform in today's environment. anna: thank you very much. more about the u.k. we have had a look at u.k. stocks and some of those that have presented problems for investors over the last few weeks. we will talk more about that and where we are on the [inaudible] this is bloomberg. ♪

manus: it has gone 8:21 a.m. on

a summer's day in berlin. stocks are flat. we had manufacturing sales data. and a smidge in the green. finishingstocks 50 -- up by .3 of 1%. markets are perhaps more preoccupied with the paul ryan statement, it is not in the gop 's interest to have a government shutdown. the markets are taking it a little bit to heart and we are a little bit stronger. amazon's $13.7 billion whole foods deal won swift antitrust approval. the approval indicates it does not think competition will tie up. concern has been growing that tootech these are becoming

powerful and president trump has singled out amazon for criticism. thesche bank has halved cost of its research is competition mounts. according to three people with knowledge of its plans, the german lender plans to charge as it managers 30,000 euros a year for up to 10 users. a spokesman declined to comment. newung has unveiled its smartphone as it tries to put exploding of batteries behind it. a cost $6 billion. of introduction comes ahead new phone launches from apple and google. that is your bloomberg business flash. manus: thank you. let's dig deeper. yesterday we broke the news of wpp about a one-off event which

fellhe kraft bid that apart, that affected advertising spending. are talking about a tough consumer market in the u.k. and talking about sterling. the pressure is mounting on a variety of factors, advertising, the consumer. are these canaries in the consumer coal mine? julian: yes, we have been concerned about the u.k. consumer post-brexit and sadly, things are running with real wages not growing and the consumer finding life tougher. the u.k. consumer will become more particular about how the spin that pound. to your point about the vpp, this is a wider industry issue. multinationalsge , particularly in the goods

looking at their budgets, looking at profit margins and seeing where they can cut costs and thinking can we spent money line, through social media, using the more traditional outlets for advertising and that is hitting all the agencies and they are competing very hard for the dollar and the advertising spend and that will not go away in a hurry. anna: why do companies go from here, this seems to be the big driver behind that story. a 2.5 hourt presentation, putting out 22 reasons are factors macro and micro, things that are going wrong but for the industry. the future and the margins it can command, that seems to be one of the big questions. julian: it is part of the wider out and around disruptors and rld faces up towo

product placement and what we are going to do in the future and how we are going to take it in media and everything else. this is a huge subject. what i do think is some of the substantial margin increases we have seen from some of these consumer facing companies are not going to be maintained and they are going to find pressure on profits. manus: where does europe stand, you say europe is no longer chief -- cheap. is more expensive than the s&p. julian: great economic numbers me out of europe. a big push [inaudible] and that is boosting prices. particularly in some of the international companies, they are looking very expensive. anna: we have two different views on how expensive or cheap europe is. thank you very much.

that is it for daybreak europe. the european open is next. manus: surveillance will have a conversation with michael amy. this is bloomberg. ♪

manus: you're welcome to bloomberg markets, it is the european open. we ring you the first trades of the day across the markets. i am and is rally -- manus cranny alongside matt miller. investors await yellen and draghi's jackson hole speeches. how much will be revealed? up against the wall. trumps government shutdown threat triggers worries in the market. how likely is that