>> good morning from bloomberg's european headquarters. manus: this is a bloomberg daybreak europe. these are today's top stories. >> president trump continues his shift away from allies by naming the eu as an opponent of the united states. he meets vladimir putin later today. the chinese premier says there are no winners from a trade war with the u.s.. stocks in china fall. may's brexit boost. the prime minister is expected to announce 350 million pounds for the aerospace industry as airbus is said to near $29 billion in deals.

we are live from the airshow. a very good morning. it is 6:00 in london. the asian equity session .igesting a lot of newsletter in particular, data out of the chinese economy. all of that adding up to a mixed picture. we have seen the yuan testing once again the 6.7 level. msci asia-pacific excluding japan, japan is closed for a public holiday, down 0.4%. no renewed tensions with regard to the trade war, but a lot of geopolitical tension. nymex in focus. 7064 a barrel of nymex crude. down below $71 a barrel.

what does that do to prices? u.s. 10 year yield as well. 2.83%, we focused very much on the yield curve story. jerome powell is going to be giving one of his addresses to the senate banking committee. if he sticks to the path around short-term interest rates, perhaps we are in danger of talking about inversion of the yield curve in the united states. >> i wonder what language he might use that may raise a warning flag over global trade. what is the risk reward as we go to helsinki? the reward could be vladimir putin, the risk could be trump. oil could be one of the real hooks the market could hang its hat on. is that reward sanctions, could they open the door to the escalation? -- de-escalation? equity traders are a flighty bunch.

this is a russian market at a record high. buying thatists are sort of weak glow of a vladimir putin-trump rapprochement. the bars are the flow of money into the biggest russian if yes. -- ep yes -- it is a backdrop to hope over fact. sentiment over reality. maybe the reward, the market reward, is higher for russia then it is for trump. rising oil prices, escalating political risks in turkey, brazil, and poland. if you are left with things you don't want to own, turkey, poland, and brazil, this is maybe where the benefit is flowing. the emerging market volatility in the foreign exchange space relative to the volatilityarket fx

at a seven-year high. more to come on emerging markets. with that pick up story in helsinki shortly. let's talk about the u.s. futures picture. it looks fairly flat. theirs been downgrading china gdp forecasts citing a trade war. we ares of what watching, we have jerome powell's testimony. the s&p went over 2800 on friday. we've got earnings season, plenty talked about. atay we are going to be live the airshow bring you a host of great speakers on the subject of aerospace. at ceo of boeing, that is 9:30 u.k. time. in the head of commercial aircraft at airbus. those gentlemen joining us.

let's get a bloomberg first word news update. >> the european union president has called on donald trump to reform the world order instead of bring it down. warning that trade war's can his opening remarks came after the u.s. president said he considered the eu an opponent of america. donald trump made the comments as he headed to a summit with his russian counterpart in finland. minister will say today that her plan for leaving the european union strengthens the position of manufacturers. that is as theresa may comes under pressure from the u.k. arospace hector to deliver brexit deal that safeguards its competitiveness. meanwhile, she revealed donald trump advised her to take the eu

to court rather than talk to them. china's economic expansion has slowed, singling broadly stable output at the trade conference with the u.s. intensifies. gdp at the slowest pace since 2016, down from 6.8% the previous quarter. investment growth in industrial output also slowed in june. china has reiterated its opposition to a trade war, but insist it's not afraid to stand up to america. planned tariffs on chinese goods, and beijing has said it will respond liver blow. >> there will be no winner. only a lose-lose outcome. china does not want the trade war, but china is not afraid.

inn a legitimate rise interest is treated unfairly, china has every reason to take necessary countermeasures. the world cupwon for the second time in history as they beat croatia. return to paris with the solid gold trophy. large clouds -- crowds are expected to greet the team. this afternoon on the french capital's landmark. news, 24 hours a day, powered by more than 2700 journalists and analysts. you can find more stories on the bloomberg.

>> that rally that we saw last week stalling this monday amid signs china's economy may be slowing down. losses across the board. chinese large caps falling. material stocks leading the drop on the mainland. while we're seeing consumer-oriented shares rise, xiaomi is the outlier among chinese telco's. we will check on that stock earlier, it fell nearly 10%. the update that investors on the mainland are barred from buying the stock via the hong kong trading index. you have the chief executive saying ahead of its -- he is confident shares will be added to the stock next. i want to highlight korean convenience store operators, which are sliding at the minimum rate hikes.

it is seen hurting prices for smaller players. with airbus could be announced this week where bloomberg will be live on the ground. manus: thank you very much. president trump rounded off the second leg of his european tour by naming the eu a foe of the united states. a said he considers the bloc competitor of america alongside russia and china as potential enemies. annmarie hordern joins us from helsinki. another day, another barb criticism. again on europe. kicking off this monday morning with fresh salvos. >> that's right. it is similar rhetoric we have

heard at nato. attacking his european union allies. we had that bombshell newspaper article before he went on to apologize to theresa may. here speaking to cbs news when , donaldout his foes trump named the european union ahead of russia and china. >> i think the european union is a foe, what they do to us in trade. russia is in certain respects. china is economically. that does not mean they are bad. it means they are competitors. from hisking a line playbook, the other donald, the european council president, tweeted america and the eu are best friends. whoever says we are foes is

spreading fake news. -- he hadnother another comment about trump, and this was about trade wars, saying it can lead to hot conflict. anna: yes indeed. we have president trump meeting vladimir putin later today. how high or low our expectations? >> expectations are low. we even have the u.s. ambassador to russia saying this is not a summit, it's a meeting. they keep taking down the notch every time we speak to them about what exactly is going to be happening here. are lower and a lot of this has to do with those indictments of those russian -- those russian intelligence officers. this goes back to the election

meddling where donald trump was elected president. donald trump is under a lot of pressure from congress, including members of his own party. democrats are saying the summit should be canceled. that's not going to happen. donald trump says he will announce -- he will ask about election meddling. he will ask for the extradition of election meddlers, but in russia, that would be against the constitution. he says he will bring it up. agenda, when they talk about nuclear ,roliferation, syria, ukraine and potentially oil. that could be the one definite thing that comes out of this meeting. thank you. let's bring in our guest. chief europe economist. donald trump clearly, laser-like

focus on europe. we have the fix for equities, but i say we now have the trump volatility index. it looks evermore ratcheting higher. would you agree? certainly volatility associated with donald trump is at heightened levels. is how far question markets take seriously his pronouncements. daysow from the last few he can say one thing one day and completely reverse the next. but there are clearly some important features that he is very confident on. and i which is trade think some of the comments we have heard about europe being seen as a foe are very related to how he sees trade and how he

sees concerns about the u.s.'s position in the global economy. tusj has been -- tusk has been are minding is how trade wars can lead to hot worth. not really on the market's radar. >> markets are not reflecting any serious concerns there is going to be an escalation with results in physical war. at the same time, there are damaging consequences for china and countries that are in the chinese sphere who could also suffer if the economy starts to slow down. we've seen today the second quarter data somewhat softer. and that is not including any trade affects so far. saying, it iseeps

0.4% of the global economy, stop making too much of it. i want you to have a look at this. this is the oecd. their assessment, if we go back to 1990's style tariffs, this is what it would do for living standards. it would demolish living standards over the next period of time. we would see living standards declined by near 14% on a per capita basis. this is the risk economically speaking. the second round dissipation of confidence and income. >> absolutely. this is the real concern about imposing tariffs and dialing back on the free trade we have seen over the last 10, 20 years or so. it's not the immediate damage to growth and activity.

it is essentially the loss of , noth, the loss of income just for the west, but globally. that really is the result. >> we will see how much this is on the feds radar. jerome powell speaking later this week. thank you very much. atef europe economist standard charter. can china withstand a trade war with the united states? mixed data coming out of china. manus: a little something for everybody. and the ceo of russia direct investment funds. this is bloomberg. ♪

anna: good morning, everybody.

6:19 in london. down 0.4%. closed for a public holiday. not blue skies if you are in the equity market. lots of geopolitics to talk about. mixed data out of china. let's get a bloomberg business flash. >> goldman sachs reportedly plans to name its president as its next chief executive. says theork times current ceo will stay on as -- an interim period. president.d sole goldman sachs spokesman declined to comment. zte sharess -- soared. the company's shares marked up -- marked a month high and rose

by their 10% daily limit. resolves as decision month-long moratorium that the zte into ahat thrust trade dispute. airbus is closing in on $29 billion of deals with asian carriers expanding their fleet because of travel demand. bloomberg has learned the european manufacturer is working on a blockbuster agreement to sell $23 billion worth of aircraft to air asia. a startup also confirmed a plan to buy widebodied a350 jetliners valued at $6 billion. the deals are based on list prices and discounts are customary for bulk orders. airbus' commercial aircraft president joins us from the air show at 11:00 a.m. that's your bloomberg business

flash. manus: thank you very much. ramped up trade tensions failed to make significant dense in china's economic expansion in the first half. even as growth edged lower, gdp rose. that is down slightly from the first quarter. anna: investment grows and industrial output also. the figures come as chinese and eu leaders meet in beijing on monday with the aim of signing a bilateral investment agreement. let's turn our attention to the subject of china. i have got a chart that talks about split outlook. we have seen the monthly gdp estimates holding up better than the shanghai. say that is to be expected because, looking back in the market for discounting futures.

>> if we look at the data released today, they show a very small slow down from a strong first quarter. a slow of growth in their second quarter due to deleveraging impacts, the effects of control from the housing market as well, which are weighing on activity. , wesecond half of the year are likely to see more of an .mpact from the trade disputes the stock market obviously reacting ahead of time and responding to every bit of news that comes out on tariffs being imposed. manus: take a look at this. we have tried to put different things together. one is money supply, the m2 numbers, the top part of the chart. also total aggregate financing. the steepest drop since 2006.

and the slowest growth since 1996. i put it to you that perhaps we should be spending more time talking about these facets perhaps then trade worst. -- wars. >> these are important. these are what the authorities have been trying to achieve for some time through the deleveraging process, slow the pace of debt accumulation. that is being reflected in money supply and investment. financing is all part of that. over the near-term, beijing will be very cautious about anything that smacks of to sleep -- too steep a slowdown. we think there is plenty of scope for beijing to stimulate the economy, take off some of

being constraints in the housing sector that have been having an impact their, and also to make sure there is adequate liquidity in the system. we expect there will be another 2.5% cut over the course of the next year or so. in a bind andeans by no means expecting the chinese economy is going to be grinding to a halt. anna: but is there downside or upside risk to estimates of chinese growth? duesaying they are revising to a trade war. they are taking down from 6.75 -- 6.65. >> the focus is on what happens to trade. if we continue this escalation of trade disputes, the next big date will be september, by which

time the public consultation on the latest round of tariffs will be through. then,see tariffs imposed that shaves a few tenths of a percent off the chinese economy. that could be knock on effect in terms of the stock market and water sentiment. at the same time -- and broader sentiment. at the same time, beijing has been successful in ensuring growth does hold up. there are plenty of tools they can implement to make sure less the case. manus: thanks for your input. 2.5% to come off the triple. chief europe economist at standard chartered. up next where going to be live from the air show. don't miss the industry executives. we have a whole host. at 9:30 we will have the

boeing ceo. we will be live in helsinki shortly as well. donald trump says nato is now strong and rich. further lines from trump later on. ♪ retail.

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>> it is just after 9:30 in dubai and it is 8:30 in helsinki. trump will meet with putin. strong and rich,

he says, saying that many countries are calling him and taking him for bringing this together. strong and rich. it looks a little bit like this. it is the first summit and americans are setting the bar low. it will not be "a perry mason referring to the hacking, but you would have to google that, if you are a millennial. >> yes. indeed. you will have to alter it. cohosting this out of the european union and the ministers

discuss the status of the negotiations over the weekend. >> it was. indeed. never far from the inversion of the yield curve. tot will he have to say lawmakers? it will be fascinating to hear his take. there were two days of hearings to determine if this pose and national security threat. >> we have chinese data to digest and is the latest. this saw the gains pushing above 2800 and you have the andnese markets closed

there is the data out of china that came out a little bit mixed and the question over the ability to withstand the ramping up in the trade war's. they have been favoring the low volatility stocks out of asian markets and we have seen that emerging and, speaking of the currencies, let's look at the and this is not about yen weakness. this is about dollar strength. this is only dropped about 1%.

the stockout is outperformance on the markets and they have rotated and this ove the dollar higher. as 8/10 of a ascent and it felt today saudi arabia said and the u.s. is said to be considering tapping into the emergency reserves before the november midterms and brent is holding above 74. >> thank you very much. theresa may and her long-running battle took a turn.

the aerospace sector want space to deliver a brexit deal that safeguards the competitiveness. there is funding for the aerospace sector and she will be in england, where guy johnson is now. it is good to see you. how does it look in the sunshine? it will be pretty warm. this is normally dominated by a forceful insertion a little later on. let's hear more from the trade organizers.he good morning.

so, what does this industry need where weussian mark >> are in the brexit negotiations with the publications last week and the reassurance of people who say we are making progress and we will have a fiction us is less -- a frictionl e space. u.k. worldr about a leader. how does that go to the key areas that need the cash right now? what this is about being the beenront and, if you had there in the course of last year, there was the flying car boeing and seen

rolls-roycehe talking about what is new and the key environmental challenges and the noise. urban airnew transport solutions that have taken off and left. those cuts of things, i think that the people can now see these are new market opportunities that will add to the business. likely to remain in the safety industry. how important is that as the announcement? it will allow a frictionless story to develop. >> the priority was the safety agency and their only a couple of take global safety agencies. the second is the u.s. and we

and the significant role the influence in that agency. for us, remaining part of that is crucial to future competitiveness. airbus was all over the front ands, in terms of concerns why did it take so long for the industry to step up and make the voice heard? >> we have made those points clearly and concise and polite and private during the last 18 months and we have seen a range of industrial players was a public statement of concern and they made key decisions around

and this should look like recognize the regulatory rulebook and that we needed the that,rade area to ensure as a european industry, we were not at a is and manage. >> this was happening privately behind closed doors. were you not getting heard? what was happening? was the government not listening to what you are saying and why it ultimately ended up where airbus and the comments they were making were crossed the newspapers?f >> brexit is a challenge and there are a range of competing views to what it should be and where the industry was was

.ligning clearly being more public about that was, we hope, hopeful in providing the difficult decisions they reach. >> thank you for coming to see us. from a dstt joins us some of theabout big announcements later on here. back to you. thehis shows us conversations you not always work us up is a great day for you. is the chief economist at dennis

muilen so, the front protagonists in the verbal criticism of brexit and what it would mean for business. in terms of the united kingdom and brexit and the economy, do you think the bank will see through the noise and go through the rate hike? >> they will go for the rate hike and that is what we are expecting. the economic that is holding up .ell after a week first quarter we know the policymakers are worried that they see it wages rising and they see the need to remove policy accommodation in place. areink the policymakers

looking through and we have a view that they want to raise interest rates and they see the need to raise interest rates and that presents the opportunity. were may be further and could move to a situation where there is no deal and it is a small possibility and not negligible. that would be a reason for policymakers to stay cautious and we expect that the bank of england will stay on hold. close are we to seeing winners and losers in parts of the economy? sectorows the aerospace stu hawkinsl and

knows more about these things than i do. some sectors have seen better than others. if we get the brexit deal? >> it will be difficult to get lighting that is a norway option. soft brexit would be supported to businesses and it would generally lift a lot of uncertainty for british business in general. it looks like we're going more and we a candidate style and there is a transition we're filling the pain. much.nk you very

program, lloyde nextfein and what will the generation of wall street look like? plenty more to talk about. it's absolutely. can this continue? there is more talk on trade. the vice-chairman joins the 11:00, u.k. team at time. this is bloomberg.

we are going to be focused on the earnings story. sois a mixed earnings season

are. out today and goldman sachs plans to add david as the new ceo. that isn't new, but the timing, perhaps. gets the top spot at goldman. the current ceo will stay for a certain length of time and a lenders could be in for more of a risk of getting's waste as the tariffs escalate. hows get more details on banks would fare in a trade war. great to have you with us.

what about the leadership changes goldman sachs? he has been touted as a leader. >> as you mentioned, he was elevated to be the president of goldman sachs earlier this year he is number one for the ceo share. a formal announcement could get made on monday. so, watch this space. reports out host of of the banking space and the trade story and finance was important for some of the banks in the asian region. >> it is not the most glamorous

parts of banking, is it? it is important and it is one of trading hubs. the global trade war goes beyond words. supply chain and there were products on the target list and these of the sort of conversations on the region banks. >> ok. let's see will goldman sachs has in sydney will step we have the exclusive interview later on in the day. we have larry fink joining the

team. >> a great story about cryptocurrencies and the blockchain. it will be interesting. summit. it is a meeting. they are tamping down the .rospects for outcomes some of the closest allies have been in the crosshairs of trump's criticism. joining us is the director of data who is with us from berlin. iq for joining us. day,s we have seen every there are relationships that are in flux between allies and what to we think the u.s. and russia want to achieve from this meeting?

something they will be alarmed by. when there at a time is russian interference here, around ther places world and it is important for the international relations. for the european allies, what don't trump is doing is taking the sledgehammer to the world that and it is astounding he has spent so much time criticizing the u.s. is allies -- the allies of the united states and he said that he expected his meeting with vladimir putin to be easy. from the a tweet president and he talks about nato and said that it is strong and rich.

would you agree it is stronger and richer as a result of his visits? there are lots of calls from lots of people and the summit, he said, was not accurately covered. >> what he has done is thermined nato and, from perspective of vladimir putin, you could not imagine a better grenade into the alliance than donald trump. what he said it something that others have said and the need for european countries to contribute is an item on the agenda, but trump presented it as though it was a wine area deal for the united states and it is not true. what they have done is uphold

the western order that has and, byal to citizens undermining nato, he has not only shown his western allies they cannot rely on him, he has also strengthened the hand of vladimir putin, who will be pleased today. let's not forget that this is a president who is under investigation for potential collusion-- potential and this comes after the indictment of 12 russians. tremendous really and the fact that so much news is going on and that this almost seems normal is quite bizarre. >> yes. a mould order. presidentan union

said that trade war's can lead can hot war's -- trade wars lead to hot wars. >> we believe that free trade is a good thing and we see this ending towards protectionism across the world. he called the european union a foe and he has been amp in up the rhetoric against china. it is astounding that the united states is now openly threatening a trade war with the european union and that this is a and let'sevelopment not forget about the historical president for the rhetoric like this and the political consequences that come from that. >> how much damage, if at all, do to theald trump

political status quo? did he add to that? what do you make about that play last week. -- last week? >> he did a lot of damage. donald trump is not popular in the united kingdom and the british commonwealth went beyond to keep him away from the protest. policyicized a domestic after the united kingdom wanted to leave. theresa may had a compromise that her cabinet had agreed to for 48 hours and he said that was a bad policy and he denied it. the interview was broadcasted for all to see and he said that

boris johnson, who was ignominiously drop, as the foreign minister, but should have been dropped, he was a good premise or. >> thank you. and we will be live there next.

>> good morning. daybreakloomberg europe. >> these are the top stories. >> friend or foe? from thefts away long-term ally and he meets vladimir putin later today was stopped taking its toll, they

say there are no winners in the trade war with the u.s. stop the stocks in china all and the economy slows. the airbus is said for a deal. a very warm welcome and this is the state of play on the b markets as don't trump gets ready to meet with vladimir putin and those stories will stand on their own.

that has a particular concert once for the u.k. market and what you have here is the risks -- on theit you the rhetoric from the red states. will we see an escalation in trade war's for europe? there are the pace against with be earnings and this will the most pressing issue. we heard about this this morning .nd it is in due course >> yes, indeed. datae have equities and coming through and what it has done combines with the and ittical tensions

gets markets a little preop divide where it is marine day and we have this below $71 a barrel and it isn't in your part of the world with this emanating from the united states and the trump administration might decide to tap some of those strategic crude supplies. we have the yield opening up with more muted trading and the closure of the japanese market and weens up on the u.s. will hear from powell this week and the story is the flattening of the yield curve and if it will invert. the u.s. economy suggests that riskcould lift rates and

in version down the road. your thoughts about down the road? and ithave jerome powell is about if he is committed to the rate hikes and if donald trump is alienating the world and this is pushing the agenda of america. what does this mean for growth and buybacks and the tax-cut? lesse way, the fed more or guided the mutual rate and that is what they indicated. with the dots on the plot, they indicated the rates and you see and is lower on prices

lower with the bonds that are flat. deborah? >> the european union's president has called on don't from to reform the world order instead of tearing it down. thise opening remarks, came after the president says that he considers the european union and opponent to america. the president is going to meet with his russian counterpart in finland. the prime minister will say that they plan for leaving the european union strengthens the position of manufacturers and protects jobs as theresa may comes under pressure to deliver a deal that safeguards competitiveness. trumpa may revealed that

has been advised to take the european union to court rather than talk also >> they said i should sue the european union. eu?ue the we are going into negotiation. the president also said not to walk away. with theable output u.s. intensifies and the gross domestic product increased from a year earlier at the slowest downsince 2016 and it is from the pace in the previous quarter. investment growth and the industrial output also slowed in june. the fourth wimbledon trophy was lifted as he defeated kevin anderson. it is his first grand slam victory since the french open. on saturday, he became the first

german to win. global news, 24 hours a day, on air and powered by more than 2700 in more than 120 countries. you can find more stories on the bloomberg terminal. ando get yourself a drink fix that voice. we have breaking news from the earnings season and we have these numbers. mines across the theinal and they have impairment and is 3.2 8 billion their are a host of earnings comments coming through

we will keep that on the ground. >> last week in asia has petered out and the chinese economies are slowing. the japanese markets are closed snap anese are set to rise. this was in the spotlight earlier and there was dozens by the hong kong trading link. it is the partner of the french

football game. they could be out with no impact on the bottom line and the company says that this boosted the online and off-line sales. >> thank you very much for the latest on the markets. he says it could block the trumpitor of america and has literally tweeted again and talked about nato in an earlier tweet, but is now talking about russia neverp with stupiditye because of

and the rigged witchhunt, setting the bar for this. good to see you again. flow andean union is a nato is stronger because of what he did and here we go. he says things have never been so bad because of the foolishness. >> yes. that is right. the european union was named ahead of russia and china and called enemies of the night states. he seems to be assessed with this included most of let'srgets of germany and

see what he had to say about the european union. >> you win think of the european union as a 50. russia is of foe and china is of and it doesn't mean they are bad, it means they are competitors. >> there was response to him on americawhere they said and the european union are best friends and said that whoever is spreading that is engaging in fake news. prudenting trump and across health sink he. good to have you with us. landscape and there

are old allies looking for reasons to follow and build bridges with enemies closer >> we have to see through the noise and thing about what the into game is here. that are going through in transactional terms. undermined nato and theresa may. damaging, at the moment. >> good morning to you. it has been a while since we have seen you. how much russia would you like to have? ?s this a record high they can't see be get enough money into it.

is this the least bad option? get a little bit of russia with the rising oil prices. have adn't be so bad to little more. >> we don't invest in stocks, but we are positive on this. and wees are pretty high and that as the currency there is this with the currency. >> at of the big focus of the and will be jerome powell where to the short rates go? >> it has been very consistent.

there is a recent fed paper and i think that he wants to see how , weeconomy goes and he said don't know where and we see the fiscal impact of the city going the labor market is different. let's go gradual and wait and he has been there recently. there is the european programming and this is the outlook with the consumer sentiment and the businesses are favorable on government policies and we had these tax loose and something we slowly ebbed

away on and there will be an annihilation of confidence. there are the trump and republican policies that listen to business. is thistinues and there is part of the trade policy and it is a good thing. this might rein them in a little bit. thank you very much. banks could see a

successor that we have known for a while. the timing is new. >> when you are the rainmaker the does deals, we have interview with larry fink.

>> good morning. have 40 minutes until the start of the cash equity and we now have this from our studios in hong kong. to oldman sachs plans

name david sullivan today. on forlankfein will stay a time and they identified him as a clear front runner for the top job. the pizza chain has chosen to distance themselves in the ceo after this. they are reviewing all ties to john schnatter and removing him from the marketing materials. he resigned and he owns 30% of the shares of the company. that is your bloomberg business flash. >> thank you very much. the trade tensions failed to make a dent in the economic expansion. now.ackenzie joins us

what can we expect from the ?ummit in beijing today we have this data and the summit of the meeting. >> we have heard from the alliance at the european council and the premier of china came out and there was this overture by china to make an alliance to push back with what is coming out of washington and it isn't as simple. counterparts when it comes to that and what the europeans hoped to do was to the reforms to tackle issues to force the transfer and those were the key

concerns. they will set up a working group and they will move more quickly on this treaty for some time and it was symbolism as much as it was substance. they will have to show they are lined with the global trading system and this was a message they were trying to buy tray and they were not bringing up against the u.s.. >> thank you very much. tom mackenzie is there. there is a saying about style and substance and style winning every time. nick is a man of style and have a look at this. theme take you beyond numbers.

if you were a betting man or a woman, you would say it is a little better and it is outpacing the bloomberg tracker. bullish on china. >> it is looking pretty strong and there is trading in tariffs that can get implemented and we saw the numbers coming in and they came and they fell because everybody is expecting this liquidity to cut to the quiet cutsve ratio and there are there was expect and

the leverage effort that was serious. there were the growth estimates for the third and fourth quarter of this year. where's the pressure? tariffs and the there was the disruption from trade and he sees the european union as a flow. the best case is that common sense propels -- prevails. the worst is that they are not. >> they hope that the common sense will prevail when i come

up with these charts. we released the survey and it move will only get worse. hitks could take another and it looks like the bonds have bottomed out. you look at the volatility of emerging markets and it is at a seven-year high. do you believe in these incremental tips? how do you differentiate? >> you have the emerging markets the dollar strength and the rising u.s. yield that we are a little the negative on and you saw that with the survey and the expectation survey as business becomes less confident and you have the fiscal stimulus coming.

the rest the world catches up and we think the economic convergence means there is improving growth outlooks and it is a more positive story. sector about the banking ? you expected this to continue. helped by the loose interpretations of the volcker rule and the stocks fell after that with some nervousness around and they saw the mortgage and the outlook is still a

little bit murky. add thi--tfolio trump will be in helsinki later on and that is it for daybreak. >> yes. phones have made our lives effortless.

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"bloomberg markets: european open." we are live from the biggest airshow of 2018. i'm guy johnson, alongside matt miller, who is back in berlin. matt: good monday morning. asian stocks decline as data shows the slowdown in china's economy and the second quarter. the cash trade is less than 30 minutes away. guy: friend or foe,