>> good morning from bloomberg's european headquarters. this is "daybreak europe." amazon delivers, facebook false. the social media giant wipes off nearly $120 billion in the largest individual stock route in history. bps big deal. you cable by most of its shell assets. its largest purchase in two decades. brexit negotiation -- brexit rejection. the eu can't accept theresa may's trade proposal. sterling falls against most currencies.

breaking news. , theiant cement maker twogam of what was known as other companies, crossing the bloomberg company as we speak. it has confirmed its four-year target. 7.4 4 billion swiss francs. 1.7 8 billion swiss francs as well. confirming its targets for 2000 18. it has been a interesting year for the global cement maker. the new chief executive announced a 4.1 billion write-down to clear out the balance sheet skeletons, pushing the company to a loss as the attempts to reboot the world

cement maker. recurring event. 1.7 8 billion swiss francs. let's have a look at what's happening to the german chemical maker. confirming its forecast. adjusted earnings per share for the second quarter, 1.77. 1.88.alyst estimate was that is a miss on adjusted eps. 60.59.s were estimating sales is a beat, but the adjusted ebit coming in below expectations. adjusted ebit below expectations. just getting some headlines out of the boj. it's offered to buy jgb in rate method. this is relevant. we have got this bank of japan meeting next week.

the speculation leading up to this, maybe we will have a tweak in monetary policy. that has lifted the yield on the 10 year 20.1%, the first time the has happened this june last year. it is 0.9 last -- right now. it has moved above that as of now here is the boj has offered to buy jgb's. elsewhere, that's the msci emerging markets stock index, which is rising for the fourth consecutive day. up by a quarter of 1%. it has been a good week on the back of that move by china to implement measures to boost its economy. days is over the five bigger since early june. less than 1%. by you had two strands of the sterling story.

a decidedly non-event meeting yesterday. it finished 20 minutes early. theo draghi reaffirming ecb's ambitions to end the qe program this year. they have not discussed how to reinvest their expiring bond purchases. and also the ecb of course keeping and i own inflation, keeping an eye on trade. trade was brought up. sterling dipped after we discovered michel barnier give the thumbs down to theresa may's customs plan within that brexit paper, which she announced a couple weeks ago. less to focus on. a massive day -- lots to focus on. a massive differ earnings. we will speak to the ceos of several companies. let's get the first word news. juliette: u.s. president donald

trump's former personal attorney is reportedly prepared still federal investigators that the president knew in advance about a june 2016 meeting where russians were expected to offer damaging information about hillary clinton. that is according to cnn citing unnamed sources. such testimony would contradict the testimony of public denials of the president, his son, and other campaign officials who have or could the president was not aware until more than a year later. the u.k. prime minister's brexit options are narrowing after the european union rejected her proposal for a train deal -- trade deal. theresa may thought her customs proposal was the best hope of getting a deal she could also sell to a divided parliament. said hef eu negotiator will never accept her plan. and you will not, dedicate the application of

customs policy and rules and corrections. it would not be subject to the eu's searches. juliette: the turkish lira global currency losses and stocks slumped after u.s. president donald trump threatened to impose large sanctions if the nation does not release american pastor andrew brunson. unwelcomeff is an competition for turkey when it is grappling with natural stress -- national stress, including investor perceptions the central bank is not doing enough to shore up its currency. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more .han 120 countries you can find more stories on the bloomberg at top . checking in on the markets in

asia, we are higher for a fourth consecutive session. you got the nikkei up by 0.3%. a little bit of a switch out of hong kong if chinese markets, which had that solid rally on the back of the stimulus. the asx 200 being boosted on the back of that bp deal, up 0.9%. the bank also looking very strong. overall, a positive and to regional markets. the boj leading bond purchases, unchained at its regular operation. on.et's move , mostly.livers the e-commerce giant crushing profit expectations. it did miss on sales. the company's cfo pointing to its prime service when he spoke to analysts. >> we are pleased with three children. -- with the retail growth.

prime customers as well as increased selection, particularly third-party selection. mark: amazon strong results helping boost other tech stocks. facebook saw the biggest stock without in history. chiefg us, the technology executive and founder of the facebook effect. thank you for joining us today. floor? onill on the the back of the biggest market cap decline in stock market history? >> i am not really on the floor. if you look at the incredible surge the stock has had despite the extraordinary series of controversies the company has faced, i think investors had really dated up significantly higher than it deserved. a heavy level that even the most minimal disappointments caused it to

plunge this vast amount. basically, amazon and facebook posts -- both did the exact same thing. they beat on profits and disappointed on revenue. but facebook plunged over $100 billion and amazon went up. figure that out. irk: a point you make which want to bring up, you say, what happened with facebook could possibly happen to the entire economy. that does not sound good. >> the reason i think that, if you look at the world we are in, with a president in the united states who has got a lot of people nervous, and yet the economy continues to power , is this optimism seems to be continuing, and yet everybody just has in there got, this feeling it cannot go on.

stock, let's keep buying let's keep investing. i think what happened with facebook where people said, forget about russian manipulates manipulation, this company has advertising, so let's put it to an all-time high. i tiny problem, sell it. could that happen with the economy? i think it could. mark: are we too complacent about this stock market and the trajectory of the economy right now? >> i worry that we might be. the stockthought market would go down as soon as trump was elected, and look what has happened. it has been a successful economy. we have all these apparently irrational actions happening on trade, and yet the economy seems to be withstanding. there does seem to be a point at and amaybe one false move

weird chain of cascading negatives might occur. that is my guess. mark: let's talk about amazon. amazon, what is as interesting is the area it is not in. which areas is it not in it might conquer in months to come? is in morey amazon and more areas of the economy. their growth and ambitions and expansive scope of operations really does begin to feel like one company could have more influence in more parts of the economy than any single company has before. one thing they are not in is internet access. they do not have their own phone network. that might be something they would get into. i think the success they have had with the internet of things and alexa, i have to be careful

saying that because mine get -- mina might get evoke -- mine might get evoked. 41 million americans have alexa. that is incredible for a relatively new product. more than double the number of homes google home is in. that is one of their many things. , ay now own whole foods major food chain, which means more than 4 billion in they revenues were from physical stores. that is something they did not do two years ago. these people are just amazing. mark: trump has got a thing for mr. bezos, for the washington post, which bezos owns. if this company has all this power and monopoly, the antitrust enforcers are surely going to clampdown.

>> you have to believe that at some point, society has to figure out what to do about a company with this much power. traditional antitrust enforcement logic does not apply because typically it has been pricing that was of concern. amazon is still more or less a in theonary force economy and it does not seem to be harming consumers with its behavior. the traditional metrics of assess int is hard to the conventional manner. we have to think, what is our way of dealing with shearer, plain old market power? how much market power do we want one company to command even if it is delivering lower prices? that as a whole new set of questions we have never really had task. trump's objections are totally .elfish, ego driven

amazon and washington post have nothing to do with one another. they just happen to be controlled by the same person. washington post is not a mouthpiece for amazon, despite what the president might say. mark: pleasure. re.a pleau thanks for joining us. agrees to its biggest deal in two decades. we will have the details. later we continue the earnings conversation. do not miss that. this is bloomberg. ♪

mark: 6:17 in london. let's get the bloomberg business flash. juliette: thank you.

amazon investors have shrugged off second-quarter sales that missed estimates, focusing on soaring profit that came in at more than double analyst projections. the online giant reported a record second-quarter profit of $2.53 billion on sales of $52.9 billion. the company has generated more in the first half of this year than the seven previous quarters combined. >> we think it is driven by the prime program, the efficiency -- excuse me, the engagement of prime customers as well as increased selection, particularly third-party selection. juliette: ubs is laying off dozens of staff at its wealth management division as it revamps the unit's leadership team. stephen friedman, appointed last year in the u.s. wealth management division, was among the cuts. the bank said to staff michael

mcvicar was appointed to lead the solutions unit and will continue to lead the sustainable investing efforts. china has expressed regret over qualcomm's plan to scrap its takeover of an excuse nxpconductor's -- semiconductors. it would have been the largest history.isition in regulators held off on clearing the deal after other relevant jurisdictions had green lit it. that is your bloomberg business flash. mark: bp has agreed to pay $10.5 million for most of bhp. this is its biggest acquisition in more than two decades. it gives -- in the world's

fastest-growing major oil region. how does this purchase, david, benefit bp? >> good morning. ceo described the deal as transformational. it could well prove he is right. it gets bp back in the permian basin, the hottest district right now for big oil. it is the fastest-growing major oil region. this repositions bp among the key players there. permian, butn the it sold out of that region in the aftermath of the deepwater horizon disaster. it was one of the assets bp chose to offload in order to boost funds for the liabilities from that disaster. in the intervening period, they missed out on the boom in the permian. this gets them back in.

they can expand. they obviously see a lot of potential in that district. bhp? what about does it have any significance in its battle with activist investors? will.hink it investors have been looking for bhp to offload underperforming assets. the shale unit, the company can see has been an underperformer. executives talk privately about how much value this seven-year expedition into the shale business has cost. absolutely be welcomed by investors. what is key is bhp has said most of the proceeds will be returned to shareholders. if anything else, those investors can look forward to additional returns. is going to placate that activist angle we have seen. mark: great stuff, thanks a lot.

bloomberg mining reporter david springer. theresa may's brexit options seem to be narrowing. the eu has rejected a key part of her proposal for a trade deal. the eu's chief negotiator says he will never allow a nonmember to collect tariffs and run its customs policy. the prime minister has 12 weeks until the deal is meant to be signed. the head of fx strategy is here. i love the old days. every day, sterling is up because it's going to be a soft deal, a day later you get something like this. where does this leave us? fine --n see that volatility is not that great when you consider the amount of uncertainty. sterling is on the back fit -- back foot. different have got a

stunt. theresa may announced earlier this week she is over the brexit negotiation. she is going to austria to try to lobby support for her deal. that is quite interesting, because the germans have got a lot of stake. they export a lot to the u.k.. the eu exports an awful lot to the u.k.. somee risk potentially political leverage she can win on that side. mark: there is no customs deal, labor wants a custom steel, the remainders want to customs deal. that baxter into a corner. her into a corner. >> no one knows the answer. we have very little time now. the eu and the u.k. are saying they can have a deal. some people are getting very worried. time is running short. she is going to be taking a one-week break. we have the parliamentary

holidays. certain -- suddenly it is going to be october. the market will be worried. --t banks have us there market commentators have us, their central forecast, a deal will be in place. that and expectation the bank of england can hike. to approach october, people will begin to worry there won't be a deal. mark: i've got this work function on my screen. probabilities, 91%. they can't disappoint, can they? >> it could happen. i don't think they will. england, if the market is anticipating they're going to hike, they might as well do it. perspective, if we look at november, if we look at february, if there is uncertainty with respect to brexit, they might as well go.

mark: this could be the last one for a while. >> it could be the last opportunity. if there is a smooth exit, the windows open up. from the bank of england's perspective, we have got to consider that they probably do want to normalize. most central banks would like to normalize if they have the ability. the economic data is more or less plain. the market is expecting. it is not going to be destructive. they might as well do it. mark: i have got to sneak in an ecb question. the rules go out the window today. yesterday with a bit of a non-day for the ecb. nothing on bond purchases. no discussion. not even a discussion about a discussion. we now know what summer means. there was a bit of confusion. >> a different translation.

he clarified, the discussion is in english, the minutes are in english. mark: the euro is struck -- stuck in a narrow trading range. what brings it up or down? >> we have got u.s. gdp today. we did see the u.s. dollar quite a long way. we have got the dollar a little bit firmer again. we've got gdp data. we're going to shift back to the fed. we don't think dollar strength is over yet. got industry differentials working in the dollar's paper. -- favor. mark: how many more rate hikes? the one.only thinking i think the day will be interesting. market expectations into next year assume as we going to september, there are quite a few opinions about the dollar. mark: later, our interview with

the l'oreal chief executive. 11:30 u.k. time. this is bloomberg. ♪

mark: 6:30 in london. 2:30 p.m. in tokyo. the boj announced its second operations this morning. it is important because the boj meets next week. the big question in the markets, will it week or announce some sort of intention to tweak, analyze its monetary policy? getting some data from the french economy as well. gdp just cost -- crossing the terminal. the economy grew by 0.2%. the economists were forecasting 0.3%. that is narrowly below forecasts.

second quarter on an annual basis, 1.7. the forecast was for 1.9. more detail later. let's check on the markets. good morning annmarie hordern. >> good to see you here bright and early. a mixed picture in asia. china down. you have to remember, the regional share gauge still headed to cap the strongest week we have seen since early june. it is really all about japan today. equities of 0.3%. climbing for a fourth day. we are looking to end the week higher. learnedin this hour, we the bank offered to buy the 10 year notes for a second purchase operation this week at the fixed rate. i want to look at what's happening with the japanese bonds. speculation intensifying they may tweak policy next week. this is where we are seeing implied volatility going into , the japanese bond

futures highest since december of 2016. i love this quote. a senior market economist saying regardless of what the boj does, market turmoil will be inevitable. get prepared for that. i want to look at the turkish lira. look at the monthly. really the drop in may. we saw another in june. look how it is dropping in july. more pressure as the united states is threatening large sanctions if the nation does not release the american pastor. this comes from a tweet from the president as well as rhetoric from the vice president. on welcomed for the lira. more downside for the currency. juliette: thanks so much. north korea releasing the s on theof some american anniversary of the armistice. plane force transport

flew to the eastern north korean city early today and returned to us on airbase in south korea with boxes containing the remains of 55 missing american personnel. it marks the first tangible outcome of president donald trump's summit with kim jong-un and signals progress in nuclear talks. the turkish lira lead global currency losses and stocks slumped after u.s. president donald trump threatened to impose large sanctions if the nation does not release american pastor andrew brunson. the standoff is an unwelcome publication for turkey at a time when it is grappling with an initial stress, that includes inflation, a widening current account deficit, and perceptions the central bank is not doing enough to shore up its currency. mark zuckerberg lost more wealth in a single day than the entire or ralphlue of nasdaq lorenz.

companies are worth less than the $15.9 billion that vanished from the facebook cofounder as shares of the social media giant plunged 19% yesterday. zuckerberg is now the world's sixth richest person which $70.6 billion, down three rungs on the bloomberg leaners index -- billionaires index. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark: turkey's cap has upgraded its passenger growth forecast. the company released its second-quarter results. the stock having climbed to a record high before that release. this as turkey faces political and economic turmoil. joining us from istanbul, the cfo of tav. thank you for joining us today. net income of 55%. consolidated revenue up by 8%.

can you replicate this performance in the second half? >> good morning. it is great to be here. yes, we think we can. that is why we have revised our guidance upwards. 40 to 60% waiting for growth. a significant growth in are net income for the second half. deeper,fore i dig a bit it can i ask about the political and the economic backdrop? you seem to be thriving despite what's going on in the background. yesterday we had president trump threatening sanctions because of this detention of this american pastor. can turkey, can you, whether sanctions if they are implemented? >> the reason our company has kindrmed so well is we are

of risk-averse and also seen as a defensive company. we have been watching the news and the tweets since a couple of days. hopefully it will be resolved and we hope it won't have a big impact on business. i'm sure you are aware more than anyone what's going on with the president and the turkish central bank and the movement in the lira, the bond market and the stock market. it seems the president wants to have more of an influence on monetary policy. the lira plunges, bond yields rise. how difficult is it to operate with that as your economic backdrop? think tav has a certain advantage over other turkish , earning their

revenues in hard currency. corporate, turkish any type of instability or economic problem what effect all turkish corporate's. haveuld be good to just the trust and the ability -- stability of the economy on the long-term horizon. mark: let's ask more specific company questions. aknow you are interested in stake of malaysia airports. are you still interested? yes, being in istanbul for the last 18 years, we are always interested in deals in turkey, especially as dental. -- especially in istanbul.

the existing shareholder has the right of first refusal. we were not able to purchase shares. our interest continues. there is no active process going on among us at the moment. in the future we will -- the: can you tell us about offer the government has made to you because of the closure of your main hub, istanbul ataturk earlier this year? has the government made you an offer to compensate you? as you know, this compensation issue has been on the new airport. the states authority has .onfirmed and compensated us the study for the valuation of that demand has already started with independents and advisers on both sides. meetings continue.

-- the matter will be resolved before the close of the airport. mark: thank you very much for joining us today. the cfo of tav. in inflation, turkey's economy faces a new potential problem with president trump threatening large sanctions over an american pastor. the warning causing the lira to extend losses. the head of fx strategy at rabobank is here. there is not one bus, two buses, or three buses when it comes to turkey when it comes to bad news for the lira, whether it is the central bank not raising rates, the threatening of more sanctions. is turkey investable? -- right now.y if you consider what sanctions would do, more hardship for many

of the consumers. if you think they import a lot of their food, you will be looking at inflation, that hurts everybody's incomes. that makes it very difficult. inflation is already high. the market thought they were going to have to hike interest rates why 100 basis points. they did not. that is very confusing and very worrying for the market strategists. if the central bank is losing credibility, it means if they come back and hike interest rates, they may have to go even more in order to gain their credibility. that is more painful for the consumer. mark: will the market force them? >> it is like a force of nature. it eventually comes out in the wash. there is going to have to be an interest rate hike or, dare we say, capital controls something.

this is a company -- a country with a huge deficit. if investors don't like the fundamental they see, currency becomes vulnerable. mark: the biggest basketcase in the m space right now? >> it is right up there. space, when you look at the broad em fx gauge, is this just a temporary respite? or is this the beginnings of a rebound? way. have come a long good -- turkey is out on its own. one or two others. the have such significant issues. argentina, turkey, etc.. if you look at the basket, one thing that worries me when it comes to em is china. if that chinese number does fall

further, that affects the competitiveness of an awful lot of regional currencies and commodities exported. that suggests risk appetite could still be low for a while yet. mark: are we at a place in the traits that where we can take a breather this week given -- where we can take a breather this week given that peace between the eu and president trump? >> that truce could make it worse for china. if you look at the wording, trump is talking about standing to look at the wto, to look at intellectual property rights. previously u.s. officials wanted the eu to stand with them against china. when you mention intellectual property rights, you are looking at china.

that means china could have the double pressure of the u.s. and the eu breathing down his neck. that is not very good for the chinese economy. that could mean more stimulus in china. that leads to other issues. mark: great to see you, thanks for joining us. head of fx strategy at rabobank. she will be on bloomberg radio live. exclusive interview live from paris next, a chief executive joins us after the company reported results. this is bloomberg. ♪

mark: let's get straight to our exclusive. they have met the average estimates. the tech company announcing sales grew.

joining us, the chief executive of cap gemini to discuss the company's results. thank you for joining us today. you confident about the second half of the year? outlook lookse very nice. there is one little question. 17 wasond half of significantly higher. we have reservations. will it be cloud and other emerging technologies that continue to drive the ship forward? is a continuing trend. the main factor for us is the fact that technology is no longer originated by the i.t. department, but by many business executives. ,e speak of digital marketing

tomorrow we will speak about digital manufacturing with the head of engineering. did become truly pervasive everywhere. that is the main disruption. it is very positive for us. digital and cloud are 45% of our revenue. competition in europe? we had this until deal. sintelat make -- the deal. does that make your life more difficult? syntel looks very close to the acquisition we concluded three years ago. they follow us in terms of addressing the market. i must confess, i understand it. i understand what they do. mark: if you are three years

will be'm sure syntel looking to see where you go next. where are you looking when it comes to acquisitions now? >> the key domain for acquisitions is one very hard segment where there are not many acquisitions. one is currently going on and we will wait for authority in the united states. we are waiting for a green light for authorities, cybersecurity is very hard. we will probably announce a few small ones in the future in europe and the u.s.. digital is the hard spot and ai. everybody speaks of ai. in marketing,i manufacturing. ai will become the main factor.

we moved from ai -- from i.t. to data science. mark: can i ask you about the political backdrop in france? congratulations for winning the world cup. the president clearly acknowledged and celebrated the victory. there have been scandals surrounding his bodyguards. clearly some of his reform measures are popular. how do you view the reforms in the labor market? are they working? thee are working on simplification of the dialogue with unions. less complex architecture, which we need for a smoother dialogue. i think that is working. the main point is all these summer, july agitation, we

should see what will remain in september, and will that slowdown reform. there is reform about to come on the retirement scheme. that is a major one. we should wait to see if the current political turmoil will slow down the reform. mark: are you spending more on hiring and training to keep up with demand in areas like icloud? today, the bottleneck is a little bit of digital. we could grow more. had grown in the second quarter 19% in the u.s.. we are growing double-digit in germany. double-digit in scandinavia. digital, data scientists, these our-- we are coached by

clients, not many by our competitors. have quadruple spent. we agree scalar people very l peopleely -- re-skil very intensively. mark: much of your revenue came from the u.k. are you comparing for the hard brexit eventuality? what would hard brexit mean for capgemini? the first point is we do not trade between europe and the united kingdom. ist we produce there produced there are from india. we are not impacted. it impact ourwill u.k. clients? that is most probable.

in the u.k. or some sector that exports to the u.k. -- there are some brexit possibilities will have an indirect impact. we expect to grow in the second half and the commercial market looks resilient in the u.k. mark: the chief executive officer of capgemini. thank you for joining us. breaking news. it has been a massive week for earnings. --lian oil company, and of it has been a mixed week for oil. a big buyback announced. the earnings missed. some of the other big players, to tell met -- total met. i wonder what the takeaway is given the push upwards in oil.

juliette saly is with us. havette: amazon investors shrugged off second-quarter sales that missed estimates, focusing on soaring profit that came in at double analyst projections. the online giant reported a record second-quarter profit of $2.53 billion on sales of $52.9 billion. the company has generated net income of $4.16 billion in the first half of this year. that is more than the previous seven quarters combined. bp has agreed to pay $10.5 billion for much of bhp's theore assets, including in premier basin. the acquisition gives the london-based energy giant position in the world's fastest growing major oil region. it is also a possible signal that big oil has rebounded from

the 2014 to 2016 crash. that is your bloomberg business flash. mark: let's dig deeper into the earnings story. the senior european equities strategist from bloomberg intelligence is here. good to see you. >> it is an interesting set up going into earnings. the market had paused. earnings hadof flatlined the last couple months. the set up was actually pretty easy. there seeing early signs reporting period is pretty good. sweden gives us a canary in the coal mine. they always report first. if you look at the swedish companies at this point, revenue is expected to be about flat. it is up 2%. earnings were expected to be up 6% and they are coming in 11 or

12%. good news, they are loaded with banks and industrials. both of which have surprised on the upside. now we are starting to see the rest coming through. it is interesting thing on the sector front. banks have been better. industrials have been better. on the industrial side of things, 16 versus nine in terms of beat versus miss if we look at msci europe. health care, which had been in the doldrums is coming back to life. that was one of these screened well. on the flipside, you mentioned energy with eni. energy has been a disappointment. that is where the set up stuff. oil rising -- set up was tough. oil formore momentum in that to continue. mark: coming up, eu negotiator

michel barnier tells britain he cannot accept theresa may's proposal. ♪ two, down and back up.

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european headquarters in london. europe."daybreak: amazon delivers, facebook falls. wipes out media giant nearly $120 billion, the largest individual stock route in history. bhp assetso buy most for $10.5 billion, the largest purchase in two decades. the rising yield for the second time this week. markets are primed for next week's crucial policy meeting. ♪

mark: second-quarter net revenue for this company, 3.0 3 billion pounds. -- 3.03 billion pounds. these are the headlines from reckitt benckiser. domestic products will likely be bought from reckitt benckiser. these are the only headlines we have so far. bt is releasing earnings as well. first cohort -- quarter adjusted for 1.80 billion pounds. a pre-tax profit, adjusted for

the first half, 816 million p ounds. numeral the above estimates -- narrowly above estimates. efforts to transform its operational model are on track. bt shares the last year down by 28%. futures, what are we going to see today for european stocks? week sincee best early june. let's figure out what is going to happen. the first trading days of this week had the stoxx 600 rising by 4%. this is the best run since may 18. fourda days of gains, the best run for two months.

this week's games, the best week since may 11. dax futures, what a boost the dax got yesterday of the announcement of the truth between trump and the european union president. germany, u.s.n futures unchanged. not too much movement in the bond market. the big data point is gdp. we will talk about that later. let's check on the bloomberg first word news. juliette saly is in singapore. trump's formerd personal attorney is reportedly prepared to tell federal investigators the president knew in advance about a june 2016 meeting where russians were expected to offer damaging information about hillary clinton. that is accorded -- according to

cnn. such testimony would contradict the public denials of the president, his son, and other campaign officials who claim the president was not aware of the meeting until more than one year later. north korea has released the remains of some american war dead on the 60th anniversary of the armistice. a u.s. air force transport plane flew to a north korean city earlier today and returned to an airbase in south korea, containing what are believed to be the remains of 55 missing american personnel. first tangible outcome of president trump's summit with kim jong on -- kim jong-on. official election results in pakistan are marred by the deadly violence. winner got 169

upon to formagreed a government. mark zuckerberg lost more wealth in a single day than the entire market value of nasdaq and ralph about 175 companies in the s&p 500 are worth less than the money that vanished from the fortune of the facebook cofounder as it shares of the social media giant plunged 19%. he is now the world's sixth richest person, worth $70.6 billion. global news on air, 24 hours a day and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. you can find more stories on the bloomberg at tocgo. chineseest on the large mid-cap market this year -- let's check out most of the

green in the region. asia-pacificci index is higher for the fourth consecutive session. the move coming from the boj and the last hour, up by 6/10 of 1%. analysts may predict we could see a tweaking from the boj tuesday meeting. ansx, the sixth session of gains on the indian market. the australian market, propelled higher up by over 2%. nomura in tokyo, falling the most since after the u.s. election in 2016. a 91% drop in first-quarter net income. singapore, singapore airlines also under pressure. its profits due to some of its hedging on fuel.

mark: thanks. up going to bring reckitt benckiser. big news. revenue growth for 2018 will be at the upper end of its 3% range. it makes a number of products, lysol, all sorts of products i used to clean my house. that is the share price in the last year. brexit at the open. the european union has rejected a key proposal for a trade deal with the bloc's chief negotiator. he says he will never allow a nonmember to collect tariffs. 12 weeks minister has until a divorce deal is meant to be signed.

joining us now is the head of market analysis. what do you make of the news theresa may will take control of brexit negotiations? brush-off, this another one, from michelle on theresa may's grand brexit plan. its leaves are in the same place she was in the middle of last year. if you look at all the material successes she has had in negotiations, it has come as a result of giving the european union what they want. we could be looking at theresa may heading up negotiations personally. she has gotten rid of johnson and davis. we could be looking at another concession for favorable headlines. own with thelimb-d customs union.

it has always been a redline for theresa and the brexiteers. is this going to be another redline? if we will see a customs union with the european union. it is possible. we will see concessions in order to a achieve a free trade deal on deal -- on goods, which is in the interest of the european union. mark: we are in the recessed time, partly. -- aren't we? this is the summer season. what is going to happen over the next couple of months? october is looming. this is a time when a want of these finer details were meant to be resolved -- a lot of these finer details were meant to be resolved. agreement,ine of the whether it will be resolved or

not by october is slim. union, we could get a plan by october and have the makings of a deal. mark: how does that leave the bank of england? it is highly expected to raise rates. is it a one and done? given october and brexit is looming and the deadline is next week, when will they hike? >> they probably will hike next week on balance. but they are more concerned about the shape of the bankrupt economy. enough for has inflation to sustain targets. but if you look at the forecast in the last couple of reports, if it moves down any further, we a third of the

probability distribution below target over the next couple of years. mark: it will be a bit of a shock. >> yes. they are better off before. mark: normally they back off before the meeting, not actually at the meeting itself. if they didn't hike next week, -- what you said about it being one and done, that is almost certainly what we'll see. carney has been in hot water before. that will be an indication as to what is happening in the future. one or two rate hikes will be necessary this cycle, but then very distant in the future. mark: ranko, you will stay with us. shareholders of 20 and walt disney voting today on -- 21st century fox and walt disney voting for fox's entertainment

assets. fromntitrust bid was won the doj. into --'s take over agency is expected to hold hearings on the price sky should have to pay. joe is here. let's start with a shareholder meeting. what is going to happen. ? shareholders could overwhelmingly backed the $71 billion merger 22 companies. comcast has dropped out of the race. rupert murdoch and bob iger have their deal. the asset in play. >> what is happening on the sky front? will does come back with a higher bid for sky? that bidding war could continue.

we have seen in the shell meeting, they may get that out of the way first. that is the bidding scenario. mark: what is the broader implication of this price ruling? >> the u.k. takeover panel has the power to tell a company they must bid for all of sky. disney would only by the fox assets. but at what price would they forced disney to bid for all of it? 14.75mcast bid is at pounds. if theyonly relevant is say the comcast bid should be above that. mark: in one year, who will have which assets? e: disney will have fox and comcast will have sky. comcast has focused on this battle for sky. even if disney comes back with a

bid, comcast has focused on this asset. mark: wasn't sky the crown jewel for bob iger? said.hat is what he a real crown jewel. fake even better than a one. joe: the question is financial capacity. can disney also add fox to sky? it is a question of firepower. comcast is not in the fox battle anymore. mark: where do you buy your fake jewels? joe: i buy real ones. mark: [laughter] good to see you, joe. fights rising boj

yields, live in tokyo. this is bloomberg. ♪ mark: 7:17 in london.

roughly 40 minutes away from the market open. let's get the bloomberg business flash. payette: bp has agreed to $10.5 billion for most of bhp's onshore shore and natural gas assets, including the permian basin. it is the company's biggest acquisition in almost two decades and gives the energy giant a position in the fastest-growing major oil regions. it could signal that big oil has mostly rebounded from the price crash. loriel'sin mass-market brands is weighing on because medical giant's sales growth -- the comsmetic --

cosmetic giant's sales growth. growth in the luxury division was helped by the long -- hong kong division, the mainstream line fell short of expectations. we will bring you the interview with the loriel ceo at 11:00 p.m. u.k. time. mark: let's get to japan. seeking to tame a yield increase, fueled by speculation the central bank may adjust policy. joining us is our asia cross-assets managing editor. boj isstors think the going to tweak its policy next week? mark, it has been a very

boj for somet tejhe he time. this week it has been fascinating. we are seeing volatility in the bond market we have not seen for quite some time. perhaps back to when they adopted the yield curve targeting policy in 2016. there has been so much speculation about some fine tuning in the boj's stimulus program at next tuesday's meeting. it would be a surprise to most market players if there is no change whatsoever. the boj has not come out in any concerted way to dispel the notion they are looking into making their policy stimulus more sustainable over the long haul. for now, they have telegraphed today and monday that the

guidelines are the guidelines and they are ready to enforce them. on monday and today when yields started getting further away from zero percent on the 10 year bond, they have come into offer and unlimited amount of -- an unlimited amount of bond purchases to the front a -- pr event a breakout in yields. mark: if the boj was to tweak its policy, beyond japan, what might be the market reaction? seen: we have already global implications this week of even a small shift in the boj's policy. if you look at the 10-year u.s. treasury note, the yield is pushing 3%. we had the biggest weekly move in tenure treasuries since back in may -- ten-year treasuries since back in may.

you have potentially even a bigger impact from the boj and ecb on global yields than the fed. everybody knows what the federal reserve is doing. they are shrugging the bounce sheet -- balance sheet, raising their benchmark every quarter. powell has said they will keep doing that. what is less known is what the stance of the boj, ecb will be over teh next -- the next year. the ecb on thursday indicated they will not be raising for one year. the boj is signaling, through these media reports, it is looking at a potential tweak. speculation you

are going to have less foreign money pouring into treasuries. they will be potentially higher rates in japan to invest in. mark: chris, thank you. is the boj our most interesting central bank in town? >> the rumor of a policy change has made it the most interesting. the back end in't -- ain't moving. the slightest tweaks to that policy would have implications. we have the prospect of increasing real guilt. what is in it for the bank of japan to do that? they have ample political license to continue their monetary policy.

program.d the ecb's qe 1% is what it has been for the last three years. japanot sure the bank of has the same incentive to get ahead of the curve. it is more likely the attempt by the boj to attempt to lag the ebc -- ecb. u.s. a booste the with tax cuts and spending. bunkley witnessing in the second quarter -- won't we witnessing in the second quarter? >> there is a big spike to the median forecast. a lot of people think it will be 4% or 5%. president trump has mentioned a very high number. i think it will be strong, but how much of that is priced in and how much of this will be a sugar high from the fiscal

easing? mark: after a high, there could be a come down. look at this chart. a simple chart. we talk about it every day. the narrowing of the yield curve. the bottom line is what it did to the gdp. is affected and it has forecast the ability -- did we get the inversion? does it forecast a recession? the reason the u.s. yield curve is flat at moment is due to the reluctance of the back end to rise. we don't know how long the sugar high is going to last. the reason it goes black is because of the back end is not moving. up, there yields pop is the incentive for money to flow in and pop back down. we could be looking at a

situation where the bank of may bend the ecb normalizing in the next few years. we may see the back end the u.s. curve move. mark: where are we at the end of this week on trade? extent is the trade monitor flashing on this friday? trump is talking a big game, then dialing things back with minor concessions. handshake with the president of the european union was not a similar to what happened with kim jong-un. what did he call jong-un before -- junger before teh -- the meeting? he meant it as a compliment. ranko, great to see you.

thank you so much. bloomberg continues. this is bloomberg. ♪ ♪ this isn't just any moving day.

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live from our european headquarters in the city of london. i am matt miller. guy johnson is off this week. the cash trade is less than 30 minutes away. ♪ matt: tech goes both ways. amazon reports record second-quarter profits after facebook takes a historic plunge, wiping out $120 billion in market cap.