good morning >>. i am anna edwards. this is daybreak europe. more pain ahead. the emerging market rout shifting to stocks. benchmarks lowering. stanley recommends keeping up its against emerging market currency as south africa enters a recession. regained some ground as the eu set to explore some options.

good morning, everybody. this is "bloomberg daybreak. let's have a look at the risk rate. asianequities, down on markets. focused on where the pain falls. trade conversation set to take place. part of the trade backdrop. possibility ofhe more imports. stabilization. the lowest levels in more than a year. a big focus on inflation, and particular, turkey. things to watch there. the australian dollar.

let's mention what is happening in india. services pmi, 51.5%. substantial slump in the services pmi. rupee, weakening against the dollar. we continue to watch where it trades. back on the risk radar, the south african rand, on the rise e. re this currency weakening. we are keeping then i on the contagion story. respite for emerging markets? ,ome of these markets stabilizing a bit.

are we going to see the stability. let's look at what is going up today. a lot of news out of the u.s. auto sector. speak exclusively to the volkswagen's cfo. trends.ing something we have seen for some time. let's get the first word news update. >> thank you. central bank has published a survey showing the economic outlook to charlie or dean. recession,sted weaker currency, higher inflation. officials had made progress with leaders seeking to reform the credit line.

donald trump and his allies have attacked a book by bob woodward. it is titled fear. it portrays the president is internet liar. trump tweeted, it has been discredited and contains fraudulent quotes, describing it as a con. looking union officials to unlock a wider brexit deal. they accept an earlier version of the plan was heavy-handed. this suggested the block's willingness lies behind a cross for more detail. merkel has added some of her political weight behind a

move of euro clearing to frankfurt to she fell short of a full endorsement. the comments, after months of a lobbying. rates want the market to be moved. north and south korea holding talks. delegationoon's rid the peninsula of nuclear weapons. global news, 24 hours a day. powered by more than 2700 journalists and analysts. you can find more stories. in asia, the regional benchmark index down for a fifth session in a row.

this contagion fear spread from currencies to equity markets. on the back of that weakness, coming through in the rupee. a high reading of philippine inflation. and look at it out stocks, we can see why it is being sold off. the weakness in telcos across the region. china towers slumping to a record. ahead of the decision on potential inclusion in the index. great wall motor, also leaving in car stocks. morgan stanley, cutting its target. 42%. japanese retail stocks, coming

under pressure as well. many saying it will dent consumer spending. >> thank you very much. emerging markets. currencies to stocks. a negative own set by manufacturing data. slumpssouth africa had into recession. are managing editor. good morning. you are in dubai, i am in london. is the latest action a reminder it is not just idiosyncratic risk worrying people? the idiosyncratic stories make for interesting headlines. what is going on in turkey. fascinating.

numbers thatring came out of the u.s. yesterday were a reminder of this steady drumbeat of u.s. interest rates. increase this month. maybe another in december. that is one is weighing on investors minds more than anything. that backdrop. easy money, set against these headlines. people running for the doors. >> we talked to a person, talking about a dollar liquidity story. how significant was the rand selloff? risks there. >> the rand is used as a proxy emergingment toward

markets in general. it is liquid, easy to do that. what is interesting about the numbers, they are backward looking. the market took this as an opportunity to sell off and send of the rand down a considerable amount. towardying it is headed 16. markets at nature of the moment. this is not a reflection of where south africa is. we have a person in charge who lifting sentiment. the problem is, he might get associated with economic collapse. that raises the risk of him not doing well or losing the election. we are replaced by something where we don't know where policy goes.

to be done for emerging markets to be call mark. there are things they can do. we watch what argentina has already done. you ask how much of this is in their hands? >> that is the key question. we could see policies of policy being introduced quickly. i don't think that would turn around the story. corporate borrowing costs, putting pressure on currency. the ability of nations to meet foreign debt payments. atmosphere -- what perhaps ahange,

cooling down of interest rates. we will see confidence coming back in. people will go back into the riskier credits. atmosphere. >> thank you very much. here, the india head of commodities and a rates at jpmorgan. interesting conversation around the rand. it is interesting to remind ourselves, investors sell what they can, not necessarily what they want to. a chart showing the rupee. stand?e your concerns >> we are seeing broad-based selloff. it is not just argentina, turkey. looking across the whole spectrum. right now, we are cautious

around emerging markets. not all is equal to we are in a position where we continue to see the selloff going on and we are not ready to enter into these markets. the market is functional -- fixated on the markets with debt. that is a huge component. previously, we saw the fed increasing interest rates. it made it easier for these thetries to keep up with payments. when the dollar is rallying, that is making it ethical. emerging-market assets, are you looking for clues? higher rates? tighter fiscal policies? have you seen enough of that, from argentina? >> it is a bit of both. if you are think about

argentina, they have increased, interest rates at 60%. looking at some of the flaws. turkey is another example. >> the dollar is so strong and the economy. the mindset off investors. the dollar is starting to rally. risk,e had political political tensions flaring up as well. those countries with elections coming up are under threat. see -- did to see some of those policies. only central bank, it is putting more pressure on this move. banks, and could

relieve some of the policy. i was reading about one of my colleagues, a lack of contagion. it was the nervousness around the volatility products that caused tension. emergentt seeing market tension. does that tell us something important? currency crisis. hit.ncies are taking a we have seen a flareup. we are not at the point we are going to see some of the debt

default in. some of that contagion is minimal. we are not worried at this point. we are not seeing the bank market reacting. as long as that continues, we can continue to talk about the story around it global growth. you see it for the broader stories. speaking todent trump. i wondered, what would a u.s. administration be interested in doing? maybe not very much. the global economy, the u.s. economy. thank you. stays with us on the program. britain's unreliable boyfriend stick around? we will hear what he says in bloomberg. ar what he says in bloomberg.

morning, everybody. the pound against the dollar, more stability. mark carney. more on that shortly. a little stability. juliette.

general motors sales fell by about 13%. the automaker pulled back on incentives. the result trailed average estimates. that may have been dragged lower by a drop in fleet sales. a spokesman declined to comment on the figures. the chairman of more than two decades is facing opposition to his reelection. the groups and investor advisory services are lobbying against the reappointment. a longtime ally. calledhas posted what it testimony for social media.

midterm races. it does not appear anyone will be there to deliver it. senate intelligence committee has rejected the chief legal officer. the hearing will include a twitter ceo. nike shares have regained ground in extended trading. of: is as critics kaepernick took to social media to call for a boycott. nike received more than $40 million in the first 24 hours. amazon joined apple as the second trillion dollar company as shares rose. the have added money to market cap this year alone. pocketed money in

the last eight months. millionrth of 160 dollars. -- . new comments coming through. to a latvian publication. a bank should move to the area 2-3 years after brexit. we will take into this. is what is being referred to here. angela merkel adding some of her weight behind a move. stopping short of a full endorsement of that kind of move. speaking on a panel. we'll keep an eye on that one. let's move on to what is happening in the u.k.. mark carney, opening to extending his tenure a second

time. due to step down next june. we have to make the announcement on the half of the government. i have a willingness to do whatever i can to support this process. we know there is a lot on at the moment. -- government has a lot in on their plates. beould expect it to resolved. it is not for me to resolve your made >> mark carney. a lot of conversation over the last 48 hours about the future of mark carney. carney --ave complete clarity although there is reported we will hear from the treasury soon. looks like he is keeping things

they. it matters at the margin? he said brexit is such a huge unknown. >> i think so. around ofncertainty brexit. we don't know which way this is going to go. the knowledge, knowing what the -- to the central bank governor will be and what his policies are, how he reacted in 2016, seeing positive i markets. that could give comfort. it should be taken as a positive thing. >> seem positively by markets. by brexiteers. let me ask what percentage attached to various outcomes.

politicians seem to throw them around. what percentage are you were touching know deal brexit? >> i think it is difficult to pose a percentage. there are so many different ways this could go. it is difficult to call the politics. if we get a transition agreement, there should be a way to muddle through. we started the year with this being very much a tale. it is very clear that probability has increased. a real risk. it is low enough, it is not our base case. quiet ask in terms of the underlying u.k. economy, i have a chart.

courtesy of my colleague. some of the developed markets subject to the same weaknesses. current account deficit. the u.k. and the u.s. looming large. what is the big weakness at the moment? >> as you pointed out, the fundamentals have not been that great for the k. current deficits. the growth story has been strong. brexit poses a risk to that growth story. what happens to businesses? banks may be having to move to europe. that is a big risk. these things can pose a problem. data showing the market is getting concerned. >> thank you, joining us.

president trump facing new hurdles in washington. can he bend canada to his terms?

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows.

this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. good morning. is 6:13, london. the euro against the dollar. 89 is where we trade. numbers coming from germany. from the purchase of the agricultural giant monsanto. they have completed their biggest purchase in history. $9.48 billion. the first time we are getting the group outlook.

a shade below the estimate. the outlook, confirmed with adjustments to reflect the purchase. 2008 being, confirmed. the estimate previously, 38.57%. uplift to the guidance coming through. backward looking. a little below. higher in terms of the outlook. -- backwardoking looking, mixed. we will leave that there, of course. they do have this roundup issue to contend with.

a california court awarding damages to a school groundskeeper who claim the herbicide had caused his cancer. still a topic of conversation. let's look at what we are watching out for. their first prime minister's questions. sandberg, jack dorsey testifying on russian election interference. fromt a monetary decision canada plus central bank. canada andue between the u.s.. let's check out the latest. good morning. declines looking at across the board. e.m. contagion weighing on asian assets. indonesia, down more than 3%.

philippines, also dropping. highestn numbers, the in nine years. steep declines. australia and china, down nearly 1%. a deeper dive in what is happening. one of the worst performing regions in the globe. looking at the invest decline, the lowest since 2015. , it isatchers say difficult for the index to decline.ny sort of i want to look across at currencies. volatility spiking. you can see this spikes recently with the turmoil in south africa. turkey, argentina, what have you. does this remain contained? does the dollar get that safe

haven bid? >> more details coming through. confused on the outlook. 2018 was confirmed but they were making adjustments. 2018 earnings will be lower than projected. we will see how this goes down. we will look for them to comment on legal provisions, court costs's. we will look for further commentary there. we will get one of our colleagues to join us. in singapore. >> thank you. argentina's central bank has published a survey showing the outlook deteriorating. forecast a deepening

recession. imf's christine lagarde said progress was made with argentinian leaders. following a selloff in the peso. >> we expect the deal will be signed in the second half of september. we need an agreement before that. >> european union officials exploring how to unlock a brexit deal. learned that eu accepts eight earlier version of the plan was heavy-handed to the source suggested, the willingness to be flexible lies behind a request to be more flexible. japan, regionals -- regions

around osaka struggling to recover from damage from a typhoon. that is the airport remains shut. the strongest tropical cyclone in 25 years. -- tanker smashed into global news, 24 hours a day. this is bloomberg. >> thank you. in singapore. now to the subject of trade. prime minister says his government will remain steadfast on some key issues. he says he prefers to see the current pact killed rather than accepting a bad deal. seniorning us is the

international editor. where do we stand? where do things stand in the talks? replacing nafta, including all three countries? >> the parties are still talking. there was a deadline president trump had last friday where he wanted to announce it to the congress. or the u.s. is going to have to blink. key differences. president trump wants to move forward quickly and said he can and ahead without just mexico. that is not suddenly congress or labor leaders want to see. minister, the prime has said he will only make a deal right for canada. he will not sign on it until key

issues are resolved. >> remind us of the speaking points. >> that is right. there is -- the dispute revolution is an issue. it almost caused canada not to sign nafta. panels,spute resolution a key point canada is requiring. another, the so-called cultural industries be exempt from nafta. they want language in that. the prime minister said he will not make a deal until they use -- those sticking points are resolved. >> joining us with the latest on the talks set to resume today. meanwhile, the head of commodities, still with us.

when you look at the trade i guess we wait to see whether we see anything like this. what have you learned about what the trump administration once -- wants? case as we saw these as tensions, not a full on war. a policy tool for president trump to put their agenda through. it shows the first sign this is what is happening. he is using this rhetoric as a way to get the u.s. back to trade deals, to help them ahead of midterms. this is still just trade tensions and not a war. stocks? does that leave

expectations,heir because of extreme divergence. this tension,ss we have seen u.s. stocks doing nicely. have they diverged too much? fundamentalld allow stories to come through. ultimately just some noise in the background. it can be translated to fx markets. weak.llar should remain it means this is noise. we haven't changed any of our thesis around the u.s. with regard to the policy. we don't think where going to have a full on trade war.

>> what would it take? the dollar appreciating with equities. , to we did take for you decide those are something? if you see trump putting tariffs on imports? are we talking about slithers of >> the initial tariffs against china were a small impact. -- thatresident trump has a bigger impact. at this stage, we are watching carefully to see how this develops. talks, they are open to dialogue. while the dialogue is still

happening, they are willing to have discussions, it makes us comfortable we are not seeing a full trade war. they will not want to go down that path. >> we will see whether that comes to happen. colleagues was talking about maybe we need to do that. me call mustng august in 50 years. the path has been upward. treasuryave shown you charts, trading in a narrow rate? if you are not worried about a trade war, maybe that is not something you need. risk is still there. volatility has been low. it is not uncommon to see it start to pick up and equity markets.

it does start to move higher. badng volatility is not a strategy. case around base trade, the dollar in general, there are risks around that. idiosyncratic risks that could see a spike. not a badatility is strategy. >> thank you very much. the head of india fx and commodities, a few headlines from italian newspapers. we have been focusing on italy. deputythe papers, premier, reiterating the government will support eu limits. sideebate on the deficit will come at the end. the government will not do everything immediately. lots of comments coming through.

also, in italy. the government, the italian government is going to hold top-level talks. a lot of headlines coming through. remaining alert from details. the bloombergning team at 8:00. stay tuned for that. a backward looking stock. the market focusing on the theook and nuances on guidelines. amazon briefly touches the $1 trillion mark. text giantbattle the focuses on. this is bloomberg. ♪

>> good morning, everybody. let's get a bloomberg business flash in singapore. >> general motors sales fell by about 13% as the automaker sales incentives. that is according to bloomberg sources. results trailed estimates. that may have been pulled back -- they did confirm the company that i'll the back discounts. of twon air chairman decades is facing opposition to his reelection at the annual meeting this month.

they are separately lobbying against the reappointment. a long time opponent. nike shares have gained ground after falling by more than 3%. that is after the decision to hire colin kaepernick. nike received media exposure in the first one he four hours. that is your business flash. >> thank you very much. amazon shares gained enough to push the company passed the $1 trillion mark. emily chang has the story from san francisco. >> amazon shares briefly crossing that mark, 11:39 a.m. time.

30,000% since the lows of -- dotcom bust. jeff bezos, 60 $7 billion added to his fortune. of bill gates. shares have gone up. this as jeff bezos makes bets on the cloud, grocery, pharmacy. streaming video. the risks ahead are big. take a listen to what what -- one market watcher told us. there is a lot of value in a number of other stocks. google is aink tremendous value. it has a lot of the key business drivers. microsoft is again close to the

trillion dollar mark. into a leading cloud play as a well. i think you could have some profit taking. people reallocating the money into other stocks that have potential to go across the trillion dollar or at least increase in value. >> there is the threat of regulation. president trump has made it fan of the not a country tweeting. others have criticized them for paying workers enough. it will not be long before amazon is firmly in the valuation club with apple. emily chang. >> it happened briefly. attempts toinuing

reenter china. a one-time former president how hard it is for big attack on both sides. >> google would like to have products everywhere. , missing a biga piece. having said that, back to china, not easy. we do not see many examples of successful tech. probably the single example. more of a hardware product. chinese companies having much success. we have developed to a point where china and the u.s. are parallel universes. yourtack of software on phone, building a good app, totally different. it is not easy to build an app to the u.s. to read google

build one for china. >> what would your advice be? ads on the social network. there might be an american product that does not exist. bestwould probably be the approach. i would suggest, if it is american giants could partner with a chinese company. tencent search, powered by google. baidu social product. you have a local partner who knows how to succeed. follow regulations more

precisely. >> can you imagine having those? speculate they are. even at google, there were collaborations. google did power tencent search. >> development in ai can be monetized. what are the potential opportunities of that? we are at an early phase. the clear area where it can be monetized is the internet space. google,where we see amazon, facebook. prediction, and so on. the next set of industries will be roughly in order. retail industry. health. education.

transportation. over time, all those will yield profits. to those traditional companies. banking, automotive, a long sales cycle. one thing for sure, a traditional company that does not embrace ai is going to be out of luck, out of business. moving onto the subject of ,urope, the italy budget talks the italian papers have headlines. tax talks taking place today. the deficit around 2%. flat tax has been postponed. a three-year timeframe.

the message you get, reading all these headlines, they are trying to focus not on the short term. he says it is a three year time horizon. maybe they made to not focus on budget deficits that a couple years out. >> that is where the marcus focus is. they dealbout how can with the immediate fiscal concerns? 3%, we have heard differing things. we get toward the october deadline, more proposals, that can help to ease the market in the short term. italy is an important component of the eu. there will be consolatory approaches to get it going. , one of the going

deputy premiers. thank you very much. much for joining us. our merging markets continue to feel the pain, from argentina to south africa. th africa.

good morning from bloomberg's european headquarters. more pain ahead. the emerging market rou shifts. fears of higher funding costs. morgan stanley recommends keeping up em currencies as south africa reenters a recession in argentina's economy. rates. -- economy deteriorates. the bank of england's mark carney refuses to rule out staying had his post until 2020.

good morning, everybody. 7:00 in london. which means a fuller picture from the futures market. we are expected to go weaker because of the asian equity session. the emerging market focus switching from currencies into equity markets. trade remains a concern. we wait for nafta conversations to resume and we watch for the white house tomorrow when we see tariffs imposed on china. more stabilization in emerging market currency at the lower levels. stabilizing in the last 12 hours or so. lows we have not seen for over a year. the focus on em inflation. numbers from the philippines showed the challenges that lie ahead. let's have a look at the bond

markets. we have had a host of headlines from the italian press. .talian btp futures here o.a.t. futures and btp futures for you. we would expect see money coming out of equities, more money going into bond markets. that does seem to be what we are seeing in prices this morning. this mixed set of headline coming out of the italian press, pushing the message that the three-year plan, well that be seen as a bit of a positive? by bond markets. we will talk about that. let's talk about u.s. futures for equity markets. we are expecting europe to open in the red. u.s. markets should as well. lots of questions about contagion. one of my colleagues writing about how we are not seeing the em crisis spilling over into the bank markets. there is no sign of chaos there or the lack of trust building up within banking circles.

that could be seen as a positive for investors. we will talk about that. let's get a bloomberg first word news update. juliette: argentina's central bank has published a survey of economists showing the country's economic outlook deteriorated significantly last month amid a renewed currency crisis. they also forecast a deepening recession and higher inflation. saidnight the imf officials have made progress with argentina leaders seeking to reform the credit line agreed in june following a sharp selloff in the peso last month. >> we expect the deal will be signed during the board meeting that will take place in the second half of september. we need a technical agreement before that. juliette: german chancellor angela merkel has added some of her political weight behind a movement of euro clearing to frankfurt.

she fell short of a full endorsement. the comments come after months of lobbying by a ceo calling for the clearing of financial moved to theo be euro area when the u.k. leaves the bloc. in japan, regions around a sock are struggling to recover from , whichleft by a typhoon left hundreds of thousands of buildings without power in the area's main airport close. the airport remains shut today. it was the strongest tropical cyclone to come ashore in 25 years. a taker smashed into the road and rail bridge connecting to the mainland. 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. you can find more stories on the bloomberg at top . throughontagion flowing

intermarket sentiment once again. you have the msci asia-pacific down for the longest losing streak in three months. have a look at selling in china. the csi 300 extending its dropped by 1.4%. also significant pressure in the indonesia and philippine markets. philippine inflation the highest in nine years. the rupiah weighing on the jakarta composition. japan closing lower by around 0.5%. let's have a look at currencies. this is where we are focusing as we continue to see this em contagion. you have the rupiah slightly higher against the dollar today. it had that to decade low during yesterday's session. 15,000 is the next level to watch. the cn why just slightly higher. the pboc adjusted liquidity as part of its policy. certainly watching all efforts to try and defend the currency.

the aussie dollar fairly unchanged. we did have a pickup earlier. -- saw australia's economy expanding faster than expected. and you are not even there to help them. thank you very much. now for emerging markets from currencies to stocks this morning. strong u.s. manufacturing data. monetary tightening and news south africa has slumped into a recession. our emerging markets editor joining us in dubai. was the latest growth action another reminder it is not just risks associated with emerging markets we talk about quite a lot worrying people? there is something bigger going on. >> that's right. make foryncratic risks very interesting headlines when countries and

markets such as south africa, turkey, brazil, and of course argentina. what is really going on here, as we saw from the reaction to u.s. manufacturing data yesterday, is investor concerns about how quickly u.s. interest rates are going to rise and how that will keep the dollar on the ascent, and how that will impact emerging market currencies. that's what is going on. it's this steady drumbeat of rising u.s. interest rates in the background, constantly, regardless of idiosyncratic risks going on at the domestic level. >> focusing on one of those markets. we talked a lot about south africa. how significant was that move in the rand yesterday? >> it is interesting, because this was a gdp report that shows

the south african economy has returned back to recession for the first time in nine years. typically that would not be the reason for a currency selloff. a country in recession is almost by definition anti-inflationary. what we saw was a selloff as a reflection of the somewhat nervous, skittish nature of the markets. and the perception that perhaps rim oppose a, who has been greeted as a market friendly leader for south africa, is going to get associated with economic contraction. economic collapse. that could put him at risk in the coming election in south africa. we do not know what kind of leadership south africa would get. anna: thank you very much. joining us from our studios in jabar -- dubai. ramsey, good to have you with

we are focused on the fx emerging market story. it does seem to be spreading into equities in some parts of the world. the asian session is under pressure. reaction, the rand is quite a liquid currency. investors want to sell and get back into the dollar, they don't sell what they want to sell. they sell what they can sell. where are your concerns focused? >> when you look at emerging markets today, all of them seem to have separate reasons. they all been hit over the head with the same thing. that is the rising u.s. dollar. it is only when the tide goes out you find out who has been swimming naked. asia, seeing countries in all of whom rely on very high u.s. dollar funding. investors are starting to worry maybe the dollar rises you may not be able to pay back. they are taking capital out of

those markets as the availability of capital starts to shrink. >> does this raise questions about what emerging markets start to do? we have seen all those activities by argentina. some of these countries playing by the imf rulebook. others less so. we see actions being taken. does it raise questions about what they can do on their own? if this is a u.s. strong dollar story? ingetting your own capital order is usually the best medicine you can take to bring back investor confidence. especially emerging markets, they need capital in order to grow. that's what countries need to do and that's what the imf is putting forward. the difficulty is it usually brings a strong dose of medicine to begin with. anna: what are you looking in terms of the global equities story?

some currencies have come under pressure. i am thinking of india. we currency has helped. maybe the thinking is changing. where do you see changes in emerging-market equities as we navigate the conflict waters that are prices? >> going back to your original economy gotdia's finances back in order. this used to be the goto country when he came to emerging-market issues. it is not anymore. it shows how getting your fiscal books in order is positive. look at emerging-market companies that have a high level of export oriented products. they tend to generate the revenue in a broad mix of different currencies. south africa is a good example of that, where a lot of exports are u.s. dollar-based.

sorry, in south african rand. your margin should actually be increasing. anna: and look at the underlying equities. what about the subject of contagion? one of my colleagues writing about how we don't see evidence of contagion expressed in the interbank markets. if there really was a global fear this could be systemic, this could have a big impact on global markets, we would be seeing more tension. this is the spread showing no obvious worries at the moment. they are short treasuries versus libor. no suggest -- suggestion markets are looking up because of this crisis. is this something that happens only in emerging markets? >> the u.s. continues to grow. europe is growing. all in different parts of the world and growing. they will all have an effect on emerging markets. the world economy remains strong. what will be disappointing to see is the u.s. starting to slow

down. we have issues in europe, a selloff in the metal. then i think we will start to see issues. performance is a good thing? it doesn't seem to be destabilizing other parts of the world. >> china is still growing, india's this still growing. none of the figures show we have a massive issue on our hands. anna: thank you. he stays with us here on daybreak europe. a company says 2018 earnings will be lower than projected in february. key battle over its roundup. the latest on this story from berlin. volkswagen's cfo will be joining us on bloomberg for an exclusive interview at 11:00 a.m. u.k. time. an interesting shift taking place in the u.s. auto market.

this is bloomberg. ♪

anna: good morning, it is 7:17 in london. a company with the rest of european equity futures it's adjusting it will be weaker at the start of the trading day. let's get a bloomberg business flash. juliette: general motors sales fell by 13% in august as the automaker pulled back on sales incentives, especially for full-size pickups according to bloomberg sources. the sales result trailed estimates for a 7.7% drop. that may have been dragged lower by a pullback in fleet sales or discounts as demand deteriorates. a spokesman declined to comment.

ryanair's chairman of more than two decades is facing increased opposition for his reelection at the irish discount carrier's annual meeting. the idf and international labor group and investor advisory service group are lobbying against the reappointment of a longtime ally of the ceo. what it calleded testimony for a congressional hearing on social media companies efforts to thwart election meddling head of november's midterm races. although it does not appear anybody -- was actually deliberate. the intelligence committee has rejected it chief legal officer as a witness because he is not high-level enough to testify. the hearing will also include jack dorsey and sheryl sandberg. -- haveres every down

regained ground after falling 3% yesterday. critics of its decision to hire colin kaepernick to the social media to call for a boycott. marketing says nike received more than 40 -- $40 million in media exposure in the ads first 24 hours. amazon join apple as america's second trillion dollar company as shares rose again. moreetail giant has raised than $430 billion on its market cap this year. jeff bezos has pocketed billions of dollars, giving him a net worth of $167 billion on the bloomberg billionaires index. 41-year-old pimco portfolio managers specializing in interest rates derivatives is retiring at the end of this year. he joined in 2010 and managed its extended duration and $1.2 billion u.s. government fund,

among other strategies. his comanagers took over the fund at the end of last month. that is your bloomberg business flash. anna: thanks very much. onto corporate reporting. ayer has warned -- will be lower than estimated. that is after a purchase of monsanto. let's get analysis now with our european joe -- drugs reporter. why is buyer's earnings forecast lower? what changed? function of a timing. bayerk longer than anticipated to close this deal. a larger portion of monsanto sales, the first half of the year. therefore bayer was not able to book those.

they are not benefiting as much from monsanto this year as they expected they would. a symptom of is technical reasons as well as anything underlying going on. what about the other challenges with the mega business they put together? how many court cases are now outstanding? what is bayer's reaction to that? >> the number of cases has risen again. we are up to as of the end of august, 8700 cases of people who are claiming that the main ingredient in roundup contributed to cancer in many cases. anna: any impact on the dividends if that is the case? has a said this year they will keep their dividend at the same level as last year.

they will give a slightly larger portion of their profit per share in dividends. anna: thank you. european drugs reporter for bloomberg. we will be speaking to the ceo of bayer later on, 8:00 a.m. u.k. time. these retro global equities at m&g is still with us on set. there are suggestions bayer could be weaker by a couple of percent. what you make of this? this is an absolute giant in the agricultural chemicals business. was this the right call to put these businesses together? >> everyone else is doing the same thing. you look at dow, dupont did the same thing. they did not want to be the only one not doing anything. bought the best business out there, which was monsanto. , rounduptely for them

has been around 40 years. it has been challenged in every market. ,ot a single scientific study and 800 of them have been performed, says there is any harm. courtn franciscan 's cancera gentleman was caused by it. there is no scientific evidence to back that up. a trial by jury, the jury decided and the judge did not agree with them. i suspect bayer has a good case. anna: there could be legal headlines. the laws around agriculture and what you can do with seeds and how much you can modify them are very different on both sides of the atlantic area is that something that is going to mean bayer doesn't deliver what it could do? or is that not something markets focus on?

>> i do not think the market is focused on that. a european company buys a u.s. company, so all of a sudden the european agency says, hey, plant this in france and germany. ast bayer has realized is capacity of land decreases, changes in whether, it is becoming more and more important. monsanto has the best technology. anna: i have been talking to a swiss executive. europe is doing its own thing, but the rest of the world is doing something different. are you interested in bayer at the moment? where in europe are you putting money? >> bayer is very interesting. the market cap for bayer is nearly what they paid for monsanto. the litigation has really taken a hit. it is fundamentally a very solid business. probably the low end of the agricultural cycle. prices are likely to rise from

here. as long as they can get through managementng as the team is focused, you will see synergies coming out of the business. they are not even touching the dividend. i am confident they will grow going forward despite issues with providing opportunity today. anna: where else do you see being not vulnerable to the trade tensions if they are going to be around a little while? >> you have the volkswagen ceo later. obviously volkswagen's in the eye of the storm when it comes to trade issues. the issue a lot of people have is not just trade. it is this moving to electric vehicles, whether existing auto companies are ready. you see tesla now saying they are going to build their all hybrid fleet next year. you see volkswagen having the biggest pipeline of electric vehicles coming to the market. that gets overlooked because everyone is so focused on tesla. , veryany likes volkswagen

low debt, gives you a very strong dividend yield. should be something people are looking at in this market. anna: very good timing to get you on this morning when we got that news after bayer. director of global equities that m&g. now what has been going on in italy. let's give you a wrapup of the headlines. italian newspapers doing interviews with the deputy prime minister. he seems to be doing the rounds, what is going on with the btp market. some of these headlines we have had coming through, we have salvini saying he is working on a three-year timeframe. one of the things you take away from this is he is pushing these further into the future. he is suggesting they are there. the budget deficit stays around 2%. all of this seems to be coming from salvini.

that will do it for "bloomberg daybreak: europe." "the european open." is next. ♪

guy: welcome, you are watching "bloomberg markets." this is "the european open." i'm guy johnson back along matt miller in berlin. a reale are looking at slide in asian markets, especially china and hong kong getting hit hard on continued emerging markets concerns. the cash trade is less than 30 minutes away. guy: the