and european union. possible for the commission to decide we have had [indiscernible] it was the case and ireland. we have known that for many years. contradiction. now it is the decision of the european commission to ask for apple to pay. vonnie: the same thing happened to belgium in january. you had to recover taxes on 35 companies. this will be a problem going forward for many european countries. but we are working with all of the companies in the european union. it is the real competence of the european union to manage fair competition. not only fair competition among the companies but among the states. with not the first case apple. it is the decision of the commission to stay if it is possible to have a fair game among the different multinationals from everywhere. now is a chance to apply the decision by the european commission and ireland. all for justice. belgium haveight, prime minister, thank you. mark: we have much more ahead on the eu decision on apple. for the response, ireland's finance min

the european close next. this is bloomberg. ♪ mark: you are watching the european close.m mark barton with vonnie quinn. five minutes away from the end of the tooth a session. rebound from yesterday's losses. more gains in london because of declining mining shares falling as the dollar rises. have a quick peek at the currency board. the euro is down for the seventh day in eight days against the dollar. that is giving a boost to exporters. that is why euro area stocks are gaining. this is bloomberg. ♪ . life from london and new york, you are watching the european close. them all buting two industry groups are rising. a bit of a turnaround from yesterday. resourcesgoods, basic declining today. let's get to why. to overweightaded from equal weight. barclays has built a strategic originalfrom product perspective the last decade. it says it is well considered. they pride -- press target is up 21%. up 44 euros today. 89% have a buy. 7% have a hold. creditout noon in --noon credit? it -- according. we have shares of many credit up by 2.1% today. a big piece of u.k. economic data

the founding fathers of the european union have dreamt about federal at a certain point, the european was developing and was able to project stability and reassurance without going for further integration. because the environment around was stable and was not challenging. no one was challenging us from the outside. or if it was, it was bearable or manageable. well, now, the challenges are too much, and the european union has two choices. either to follow the british example or to start talking about more integration and more -- this is my personal opinion, i have to say. here i have to launch a disclaimer. this is a very personal view. but it is shared by a lot of my colleagues. we have a chance right now to really start talking and working on more integration. this middle or -- how to put it even, undecided position what we are as a union is hurting us all the time. and does not allow us to respond to challenges as quick and as decisive as we wanted. around the migration crisis, it took months and i don't know how many councils in order to reach a decision, which was tangible and acc

should leave the european union. there is so much that we bring to the european union.u voted to leave. the country did vote to leave. chuka: the country did vote to leave, so we need to find the best brexit package. that not only helps our economy to thrive in the future, which is why we want the closest trading relationship with the european union, but one that means we continue to be outward and open looking to the world and we don't close ourselves off which would be bad for british industry and jobs. but there's no getting away from it. in this referendum, immigration predominated. we have got to find a way of addressing the immigration issue in a way in the labour party that remains true to our values. i don't sit in that place that says immigration hasn't posed any challenges. i don't agree with that. there are also issues of national identity. on the other hand, to completely cut ourselves off from the rest of the world would be a hugely retrograde step. and to blame everything wrong in our country on eu citizens is totally unfair. we have to find a progressive

now to the state of european banks.tending losses today trading your lows as an investors react to the stress test results. most banks have capital to a senate financial crisis put up so why are investors punishing them? joining us now with more's michael moore who covers european banks for us. there was no pass or fail, so why are investors punishing the banks today? michael: it is a fair question. part of it may be a lack of believing in the scenarios of the stress test. the think something if you had a sovereign twofold or some of these other crises that perhaps it would look different than the exact scenario that they put the banks through. that capital for many of these is not the problem. , itproblem is profitability is the boe rate cut, all of these headwinds that are weighing on the banks and their earnings. 7.5%, how important is that to that particular percentage? it has to do with paying dividends come why are investors focused on that? michael: there is a number of benchmarks you could use, 4.5 is the legal

that is it, for the european close.s is bloomberg. ♪ to "bloomberg markets ." ♪ scarlet: from bloomberg world headquarters in new york, i'm scarlet fu. erik: i'm erik schatzker. here's what we are watching. stocks open lower but they have hold back. the s&p 500 little changed on the week. as donald trump arrives to tour flood damage in louisiana, there are more changes in his campaign. losses are increasing and so are withdrawals. is it time for hedge funds to take more risk? scarlet: we are halfway through the u.s. trading day.

pan european does not exist. the vast majority of the european peoples, for them, being european remains a geographical, not a political distinction. people'sbecause identities are not formed, at least in europe, but attachments to abstract principles of liberty, equality, fraternity and such. but by cultural religious historicle and linguistic ties. in conclusion, the reactions of the european states to the outcome of the british referendum on eu membership, clearly shows that the national interests and consequently, the nationstate, remain the basic motivations and basic living blocks of international relations and of european relations and likely to remain so. thank you very much. [applause] >> >> thank you, for these fascinating perspectives. i don't want to take a lot of time this afternoon because i am really care to learn. congress has been in session only very briefly since brexit took place. they're coming back to work in two weeks. run for your lives. [laughter] be a reals will opportunity for us to exp

the european close is minutes away.is bloomberg. ♪ nejra: live from london and new york you're watching the european close. i'm nejra cehic with vonnie quinn. just finishing up the day in european trading. starting with gmm on the bloomberg to give you the big picture. germany's dax down almost 1.3%. italy has been one of the worst performers globally in equity markets today. seeing a weaker sterling despite the better than expected jobless claims data we have had today. the euro pretty much unchanged against the dollar. a bit of red across the board. if we look at the stoxx 600 we are down .8%. commodity producers have been largely leading the losses. we are on the fourth day without gains for the stoxx 600 which is the longest streak of that kind since june. investors perhaps reassessing the rally that pushed the ftse 100 into overbought territory european investors no doubt reacting to some of those hawkish comments from the fed. highlight some of them today. let's start with the downside. we are seeing carlsberg dow

will somehow the inside the european union.and it is for those in the european union and now i think that they see that london has more of the effort and also with the policy in particular to every single european country multiplies. if you need to negotiate through china aster have that operation and work with the countries of africa and that is dead as a single country you have much less instruments then if you pull to get -- pull together that is what you hear so much from london to said they want to keep the strongest possible corporation going into the future because they see that as well that together it is quite simple the bigger you are you are more powerful so this is also the exercise of a global strategy as europeans to come not of that choice that our people will join together to have more powerful instruments to serve our citizens' interests better but in that word of today if you make decisions together the fed is coming from the outside but then you have additional instruments that are much more powerful so i thi

gainingsee the european . the volatility index at 12.88.et's get straight to bloomberg first word news with sebastian selleck. sebastian: the brazilian president has testified. she spoke about her torture and imprisonment during israel's military dictatorship -- during brazil's military dictatorship. if twol be removed thirds of congress finds her guilty. apple is said to be facing a tax bill running into the billions of euros with an eu ruling as early as today. the european commission is expected to say ireland provide them with illegal aid. apple said it has nothing to add to previous statements rejecting previous statements. european competition commission is scheduled to hold a news conference at 11:00 u.k. time. will bring you that here on bloomberg. german foreign policy , the u.k. will have to pay into the eu's budget. the missing britons aspects for low-cost emissions after the exit from eu. >> if someone once benefit from the european union, they also have to conjugate to the coffers -- have to contribute to the coffers. [indiscer

and european authorities. this idea that potentially europe, the european commission which is centered in brussels, going after u.s. multinationals, especially technology companies pretty hard when it comes to anti-trust rules. alphabet, amends, some of these tech companies because you want european tech companies to compete more. denies the political implications, but this is a big issue between the two. >> of course the same time the white house would love the companies not to have headquarters where they're keeping a lot of earnings. either way, the actually ruling comes out at 6:00 a.m. eastern time and know what the find is. thought to be in and around a billion. the biggest so far to date has be 1.2 billion. it's not going to break the bank for apple. this is much more significant that's going to move the share price in the short-term for apple. i do think it's significant if terms of symbolism and not only for apple, but also for ireland. this is embarrassing for them. >> they've been courting this comp

the european union can go from here.o put pressure on .heresa may for the u.k. to leave the eu. ,ut they also want to work out where does the eu go from here? massive project and it is as unpopular as it has ever been. how can they turn it around and start to say the eu is a force for good and there is still something we can do to benefit the people? >> some of the most difficult discussions were central around the economy, budget conditions. >> that is right and we can all turkey -- talk about the refugee crisis and even brexit as being the acute problems. slow growth, and massive unemployment for nearly a decade now. nobody really needs to know how to turn that around. we have seen here and there some employmento create and investment. there is nothing really being turnaround. > th>k you so much. here. we market closed 25 minutes ago. have a look at how those ended today. that was a short-lived rally. look at currencies and bonds. sterling stronger today. 10 year german bond yields down. yields are heading lower as wel

the treaty being an important founding act for the european community.hat is when they want to present their strategy, how to win back the hearts and minds of people in europe and tell them what they actually want to do. the role of chancellor merkel is pivotal. this journey is still by far the most powerful economy in the european union's the most important country in that regard. she has lost an ally that was always more or less on the side of germany. now you have francois hollande more to the left. there will be some kind of fight behind closed doors how to approach the economic problems but chancellor merkel does not want this fight to break out openly. she will have to broker a deal she will also have to sell it home because people in germany are still of the opinion that countries like italy and france should get their economic house in order by themselves without help from brussels and germany. terry: thank you so much for now. next hoffman in italy. one of the issues discussed at that summit was the refugee crisis. a year ago, chancellor merkel

that we have made collaboratively with the europeans. to make the international taxation system fair. >> it's not clear what if anything washington can do to counterer that eu order, but it does add a new dimension to the tax reform debate involving the treatment of some $2 trillion in corporate profits cu to avoid u.s. taxes. .or >> let's turn now to lillian to discuss what today'se european mean for other big u.s. multinn in europe. at georgetown ernational law universi law center. says part of its response and we quoted it earlier, it will have a profound and harmful effect on investment and job creation in europe. do you agree with that? >> i think it will change how companies make their decisions about how to invest in europe and how to structure their entities in europe. it's not clear what the actual effect will be, but i think it will change their calculus and i thino longer rely on tax rulings to the extent they could before. >> tim cook has an interest d ote. ourselves the unusual position of being ordered to retroactively pay

it is in for the european close.ose over in europe with the stse >> it is noon in new york, 5:00 in london, midnight in hong kong. welcome to bloomberg markets. ♪ alix: from bloomberg world headquarters, good afternoon. we are covering stories from san francisco to beijing. here's what we are watching. highsude rising to it day . it entered a bear market, struggling for direction has volatility. scarlet: tesla has missed on vehicle deliveries. now they need sources to take over. we will look at the cash burn angie:. lower commodity prices are eroding at the second-biggest mining company. we are talking about rio tinto. from the ceosghts interview.

this is the european close.biggest stories in the news right now is. the hong kong bitcoin exchange that lost $71 million to hackers is starting to come back online. they told users they will lose 36% of their deposits in the virtual currency. last week, the exchange closed trading, withdraws, and deposits after it discovered the hacking. discount retailer steinhoff is expanding into the u.s. they have agreed to buy a mattress holdings of houston for about $2 billion. the acquisition would create the ding seller.est bed u.s. regulators have find deutsche bank $12.5 million for equipment.e of its they say it broadcasted confidential information through their internal speaker network. that is the bloomberg business flash. politics, where donald trump is hoping to get back on message. in a few minutes, he will unveil his economic policies at the detroit economic club. he is expected to promote a ban on regulations and repeal the estate tax. jennifer jacobs covers all things donald trump for bloomberg and joins us f

it's a little different for european banks versus the broader european economy.to japan, at least europe has taken one step that japan has not and that is providing negative yield funding to the banks to offset some of the pressures of negative interest rates. sadly, it's the economy that has to pull you out of negative -- out of negative interest rates. david: you also need bank earnings to get the economy going. it's one thing to say you are solvent but another thing to say you're actively involved in lending. to the bankorward of england tomorrow, to what effectdoes this have an on the banks and their participation in growth in the economy to get the economy going? >> our best guess is they will cut rates from 50 basis points to 25 and everybody agrees on that. the next question is if they resuscitate quantitative easing. they will buthat clearly, they need to do more to ensure the banks and prevent rather than react in terms of thatng out the banks probably will be hurt by the aftershocks of brexit. jonathan: how come monetary dictates that people cannot say.

certaine do like european financial stocks. the big insurance companies on , we thinkield story there is much more resilience to the dividend streams for insurance companies. they are not only able to sustain those dividends, they can grow them. with markets recovering back to all-time highs, that is positive for funds under management. there are better opportunities ok, ier areas which are just of have the confidence in to bonds or the earnings take on that trade. >> can i bring you back to u.k. homebuilders. we got reported today that said it rose sharply, showing that resilience to brexit. homebuilders were particularly hard hit. what is your outlook over the next year as these negotiations look like they could drag on? persimmon isk different. it's not exposed to the housing market where you get flight -- price deflation. the average selling price is 220,000, which is lower than the u.k. median. the housing sector is a micro call. dealing with fixed mortgages at an all-time low. there isn't the same liquidity crunch that we

european stocks coming off that seven-week-yesterday.ur next guest says there are some signs of stress in the markets. you can see what is happening across the markets. the stoxx 600 down 2/10 of a percent. the dax down to tens of a percent after entering a bull market yesterday. our next guest says it could be a warning sign about risk. joining us now is john rowe. it has nearly a trillion dollars under management. great to have you in the studio. i want to bring up this chart that you actually highlighted -- the u.s. libor ois spread. effectively, it is at its highest in over four years. what does this tell us? john: we look at a number of these indicators to try to give us different reads on to whether risk is rising. people are focusing on the vix for example, but the libor ois has been a pretty good for addictive because it gives you an idea of where funding costs for u.s. banks is starting to rise. it has been driven by changes in regulation. they encourage money markets to buy government rather than bank or financial assets. in do

european close on bloomberg television.ime for the bloomberg business flash, a look at the biggest stories in the news right now. private equity firm tpg has agreed to buy broadband services .rovider rcn tpg will pay $2.3 billion. rcn offers cable, phone, and internet services on the east coast and chicago. grande is in texas. technologies has agreed to buy sensus. provides smart meters and network technologies for the water, electric, and gas technologies. british millennials are already suffering from economic weakness , mistakes of the past. now they may have to pay more for the country's future. pension fund the liabilities in the u.k. hit a record 1.3 chilean dollars after the bank of england cut rates this month. it could get worse as economies expect economies to cut rates again this year. one solution, millennials have to save more or work longer. that is the latest bloomberg business flash. outie: home depot stands among retailers as americans continue to spend on their homes rather than clothing. store salesteam h

no matter if they are european or foreign, large or small, part of group or not. reporter: money that apple makes across the eu and beyond gets funneled to ireland, which already has a low tax rate of 12 15%. that is on profits made in ireland. international profits are not taxed at all, bringing apple's overall rate to zero. . the commission ruled it needs to pay back taxes on international profit. you might think any country would welcome such a massive windfall, but you would be wrong. apple has a long history in ireland. steve jobs brought the company here in the early 1980's and it now employs nearly 6000 people. it is an important corporate citizen and the irish government rejects that it should be the text please. >> if the company was not paying appropriate taxes in the european union are internationally, it is not for ireland because the company operates in the country to be the tax master for the entire world. our responsibility is to collect the tax owed to us and we do that in a transparent and consistent way fully in accordance with laws of the countr

before europeans even arrive in the great lakes, european trade routes preceded them. they stretch from the west coast through the center of the nation, the southwest, the north are exchanging trade goods. european trade goods become incorporated in that existing network. host: how did the native american transcribes in the area respond to the arrival of the french? professor sleeper-smith: very welcoming. most french traders began to come in the 1660's after radisson comes into the great lakes. basically most of the traders are french. they come from montrÉal and quÉbec. they bring goods with tremendous high state us value and also have tremendous utilitarian value. initially, most of the trade is in iron goods, trade that are pots, vessels that women would primarily use, digging sticks that make cultivation of grain crops much easier. as many of those goods become saturated in the great lakes, what was initially the fur trade turns into what becomes a cloth trade. and so most of the products that would come into the great lakes from the end of the 17th century to the

also the european union.l good and fine because it makes global taxation much fair in the future and taxation of such much more transparent. specific.ere is we have a long tradition of member states handing out benefits or advantages to specific companies. this is more than a case of taxation. the benefit can come in all forms. it can come of -- in the form of a taxp piece of land or benefit. that is the case here much more than the case of interfering in the very could work done in the g-20. >> are there any other companies tax have such favorable regimes, policies, treatments in ireland? we have more open tax cases but they have not been in ireland. , andve in luxembourg earlier on, we decided on a scheme in belgium with a number of european multinationals. just as well, it was decided on fiat and starbucks. those were not irish cases. it is the same thing we are looking at, as if companies get selected advantages not open for other companies. >> how is this really going to damage u.s.-european relations? >

nejra: this is the european close on bloomberg markets.for the bloomberg business flash, a look at some of the biggest business stories in the news. british bookmaker william hill has rejected a takeover bid. william hill says the offer undervalued the company. the deal would've included and all share merger of aaa's and rank. british regulators want to cap seas -- the competition and markets authority is recommending a limit on overdraft charges and a grace. -- a grace period for customers to avoid them. that's the latest bloomberg business flash. vonnie: formula one racing has proven to be a lucrative investment. a private equity firm acquired a majority stake in the racing. a decade later, it has made the from about $4.5 billion. they're looking to exit the investment and goldman sachs is on board. the price tag could reach $10 billion. for more on this story, we are joined by private equity reporter kyle porter. we don't have a $10 billion check on the table, but it looks like that is what it is valued at. kyle: that is certainly the i

pan-european demos does not exist. the vast majority of the european peoples for them being european remains a geographicle, not a political, distinction. that is, because people's identities are not formed at least in europe by attachments to abtract principles of liberty, equality, fraternity, and such, but by cultural religious historicle and linguistic ties. in conclusion, the reactions of the european states to the outcome of the british referendum on e.u. membership clearly shows that the national interests and consequently the nation state remains the basic motivationd and basic building blocks of international relations and of european relations and likely to remain so. thank you very much. ms. coates: >> thank you for fascinating perspectives. i don't want to take a lot of time this january because i'm really here to learn. congress has been in session only briefly since brexit took place. they're coming back to work in two weeks. run for your lives. so this will be a real opportunity for us to explore some id

speaker, we voted to remain because we are a european nation.t really matters to us that we live in an outward looking country, not a diminished britain. in scotland, we are being told from westminster that despite the majority against leave, we are going to have to do what we are told. we are going to be taken out of europe against our will. >> the voters of the united kingdom have demonstrated the value of that great principle, the principle of democracy for which people fought and died. i can accept defeat but i will , not give up. i have not changed my beliefs. >> leaving aside the constitutional turmoil, the damage to the economy and the , uncertainty that hangs over britain's place in the world, the leaders of the brexit campaign have engendered an atmosphere where some people believe it is open season for racism. could i ask him also to say today and to condemn very clearly those people who are decentimplying that people all over this country that voted to leave the european union are somehow closet racists. >> will the prime minister agr

coming up in the european close, take a look at what is happening with european stocks. is getting a boost after u.k. sales figures beat expectations. brent hovering near a bull market. 35 minutes away from the european close. stoxx 600 up .7%, gaining for the first time in five days. let's bring the stoxx 600 back along with the ftse, dax. you can see all the indices up there. switching it up to look at some of the specific movers. we were talking about nestle. you can see the share price. perhaps we cannot. it had been up today. vestas up today after it raised its guidance and raised its allocation, saying second-quarter shipments and revenue beat forecast. has risen the most since july 2014 after reporting and improved capital position. good movement on the broad averages here. and s&p up about three points. more movement in treasuries. the vix is down below 12 again. still ahead, t-mobile is announcing a plan to lure more data consumers. we will be speaking to the t-mobile ceo john legere. this is bloomberg. ♪ >> is 11:00 a.m. in new york and 4:00 p.m. in london. i a

the vast majority of the european people, for them being european remains a geographical, not politicalinction. that is because people's identities are not formed, at least in europe by attachments to abstract principles of liberty, equality, fraternity and such but bicultural religious and historical ties. in conclusion, the reactions of the european states the outcome clearly shows that the national interest and consequently the nationstate remain the basic motivation and basic building block of international relations and european relations and likely to remain so. thank you very much. [applause] >> thank you for these fascinating perspectives. i don't want to take a lot of time this afternoon because i'm really here to learn. congress has been in session only very briefly since brexit took place. they are coming back to work in two weeks, run for your lives. [laughter] so this will be a real opportunity. we can explore some ideas as both a historian and a practitioner of democracy, i am am acutely conscious, particularly in recent months of the challenges the democracy presents but

fairly undercut european steelmakers. truce between one of the world's largest rick and read -- brick-and-mortar retailers and its chief online rival. to bring them back to stores. target quit selling the devices four years ago. the chant thinks -- the chain thinks amazon products could give its electronics business of used. -- a boost. berkshire hathaway over one of its biggest holdings. , whether berkshires investment violates the rules for how much credit banks can extend to corporate insiders. it has to do with wells fargo citing financing -- providing financing to berkshire posts subsidiaries. markets lingering uncertainty. has not been easy being a bank chief executive. the transatlantic bank battle. who is rising to the top? brian moynihan, chief executive of bank of america weighed in earlier in this exclusive interview on bloomberg go. brian: europe is much more difficult to manage. in the u.s. it was tough because of the size of the economy. you had multiple regulators. we do not have multiple jurisdictions and

to four european stocks gaining a touch.et's get straight to bloomberg first word news with nejra cehic . nejra: data on chinese manufacturing in july has left analysts scratching their head. both gauges little significant this year in china's important manufacturing sector. .ber will emerge with didi that is according to people familiar. they say the new company will be valued at $35 billion. business loans and u.k. are set to shrink to the lowest in more than a decade since weaker economic prospects are following the brexit -- total will -- thet -- and a number markets have recovered from the shock of brexit. in managing director said strange and said the eu and the backlash toward trade in global position may threaten growth. he told bloomberg that he is pessimistic about a turnaround and trade. grexit traders turned into -- with the problems looking forward implied by brexit and the need for the u.k. to negotiate trade deals, the opposition of the u.s. from both , the likelyndidates delay in the agreement between the u.s

there counting down to close of european trading.is bloomberg. ♪ ♪ it is time for the bloomberg business flash, looking at the biggest stories in the news. u.s. investors are examining warren buffett's show earnings. this is familiar with the review. the issue, whether burke traded investment violated the rules for how much credit banks can extend to corporate insiders. it has to do with welfare financing. none of those involved are commenting. toyota has the fiscal forecast. that in kim -- net income is strong as earnings from overseas. sale in the u.s. has posted earnings. that is the business flash. mark: we are five minutes away from the end of the equities trading session. let's see what is happening with thisean markets on historic day. rates are down to a record low here in the u.k., 25 basis points is where they are. they were 18 earlier. the biggest increase since the end of june for the a ftse 100. look at the ftse 200, a massive index. and theares rising stoxx 600 is gaining. we have got declines for the pound, full detail

european banks need european growth and european growth needs strong banks.ina: i think at the end, rate environment can increase the attitude of corporate clients to invest. so, investing, they can create energy for growth in different countries because you have demand coming from customers. so, companies are no look at rate cant and zero increase investment. if you have the right business model, you can have the possibility to create value also in these environments. tom: if there is a right business model, where do you envision being in five years? obviously, there has got to be henrybanks, but as koffman says, if banking is the new utility business, where is your bank in five years? a goodsina: that is question. i think that from a strategic point of view, this is the question that ceo's have to consider. and the answer for intesa sanpaolo is we want to be one of the best wealth management companies outside of italy. and i think we have the potential to tap this target. i do not see any significant value in being a significant corporate investment banking

mark: let's have a check where european equities are faring.ovements,bal macro look at the stock's column. we are down in europe for the first consecutive day. decline for the stoxx 600 biggest drop for two weeks. one of the reasons why the euro at the highest level since june 23 that is impacting exporters. the copper miner owned by chile's wealthiest family. -- announced an interim dividend of 3.1 cents per share and the chief executive should -- sees a strong second half and copper price increasing more likely. the rise today 2.9%, the biggest since february. 4.5%, of schindler down 142-year-old swiss company that makes elevators and this -- they are the global elevator market and they say it will show a slight the klein this year primarily -- decline. moderate growth in other markets like asia-pacific and europe and solid market growth in north america with first half net profit revenue rose and shares are down today. it was not all about the u.k. inflation data. we had confidence data out of germany today, investor confidence recovering in

stocks finishing the day in european trading. take you through all of the market action today. gmm on the bloomberg, we can get the big picture on this function. a lot of indices in the green on the left. austria is up 8/10 of a percent. sweden up 8/10 of a percent. euro stronger today. also stronger pound. we see sterling rally today after an unexpected jump in retail sales in the months after runs it. i want to show you the stoxx 600. i brexit.months after runs i want to show you the stoxx 600. certainly, we have seen the stoxx 600 rebounding from a two-week low. generally on confidence i guess that policies will continue to support the economy. if we take a look at individual movers we have been giving an eye on, i want to start with withi stock on the 600 -- the stock on the 600. the second quarter shipments and revenue beat forecasts. the second-biggest dutch insurer up. it has risen the most in two years after reporting an improved capital position. that is how individual stocks are shaping up. i want to show you the ftse 1

could this become a reality in european banking?nk what has happened this week is that an important taboo has been broken. that individual banks can pass on costs like this to their customers. if growth does not pick up and lending does not pick up, more and more may have to go down this road. so far, policy makers say that there has not been any negative side effects, but could we see more customers withdrawing cash and stashing it at what point do they -- jeff: i what point do they convert their bank balance is into money. we still think it is a big psychological cost to have to sit on a load of cash. as time goes on, we make it closer and closer to that. this is a small bank. are they applying this to all customers are just a segment of clients? jeff: no, just to give you background, this is a tiny little savings bank in a village at the foot of the bavarian out a --lp -- alsps. they are applying it to people in only have 100,000 euros savings, but an important psychological barrier has been crossed. it have impact on the ecb's n

reporter: but the european commission decision has been controversial. authorities are contesting the claims that apple is getting special treatment, accusing eu officials of overstepping their power in their investigation of u.s. companies. >> our concern is that it's using a state aid eerie to make tax law. it's doing it in a way that is retrtroactive andnd overridides nationonal tax l law authority n our view. we think it undermines the environment for international business because it creates uncertainty that will not be good for the european economy. reporter: but eu competition officials are sticking to their guns, confident an appeal will be upheld, saying it's a matter for the ball. not even apple can be left to its own devices. brent: thank you very much. after a short break, i will be back to take you through the day. but first, we're going to share some pictures from the under 12 football world challenge in tokyo where, as the game ended, the barcelona youth team started celebrating their victory until they saw the reaction of their beaten jap

and that is why we've worked with the european council and with the european parliament inu order to change legislation, to make transparency greater, to have country-by-country reporting, for tax authorities actually to know what other tax authorities are doing, but it is for the legislature to change that. what i do is what we have a long-standing tradition of doing and ado long-standing court practice of doing which is to control state aid seen as specific advantages to specific companies. >> sreenivasan: doesn't thisis draw into conflict the role of the european union or the commission versus countries andu their sovereignty and how they're able to lay out their tax laws? >> well, the sovereignty of the member s.a.t. is protected -- of the member state is protected by our treaty and i, of course,co with respect that 100%. 1 i have sworn to respect the treaty. two things have to be in place at the same time, both upholding national legislation as tax legislation and, at the same time, the european legislation that we have made in common that the e.u. state aid rules. and here we h

-- in european elections? guest: yes, absolutely. we have definitely seen what appears to be credible evidence that the russians, through front companies, have channeled money to individual politicians and to political parties. they have also created what appear to be credible media outlets, so someone comes to you with a microphone and says they're from such and such news service, but an actual fact, that news service exists solely for the purpose of an operation to get someone to say something or to provoke something, or even for a kind of sting, an entrapment operation against a mainstream politician. , all which of may or may not be designed to get individuals elected in european politics, but there's no question that the russian goal is to promote the far right and the far left in europe. by the way, we've seen huge benefits from that, right? brexit, definitely benefits russia's indication that the european union is kind of a sham, that it's defunct, doesn't have a future. and then the dutch referendum se

obviously as you point out european markets have lagged. outside investors from outside europe would say there's a reason for that. you look at brexit, potential spillover effects we see. i know you kind of poo poohed them to an extent. they are there. for foreign investors they have been heading to the exit. >> one of the things that held back european equities this year. international investors have probably quite right said more political risk to wit stand and i'll stay in my own market. the only specter in europe, let's face it harks been fairly dull for five or six years. within that there's been a rolling bear market. initially bear market in earnings for banks. recently earnings for energy and material stocks. other sectors where earnings have been improving pretty sedley throughout the entire period. >> one of the elements as well as buybacks, we don't have same structural setup. lou at debt markets, debt-for-equity swap should be happening in europe. do you think that's one of the reinforcing elements we can point to here, too, goi

less than half an hour away from the european open. it's a holiday in some parts of the united kingdom. london out today, scotland not enjoying the holiday, the rest of the united kingdom is. light volumes in certain markets. let's show you what's going on on my bloomberg this morning. i will start not with my gmm function, which looks quite interesting. let me take it to the wpi. this morning and let's not unlike what we saw in tokyo, a negative open for european indices. cac is called down, dax is called down. a softer start for europe. but let's go back to the gmm and show you what's happening out in asia. i direct you to this top corner. the nikkei is up by 2.3%. why is the nikkei rising? it's fairly straightforward. word from yellen that rates may be going up; word from corroded that there may be more action from the boj. the yen is down against the u.s. dollar. these two are closely correlated, and equity markets are popping. it's the exporters, the car companies that are doing well over in tokyo. that is the story that is really

atra: let's take a look where european markets are trading because we are five minutes from the european close. look at european stocks. stoxx 600 up 6/10 of a percent. it is on its way to erasing its post brexit losses. the ftse 100 up for tenths of a percent. posting losses earlier, the dax up 6/10 of a percent still in bull market territory. it hasn't rallied too fast. oil very much in focus today. look, we've got wti up 3.6%, it was below 42 earlier today. bring up some russian assets because, of course, russia's economy shrank the least. that is putting it on the cusp of exiting the longest recession in two decades. wrubel gaining today up 3/10 of a percent as well. the european close is minutes away and this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your

vonnie: european and u.s. equity struggling to hold on to recent gains, although we have seen records in the u.s.. joining us now is the portfolio manager at frank when mutual advisers, where she oversees $2.6 billion in assets, .ncluding the european fund it is great to have you in to talk about undervalues and european companies, but how do you find the values and european companies when every thing is distorted from bond markets potentially now? katrina: there's a real dichotomy that exist in this market and it is very prevalent in europe where you have very cheap sectors of the market and you have some very expensive sectors of the market. consumer staples and health care are trading in multiples, but you have financial stocks and other areas trading cheaply. vonnie: if you did into my bloomberg, you brought up valuations and dividend yields. if you see this, you can get the dividend yields and it's around 3.8%. if you change the measure and have a look at price-to-earnings, you're looking at something lik

they were citizens of the european country from which they came. he would resell them and repurpose them. he had access to everything. it was really remarkable. we interviewed him on two occasions. that prevents -- resents -- presents a terrible problem. can you give us a look at the important program that brings women and men back in cross borders. at the same time, it thousands of individuals who come from europe on european passports to fight and can return and then travel to the united states. general taylor: that's for me. let's start with the fact that the visa waiver program is not a waiver of a visa program. it is a security program that individuals have to apply for and have to provide certain data that is screened against our holdings with regards to central threats that they present. one of the most important parts of that is their identity, who they actually are. that's a part of that validation occurs. there's concern certainly for anyone coming out of syria with a fake passport. we believe that the strength of the visa waiver program

european equities gain 0.3%.ou can see unemployment -- we will have to look at the participation rate. the unemployment rate is better than expected. let's get to bloomberg first word news. >> u.k. prime minister marks the end of summer. may and david davis have chosen to not flesh out in public details of the breakout from eu. investors and executives -- to define what she means when theresa may says brexit means brexit. donald trump goes to mexico today for a private meeting with the president. meanwhile trump is also due to deliver a speech today in phoenix. he is expected to lay house -- layout his proposal on immigration. nine people are believed to have died at a nursing home in japan after a typhoon rocked flooding in the area. nhk says another woman was found dead in the region while three was missing. landfall, passed over the northern mark over the main island yesterday. global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. i am sebastian selleck. back to you.

and, according to european union there is no real activity.nd then to top it all off, we all knew that apple paid very little tax, christine, in ireland, because that's what makes ireland so attractive. but in fact, they're page even less tax than we thought. in 2013, they paid only 1% tax in 2014, get this, they paid 0.005% tax in ireland. and now we're hearing from apple. we've also heard from ireland. ireland said they will appeal. apple said they will appeal. what i'm hearing this can a have been a procedure longed legal battle. and ireland's already saying we do not want to use big u.s. business from ireland. and we also don't want the hefty legal bill, as you can imagine, christine. >> ireland and eu on opposite sides of this. the eu wants that money back. ireland saying wait a minute, we don't want to appear -- the u.s. treasury saying the eu should not do this because it could hurt u.s. taxpayers in the end. i have to say $231 billion in cash. that's how much apple has. super high margins on a lot of its products. you look at a tax rat

i think they will be a part of european savers going forward. given what you are saying about your model, you are still committed to the u.k. business? mike: we are. it is tremendous growth. we are moving to a capital light model. the pensions reform, consumers in the u.k. are now responsible for their own retirement savings. sales are up very dramatically. the products we've built are all working well. sales for the u.k. business now exceed a historic high level. our combined businesses in the u.k. compete with anyone on any front. francine: are you happy with your solvency? the surplus is 9.1 billion pounds? mike: it is a good, strong number. we've said all along, solvency to is not a good fit for our group. what you see on dividend, what you see on local capital basis, those are more important. the u.s. regime for the u.s., the asian regimes for the asians. francine: i want to come back to brexit. has client behavior changed at all ends the brexit vote? mike: there is a slight, where you see the most is profits on the u.k. life company. i thi