we are joined by the allianz global to have you here, chris, to join us on this of the year? >> our expectas a lot more volatility. we expect the vix to pick up, and measured by volatility and events. >> it will tick up occasionally, but are you looking for the volatile area or higher? >> well, we expect it to get high and this year, because so s go ing on this fall. the fall? the economic data point? the election? the global ea combination of all? >>> it is a potpourri of all of those. our expectation is that the n whether to raise rates could have a significant impact if it is not expected as could the presidential election, fit is not expected. the outcome. >> and now, there's a lot of rumors in the market that the fed obviously is data-dependent, but g in septem instead of december. would you expect to have a september rate hike or not? >> well, we think that a december rate hike is more likely, and the rational is that we believe that the fed is looking for compelling evidence. if they don't get the comepling da , they are more likely to sit nt for sure, but it is an urb

anna: lucy, thank you very much, chief investor of global markets of allianz stays with us. to raise rates. the fed governor keeps her dovish tone and urges patience. she is talking about patience. we will put her comments into the context of some of the more hawkish comments we heard previously from that officials. she is the last fed official we will hear before last week's meeting. we will hear more from that next. this is bloomberg. ♪ >> the fed governor strikes a dovish tone in the last speech by a fed official before next week's policy decision. the chance of a september rate hike slide. next to the extent that the effect on inflation of further gradual tightening labor market conditions is likely to be moderate and gradual, the case to tighten policy preemptively is less compelling. >> more signs of stability. july's weakness won't just was not just a hiccup. an exclusive interview, the most powerful woman in french policy joins brexit and the possibility of frexit. ♪ >> welcome to countdown. i am anna edwards. as you were on the inflation story around europe. that is

he is the chief risk officer at allianz. negative rates are bound.ere we are with the ecb perhaps considering going lower. just how much of a challenge is it for you is a risk officer in this negative rate world? you.s: manus, thank in terms of the insurance industry, there are challenges, all financial services are challenge -- are challenge to the low investment returns. there are some bright spots for those in the sector that have strong franchises. example, property and casualty. -- offset some of the challenges of a lower investment return on the investment portfolio. caroline: how has it changed your business model? blocking in channeling, but give us a sense on new ways you have to do business in ways you have to manage risk. thomas: what you are pointing to andhe fact that the life health sector in particular is challenged. in the past, it was possible with a 4% government bond rate, a higher than that expected to turn in general on the investment portfolio was possible to operate a 2% guarantee. it covered expenses, profit margins and offere

other firms bidding are acsan, and allianz, along with aberdeen asset management. unicredit is looking to raise up to $3 billion from the sale of pioneer and wants to finalize a deal by november. >>> inditex is up by 8% off of last year. strong sales benefitting from a strategic focus on its flagship stores and online channels. inditex shares have risen 8% over the last 12 months. >>>. the stoxx 600 telecommunication is down 15% year to date. some investors are seeing telecoms as one of the few safe bets. morgan stanley saying they are pretty cheap given that many european defensives are rich and telecoms look attractive. want to talk about the sector with david mccourt. thank you so much for joining us. you like telecoms, too, not just for valuation reasons but underlying growth opportunities. >> i think there's huge opportunity in telecoms, especially in the developing world, in the middle east and africa represents about 8%, and growing faster than the average. and there's 4 billion people that are underserved, have no connectivity or underserved one way or anot

does allianz just refuse pressure? andreas: that is been our assumption for a number of years. we continue to be a basket case. central banks will willingly be behind the curve as a way -- if you look the 50's and 60's, as a i -- wetop the real -- are going to increase interest rates slowly than inflation picks up. that is the theory. tom: i cannot convey, francine, enough at the heart of the banks.which is this they can get out front versus which what we heard. that is where you get into the drama of last week, evidence. i was amazed how people were still talking this weekend about the yellen press conference. i cannot convey enough the profound impact. francine: amazed but at the end of the day, she is the only game in town. everything trades off. all roads lead to rome, you can see all roads lead to yellen. it is not the surprising that people would hang onto every single word she says. mario draghi will be in brussels and berlin this week. and even more urgent message than usual. act toe government must bolster the economy. we want to ask him a more about deutsche and the i