tom and francine? francine: thank so you much, taylor.s she'll stand for re-election as she tries to convince the public and her own party she's no lame duck. the u.k. prime minister tried to end rumors about her future after newspaper claimed to know the date in 2019 when she was planning to quit after she lost her majority in june's snap election. you're seeing live pictures of teresa may together with the prime minister to her left of japan, shinso abe. for radio listeners it's the news conference with the flags of the u.k. and japan in the back ground. during her visit to japan yesterday in an interview, she was saying she's in it for the long term. let's get back to tim graf at state street global markets head of market strategy for e.m.a. when you listen to teresa may the last 72 hours, she pains in saying she wants to be re-elected and will stand again next time. is that a good or bad strategy? it's called a lot of people to center within her own campaign because she was blamed for botching the june elections. tim: we won't know th

francine: is europe great? has its challenges, because there is no fiscal union, there is nothing that holds them together from a fiscal standpoint. but i believe we have seen the worst in terms of being pulled into different directions. it seems the sentiment is more integrating. francine: so we don't somehow forget the concerns of populism, and that it comes back uglier in five years? joe: i am very encouraged that when people saw this is not going my way, this fiscal populism, that people stood up and went to vote. there were more people going to elections to vote than there used to be in the past. so, this was what was the most encouraging topic to me, that people said, hey, we are the people. now it is time to take that into our hands because seat -- things seem to be going wrong. that is quite positive. francine: how do you see china? joe: china -- the chinese way is typically sit down and smile. francine: and behind closed doors? joe: and look what happens. today, with the western world, having not yet f

david and francine? francine: thank so you much, taylor.amsung, we didn't have news this week of the new galaxy that it was dishing out and trying to compare it with iphone, but think of this, sometimes in our western countries, it's difficult to remember as a percentage of g.d.p. or a percentage of the chunk of the market in korea, samsungs are around 18%. you see any swings in samsung actually affects the whole index. it's bigger than the b.p. is on the ftse 100, for example. david: guilty of all five charges, jay y. lee guilty of all five charges he faced and interesting to see how it will shake out within the company and the conglomerate and a pivotal moment in south korean politics as well as you see a conglomerate coming under the scrutiny it's come under. francine: david, also in the news hurricane harvey strengthening overnight and taking aim at the gulf coast of texas and the energy industry. if forecasters are right, harvey will be the worst storm to hit the states in a decade. apart from natural disasters like earthquakes, hurric

tom, francine. francine: think is a much, jessica. has posted its sixth straight quarter of growth. gdp increased by an annualized 4%. the data comes as prime minister abe has been looking to call back support after this month's cabinet reshuffle. let's get back to iain and reinhard. this this actually mean that abenomics is starting to take shape and work? saidard: well, i mean, you it earlier, annualized growth rate of 4%, that is very good. growth has been a lot slower recently. still, we see a lot of support for monetary policy in japan. i think that was probably the key. fiscal policy is still very helpful. , think compared with these two structural reform lag has been relatively slow. francine: what does this mean? when you look at equities, i have a great chart that shows japan growth to value. the stronger the gdp, the more -- iain: exactly. i think what you have seen is a real pickup in the japanese economy. from the bank of japan standpoint, they continue to focus on the inflation level. core inflation remains anchored aroun

francine. francine: thank you so much.nt trump is seeking a major overhaul to the north american free trade agreement, which he believes has failed many americans. that was the main takeaway on the first day of talks with mexico and canada. some analysts had been expecting a modest revision. u.s. trade representative rob light singer has made it clear that trump is seeking more than a tpp clone. >> the views of the president about nafta, which i completely share, are well known. i want to be clear that he is not interested in a mere tweaking of a few provisions and couple of updated chapters. francine: still with us, shanker singham. do the markets care about nafta, or is it just another way of seeing whether the u.s. is protectionist or not, bob? bob: pay some attention to it, but probably not -- i think the market has got to a place where anything trump has talked about, what do we know? what can we believe? the early news in korea that the u.s. want do anything, how do you change his mind tomorrow? you pay some attentio

francine? francine: thank you so much. y wasn't tough enough, that is the message from donald trump, saying the regime in pyongyang should be very nervous. anythingth korea does in terms of even thinking about lovek, of anybody that we or we represent, or our allies, or us, they can be very nervous. they should be very nervous. things will happen to them like they never thought possible. francine: markets have been jolted by the drama. volatility spiked to the highest level since the u.s. election. 1.5%,p 500 fell almost the biggest drop in three months. billionaire investor ray dalio, who leads bridgewater associates, said people should consider placing 5% to 10% of their hedged assets in gold. kamal sharma is director of g10 fx strategy at merrill lynch. great to have you on the program. do you believe this will deepen or will we see a leg up? kamal: in the near term, we see little reason to change the view that the yen and the swiss franc should remain the fx currency of choice. tensione underlying between north korea a

francine?rancine: the south african president, jacob zuma, has narrowly survived a no contest motion in parliament. party members cheered as the motion was defeated, 198 votes to 177. the south african rand strengthened against the dollar against the vote, but lost ground after the victory of the 75-year-old president. we are now joined from johannesburg. what does the closeness of the vote actually tell us about the fragility of the zuma presidency? >> well, it is certainly waning. ever since 2015, we have seen numerous motions of no confidence. as a whole, we have seen eight against the president, all unsuccessful, but this is the closest we have seen between the motion for and against. as you said, 198 to 177. the ruling african national congress has 249 members in parliament and only 198 voted in favor of keeping the president in power, clearly with an his own ranks there is a lot of weakness. the confidence in his presidency is not the level it should be. the approval ratings are certainly

francine: it is francine from london.ing for to see whether tax reform will be pushed through? is it the tone of the president? mentioned,say, as i the first condition that will determine the prospects are what happens with funding the government and the debt ceiling. if that ends up being very disruptive, i don't see how we are going to get to the point where we can reach agreement on taxes. just within the republican party whether there is agreement. francine: let me rephrase that, how do you see the inflection points on whether we will have agreement on the debt ceiling? ofthe first point is the end september, do they fund the government? if they do, the probability of seeing the debt ceiling dealt with successfully is higher. think it will be as we see in previous years, princeton ship. my feeling is there will be an agreement, but how disruptive getting there will be is yet to be seen. david: stephen sheets. coming up later today on television and radio, we will bring you live coverage of president trump's address on

francine? francine: in a week of little significant economic data, all attention is on the jackson hole symposium in wyoming. investors will be focusing on any news flow from the key central-bank figures, including mario draghi and janet yellen. money managers will be listening for any clues about stimulus tapering. let's bring in gilles moec and john bilton, head of global multi-asset strategy at jpmorgan. thank you for joining us. how excited are you about jackson hole? please say yes. gilles: i'm not very excited about jackson hole, even to say that we probably gone full circle. lot from jackson hole to probably not expecting anything at all. they will speak. they will say something. odds are that there will be some interesting stuff, or to be more precise, the market will want to .ead something interesting why draghin't see would want to be very granular just 10 days ahead of a scheduled policy meeting. and they should learn, in the used that when the ecb such occasions to send a very stron

francine: that is the bloomberg business flash. francine? francine: thank you so much.n your markets with mark barton. mark: president trump's measured response to north korean missile launches from kim jong-un suggesting geopolitical tensions will ease off. stocks are rising. one industry group is lower, utilities. the euro temporarily crossed 1.20. the ecb may make references to the exchange rate that could halt the pace of appreciation, but a meaningful reversal remains unlikely. upside risks are forecast. next year. 1.2167 is a key level. this is the fibonacci chart. the bottom is net longs in the euro. we are near the halfway point of depreciation from may 2014. on the flip side of the coin, mark carney, is it time for him to talk about sterling weakness? we are near the levels we were back in october, when carney said he and his colleagues weren't in different to the exchange rate. watch out for future comments. they are willing to look through the depreciation of the pound, but any further depreciation, they test their tolerance against the euro. sinceng near the

we discuss that next. ♪ francine: this is "bloomberg surveillance" and i'm francine lacqua.et's get straight to the bloomberg business flash. reporter: bhp billiton has bowed to activist investors. the company has unveiled plans assets its u.s. shale and will delay a multibillion-dollar investment in a canadian project. that came as bhp announced profit that missed estimates. anofagasta said profits gained by 42%. shares in provident financial have fallen by the most on record this morning. that is as the ceo stepped down with immediate effect. they forecast a full year loss. the plans to replace workers the technology backfired. that is the bloomberg business flash. francine: with little significant economic data out this week, investors are awaiting the meeting in jackson hole, wyoming. this gathering comes as central exitingeep up towards years of unprecedented easing. yellen is expected to reiterate her plans to raise rates. but how will bond traders respond to this language of moderation? still with us, patrick armstrong. patrick, i saw a great bloomberg story that was

francine? francine: thank you. anthony scaramucci was are moved days his new job just 10 after he joined donald trump's team. the political turmoil spurred the delegate further declines, completing its fifth straight monthly drop. white house officials outlined an aggressive timetable for getting a tax overhaul in place by the end of the year. we are joined by iain stealey, jane foley, and of course, kathleen hunter. she's bloomberg congressional reporter and frankly, has been extremely busy over the last couple of months. thank you all for joining us, but i will start with kathleen. what's going on inside the white house? you have john kelly saying, i'm in charge and anthony scaramucci gets ousted. >> that's right. barely one week ago anthony scaramucci was talking to "the new yorker," talking about how he was going to fire everybody and a couple days later, he is out. it raises the bar for interesting even with this administration, with its unprecedented levels of shake up. with john kelly coming in, unlike reinc

francine? francine: thank so you much. u.s.futures are pointing slightly lower after the speed-wp and dow jones continued the record runs. how much further can the rally run given the turmoil in washington, let's ask luis kosta and richard jeffrey. richard, what's your take on the trump administration so far? we have someone in the white house, the chief of staff, he seems to be getting things a little bit in order but it's only week 2. richard: things to be getting things in order? luis: things to be getting things in order? francine: a little bit. richard: five minute of stability and we go right over it. it's one of the problems for anybody looking at the united states whether involved in financial markets or politics or just generally in the economy, trying to interpret what's going on there and what it might mean for them. and i think we're still in that learning phase. i don't think we're quite sure, the political process still seems quite random and we're not seeing very many decisions coming out of it and i think that's

david and francine? francine: the u.k. jurisdiction of the european court of justice. now the prime minister, teresa may, who seven months ago declared the u.k. would take back control of its loss now conceded they will influence britain long after it leaves its block. the climb down accel breakthroughing divorce talk is what we think is going on. we're joined by you're bureau chief along with gary schilling. emma, thanks for joining us. we need to make sense what is going on. we understood teresa may was willing to give in on e.c.j. to speed up divorce talks but now there's an interview she's done with sky suggesting otherwise. emma: basic i the u.k. made a concession on an issue that was shaping up to be a major obstacle to a brexit deal and made the concession on something systemic important to the brexiteers. what teresa may is saying nothing has changed. one of her ministers said there would be an arbitration mechanism and the u.k. will keep half an eye on european ase law. we'll get the details of what it means but i

francine: thank you.is working with germany and others to plug loopholes that have allowed companies like facebook and .oogle to >> it is always the same strategy based on playing fields, based on the same rules for everybody. when you're doing business in france and europe you have to pay taxes. you cannot take the benefit of doing business in france or in europe without taking the taxes that other companies are paying in europe, or in france. the same rules for all the companies and all the states. reporter: does that mean you want to lower the company tax to 25% everywhere in the eurozone? >> we will lower the corporate tax from 33% to 25% until 2022. then, there is a second step. we want to have the tax harmonization among the members of the eurozone. you have 19 members of the eurozone. you have one currency, the euro. and you have 19 levels of taxes. and you have 19 different economic policies. we cannot go this way anymore. that's why we are advocating for tax harmonization. the first step on the e

francine? francine: i'm glad you're looking at yen.ncies, but the dollar seems to no longer be the obvious second place. i would point to the euro picking up above 120. gasoline also gaining as energy company's are bracing from another hit them tropical storm harvey. this quite a lot of news around and assets we need to look at in your data checks. they have fired this unidentifiable ted ballistic missile over japan. it landed in the pacific ocean. the japanese prime minister described it as an unprecedented, grave, and serious threat and that he had donald trump have agreed to increase pressure on pyongyang following a 40 minute phone call. >> japan's position completely matches that of the united states. north korea's missile launch poses a serious and great threat on an unprecedented level. i'm in complete agreement with president trump that we must convene an emergency u.n. meeting an increase pressure on north korea. francine: let's get the latest with stephen engle in tokyo. stephen, first of all, let's start off with you. what d

morning, francine. first of all, what a difference of your makes because as you say, this time last year, we got that rate cut followed brexit, and this time, a year on, we are talking more about whether there could be a rate increase. the consensus view is that it vote in favor of keeping rates unchanged. we did get that surprise 5-3 vote in june. nocourse, kristin forbes longer at the bank of england. her replacement is unlikely to go against the consensus on her first time voting. some people are questioning andyher and holiday -- could become hawkish again at this meeting. you have morgan stanley saying vote.ld get that 5-3 goldman sachs saying the same. it could be 5-3. nomura saying the bank of england could surprise today and hike rates. the consensus is for it to be 6-2, rates unchanged. why? we had that slowdown in inflation for june to 2.6%, still above target, but a slowdown nonetheless. then there is the growth coming in at a meager 0.3% and crucially, wages still underperforming inflation.

francine? korean peninsula spreading to global equities, including european stocks. 12.15., you can see at tom: we do not look at our data checks before hand. right now, they are overlapping. that brings us to our two good reporters. take fromt quick yesterday with an update on korea. kevin cirilli is involved with the gulf. today for asten response from beijing? beijingl comes down to 's response on how they not only implement the sanctions against north korea, but whether or not they follow up with them in terms of putting out the key components, part of the current sanctions of oil. china is the biggest supplier of north korea's oil and food. if it does feel that the sanctions are not working, that would mean it could break a deadlock. china is essential to the ongoing north korea situation. francine: all right. kevin, when you look at what the trump administration said, how seriously do we take the threats is the mark kevin: they are taking the threats. seriously. there have been some repor

francine: the u.k.ants to maintain terror free trade for a period of time after brexit. this morning, a series of papers, fleshing out the u.k.'s brexit plans. for more on all of this we are joined by norman lamont, former u.k. chancellor of the exchequer . ray, thank you so much for sticking around. what have we learned so far about what kind of exit negotiations we look at? i think what the paper is all about, it is about avoiding the so-called cliff edge as how as you deal with trading with europe. i think this is a much about administrative procedures, what businessman raised at the border as it has to do with terrorists, but it also has to do with the terms that goods are actually traded. francine: what is the first thing we need to do after she comes back from holiday? that, and a lot of people do say that, but actually i think the government's approach has begun to take more shape. it is a complex problem and i think the joint letter between liam fox and the chancellor helped, but i think you can

francine? francine: thank you so much.next, japan's economy is slowing, but don't expect it to last. more from our exclusive interview with governor kuroda. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. francine: you are watching "bloomberg surveillance." let's get straight to the bloomberg first word news. nejra: in the u.s., houston is unprecedented rainfall following the biggest storm in the history of texas. the downfall has crippled the core of the u.s. energy industry. gasoline has surged to the highest in two years as flooding inundate refining centers along the texas coast. the president of the cleveland fed urged her colleagues to look past recent inflation data and stick to their gra

francine? francine: tech stocks are powering and now less so.e benchmark equity, crude is falling for a second day and industrial metals are trading lower and a surging euro and a bit of a headwind to the global stocks. that is my data board encapsulating everything were looking got. yen at 137. tom: i had an emails from david gura who will join me, the press release from the new chief of staff at the white house, general kelly, joining alongside blooms surveillance is our chief -- bloomberg surveillance is our chief washington correspondent, kevin cirilli. what will be the relationship of the new chief of staff of the family members of the private -- president? >> i think it is worth noting anthonyh the firing of scaramucci, they are trying to set a new tone and that's what we have seen in the last 24 hours. tom: i see real body language. senator portman will talk about his leadership on heroin and opioid. what does the new day-to-day cadence of this president? kevin: i was speaking to senator portman yesterday and asked him about what else is

francine: where do you see pound?has recovered quite nicely admittedly against a relatively weak dollar. we do see the pound weakening from here, particularly against the dollar, but a little more against the euro as well. 120ound dollar gets back to where we could see new lows. the u.k. economy would be a disaster if the pound went to parity with the euro. francine: this is euro pound. we have two big banks calling for parity. can that touch parity? >> i think it is unlikely. a lot of the negativity towards the u.k. economy is already priced in, and by an equal token, a lot of the positivity towards the eurozone with president macron, and a more stable situation in italy, a lot is already priced in. i think we could get to 95 and probably not parity. francine: when do think we could have a transition agreement on what the shape of the brexit will take? >> i don't think the markets will be very impatient. and we gone five months have very little to go on though there was an election that got in the way of any further

i'm francine lacqua in london. tom keene in new york. we just have a comment from the commission that everything is fine, that they will look into them. we are seeing a little bit of a disruption because of pound and inflation holding steady. that definitely bolsters the argument about the boe moving. tom: not only the budget issues in the united states, but is brexit moves forward in september, i wonder where we will become thanksgiving. francine: who knows? let's get straight to the bloomberg first word news. korea may be signaling and wants to diffuse the deepening crisis with the u.s. kim jong un was briefed on the plan to launch missiles near watchbut he said he would the foolish and stupid conduct of the yankees in little more before deciding whether or not to go ahead with the launch. the ceo of intel has quit the

. >> francine wheeler: ben was six years old. >> pelley: david and francine wheeler. >> francine wheelerd funny. >> david wheeler: and our house is very quiet. >> pelley: david wheeler filled that "quiet" with a shout to every parent. >> david wheeler: i would like them to look in the mirror. and that's not a figure of speech, scott. i mean, literally, find a mirror in your house and look in it, and look in your eyes and say, "this will never happen to me." it's going to happen again. it is going to happen again. and every time, you know, it's somebody else's school, it's somebody else's town, it's somebody else's community. until one day, you wake up and it's not. >> pelley: that week, several of the families convinced the connecticut legislature to pass universal background checks and to limit the size of ammunition magazines. then, they marched on washington to support a more modest proposal: just closing the loopholes so that all purchases require a background check. >> nicole hockley: i stand before you now and ask you to stand with me. >> pelley: polls showed most americans stood w

francine: how different will it be from previous versions? is prettym factors set in glass at this point. it's a rectangle and a touchscreen. what can change will be some of the components within. there will be new augmented reality elements that apple has hinted at. it will be thinner, better camera. the performance will be faster. things like that. want to take this on the

francine: can you tell us a little bit about that first day you started

. >> reporter: francine rosston is the local rabbi in whitefish. she says she and her family were also targeted in the same troll storm. >> anytime you invoke holocaust language and holocaust symbolism, you're invoking a narrative that is calling for the destruction of the jewish people. that person wearing a star is eventually supposed to end up in the crematoria. >> reporter: this is not the first time anglin has been accused of rallying his followers against a victim. erin schrode says she was one of his victims. >> there were thousands of messages i got across these platforms. >> reporter: the 26-year-old was running for congress in northern california when she says anglin zeroed in on her. >> i saw an e-mail. me with a yellow star next to some monster-like creature. saying get out of my country [ bleep ]. get to israel or get in the oven. >> reporter: since godaddy kicked off the site, the daily stormier has been trying to find another host. google said no. and even a russian server refused to accept them. but just hours ago the site re-emergi

mark: adidas executive kasper speaking with francine lacqua a little bit earlier.e: time now for the latest bloomberg business flash. a look at the biggest business stories in the news. avon ceo is yielding to pressure from activist investors and will step down next year. partners have called for the appointment of a new ceo following disappointing first-quarter results. avoin shares have fallen -- avon shares have fallen since she took over. at that has advised investors -- aetna was boosted from a strong last quarter. aetna has largely gotten out of the affordable care act individual exchanges after suffering losses in the program. hedge fund manager dan says he is betting against stocks. he sounded skeptical on the number of companies. have a listen. with think some companies might be playing accounting games to achieve their results. vonnie: he says he is betting against retailers, consumer brands, and energy related companies. that is your latest bloomberg business flash. we have heard that before, right? mark: we certainly have. taken a look at where european

francine: will he hit his tar get? >> i don't think so.can tighten policy through the euro is through rates. matt: he does seem to be tightening policy just by job owning. he's not even job owning. the market is expecting it. take a look at this chart, which shows you the bloomberg eurzone financial conditions. this is just a one year chart. you can see financial conditions have been getting better and better. they are now getting worse and worse. is this the market anticipating the jackson hole speech, which is where he will start tapering down to zero, and maybe next year raise rates? >> i think that chart probably, normally come of financial conditions is spot currency and full currency rates. it hink -- i think that chart is saying, the euro has done his job, playing part of draghi's hand in tightening financial conditions. the market has had a great run. the economy is doing well across europe, generally. the banking sector is recovering. i think this is a positive for mario draghi and he continues to do the nonjob-owning. matt: if th

this is bloomberg. ♪ francine: time to unwind. a case for reducing the balance sheet, despite the low inflation that is challenging to central bank's credibility. >> it does not matter if the investors believe the fed can achieve its goals. francine: south africa's parliament holds a secret no-confidence vote. where are the workers? they are finding it harder and

francine: is this expectation? i'm going to the figures in a taking is it just dividends?dends in banks more than they ever have? >> no, topline growth is what it is about. banks that are delivering topline will continue to outperform. but there is fatigue for certain investors. mark: let's go to standard charts, they seem an uncertain future. chief executive bill winters says that the overhaul of the bank is imperative. shares falling for a third straight day after it reported revenue gains. give me probabilities on this year, 50, about 50, below 50? >> it will be reviewed at the end of the year. we said really that there would be two things important for us, one is that we are comfortable that there is a profit stream and an earning stream, which is going really well. we announced nearly double profits. the second one was making sure that there is enough capital for other banks who have been paying their dividends. their decision is the continuance of a dividend. whereas our situation is a little different. we stopped paying the dividends a while ago, and the decision to

this is surveillance, i am francine lacqua in london. like a lot of news

francine: going further than fire.e pressure on north korea. >> they can be very nervous. they should be very nervous. things will happen to them like they never thought possible. francine: stocks drop and volatility spikes as markets digest the saber rattling. fifth timeit be lucky for u.s. inflation? well dudley says don't

francine: meanwhile, u.s. of america's boss says keeping it there could be a struggle. >> we've got a solid economy. without population growth at a faster rate, you are going to see this fight to get

francine lacqua will bring you an exclusive interview with the ceo of credential, mike wells.rg. ♪ ♪ francine: crumbling credibility, james bullard became the latest number to admit inflation is hurting the fed and will we get the july meeting tomorrow? pimco joins the course of asset managers say it is time to dial it down. and the man google with his views on women and diversity. his opinion in an exclusive bloomberg interview. >> the point of my memo was to improve google and google culture and they just punished mend

this is bloomberg. ♪ francine: counting the cost of harvey.illion. gasoline spikes as rain hits refining centers across texas. the boj boss warns japan's current growth rate can't continue and says he won't the following the fed or the ecb anytime soon. uber's new driver. the giant is said to pick expedia's ceo to steer it out of crisis. good morning and happy bank holiday monday. this is bloomberg surveillance.

this is "bloomberg surveillance" and i'm francine lacqua in london. we have eurozone pmi

francine: abandoned by business.sory councils are scrapped as ceo's jump ship over charlottesville. a battle between data and theories. the latest fomc minutes show fed officials wondering whether their model still works. and, theresa may's government is said to be considering visa free travel to the u.k. for europeans after brexit. this is "bloomberg surveillance ." happy thursday. this is your data. i w

best will be joining francine. and we will see the ceo lloyd bank.ing forward to other those conversations on bloomberg. let us get back to killing common, who joins us from -- to caroline connan, who joins us from paris. litigation costs once again overshadowing performance elsewhere. how frustrating is this? caroline: he told me this has no real effect on the bottom line foruse this is something the investment authority. this is just in the second quarter. ae issue socgen also took next her 300 million euros in provisions this quarter. the ceo of such an did not really specify for which disputes and when exactly this money is going to be -- he did tell me that socgen has to not stall some of the aroundown litigations the probe in the u.s. related to trade valuations, and also on the rival. the ceo told me he wants to solve this litigation issue as soon as possible. this is overshadowed with the revenue at the investment bank, falling less than some european bears. -- jump insocgen structured products this quarter. matt: is he confident about the ou

. ♪ francine: fire and fury.to unprecedented missile. >> let's not make any more threats to the united states. they will be met with fire and fury like the world has never seen. francine: north korea fires back, saying it is considering a missile strike at the u.s. base on guam. plus, cutting up the middle man. disney plans to pull movies from cable

. ♪ ♪ francine: joe kaeser is a rare breed of chief executive who has dedicated his entire professionalcompany. he was a young business graduate when he joined siemens in 1980, moving up the ranks and around the world for a company described by angela merkel as a flagship of the german economy. siemens truly powers modern life, making everything from turbines and health scanners and factory equipment. joining me, chief executive officer of siemens joe kaeser. thank you so much for speaking

francine: joe kaeser, a rare breed of chief executive, who has dedicated his entire professional lifeompany. he was a young business graduate when he joined siemens in 1980, moving up the ranks and around the world for a company described by angela merkel as a flagship of the german economy. siemens truly powers modern life, making everything from turbines and health scanners and factory equipment. joining me, chief executive officer of siemens joe kaeser.

the chief executive spoke to francine about shedding its small capital products.re looking at both internal and external ways to the risk that business. we would consider selling some of it. certainly not any reason to do that. is not to lens for that short-term cash. we are not in any hurry to do any transactions in that space. we have exited on a retail basis. we wouldn't do anything that affected consumers or diminish total shareholder return. runningery efficient at it and it's producing very good cash flow. it's very capital intensive. the whole book is worth 45 billion. would you look at selling 10 billion and take step-by-step? >> i would not get into the specifics because part of what we initially do is just price discovery. i don't want to build the expectation that there will be a huge relief of surplus. we generate a lot of organic capital. 10% this year so far. we are capital generative without doing anything in the back book. we're going to look at what's out there. there's a number of firms that are quite interested in sharing some of that risk and w