we will do that later on radio. ♪ tom: it is francine lacqua's london. friday in london. it looks like a disney set. the buildings drive me nuts, francine. francine: i quite like it. the names are quite disney-esq ue. tom: what are the names? francine: do you like the cheese grater? it looks like a cheese grater. they are right on the money. tom: let's get to the bloomberg business flash. mayer inn 88% drop for second-quarter profits. options forrategic maersk. olympics tv ratings are falling short of expectations. nbc won't say what size audience did promised -- audience of promised advertisers. the primetime audience is from the 2012 olympics. francine. francine: thank you so much. this is a picture for sterling below 1.30. someone that we have regularly , people are remaining longer dollar pound. gallo back with stephen to have his thoughts and insights. what does sterling do from here? stephen: our view is 1.27. we are not in the extreme bearish camp, but we do see downside risks from the politics and the macro economic climate. we have always said t

francine lacqua is in london. where is brexit this morning? t yet. having a huge impact on the pound, remember, we are waiting for data for july and august. it is backward looking, but we also had a record low yield for the five-year. tom: i strongly agree with that, waiting to see if governor carney was right on an important decision last week. sebastian: the emperor of japan is saying it is too difficult to carry out his duties. ihe is 82 years old. would be succeeded by his son. pakistan, a bomb exploded at a government run hospital, killing at least 53 people. the explosion took place not long after the body of a murdered lawyer was brought to the hospital. no one has claimed responsibility. iran has confirmed it has hanged a nuclear scientist for providing secret information to the u.s. he claimed he had been kidnapped and held in the u.s. for 14 must. but "the washington post" gave $5 million -- donald trump will call for a temporary moratorium on new financial regulations. aides say he will call for a repeal of the estate tax. at the sum

francine lacqua in london.rench trade minister wants to end negotiations on a trade deal between the eu and u.s., saying the u.s. has not offered anything substantial. issuesk will focus on such as bands on u.s. agricultural issues. the u.s. is urging turkish and kurdish forces to quit their fighting in northern syria. the pentagon says those battles have hurt efforts to defeat islamic but turkey is vowing to until theush ahead kurdish and islamic state a longer pose a threat. the u.s. will hit its goal of taking in 10,000 syrian refugees early. republicans in congress question whether the screening process for refugees is tough enough. a new poll highlights some of the problems facing hillary clinton. the survey has clinton and donald trump tied in ohio with 43% each. clinton leads narrowly in pennsylvania and michigan. pennsylvania, trump has had a big lead in independent voters. colombians vote on a proposal in october to guarantee the rebels seats in congress and allows the the yesto be -- campaign is ahead

im francine lacqua

i am francine lacqua in london, tom keene in new york. the banks are the biggest industry losing ground in europe and you have credit suisse, ubs and commerzbank down between 7% and 8%. tom: i would note when i walked in the door american oil was below $40 a barrel. francisco blanch is going to join us in a bit, but it is a deceptive tuesday. there is a lot going on. francine: let's get to the bloomberg first word news. japan's economic stimulus plan will increase spending by $45 billion this year according to a draft being discussed by the ruling party today. it includes low-cost loans and money for infrastructure and disaster relief. they have been hurt by a stronger yen and week consumer spending. australia's central bank has cut interest rates to a record low. they lower the cash rate by a quarter percent to 1.5%. -- inflation and wage growth are at record lows. warren buffett is challenging donald trump to meet him anytime and anyplace to reveal their tax returns. while campaigning for hillary clinton, he ripped trump for failing to

i am tom keene in new york, francine lacqua in london. ine: first of all, the italian banks are under pressure, but they are a little stronger than market sentiment given credit for. it is emerging markets that are hurting the most today, so banks are not that. european stocks are down as well. tom: they are down overall. overwhelmed at the great mystery of all this. there is no mystery, she has our first word news coming here is taylor riggs. emirates airline passenger jet was involved in some sort of incident while landing in dubai today. the boeing 777 was arriving from india when it made an emergency landing. all passengers were evacuated safely. tv footage shows clouds of black smoke and all planes are now delayed. for the first time, north korea has fired a missile that landed in what japan considers its exclusive economic zone. it fell into waters about 160 miles from japan's coastline. prime minister shinzo abe called it a serious threat to japan's security. there is support the obama administration sent $400 million to iran. it co

with me, francine lacqua and london. ise years on, it extraordinary how little has changed. are absolutely right. the balance sheets of central banks, it is amazing how they have grown so much. that is the amazing part. uc see european banking. i believe august 9 was bnp paribas challenged in europe, and we still talk about european banks, don't we? francine: bnp is still talking saw thee fact that they beginning of the mortgage crisis. realizee the first to the impact of the crisis. .om: remarkable it is not that time has flown, it is that we keep going on this thing. right now at theme is to get to "bloomberg first word news." is shakingald trump up his troubling champagne again. stephen vanden. senior adviser kelly and card way will become the campaign manager. all of this is seen as a demotion for paul manafort. american investors have lost considerable confidence in donald trump. according to a new bloomberg politics poll, registered voters narrowly picked trump over democrat hillary clinton. to 40%. in june, he led 50% to 33%. one investor who is a big trump back or is

i'm francine lacqua. let's quickly check on the markets. we decided to plug pound before anything else. if you were to choose one story you wanted to date deeper into, it would be bank of england and repercussions of a brexit on whether they will do qe and what an interest rate cut means for the economy. for europeanicture stocks overall, gaining a touch. we had earnings news here in there. crude oil at $43. let's get the bloomberg first word news with nejra cehic. nejra: siemens has raised its earnings outlook for the year after higher-than-expected third-quarter profit. europe's biggest engineering company said profit from so-called industrial operations rose 20% in the three months through june. chicago fed president charles evans says one rate hike could be warranted this year. he expects growth to increase in the second half of 2016 following disappointing gdp readings in the first two quarters. investors are awaiting friday's jobs data for july. a woman has been killed and five others injured in a knife attack in central london. polic

and francine lacqua. here's a picture from the boards -- i am francine lacqua.rom the boards. there you go, 130. we were touching below 130 just about a half hour ago. crude oil at 42. the european stocks practically unchanged. just a little bit higher. because it is august and we are not seeing much volatility i want to say that u.s. volatility index down. let's get to the bloomberg first word news with near change it nejra: donald trump has laid out his plans for growth in the u.s. borrowing from traditional republican ideas by proposing tax cuts and looser regulations. he told the detroit economic club that he wants to simple five excessive business regulations and lift restrictions on the energy sector. he also says he wants lower corporate taxes and the biggest overhaul to the income tax cote since ronald reagan. cooks you cannot ever start a small business under the tremendous regulatory burden that you have today in our country. going to end it. i am going to cut regulations massively. francine: turkish president visits st. petersburg to rebuild relations

i am francine lacqua in london. tom keene in new york. we have a lot

tom: let's bring in francine lacqua. you look at the banks, and against governor kuroda was trying to do it with the way that he. his negative rates experiments. is there anything central banks can do? brad: i think they have been helping the banks. they want to healthy -- they want a healthy banking system. they are caught in a bit of a bind, right? the issue is how do you get the economies going. let's think of europe. i am now actively buying corporate bonds at what is that doing? that is court -- that is telling corporate treasures to issue in a corporate bond market. that is not helping a bank. it is necessary to get the economy going. the issue you've got is the regulators saying i have a bunch of what turns out to be competing goals. have to make sure the financial system is strong. and i have to get an economy going, lower interest rates. that hurts the bank it all of these things -- that hurts the bank. all of these things are temporary. francine: is a regulation going to bar for the banks? the problem is they h

i'm francine lacqua. here's nejra cehic.at least 21 people have reportedly been killed after a 6.2 magnitude earthquake hit the center of italy. that is according to the sky tv channel. sky is also reporting that at least 100 people are missing. prime minister matteo renzi has canceled a planned meeting with french president francois hollande in paris. china's central bank has injected cash into the financial system using repurchase agreements for the first time since february. this comes amid speculation policymakers are looking to cool a bond rally. a record rally in chinese sovereign debt has prompted traders to increase leverage to amplify returns. oil has resumed its drop after industry data showed u.s. stockpiles rose, keeping inventories at the highest seasonal levels in years. this followed a jump in prices on speculation iran may support an opec freeze of output. there are reports that tehran has sent positive signals about supporting joint action. global news 24 hours a day powered by more than 2600 journalists and

i am francine lacqua. we are going to get some people numbers.ill get through the markets in just a moment. 106.2.is that it is below expectations. if you look at the difference. the 108.5 that we were expecting. down with some of -- we break it down with some of the numbers. ceo's expected future revenue -- the future is at 100.1. it might be a little bit of post-brexit. it might be a little bit of august lull. it may have an impact on fifa's money.- ifo's janet yellen speech will be taken live at 4:00 p.m. london time, a specific index come i put in there because volume in asia, you can see overall stocks gained volume -- volumes are 30% lower than the previous month. brent crude, $49. a good measure to see where that is at 138. let's get to the bloomberg first word news with nejra cehic. nejra: the death toll from the powerful earthquake that hit italy yesterday has written to 247. it is according to the civil protection agency. flattened that hit the center of three ancient towns. there is fear that more baby buried in the rubble. investors p

i am francine lacqua in london.apple is said to be facing a potential tax will -- bill running into them billions of euros. the european commission is expected to say ireland provided them with illegal aid in turn for creating jobs. vowed to fight any dust against this ruling. they are scheduled to hold a news conference in brussels and we will bring you that here on bloomberg. u.k. mortgage approvals slumped to a low following the brexit vote, pointing to a slowdown in the borrowing surge. quickening inflation is said to erode the earning power of british households. volkswagen's ceo says it will take two to three years for his revamping of the company to bear fruit. he has about 60 projects to overhaul the company. that is as they seek to recover from the diesel emissions cheating scandal. german foreign policy spokesperson and ally to angela merkel says the u.k. will have to pay into the eu market if it wants single market advantage. >> if someone wants to benefit from the european union within the market structu

bloomberg "surveillance," francine lacqua in london, tom keene in new york. ne was not with us yesterday because she was stuck in a terminal. taylor: delta is still struggling to get back from that computer glitch that grounded hundreds of flights. the delta ceo apologized. fee is inaving change fair differentials for passengers for flights that were delayed or canceled. in brazil, a vote on whether to put dilma rousseff on trial. she is expected to lose the vote which only requires a simple majority. they would need a two thirds majority in the trial to keep her from resuming office. hospitalrn syria a from doctors without borders was destroyed. the hospital is in an area controlled by rebels. syrian and russian planes have been blamed for destroying hospitals. casting doubt on china's promise not to militarize a chain of disputed islands. reinforced aircraft hangers are being built on the islands in the south china sea, and the center of strategic studies say they have room for the chinese air force. singapore is not saying when it may revive its efforts to

a distracted francine lacqua i n london. mr. renzi will speak at some point. understand he will speak from the presidential palace in rome. a politicalhis as platform. they are still trying to extract people. there is a huge search and rescue operation going underway on the earthquake. but there is a linkage between politics in this disaster. tom: how removed is umbria from the italy that american tourists know, and milan and romse? e? it is in the center of italy. a lot of people are at the beach. it is a part of italy that not a lot of tourists know because it is in man. townsve a connection of that are around 2000-3000 people large. that is the effective it may be more difficult to reach these towns but it also means you do not have mass scal e deaths. tom: an update. let's go to first word news on italy. taylor: i'll recap those headlines. rockedth clarquake has central italy. 37 people were killed. as many as 100 are missing. the earthquake had a magnitude of 6.2. it was centered 27 miles from the town of rietti. rescue crews are searching through destroy

francine lacqua has, i have as well.ading is always important and always more important on august 1. washington has a summer reading list trying to get to the issue of policy. maybe we will get to that on the second, third, or fourth week of august. right now the policy is to get the bloomberg business flash. taylor: one of china's most inquisitive conglomerates is looking to sell off debts. they plan to sell off up to billion in assets. the flagship unit tells bloomberg tv that the company plans to disclose cells between now and the end of next year. the pokemon go craze may be tapering off in japan. analysts and investors have had difficulty calculating the impact on the bottom line. uber will sell its chinese this this to didi. plus, they are making an uber.tment into they have been pushing to sell the chinese business after big losses. uber deal is not out yet. i want to make that clear here. basically the chinese giving $1 billion to global uber, and in the distance, they walk away .rom china and clear right now. i

i am francine lacqua.e will be joined by the prudential ceo, mike wells. the company reports earnings and a half hour from now. he joins us 40 minutes from now. 10 minutes after the release. we will be talking about brexit and all of the challenges he has to do in the wake of negative rates around the world. we will be talking about guilds. we are grading -- we're getting breaking news out of the doe. yesterday was the first time the boe ran into this stumbling block. the second day it was buying that it expand this qe program. the boe seeking offers and 1.1 7 billion field operation. do -- what it to is trying to do is it will include a shortfall. i don't know whether they are buying short-term maturities which are easier to there are more sellers of that. boe is saying it will seek office in this 1.17 billion pound guild operation. i don't know if they are changing that much in terms of timeline. we will bring you any new boe headlines. let's get to the bloomberg first word news. nejra: turkey and russia

with me, francine lacqua wine london. does to the movement of the currency over the next five years. francine: many people saying it is a failed currency. i would argue and probably push back the it is too late. you have the currency, let's make the most of it. tom: he does a lot of pushing against consensus within his new book. we will get to that and a bit area first word news coming years taylor riggs. taylor: japan's exports have enough on this much since 2009. oversee shipments plunged from a year ago. one reason is slowing global demand. the other is the stronger japanese yen. it is gained about 20% making japanese products more expensive. turkey has revealed how broad the crackdown was after last coup.s attempted more than 40,000 people or detained in more than 5000 are still in custody. 80,000 turkish government employees were removed from duty. germany says that the u.k.'s future relationship with the european union requires a custom-made solution with deputy foreign minister's -- the british will not be able to c

i'm francine lacqua in london. tom keene is in new york.et's get straight to the bloomberg business flash. sentr: raw materials have profits plummeting. fell 8%, bhp'sgs 2001.result since the company does see a brighter long-term outlook for copper and oil. there is talk of a merger that would create the world's largest supplier of industrial gases. negotiations.ld the status of the talks is not clear. the deal could be valued at more than $30 billion. a new study says that leaving the european union says it will hurt the earnings of lower wage earners in the u.k. supporters argue that low-paid workers would benefit if migration numbers were cut. francine, you are sticking with brexit. francine: the u.k. got the first vote.umbers on the brexit banks withent headquarters in london will start moving jobs much earlier than expected. we are joined by michael moore and we are still with nick and tim. michael, overall, is this expected? the banks are disappointed because the government does not really have a plan and brexit may be triggered not b

am francine lacqua let's get to the bloomberg business flash with nejra cehic.ra: persimmon has recorded a robust first half. profits were up 29% on a 12% rise in revenue. the company said while the brexit vote created more economic uncertainty, cuts have been solid. >> people are very keen to buy. lenders are keen to lend. people understand that the affordability is there. if you want the government -- it -- oftenoften achieved cheaper to buy than it is to rent. the market is very strong. we are not seeing any particular change in behavior. francine: blackrock -- nejra: blackrock is betting on markets. citing an improvement in fundamentals and stability in the dollar could last month it raised its outlook for emerging markets. blackrock sees more room for inflow to the end sei emerging markets. -- to the msci emerging markets. easing concerns on the pace of the fed's rate hike could credit suisse -- hike. credit suisse ceo -- harrods associates have increased its , sincein more than 10% taken over last summer, tim has encourage businesses to take away -- to shi

this is bloomberg. ♪ frank i am francine lacqua here in london.'s get to the burke business flash with nejra cehic. nejra: -- has removed its ceo sing the role has become so complex that it traditional management profile was no longer adequate. bynk manion will be placed -- with immediate effects. shares have fallen 22% since he took over as ceo in march of last year. talks.ere has held the combination of the two companies will create the world's largest supplier of industrial assets. warren buffets pressure hathaway posted boosted its investment in apple during the second quarter when the stock slipped according to a regulatory finding. 55% to 15.2 million shares. copper miner antofagasta has seen its revenue slump 18.5% on lower prices. speaking to bloomberg, the ceo says he sees profits rising in the medium-term. >> copper has traded sideways this year and we have seen a summer demand in the first half in china which represent around 50% of copper demand. the outlook for copper is favorable in the medium-term. in the short-term term, there is m

welcome to "the pulse," live from london i'm francine lacqua. let's quickly check of the markets, global stocks holding near a one-year high as we are seeing more and more rising oil prices, now above $45 a barrel. if you look at wti, you can see it around $45 currently. it's pointing to a resurgence in the emerging markets, and to a saudi stabilization. they keep on saying they want some price decrease, but there rhetoric is certainly filtering through to the markets. this is the big picture for the e markets. the yen lower after slow forecast, a lot of investors thinking the boj will have to do more. let's get more of the markets with nejra cehic. nejra: the chinese yuan has suffered its sharpest drop in six weeks after there were concerns raised about economic growth in china. figures showed new credit growth in july was the weakest in two years. and investment also we get, indicating that the reason stabilization may be faltering. two terminals. at new york's jfk airport were evacuated after initial reports of shots fired. the nypd tweeted t

tom: let's bring in francine lacqua in london.k carl simplistic question which has been confounding the markets. what does it take for the w.a.r. p functions come of the markets, to reprice? , tom.wirp do we need two blowout figures for something to be back on the table for this year for the fed? carl: one strong jobs report certainly is not going to do it. ,e need evidence of sustained strong job gains and stronger economic performance. barring that, the market is going to continue to call the fed's bluff in terms of the tightening and what it will look like. francine: stephen stanley, is there a risk that the market is mispricing this? it happened once before, and then we had an emerging market temper tantrum. carl: even -- steve: bill dudley earlier this week said the market is not pricing enough tightening. given the fact that the fed has led us to water and then pulled it away several times over the last couple of years, the fed will have to bang the market over the head to price something in. francine: how many blowout numbe

francine lacqua is in london. good morning, francine. i was going to say, unlike bonuses or are bonuses being burnt? i like it. tom keene is going all gotham city on me. bonuses getting burned at investment banks. a route in stocks means they wiped more than $2.5 billion from bankers in bonuses. let's hear from christopher wheeler. basically it goes back to the pay structure so this is not strictly a bonus story. but the pay structure because now it's sold into shares. if the share price goes down, you're paid less. is it going to be more difficult for european banks to attract talent and is everyone going to move to dark and stormy new york? >> well all the shares i was give than i didn't get i sold to jamie dimon for $2. it's money you haven't got and part of a bonus that's deferred and at a share price at the time the award is made so when the share price falls suddenly you have a little net worth statement you can pull up and suddenly you're lets well off but you never had that money in the first place. more importantly, if you're st

francine lacqua in london.ainst a more fragile euro. through 21 12.79. all watching sterling, 1.3331. chrisverrone looking for stronger sterling against consensus. francine: coming up shortly as bloomberg and alix steel joins us now. you have a huge banking guest. alix: we have an unbelievable guest joining us, brian moynihan, ceo of bank of america. we will be breaking down the boe decision and the broader state of u.s. banks when you compare them to the european counterparts, and what the situation will become when it comes to market share and profitability. later on in the show we will be speaking with mexico's foreign affairs minister, and front and center is going to be trump and clinton, both backing away a little bit, more of a protectionist feel. what does that mean for mexico who depends on u.s. trade? francine: thank you, alix steel. let's bring in manus cranny at the boe. people forget, this would not only be the first great cut in seven years but the first move for the bank of england in seven

i'm francine lacqua. we have a great deal of conversations coming up.e have a lot lined up for you including one conversation with the former opec president and algerian oil minister, chakib khelil. the good thing is he will be up to put every thing into context and say why opec costs are different now. we are having breaking news from the middle east sovereign wealth fund. we speak to the ceo on a fairly regular basis. it has returned to profits. this is because it's trading division made some money. this is a huge sovereign wealth fund. biggesttually the sovereign wealth fund in the world. there were concerns about the impact that oil has had and on the sovereign wealth fund saying it has returned to gains in the second quarter even as it warns low interest rates will put pressure on returns and this as we have seen more withdrawals from the government. it is on some of the gains are due to the way they positioned on the bond. let's get straight to your markets. this is a picture overall, -- dollartocks are actually being under quite a lot of pressure

i am francine lacqua.uropean sex declining for a second day there dollar weakening -- european stocks declining for second day. dollar weakening. contradicting reports and it is unclear what part of the fiscal plan is new. we will try and way into all of that and give you a breakdown. banks down 2%. we found out late last night that deutsche bank and credit suisse will be kicked out of the euro stoxx 50 because of the share price has fallen so much in the coming days. that's get to bloomberg -- let's get to bloomberg first word news. nejra: -- typhoon at last the city with wind and rain. it grounded flights. hundreds of people suck refuge. -- soft refuge. ceohe berkshire hathaway tapped the presidential nominee at a slight he may does he made. -- he made. >> donald trump i have not sacrificed anything. can you stand up to a couple of parents who lost a son and talk about sacrificing? have you nold trump decency, sir? challenge trump return.se his tax >> i'll bring my return he will bring his return. send t

i'm francine lacqua. let's check on the markets. overall, a lot of these equity markets are a little bit higher. the dollar also tells teh story. i want to show you the msci develop index. after we saw that better-than-expected jobs data on friday, we saw a rally. then, the price of crude, $42. you can see that on the nymex. i want ted to show you something a little bit different. now, let's get straight to the bloomberg first word news. nenjra: the japanese emperor has indicated he is ready to step down. the televised address came weeks after reports that he had expressed a desire to abdicate in the next two years. in the speech, he voiced concerns it would become extremely difficult for him to carry out his duties. >> when i consider my age of over 80, as well as the regularly. in fiscal conditions, despite being healthy at this moment, i have concerns about not being able to fulfill duties . as many as 5 million people attended an anti-coup rally in this dental yesterday. yesterday.bul meanwhile, moody's has left the rating on tu

earlier today, he outlined his case to tom keene and francine lacqua.k at what has happened as a result of the euro, the rigidity it has put in, it took away the interest adjusting,ism for nothing in its place. europe has been well below even the u.s. we were the country from once the crisis began. we have done a better job in recovering. stagnant,asically growth for the last couple of quarters, .3%, .4%. that is not a good performance. what you have to contrast is outcome,g that dismal ,epressions in spain, greece and an alternative. of coarse a divorce will not be easy. but it can be done in a way that is better than the current system. it would still be better if they put in place institutions that work. the question is will they do that? francine: if the euro brits apart, let's say there is something happened to the euro, germany and france want out. how many years of pain? six years of recession before we get into this utopian world you are talking about? ineph: the crisis began 2008. the market, with the euro, is not adjusting well. examples of co

i'm francine lacqua.'s get straight to the bloomberg business flash. >> bhp billiton shares are trading lower as one of the top producers is heading into a criminal investigation into last year's collapse in brazil -- last year's dam collapse in brazil. the company says it ceo will not get its 2016 bonus: the disaster. banks a bank -- deutsche -- the german magazine reported on its website that the considerations were "only of a theoretical nature." officials from deutsche bank declined to comment. europe's biggest concert pretty firm are watching bonuses melts. stocks -- a row in that will pay bonuses in the past few years from barclays, deutsche bank -- has voted to file. the move by pungent shipping -- -- thesy and shipping company may need as much as $1.2 billion in cash to rollover debt in the wake of losses in four of the last five years. francine: france's economy minister has resigned and speculation that he will launch a bid to replace the president francois along -- hollande. >> i presented my -

i am francine lacqua in london. tom keene is in new york.e get to talk more theory. central-bank action. the yen. and oil. tom: it is one of those fridays in august when you look at the big nature and try to stagger into september and 2007. i noticed people really beginning to frame what the hell is going to go on in 2017. no one has a clue. i love the chart john wraith sent in this morning. we'll get to that in a bit. francine: let's get to bloomberg's first word news first. here is taylor riggs. taylor: the u.s. state department is admitting that a cash payment to iran was held as leverage to make sure that they would release american prisoners as promised. this is fueling criticism that this was effectively a ransom. merkelchancellor angela says that conditions to raise sanctions against russia have not been met and sees no reason to lift them. that russia's actions in the ukraine -- thate g-20, china says leaders should ignore territorial -- rising protectionist sentiment in the u.s. and europe. the gathering will take place in an easter

. ♪ francine: i'm francine lacqua in london. this is "the pulse."et's get to the bloomberg business flash with nejra cehic. nejra: ab inbev expects to cut its workforce after its takeover of sab miller as it seeks to maximize savings from the combination of the world's largest brewers. person with a knowledge of the matter, about 5000 positions are likely to be eliminated. vivendi has posted second-quarter earnings that missed analyst estimates. the media company saw adjusted 187income fall 3.1% to million euros. vivendi said it plans to cut costs by 300 million euros. carson block has taken a short position in subdued medical, denouncing the security of its cardiac advice -- cardiac devices. the renowned short seller and founder of research firm muddy waters spoke to bloomberg about the move. >> this appears to be a company that for years has put profits before patients when it comes to cyber security. we think it is important to make sure that users are notified of the risks and to hold them publicly accountable. we think there's a very good chanc

i am francine lacqua. we are getting a little bit of eurozone breaking data.ture of eurozone services, pmi is to 2.9, a touch , because it is slightly better than expected. we were expecting 52.7. 53.2 instead of 52.9. that is better than expected despite that better-than-expected eurozone figure. they are holding off their losses. banks were the biggest decliners. aday, a lot of earnings -- little bit of pressure on the back of commodities. today, banks seem to be the bright spot. you can see the all of the that you can see the index gaining -- you can see the index gaining. pound 133. let's get to the bloomberg first word news with nejra cehic. nejra: after taking accounted for two months, global oil prices are set for a violent reversal upwards. andy hall is telling his investors. in a letter obtained by bloomberg news, hall says oil supply is getting to strength -- is beginning to shrink. donald trump said interest rates set by the federal reserve are inflating the stock market could he recommends holders get out of equities just like he did. in a phone in

i am francine lacqua in london. tom keene in new york.e have a lot of corporate and european political news. it is about currencies and the new zealand central-bank news. when was that, last evening that i saw that? it is wonderful to have holger schmieding with us to go over with that signals. is that a butterfly flapping? is that the phrase you would use? it is not a small deal. francine: we could open it and see more troubles were central banks only looking at new zealand. there is a linkage with currencies. let's get to the bloomberg first word news with taylor riggs. taylor: the white house commenting on donald trump's accusations. the republican candidates as you can blame the white house wreaking havoc in the middle east. is honoringsis president obama. he is the founder of isis. he is the founder of isis. he is the founder. lamed: trump has long president and hillary clinton for creating a power vacuum in iraq that was exploited by the islamic state. forces in libya are close to retaking the islamic state strongholds. there taken

mike wells spoke with francine lacqua on business and brings it.ou have 60% of the groups earnings that are spread based, meaning investing in bonds again teens to clients. there are some accounting noise without question, but as far as. economic value, we are well positioned. francine: in china, you grew double digits. is this the trend? as long as nothing happens with the macroeconomy, it will continue getting higher. mike: it's a key part of our strategy. you have two material elements. yet clients buying insurance for the first time. two thirds of our clients are the first time they had bought a product. it is a key social need. you are giving them protection from health concerns, from savings for children's education, from retirement. similar things that you have seen in the west. in those markets, their competition is delivery. it is getting to first time consumers. detached from financial markets to a great degree. in the more sophisticated markets in the north, you're competing with more sophisticated clients with more assets. you are seein

i'm francine lacqua

desperate to tell is more about it is francine lacqua. -- to tell us more about it is francine lacquacine: he has been on the job for 13 months. we talked about strategy and the challenges. i wanted to get to the bottom of how people were receiving his strategy. if you look at the share price, it has gone down 50%. there is a point when he stopped the interview and he got to share price out and he said look at this, it is on a downward trend. manus: so much it has dropped out of the stoxx 600. francine: he says i cannot have done this on my own because it was on a downward trajectory. when you are in charge, you do need a bit of time. this was part of his defense in saying the second quarter was better than expected. i did a profit but it will be painful and he is trying to do you risk it. -- he is trying to the risk it. manus: ethic a lot of it as well is of the climate. if you think is -- i think a lot of it as well is the climate. they give him time but the market is much less patient in terms of delivery. what were the figures? francine: i was asking him did he studied the job. hi

francine lacqua in london. in new the heat wave york. ow 90 degrees in new york today. not bad. francine, it is hot. calm get to a cool and "first word news" with nejra cehic. nejra: donald trump is going to declare an end to nation building. in a speech in ohio today, he will say that if elected he will give up nationbuilding in favor of a foreign policy that focuses on destroying islamic state and other terrorists organizations. he is also expected to propose a new ideological test for admission to the u.s. in switzerland, a man who attacked passengers on a train with a knife and burning liquid has died. one of his victims also died. police say there is no evidence that he has been tied to extremist groups. there is a second night of unrest in milwaukee, wisconsin, after police killed a man. police say the man who was killed had fled from a traffic stop and then turned toward an officer while holding a gun. a dramatic scene in southern louisiana, where rescuers broke the window of a sinking car to pull out the driver. record flooding ha

francine lacqua is in london. what most interesting day. focus, united kingdom gilts. n mark carney could not find long maturities that he won it to buy. -- that he wanted to buy. tom: part about covers this hour. right now to our bloomberg first word news. here is taylor. politics new bloomberg national poll shows hillary clinton maintaining her lead over donald trump. the survey has clinton leading 50-44 among likely voters. when third-party candidates are included, her league goes close to the margin of error. donald trump was in north carolina when he suggested gun supporters could stop hillary clinton's agenda. hillary wants to essentially abolish the second amendment. by the way, if she gets the pic k, her judges -- nothing you can do, folks. although the second amendment people, maybe there is. i don't know. taylor: the clinton campaign responded quickly, saying that what trump said was dangerous. elizabeth warren said that he makes death threats because he is a pathetic coward. the trump campaign said later that he was referring to the political power of gun sup

i'm francine lacqua. let's get to the markets. but we are getting a little bit of data.his is a picture from eurozone manufacturing for july. the survey was 51.9. we got plus 52. this is the picture for today. you can see banks on the backside of those stress tests a little bit lower. i wanted to show you yen went up -- .34. to four european stocks gaining a touch. let'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 t

. >> on bloomberg surveillance with francine lacqua and tom mccain.wer three weeks wrote to it -- we wrote to a lot of clients. it got misunderstood, but perhaps we should -- but to put conditions in line with other people who typically have a provision that they can charge negative interest rates, which we did not, that was a bureaucratic glitch. short periods of time. you have to protect yourself against a position. you come in in the central bank is charging you. >> are you uneasy with negative rates? he may have to go into negative territory at some point. >> i guess he will search quite a long way to find a banker and is just about negative interest rates. i do not like the idea and i am personally in favor of trying to .ift overtime my concern is negative interest rates set of all kinds of perverse incentives. they also mean the central bank is not really in control. you do not know how the economy will respond. i think what we need to learn tom this is we get used trying to targeted rate that is so low that you might find yourself at the lower

this is bloomberg. ♪ francine: "bloomberg surveillance." with tomcine lacqua keene.dysfunction, probably how you would quantify this week? >> the federal reserve would be two words to sum things up. mike mckee appreciation society really gets the momentum in about 15 minutes time when new -- we bring you that interview. the federal reserve a jackson hole kicks off. 1969, elton friedman, the optimum quantity of money. i hear the tom keene was the ghostwriter for that essay. very important one. helicopter money conversation will be discussed. tom: i am dazzled by your knowledge. jonathan ferro, is rfid becoming like the bank of england? -- is our fed becoming like the bank of england? >> exactly. under greenspan, what were we used to? tom: dissent, francine. francine: it is interesting the way the mpc was put in place. they always have one or two foreigners that sit on the board. tom: adam posen. francine: maybe the fed -- i know some efficient at the moment kind of the present the international voice, but maybe something they should think about. tom: jonathan ferro, t

francine lacqua talked about the challenges ahead with mario monti.: the markets were pretty excited before the vote. it may be after the vote. understoodey have that the fx of brexit -- effects of brexit will be on the real economy. they will take time to materialize. so while there probably will be very serious economic, real economy consequences, for both the u.k. and the 27, it is not a short process. and of the markets do well to focus more on other problems. the problems of the nonperforming banks and so on. francine: speaking of the italian financial system, does the italian finance assist them remain too big to fail and to be to save -- too big to save? mario: the italian financial and banking system do have their problems. yearsave had a number of in which they had considerably less programs -- problems than other banking systems, like germany or spain. now, -- of course, the monte dei paschi siena was a big problem. it was the only occasion in which, during my government in 2011, 2013, the state intervened . for the rest, there was no clear

adam, he spoke with francine lacqua and it says that the demand is rising. about natural gas. gas, we have record high financial indicators, we are burning up a lot of natural gas that is beginning to slow down the climb in the gas inventory. we are generating a lot of electricity from natural gas. and on the oil side but we do have demand on a global -- side, we do have demand on a global basis and we are starting to see the supply and demand rebalance and by the end of the year, going into 2017, i think the oil markets on a global basis will be more balanced. >> we will look at the chart. global oil prices from west texas, down. and of we go with the today moving average. demandell me what the gloom crew gets around? where are they wrong?/ adam: where they are wrong, they are not looking at the supply side. the problem is not demand, it is too much supply. and as that type is off -- tapers off, the saudis cannot go much hyper -- higher. and in libya, things not going very well there. so supply is not growing as much as it was a year ago. with demand contin

i'm francine lacqua. ther in the show, we'll ask lead singer of the iron maiden why he's launching his line in one of africa's smallest countries, coming up in half an hour. first, to your markets, and then we have to look at the currency moves and what dollar-yen is doing. i wanted to show you dollar yen, governor kuroda at 12079. apparently we are seeing news on the housing market and i suggest everyone check out the brexit bulletin. this is the picture overall for stocks. we also have the appointment of the new central bank governor but first, let's get the bloomberg first word news with nara change -- with never a chain which. nejra: paralegal kuroda says there's a good chance that the boj will add to its easing. the bojterview, he says will ask based on discussions of a comprehensive review at the september board meeting. oil is falling after its longest run of gains in four years as iraq looks to increase exports amid the global supply glut. the country says it will boost crude shipments in the next

i'm francine lacqua. we have a great show lined up for you today. joining us today is the global chief economist janet henry. we will be talking about the fed, the boj, negative rates, and everything in between. this is a picture of european stocks climbing. the outlook is thinkin the dollar.the for three times since the brexit though, we have touched 100. of the straight to the bloomberg first word news. france's unemployment rate fell to 9.9% in second quarter, which will help francois hollande keep his promise to drop joblessness before the next election. this is the 10th consecutive month of shipments falling from japan. they continue drop highlights difficulty kickstarting the japanese growth. chinese home price gains have culled for the month of july. versusrose in 51 cities, 55 in june. australia's jobless rate fell from 5.8% to 5.7%. the aussi dollar gained. two u.s. swimmers were taken off of a plane in rio yesterday in an as leading to see local police about a reported armed robbery. they were removed from the flight by brazilian authoriti

oliver: i was mike wells eking exclusively with francine lacqua.the inventory released earlier today . should have been bullish for inventory prices but it was not. julie hyman will explain in the mystery chart. this is bloomberg. ♪ scarlet: this is bloomberg markets. i am scarlet fu. going out to our markets desk for julie hyman has more on the mystery charts today. julie: that chart looked at gasoline demand, which is now at a record. think that would be good for crude oil. if there is all of this demand theresoline, that implies is a demand for gasoline as well. at the same time, we heard this talk pile so. at have this gasoline demand an all-time high. yet gasoline is lower today. you have crude oil inventories unexpectedly rising. this is just a weekly change in inventory. the third straight week of gains syria 1.0 6 million barrels for the past week. the overalltime, level of inventories. this is a seasonal chart. here is this year compared to where we are seasonally and other years. still running 100 million barrels about where we typically