francine lacqua in london. tom keene in new york. mberg. ♪ francine: this is "bloomberg surveillance." i'm francine lacqua, in london. tom keene is in new york. before we talk about banks, let's get to the other businesses we follow. >> the new iphone 7 went on sale today. many of those who show up to apple stores may walk away empty-handed. that's because apple hasn't made enough phones to meet demand. customers who preorder iphone 7 plus will not be able to buy them today. honest company, the company cofounded by actress jessica alba. they are discussing a deal in the $1 billion range, substantially less than the $1.7 billion valuation in a round of funding last year. deutsche bank is not backing down. the german lender says it will not pay the $14 billion that prosecutors want to settle claims. deutsche bank says negotiations are just beginning. a materially lower amount. shares of deutsche bank are lower today. that's the "bloomberg business flash." francine: let's bring in michael moore. he leads are financed team for rloomberg n

strasbourg, france, our francine lacqua. francine? tom, we have an important interview with the commissioner for immigration and former mayor of athens. he is commissioner, thank you so much for joining us. we heard from president yunger. he seems to have a stance on migration. is this the new commission? do they want to soften their stance on forcing countries to take in refugees? >> no. we tried to get the states to be part of our managing this. and they are on the top of our agenda. i believe the president has a he nger speefment he was -- is giving answer to all these extension problems in europe and focused a lot of migration as you correctly said before. but as far as this we are hearing, they are good and there and the only way to address this issue in a more efficient way. the allocation -- and all other states should show more solidarity among them. francine: of course the e.u. and turkey agreement shut down a popular migration route. foote implementation is at risk if they do not receive this idea? >> i was in europe last ye

francine lacqua in frankfurt.to the no silver bullets according to francine lacqua. but it btw i. -- put up bcw i. the personification of political risk diverging. there is the euro, 1%. there is a great big golf that can be traveled in politics unfold in europe. how susceptible is the euro? jon: i think the euro is doing quite well for a couple of reasons. the premier reason was less weeks's ecb when you are seeing ecb admitting practical limits of qe. they cannot do more. it is trying to cry out for the fiscal side. the political risks are there longer-term we are seeing those on rolling in 2017. there's a gap. there is long-term political risk. the elections early next year. for now, the markets are not treating the euro is a risky instrument. it seems a safe haven. anna: what about the risks around the fiscal story? we've heard from many central banks around trying to hand the bat on from central bankers to fiscal actors and persuade the government to do more could what appetite is there in europe to do more?

i am francine lacqua in london. michael mckee and is in new york. y johnson joins us, joined by kim clark. thank you francine. we have the ecb debating what is happening with the european economy. everybody is thinking what is happening with the fed right now. tim clark has as good an idea as anybody else. >> is it tough? it is getting a little tougher. the global economy is patchy. we see often, gdp developing in africa so we have to deal with that. that is not to say people are not still traveling in airplanes but they are paying less. we just have to tough out the times. activity terrorism that dampened demand for a traditional east-west movement, they tended to go north-south. global super connectors, we are having to deal with the economy. -- a dollar that can be affected by the fed, what are your calculations? >> because we are a dollar-based company, the stronger the dollar, the worst it becomes for us because our income generation is in other currency. moretronger he gets the difficult it is to get the value out of the currencies. it is a dou

with francine lacqua, in what i hope is a very cool london. francine: it is.'s get to the first word news. sebastian: european antitrust regulators have stopped there look into dupont and dow chemical. the deal is the largest ever in the chemical industry. $185 million will be paid to end claims at wells fargo. south korean exporters hurt by the collapse of the shipping line are getting a break. the country's second largest will send a vessel to los angeles today, filled with goods from companies such as samsung and lg. bloomberg's business flash. francine: thank you so much. much for fiscal policy to be the cure-all. that is the view of steven major. yields have been dropping. since we had the new qe from the boe. what happens to gilt? started thisve recent move from an overextended position. guilt yields got way too low. they were down to 0.5%. we are now on the way back to 1%. we have not changed it up on the yield forecast. it has proven to be quite durable. at the start of the year, the yields were much higher and then they went through our target and now

francine lacqua in london, tom keene in new york. is is bloomberg. ♪ francine: this is bloomberg "surveillance." francine lacqua in london, tom keene in new york. black rock issuing a warning on treasuries as the fed moves towards a hike. blackrock think so, no one else think so. we are back with nandini ramakrishnan. the problem is when you look at what janet yellen wants to do or what she is trying to do or can do, it is modeled. we were promised for hikes and now we might not even be looking at one. nandini: let's keep one on the table. francine: just about. nandini: the data has been ok. they do have a deep enough case to hike. we will have to see the election results. if that really messes up the markets they may pull back. i think the article that everyone is reading is correct. there is a lot of duration risk across the world. given all these risks, where do you place your money? we are talking a little bit about getting higher yield. we like assets such as european high-yield bonds, a little bit of end selectively to get boost

in new york as well, francine lacqua. francine: it is fun.d. ,heresa may is here in new york as prime minister. we are getting headlines talking about brexit. tom: what is the chancellor saying? francine: that he feels he has the tools necessary to support the economy, and the underlying strength in the uk will support growth this year. tom: everyone talking their book in new york. our first word news. here is taylor riggs. the bank of japan has shifted the focus of this monetary stimulus program. the central bank says it will move away from its target for expanding the monetary supply. it introduced a zero interest rate target to fight against inflation. it is another sign of how the presidential race has fractured traditional voting blocs. according to a poll, high income voters are narrowly supporting democratic candidate hillary clinton, who leads don't 46% to hillarygst house -- clinton -- terrorism charges haven't filed against the man accused of setting off bombs in new york and new jersey. a criminal complaint says ahmad khan rahami p

with me, francine lacqua in london. when do the kids go back to school? depends, public school, private school, the french go earlier. but i would safely say worldwide, this week. tom: today, the wednesday after labor day, is sort of when you talk about. that was great on textbooks, what we did last hour with the people from pearson. francine: it was fun. tom: i learned a lot. here is first word news with taylor raikes. taylor: u.s. government's agreement with state prosecution is in danger of falling apart. prosecutors are considering a criminal charge against the unit of hsbc related to its conduct on its foreign exchange. hsbc has been on probation since 2012, that is when it admitted to helping mexican drug cartels laundering money. if hsbc broke the law, it could be held accountable for those actions several years ago. the bank is not commenting. in the u.k., philip hammond meets with central bankers to discuss the government's brexit plan. prime minister to resume is getting -- theresa may is getting pressure from banks to strike a deal before forma

i am francine lacqua.e have a great show lined up. former boe member, charles goodhart. we will get on to the boe, brexit and the fed. first things first. let's check in on these markets. after five days of losses, european stocks are swinging a touch. they are now down from 0.1%. 1.5%.cks down we did see quite a lot of movement in the last five days. dollar rising. oil holding, i wanted to show you the swiss franc versus the euro, 109.56. -- 1.0 956. let's get to the bloomberg first .ord news with nejra cehic nejra: hillary clinton has released a comprehensive disclosure about her health. it says she is recovering from pneumonia and all of her vital signs are normal. her condition became a potential election issue when she appeared to need help entering a car on sunday. the clinton campaign has criticized donald trump's disclosure about his own health. he went on daytime tv to provide a vague view of his physical condition. the u.k. government has approved a plan to build two nuclear reactors for 18 billi

live from bloomberg's european headquarters in london, i'm francine lacqua.german factory orders increased less than forecast in july. orders adjusted for seasonal swings and inflation rose 0.2% from june. the report follows a series of data signaling that economic momentum in europe's largest economy has cooled. bayer has upped it bid for monsanto as they are prepared to offer $127 $.50 per share. if the deal goes through it would create the world's biggest producer of seeds and pesticides. in july, monsanto rejected the bid saying it was inadequate. barack obama has canceled a meeting with the president of the philippines after rodrigo duterte unleashed an expletive later of warning against the morningexpletive laden against the u.s. obama and to meet offered him some blunt advice. >> i am a president of a sovereign state and we have long ceased to be a colony. any master except the filipino people. nobody, but nobody. you must be respectful. --not nejra: global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. ce

tom keene is in new york, im francine lacqua in london. said we do not have a good landscape. the worstandscape is in london. what else do i need to say besides the walkie-talkie? francine: i quite like it. oneead of talking economics day we are going to two or all of the london monuments. let's get up to speed with corporate news. taylor: bayer has increased its bid for monsanto a second time to about $56 billion. the have been in advanced talks for what would be the biggest agriculture related takeover ever. evaluatingys it is the offer along with proposals from other parties. struggling. the company filed for receivership last week. needs money tone pay fuel bills and for port operators to unload cargo. apple unveils its newest iphone tomorrow. unlikely to have any breakthrough features that marked earlier models. iphones made up almost two thirds of apple's revenue and iphone sales have been falling. that is your bloomberg business flash. gene munster will join us to pick up the debris after the announcement on thursday. i will be buyin

i'm francine lacqua in london with

i am francine lacqua. we have a great show lined up. joining us, the chief investment officer guy months in. the first we bring you an interview with the nissan chairman, coming up in a few moments. first, to the markets. stocks rallying in europe and asia after yesterday's surprise announcement of an opec deal to cut crude outputs for the first time since 2008. that triggered the biggest jump in five months. india shares up, currency and bonds falling. india shares are having an impact after they attacked terrorist targets in pakistan. we saw a little bit of movement in the yen on the back of what governor kuroda said. now let's get straight to the first word news with nejra cehic. nejra: oil has stabilized after opec agreed to reduce production for the first time in eight years, surprising traders who had expected lenders to maintain output. crude surged yesterday after opec agreed to cut production to a range of 32.5 million barrels per day. the committee will recommend limits in november with their ran exempt. stocks in india and th

francine lacqua in london. s get to the bloomberg business flash. sebastian: and former is expanding its presence in the u.s. they will tone information services. billion. was $1.6 they are midocean partners. apple is not disclosing how many apple iphone 7 it sold, but they are saying it sold out. there will not be any available for walk in customers. it could not be happier with the initial response. faces a global antitrust review of its takeover of monsanto. it would create the world's largest seed and crop maker. bayer and monsanto do not expect to close the deal until the end of next year. francine: thank you, seb. equities, a five-day slide. investors trying to decide if the $2 trillion stockpiles have gone too far. let's discuss markets and volatility. with us is andrew sentance and bob michele. bob, let's get to you. we have seen the markets in a tailspin? it is unclear why. we knew that monetary policy -- bob: i think the central bankers were concerned about the complacency in the market. they got what

i'm francine lacqua, she is tom keene. i think i messed that up. when we have the news flow we have. tell me the importance of the commerzbank headlines. francine: you need to focus on european stocks. commerzbank is huge because it plans to cut jobs. it was expected, but they are also suspending the dividend for the moment. this is also a time to take stock of the broader conversations related to the negative rates. mario draghi really pushed back, he almost took offense. tom: this is must watch for everyone in global markets -- in global wall street markets. what a perfect timing with the banking turmoil. here is taylor riggs. taylor: india attacked terrorist camps overnight inflicting heavy casualties on militants who had been assembled to infiltrate india. are over ands india says no more are planned, that it was an intelligent -- that -- that it was in retaliation for an attack on indian forces on the border. congress has passed a spending bill that averts a u.s. government shutdown. the measure will pay for flood damage in several states. demo

i am francine lacqua with tom keene.erviewn with an with the brazilian president for the first time attending the u.n. general assembly. here is michel temer. >> we are setting a ceiling of government funding -- spending that may be renewed based upon so previous year's inflation i'm certain that we will be able to pass that measure before the end of this year. the other reform is the social security/pension reform which will be submitted to congress this year but will certainly be passed next year, the first half of next year. francine: it was a most interesting conversation. he inherited a country on the brink of recession and his main message is because he does not have any political ambitions, he can push through the reforms needed. tom: they have some challenges, to say the least. dollar-real, the rally in green and we are nowhere near that. as you say, he inherited this and he has to pick up the pieces. onncine: he inherited this august 31 after the impeachment of his predecessor and he says he does not have any po

i'm francine lacqua. we will speak to the evernote ceo and former google executive, christopher o'neill, about tech, productivity, and more. later, our weekly show, "brexit: what's next" ringing you all the news, analysis, and conversations around the vote to leave the eu. today we speak to the japanese ambassador to the u.k. first, let's check on the markets. we have quite a lot going on because a lot of global stocks are looking at what the ecb said yesterday. bonds also deepening in terms of the selloff after signs that central banks in new york and japan are starting to question the benefits of further monetary easing. south korean assets dropping following this nuclear weapons test in north korea. let's get to the bloomberg first word news with nejra cehic. nejra: north korea has confirmed that it conducted its fifth nuclear test on the anniversary of the nation's founding. south korean president park has strongly condemned the latest provocation from kim jong-un owns isolated regime and warns its ac

. ♪ francine: this is the pulse and francine lacqua.'s get to bloomberg business flash with nejra cehic nejra: german chemical america has agreed -- german chemical maker has agreed to buy -- in cash. it said it would pay $33.50 per share for cancer a. that is a 90% premium on his friday close. it would add to its flame retardants. three brexit vote has quarters of ceos saying there would move their operations to outside the u.k. at the same time, 69% said they are confident britain's economy will continue to grow over the next year. itshe investment has closed singapore trading desk as a part of the global sake up -- global shakeup. one of the people said the 11 billion hedge fund will maintain stock in the city state focusing on quantitive research. the move comes after two dismissed part of its workforce. francine: european markets lower this morning. let's head to the bloomberg with mark barton for your asset check. mark: after the biggest weekly gain since mid-july, this selloff we are seeing today. every single industry group on t

i am francine lacqua in london. the "bloomberg's newsflash" with taylor riggs. taylor: the yahoo! data breach was worse than originally reported. the company says a hacker sold personal information of 500 million yahoo! users two years ago. yahoo! was tipped off in july when it received a report that a hacker with selling credentials on the black market. yahoo! is notifying those affected. facebook admits it has been telling advertisers users were spending more time watching videos than they actually were, which may have artificially boosted market spending on popular products. the error has been fixed and advertisers have been formed -- have been informed. that is your "bloomberg business/." tom: there are moments when the wind shifts. bring up the chart. i am sorry, francine, if this goes to the sky. i do not think it will get there. it will be interesting to see where facebook is in five years. this video-counting issue is a huge deal for digital media. with anublicists overestimation of 60% to 80% on video. this

guy: francine, keep listening. hascine lacquaurg the ecb president delivers his annual state of the union. what the objective here? francine is laying out what is being said, some of the ideas that surrounded. the managing director for the eurasia group is with us. what is he trying to do today? >> a number of things. the first is a recognition that the member states are divided in the aftermath of brexit, and he sees an opportunity to advance the commission off agenda and interest, which is to push for federal response to brexit. the, i don't think commission with mind and the u.k. ended up with a heart brexit, which is a clear signal that you shouldn't play with populism, because if you do, the consequences will be material. guy: where does the balance of power lie at the moment? you look to the germans and get the sense that is not their objective, but nevertheless the institutions of the european union sitting there at number are bothe commission, very hostile to the u.k. >> i agree. i think the commission definitely has a lo

i'm francine lacqua. friday, we round up the news, analysis, and conversations that will make you smarter about what is next for britain and europe. let's get you some of the brexit news with nejra cehic. nejra: the bank of england kept its key interest rate at a record low of 0.25%. policymakers indicated there's still a chance of another rate cut this year as they assess the potential longer-term fallout from britain's decision to leave the union. the u.k. unemployment rate stayed at an 11-year low as the economy added jobs. that is according to figures in the office for national statistics. unemployment fell to 1.6 3 million, leaving the jobless rate at 4.9%. the leader of the u.k. opposition labor party says norway offers britain lessons as it prepares to leave the union. jeremy corbyn said he's sending his foreign affairs spokeswoman to oslo to examine how officials there manage relations with the eu. norway is in the area, giving it access to the single market, but is not in the eu itself. >> it doe

i am francine lacqua, with tom keene in new york.will not split into two separate companies at this time. it was about three months ago that pfizer will not make a decision on this by the end of the year. chiefst time the executive officer spoke about this was back in august, at at the time he said they are mulling whether the drug giant is better together or apart. at the time he said there was no wrong answer. this is a company that was going through m&a. today they say with a will not -- they will not pursue a company split. tom: the end stronger at 100 and 40 -- at 100.40. this is a proxy for debate dynamics that we will see tonight. we digress this morning to what you observed yesterday -- down in flames, the jets. crushing the philadelphia eagles 3-0. i cannot figure it out. o'neill, theott bravest person in sports. what do you do when you take on the philadelphia 76ers and the resurgent new jersey devils? he drags along gregory richardson, who has experience in gaming as well. i know you are working full-time on the real world

with me, francine lacqua from london. what an end to the month of september. thoughts about william kenny's article from "bloomberg london" yesterday afternoon. francine: with the concerns surrounding deutsche bank, we cannot be inflammatory, we have to be careful. the market is nervous, and that translates into what we are seeing overall for the markets. what was set to be the best quarter this year is ending on a sour note because we are concerned about the financial health of german lenders. tom: michael moore will be with us in moments with professor buiter. taylor: in jerusalem, they are saying goodbye to former israeli prime minister shimon peres, who died this week. he was 93. the won the nobel peace prize for helping negotiate a historic peace treaty with the palestinians. president obama was among the dozen world leaders -- the dozens of world leaders attending. pres. obama: i could not be more honored to be in jerusalem to say farewell to my friend shimon peres, who showed us that are at the hope heart of an idea. taylor: shimon peres will be there n

i am francine lacqua with tom keene. here's taylor riggs.illich of the danish conglomerate -- taylor: the danish krone garment merck will split up. merck fired its ceo in june and considered -- the company says its energy unit will focus on strengthening position in the north sea. his chiefplaced financial officer. smith who isavid leaving rolls-royce. the company has been cutting costs because of the falling demand for engines powering jets. that is your bloomberg business flash. francine: let's take a look at brexit and the battle over london's role and euro clearing. london could be stripped of its ability to clear euro done nominated slumps after britain leaves the eu. the clearing of $570 billion of euro. let's get more from john the tree -- john detrixhe from berlin. what does it mean for the rest of the health of the city of london? john: that is the key question. the way people seem to be looking at this, our colleague gavin was talking to an executive about this. people are looking closely at what changes after brexit. what happens

i'm francine lacqua.riday, we round up the news, analysis, and conversation about what is next for britain in europe. this is "brexit: what's next." the u.k. factory activity unexpectedly hit a 10-month high in august as the weaker pound helped manufacturing bounce back from post-brexit slump. markets pmi jumped. the median estimate was for a reading of 49. theresa may has set out the first of her red lines for brexit negotiations. the free to end movement of people coming to britain from the european union, suggesting she's willing to leave the single market to do so. officials also said they won a bespoke deal, rather than one such as countries like norway and switzerland. a deal would seek to preserve passporting, the ability of banks to freely sell services of products beyond the end negotiations. sentiment among u.k. executives have regained after the shock. that is according to a new survey. the index increased to 109.7 in august, bolstered the increased exports and manufacturing. the weaker pound n

i will point out francine lacqua plus interviews that you will see. we will be -- i can't member who is talking to him. mike: it's almost time for hockey season. talking about the fact that people can't make money at higher interest rates, is it going to slow the economy or bad additional capital investment to the economy? julian: higher interest rates are going to encourage savings. i think we desperately need savings. take a guy who wants to set up a little foundation or something widow or something. they don't know what to do with the money. way they can do anything with it unless they going to stop. i think that is forced equity investing and it's just not a good thing. to be distinct here, the bubble or assumed level that you see in equities is very different from the nifty 50 europe decades ago. is that right? julian: yes. those stocks sort of love because they went so high. but the ones that would have been 50-50 are very cheap. tom: who do you blame for this mess? the courage seen by a lot of officials, maybe they were wrong do you blame somet

spokeeek, francine lacqua with the regulator whose commission made the decision. ed about u.s. tech companies that could be under scrutiny. francine: the commissioner is looking at online platforms. do you see problems in the way google or uber operate? >> have three cases. -- >> we have a number of google cases. three by now. in europe you are more than welcome to be successful and we will applaud you all the way. if you start to misuse your dominant position to prevent others from having the same flight to success, then we get concerned. that is the example of the google case. we think google is misusing the dominant position to promote itself, to stay where they are, and not to allow other people to compete with them in a fair way. uber?ne: what about >> we are looking at that with my colleague for transportation. and my colleague for single market. on the one hand, it's great innovation. it is a better use of resources. on the other hand, there are issues comparing with traditional transportation, taxis, that kind of thing. francine: you're looking at the faceb

i'm francine lacqua. where just getting breaking news out of the eurozone. september manufacturing, pmi rising a little bit more than forecast. if you break it down, it is september, so it is the first measurement. manufacturing better than expected. services pmi actually worse than expected. 52.1, a pmi falling to 5 forecast of2.8. -- forecast at 52.8. in germany we had contrasting data over the last couple weeks. let's have a look at the impact on the euro. there you go. 64.o-british pound, 86.0 not that much new. economists -- are trying to figure out where this is coming from from the services side. we bring our weekly show, brexit , what's next, with conversations around the u.k.'s vote to leave the e.u. we speak to stephen lansdown, lansdown.ded any key brexit supporter. first, as quickly check on the markets. markets, i would say the rebound touch.ring out a dollar halting some of the gains. it is all about the central bank and the volatility up. we will have plenty more on the markets. let's get the first word news. yahoo! says the personal details o

mark: that was unilever chief executive paul polman speaking with francine lacqua.onnie: tonight bloomberg premieres a big series, big problems, big thinkers. hear from a series of leaders including ted turner and madeleine albright. they will focus on global climate change. here's a sneak peek. >> prosperity can work to solve .he population problem the data show that prosperous countries tend to hit replacement rates were slightly below when people do not think of their children as being their social security. if you think you need seven kids because five are going to die and you need the remaining two to take care of you, he will stay as fast as you can, but is countries have become more prosperous the fertility rate has gone down significantly. vonnie: get our first edition of thinkers," at big 8:00 p.m. eastern. ♪ vonnie: live from london and new york, i am vonnie quinn. mark: i am mark barton. this is the european close on "bloomberg markets." nine minutes left of the european equity session. luxury goods taking a big hit. you can see the shares falling today.

i am francine lacqua let's get straight to the bloomberg first word news.: syria's foreign minister has said and internationally brokered cease-fire is still viable. opposition activists say more than 200 civilians have been killed in the past week under a sustained aerial campaign. mario draghi says european banks have profitability problems and one of the problems is overcapacity. he suggested consolidation in the sector would be an important move and he spoke to lawmakers about how to spur growth in the region. >> for the euro area to try actions are needed to unleash growth, reduce unemployment, and offer essential protections for the most vulnerable. italy's prime minister has picked december 4 for a referendum on conference test constitutional changes. it will seal his political fate. his push for the mother of all reforms is being closely watched as it seesl markets political instability in the eurozone's biggest economy -- third-biggest economy. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am

i'm francine lacqua. we have a great show lined up. at 9:30, we have our weekly show " brexit, what's next?" now, we speak to the italian ambassador to the u.k.. does renzi's referendum also pose the same risk as the brexit vote? then we bring you a panel discussion. post-brexite latest data. first, to the markets. we are getting breaking news out of deutsche bank. deutschenderstand the bank ceo speaking to employees. this is why we are looking at deutsche bank. 7%.all down we had this great new story yesterday saying that deutsche bank clients are set to reduce some of the collaterals on trade. the ceo writing to employees saying that market forces are harming confidence and banks overall. rdlyainly investors are ha confident in the markets. crude oil 47.15. the volatility index gaining 6.3%. let's get straight to the first word news. marcus: thank you very much. japanese consumer prices feel fo -- fell for s ixth straight month in august. a rise in industrial production points to modest third quarter gr

this week, francine lacqua spoke with the regulator whose commission made that decision. ked about other u.s. tech companies that could be under scrutiny. francine: the commissioner is also looking at online platforms. do you see antitrust problems in the way companies like google or uber operate? >> we have a number of google cases, actually three by now. because in europe, you are more than welcome to be successful and grow, and we will applaud you all the way. but the thing is, if you start to misuse your dominant position to prevent others from having the same fight for success, then we get concerned. that is the example of the google case. we think google is misusing the dominant position to promote itself, to stay where they are, and not to allow for others to compete with them in a fair way. francine: what about uber? >> uber is in between things. we are looking at it with my colleague for transportation and my colleague responsible for single markets. on the one hand, it's great innovation. it is a better use of resources. on the other hand, there are issues compar

i want to cross over to francine lacqua.e now speaking to the vice president of the commission. charged with revising jobs -- reviving jobs across the european union. union isthe european going through a nexus tension crisis. thank you for making the time to speak to bloomberg. what is the existential question the european union should be asking itself? if you are in asia today what should they be asking of europe? >> i visited the united states just a few months ago and i heard several same questions which was whether europe will be more or less in the credit than in the moment. when listening our stakeholders expectations they expect europe to be more united and in the credit. francine: smaller? >> i don't think so. we all know written will lead the eu. we have all seen very strong want to stay in the union. listening what our member states are asking us to do. do something to create the energy market. do something to strengthen defense cooperation. better external border control. our stakeholders are asking for further in

eu competition commissioner speaking to francine lacqua. still with me is alex who covers apple.r a lot of ground. i want to focus in on google specifically. google has multiple challenges facing them in europe. they are not happy about it. businessese's aggregating content. you go to google to look up a news story and it shows you a news results. you go to youtube to find a video, it will give you those results. the problem is a lot of the way a lot of songs sneak into google youtube results for example and there is no sort of commission paid to the office and that, as far as the european commission is concerned isn't fair. i am sure there are things you looked up and says you cannot find a song initially because it says for rights reasons it cannot be here and you look deeper and it is on the second or third page. there is stuff always sneaking in. they are proposing a law that the parliament would have to vote on which would mean google have to police every single video to check if there is content which contravenes rights rules. they are saying this is completely unfeasible.

francine lacqua will be talking about the bank of england and brexit. stick with us. g. ♪ francine: roller coaster or to slower after a five day selloff. eight years after the lehman collapse are product makers running out -- the bank of england is expected to hold rates. hillary's recovery. willie doctors note bill enough just will a doctors note be enough to put her back on the campaign trail -- will a doctors note be enough to put her back on the campaign trail? ♪ francine: welcome to "the pulse." i am francine lacqua. we have a great show lined up. joining us

with me, francine lacqua.insurance company at the date is the second-largest insurer in the uk and one of the biggest provider in europe with around 33 million customers and 319 billion pounds of assets. mark wilson is the ceo. raised and educated in new zealand, spent a good part of his career in asia where he let the pan asian and sure -- insurer aia. when the parent company collapsed, aia survived with wilson and became the aviva ceo and 2013 as -- and has improved cash flow, could cause come and strengthen the balance sheet. i am delighted and looking forward to hearing your story. you have been any business for a long time, what was the most stressful moment? mark: it does seem like a long time. -- the one that sticks out is the day aig collapsed come in asia, people like you outside the window, cameras in outside -- cr se ews outside. you had regulators, governments, do?omers, what do you francine: what did you do? it was early morning. you realized this was happening. who was the first person you called

this is bloomberg surveillance from our world headquarters in new york and francine lacqua in london.ordinary day. vladimir putin on brexit in europe was fascinating. francine: you have to have a smile when you hear vladimir trump andting donald hillary clinton on shock tactics. john mickelthwait had that interview with mr. newton. -- mr. vladimir putin. now saying that russia and the u.s. are close to a deal on syria. tom: john mickelthwait is in the surveillance time out chair. the last question -- will open a be the samevechkin hockey player? monday ofogramming on his conversation with the president of russia. now, with more, and our first world news. that interview, economic sanctions are limiting trade between russia and the u.s. and the eu. now he is looking towards china. spoke with president john mickelthwait in an exclusive interview. >> we have reached a new level of preparation. we are working on a joint space program. we are working together on a helicopter. we're working on an airplane. we are cooperating on machine building and high-speed rail. timber processing and a at

i am francine lacqua in london and tom keene in new york.om: michael mckee turning over to a no denver broncos. also watching the presidential race. there is a real new wants. michael: donald trump had by what conventional measures would call a bad weekend. his economic plan widely panned. joe stiglitz giving him an f on economics. no surprise there. it is an adult. that's it doesn't add up. -- it doesn't add up. his trade plan would cost 4 million jobs. friday he had a news conference which he used for an advertisement for his washington hotel. and then the whole thing when he reversed himself saying he lied about obama and the birth of thing. then friday he went out and said this arm hillary clinton's secret service. tom: is he running this campaign? or is he running to these two key officials? it there is no question he is running his campaign but they seem to be setting off his rough edges. a week from the today -- only from today, the debate is going to set the stage. tom: michael mckee with a quick update on the campaign. it is histori

the finance minister described the growth rate to francine lacqua.n't decided on for next year. context of the competitiveness factor. the good news for the finnish year's economic growth is now expected to be positive 1.1% according to the ministry of finance. , the bank released its forecast for 1% growth, double thatreviously expected -- is not brilliant, but it shows structural stagnation is beginning to be over. -- it isrning the page not easy, but we have consensus that we have to restore our competitiveness. in thesame time, invest sectors with more potential for future growth. francine: item has a question. -- adam has a question. you see the issues in that context of tax competition or regulatory competition? ollie: excessive competition would not be beneficial for europe. it's important that we don't overtax our companies. in finland, we've done some improve our taxation. that will lead to results for the whole of europe. would hope thei u.k. government would not try to enter into a race of tax competition. mark: finland's economy minister

satceo of credit suisse down with francine lacqua earlier in london and discussed everything from brexito bank consolidation and capital concerns. tidjane: under most foreseeable scenarios, we don't need to risk capital -- that would not be wise. level.at a comfortable there was a lot of debate last year over whether we should sitting at 11.8 today, i felt it was the right decision. when i want to provoke, i say i'm not smart enough to run the bank at 10%. you need to have perfect knowledge of the future and perfect execution and i have neither. it's good to have a buffer is you can operate and manage. we sell too close to the wind -- francine: do we need consolidation in european bank industry. i was interested by mario draghi's comments saying there were too many banks in europe. look at wells fargo and bank of america and jpmorgan, i was involved in one of the largest mergers in america and those banks have been created largely through mergers. costs, extrapolate synergies and cost cutting is very significant and you create a more diversified, more stable organization. the differentia

francine lacqua is at the european parliament. .cine, how much has juncker said about brexit today? francine: he has touched on brexit. he reminded everyone the same political line that there will be no cherry picking. this is not an a la carte menu that they cannot decide to curb immigration and have access to the single market. this the first time that jean-claude juncker and just parliament post-brexit. -- juncker addressed parliament post-brexit. he is trying to regain a little bit of credibility by saying i am sad, this is not the end of the world, but it is an introspection. markets very much on the frailties of europe, on the fact that it is an existential question on whether the european union wants to integrate more or whether it disintegrates. he is very cautious. he talked a little bit about brexit. he reminded article 50 is not triggered yet. he says again, the eu will stay together, but it was not as optimistic as i thought it would be he was very cautious. mark: did he say anything about fiscal spending? francine: he

i'm francine lacqua. let's get to bloomberg business flash with nejra cehic.ra: australia's stock market was hit by a series of glitches. traded started more than hour late. i was followed by two for the outages after investors were unable to why some shares. issues come as markets are braced for u.s. and japan's central banking -- lehman ceo says the geopolitical term of its could -- geopolitical turbulence could crimp orders and 2016. after --e everyone is maximus capital spending. there is a lot of uncertainty basically -- the geopolitical titans of the world. 2017 will be another complicated year. are upnoble group shares after the commodities trader says it is seeking an investor is on track to raise $2 billion and also warned it could be another two years before return to profit. in number of factors including a commodity rout, a second-quarter loss have caused the company shares to slump. that is the bloomberg business flash. francine: thank you so much. oil is on the rise. it has rebounded. that is after clashes in libya halted what would be the first

i am francine lacqua in new york with tom keene. we talked about the bank -- the bank of

. ♪ mark: the investment vehicle led is dying ford european investment banks -- francine lacqua askedd about whether banks are on a stronger footing than the financial crisis 10 years ago. >> we under appreciate what paulson did in the u.s. eight years ago. by forcing the big banks to take a lot of equity, he took aw ay any stigma. everyone took capital. he said it's your problem to figure out how to get the loans to market and liquidate it off your balance sheet. until you do, i will not let you pay dividends or pay back your equity. we are still resolving nonperforming loans, still resolving credit provisions, chargessolving legal that have been apparent to many of these institutions 5, 6, 7, 8 years ago. the big u.s. banks are put at a competitive advantage. francine: why are we still seeing fines? leaders,the political the elected officials still fear too big to fail. they still fear too complex to manage. the larger interconnected banks will get buffer upon buffer upon buffer of capital, more and more fines, separation of risk from deposits and this will continue as far out as we

francine lacqua ticking off the conversation with adam pozen. g. ♪ francine: the austrian central bank to deserve this ammunition of -- ahead of the fed decision later this month. third time lucky for bayer. the german company sweetening its bid for monsanto. where is the brexit plan? britain grapples to answer the question. we speak to former eu commissioner. ♪ francine: welcome to the pulse, live from bloomberg's european headquarts.

for us we will have the deputy governor not just at the event in bloomberg but also speaking to francine lacqua, who is not in this seat today, but don't worry, she will be back tomorrow. we have got the audio back. thanks for your patience. >> for aligning with us to bring you today's program. i you look back at 2016, think we can all agree it is one of those years that has changed a lot. you have the people of britain voting for better or worse to exit the european union. you have the world's central banks steering monetary policy terr harted itory. we have a constitutional referendum in italy coming up. and leicester halfway to winning the champions league. taking the stage are representatives from the commodities and technologies industry and of course finance. these people are making daily decisions about what matters and what affects the lives of pretty much everybody everywhere. on that note, i'm especially pleased to introduce our first speaker. a she is a respected international economist, currently serving as what is the deputy governors of the bank of englandwhere she helped shape po

francine lacqua asked mark wilson if the firm has an overall contingency plan. >> i think what we needrnment is a certainty of timeframe. i think it is entirely appropriate they have not invoked article 50 yet. we need to take some time, take a deep breath, sort out what the plan is. we don't have to sort out all the answers, but the answers will be different for different industries. i am impressed by the fact we have got a new prime minister, we have got new people in place. markets crave certainty, don't they? i hoping and we will get that over the coming months. francine: are you worried london will stop being one of the financial capitals of the world? >> know, the reality is london is the home of areas like insurance. london has got great labor laws, it is a great place to live, it has got all the systems. trying to unwind all of that, i think, is a pretty tall order. caroline: a tall order you want to be digging into more. the full interview is in the latest edition of "leaders with lacqua," one you don't want to miss. guy: you certainly do not. but we are going to focus on the