francine: socialist hardliner jeremy corbyn is expected to sweep the victory. you on the program . you wrote a great piece on the website. put into context what exactly corbynomics is. >> it is a return to old labor. it is a return to a commitment to state ownership of industry. one of the things jeremy corbyn is hinting he will advocate is re-nationalizing the railways. it is also a return to the old-fashioned activist campaign politics. blair.or pre-tony this was the labor many thought was unelectable in the 1980's. that is the debate. manus: let's talk a little bit about his popularity. the demographics are interesting. he is really the dark horse that has come forward. where is the appeal coming from? >> what you have got to look at is why did ed miliband lose so badly in the election? this is a party that has lost its way. many of his supporters do not know what labour party stands for anymore. they don't feel there is a strong leader in waiting of the more conventional candidates. they are looking for someone who does not wear suits, who expresses opinion

bank of england, and then that intrinsically gets caught into a load of personal opinions about jeremy corbynjoe: do you think that he and trump are part of this new phenomenon? >> jeremy himself, it shows how politics can make us all stupid. we saw the sky as the basically the ringo starr of the left. this challenge was, galloway has been sent out, hello there is jeremy. he hasn't shown up and caught fire and everyone is surprised him. like everyone has been surprised by trump. everyone was surprised by nigel harris, you are right, we have got to stop being surprised by these allegedly unelected people getting huge amounts of support and thinking that maybe the world has moved on. betty: whether they are on the left, the right, in terms case, the radical, they have come up with plans because they need to win over a set up constituency? >> they do. they are also open to new ideas. you saw that in greece, you see it with corbyn, he does not have ideas of his own, so he is open to ideas that people suggest. often, they are just -- they have the advantage that they were not around in the 2000, s

as chairman -- jeremy corbyn. to people choosing their leader seriously, they make different decisions. manus: a conversation with the ceo of the card chipmaker jim alta. ♪ francine: welcome back to "the pulse," live from london. i'm francine lacqua. manus: i am manus cranny. china's government has intervened to boost the stock markets. shares and shanghai finished up more than 5%, ending the worst five-day rout since 1996. european equity markets tracking the biggest one-day gain in the u.s. equity market in four years. reserve: the federal dialing back expectations after dennis lockhart said they china slowdown and oil slump are complicating the outlook. statement,eduled bill dudley said the case for an early rise is becoming less convincing. prime the outgoing greek minister has ruled out leading a coalition with opposition parties. next month'so win snap election. part itsays his syriza would not put together a government with parties that supported him. tsipras did not rule out a government of national unity,

jeremy corbin saying they are not extreme. analyst believes they are mainstream. great to have you. corbynorter or are you just saying austerity is not going to work in this country? >> thank you for the clarification. a corbyn supporter and do not share many of his views. what i share is the view that austerity has been a disaster .nd harmful the big thing we argue is that opposition to austerity is .ainstream economics the extreme is actually the practice government is doing. i've just listened to jonathan talking about devastation across the markets. austerity in these circumstances really looks out of place and out of time and harmful. manus: good morning. danny: what a day it is. manus: it is torture out there. ist i want to know from you if austerity is not the right policy, how dangerous has the which been by osborne, the imf has been praiseworthy of. the most devastating thing that occurred was in 2010 when they slashed investment spending. times if youn many compare this recovery and the economy was recovering nicely in 2010, then it flatlined. if we compare everett recovery in th

jeremy corbett has spoken out on u.k. banking crisis. the hard lined left wing mp has been a strong critic of british banks. corbyn: i think we have to examine what happens when the banking crisis came about, examine who was responsible for the banking crisis, and then work out how we take things forward in the future. get u.k. inflation data and under half an hour. the report for july will show a big fat zero. we will bring you that figure as it drops at 9:30. manus: given the go-ahead. we have more on the shell news on its drilling adventure. what does it mean? ♪ francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on your tablet the phone. won permissionaas to drill for oil in the arctic waters of alaska. u.s. government has granted the permit for the well. francine: this is the first time drilling has been allowed in the region and three years after a rig ran aground in 2012. our bloomberg chief energy correspondent joins us and we have michael frankel. how significant is this? shell has been waiting for the final permit. until now, it was able to drill but it had to stop before r