mark carney holding brexit responsible. >> the u.k.es adjusting to a new an uncertain relation. monetary policy cannot event the week or real incomes to move to new trading with the eu but it can influence how the hit to income is distributed. it can support u.k. households and businesses as they adjust to that change. mark: andrew, thanks for coming on. how would you have voted today and why? >> i would have been with the minority voting for a rise in interest rates not because i think this is the best time to raise interest rates. i think we should have started two or three years ago and had we gradually raised them, we would be in a much better position now. doingwe had our reporter a wonderful job and i'm struggling to give you a coherent narrative. they cut the wage forecast but mark carney said wages will rise more than markets currently imply. what is a clear and coherent narrative from today given slightly jarring factors? >> i would not say it is a clear narrative but they missed opportunities from 2014 to 2016 when the u.k. e

wayne: it is a difficult situation for mark carney and the bank of england.ded is a cushion from a growth perspective from an export point of view. it promotes discount for anything that you are looking at around the world they can get from the u.k. and that is not just physical goods but professional services as well. and think we have andthis move in sterling you keep it where it is for several quarters because it reduces the risk appetite, the risk you have by holding sterling assets in a global portfolio. that is the message we hear from investors all the time. it's note l'oreal ceo overly worried about the value of the euro and if you look at big moves and the euro and our the guest made the point, with the stop but what you have is a replacement, the euro is trading on first half of its losses going back to 2014. does that change anything that you look at in terms of the companies that have big exposure with the euro? when: we use the euro as much as other people do as well. a sign of investor confidence or potential confidence. you cannot look at curre

but next, is mark carney caught in a catch 22? the challenges facing the boe.s is bloomberg. ♪ ♪ rishaad: you are back with bloomberg markets. i am rishaad salamat. the latest business flash headlines, toyota and trusted a tie up with monster comes submitting a proposal to the board friday. the nikkei news saying each would take a 5% in the other. the deal could pave the way for a joint production plant in the united states. we are expecting an announcement. toyota reporting earnings friday. shares the highest in six months. toshiba to build a new flash memory chip plant without western digital, spending $1.8 billion expanding its center in western japan. toshiba owns the land and buildings. until now, it was occupied by sandisk. softbank continues to invest, $250 million into on lined lender kabbage. the start up will use the cash offerand products and insurance and payroll services if there is demand. it plans to move in asia and is talking to banks in japan, china, and india. it is also considering an ipo in the next 12 months. thiscame out with , the poundo

and we will have governor mark carney's conference. bloomberg users can follow all of that on top live . our guests. in thank you both for joining us. you were governor right now, how would you look at it? there was a decision from the governor to sound a lot more hawkish in portugal. is it because he has raised the hike or just because he wants to market to believe it? simon: yeah, it is clearly going to be an interesting meeting. what the bank is worried about is that the natural rate of unemployment is estimated to be 4.5%. they have been revising this down. they revised it in the last inflation report. if they continue to think the labor market will be strong, at some point, weight pressures may deliver. e pressures may deliver. on the downside, you have brexit risk, growth slowing, consumer income squeeze. if i was them, i would be playing it very cautiously. i think that is the way -- why the consensus is as it is. the vote will be very interesting. francine: but why? everyone, almost everyone in the studio says i would be ca

report days where you have a dovish outcome on the central predictions and a hawkish comments from mark carneyr anyone on the mpc. not over but disappointing. alix: looking for the words from carney and what it would mean to look hawkish, what would it be? >> if you read through the extent of the inflation report in summary, similar to what was said at the june meeting, there are limits to the extent to which above target inflation from the bank of england can be tolerated. today, they added that a small degree of flight in the economy is absorbed and the domestic inflationary pressure, the big focus in the market, are likely to increase over the forecast time. if he emphasizes those points, it keeps november live but if he focuses on the weaker data on the growth side and the reason for why they lowered wages, the forecast for unemployment, it goes up slightly towards the end of the time and he focuses on that come in reduce the market pricing further. david: it strikes me that there is a version of the same problem in the united states with the bed, a lack of wage pressure -- fed, a lack of

just talking about it with our guest, brexit uncertainty is stalling growth, that's according to mark carney. speaking at his press conference, carney said the devil is in the data >> uncertainty about the eventual relationships are weighing on the decisions of some businesses. but it is still down from the 1,000 businesses in our decisionmaker panel which is run by our agents, but 40% of those businesses are affected in some way, either through the supply chain or -- and markets by uncertainties around brexit. we see it in the macro economic numbers. investment has been weaker than we otherwise would have expected in a strong world high degrees of profitability, ample availability and low market capital. >> sterling fell to a nine-month low tsh low. it was 6-2 to keep the banks on hold sterling/dollar now at 1.3150. up by 0.1% on the day. far away from the highs from earlier this week. >>> the investigation into russian meddling into the u.s. election that taken a step forward. robert mueller has convened a grand jury the move would allow him to compel witness testimony and gather more evid

mark carney, return to the 296 target. lunchtime, and we will have more business news just after 13:45pm. the food delivery company deliveroo has told the victoria derbyshire programme it's bringing in new safety measures to protect drivers from attacks. it follows a wave of moped crime that's hit london and horrific acid attacks where delivery drivers have been victims. around 450 acid attacks were recorded by police in london last year. it comes as the royal college of emergency medicine warns corrosive liquids are fast replacing knives as the weapon of choice for criminals and there needs to be more awareness about how to help victims. catrin nye has this exclusive report. london is currently in the midst of a moped crimewave. three weeks ago, deliveroo driver jabed hussain was the first victim in a series of five acid attacks in 90 minutes in north—east london. it's getting burned on my face. it kept burning on my face. i was just knocking on the windows of a few cars, just knocking on the windows. they're not opening

we hearfrom mark carney. to put this down to the fall in the value of the parent and he puts that going to brexit. would you agree? i think this is very much linked into inflation. i think we can put that down to weaker stirling. it is affecting businesses and leading to higher places across the high street. we see higher inflation at the moment. at the same time, we each growth is not picking up time, we each growth is not picking up in line with that inflation. it is tougherfor up in line with that inflation. it is tougher for households. is the point about falling stirling also mean that exports are cheaper and that in turn will actually help the economy? yes, the governor was also very clear to me that point. manufacturers are feeling more competitive and exporters rose to the highest level for 20 years. net trade will be contributing to our growth in the years to come and that is very important. but one of the other points at the governor was trying to make was our potential growth over the long term, th

betty: mark carney was also talking about business sentiment.ou, i want to talk about your business. you are about to undergo a big change with a merger with standard life. how are you feeling right now? >> i feel very excited. this gives us a great opportunity to compete with the big u.s. houses. we'll be the largest independent outside america. still edging into the top 10. the competition is fierce in asset management these days and this gives us a chance to compete on the global stage. yvonne: there are a lot of critics that say it it's not enough to challenge the rise of passive investing. it's not going to attract money out of the trends they will stay. what is your answer to all of that? >> it helps to compete, but i would say we are better positioned than a lot of the big houses that are suffering from the rise and rise of passive because emerging markets in global equities, there is more scope to outperform their because they are less efficient. where we are seeing the battle is the u.s. camp at the moment. -- we areything but everythin

today's inflation report is sifted through for signs of how the governor, mark carney, and his team thinkdoing in the wake of the financial crisis and with the uncertainties of brexit hanging over the economy. financial markets, particularly sterling, marked down the uk's relative prospects quickly and sharply. households looked through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. there are no clear answers. will be uk be in good enough shape to withstand a rise in interest rates from the bank in a few months or next year? some say that's what we have to be ready for. in truth, nobody knows. with me isjonathan ports, professor of economics at king's college london, and is a member of the pro—eu think tank, uk in a changing europe. we should preface anything the bank of england forecast by saying they have not got it right a lot of the time? by saying we are not a pro eu think—tank, we are funded by the research council to prov

anna: in an exclusive interview, manager says mark carney will not move on rates until the u.k.ves the eu. >> interest rates will not go up ofil we see the conclusion the brexit negotiations. he is unwilling with the other five that voted with him to take the risk of starting to put interest rates up. why put them up when there is so much uncertainty. europeanian is the strategist with j.p. morgan is still with us. i just wanted to point out, ben from the bank of england doing an interview pointing out details about the interest rate. another voice from the bank of england making it look like there is a conversation about where rates go rather than an assumption. a challenging situation for the bank of england where it has an economy that might slow down. cracks of to see some hearing. at the same time, you have inflation where it should be and where the bank of england wants it to be. you are in this weird situation where you want to make sure that you do not get into a situation with too much inflation but you do not want to slow the economy too much. i think it is a very norm

mark carney, the governor of the bank, was heavily criticised about...of which have not come to place. in a sense he's one of the experts your cabinet colleague, former cabinet colleague michael gove said the british had heard enough from. there was a whole point behind that, it was shortened to we're not listening to experts now. i think mark carney, the bag of england governor, was right to warn of the potential consequences —— bank of england. of course at the moment brexit hasn't happened and we are some way from that split, expected in march, 2019. i think we're beginning to see that working its way through the economy. even the questions you're posing our kind of loaded, aren't they? you talk about the cliff edge facing businesses when we leave, it's going to be in your view a cliff edge we're going to be dropping off. it's a cause for concern. you say the risks of the eu not agreeing a divorce agreement with britain views on the... this is nicky morgan who wa nted on the... this is nicky morgan who wanted to remain in the eu revelling in being the

mark carney, the governor of the bank, was heavily criticised after the referendum because he had issued some dire warnings about what would follow from a vote to leave the european union, many of which have not come to place, and, in a sense, he is one of the experts your former cabinet colleague michael gove said the british people had heard enough from. well, i think michael said... there was a whole quote behind that, it was shortened to we're not listening to experts now. and i think actually mark carney as the bank of england governor was right to warn of the potential consequences. of course at the moment brexit has not happened and we are some way from that split, expected in march 2019, and i think we are beginning to see that working its way through the economy. but even the questions you are posing are kind of loaded, aren't they? you talk about the cliff edge facing businesses when we leave. it's going to become in your view, a cliff edge we're dropping off. it's a cause for concern, you say the risks of the eu not agreeing a divorce agreement with britain, views on the desir

we have a press conference a half an hour later from governor mark carney. u're going to want to watch that, we will have it for you here. mark cudmore joins us from singapore. let's talk about the forecast q1, point to come up to two, .3, the boe had -- .4.d point how much will the downgrade their expectations? economists are expecting the boe to downgraded its growth forecast for this year and next. consensus says inflation forecasts likely to stay unchanged and the boe's inflation forecast for this year and next are above target at how much of that has been to do with the weaker sterling, that is the big question. the big challenge the boe is facing is a slow wage growth i at sources -- doorstep which i can talk about in terms of the protests but in terms of wage growth. that will be in focus, it means the consensus believes we will see rates unchanged and consensus expecting the vote to be 6-2 in favor of keeping the rates unchanged. in june, we had that surprise 5-3 vote which did surprise the market with kristin forbes being the third dissenter along wi

we have seen it with mark carney and others, they are concerned about debt levels. 0n they are concernedt note. a sad note. no, just a wise note, a cautionary tale. lovely to see you both. have a really good day indeed. don't spend too much. hello, good morning, and welcome to august. but, if you were hoping the new month would bring a new type of weather, well, actually, we're just going to continue with the sort of theme we had at the end ofjuly. a mixture of sunshine and showers. the earlier satellite picture shows clumps of cloud circulating around an area of low pressure, and with that, we will continue to see some showers as we go through the day. some places starting off dry, particularly for northern scotland and towards the south and east of england, but for wales, certainly not starting off dry. in fact, here, through the first part of the morning, showers likely to gang up into a longer spell of rain. that then extending across merseyside, up into northern england and southern scotland, so could be a soggy start to the day in edinburgh and glasgow. brightening up for a time, t

mark carney says brexit will keep taking its toll on british investment and growth.e spoke after the boe cut its forecast for economic growth and wages. the central bank also kept its benchmark rate at a record low. president trump warns that the u.s. relationship with russia is at a very dangerous low.on twitter , he says you can blame congress for that one. that is an apparent reference to the sanctions against russia that congress approved. prime minister dmitry medvedev called the sanctions a declaration of economic war. china says it wants to maintain a good relationship with the u.s. when it comes to intellectual property so the prospects of an investigation by the trump administration have the risk of tit-for-tat retaliation from beijing. a probe into whether china violates intellectual property laws. u.s. attorney general jeff sessions can keep his job for now. john kelly has told sessions president trump does not intend to fire him. that is according to a person familiar with the matter. trump publicly attacked sessions last month for being weak. global news

what do you think about the market reaction to that, and should we change our expectation from mark carneyrk: i think the market reaction made sense. it does seem if you read some of the reports that quite a few people are trying to make a hawkish interpretation of the meeting, saying they did not hike yesterday, but they may hike in november. to me, it was a very dovish signal. i think it will be hard for them to suddenly rate hike in the especially with the currency devaluation from last year coming out in the markets. i do not expect a sudden hike soon anytime from the bank of england. i think there is some of the market that is long the pound and long the sterling. we may see that happening in the weeks ahead. matt: mark, thank you very much. are we cool? guy: we cool. matt: you can follow mark's go>.ght on mliv < and remember, you can watch it on tv go if you are a bloomberg customer. get involved with the conversation. and we willib mention it live on television. next, we are going dutch. we will digest the pivot from rbs. we will hear what the cfo had to say but the second quarter.

mark carney talks about the trade—offs. the economy where save rs the imbalances we have seen in the economy where savers are being hurt and borrowers are being encouraged and borrowers are being encouraged and debt levels are rising all stopped there is a trade—off but it is fairto say stopped there is a trade—off but it is fair to say in the long term, the policy stance should be different to what it is currently. maybe we are loading too much on the credit cards on putting too much debt on our balance sheet. this is a lot about what people have been talking about. they have been keeping a close eye on it because maybe we are borrowing too much and one day we will have to pay that back. they don't seem to be taking too much responsibility for their role in that problem. they would like to look at the macro prudential policy to control the growth of credit without having to use interest rates. that is probably not going to be too successful in the medium term and a monetary policy will reflect the broad conditions rather t

this time last year, mark carney said, plan is better than no plan. fully a year later, no plans.mber that one year ago, the bank of england and the treasury said that by now, we would have half a million people unemployed because of the leave vote, what has happened, unemployment is at a 42 year low. there are challenges, wages are not picking up, the governor seemed to suggest that was because of brexit. they're not rising in the us or eurozone. that is what is scary, the global economy, despite what we say about the positive aspects, the global economy is weakening. inflation is falling. everyone has been warning about rises in inflation, and members of the bank of england, mpc, they are willing to put up interest rates, at a time when the consumer is quite vulnerable. we are very dependent upon consumers. and very high levels of debt. i don't think it is half as positive. is it your view that there is a groupthink, a confirmation bias, some kind of cognitive process that is gripping the economic establishment and the bank of england in particular? economics has been gripped by

the so-called brexit bust, mark carney says the u.k.'financial sector could double in the next 25 years. it seems some are not convinced. the royal bank of scotland saying, it will now move its european headquarters to amsterdam. it is just one of a string of financial institutions making the jump. reporter: london is europe's financial camp -- capital. almost all the major banks have headquarters here. it is where 1/5 of global transactions take place. it is one of the key sectors of the british economy, adding around 7% of gross value. but that may soon come to an end, thanks to brexit. financial institutions could soon be moving their european headquarters away from london, to keep them inside the e.u. most banks have chosen frankfurt, including deutsche bank and j.p. morgan. second place is paris. french banks like bnp paribas are heading home. also, amsterdam. frankfurt is pulling out all the stops to attract the big banks. there are thousands of well-paid employees. it is far from clear that can be enough to knock london from its p

today's report is sifted through for signs of how the governor, mark carney, and his team think we aree wake of the financial crisis and with the uncertainties of brexit hanging over the economy. financial markets, particularly sterling, marked down the uk's relative prospects quickly and sharply. households looked through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. their own no clear answers. will be uk being good enough shape to withstand a rise in interest rates from the bank in a few months next year? some say that's what we have to be ready for. in truth, nobody knows. let's speak to john longworth, co—chair of the pro—brexit group leave means leave and former director general of the british chamber of commerce. he's in our central london studio. good afternoon. we heard that phrase again from the government brexit related uncertainty. other playing out here? first of all, the bank of england are notoriously bad at fo

mark carney's comments confirmed that. mark: which bank overall in europe stands out?get agricole. there are beginning to sell insurance. people will still be -- up next, the brexit warning. this is bloomberg. ♪ we check our phones 85 times a day. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. mark: welcome to our weekly brexit show. i'm mark barton. let's get a roundup of the week's brexit news. nejra: the bank of england cut its forecast for economic growth and wages at it kept its benchmark rate at a record low. britain's economy has moved into a phase of study but sluggish growth. it was announced that eight cities from frankfurt to dublin have applied to host the european union's banking authority. 19 a

today's report is sifted through for signs of how the governor, mark carney, and his team think we aren the wake of the financial crisis and with the uncertainties of brexit hanging over the economy. financial markets, particularly sterling, marked down the uk's relative prospects quickly and sharply. households looked through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. there are no clear answers. will be uk being good enough shape to withstand a rise in interest rates from the bank in a few months next year? some say that's what we have to be ready for. in truth, nobody knows. one of britain's most seniorjudges has said "we will have our blood on our hands" if a suicidal teenage girl is released from custody without adequate supervision. sirjames munby says he had to speak truth to power about the case of a vulnerable 17—year—old girl identified only as x. sirjames said: it is "a disgrace to any country with pretensions t

the bank's governor, mark carney, said the uncertainty had influenced markets, business investment andin june last year. financial markets, particularly sterling, marked down in the uk's relative prospects quickly and struggling. how cells look through brexit related uncertainties initially. —— households look through brexit. but the consequences of the fall of sterling has squeezed real incomes, and they have cut back on spending, slowing the economy. businesses have been somewhere in between. since the referendum, they have invested much less aggressively than usual in response to an otherwise very favourable environment. you're watching outside source from the bbc newsroom. our top story... transcripts of conversations president trump had with world leaders after he took office have been published by the washington post. other stories from around the bbc. the us—based lawyerfor the widow of late nobel laureate liu xiaobo's has filed a formal complaint to the united nations over what he described as her "enforced disappearance". poet liu xia has been "held incommunicado in an unknown

mark carney said a lack of clarity about the uk's future relationship with the european union is holdingur business editor, simonjack. there hasn't been much summer cheer on the beach in margate this week, the weather overcast and some bracing headwinds — much like the uk economy, and there was precious little sunshine shed when the bank of england governor delivered its latest forecast. he said the post—referendum fall in the value of the pound was now beginning to hit home. households looked through brexit—related uncertainties initially, but more recently, as the consequences of sterling's fall have shown up in the shops and squeezed their real incomes, they've cut back on spending, slowing the economy. the bank cut its growth forecast for this year from 1.9% to 1.7%. it also downgraded its estimate for next year from 1.7% to 1.6%. meanwhile, it pushed up its inflation forecast, saying it will rise from 2.6% now to peak at around 3% later this year, while wage rises remain stuck at 2%. that widening gap is being felt in margate. the price of food has definitely gone up. butter, cheese

thank governor mark carney said both individuals and companies were beginning to feel a slowdown. puzzles little threw bricks is elated uncertainties initially. but more recently as the consequences of sterling's paul have shown them the charlatans we their real incomes. they've cut back on spending the slowing econom. businesses have been somewhere in between. but since the referendum live investors not much less aggressively than usual in response to an otherwise very favorable environment. not always going to be scrambling to train raises a server to take on new tasks created by our exit. brings a partner of international trade is largely due to a half a million house trying to twenty point eight million euros. to train new trade negotiators. because the uk itself has. a deal in over forty years as the european union filled that role. after breaks at london will be facing an avalanche of talks as it seeks to reestablish its trading relationships with the worl. trade partners also spent more than a million euros on head hunting of new stuff. to fill those roles. a ticket on the

as demonstrators, including the bank's own employees, protest over wages, the governor mark carney saysences of sterling's fall have shown up in the shops and squeezed their real incomes, they've cut back on spending, slowing the economy. the bank has kept interest rates on hold at 0.25%, to ease pressure on what mr carney calls a "sluggish economy." also tonight... ajudge has condemned mental health support for young people in england as "disgraceful and utterly shaming," as the authorities struggle to find suitable care for one suicidal teenager. a british computer expert who helped shut down the recent hacking of nhs systems has been arrested in america, accused of links

today's report is sifted through for signs of how the governor, mark carney, and his team think we aren the wake of the financial crisis and with the uncertainties of brexit. financial markets, particularly sterling, marked down the uk's relish and prospects quickly. household through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. will be uk being good enough shape to withstand a rise in interest rates from the bank ina a rise in interest rates from the bank in a few months next year? some say that's what we have to be ready for. in truth, nobody knows. one of britain's most seniorjudges has said the state will have blood on its hands if a suicidal teenage girl is released from custody without adequate supervision. sirjames munby, president of the family division in england and wales, was giving judgment in the case of a vulnerable 17—year—old, who has tried to kill herself a number of times. our home affairs correspondent, d

the bank's governor, mark carney, said that uncertainty over brexit was curbing pay rises and leading here is our business editor, simonjack. there hasn't been much some cheer on the beach in margate this week. the weather, overcast, and some bracing headwinds, much like the uk economy. and there was precious little sunshine when the bank of england governor delivered its latest forecast. he explained how the recent fall in the pound was starting to make us all poorer. households look through brexit related uncertainties initially. more recently, as the consequences of sterling's four have shown up in the shops and squeezed their real incomes, they have cut back on spending, slowing the economy. the bank cut its growth forecast for this year from bank cut its growth forecast for this yearfrom1.9% bank cut its growth forecast for this year from 1.9% to 1.7%. it also downgraded its estimate for next year, from 1.7% to 1.6%. meanwhile, it pushed up its inflation forecast, saying it will rise from 2.6% now to peak around 3% later this year. wage rises this year remain unchanged at 296. ri

as demonstrators, including the bank's own employees, protest over wages, the governor mark carney says uncertainty around brexit is hitting businesses and households. as the consequences of sterling's fall have shown up in the shops and squeezed their real incomes, they've cutback on spending, slowing the economy. the bank has kept interest rates on hold at 0.25%, to ease pressure on what mr carney calls a "sluggish economy." also tonight... ajudge has condemned mental health support for young people in england as "disgraceful and utterly shaming," as the authorities struggle to find suitable care for one suicidal teenager. a british computer expert who helped shut down the recent hacking of nhs systems has been arrested in america, accused of links to other malicious software. a damning report details how the poorest children in england fall behind more affluent pupils all the way through school. tributes have been paid to the stage and screen actor robert hardy, who's died at the age of 91. and england's lionesses are tamed by the dutch at the women's euros. and coming up in sportsda

following bank of england governor mark carney's recommendation last month.up includes barclays and citigroup and will spend more $7 trillion. -- in 2016, hedge billion dollars in withdrawals. that's today's bloomberg business flash. coming up, how disney is using the pokemon go craze that gripped fans last year to promote its new star wars film. this is bloomberg. ♪ bloombergis is markets. i am vonnie quinn. disney is harnessing all its media might to make the next star wars movie the biggest film of the year. a new marketing rollout will feature an augmented reality treasure hunt using the's are wars at -- using the star wars app. friday is becoming a thing untilhe first friday september 1. we are going to have three days of people wandering around my zombies trying to kill each other with laser beams, right? >> hopefully not, but they will whereited to stores disney will be whirling out its latest toys. 20,000 stores in 30 countries around the world. last year, they did a sort of live -- unbxing oxing live on youtube. people can go into a store with a smar

inflation weakened unexpectedly in july, making it tougher for mark carney to champion rate increases last month, loose -- less than the 2.7% forecast good -- forecast. 's, told the rate hike was drowned out by news of brexit. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tencent is out with its technical earnings a little late. it is under pressure to justify its willingness stocks surge and deliver on some of its big bets. china is watching this. what are we looking for in these results out later today? >> the expectations are still revenue, ittencent is that 48%, 25% -- 40%. the company this size, they are expected to grow at this speed. it is remarkable. a lot of it is the expectation it will able to continue to deliver on mobile gains. the of not really started monetizing their advertisement business on we chat. it is only compared with 14% of revenue, compared with facebook's 98%. that's where the growth expectation is coming from. rishaad: 70% of your today at the moment. -- 70% up year-to-date at t

half of boe,ear is the fed, ecb, can you share your views on what you expect, perhaps more hawkish mark carneyweek, but in more divergence as opposed to convergence when it comes to central-bank policy. >> we don't expect anyone in the region to loosen anymore, including the rbi. curve. ahead of the for example, bank of indonesia may be the end of this year, but starting to hike. then we have countries like australia, india, where they will remain flat. so relative to others, you could a loser, but we don't see them losing policies further than they are. rishaad: what would be there main concern, if anything? >> the main concern, especially for the region, remains the debt side. not only china, several countries, the private side debt level has seen that rising, so if we get a strong back up in yields, that could cause a problem. the other more stock market related indicators we are watching closely, we have had capex discipline, and they have pretty much washed out and that is why industrial prices are going up, so we went like to see this overcapacity and over investment is not resuming too

elsewhere, you had mark carney saying that they have the new material evidence really, from householdsinesses. if they were expecting anything , but a smooth brexit. then, of course, you would assume that if they were expecting these cuts to the forecast that that would predicate -- indicate perhaps more dovish different stance on policy, but instead, we could see more tightening than what the current pricing in is of the market. david: independent counsel robert mueller has convened a grand jury in washington in his investigation on the connections between the trump campaign and russian government. >> it is a sign this investigation is intensifying, expanding. he is looking at some's businesses, trump's son-in-law jared kushner as well as his , campaign manager paul manafort. there are a number of different makes it are being investigated, but a sign that this investigation will continue, and there is going to be a cloud over the trump administration for several months to come. >> this is a really big deal, obviously. and, you are crowding out some really important policy decisions. a

we'll bring you the boe rate decision and mark carney's press conference live. that's with gemma and myself as you can see on your screens. >>> the ecb has lowered the emergency funding cap for greek banks. the bank of greece and domestic banks can draw up to 38.9 billion ewe euros in emergency liquidity. >>> do e-mail the show, e-mail us questions, comments on anything that you're seeing here the address is streetsignseurope@cnbc.com you can find us on twitter, streetsignseurope@cnbc and tweet me directly, @carolincnbc. >>> still ahead, scuffles break out on the floor of the brazilian congress as lawmakers vote on the future of the country's president. we'll bring you the details after this short break these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that

does it move on every certainty, or does it look to mark carney for guidance?t is looking at mark carney, he will continue with monetary policy as is. but i do think he will get support from a hot money flowing into the u.k. ideai think i flow is the of replicating the existing architecture and being a country with very similar arrangements. i think the u.k. will get some bid on the back of that. francine: thank you. still with us, luca paolini. up next, the saudi king and crown prince. this is bloomberg. ♪ francine: this is "bloomberg surveillance" and i'm francine lacqua in london. here's nejra cehic. reporter: total has agreed to purchase ap miller. the french company will consume $2.5 billion of net debt. the transaction is expected to close during the first quarter of next year and is a sign that the pace of deals and the energy sector is accelerating after a long downturn. chairs was the most this year on that news. i will be speaking to the ceo at 10:00 a.m. u.k. time. this tops the bid last month by warren buffett. the deal for energy future holdings, w

this time, it was different because we hear mark carney have the hawkish stance.nnot raise? -- why have it cannot raise? gilles moec: maybe carney's communication was not perfect and people took the speeches very hawkish, laying the ground for actual tough decisions. and my understanding was that what carney was doing was trying of the fact that everybody at the bank of england was looking at the same thing and the chances for second round inflation to materialize. q3, we willt into see if enable materialize and they are not. as of they are not, we are moving back. we have a bank of england that is stuck. one of the key issues for the u.k. in the coming two years is not just negotiations, it is also that both wrenches of -- of branches are stuck. there is no room to maneuver and now much of the bank of england can do now. on our london a desk of this morning. much more to talk about. so much on the politics of washington and at golf course in new jersey. -- in the7:00 hour, 7:00 hour, leon cooperman with the david gura and myself area this is bloomberg. ♪ got you

heard the time we comments from mark carney the markets seem to get more excited about a rate hike inhe end of this year. you are a little doubtful. the rest of the market is on the same page of you because we had a 56% chance, now just a 40% chance of a hike again by the end the year. what percentage would you attach to the chances of a hike from the bank of england by the end of the year? peter: it gets smaller the further we get into the year, so i would put it -- this week's meeting, it may be 15% and the way i see it playing out for the real economy is that it gets considerably worse from here. the position the consumer is in, they are overleveraged and losing confidence because real wages are falling, plus the uncertainty of the service or means that the main parts of the economy will be slowing down. perhaps we will be talking about a contraction next year. manus: from a trading point of your, 10 year government bond 1.3%. you are looking at u.s. moving north. how does that spread move? peter: it probably widens out. but underperforming u.k., there is a potential that the bank

of england governor mark carney's recommendation last month. that is your bloomberg business flash.bigail: time for our stock of the hour. kroger having a tough afternoon. hitting its lowest level in three years. it is pushed down by the news on amazon and whole foods. look at that, just plunge in the afternoon. >> and develop a cliff right before 2:00 p.m. that was all in the news we got with amazon and whole foods. but we heard as they are closing the deal on monday and they will begin slashing prices at whole foods from monday. they will start with chicken, eggs, vegetables, fish. i think i will leave my grocery shopping until next week. amazon will start to bring in some of their products as well. er fall off akrog cliff, but others did too. joe: we are down 8% here. what is time -- what is surprising to me is kroger already plunged when the deal was already announced, presumably on the fears of what amazon was doing. it is a little surprising that now they are making it official they are going down more. >> they regulated the deal quickly and as soon as the deal gets done, the

simon: i expect mark carney talking up sterling. that is not actively but within his narrative. start talking about impact on inflation and what that may lead to in terms of induction. bank of england is a price taker facing the slowing test the slowest growing economy in the g7. they are likely to raise rates. manus: carney may not be indifferent to exchange rates could will he repeat -- rates. will he repeat that? simon french, thank you for being here with me this morning. where to invest. name, warren buffett. he says the value markets has been hard to find bargains but stocks remained his choice over bonds. the oracle of omaha discussed the challenges of buying shares in the aftermath of the energy crisis. >> they were shooting fish in a barrel in late 2008 and 2009. stocks have been steadily going for march of 2009 was is eight so it plus years so stocks are not going to hurt more just because you pay more for them. they've got best attractive, they're still very attractive compared to bonds. if you look at the 10 year, that means you're paying 45 times earnings when you b

inflation weakened unexpectedly in july, making it tougher for mark carney to champion increases.rices rose last month, less than the 2.7% forecasted by economists. whenound fell in the news his hikes on rate hikes were drowned out. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. you, we have breaking news out of australia. fairfax media announcing for your earnings. 83.9 aussieme at $ dollars. their dividend per share, 0.2 aussie cents. is a large publication of newspapers, entertainment, magazines. they have analyst recommendation sells.ys holds, and, they are announcing the full-year dividend per share as .02. their net income came in at $ 83.9 aussie dollars. it is the earnings for fairfax media in australia. we are just about 50 minutes away from trading. we will get you a check of that stock price. it surged 18% this year already. as soon as the markets get trading. that is the latest from fairfax media. betty: we have quite a few earnings coming out from australia. a closer look at what moved the

last time mark carney talked coming he seemed to be more hawkish, but since then, some mixed data thatrates. >> all these things suggest the debate will continue. the vote is supposed to be 6-2 to hold the key rate steady. thatthe key rate off record low at 0.25%. formertingly enough, the saysy governor of the boe the boe needs to hike rates because even with all the brexit uncertainty, you have not seen growth from it the way people ought it would, and there is no reason to keep rates down. inflation is above target and unemployment has fallen. 6974, yellow line 2% target, the turquoise line headline inflation up 2.6, down to 2.4 on the quarter, but look how they have come up, mostly because of a big drop in the pound. that is why people are saying they won't have to move. theyct adam pozen saying cannot hike rates. they have to look at inflation 2-3 years down the road, and that's when it could be lower. cut rates in response to that massive drop in inflation, but what was surprising was the message to prime minister modi. >> it is interesting. placated government demand and the push

then we have a news conference from mark carney in london. this is bloomberg. ♪ .orning. tom keene and francine lacqua. the wall street journal with a nice article, lloyd blankfein and the challenges and wallman -- at goldman sachs. they got the trump trade wrong. you really wonder quarter to quarter how a company can get things wrong in a trade that shows up in trading results. francine: if you are a bloomberg customer, you can look at us at bloomberg go. i did a poll and i have 2 guests, paul donovan and kit juckes. i asked what they would ask lloyd and they would ask if they read trump tweets. something to get you started. steel and the 8:00 hour. first word news, here is taylor riggs. taylor: rex tillerson said pressure is the best way to deal with north korea. to findn told reporters an excuse to invade north korea. lindsey graham said there is a military option at that could destroy north korea. white house senior economic forefront tonew replace janet yellen. rolewould take over the from yellen. administration may strike a peculiar deal. according to persons

on the flip side of the coin, mark carney, is it time for him to talk about sterling weakness?he levels we were back in october, when carney said he and his colleagues weren't in different to the exchange rate. watch out for future comments. they are willing to look through the depreciation of the pound, but any further depreciation, they test their tolerance against the euro. sinceng near the weakest 2009. theresa may is in japan through friday. figures show the u.k. hasn't had a good trade surplus with japan since at least 1988. it is all in red. this deficit increasing in the last year or so. the problem is that japan's priority is to nail down an agreement with the e.u., just as the u.k. negotiates a deal with the e.u. as well. tricky time for theresa may to try and hash out a trade deal with japan. francine: thank you so much. "bloomberg surveillance" continues in the next hour. tom keene joins me. we will be talking to the ceo of suez. he's at a conference where caroline connan also spoke to mr. agon of l'oreal. this is bloomberg. ♪ francine: all aboard the trump tax tour