damien: martin schulz is trailing behind merkel in the polls. despite leaving high school without a diploma and not going to university, schulz has a successful political career under his belt. the current leader of the spd, he previously served as head of the european parliament. he's a fiery speaker, whose passion for social justice, the cornerstone of his campaign, is palpable. >> in urban centers, two incomes often aren't enough to pay the rent at the end of the month. we want a cap on rents, we want to prevent them from skyrocketing. a country with the sort of surpluses that germany has must make the dignity of elderly people a focus of its policy. that is generational justice. damien: applause for the spd's frontunner. still, his chances of winning the vote on september 24th are slim. incumbent chancellor angela merkel has been in office for 12 years and makes campaigning look effortless. today's she's in brandenburg, outside berlin. there's a lot of resistance here in eastern germany to her liberal refugee policy. right-wing extremists int

performed horribly with martin schulz as chancellor candidate in last month's a federal elections does the party still have faith in him do they believe that he's the man to turn the party around it looks like it does recriminations have been pretty new to it he still seems to be very much respected in the prata even despite this really resolving defeat in the september elections there will be a cocktail party congress in december and a new leader or a leader will be elected everything is pointing in the direction that he will be really remain as leader that will he will be reelected on the other hand you have to say he clearly is an interim leader the party at the moment is focusing on the next general election in four years time the new most likely top candidate for that will be under a lot on to be on the others who is at the moment the leader going to be the leader of the party and in the new parliamentary group so they're all focusing in that direction because of course at that time also. very unlikely to be the conservative candidate field will be a lot more open in four years ti

he was far behind in polling the victory in lower saxony was badly needed after party leader martin schulz his historic defeat in the bonus talk elections. i think you know sing in austin and he does what the social democrats achieved in lower saxony is unique in the history of election campaigns in germany and we're not i mean thankful but we're also very proud and very happy about this great success i think and what the isn't close enough or pretty is pretty bleak candidate band manages conservative c.d.u. party last two percent scoring their lowest results in almost twenty years. he said that to me not to unleash as rationally i would have wished for a better result for the c.d.u. party in lower saxony. but let me be absolutely clear about this we do not have to be ashamed about tonight's results misson via hope. the recent weakens chancellor merkel who is facing a difficult time at the negotiating table. another party got a big bump out of the results the far right don't turn it for germany won seats in the regional parliament for the first time that means it's now represented in fourt

let's bring in research, martin schulz. where do you expect we will see the greatest improvement?ies are optimistic. the numbers are at peak levels. nonmanufacturers, services, the outlook has been a little depressed, lagging. if the outlook among service companies improves, we need a stable investment number, even a tiny bit. then the small companies, they are three quarters. if they stay there or it improves, we have a solid economy. yvonne: production is up, inventory down. we have not seen that followthrough when it comes to investment. if we see second month where we see a plan gaining more than 8%, what does it mean in terms of next year? can we continue the flow momentum building up? -- slow momentum building up? martin: companies have been down, interest down, interest in the storage, what they had, their offices. they have been filling it. production has been improving. investment has to come in for the manufacturers. they have to continue to rely on the weak yen. the second one will be smaller companies in the services among the service economy. they are becoming more op

chancellor angela merkel, from the conservative christian democrats, and her main challenger, martin schulz

the spd party leader, martin schulz, has said he is not going to go into coalition because "we cannotou want? laughs yeah, isn't that funny? so schulz is going into opposition because he doesn't want to lead the government, but rather, the opposition. that's so funny. but anyway, we have a huge impact, because people are talking about it. and we will bring up this debate, we will bring back this debate into the parliament because we didn't have this debate in our parliament. we had a chancellor who just decided on her very own to open our borders to everyone and let everyone in. there was not even a decision, and not even a debate in the parliament. so now we have this debate, and now... you are shutting the stable door after the horse has bolted. you're fighting something where there are already immigrants. how are you going to make a difference? because anything your party — nobody wants to go into coalition with you. how are you going to make any change? well, they are picking up our programme little by little. so what we came up with in 2013 already, for example, claiming the need

the senior economist martin schulz will join us to talk about these numbers as they come through later key challenges could be the yen remaining a wildcard during the security power games happening in the region. small companies is also going to be interesting to see in the tankan survery, small companies is also a target for the new reserve requirements by the small pboc over the weekendo reserve -- boost lending to small companies in china. we are talking about all of that with how joe of commerce bank, he will interpret what we hear from the central bank and pmi data as well, paul. paul: that is right. and later on, 8:00 in new york, bc vice have the oc president and strategist joining us with sights on the market, and it could be quite a week in australia. we will have to wait and see what the markets bring us. all of the action next. ♪ .. .. live from bloomberg's asian headquarters. hundreds are hurt as spain tries to halt the referendum. capitalist separatists may be declared independent. the premise or braces the police for disrupting the vote and says the poll was not a -- was