he is a rate strategist at nomura.man giving us his views on how the donald trump administration should be addressing the trade in balance the united states has with china. this is bloomberg. ♪ rishaad: the new dialogue between the u.s. and china got off to a difficult start as united states publicly rebuked china over a trade balance. the trump administration may need to rethink how it addresses its issues with beijing. put pressure on china and organized the g-20 countries and others to pressure on china on this. i think there are forces in that the understand overcapacity is distorting their economy and something they have deal with sooner or later. with aluminum for example, we challenged the subsidies china has provided their aluminum financingin terms of and other inputs, and the trump administration has not followed through on that case. hopefully they will do that, but it needs to be an all out effort by the u.s. and the global community to underscore for china how they have to take allow market forces to play

mark: bob sticks around. , senior independent client advisor at nomura.r against the sweetness current -- shui dish currency, the riksbank is turning around elevated currency. to cut the repo rate than before. i think we can classify that is a tweak in its currents guidance -- foreign guidance. bob: we talk about growth and recovery, the riksbank has no confidence in its economy. guy: and you wonder why that differs from the view we are hearing from mr. macron and mr. draghi. coming up, the fed liberation -- vfl revolution. macron and his vision for france and europe. we don't get these joint sessions very often. fascinating to watch. details next. this is bloomberg. ♪ ♪ guy: 8:42 in london. let's check the open and see how we are 42 minutes into it. remember the backdrop, a solid .tart to q3 yesterday's session was positive for european equities. while we sold off initially, we are coming back at this point. the dax flat as we speak. ftse 100 down .3%. stoxx 600 down .2%. the cac in parents. -- in paris. here is nejra cehic. nejra: when we look at indivi

nomura is up 56%. the appetite for investment is shirley on the rise.y on the rise. economy turning more positive, i investment sentiment to improve even further. hsbc will announce a $2 billion share buyback with results on monday. they said that buyback is the first phase of a three-year program to run down the stockpiles of cash. comment, declined to saying estimates are for the profits of $5.5 billion. betty: and i want to recap quickly the japan output numbers we got a few moments ago. we saw industrial production for month on month for the month of june up 1.6%. a rebound from the prior month, slightly beating what economists estimated at 1.5%. this is a bit of a slowdown from the slave month a year ago. -- same month a year ago. you have this pattern. we get some good numbers on japan offset by not great ones which end up with a mixed, might outlook on the -- muddy on the japanese economy. yvonne: it is interesting. we saw the output forecast they ofe out with here, a percent month on month in july -- 8%, and august further positive signs for the

nomura is out 56%.e for investment is surely on the rise, not only for stocks but demand for foreign bonds is increasing. with the macro economy turning more positive, i expect investment sentiment to improve even further. said a 2e sunday times --lion share dollar buyback it is the first phase of a three-year program to run down the bank's stockpile of cash. a person in hong kong declined to comment. the $5.5he pretext for billion. haidi: we are continuing with the earnings, major was this week from the u.s. as well, including apple. we are looking at the open here in sydney. respite 0.4%, a bit of from the 1% plunge, the worst of the month friday. betty: and in tokyo, we are waiting for japan output numbers today or later on this morning. you can see holding steady for the japanese yen at 110.60 for the u.s. dollar, and awaiting a slew of bank earnings from japan. haidi: watch out for safe haven flows as well. next, we will check in on the health of the chinese economy ahead of key factory gauges like

nomura with still say august is live. nomura is with us this morning.be the winners, but what does that do to the compression of this spread. we are tracking between the gilt and bund spread. can that compress further? gilt yields open this morning at 1.28. talk about what is happening with the move screen. i have not seen a price on ericsson yet, which i'm intrigued about. im'sorry about that. a fertilizer company ironically, is trading down by 6% this morning, missing estimates. onm yet to see a price ericsson, but look at lufthansa. the market call that stock higher this morning, but it is trading down by 2.3%. let's move to the other side of the fence l and show youa what isn going on. britishd up by 2.73% this morning. 2.0 3%.ish land up by nericsson has just opened up. lufthansa, down by 7.47%. 7.5% on then by back of its disappointing outlook as well. morgan stanley expects the second-quarter earnings season to be the consensus stateside with reinvigorated faith in the from policies. -- faith in the trump policies. let's take a look at the key ea

guy: thank you for your time this morning, jordan rochester from nomura., we digest the g-20, or g-19, depending on your point of view. that's next. this is bloomberg. ♪ guy: russian revolution. donald trump's son confirmed to meet with the russian official who claimed to have hillary clinton information. break pre-brexit, theresa may change of tactics. is she trying to expose labour party discord, or is she running out of ideas? what does it mean for sterling? the ecb tells bloomberg the central bank will probably wait to reset stimulus policies. we will hear exclusively from the bank of france governor. good morning, welcome. this is "bloomberg markets: european open." i'm guy johnson in london. 30 minutes into the trading day, this is what we are looking at. as you can see, nowhere in a hurry. .2%, numbers by being posted around europe, dax outperforming, cac underperforming. in terms of the movers, keep an eye on the golden. silvernd certainly in focus. g20 in focus, president trump flew home, lectured on trade by china and france, receiving attitude w

nomura said a branch manager mishandled information. message this morning, its fourth-quarter output came in weaker than forecast, putting 2017 at the bottom end. australia's big four banks watching financials down under the capital ratio at 10.5% by regulators to meet the high benchmark, met by the first of january in 2020. that is a brief watch of what we are watching when treating is underway in australia, japan, korea. this is bloomberg. ♪ ♪ >> asia-pacific markets see a mixed start as investors weigh tepid growth. the dollar at an 11 month low angle that a two week high. >> the bank of japan and the yen holding steady after slumping to a three-week low on tuesday. kwak's biggest drug and tougher guidelines. the regulators demand they hold more capital to prove their strength. back on thes. is offensive on china saying it is time to rebalance trade and level the playing field. the second hour of daybreak asia coming to live from bloomberg's u.s. and asia headquarters. i'm yvonne were it is just after 8 a.m.. >> and i'm betty liu. a

nomura is betting on india with demand for equities. $3.5 billion in the .ast year india's economy is expanding seven times the pace of japan, being boosted by a growing at all class and more than one million young people joining the labor force every month. shares have hit multiple records this year alone. optimism continues to grow. , uranium and sending a test shipment to egypt -- ♪ haidi: it is a: 30 a.m. in sydney, markets open locally in 30 minutes' time here looking at futures, pretty negative open across asia, broadly after u.s. stocks ended unchanged. tech earnings a big week, financials as well, gdp rounding up a big week. same for the u.s. economy. let's you caught up with the first word news. plant president trump's team has been playing down the comment he asked about complete power to pardon. he cannot pardon the supreme court. they would have to determine if he could pardon himself. the legal team said the issue is not on the table. >> i am not sure, but it does not matter anyway. this is one of those stupid hypotheticals

still to come on the program, we will talk about what nomura is doing in terms of this part of the worldviews as to how things are unfolding in terms of geopolitics. find out which assets stand to win in which one will be in the losing basket, especially with no signs of the dramatic standoff dying anytime soon. this is bloomberg. ♪ shery: let's get a quick check of the latest business flash headlines. sources tell us saudi arabia's third-biggest mobile operator is reaching an agreement to sell phone towers. saudi arabia is planning to celeron 7000 -- sell around 7000 mobile towers. financingy is raising for the deal, which could be completed by the end of the year. saudi arabia has approved aramco's plans to build an industrial city. the kingdom's cabinet agreed to allow land to the state-run oil company and manage its assets. to spend about $10 million on the project over the next 10 years. is movingsed carrier to streamline after years of rapid growth. long-hauls biggest airline is scaling back senior cabin crew, as well as administration and i.t. staff. because began in the last few

also out of japan, earnings from nomura, hitachi. keep an eye on the aussie dollar.l allen in sydney. more "bloomberg technology" next. ♪ emily: i'm emily chang. this is "bloomberg technology." the u.s. house just passed a $788 billion spending bill that includes a plan to start funding a wall on the u.s.-mexico border. this comes on the same day that by smart act was introduced congressman will heard. thatlls for a smart wall aims to use technology to secure the border. joining us, the representative himself. thank you so much for joining us. what does the spending bill passing mean for the wall and your plan for a smart wall? >> this spending bill to the lot of other things than just fund the wall, but the wall money was in it. this is the first step in the appropriations process. it's unlikely it will survive in the senate, and so the fight goes on. what it does in my bill -- we are going to continue to push talking about having a smart wall. people are frustrated because it is 2017 and we have not secured the border. we should not be looking to a fourth century s

so much, willford frost a busy morning ahead for you >>> let's bring in the executive director at nomuraay it out jpmorgan lowering its guidance citi hurt on trading and wells lower on loan growth what's the common thread between the three today if there is one. >> i think wolf outlined it clearly. to clarify, citi actually had a beat within trading so their results on the trading side beat expectations but this is really a question around nii and some of the guidance which is softer than people had expected. taking a step back you have cautious guidance from the management on the net interest outcome outlook, that's going to likely bring down numbers just a touch for the back half of this year but you're looking at a group that's had a very strong run post election and year to date the bar was getting a lit lost here and given some of the more measured guidance from the management, felt it was elevated and reacting accordingly >> so do you think the expectations for this group were too high or do you think this is sort of a garden variety correction for them? >> yes, i think for the qua

manus: always great to get your input and thoughts from nomura, where you are the head of global strategyng you want is tv if you're a bloomberg customer. the chart, the functions. you can have a look at everything that is going on throughout the history of the show. you can send a question to the guest as well. next, we are going to check in on some of the movers. we have an interview for you. ceo.ve the investec this is bloomberg. ♪ ♪ is a: 14 a.m. in london. welcome back to the market open. two words are driving markets. bids and beats and sentiment. that is what is hanging over the market. there is this like a belief in the markets as you go to close or trade, because risks are rising in terms of the political nuances in the united states of america. you have this extension of the investigation into donald trump, and that is holding over the market. the question is, what happens next? the ftse holds it the ground. vodafone gets a little bit of help there. the dax down .2%. juliette saly is standing by with the business flash. juliette. juliette: toshiba and innovation network com

rishaad: nomura profit rising 20% as the stock rally boosted commissions.lion, pretty much middle of the range of estimates. 225 has gained 20% over the past year, and one driver is nomura, up 56%. investmenttite for is surely on the rise. for stocks, but demand for foreign bonds is increasing. with the macro economy turning positive, i expect investment sentiment to improve even further. a recovery in china helps komatsu's first-quarter profit double come in net income rose 134% to $328 million for the world's number two maker of construction and mining equipment. sales rose 44%. competitors support the prospect of a turnaround in the construction sector. china's official factory gauge darling back a notch in july under a push by authorities to curb financial risks. manufacturing pmi 51.4. is the us in hong kong senior emerging asian economist here. let's not dwell on this. it is bang in line. what does it tell us? >> it is consistent with our view, suggesting the economy has preserved the momentum we have seen in the second quarter of this year, 6.9%. we

nomura not helping things out, saying it expects a 26% drop in sales this year. been watching is samsung beating its own forecasts with its related -- latest quarterly profit. the wetland shows us sense of share price over the last two years. the blue line is apple. samsung has radically outperformed apple, even though both have had a great dirt to 2017. -- great start to 2017. we have seen samsung shares of 32% so far in 2017. manus: thank you very much. early story of the day, global selloff. they have been selling bonds. central bank changed the narrative. u.s. treasury sold off the 30-year yields. later today, we have the jobs report in the united states of america. a stronger than expected number. maybe for the reason to push the selloff. let's get sobriety back into this. maybe i should contain myself. it is a 1.7% combined drop in equities and bonds. you haven't seen that since 2013. there is a shift in central banks. do you feel unnerved by it? are we being overly aggressive and demonstrative? kully: it is never nice to see a move of this magnitude. the w

nomura estimates the only account for 2% of bondholders in china. this chart shows you the yield on china's generic ten-year bond outpacing the -- u.s., germany, and japan. it is open to foreign investors as of today and strong yields to be made. manus: thank you very much. great roundup. japanese prime minister abe faces one of the biggest tests after the ruling party lost tokyo's elections. seats,he ldp secure 23 the lowest number. the vote could be seen as an indication of outcomes next national elections. joining us now is isabel reynolds. ay was this result such disaster for the lbp then? >> right, two main reasons. one, the tokyo governor has developed star power in the capital, making great use of social media, a clear agenda of cost-cutting, including having her own salary, and talking a lot about transparency and bringing the workings of the government in the open. people have liked that agenda. the other thing to note is the ldp has shot itself in the foot and a series of scandals failed to explain this to the public. the voters came out o

the japanese bank nomura has said it will move some of its operations to germany after brexit.may join the exodus. this week, a city of london delegation is heading to brussels to appeal for a free trade deal to preserve a sector that generates 12% of britain's income. jens torpe is the danish publisher of a daily business newspaper. >> i think inevitably a number of bankers and institutions would have to move over to the continent. it's about half a million people working here. i think you would see at least some 50,000 moving out. so, i think it's going to have quite dramatic implications for the city. the latest growth figures for britain put us down on the same par as italy. we used to be number one in the e.u. so everybody agrees there is a crisis coming. >> reporter: london's cosmopolitan borough market is flourishing again after last month's islamist terror attack in which eight people were murdered. some traders favor a so-called soft brexit, which would permit the continued free movement of goods and people from the continent. a hard brexit would mean the re-imposition

if that happens again, -- david: danny blanchflower of dartmouth and jordan rochester of the nomura.d design obamacare in his advising trump on it tends to appeal -- to repeal it. we are joined by dr. zeke emanuel. live from new york, this is bloomberg. ♪ >> this is bloomberg daybreak. i am emma chandra in the hewlett-packard enterprise greenroom. tomorrow one daybreak, the former u.k. ambassador to the u.s. david: this is bloomberg. i am david westin. most of the talk these days is about the politics of health care but we have not focused on the burden on iraq economy and on our businesses of the current health care system. warren buffett addressed this at the recent berkshire hathaway meeting. medical costs are the tapeworm competitors --'s competitiveness. "our health costs have gone up and will go up a lot more. that is going to have more trouble, regardless of which party is in power or anything of the sort." dr. zeke emanuel has spent much of his career addressing the cost and value of health care. he served as an advisor in the obama administration and is now medical ethics at

chinext -- .ordan rochester of nomura manus: novartis, amid early signs of a revival.he ceo next on bloomberg. ♪ anna: welcome back. bloomberg daybreak europe, 7:18 in london. euro stocks 50, german ten-year yields and the july market. all of those featured on this graphic we have. just a snapshot of where we are. we are expected to open weaker on the european equity markets. those cries when you consider the headlines around health care in the u.s., perhaps there is still some trump expectation in markets and rolling through as we get disappointments like overnight on health care. this is the dubai equity market for you. come by .3% -- down by three point -- .3%. juliet has your business flash. manus: -- juliette: toshiba shares have soared in tokyo trading as greenlight capital revealed it took a stake in the conglomerate during the second quarter. wagering the firm is toshiba shares will rise once it exits its money-losing contracts tied to westinghouse. lufthansa has raised forecast after operating profit doubled in the first quarter. adjusted earnings before inter

they have hired nomura and mitsuko for a bond sale. taking a look at the laggards. did not meet the market. toshiba falling for a 10th straight day amid low trading falla them, the stock down 6.4% today. 2.25%, tradingn volume quadrupling this monday. >> thank you. china has hit out at the u.s. after the trump administration sent a guided missile destroyer near a disputed island in the south china sea, another sign of renewed tensions between washington and beijing. we have not talked to much about the maritime tensions recently. it has been mostly north korea. is this the ending of the xi -trump honeymoon? a ship senthe miles of anutical island between the philippines and vietnam in the south china sea and claimed amongst others by china. chinese state media and the government hit back, calling this trespassing by the americans, saying they dispatched their own ships and planes to monitor the u.s. ship as it passed through this area. this is in the context of other areas within the relationship thaten china and the u.s. are potentially putting tensions on this rela