i want to talk about ams and osram. osram giving ams the go-ahead to put their bit offered.o to decide upon. we will see more money from bain and carlisle to outbid ams. osram is higher. earlier, we spoke to the ceo about this bid. take a listen. >> this is a very sincere, professional agreement. we had a very professional and constructive discussions with them. against that backdrop and rest assured we looked at all stakeholders at osram. we support it. we think it's a very critical -- credible offered to have. matt: that was the chief finance t.ficer from osram lich our surveys show that today's pmi readings will slip even further with the factory sector seen contracting for a seventh month. french numbers dropped imminently with german numbers at 30 minutes past the hour. bob parker, investment committee member at quilvest, is still with us. we talked a little bit about the u.s. economy. you expect to percent plus 2% plus growth- there. what about europe? are we in trouble there? bob: the first component is the european service sector. this is the one bright spot of the g

what exactly have we heard from osram in response to this latest offer? >> nothing so far.hey are probably having a statement as of today because they have to say something given that this offer now is 10% more lucrative to shareholders than the offer put on the table by bane and carlisle having said that, there might be a little bit of a legal problem here because the board of osram has already agreed to a standstill agreement with bane and carlisle and this gives them a period until early september to actually finalize their bid so, what happens now is that the austrian sensor ams is kicking in with a better offer but that means also that osram has to waive that standstill agreement. the likelihood is quite high because we have a shareholder rejecting the deal from the two private equity players saying that the bid is essentially too low and now with the new bid on the table, that should be actually quite a sweetener for them to also accept that offer going forward. the new deadline is august 15, which ams says this is the deadline they want to hit from osram whether they

osram trading to the upside. follow oil a standout -- tullow oil a standout story.solid day. i want to highlight the airlines. we see what is going on in hong kong. down 2.45%. some of the other european airlines have been trading down as well. i'm not sure you can directly correlate it to what is going on in hong kong. very quiet market. a tight trading range throughout most of the afternoon. that is look at the european close. vonnie: in the u.s. we are seeing yields lower and stocks lower as well. the s&p 500 dragged lower by banks and energy companies. -- and the twold 10 spread just above eight basis points. topped 60 ae peso little bit early. we are back down to $55, but it is still weaker about a fifth of what its value had been versus the u.s. dollar. let's take a look at stocks being on the move. you have a deal being outed viacom-cbs. viacom down and cbs lower fractionally. the terms of the deal we are hearing about would give cbs a slight premium. cbs shareholders and investors, both companies are frustrated. maybe it is just a timing thing but right now

looked -- osram licht falls as a result., complaining about the trade environment. by 2.5% on thewn back of those numbers. let's get a first word news update. >> oil is rebounding from a seven-month low as saudi arabia looks to extend the slide in prices -- stem the slide in prices. reality will not tolerate continued price weakness. weakness isil driven by the trade war and a surprise increase in u.s. stockpiles. yields mayry eventually go negative, according to pimco, which says it is no longer an absurd notion. 11 countries have negative yields. pakistan has suspended trade with india and downgraded diplomatic relations after new ofhi revoked decades autonomy for the disputed region of kashmir. india's foreign ministry did not respond for comments. time may be up for italy's front populist coalition. the leader is hinting he could put the public -- pull the plug if his five-star partners do not step up. reached --nt is not a detente is not reached, they could face new elections. the victoria's secret founder says it is a

nejra: things are heating up in the battle for osram. there has been a rival takeover bid.s up the pressure on bane and carlisle. the $3.8 billion offer from the u.s. buyout was called to low. great to have you with us. thank you for joining us this morning. has endorsed the main and carlisle offer. do you have concerns about the offer from ams? >> thank you for having me. in the board met decided to support the agreement and the offer. the funding we looked at looks viable. from that perspective, we decided to support the deal. i have to ask you, ams wanted the bit, then they pulled out, then they submitted again. it looks like there is a credibility gap with ams and that they don't really know whether they want to be in the steel. that does not a sent out a store for the future of a win. >> if you look at what they provided to us from a funding , and what has now been included in the agreement, i have to say this is a very sincere agreement, a very professional though agreement. we have had professional discussions with them. rest assured that we looked at all stakeholder

that offer was accepted by osram's board.t was rejected by top shareholder -- by the top shareholder. francine: thank you so much. the bid for full control has started on the beach. he is on the campaign trail after pulling the plug on bullish government last week. he is calling on swift elections. tadeo. us now is maria is he ready for an election? morning.od he is 100% ready for this election he wants this election. he went out here and speaking to people, going into the water, shaking hands. he is in full campaign mode. italy. to the south of he said i am ready for it and investors have nothing to fear. -- nothing to fear because we are not leaving the euro. let's take a look. >> an exit from euro for the euro is out of the question and not being discussed. what we are discussing about, find wrong and want to change our rules on immigration and taxes. there's no plan to exit europe or the euro. maria: that was matteo salvini who told me he will double down on this idea that italy needs a fiscal shock he wants to cut taxes.

. >> and osram cleared the way for a takeover bid from ams.sram waves an agreement that kept them from making an offer to challenge a bid germany's financial regulator has ten days to review the proposal before ams can launch it officially. the company expects it to be done before the offer expires on september 5th in which case, the proposition will be extended for both to be considered at the same time the company was on track to meet it's full year profit and it is on track to decline in 2020 on global trade concerns and market sentiment. >> china will publish a list of unreliable entities soon as the trade war with the u.s. keeps up more on that after the break take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or, here. kick your antacid habit with prilosec otc. one pill a day, 24 hours, zero heartburn. they use stamps.com all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. >>> good

dani burger is looking at osram licht. annmarie hordern focusing on pandora.s is, i assume, the jewelry maker? >> that is right. had 2019 guidance they kept in line, and while they did report operating but was-- it declined, better than expected. lots of calls to the upside. the first report under the new ceo manus caught up with earlier this morning. >> we should get each of friendship bracelets. >> i would love that, matt. matt: charm bracelets. paul jarvis, what is the story with casinos? >> casino has announces the second phase of an asset disposal program. you will recall this company has been beset by high debts. as a result of that, has announced the plan to raise two and a half billion euros by the first quarter of 2020. it wants to raise an additional 2 billion euros on top of that by the end of the first quarter of 2021. that is mainly coming from its businesses in france. it has already said it's going to cut its dividends. this is going to be taken very well this morning. shares already 20% off there may low. has been inlicht the spotlight in the m

this puts pressure on private equity companies to raise their offers, especially as osram's biggest shareholderreholder allianz has called that bid too low. earnings have suffered as the company is heavily exposed to the automotive industry. about 40% of revenues at the end of 2018. it has also issued a series of profit warnings and heritage very public spat over strategy with its former shareholder siemens. company will the lie in the hands of its shareholders. bloomberg theg takeovers allow them to choose between competing business concepts, and whichever bid wins, they need at least 70% of them investors in order for offer to be successful. it will likely have until october to decide. guy: thank you. sorry, vonnie. italy's matteo salvini is speaking right now. he's briefing reporters. he's just come out of a meeting with president mattarella. in terms of what he is saying at the moment, the league is united. he wants to act in the best interest of italy. there have been a lot of accusations, particularly from giuseppe conte. the former prime minister suggesting he acts in the best interest o

osram licht giving the green light for a miss to go ahead with -- ams to go ahead with their takeover bidding wars, health the biggest again on the stoxx 600, up almost 29% on reports that two companies are competing for a 40% stake in its company. francine: thank you very much. let's get straight to the bloomberg first word news in new york city. headwindsce against from the trade war and low-inflation. that's how the federal reserve saw its interest rate cut last month. at the time, chairman jerome powell called it a midcycle adjustment. minutes from the july meeting reinforced that. the fomc sees a quarter-point rejection as part of its -- the british bank among the first global banks to publicly address the crisis. it drew half of its pretax profit from hong kong. 2020 ision by fiscal what the u.s. congressional budget office says the u.s. deficit will widen to two years earlier than expected. it says the outlook is challenging, the federal debt unsustainable. it would be the first time the deficit has exceeded the $1 trillion mark since 2012. that's when the u.s. was recovering f

ams to the downside, more than 2% as we've learned overnight osram is in talks.rump the accepted bid from the vein and carlisle. downside offon the of the value downgrade. matt: stock movers on this down day. the yield on long-term debt is nearing an all-time low. on the two's, tends spread, the tightest since 20 -- 2007. the same phenomenon is happening all over the world from china to australia and europe. -- mark said the flight to duration is due to "concerns negative rates will move to u.s. shores." ,acquarie bank --eimear daly emea fx strategist at macquarie bank the still with us. when do you think about the u.s. ten-year falling to record lows of below 1.3%? i think it reflects markets' concern we are going into a period of secular stagnation, especially with significant moves in the 30 year yield. if you look across global markets and the low level of global growth, it doesn't seem that far off. it doesn't seem that unbelievable. certainly there are reasons the natural interest rate would be lower in developed markets. if you look at demographic factors

lexbidding war for osram could be heating up.rlisle are considering increasing their bid for the lighting from if their rival goes ahead with a formal offer. the buyout firms are discussing whether a bumper that's close to our matches the competing bid would be sufficient to win over shareholders. apple plans to rollout its apple tv plus subscription service by november. it is part of the tech giants drive to reach $50 billion in service sales by 2020. the company will introduce a small selection of shows but expand the catalog in the coming months. that is your bloomberg business flash. francine? francine: thank you so much. new coalition government in the making? italy's five-star movement and democratic party are weighing on alliance to undermine matteo alvini's power play. the prime minister is due to address parliament later today. it may lead to a confidence about and his potential resignation. still with us is caroline simmons from ubs global management and sonja laud from legal and general investment management. there is