just about 24 hours ago the china ppi cpi data, and the ppi year-over-year stabilized at 5.5% after deceleratingths, and the cpi came in steady at 1.5%, basically holding steady. the question is, where does inflation go next? will it solve property markets, construction in china, reduce prices, pressure on input prices, commodities, bring it down even further? why does it matter for janet yellen? let's take a look at a chart. #btv 646. you will see two very simple lines. you have the u.s., the white line, the court pce. the blue line is china's ppi year-over-year. you can see on the far right-hand side of the screen, we've had this declining year-over-year inflation. 5.5%. go over here. here is the fence court pce deflator. d's core pcee deflator. it is down to 1.4%. was interesting is in the middle of the chart around 2012. look at how china's ppi peaks around here, and then look at deflator, look how it starts going down. a little uptick here, a bigger uptick, then this one starts going down. when this line, the core ppi for china, started really moving higher, people who follow this link and

very quick question on ppi.. in some ways it was expected. there is this deadline coming through. in 2019. let's look at lloyd's members, the 2016, i don't think they really are jimmy did a lot or set aside a lot for ppi claims. it was only expected they would be increasing as ppi figures, which they did this time around. but hopefully what lloyds have suggested is that this ppi should see them through until 2019. i guess that maybe we are seeing the beginning of the end of the surge in ppi claims. let's not forget there are plenty of other issues in the financial sector. think very much. let's replace your distinguished features with the markets! you can see they are down 6.8%, british tobacco. i'm just trying to get my head around a lot of news coming out on the independent review that i told you about, that will be called into building regulations and fire safety after the grenfell tower incident. i said they did not have any figures on how many buildings had failed this combination of tests, well i do have s

cpi and ppi numbers in about 20 minutes.is is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in hong kong. having a look at what is going on in south korea, influence peddling concerning the ex-president. jay y. lee looking at being the in jailder of samsung on corruption and bribery atrges, refusing to testify the president's trial at the moment. the south korean ex-president will not be attending court today, being blamed on health issues. as soon as we get more, we will bring it to you. continue our conversation. follower ofas a these meetings, in your view, what was achieved, if anything, and what about previous meetings? where have we moved to in previous meetings, and how far have we moved in this one? think there were a couple of positive steps. if you look at the section of the declaration on overcapacity and you see the commitment that is overcapacity on steel and other commodities and the commitment to report by august and make policy recommendations i

ends thepe is this reserve for ppi.g those two 9 billion pounds of reserves related to the ppi issues, but the government has put an end date to the ppi claims, so we hope this recent 700 million pound reserves will bring the issue to a close. yousef: that was the ceo of barclays there. that's get you some of the key corporate to watch out for. the lowest analyst estimates. reaction likely today. they're saying operation expenses rose 45%. they had an increase in an impairment charge. also watch out for saudi investment bank, they are reporting after the close, or reported after the close, second-quarter net income of 456 million saudi reals. one of the heavyweight industries earlier, the stock is up 9% for the year. zero -- fourand buys, 11 holds. this is bloomberg. jonathan: from new york city, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, the u.s. economy rebounds, but inflation forces fade, raising questions about the fed's next move. at&t gets a

>> our hope is that this ends at the reserves for ppi.s taken close to 900 million pounds regarding the ppi issues. the government has put an end date to those claims so we hope the recent 700 million pound reserves will bring this issue to a close. joining us now is chris wheeler, a bank analyst at atlantic equities. --t do you think the results what do you think about the results out of barclays? >> i think it is good progress. the ppi hit was very disappointing. bank,e look at the u.k. the investment bank is interesting. i just put together the numbers. the europeans have lost market share again this quarter. , year on yearnce compared to the u.s. banks. barclays really was challenging the big five u.s. banks three or four years ago and now it is going down a different route. one they hope is more profitable. driven by returns. make of theo you performance in the fx rates? disappointed. that was the story in the first quarter. they have more excuse for poor performance in those areas because a lot of other banks have been performing ba

you have been looking at ppi. £30 billion has already been paid out over recent years. these are huge amounts of money. the banks could have been lending out that money to businesses and keeping the economy going. 0n the flip side there has been £30 billion ball cash for people to spend in recent years they would not have taken into account before. we talk about economic growth. people think that might have helped to prop up the economy a bit. the banks are anticipating more people claiming ppi. it is almost like the adverts, you'll most become numb to them, do you? the calls and texts, you sort of think, i'm not going to do it now. every time we talk about it, you mention to somebody there is another £700 million put aside. lloyds think there will be dealing with 9000 cases every week up until the end of august, 2019. a lot of people still thinking making claimants still going through the process. on another subject, sean, brown or red sauce? brown. i am put on the spot. always brown. are you a northerner? i am f

deadline for ppi has been extended. will take on that or could there be more? this endse is that the reserves for ppi. the bank is taking close to 9 related tonds, oh ppi issues. the government has put an end eight to the ppi claims and so we hope this recent 700 million pound reserve will bring this issue to a close. nejra: with us is james ferguson, founding partner at macro strategy partners and nandini. james, let me turn to you first. i am wondering this quarter that today, isd reporting this the last quarter of structuring related charges for barclays and a clean earnings view ahead from here. james: i think it is hard to say. in a big multiyear, we are talking a decade now, banking crises, you get hit in years wanted to buy the uncontrollable losses on securities and then you have three to five years of taking loan-loss provisions and by the time you've got through that process and at the same time rebuilt your capital which is quite an achievement for the banks over nine years, you come into a badge of honor. th

the overall theme remains ppi is probably headed downwards for the rest of the year. nejra: russia wanted to aid the trump campaign. it is official. the latest reporting is that donald trump jr. was told in an email that he would receive damaging information about hillary clinton at a meeting with the kremlin connected lawyer from russia. the email says the russian government was trying to help his father's election bid. is it obvious that any kind of crime has been committed here? >> not yet. i am sure everybody, including us in the news bureau, are trying to figure out what the legal definition of collusion is. there are election law issues. you're not allowed to take anything of value from a foreign government. regardless, it is not good for mr. trump's son. >> i spoke with the source close to donald trump jr. who said they wanted to get this information out as quickly as possible, all in one swipe so to speak. they feel they did not do anything legally wrong. the attorney statement suggests as much. there is no question that this is bad. politics really could clou

many of them are legacy, so particularly ppi, they relate to quite some time ago mis—selling.im compensation for that mis—selling. so at some point these conduct costs will start to recede and will focus more on the underlying progress, hopefully positive progress, from the bank going forward. back to those results from heathrow. business at heathrow airport keeps on growing. its revenues in the first six months of the year were 4.196 first six months of the year were 4.1% higher than the same period last year. passenger numbers were up the same amount. so, how are plans going for the new runway? earlier this month hotelier, surinder arora, put forward his alternative plans for the third runway which he said would be £5bn cheaper than heathrow‘s scheme. british airways — heathrow‘s scheme. british airways — heathrow‘s biggest customer — says it likes the scheme. my colleague alice baxter spoke tojohn holldan—kaye, chief operating office at heathrow airport and asked him whether the cheaper plan was possible. it is notjust about having the cheapest project. we have to make sure

when you look at the ppi, it suggests factory profits are heading in the right direction.long as ppi stays positive, that is not a bad thing. servicing debt is such an issue for china. but at the same time, we are a long way from the peak in february when we were 7.8%. we are not seeing any correlation between the ppi story and consumer prices, which remain tepid. maybe a one-off restocking of inventories by companies, which is what skewed that number. the overall theme remains ppi is probably headed downwards for the rest of the year. >> russia wanted to aid the trump campaign. it is official. the latest reporting is that donald trump jr. was told in an email that he would receive damaging information about hillary clinton at a meeting with the kremlin connected lawyer from russia. the emails says the russian government was trying to help his father's election bid. is it obvious that any kind of crime has been committed here? >> not yet. i am sure everybody, including us in the news bureau, are trying to figure out what the legal definition of collusion is. there are elec

endsr hope is that this the reserves for ppi/ . taking close to 9 billion pounds of these reserves related to ppi issues. the government has to put an end date to the ppi claims. 700o hope that this million pound reserves will bring this issue to a close. >> sticking with the consumer credit story and united kingdom, a different part of it, the bank of england has said that u.k. lenders are jousting with the fire of complacency. has that forced you to change any of your policies in regards to credit cards? >> we are definitely focused on it. we have been in discussions with the bank of england. what we have seen is a pretty sharp increase in consumer spending. that has been matched by an increase in consumer credit. per capita consumer credit now is at a level roughly to where it was in 2008. that being said, unemployment stays very low. we are watching. we are adjusting our underwriting standards accordingly. we want to remain a bank with one of the highest quality consumer credit loan portfolios. we are focused on it. we are focu

rish, the ppi prices out of china. isn't it nice?tion changes a search last time with five point 5%, nothing compared to the beginning of the year. looking for pretty much the same five point 5%. g-20 over with. >> it felt more like chi 19 versus one. rishaad: absolutely. yield, bond rout we saw last week. what next for treasuries and beyond from blackrock. >> looking forward to it. that is it for "daybreak asia." market coverage continues. this is bloomberg. ♪ rishaad: i am rishaad salamat. on g 20 up with strong words trade and climate change. ivanka trump stepping into the spot light, critics asking why she was allowed to sit in for her father. raised eyebrows there. also this hour, the latest inflation numbers from china, early indications of more stability in the economy. this is "bloomberg markets: asia." ♪

extra £700 million to meet compensation claims for mis—selling payment protection insurance, that's ppi the london markets this morning. lloyds also having to put aside additional money for claims, as well. let's ci’oss money for claims, as well. let's cross over money for claims, as well. let's cross over to asia now. let's go to asia, where coffee giant starbucks is splashing out in china. it is buying out its eastern chinese partners, spending $1.3 billion on the 50% of the business it doesn't already own. it's the biggest deal starbucks has ever done. mariko oi has more from singapore. chase the reaction to this given it's the biggest deal the chain has ever done? yes, it goes to show how important china has become for the coffee chain, it is in fact the fastest growing market outside the united states. especially with the number of stores. as you mentioned, they already own 1500 outlets fully but spending 1. 3 billion to buy the rest, 50% stake in 1300 other stores. the goal is to own 5,000 stores. the goal is to own 5,000 stores in mainland china by 2021. but the announcement came

and ppi, what happened there? lloyds have set aside £18 billion.. there will bea claims, of august 20 19. there will be a final rush of people realising, often prompted by claims companies advertising, that they can put a claim in, said the banks are setting aside more to pay those claims when they come in. thank you. the police watchdog says figures gathered by the bbc, suggest there are major inconsistencies in the way police forces across england and wales are enforcing drug driving laws. her majesty's inspectorate of constabulary says data from a radio1 newsbeat investigation — looking at the number of arrests under drug driving laws brought in two years ago — suggests that some forces are more proactive than others. dan whitworth has the details. out on patrol with cheshire police. they are on the lookout for anyone who might have taken drugs and got behind the wheel. hello, driver. a suspicious car is pulled over. the driver is tested for drugs using a sample of his saliva, and it comes back positive for cannabis. he is arrested, which means

ppi is up for june. that is back in line with the estimate, well off the 7% reading four months earlier. saying that's the blue line right there. we are down from the economist forecasts. china was very much held up as a beacon of global reflation trade. it kicks off in the middle of 2016. for the world economy, slower ppi and sobering news. the prices were going to be driven up in china, that would help profits and wages. in thetes into training u.s., how is it looking over there? julie: we are led by technologies. they are trading higher. that is helping the major averages. there is a split as well within the chips. i pointed out earlier. i want to look at the upside of that split. we are looking at intel and nvidia. tectonic shift in computing. he thinks that will help nvidia. intel is based on the data center model. froma will benefit parallel processing. shares are trading higher today. one of the areas of weaknesses retail. it's not just abercrombie. they took itself off the table as a potential sa

the largest bubble in government bonds is in europe with inflation is close to 2% and ppi inflation is close to 3%. in the largest mobile inequities is in the u.s. markets on the s&p, for example, where price-earnings multiples are in excess of 30 times adjusted. in terms of valuations, the market is moving. let's start with bonds. about how there is usually a call before the storm. when it comes to the selloff we saw in bonds led by european government bonds, that began last week, is that the storm, or was that a precursor to a bigger storm? mr. filia: i think is the precursor. i don't know if this time around will eventually bust into something bigger than it actually has done. but it could very well be. the 10 year treasuries could continue its ascent and we could see the yield going closer to 2.8% or 3%, which are the levels it looked like it was pointing to back in march. and then failed. i think we could see that type of movement. the cents.a guide in whenever the past we've seen treasury volatility before, subsequently we've seen that movement in rates very big, close to 100 poi

domestic demand, the lower bars, ppi's. positive after negative prices over the last four years. that the how to attack -- about to attack excessive cash >> we are seeing a weaker dollar index of 9313. at so much -- to them, it is little bit of weakness. i will show you some of the currencies i was talking about. littleadian dollar is a weaker today. the mexican peso the same. when it comes to indices, the g20 movers are seeing a drop elsewhere. and you can take a look at the commodities yourself. steel is rebounding a little bit. .> let's move it on central bank watches will be watching out for two big events this week. -- fallingl risk aversion to the precrisis numbers. >> is that a chart we should be cheering? >> i wish i could say the former. i'm still not quite sure that is the case. liquidity provision has a lot of markets to recover in a lot of places in you have this where they are talking about changing policy. gradual just a slow, grind to the fed word? >> the biggest thing is to not go too fast. it creates a situation where they are more likely to run into a situation.

staley says this is it as far as they can see on ppi, what we heard from lloyds is that the -- they aretoring in a higher number of weekly claims. before,e said this repeatedly, that the past was behind them. of have to imagine the bulk it is behind him but you're are still seeing hundreds of millions of pounds of charges in the quarter. this is weighing when business and activity remains muted and other parts of the firm. alix: thank you. still a cloud? wasthan: this scandal massive, if you live in u.k. come you get a phone call every five minutes about ppi, you were given a loan and missed payment protection insurance, no one knows they were actually sold it and everyone to go out there and claim literally thousands, if you were mis-sold ppi and the banks have been paying out billions since the crisis came out and many people in the u.k., they think the ppi payouts were more effective than qe because the money went straight into the pockets of the consumers who went out and spent it. the money was so much, lloyds bank 18 billion paid out and barclays at 9 million. the: bp, the payouts

claims are expected to be down slight slee while the ppi is expected to be unchanged for the month. >es releasing quarterly results and this must be important because, wow, he's here, phil lebeau. phil lebeau. phil lebeau. >> that's for sure. >> we are all benefiting from this. >> i'm good. let me give you the numbers from delta. a slight miss for the 2q earnings coming in at $1.64 relative to the earnings estimate of $1.67 a share. revenue in line with expectations at $10.8 billion. the qq margins, and we already had some guidance from them to expect it to be 18.5%. came in at 18.4% that compares to 17.4% last year couple of key metrics to keep in mind passenger revenue per available seat now, that's the big metric in the industry, up 2.5% that's at the higher end of their previous guidance. but the cost her available seat mile will get some attention when you normalize it for the new pilot contract up 5.5%, so that's a hefty increase. the guidance for the third quarter, we'll get more details on the conference call at 10:00. margins between 18 and 20% this is what they have been tal

northeastern chester county in southeastern pennsylvania until one fifteen am at seven one thousand ppi em doppler radar indicated thunderstorms producing heavy rain into the warn. flash flooding is expected to begin shortly in the areas of heaviest rain some locations that could experience flooding include reading norristown pottstown west north and east north and one missing birdsboro college cuts down hamburg fleetwood sinking spring laurel dale trapp greenville and we're still rainfall amounts of two to four inches are possible in the warren area do not drive through floodwaters the water may be deeper than you think it is a vehicle can easily become trapped in floodwaters endangering its occupants and those who come to their rescue if you live in a flood prone location be prepared to move to higher ground. as objects of asha's a dutch boy would say if she could keep it you want to go in the goose machine and get a little. much about. all right let's see what the racing team has to say will they win or will they not win who knows what but let's see what their hopes are golden age an

house price figures are expected to be released at 9:30 with cpi, ppi and rpi's to dissect the eyes -carney and the financial regulation body will be happy. the momentum of house prices 50%, buted nearly still, inflation is up there, 2.9%. that is what we are expecting today. or are you in the balance of risks for the bank of england and the dissent westmark can grow? >> i think it can't shrink. the two voted for rate hikes last time are very unlikely to roll back and it is possible that mark carney himself becomes a little more hawkish. isll, i think the core view that they are not going to get to a hike and this year. for the moment, the market is priced around a 50-50, but it looks like the economy will soften more than is in the bank's forecasts. given what carney has said is that if growth delivers than perhaps they can raise rates. if growth isn't going to deliver, they won't raise rates. our call is they won't go. there are -- is a 13%, 14% chance of being priced in for the next meeting. and for the end of the year, about 50-50. anna: but this is an live in your perspective? la

ppi in china, this reflation, very close. almost a one-to-one correlation.ging through the data, it salesus, when you extract , activity has come back in the asia-pacific. david: it is 9:29 in the morning. markets here in china and also nice, summer, midmorning. it certainly is "one sweet day." the opening ofl markets. i am david ingles. it is one fine day here in sydney as well. i am haidi lum. we are waiting for inflation numbers out of australia. numbers.pid -- despite growth coming along at a good rate. wall street, just getting that .eg up to get more record highs a robust earnings season so far. taking a look at the inflation numbers, take a look. ak andwere expecting we we got weak. puts the annualized rate back below the rba target, 1.9%. a slightly better story. and strips out the seasonal factors. euro .5% for the quarter. take a look at the aussie dollar. it has fallen. it is down below $.79, which will please the rba. $.79 mark.the weaknesseen a lot of in the commodities prices. i want to call up a chart for you. you, the index diverging. that ma

ppi policies were mis—sold to cover loan repayments if people fell ill or lost theirjob.now been repaid by the banking industry. a gang which carried out a series of raids, including stealing more than £a00,000 worth of designer goods from footballerjohn terry's mansion have been sentenced today. let's speak to our correspondent andy moore at kingston crown court. give us more details of what they did. well, this court heard today thatjohn terry made the mistake of posting to social media the fact that he was on holiday. back in february, he told his 3.4 million followers on instagram that he was away in the french alps. he posted a picture of himself and his wife with a message, "a great few days away skiing with the family." after that, his mansion in surrey was targeted by burglars. they stole designer handbags, one of them alone was worth £42,000, £200,000 worth of jewellery was stolen. about £18,000 worth of rare first editions of the harry potter books signed. john terry's master bedroom was ransacked. not happy with that on the first day, the group came back on the

the good news is that ppi will be buying them by 2019, we know about the africa sale, but the companystill restructuring and some of its loan losses have crept up a bit, particularly credit cards. what about the underlying business? if it is making £2.5 billion in six months then that is not bad. it is actually pretty healthy. a similar story with lloyds, making £2 billion per quarter. if they can keep their noses clean and keep these one—off items to a minimum then you have profitable institutions. but legacy issues are coming back to bite them and they are finding problems with trading at the same time. four executives are going to end up in court, aren't they, in 2019? about how they raised money in qatar during the financial crisis. it is not good for the reputation. intriguingly it is barclays plc rather than barclays bank which will find itself in the dark. the accusations of fraud and how the company raised money, it relates to something ten years ago and the bank looks financially sound now but it isa looks financially sound now but it is a blow to the reputation. taking the g

do without medications to prevent reflux. >> we'll talk about some of those, but just lastly the pp ppi'sugh are prescribed. correct. >> absolutely. >> okay. and the headline here would be to try to cut down on them, always do what the doctor's permission or what would you say for those who get those over the count prescriptions? >> i would say use other opt options. and to cut down on them and speak with your physician. if you've been on it for longer than a month -- >> morning tums every day at your desk. >> you need a work up. >> all right. let's talk about some of the things that you brought as far as what you can avoid. what you should avoid if you have heartburn. >> if you suffer from heartburn think that that make it worse caffeine particularly coffee, chocolate. so you want to cut back on that and l drinking, um, alcohol, um, is -- might be good for the soul sometimes, but not always good for the gi tract. >> okay. so that could increase your reflux. spicy foods and citrus see foods, tow 98 toes anything we heavy spices, lots of pepper will increase your stomach acid make the refl

jumpingnd quarter, ppi .5%, an increase of 1.7% year on year, coming off a low base from the previouske a look at how markets are faring, a roller coaster in the u.s., i huge selloff when it comes to tech stocks. amazon disappointing, the big story. let's look at how the shanghai and hong kong markets are joining the fray. >> they certainly are joining the friday selloff. the hang seng down line more than 100 points, a loss of 1.5%. it has been significantly higher , so these markets are coming off multi-year highs or i. the shanghai composite off .4%. the csi 300 giving back what it gained yesterday. generallye seeing today is read. leadingh korean kospi declines, the market coming off record highs it had a good run yesterday on the back of samsung's numbers, but down one person at the moment. a lot of these commodities markets getting hit as well. you have got this oil story, above $49 a barrel. the energy producers not buying into that day. singapore banks had a good run yesterday. today, less than what the market was looking for. also weakness out of the tech stocks that had done

and ppi as well. yellen is front and center, two days of testimony to congress.oning, particularly on the second day. i am rishaad salamat coming to you from bloomberg's asia headquarters. haidi: i am haidi lun in sydney. lot of extra spanners in the works ahead of that testimony. no doubt she will be asked about her potential placement. presidentaying trump's top choice is gary cohn, a controversial choice, if true. let's get over to sophie with the hong kong open. waiting to see what janet yellen has to say, but the open on the mainland in china and hong kong, chinese stocks up .1% after slight gains at the immediate open, so set for a second day of gains. the hang seng climbing for a .8% as trading volumes pick up 30% above the 30 day moving average. on the data front, we could the getting china's june money supply and credit data today. giving the movements and treasuries, now a pickup in asian bonds. in the currency space, the climbing .2%, strengthening after the pboc said a stronger fix -- set a stronger fix. there is a piece in the pboc newspaper that chi

as long as ppi stays positive, that is not a bad thing. but at the same time, we are a long way from the peak in ebruary when we were 7.8%. we are not seeing any real correlation with the p.p.i. story and consumer prices remain tepid. may be a one-off restocking of inventories by companies, which is what skewed that number. t is probably headed downwards or the rest of the year. >> russia wanted to aid the rump campaign. it is official. donald trump jr. was told in an email that he would receive damaging information about hillary clinton at a meeting with the kremlin connected awyer from russia. the e-mail says the russian government was trying to help his father's election bid. is it obvious in the crime has been committed here? >> not yet. i am sure everybody, including us in the news bureau are trying to figure out what the legal definition of collusion s. there are election law issues. you're not allowed to take anything of value from a foreign government. regardless, it is not good for mr. trump's son. >> they wanted to get this infor

ppi policies were mis—sold to cover loan repayments if people fell ill or lost theirjob.ndustry. more than 50 people have been injured, one seriously, after a commuter train crashed in barcelona. the incident happened during the morning rush hour at the francia station, in the city centre. reports said the train did not brake when entering the station, hitting the buffers at the platform. more to come on all those stories. in particular we will talk more about obama care, health care in the us and everything going on there. but right now we will pause for the weekend weather. still some sunny spells right now across scotland and northern ireland, but for much of england and wales it is cloudy. some heavy rain across wales and spreading across northern england. south eastwards across as the night goes on. still showers and wind into western scotla nd showers and wind into western scotland and northern ireland. overnight temperatures about ten to 15. windy with the rain for england and wales but the wind eases later in the night. tomorrow a lot of dry and sunny weather arou

this is finished good ppi for a year moving average. know we were back. power if the revenue line, why it is so important. richard: if the company has two ways to boost revenue, it can .oost prices or units historically, you had a balance of both. he was a pioneer doing this for an academic sometimes, pricing power in the economy, especially the goods producing sectors, has evaporated. if you look at u.s. inflation data and separate it into service and goods, we have had goods deflation for decades. tom: i will give you a nobel laureate kind of question. ofwe have the separation inflation, is chair yellen running a correct policy for business guys like you? robert: great question. overall, she has done a fairly good job. she has earned her spurs. the issue is look at corporations. the only way they get topline growth is mega-mergers. they are either having to do that to drive out activity, we saw the labor share issue. we have things negatively driving the share buyback. tom: economists at columbia and pimco, i will ask the question i appeared bob nardell

mps have described leaseholds as the "ppi of the house—building industry". examples the government cited included a homeowner being charged £1,500 by the freeholding company to make a small change to their family home, a family home which is now impossible to sell because the ground rent is expected to hit £10,000 a year by 2060, and a homeowner who was told buying the lease would cost £2,000 but the bill came to £a0,000. with me is our business presenter ben bland to explain more. some astonishing figures there, quite alarming. 0utline some astonishing figures there, quite alarming. outline the scale of the problem. according to the figures there are some 4 million people living in properties where they own the least but not the freehold. the majority are in flats but at least a third of them are in houses, which is why the government wa nts to houses, which is why the government wants to do something about this and as we heard from those examples, it can be costly because when you buy a lease, you are buying the right to occu py lease, you are buying the r

ppi policies were missal to cover loa n ppi policies were missal to cover loan repayments if people fellrived at a site in lancashire yesterday. protesters are continuing to try to delay the start of the fracking, and are holding a carnival by the site later. 0ur reporterjohn maguire has this report. while the party and the protests continue outside the site, inside, behind the thin yellow line, preparations for the next major step in uk fracking are taking place. this is a big dealfor all sides. local campaigner barbara richardson has fought this fracking site, known as preston new road, every step of the way and believes if shale gas is extracted here then other sites will follow. imagine these every two to four to five miles across this beautiful, rural place, known for agriculture and tourism. just imagine what it will be like. if you don't stop it now, you're opening the door, so you've got to stop it now. july has seen the local efforts here bolstered by protesters by the group reclaim the power. they've been trying to disrupt access, climbing on top of lorries, sitting in the road

we have the payroll nonfarm's jobs report tomorrow and ppi on friday. looking at global trade. we have been talking about g-20. we spent a lot of time talking about personality politics and not some of the critical issues like trade. come out of this meeting, if, indeed, we do, given donald trump's stance. has an indexy looking at the performance of 2017. on the right of the chart, taking a bit of a turn for the worse in 2017. the question is, will that continue? look at the relationship over the last eight or nine years, they have tracked each other pretty closely. is, can they continue to do so? i should point out, there have been some positive signs. japan and the eu negotiating a trade deal. there are good things about global trade out there. and then the united states and china start to throw things into the works. a reminder to look at the real economy. i am looking at perhaps an unusual pair. im looking at a chart of tesla, which i have inverted. that's the blue line. and you asked year treasury yields. 30 or treasury yields. i think it's interes

the top panel, the blue line is the labor cost, the white line is ppi. labor cost catch up to some of the inflation we seen, that could apply pressure to not the bottom line are the top, but the middle line. i think that will be pretty important here as we set out what this all means in a really important earnings season. but the first quarter we just had, that was the biggest jump in years, 15%, that now we get to the bigger numbers, i think. julie: and the other elements here has been politics. so the earnings do get even more important. i wondered when you are talking about, we are not seeing as much guidance being issued, if politics is a part of that equation. if people are waiting to her about tax reform, how health care reform or lack thereof could affect the bottom line, and do not want to go out on a limb and make the forecast given those factors. >> that is a big part of it. i had breakfast with someone new works with a lot of these ceos, and what he said is that these people are eager to go out and spend that access. we saw those things get ra

keep an eye on ppi data when looking at earnings. they are pretty closely correlated. nejra cehic in the markets. here is a look at some of the stories that have made it into today's edition. hasld trump junior's lawyer acknowledged his client received and email last year offering a meeting with someone who had potentially damaging information on hillary clinton. this came after reports the younger trump had been told it was part of a russian effort to help his father's campaign. manus: the second story is about markets. at 7:00 a.m., how is it weathering the squeezing household finances? analysts seeing the risk for closing amid a market weakness and low consumer confidence. then you have jeffries who say the market share may grow due to better products. -- we're allthe doing some shopping. anna: finally, daybreak focuses on oil, goldman sachs $40 crude as a possibility of efforts to rebalance the market don't mayor fruit. if we don't see the necessary cuts from opec, very set of factors, we could see oil some 40. manus: hsbc may well be in focus. at the highest level

as your statement, you talked about 700 million in charges for ppi.ou're going to take or is there going to be more? >> our hope is this ends the reserves. close to 9 billion pounds related to the issues. the government has put an end date to the claims, we do hope that this recent 700 million pound reserves will bring this to a close. anna: sticking with the consumer credit program in the united with a, u.k. lenders are spiral of complacency. do you recognize that and has that forced you to change policies in regards to credit cards? >> we're differently focus on it. we've been in discussions with the bank of england. which we have seen is a sharp increase since the brexit vote. that has been matched by an increase in consumer credit. level where it was in 2008. unemployment stays very low. it, we arehing adjusting our standards accordingly. we want to remain a bank with one of the highest quality consumer credit loan portfolios. we are focused on unemployment which continues to be quite low. i think anybody should be mindful of the levels of the lev

many of them are legacy, so particularly ppi, they relate to quite some time ago mis—selling.ders. now back to those results announced earlier this morning by heathrow airport. half—year results from britain‘s biggest airport show an increased turnover of a.1% compared with the first six months of last year, and recorded a profit after tax of £2a6 million. passenger numbers rose 3.9% to 37.1 million citing the use of larger, fuller aircraft. earlier this month hotelier sir earlier aurora submitted profits at he said would be higher than a rival scheme and this has been welcomed by british airways, john holland—kaye, chief executive officer at heathrow airport, joins me. thank you forjoining me. miss aurora saying he can build a third ru nway aurora saying he can build a third runway provide billion pounds less than you. is he right? we have been working with airlines for the last six months to see how we continued to reduce the cost of building heathrow and committed a borderfor passengers and that is what we are getting too. it is notjust about having the cheapest project. we

you say that, but many people think it is equivalent to ppi in terms of the potential number of casesther way of solving it is if the competitions authority declares that unreasonable terms are so unreasonable terms are so unreasonable that they are enforcea ble unreasonable that they are enforceable and that. the stream of money going out, which will go the cost of buying fields back and put eve ryo ne cost of buying fields back and put everyone back in a better situation. the developers, wendy saldana field for £5,000 —— when they sold a freehold for £5,000... it would make it possible to extend was ground rent that has been paid. but there are ways forward that require attention. the select committee will look at this. i say this to the big investors of these companies. look out for the philippine interview. rerun it, put yourself in his position and start saying no what you're going to do to help government put things right. you're going to do to help government put things rightm you're going to do to help government put things right. is only a nswer government put things right. i

they had to put aside more for ppi scandal and compensation for customers.s in a field in east sussex to try to work out the best way of eradicating it. yvette austin went along to have a look. an unyielding invader of the plant world. it can push through tarmac, concrete, and even get into your home. japanese knotweed only succumbs to the toughest of treatment, which is why experts are experimenting with more eco—friendly ways of eradicating it. we have laid a membrane horizontally over this mature knotweed to see if it will contain knotweed or stop it growing. we have dug out a piece earlierjust to show you what happens. so this is a piece of rhizome and you can see here all of the pieces that have grown since around may. so you can see it doesn‘t really contain it, it causes it to spread laterally. that would be your garden and it comes up in my garden. you won‘t be happy with me. so neighbours are hoping now the land is in the hands of experts, they will eventually see the back of the weed, as its presence can affect the value of properties. so this is t

we have ppi down and traders are watching closely as well.of gains in s&p specifically, look at the big point gains here. we have had this rally in texas. the nasdaq goes for the fifth straight session. apple and microsoft two of the stocks, example of tech stocks that are strong today. financials bouncing back along with bond yields and ahead of earnings kicking off tomorrow morning. home depot an example of the retailers really and today in the wake of that better forecast coming from target. also, in terms of technology we are watching snap today. shares snapping back finally. this is a nine-day chart from the ipo. the first update we've seen in that period of time. shares of around 4% on the day although still down 12% over this nine session stretch. upgrading the stock to a buy from a hold, selloff since the first quarter result and ahead of next month, walk of expiration has created a compelling opportunity in the shares here. those shares getting a little bit of a boost. where watching health care, as this health care debate back and f

three months ago, four months ago, to a,'s were saying ppi prices, pmi, those have peaked and it is asas it gets, but june was an uptick surprise at 51.7, 51.4 for the caixin numbers as well. this speaks to the resilience and the chinese economy. let's bring in the commerzbank senior emerging-market economist to talk more about this. you are looking for 51.8 for this reading, so further upside, why? seen theeral, we have economic indicators and china have shown stabilizing momentum in the past few quarters. you look at the high frequency data and china, especially this prices, commodities prices am also on the rise, so the industrial production is definitely still relevant at this moment. the third, you can see global momentum still holding up. you can see the manufacturing data from europe and japan in recent months is still quite good, so that's why i am looking at a slight upside for china pmi. >> what about the inventory side of things? has run itse it course. also showing restraint when it comes to restocking. will that be a headwind? the stockingink and restocking process will ha

the other thing we have heard is lloyds will pay even more in ppi claims.om 2040 raised plenty of questions. charlie‘s outside our studio with some of the vehicles you could be seeing more of in the future. i think he will drive away if we do not get some answers. we have had loads of questions. yes, lots of practical questions. can you hear that noise? it is a little pinging noise. i have never sat in an all electric car before. there is some kind of thing going. we‘re not going to drive this one now. i will step outside and give you a look around. we have gathered some cars here, some are all electric, some are hybrids of engines and electric. we are looking ahead to the future. that date, 23 years ahead when you will not be able to buy petrol or diesel car, so it is addressing the issue of what we are going to do about pollution. the world we live in and the air we breathe, are proving to be real problems about what these streets alike and the air we are breathing. we have three people who know a lot more about this. we have jim people who know a lot mor

look at ppis most recently around the world with inflation rolling over just a little bit. wild card is probably just activity. look at china numbers. they were very good but there is always a pay back for stimulus. just a matter of time, data flow in the u.s. has been mixed at best. so we'll see what happens. i think really we're just making an issue over something that maybe nine months ago the market would have cared. but market is tired of the tweets. tired of repeal and replace. tired of washington, just looking at data. neil: the data for them has been very, very friendly whatever the politics. >> yeah. neil: larry, great seeing you. thank you. >> thank you. neil: one thing we learned from the media its obsession with things sometimes over which maybe it shouldn't obsess. things like this on health care legislation, whether that has any muster. the president we're told is telling republicans gathered there today they shouldn't leave downtown without moving and approving health care legislation that. is exact opposite what he said yesterday, he said ah the hell with it

there are a lot of concerns as well about the debt in the financial sector, the ppi inflation has startedwane a little bit, property has been overheating, residential property coming off. side of it, exports have been doing very well, so 6.8 is the consensus estimate. and we will probably get something right around that area. really in the heartland of the financial center in shanghai there, a beautiful shot. more analysis when it comes to china's national work conference and i look at the country's biggest economic challenges, quite a balancing act. later, the rise of the machines, beijing's plans for domination of the robotics industry. this is bloomberg. ♪ ♪ haidi: a quick check of the latest business flash headlines. li ka-shing renaming his property unit as he continues to diversify away from real estate into plane leasing and infrastructure. it will be renamed c.k. asset holdings. he is selling a 25% stake in canada's reliance. hong kong property shares have fallen since he spun off the business in 2015. toshiba agreed to hold off on the disposal of its flash chip memory unit. the s

ppi up 2% year on year, just above expectations the fed chair sparking a strong rally on wall street,he second day of her testimony begins this hour on what is shaping up to be a busy day in washington >>> plus, the president is abroad, he's in paris for his third foreign trip we're going to hear from him multiple times in the next few hour >>> what retail pain target boosts its outlook as traffic's improving. >>> and a live and exclusive interview with the cbs chairman and ceo, leslie moonves in the next few minutes >>> busy day on capitol hill fed chair yellen returns for a second day of testimony, later in this hour, this time before senate banking her comments on rates sparked the dow's rally to that record high also this morning, senate republicans set to unveil their revised health care bill, and the cbo will release its analysis of the president's fiscal '18 budget. some questions about whether or not the house freedom caucus is going to vote for this, unless there are specifics on corporate tax rates and more >> well, look, i still think that it's interesting that the fed come

the study found that drugs known as proton pump inn hibs or ppi's can cause savart of health problemsg bone fractures dementia and in some cases even death. >>> finally, do you ned vacation? i can use one. how about a trip around the world? yes, the new york times is offering the once in lifetime journey for whopping $135,000 a person. if you decide to go, you'll be joined boy several journalists from the new york times and the washington post and hey, maybe fox wants to send me. i'll willing to go. how does that sound? >> he will little trip around the world in we would miss you. so, no, you can't go. >> you might have to fight one or more co-workers for the spot. >> fox just heard the price tag and said no. >> the biggest mystery i want solved alien. >> thank you. >> that's what maureen said. >> i'm with you maureen. >> erin, this why. >> i watch enough ufo specials. i feel like there's something else out there and we have need to be informed. >> i knew we were bff's. >> rob kardashian and black mine for all the wrong reasons. rob kardashian could actually face revenge porn charges

. >> we did get the ppi number, the datadependant point and th kruks of the whole thing the core producer index a little soft and tomorrow consumer price index. >> if it's a soft number you can see rates then kind of back down, and then vyou will have that growth trade back on. >> no matter what the financials report. >> that's the one possibility. the market is very quick to move in that direction. you had tech leading again today. >> yeah. >> the same familiar growth names that people hide in. i do think yellen today, yesterday, all she really did was kind of walk back a little bit of perceived hawk ibanez from june. today she didn't do anything to disturb yesterday's impression, though in answer to questions she said, look, if you have a 2% inflation target which the fed does you have to work to achieve it, and a lot of the ancillary commentary was about how hard it is going to be to get growth to 3%. >> right. >> so it's kind of net-net, a little bit bearish on growth and inflation. therefore, leaving the fed perhaps in a position of not being able to go too far. >> right, and by the