i'm shery ahn.ing day in your very you are watching the european close on "bloomberg markets." ♪ mark: we will take you from washington to london and cover stories out of japan and germany in the next hour. here is what we are watching today. commerzbank shopping -- dropping the most in a month. we will look at what is draing down the orall sector for a second day. shery: turbulence in japan's markets and for global investors after the government's this golf -- fiscal plan underwhelmed investors. bmw pledges to defend their league in the world's luxury

and i will toss it back to you ladies and i do not know finds eking out a turn but after today, shery ahnaving and returning to hong kong. yes. ahn: thank you so much and i will see you at hong kong though. thank you for everything. much more to come up on bloomberg markets. prize-winning economist paul krugman. this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. scarlet: you're watching blue -- bloomberg markets. let's get to the headlines. mark crumpton has more from the newsroom. mark: hillary clinton's campaign says her transition to the white house if she wins in november. the unveiling of the transition project marks and

let's get the bloomberg first word news with shery ahn. shery: thank you.lling after its longest run of gains in four years as iraq looks to increase its exports amid a glut. they say they will boost crude shipments by 5% in the next few days. on into a bull market thursday amid speculation that the informal opec talks next month may lead to action to stabilize the market. in the last three weeks, nymex gated 20%. how do you do kuroda says -- in anruhiko kuroda said interview that the boj won't hesitate to act after discussions of a comprehensive review. pfizer is said to be nearing a deal to buy a biotech company for $14 billion. people familiar with the situation say an agreement could be announced as early as today, and pfizer is expected to pay a premium of 26% on the close. a spokeswoman declined to comment. a representative did not immediately respond to phone calls and e-mails. india has swapped a financial a list or a trusted technocrat. governor aseed the they seek international investors. he has spent the past four years driving the biggest reform

ahn: and i'm shery ahn.oomberg markets. ♪ we are live from bloomberg world headquarters in new york for the next hour, covering stories out of san francisco, chicago, the united kingdom. here is what we watching. stocks are under pressure. the fed will move soon on interest rate. shery ahn: a key measure of inflation, the price that came a change -- unchanged for july. vonnie: ford just announcing is a big invest in driverless cars, expanding its facilities. we hear on the ceo on his will have a fully autonomous vehicle available in 2021. like we said, it is one hour on the close of trading in the

shery ahn kicking it off. shery: the tables have turned. i gave you a couple of wins there. today i am taking a look at japanese government bonds. about $45 billion in extra spending from the government today. that is a fraction of the headline number announced last week. is the ball back in the bank of japan's court? last week the boj underwhelmed the markets. boj ist is that the running out of places to buy. they already own one third of japanese government bonds outstanding. this is causing problems for some investors who are complaining that the central bank has killed off market liquidity. it is plunging their in the markets. where is the boj going to go next? they are buying up etf's. they are keeping negative interest rates. it is a big issue for the bank of japan and the abe government. you can see my chart. beat that. mark: what more can i say? beat that. julie: i am looking at the government bond market here in the united states. not just liquidity, but volatility as well. we have been talking about this with regards to stocks. th

erie shery ahn. y: shares in hp tumbled after the quarterly growth forecast fell short of $.37, lower.34 to than the estimates of $.40, as the printer maker struggles with slumping demand for its products. chinese regulators are investigating a high-speed trading firm in connection with stock in the future dealings. they have received inquiries, related to futures trading at the chinese affiliates. they have been cracking down in the wake of last year's market. monsanto sent a letter field that it is withdrawing applications for indian approval of its next generation genetically modified cotton seeds. march it was in reevaluating the business in india, after cuts to royalties. the company says it will pull the obligation, because of regulatory uncertainty and ongoing discussion. pharmaceuticals fell 3% in new york after two of the patterns were invalidated in the u.s. and multiple sclerosis drug that generates 20% of the israeli company's revenue. the patents were jams by rivals who want to make cheap

im shery ahn. this is bloomberg.ad: the central bank of iran has signaled it will loosen its grip on the rial. there's currently a dual exchange-rate system, with one set by the bank and the other by the markets. andrew, tell us about the system, and why the bank might change it. andrew: iran's economy, under the sanctions, was a pariah, but economically and politically. so they needed to devise all these band-aids to try to keep their economy running as they were removed from the rest of the world. some of those band-aids you rip off quickly, and others they are taking off a bit more slowly. and in this case, what it is is they need foreign companies to come in and get their economy going. i can imagine ceo's thinking of going there, having conversations about well, if we go in, we can build with this rate, and we repatriate we have to come out with this rate, and is maybe too, hit for them. so this is perhaps the beginning of the emanation of the dual -- elimination of the door rate system. yousef: it is a radical

here is shery ahn. shery: anna, thank you.sumer prices have fallen for a fifth straight month in japan, underscoring the central bank struggle at 2% target. food,excluding french fell by half a percent. now, this is the last reading and the key measure before boj and consider a possible policy revamp next month. russian president vladimir putin has ordered drills after german chancellor angela merkel accused him of breaking international law and ukraine, and she says nato will defend member states against attack. these daysand france try to progress in settlement of treaty, but the situation in the security of ukraine worsened in the summer. every day, people lose their lives on the contact lines, especially the ukrainian soldiers. you can imagine that in this situation, it is politically very different to lift sanctions, of course we are working on that. we spoke with the russian and with the ukrainian president. we are in touch and i hope we will be able to present some progress in the european council. the son of a russian

here is shery ahn. shery: anna, thank you.entral italy has been rocked by a 6.2 magnitude earthquake and a depth of 10 kilometers according to the u.s. geological survey. the news agency has reported damage in the small town, about 140 kilometers northeast of rome. the local mayor told rai that people were trapped under rubble and have the town was destroyed. there have been no media reports of casualties. oil has resumed the drop after data shows u.s. stockpiles rose, keeping inventories at the years. in 30 this follow the jump in prices on speculation that iran may onport an opec freeze outflows to bolster the oil price. there is reports that tehran has reported positive signals on joint action. ministerican finance gordon has received correspondence from official police units and is getting legal advice on the matter, according to a national treasury spokesperson. the comments came after reports have grown, receiving a warning statement about possible charges related to tax agency units. rand paul to the lowest level agains

shery: i am shery ahn.ction shrank a second month. there are signs of worse to calm. -- to come. >> germany flexes its economic muscle. slowed, signaling that -- growth grew better than expected, signaling that it may become -- >> >> we begin in britain, where construction shrank for a second month in june. .utput -- building up a decline companies have started putting spending plans on hold since the u.k. voted to leave the european union. slowedermany, growth less than predicted in the second quarter. german gdp rose 4/10 of 1%. a signal that europe's largest economy may be able to handle the u.k.'s decision to leave the eu. by italy's economy unexpectedly stalled a the jobless rate is above 11%. >> auto sales soared in china last month, up 26% from one year ago. general motors and ford reported record demand. sales were up 47% for utility vehicles. >> time for our bloomberg click take, where we provide background and context on issues of interest. for aes have looked chemical edge for centuries, dating b

let's go to shery ahn. athay pacific has applied to raise two point billion -- $2 billion of debt over the next 12 months. being arranged by hsbc and should take effect today. such debt programs are available to institutional investors and gave insurers and flexibility to access foreign markets if needed. cathay has ordered $10 billion worth of new planes. south korea and japan have strongly condemned the north for firing a ballistic missile from a submarine today. seoul saidicials in the rockets flew about 500 kilometers before coming down in the city of japan. after wargames with u.s. forces involving 75,000 troops. the olympic flag has arrived in tokyo after formally being handed over at the end of the olympic games. tokyo is counting down to hosting the 20 20th and. it will be the second time the city has hosted, after 1964. bidding for 2024 is underway, with contenders including paris and los angeles. powered by more than 2600 journalists in more than 120 countries. i'm shery ahn. this is bloomberg. wil

i'm shery ahn. vonnie: and i'm vonnie quinn. ery: time for a look at some of the biggest business stories in the news right now. vonnie: eight of the nation's largest banks are joining forces to fight cybercrime. the "wall street journal" says the plan is in the early stages but banks will share information about threats and prepare detailed responses for when attacks occur. the banks include j.p. morgan chase, bank of america and goldman sachs. the judge in the massachusetts case involving sumner redstone has set a trial date for october 3. the trial over the ouster of the viacom ceo will run for five days. at issue -- whether he was ousted from a trust that would control viacom. that is your bloomberg business flash of they. now to the surprise from valeant -- they reported earnings that fell short of estimates -- of estimates that shares are climbing. and optimisticg view of the companies or action. guest: i'm looking forward spending more times -- more time -- vonnie: are bloomberg reporter spoke with him after the report. we

shery: i'm shery ahn. finally this hour tesla c.e.o.g capital to aguirre solar city and burning through cash to produce production of cars and batteries. the bloomberg editor cory johnson joins us from san francisco to break it down ahead of the tesla's earnings after the bell. consensus estimates seeing another operating profit loss. what should we be looking out for, cory? guest: we know how many cars estimate, they gave us that release over the fourth of july weekend. it was below their guidance. but that's not the mystery. i think one of the interesting things to look at here are the gross margins. gross margins, we have the model s in full production for a couple years. the model x also in full production now. they are start up mode. with this full production you would think the gross margins would be getting better, but instead we have gross margins coming down. when a factory runs more it should run more efficiently. we're not seeing that at tesla. i think that's one of the things we want to keep an eye on from tesla. it's so --

that's the whole of south korea within range and parts of japan. -- i amnese experts shery ahn.bloomberg. yousef: saudi arabia has china's biggest oil supplier but russia is inching closer to that. we get you the details on those numbers. stay tuned. this is bloomberg. ♪ yousef: let's get you some breaking numbers. let's get you those figures. revenue at 9 billion euros. yes that was for 8.9 billion euros. seeing third-quarter results on november 17. the free cash flow of 1.3 billion euros in 2016. those earnings will get you more details on those figures. two of the patents were invalidated in the u.s.. a multiple sclerosis coming up drug was challenged by two rivals who want to make generic versions of the drug. japan may be looking for its own oil company. japan is key to list some shares on the stock exchange when it goes public. saudi arabia will pay an official visit to japan at the end of the month where he will meet with the emperor and prime minister shinzo abe. the secretary-general may visit qatar next month. is touringl us he countries. to takeeen pushing action for

now for what you need to know outside the world of business, shery ahn is here with first word news. shery: backlash is growing over donald trump's comments about the parents of dead muslim american soldier. it has to do with remarks made by the soldier father of the democratic convention. thep questioned if soldier's mother was in a lot to speak at the democratic convention because she was muslim. the woman said she was too distraught. a number of republicans joined hillary clinton in condemning trumps comments. theresa may's government says it is committed to the so-called triple loss pension guarantee. the policy ensures retirement payments rise by inflation, average earnings, or 2.5%, whichever is higher. former pension minister has called for it to be scrapped. will be of triple loss enormous by the end of the decade. supporters of turkey's president demonstrated in cologne, germany. 20,000 people took part in a rally that had the slogan yes to democracy, no to the two. --anizers wanted air to one the president to address them by conference, but authorities turned down the reques

i'm shery ahn. vonnie: i'm vonnie quinn.ta will be scrutinized to gauge the impact of the brexit vote. it is the first part of data the referendum. earlier today, london bureau chief discussed what we can expect from the hard evidence. >> we have inflation data which will be interesting. we will start to see not in the headlines but in the subcomponent evidence of the impact of the weaker pound and food prices and some indexes like that. retail sales will be interesting because so far the survey data has shown resilience on the part of consumers since the referendum which some people of put down to the good weather. we will see if that is sustained. and jobless claims. we expect an increase in jobless claims. mark b.: wages and the unemployment rate cover the months leading up to brexit. those of the key months we watch in months and years to come. emma: we have the july jobless claims. vonnie: most economists are saying we will see a pretty dramatic deterioration and pretty fast. does that mean if it doesn't come this week,

shery: and i'm shery ahn.omberg businessweek put out its annual interview issue, and ey'se magazine, you why -- ceo explains that a keep millennials happy. we asked jim ellis. >> i was interested in him is such a why -- ey large employer of young people. i figured if anyone had their finger on the pulse of how you deal with millennials, it had to be them. accountancy,of public accounting, young people is not exactly the first thing that comes to mind. >> it's surprising because so much of the workforce now, you think of people who are in the middle of their careers, especially for corporate jobs. it turns out that things like consulting and accounting, a lot of professional services draw heavily from college graduates. that puts them in that sweet spot of dealing with people who are in their 20's or maybe early 30's. the medianlike ey, age is 29. half the people there are under 29. it's a big change versus what most people in the corporate u.s. are used to. copies change that most look for, or did it respond t

shery: i'm shery ahn. vonnie: time for the bloomberg business flash. leaving leggs mason after more than three decades. the stock picker is known for beating the s&p 500 index. buying legg mason stake in the fund company he now runs. income looks at -- related strategies. vonnie: delta says a small fire is to blame for its collapse. some 300 company servers were not wired to back up power. delta canceled about three -- canceled about a thousand flights. ofry: the cancellation southwest airlines flights will cost $54 million according to -- "alice morning news." "dallas morning news." that is your business flash update. this is the one-year anniversary of china's stock devaluation of the yuan. the recent stability comes at a cost. our bloomberg is anchor, betty liu. i want to start with you because of this shock devaluation. if you look at the bloomberg, you see that we have had -- we had a diwali ration back then. the second worst performer, weakening more than 6%. markete we saw that panic in august but we are not seeing it now? george: a large compon

shery: i'm shery ahn. time for the options insight with julie hyman.ie: thank you, and joining me insight,"s "options out in chicago at the cboe. dan, great to see you as always. we have been talking about the unusually low volatility. we have a little bit of a decline in stocks today, a little bit of increased volatility. but it doesn't seem like it is coming back anytime soon. i'm curious what you are seeing today. dan: we saw a little bit of a selling, we saw markets down. when you look at the vix futures, the reaction is pretty significant for this move today, the down move. really because of the real-life volatility to market is not moving and options players are not willing to pay up for options until they see a significant move, probably a breakout of the consolidation pattern we have seen in the market for the past three weeks. kelly we talked to kevin earlier in the week about the potential for another august shock, or what you call august surprise. how do the conditions for that set up? dan: the conditions are very similar to last august. we

. >> i'm shery ahn. welcome to "bloomberg markets."om the next hour and we are covering stories in san francisco, greece, and japan. stocks are pulling back in the final hour of trading could financials and energy lead the declines today, while earning season causes of these stocks to breakout. vonnie: the people of japan are preparing to head for the hills for the mountain day holiday. retailers and tourism operators are gearing up for a windfall, any billion-dollar windfall. reportingke shack is earnings after the hour. the company has installed since its idea. we will get the state of the restaurant industry. an hour from the close of trading, let's go to the markets desk, where julie hyman has the latest.

♪ >> from bloomberg world headquarters in new york, i am shery ahn. london, i am nejra cehic.are 14 minutes away from the european close. turning to the british pound. look at this chart. it shows it is lower for another week. this as the bank of england restarted its stimulus program, i'll leaving the pound they years worst performer. joining us is richard jones, bloomberg's fx and rate shortages. i have it on my bloomberg. i put the pound year-to-date against the expanded majors. it is doing worse than everything else. down 12.2%. could we see it take another leg lower? richard: next week could be very interesting, because we have the first look at hard u.k. data. we have a lot of survey data out since brexit. it has been gloomy. datae get a look at hard next week. perhaps, is that data is on the weaker side of expectations, we could -- if that date is on the weaker side of expectations, we could start a leg lower in the british pound. shery: we look at gilt yields. we have seen the 10 year fall to record lows off of the bank of england expanding qe. richard: that is true in

i'm shery ahn. this is bloomberg.now to today's morning meeting, where we hear what key banks are looking at. our next guest has his eye on centrals after the bank's decision. central banks give and then they turn around and they say can we have some more. and if they do not like what is coming, they react in a very different way. is that why we are seeing a resilient pound so far for much of the week? >> i think the market has definitely been a little bit frustrated. response outolicy of the central banking community, especially out of japan, and that is why we have seen the yen rally. the fear going into the bank of england is that we would have the same, or the bank of england might come in softer than expected and therefore the pound would squeeze higher. so we have a short recovery going into the meeting. the bank of england delivered as much or more than expected, and we had a weaker pound, which is what you would expect, and unusual effect -- an unusual event for the last 12 months. currency reacted as you woul

vonnie: shery ahn joins us now. how bad is it really out there? shery: it depends who you are.a broker selling home prices that value between $2 million and $3 million, it's tough for you, especially focusing on international buyers. total international sales declined for the first time in three years. the pace of that decline, 1.3%, was still outpaced by chinese buying falling 4.5%. wise it tougher chinese to buy? just as a mention, the cheaper yuan. is strengthening the most in more than two months. after august of last year, the yuan is weaker by more than 6%. at an apartment with her and if you include the home prices just rising in the u.s. and calculated with the devaluation of the yuan, chinese people would have to spend a million dollars more on that apartment. there may be doing it not as frequently as before, but how else inherent are they? the wealthyally already have their money out, which is another reason that chinese people are not buying as much capital control measures. chinese people can only take up 50,000 u.s. dollars out of china in a year. they use this te

shery ahn is looking into this. the besto back in game, what does this mean for stocks? orry: it depends on whether not the fund stays committed to their allocation target. but we know so far is the value of their investment in stocks has plunged, with the market in japan following this year. the topics being double-digit losses this year. what that meant was that their the allocation and japanese stocks, fell to 21%, instead of the quarter of the portfolio, the 25% they were targeting. take a look at the graph. you can see their allocation and stop -- in stocks, domestic and foreign, are falling short of the target on the blue bar. the only asset where they have a slightly overshot is in domestic bonds, because of bond yields falling and prices rising. the weight of the holdings has passed their allocation target of 35%. essentially means is that they will need to spend $53 billion in japanese shares in order to get to that 25% target. they have some leeway on whether or not they want to stick originally to the target, but the fact is that the pension fund seems committ

shery: and i'm shery ahn. welcome to bloomberg markets.we are live from bloomberg world headquarters in new york for the next hour. plus we are covering stories out of seattle and china. stocks are once again pushing past record levels. we are monitoring the movement in equities for the final hour of trading. vonnie: and it is the one-year anniversary since china rocked low bull markets. we are looking back at the roller coaster ride. shery: retailers are once again in focus. macy's stock is surging as the store plans to close shops in response to online shopping. let's head to the markets desk where julie hyman is looking at another record high. julie: all three major averages are set to close at new records for the first time since

here is shery ahn. called for the appointment of a special prosecutor to investigate what he calls hillary clinton's e-mail crimes, stemming from her tenure as secretary of state. speaking at a campaign rally, trump focused on clinton's use of a private e-mail server and address and what he calls the pay to play actions of the clinton foundation. mr. trump: the amounts involved, the favors done and a significant number of crime that was done require an expedited investigation by a special prosecutor immediately, immediately, immediately. shery: meanwhile, hillary clinton's presidential campaign says donald trump's proposal to overhaul the federal tax and benefit high investors like himself. a member of her team says trump's plan pace to run up debt, not the other way around. officials-erian says need to consider the cost of keeping interest rates low. he told bloomberg there is a risk of financial instability down the road because of extraordinary monetary policy. he says it was the strongest argument f

shery: and i'm shery ahn. welcome to "bloomberg markets."nie: we are it bloomberg world headquarters in new york. over the next hour, covering stories out of san francisco, dallas, and washington, d.c. donald trump is taking the stage in detroit to outline economic policy. from former chair laura tyson in just a moment. shery: stocks are slightly lower this afternoon, i continue hovering near all-time highs. meantime, crude climbing as opec's president for next to the current bear market will be short-lived. vonnie: in a bloomberg scoop, apple is unveiling a new apple

shery: i'm shery ahn. welcome to "bloomberg markets."g world headquarters in new york over the next hour, covering stories out of san francisco, washington, and london. stocks hovering at record highs once again on very low volatility. hy hedge funds are holding massive short positions. vonnie: big move for economic data out of the u.k. the clearest picture yet of a post-brexit british economy, and the forecast is not good. shery: dropbox is taking a big step towards going public. details on the potential ipo including white ceo it might be time -- why the ceo thinks it might be time for the company to take the next that. markets close

matt: coming up, we head back to jackson hole wyoming with a live interview on his thoughts on shery ahn's on blackberry, trading has been halted. the reason stop -- no reason given. a shares have fallen 15% trailing the broader market. the market cap of the shadow of its former self. a $4.1 billion market cap versus its peak of 78 billion dollars in may of 2008. this is bloomberg. ♪ matt: this is "bloomberg markets," i am matt miller. scarlet: i'm scarlet fu. matt: that's a market, which are continuing to digest janet yellen's speech, were she says the case for an increase in the fed funds rate has strengthened in recent months. let's go to jackson hole, where michael mckee is standing by with jay powell. michael: thank you. we welcome all of our viewers and listeners, i'm here with jay powell, a member of the federal reserve board of governors. and obviously, of the open market committee. janet yellen did say that this be -- the case for a rate increase has improved. when you look at the economy, what is the assessment of where we should be? mr. powell: the economy weakened , it's not cl

i am shery ahn. i am vonnie quinn.oomberg markets. >> we are live and bloomberg world headquarters over new york over the past -- next hour. covering stories from new york, las vegas. -- here is what we're watching. stocks are pulling back on comments from fed officials. mgm ceo is a lifelong republican, but why is he now endorsing hillary clinton for president you go we will talk to the business leader about why he is crossing the aisle in just a moment. >> with success comes more challenges. the ceo joins us for professionally -- professionally and personally

scarlet: that was bloomberg's shery ahn reporting.g markets, nine out of 10 bankers would be interested in risk compliance solutions but financial firms are not equipped properly. this is bloomberg. ♪ this is bloomberg markets. i am scarlet fu. oliver: i am all of. increasing regulatory environment and many financial firms are concerned about budgets to go -- to support compliance efforts. that is according to a survey that surveyed executives with firms with $3 billion or more. the vice president joins matt miller and cory johnson. matt: thank you. jerry lynn, pleasure to have you. , helps companies to deal with financial firms, i'm guessing mainly, the massive amounts of regulation around trying to stop money laundering cyber trying to install security solutions and we are in a brand-new world. as the technology made her life easier or -- >> i think we're a crosswords -- we are at crossroads in terms of it. there were interesting things in terms of priorities in 2016 and 2017. essentially, what we saw was that we were able to unders

. ♪ >> from new york i am shery ahn. this is bloomberg markets on bloomberg television.is is what we're watching. sales at u.s. retailers were little changed in july. that's not stopping big department stores for making strategic moves in order to boost the bottom line. we will look at the u.s. consumer and results this week from macy's and nordstrom. a tale of diverging economies. germany's economy grew better than expected. that is helping the euro exchange -- maintain its expansion. retail sales at a mass -- missed. its a guestng for weekly advance since april a

shery ahn: shares up 16% 2016 it boosted the earnings forecast. volume rose by 41%. revenue of 54%.ding the effect of starbucks. it is negotiating an expansion of the deal with that company. we are looking at canadian pacific this morning. they said it was getting out of the stock. selling the 6.7% stake five years after purchasing and becoming the largest shareholder. they will stay on until the next annual meeting and then he will reside area shares have tripled since the initial buy. , the1st century fox company talking about its commitment to fox news and keeping it on the same track. profits roseime, above average. revenue was up 7% but missed analyst estimates. from one media giant to another, viacom shares are popping higher in the premarket. beat juneom did quarter earnings and sales estimates and it looks like the teenage mutant ninja turtles boosted sales. the strength there helped out against the weakness around tv ad sales. around advertising. an analyst is saying that the underlying fundamentals are week here, relative to peers and that investors want some visibility ar