the stoxx 600 is up by about .3%.e 100 is a slight underperformer, though the miners are leading a charge today. the dax is up by .5%. daimler is doing particularly well. bmw has been suring, june sales doing well. autos are the best performers on the stoxx 600, as are the miners. the cac 40, that is up by .6%. let's get on to the bloomberg first word news. david: let's get started with the international monetary fund. it has urged china to deal with the corporate debt problems. the spillover risks are huge, but the situation is manageable. the imf will be updating its economic outlook next week. investment backing is the ubs is finally the right size after many recent job cuts. so says at least, the division president. he spoke exclusively to bloomberg. >> at this point in time, i think we are exactly where we should be to face the environment we have, to fa ce the regulation that we have, to face the forces that we have. at this point in time, our challenge is to execute correctly what we have in front of us. and i

the stoxx 600, with a decline of 21% this year, banks at the bottom with a drop of 35% .st year, a plunger 43%, this chart shows the market capitalization of the stoxx 600 banks index, this is a gauge of 48 lenders. 2007, the stoxx 600 banks index have a market evaluation of 1.89% -- 1.8 9 trillion euros, today the market value of the stoxx 600 bank index is 804 billion euros, that means one trillion euros of value have been wiped away in nine years, in percentage terms that is 78%. in the last year, half a trillion euros of value has been wiped off the european banking industry since the high in 2007. monte dei paschi down. rbs down 97%, credit suisse down 90%, deutsche bank down 88%, ubs down 83%. half-full way if you look at things, the market cap up 350 billion euros on march the ninth 2009, above those levels but one trillion euros of value has disappeared in nine years. i am not sure that is glass half full, that is looking like a little tiny drop in the glass. one line that puts shivers up your spine, mark, you are the winner. please look at those charts and send i

i want to start with the stoxx 600.been gaining, closing some 4/10 of a percent looking at europe's equity benchmark. the resiliency despite geopolitical risk around turkey, the failed to over the weekend. we are ending higher -- the failed coup over the weekend. we are ending higher. looking at the grr function on the bloomberg. it is tech stocks that have been leading. 3.5%.logy stocks up some the stoxxt gains in 600. if we look at the specific stocks, it is arms holdings, up 41% after softbank agreed to acquire it for $32 billion. a 43% premium on the arms closing price friday. you can see this jump up 42%. the biggest jump on record for arms, and a record high today on that news of the acquisition by softbank. a lot of moves, largely led by technology. vonnie: thank you pay looking at some different indicators that tell us how things are looking in the u.s. indexx index -- the vix showing calm. in currency, weakening for the oda, which is a boon for kur and the ministry in japan. by 1.2%.0, weaker the lira today, so

10 of 1% on the day on the stoxx 600.sion in europe. look at the industry groups, the great majority have been declining the commodity producers down 2.5%. carmakers down 1.4%. the number of stocks we have been keeping a watch on, mrr, the best and worst performance. the best performance, jumped the most come up 21% at the close after the online apparel retailer raised its for your margin.- four year concerns over profitability. shares seen ericsson down. the worst performer, down 5.7%. more on this later. mess thoughwere a they announced more cost-cutting, investors not convinced. not huge moose but down more than 1% at the close after monsanto said that their latest offer of 65 -- their latest offer is financial inadequate and does not ensure a deal will be competed. -- would be completed. there will be further conversation. vonnie: dollar index. 97 for the first time. dollar, weaker by 1.4% after some easing. the kiwi weakening today. the lira, 1.6% weaker in the last few minutes. continued weakening. let's look at the

is on the last on the stoxx 600 hit a record was in april last year.ord aselow that the s&p hits the new record today. is that valuation that warranted? mr. jones: i do not believe it is. the valuation gap between u.s. and european equities i believe is largely a function of the political uncertainty. obviously, the brexit vote increase that political uncertainty. but i believe that if we can get through the italian bank bailout with a good outcome that help support the constitutional referendum in november -- if you can just lower some of the political risks, they've engineered a fairly good economic recovery in europe. their growth in the first quarter was three times that of the united states. i think if we can get some of these clinical risks behind us, with one clear implication of brexit across the rest of europe is that polling data has actually gone the other way for some of the other candidates, the people they were afraid might follow great britain. if we can get some reasonable policy accommodation on the italian bank bailout, i think we can

50 and stoxx 600. this something they have been toying around with for a while? aleksandra: for europe, they have been overweight. they upgraded u.k. shares after the referendum and they upgraded global equities after the referendum. guy: it will take time to correct. thank you very much indeed. to stick withoing you. coming up, mass psychosis in the bond markets. who is right in the discussion? ♪ caroline: welcome back to "on the move." let's talk about debt. bondsors who rushed into will face a hard time making money. market findse the bond rates begin to rebound. there is something of a mass psychosis going on related to the so-called starvation for yield. call me old-fashioned, but i don't like investments where you are right, you don't make any money. pimco is on the other side. the general return fund has increased its holding of u.s. government debt to its highest level in a year and a half. it now accounts for 39% up from 36% in may. the fact earlier on that it is the only area where we can fin

is 1.3%he stoxx 600 below the close. some interesting corporate group say a rank joint takeover of william hill benefitsmpanies see for their in-store and online operations. william hill said it received a preliminary approach from these two companies but it was not clear if this would enhance their position in the industry. 5.3%. up by phillips reporting better than estimated profits and says earnings will improve with shares up 2%. this is a company facing stiff competition from chinese manufacturers. really quickly on the macro basis, we had business confidence with sentiments deteriorating. the business climate did fall to 108.3. the median estimate was for a drop to 107.5. 90 minutes into the session, let's get over to the markets desk. shery: let's look at breaking news. from the largest bank in florida by deposits said to be working with ubs to explore a sale. we are hearing this from people familiar with the matter, saying they are receiving interest from a potential suitor. 7% after we heard the breaking news. f

the stoxx 600 still 2.7% below the close on the 23rd of june. let's not forget that the impacts of terror attacks on financial markets is proven short-lived. look at the attacks in paris in november, in london in 2005, in madrid in 2004. these events spurred selloffs, but they were short-lived, lasting days or weeks. initially, the reaction was clear, but eventually we saw equities wrap up. were down by 1/5 of 1%. i wonder show you the european auto industry. this is a year to date chart, the big auto players, fiat chrysler, volkswagen down by double digits as well. we had some european car sales data today, sales growth slowing in june as the brexit vote weight on business and consumer confidence. yes registrations rose by 6.5% from a year earlier to 1.5 one million vehicles. first-half sales rose 1.91%, and year-to-date market share of vw, which is still impacted by the emissions scandal is still mired .t its lowest level since 2011 june marking the 34th consecutive month of auto sales gains in europe. stocks are lower this year. this is a lov

looking at the stoxx 600 think index, second worst for lloyds.ichael: it was a tale of lowered expectations. thoseeat slightly against lowered expectations, but there is still issues across the board. credit suisse is off 1%, lloyds under 10%. lloyds talks about some capital hit from brexit, from the drop in the pound. going forward, potentially slower growth. that got people concerned about the dividends, and the dividends continued growth. you have seen an income in stock. if you don't have consistent growth in the dividend, then -- mark: it is one of the reasons why it has outperformed given the like of barclays. that's go back to credit suisse. that was an on expected profit division, can to beating to the earnings. seems, manyase it as well. we had turnaround bearing fruit. side of theone ledger, it is. on the cost and capital side, it is starting to make progress. we talked about it being a first step, but they are cutting the .bsolute cost capital did go up. on the revenue side, it is a tough picture. trading revenue down across the board,

every industry group is pushing higher on the stoxx 600.lly the miners leading the charge. by .7%. 100 up keep an eye on the italian and spanish lenders today. we got some of the individual stocks to dig into. nejra has the three top ones for you. nejra: thank, caroline. my him starting with one of the biggest gainers on the stoxx 600 today. roup finance g ministers meeting in brussels to discuss the italian banks. this is following a rally on friday after the company said on july 7 that it was working intently with authority to quickly resolve its bad loan burden. italy is in talks with the european commission on a plan to recapitalize montepaschi. that is gaining. irupp.aining, thyssenk there is a possible joint venture in europe. this is after reviewing vids obs the u.k. as a charter had been planning to sale. gaining onkrupp that. and one of the worst performance today is rolls-royce. it has agreed to purchase the stake it does not already owe for 720 million euros. this is to strengthen his position i -- this is to strengthen its posit

the stoxx europe 600 is little bit lower.: we're seeing european stocks retreat from a three week high. e stoxx 600.th french stocks falling following that deadly attack in nice. let me show you how different industry groups are performing on the stoxx 600. keeping an eye on travel and leisure. they are some of the worst performers, down .9% at the moment. looking at individual stocks on our mrr function on the bloomberg we could see thomas cook down 3.8%. europe's biggest hotel company 3.3%. down. and easyjet down more than 3% as well. those travel stocks are seeing an impact from that attack. then, also, i wanted to look at swatch. there is concern over luxury sales slowing. that slowing being increased further after the deadly attack in nice. so, not a great day for swatch to say that first-half profit fell by half. the most in at least 15 years, as demand for his watches in hong kong, france and switzerland collapse. you can see this drop at the open. it stayed low. down 10%. the shares have hit their lowest since 2009, f

it looks like july is the best month since october for stoxx 600.st performing this year, this is the individual components of the stoxx 600 .anks index, which rose by 2% barclays up by 6%, earlier it was 9%. the biggest rise since 2012. fixed incomes trading revenue outperformed european rivals. they say the noncall unit will weigh less on profit next year and analyst pointing to a drop in expenses and an increase in capital as bright spots. ubs rising. gaining as a. ab inbev, the food and beverage component, ab inbev, 4.5% higher. .abmiller up 2.2% busy on the news that broke just before the european close with the sabmiller board recommending ab inbev's improved offer. going from 44 pounds to 45 pounds. they will work together with ab inbev. the news was that the chinese regulator will accept the deal. we have sales figures from ab inbev. i want to get into that because the sabmiller board. both rising. macro data, gdp slowing in the eurozone, .3% versus .6%. inflation unexpectedly accelerating. the growth data highlights economic recovery fragil

the stoxx 600 -- we have seen that moving higher today as we head for the close.loomberg. ♪ . . vonnie: it is 11 a.m. in new york and 11 in p.m. in hong kong. nejra: there are 30 minutes left in the trading day in europe. you are watching the european close on bloomberg markets. we are going to take you from cleveland to new york to london and cover stories out of frankfurt and is tumbled in the next hour. here's what we are watching. a week after taking office as uk prime minister, theresa may is set to meet angela merkel in berlin. why the german chancellor says there will be no negotiations with the u.k. until may triggers article 50. nejra: donald trump -- vonnie: donald trump officially becomes republican candidate for president.

at the close monday, the stoxx 600 fell 11% over two trading days.you a feeling how the asset classes are faring. i want to look at the ftse 100. it is approaching a bull market yet since february 11 the cia, when the index fell to its lowest level in three years, it has rebounded 18%. seven percent last week. it has gained almost 4% since june 24 after sinking 3% that day. the top five performers on the , thisre anglo-american over producer chris mello, glencore -- the silver producer prismiller, glencore. of sterling boosting those sort of companies. we want to finish with the british pound index, which is a bloomberg gauge that measures sterling against its seven peers. day is the seven performance record last friday. 8%. sold 3% monday. up tuesday and wednesday, down thursday and friday, little lower today. days, down for third day. record low today. since the 24th. short sterling is the highest conviction trade. bank of america merrill lynch favors selling any sterling. itsmorgan stanley says trade idea is to buy sterling versus the swedish kron

stoxx 600, over the past four days, we've managed to eke out a gain. the airline stocks take us down. levelsyen retested its that we saw on the sixth of june. we may see more stimulus. the stoxx 600 close down a four-week high last night. check out lufthansa. the numbers are going to be below the previous years. just looking at the stock performance, 10.22 at the moment, we've been falling for three days. the last time we saw a rout like this was the 14th of june. easyjet sales came in at 4.2 million. revenue slipped 8%. they are saying the brexit vote, the attempted turkish coup, many challenges. easyjet down 4.3%. time for a first word check. nejra cehic is with me. nejra: good day, manus. turkey has imposed a state of emergency as the government pursues those responsible for a film to recoup. -- for a failed military coup. since the attempted coup collapsed on saturday, thousands of army officers, judges, and prosecutors have been detained. uk prime minister theresa may travels to paris today to meet france le monde. -- francoise lalonde. -- holland

at how industry groups are performing on the stoxx 600. up 1% at the moment, heading for a four-week high. technology stocks and carmakers are leading the gains today. sawa surprise given what we from sap earlier. still leading the gains at the moment, up 5.8%. it reported results that topped analyst estimates. they close more software deals despite the turmoil in europe. higher,en also heading up 5.5%. first half earnings exceeded market expectations, sending shares up the most in three months. car brand showing signs of recovering after the emissions cheating scandal. i want to look at the relative intogth index -- it moved overbought territory but is now within this range between overbought and oversold. we have been seeing anglo-american following today after it cut its target for copper outlook. about 90 minutes into the session and it looks like stocks here have held on their early gains. little more solid with the dow up 43 points and the nasdaq up 1% in the face of declining oil prices. take a look at the bloomberg. we attack as th

got the gr our function on the bloomberg for the stoxx 600. about .6%. the majority of industry groups are heading lower. commodity producers leaving the losses, down 2.4%. followed by carmakers down 1.7%. best performer on the stoxx 600, jumping the most on record, we're up 21% rising after the german online apparel retailer raised its forecast and basically doused concern on falling profitability, allaying those concerns, one analyst saying full your cost to and someby about 20% saying this is particularly good news as monsanto's margin has an climbing. we are seeing weaker sterling today. this is even though u.k. inflation earlier came in that of any elected -- better than expected. alicia has more from the newsroom. from lastments weekend passes attempted coup have been neutralized there at all terrorists involved in the coup have been suppressed. in 200 32t resulted deaths. thousands of turkish military personnel have been detained. the u.s. should not protect what he calls a terrorist leader. secretary of state john kerry says to you will have to p

the stoxx 600 is down by 1.6%. bloomberg. ♪ ,onnie: it is 11:00 in new york 4:00 in london, and 11:00 in hong kong. mark: 30 minutes left in the european trading day. you are watching the european close. live in new york and london for the next hour. we are covering stories in australia, france, and silicon valley. here is what we are watching today. the bank of england eases capital requirements. the bank pledges to do whatever is needed to shore up the financial stability. sinceoil has rallied hitting a 12 year low in january, but have prices hit a ceiling? ceoill hear from the vitol ian taylor. mark: and just glad you have a job, that is what financial firms plan to say to employees, as bonuses are expected to be cut 25%. we will discuss

the stoxx 600 down 0.6% at the moment. more than 400 stocks declining.art of this is the prospect for central bank stimulus not being as aggressive as we might expect. it is also one of commodities rolling. oil declining, industrial metals, and gold as well. the stoxx 600 commodity producers leading the losses. most industry groups are down. telecoms, the one group gaining, up 1.2%. vodafone up 4.2% at the moment after it reported first-quarter service revenue that beat estimates. we're talking organic service revenue, the money vodafone earns from monthly phone bills. it doesn't include handset sales. sales advanced in germany and ,taly while falling in the u.k. but basically seeing gradual improvements in its european mobile phone businesses. that is vodafone rising. finally, dollar-yen. i did mention kuroda. this is where we saw the dollar dropped, the yen strength and yesterday. the yen is pulling back a little today. this is the picture over the past five days. the yen is heading for a second weekly drop. manus: thank you very much. you fill me with

lower.following you the stoxx 600 is down for the third consecutive game.t is the worst losing stretch since july, a small gain in germany. stronger-than-expected survey. not as much as anticipated. ♪ . . [hip hop beat] ♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. vonnie: live from bloomberg world headquarters in new york and london, i'm vonnie quinn. mark: and i'm mark barton. let's check in with bloomberg's first word news today. controversy overshadows today's start of the democratic national convention. committees national chair will resign at the end of the week over

the stoxx 600, up 9.3%. july looks strong. up 8.3%, the best day since october of 2015. it is looking good in broadband and is performing well domestically. and peugeot up 7% after profit jumped 32%, anna. anna: deutsche bank is down by 4.8% at this hour, signaling deeper cutting of costs could be in the cards. unicredit, down 3.2%. we understand they could be considering a $5.5 billion stock an exit.d caroline: now, let's turn our attention to the u.s. the democrats have formally nominated hillary clinton for president, making her the first female major presidential party nominee. husband and former president bill clinton was the keynote speaker on the second night of a fractured democratic national convention. he made the case for his wife's candidacy. kevin is in philadelphia for us. kevin, how was bill clinton's speech digested. kevin: well, former president bill clinton delivering a largely personal pitch for his wife hillary clinton, focusing on the first half of his speech with how they met. and that he got into more po

the stoxx 600 is 20% below its record set in early 2015.last night from daimler earnings, they beat expectations significantly for the second quarter. the company is setting aside more airbag recalls and legal charges, just checked daimler shares and they are up 4.5%. in 2016, vw down 20%, m w down 25%. let's just finish with the yen, high expectations we will get a fiscal stimulus package out of japan in the wake of the success of the ruling party. this is a two day chart for the yen against its peers. all 16 peers are rising. 2.2%,day, the dollar rose the biggest daily moves since october 21, 2014. in's not forget the dollar 2016 is still 14% lower against the japanese currency, the biggest annual fall since 2016, but the yen is falling for the second day. francine: thank you so much. european union finance ministers are meeting for the first time since the brexit vote with theresa may due to become the next prime minister. they now know who is in charge. ryan chilcote is in brussels. what has been the reaction to her appointment? the fin

one ofmonte paschi is the best performers of the stoxx 600.is working with authorities on a solution for its bad loans. only heard today, and this is in a report in an italian newspaper, it aims to sell 10 million euros in a dea npl's. the plan was discussed on thursday and is to involve the new bank fund. we are keeping a close eye on that. airfrance klm. a few things will come out for them today; i suspect the stop loss could be down to the cfo resigning. he will continue in the job until november. what we also got from air france was total passenger traffic numbers up one sent, but then also i talked about the pilot strike in june, and that impact was about 40 million euros. guy: thank you very much. the u.k. property sector has been in focus over the last few days. aberdeen one company that has been dealing with dating its funds, and has said that what it will do is ask and two or 3 -- is extend to or three days by around 17% and it is getting people to think about what they will do. we have seen dating up to and over 20 days, access the l

off by just 0.1% on the euro stoxx 50.ll we see significant outliers, significant moves from some of the companies reporting? let's have a look. 0.1%ntly up -- well, down looking at the ftse 100. we are waiting for the euro stoxx 50 significantly. looking pretty flat as we speak. we're about to speak to anglo american. as of now, looks as though a cautious trading market this morning after a cautiously optimistic federal reserve. manus: that slow crawl potentially from the federal reserve, not a news for the banks overall. anything that delays the rate hikes will weigh on the financial sector. the stoxx 600ap, inching a tiny fraction lower. consumer staples are the laggard this morning, down 1/8 of 1%. the three big names we are keeping an i on, one is about the consumer. is your neck of the woods. you've got a move there. royal dutch shell also down by 3.25%. ì(lc% overall numbers. credit suisse, waiting for a price on that. royal dutch shell, again, in tune with all the other oil majors. it depends on where the oil goes.

the gainers,ne of the best performer on the stoxx 600.ing maintenance recreational equipment like lawnmowers. basically, second-quarter operating at a profit. the turnaround of its consumer brand is proceeding to plan. that is one of the gainers this morning. as we look to the effect on the travel industry, we return to france which has extended the state of emergency. 10,000 members of the security arces are present after terrorist has killed 84 people. a truck loaded with weapons throw for a long day packed with people celebrating bastille day. an emergency statement was made. >> we are at a war with terrorists who will strike us at any price. caroline: we have been covering the story in france. let us know the latest. moment, there is a defensive meeting taking place in paris with the president and the prime minister. they will then head to nice later this morning. nice who youyor of could see here said the security measures in place last night were not sufficient. the state of emergency and the levels of security around the main touri

this is the stoxx 600. we rallied over 3% last week.nd basic resources take the stoxx 600 up. tragiced back on the news. you just put up the arm price. information technology is the driver here. all ships rise on a big old tied. softbank,s a deal for what does that mean for the marketplace? energy is down 0.25%. our colleagues saying that $40 is where the market thinks we could be. this is the turkish lira. what we saw was the biggest drop since 2000. we've managed to retrace near 50% of that move so far. the market is dealing with the aftermath of the coup. commerzbank states that you could see the currency strengthen. goldman sachs are more worried about the enduring effect, the ramifications in terms of hot money going into turkey. goldman has moved their lira target to 310. willis thanks -- will the central banks for a 50 basis point cut? we haven't got it yet. we closed on friday night at 11.89. this gives you a sense where we go. keep an eye on the pound as well. you've got this dramatic move post brexit. the analysts are saying m

one of the worst performers on the stoxx 600.er a marked deterioration in clothing sales. a subdued consumer spending ahead of the brexit vote. the numbers we got were worse than expected. caroline? caroline: thank you very much indeed. of course we're l also having an outlook on u.k. business confidence today. after a 4 1/2-year low. a gauge of sentiments slid to six from 32 in may according to data from lloyd's banking group. in the midst of the eurozone's sovereign debt woes. how will the brexit vote play ut in the current currency era? we successed this with a senior european economist. give us a sense how you're seeing the eurozone affect bid the brexit. what about the rest of the e.u.? will we see a ripple effect? will we see a breaking apart of the e.u.? >> well, it remains to be seen if a brexit shock will affect businesses, investments hiring in the euro area. as a matter of fact we have to wait for a couple of months before we see the full impact of brecks it in the surveys. the p.m.i. so far has not captured the effect

the stoxx 600 is rising. that's the longest winning stretch since july 11. we all the what happened on june 23. this index has risen by five point or percent. highs. below the we are up for a fourth day and we're up i 1% today. this is the volatility index over the last 12 months. this continues to rise further and further into bull market territory. this is the best performing stock market since june 24. that was the day the referendum will -- result became apparent. this is rising to the highest in almost five years. almost half.t is investors are certainly feeling better today after we know well -- now we will have a new prime minister. we have a big hit of data today. decreased 5% sales in june from the year earlier. they did slow toward the end of the month. they said it's too early to see if the trend will continue. saidhambers of commerce u.k. went into the referendum with little momentum. growth was uninspiring in the run-up to the june 23 of. the biggest decline is norway's biggest bank. there was a jump in loan losses which more than tripled. low i

group rising on the stoxx 600. helped in no small part by yesterday's fed meeting. still, the stoxx 600 is a low the close of june the 20th. this is the big piece of macro data. business confidence sinking to a four and a half year low in the days after britain voting to leave the eu. sliding to six in the wake of the record random -- referendum. the lowest level since december of 2001. the height of the european sovereign debt crisis. this gauge fell to -33 at the height of the financial crisis. the first negative reading since july 2012. let's focus on u.k. property. have u.k. property funds frozen withdrawals this week after four more joined the list. to dump realking estate holdings in the aftermath of the brexit vote. these are how asset managers and companies have fared. declines of 8% to 23%. be beingortugal might hit by eu sanctions. an unprecedented step to break budget deficit guidelines. this would be to enforce the rules to prevent another debt crisis. according to the european , he said both spain and portugal have feared off track in respect to their d

one of the best performers on the stoxx 600. and then, getinge, down. of the worst performers. t sales fell.r nex caroline: thank you, nejra. now, let's return to the britt's favorite topic of conversation, london real estate. a measure of house prices fell to its lowest levels in 2009. data confirmed fears. say, these numbers show the worst reading on your house price index in seven years, simon. we have buyer inquiries down. the boe might cut rates. is it time to start buying property, or is it still too uncertain? >> it was always likely we would see a little bit of a fallout from the eu referendum. this survey, which was conducted after the outcome, clearly confirms that. also part oft is a trend that emerged at the beginning of the second quarter, particularly the london data. these are also the tax changes george osborne announced, which led to that rush in the first quarter. it became more visible in a negative way through april and may. it extended into june. given that sort of unwinding, and given the discussions you were having earlier this mo

the stoxx 50 currently trading up. let's have a look at how the weei function is looking.p 1/10 of 1% at the ftse. how will bp play into that? how will sab miller play into it? we're seeing the cac 40 open pretty flat. we are waiting for the dax to open. all eyes are on commerzbank, on deutsche bank, after those prerelease numbers. manus: yeah. that is certainly going to be the driver. london is one of the few markets eking out a win. the monetary policy committee say, luck, i have seen enough numbers, ready to do more stimulus. this is the state of play in terms of the markets. you're seeing some pretty interesting moves. we had seen the rest of europe set for a slightly, slightly lower opening, london eking out a gain. 's look at the individual names. bp will be the real focus for the oil market, down 2.34%. the downstream business so profitability drop by 19%, despite the average price of tode rising in this quarter $47 versus the first quarter of $35.01. we're waiting for an opening in ab inbev. 45 pounds is the new bid. inbev for sab ab miller. as theyank is waiting,

still the stoxx 600 is down by roughly 5% from june 24.very single industry group rising today, led by auto parts, banks, real estate, and technology. the index getting a boost from the jobs report today. consumer confidence not getting a boost from the brexit vote. u.k. consumer confidence plunging to the most in 21 years. the latest sign that brexit is harming the nation's outlook. the core index leading to minus nine. this is a special post referendum survey conducted june 30 to july 5. it was at -1 earlier in june in this is the biggest slide since december 1994. we had a lloyds banking group gauge yesterday showing business center, but sinking in the days after the referendum as well. let's move it on. i want to show you this chart which i absolutely love. this is the ftse all share tseex, essentially the f and ftse all. do not get too hung up on brexit. it says valuations on the msci excluding u.k. and the ftse all share index look attractive when they look at the price earnings ratios, which were adjusted for inflation over the last

still the stoxx 600 is 6.7% below the close on june 23. all industry groups arriving.s is the big piece of data today. u.k. business confidence sinking to a 4.50 low in the days after written -- after britain voted to leave the u.k. -- the eu. more service showing that sort of figure. this is an interesting chart for you. these are the big home builders in the u.k. since the referendum on june 24. you see all of them are falling between 28% to 39%. reiterate, also housing market fundamentals remain strong that it is too early to assess the impact of the referendum on the u.k. economy. after this seven property funds have frozen withdrawals this week after four more joined the lift on friday. you've got declines from aberdeen of a percent to henderson group, down by 22%. francine: mark barton with the asset classes you need to be looking at. surveillance is up next. tom keene will be joining me from new york. about italy'sking good banks and talking to a general manager of any credit. we will look at some of the havens, markets. more of that coming up on surveillance an

if we look at the stoxx 600 it is up 3/10 of 1%. not massive gains but we are seeing risk.ok at the stoxx 600 and industry groups performing the best on the bloomberg it is technology stocks leading those gains up 3.6%. guess what? the biggest gainer among them is arm, this has jumped the most ever and hit its highest point ever today since 1998. a really big surge in the stock after the news that softbank has agreed to acquire it for $32 billion and a 43% premium to friday's close. interview isa tv all happened very quickly. we have seen the reaction happened very quickly. one thing i want to note that is quite interesting is that short interest in arm holdings is close to a six year high. whether these gains will last is another question. we are seeing a big move higher on the stock today. i wanted to look at sterling, we have had some comments of the bank of england saying that the weakness may not be as severe as previous recessions in the u.k.. he also said that to the bank of england should wait for further evidence before a policy change. we are seeing sterling exten

the stoxx 600 cheaper since 2012. do you look at european stocks?o they plan the relative valuation basis or not? >> we are still somewhat cautious of european equities. a number of headline risk are yet to come. asdo not have a resolution to when article 50 may be involved. especially this is fun to have later in the year. certainly after october. we do not have clarity as far as the severity of the italian banking situation. potential finance meeting on july 11 and 12, which could show sanctions against torture and spain for failing to meet budget targets. clarification a as far as the stress test likely to be released later this month. we favor perspective, the s&p over the ftse 100 and potentially the euro stock is tough. vonnie: what about emerging markets? little bit emerging markets with the rebound happening. >> yes. that is one thing we have been highlighting. looking at emerging markets relevant to things such as gold itself. we saw the price ratio relationship between emerging markets and gold was almost at a all-time well at least in the

pretty much flat on the stoxx 600.ulie was mentioning, this is , right now uprmer 43%, the biggest jump on record and it highest price on record. this is after softbank agreed to for $32 billion, a 43% premium on friday's close. i finally want to take a check on sterling. up .5%. best g 10the performer against the greenback today after bank of america -- the bank of england policymaker said firm evidence was needed on the impact of brexit. vonnie: let's check in on the first word news this morning. now that he has crushed a coup, turkey's president has a demand for a country he calls a strategic partner. he wants the u.s. to hand over a preacher he blames for conspiring the coup. secretary of state john kerry says before the u.s. would agree to extradite him, turkey would have to prove the accusation. bloombergntime, surveillance was told how much of this would cost turkey. >> they were 100% all in with nato. they hosted the largest nato headquarters and yet at this distraction that comes out of that will make them les

the european stoxx 600 seen a little bit of volatility.he stock has lost the momentum that it had in asia. let's get to the bloomberg first word news with nejra cehic. their mark carney begin two-week pilot -- there today policy meet later. and are expected to cut that is the first time since 2009 according to a majority of economists. 30 of the 54 people pulled predict a 25 basis point cut to 0.25%. japan's chief cabinet secretary has denied a report that officials are considering introducing helicopter money. that comes after the newspaper said the policy is being mode and a boost to the economy. -- mode in a boost to the economy. the currency would weaken if japan took such a step. japan's biggest bank is quitting its role as one of the 22 binary deals -- dealers -- 22 primary dealers. it is the first financial institution to withdraw since the central bank introduction of negative interest rates this year caused yields to tumble below zero. saysse premier leader beijing can achieve its growth target of 6.5% through continuous reform an

mark: we were talking about cutting losses from the post brexit vote and the stoxx 600 has not achieved that. it is still down by 5.75%. it received a one point 5% boost with the jobs report gaining for the second consecutive day. only to sectors have risen -- health care and food and beverages. insurance has slumped by 17%, but we are up for a consecutive day. you can consumer confidence ,lunging the most in 21 years the latest sign that brexit is harming the uk's outlook. to minusindex sliding nine. it was a special post referendum and the earlier figure was minus one. since biggest slide december 1994, the impact of uncertainty becoming increasingly evident as well. this is the latest figure to show that there has been an impact on surveys from the referendum. the big gainer today here in europe, denmark's largest phone company, was shares rising as much as 12%, the most since 2007. they confirmed they received a approach,take over responding to a report that apollo global management is interested in buying it and taking it private. tdc did not say who the approach was from. they sai

as we look at the stoxx 600, we are much desperate much unchanged. we are off by about .2%.e did see some weakness earlier. we'll get a reaction in sterling. it is sliding, down 1% at the moment. the quick dash key question is will the signs of weakness persists, or was it an initial post frexit shock? -- posted brexit shock? more stimulus, markets are pricing in an 88% probability that the boe will cut rates on august 4. the ftse 100, it will moderately recoup losses. is up about 5%. market reports had one bright spot because of the index of new manufacturing exports rose the most in about two years. that is thank you a sharp fall in the pound. is brexit helping those globally facing companies? one of those companies is vodafone, it is rising after sales were upbeat. organic fourth quarter, sales revenue beat estimates, about for 28%. let's check in on first word news. we have more from our newsroom. is painting ap dark picture of updating nation that only he can save -- fading nation that only he can say. he warned of a country beset by trying -- crime, terrorism, and bad

appetite for risk has diminished and the stoxx 600 has barely changed.est left-handst column are rising. all of the currencies are falling against the dollar. yields are rising in these countries, credit default swaps gaining. appetite for risk declining somewhat as the fed kicks off its meeting. boj will take place thursday and friday. bankshares earlier falling the most in a month. germany'second-biggest bank is quoted -- disclosing an unexpected drop, a key measure in unexpected strength hurt by operational risks such as legal expenses. the tier one ratio fell to 11.5% at the end of june from 12% three months earlier. why they didonder not see this coming. net income in the second quarter fell about 2% and these are the two big german lenders in 2016, roughly performing the same and both declining roughly 42% today. tire maker, biggest profit rising better than estimated 11%. cost-cutting plan kicking and and car sales growth accelerating in china. it stuck to a 2016 financial target and expects the market for passenger car and light truck tires to re

in stock market you see the stoxx 600 pretty much unchanged.ke that across the various indices. the dax up 3/10 of a percent. a bit of fluctuation in european stocks today. let's take a look at how some other asset classes are doing. we did see the euro rise while mario draghi was speaking. 996. the german ten-year bund yield touched its high in four weeks. down one basis point at the moment. again.y, below zero did go above zero earlier. 10 year spanish yield down four basis points. ♪ vonnie: from new york, i'm vonnie quinn. watching the european close on "bloomberg markets." ♪ >> we will take you from cleveland to paris and cover stories out of frankfurt and istanbul in the last hour is what we are watching. ecb president mario draghi signaling essential bark -- bank will consider --when it has a clear picture of the impact of the u.k. vote to leave the european union. the union pacific chairman us.ceo joins >> turkey imposing a three-month state of emergency

the stoxx 600 is rising for the fourth consecutive day. just want to tell you about a bit of data we had today. starting with u.k. manufacturing picking up speed in june. it was glowing -- growing at the fastest pace in five months. head of the referendum, expectations were for the gauge to remain unchanged, we rose to 52.1. probably won't see big fallout from the brexit for some time in the hard data, the governor saying the outlook has deteriorated, policy easing may be needed for months. he says uncertainty could remain elevated for some time. some pmi data out of the eurozone as well, growing faster than initially estimated in june. recording its best performance this year. results were connected -- collected prior to the brexit vote, highlighting the challenges the policy makers facing coming months. the only nation to show manufacturing in contraction was france, due to strikes. greece enjoyed a welcome return with its best rating in more than two years. i wanted to show you the yield on some of europe's principal bond markets. u.k.v

the stoxx europe 600 up by .9%.he ftse is gaining ahead of the .1%.ate decision, up by sterling is rising, up by .5%. 1.3214. everybody's waiting for the bank of england. will we see the first rate cut since march 2009? let's get first word news with nejra cehic. nejra: britain's new prime minister theresa may has announced a key member of her cabinet. boris johnson becomes foreign secretary. philip hammond replaces george osborne. david davis has been assigned the task of overseeing brexit negotiations. -- its lowest level since the height of the financial crisis. that is as brexit since -- brexit since it shockwaves across the u.k. frommped two -46 in june -35. that is the weakest reading since early 2009 at all responses were received after the european union referendum. ubs and merrill lynch have topped the banking industry topping more than $300 trillion combined. that is according to a study. morgan stanley dropped to number three. asset managers shrank at all three banks. credit suisse has changed the structu

the stoxx 600 is barely changed. it was up earlier, the longest stretch since the referendum. ftse is slightly up. is marginally up as well. let's check out what is happening on downing street. any minute now we are expecting , get in aron to leave car, tender his resignation to the queen at buckingham palace. ♪ mark: stocks finishing up the wednesday session. looks like of a four-day winning run might be coming to an end in a small decline from the stoxx 600, down by zero .0 -- 0.01%. if we rise for a third day, it will be the best stretch since june 23 and it has been a rally of roughly 6%. since june 23.% runsterling's three-day looks to be coming to an end here and it is touch and go. sterling is down by 10.6% of but the four-day move is an upward one. some interesting moves on the homebuilders. we have barra to development seeing another strong performance. it is too early to say what the impact of what the eu referendum will be. june 24, we have come up off the lows. .e still see the declines just after the referendum, those percent, were roughly 40 45%. u.k. bonds have

some of the best performers on the stoxx 600 this morning are the miners of precious metals.ne this because of the rally in gold and silver. ounce topped $21 and earlier for the first time in two years. that metal has outpaced gold this year. some see it will continue to outpace gold. assets in gold etf at the highest since august 2013. wrangler resources up almost 4%. halted brieflyre earlier. looks like they are moving again. down 5.6%. inre were some reports saying that the ecb has requested this bank to present a plan on bad loans as soon as possible. this is a letter from the ecb received the day before the brexit referendum saying the itser has to reduce nonperforming loan ratio to a normal level. i know you have been focusing a lot on italian banks this morning. guy: let us look at the block -- at the bond market. where do we go from here? story isean fascinating. we are joined by the chief macro strategist at rcb. at the moment, we have a curve that looks broadly like that. we were here a month ago. the curve has flattened out. what will happen next? what will the ban

every single industry group on the stoxx 600 advancing, today.capitalism, switch of the board. i will with through the other throughasses -- whip the other asset classes. fantastic calls at the moment. yields on the 10 year creeping up higher, 1.41%. that is the situation across assets. let's cross over to julie hyman. julie: creeping higher is how you might explain or describe what is going on in u.s. stocks. it looks like keeping some drive how to for tomorrow when we get the official jobs report. the eq showing drive growth in line with estimates for the overall number, but we have had a lot of emphasis put on that report, particularly in the wake of the federal reserve minutes from this last-minute -- meeting that showed the expressed some concern about the last jobs report. tomorrow will give us some indication of that. let's take a look at what is going on with individual stocks. pepsi stock is up 2%. we were talking about those results in detail. this next few -- snack food business really pushing pepsi's gains. staying in food, we had tha

europe, the rally on the stoxx 600 is losing steam. down .2%.on the ftse 100 -- because it is close to entering a bull market -- up some 90% since a february low. commodity producers are the best performers with the rally in commodities we are seeing today. banks are heading lower with italian banks particularly hard hit. let's switch of the board and take a look at what is happening elsewhere. silver has gone above $21 per ounce. it did that earlier for the first time in two years. gold also rally on the bid for the safe haven, and brent crude is holding above $50 a barrel, as you can see. we are keeping an eye on sterling, up ever so slightly after a two-week drop. dollar-yen, we are seeing dollar strength, yen weakness today. we will have more news and markets in half an hour. for now, it is back to "best of bloomberg." ♪ shery: you are watching "bloomberg best." i am shery ahn. them in drug pricing, and r&d pipelines -- this week we got unique perspective from the chief executives of the world's most notable pharmaceutical companies. this is

i want to look at the stoxx 600 and see how it's opening up. at the imap on the bloomberg, it looks like financials are the best performers, up 1%. this risk appetite, continuing. energys like it could be that is the worst performer at the moment, interesting given the oil price. performer, the best followed by consumer discretionary and telecom. it is energy and utilities lagging. overall, we are seeing gains. if we see how the u.k. 10-year yield is doing, this dropped to a record low. it fell below 1% for the first time ever in the brexit aftermath. we are down one basis point on , looking at yield 0.84%. i wanted to take a look at the ftse 100. refresh this for you. it's headed towards its best weeks since 2011. you've got to take into account the weaker pound. it is still not looking pretty if you are an international investor. it looks like some of the best performers, dickson carr phones, notds ranking -- banks, doing too poorly. looking at the week performers, astor zeneca, diageo, travis, perkins. this is how we are looking at individua

the worst performer today, have a look at the key performers on the stoxx 600.rading has been halted. the worst performer, down some 5.5%. m&a is inher side, the air. that approach is confirmed by 888 and ranks. so, we will see if we get a bid coming from william hill. son, we areics up 5.7%. but the big shareholders wanted a new ceo and a new strategy focus for the business. , also, ryanair doing very well. no profit warning for now. for the moment, they stick to the overall numbers. let's get the rest of the bloomberg first word news. 12 finance chiefs have signaled concerns about anti-globalization sentiment. members of the g-20 discussed renewed efforts to use fiscal measures to boost global economic output. christine lagarde said there was a consensus that more needs to be done to share the benefits of growth. a suicide bomber has killed at least 10 people there and music festival in germany. this is according to the press association. the attacker was a syrian refugee who was denied asylum, but allowed to remain in the country because of the dangers of ret

looking at europe, the stoxx 600, the rally is losing steam at it is down -- as it is down .4 of 1%. the commodity rally we are seeing today, where banks are areing lower, banks particularly hard hit. we are keeping an eye on sterling. it was rally in early. it is flattening after its worst two-week drop in more than seven years. let's see some other asset classes. starting with silver. i wanted to bring this up because it hit a two-year high earlier today, going above $21 an ounce for the first time in two years. gold has been heading higher as well on the bid for the safe haven. brent crude is holding above $50 a barrel on those reports of fresh attacks from nigerian militants. the spain-10 year government upd you up 3 -- bond yield three basis points. we will have more news and markets in half an hour. now back to "best of west." ♪ cory: i am cory johnson, in for emily chang, and this is the best of "bloomberg west." we bring you all of our top interviews from the week in technology. coming up, the brexit vote. we'll find out what it means for investors. plus, our exclusive sit do