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tv   Bloomberg Daybreak Europe  Bloomberg  July 25, 2017 1:00am-2:30am EDT

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shery: greece's back. the cash-strapped country returns to the bond market today after three years. the senate reversed to take up the health bill yet again as john mccain flies back to washington to cast his vote. shery: alphabet soup. the tech giants shares fall. profit was hammered by the record eu antitrust fine.
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welcome back. what come to "bloomberg daybreak: europe." anna: i am anna edwards. germanlet's get into the chemical maker. we are talking about polyurethane, polycarbonate, they are guiding higher. second quarter sales 3.9 billion , the market had penciled in 2.4 4 billion. significantly above 2016. the sales came in, that could be the ebitda. 577.5.ket penciled in this is about coatings, adhesive's, and specialty chemicals. they are my wing -- mulling over hundreds of deals. they are expected to produce 5 billion years -- 5 billion euros
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over the next few years. we will ask the question to the ceo. dutch paints the maker and chemicals business, fascinating comments coming through. we have earnings for the second quarter. revenues up by .4%. -- by 4%. akzonobel convening an extraordinary general meeting to improve shareholder relations. theexpect to -- they expect ebit to be higher. reporting this new structure and also senior executive pay will be aligned with this new plan and this new executive, new supervisory board committing -- committee. interesting changes. ppg may have walked away, they
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were bidding for this business but elliott, the activist shareholders have not given up the chase here. they maintain pressure on akzonobel since ppg walked away from the approach. elliott made a second attempt in court this thursday to oust the chairman anthony bergman and they have been pushing to shake the agenda at a shareholder meeting and that is where elliott could step in with this meeting, this is g.m. that is scheduled to take place around the apartment of the new ceo. the former ceo resigned suddenly for unspecified health reasons a week or so ago. now all the attention will turn to this egm. they are convening this to improve shareholder relations. we will talk about this was one of our colleagues who has been following the akso story. manus: as we are waiting for the not -- rundstedt numbers.
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ebit, 2.9numbers for 3 billion. just shy of the 3 billion norwegian krone that was the estimate. bloomberg intelligence talking about ahead of these numbers how the earnings growth will depend on improve them and them prices, volume gains and dollar strength. ceoill be speaking to the for his first interview at 9:00 a.m. u.k. time. manus: it will be september 8 for the general meeting. let's talk about the risk radar. we are waiting for the federal reserve to begin their two-day meeting. we see demand for government bonds in japan rise, the highest level in the most two years. this is the equity story. we are at a 10 year high. we rallied for 10, 11 straight days, we have the fed in place. technology and industrial shares holding back.
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and speaking and asia in the past hour, talking about a resilient euro area and the rate jolt on and unexpected thursday. the euro area growth might be in an upward trend. interesting to see the euro kicking higher. he is talking about how the risks to growth may be on the upside but emphasizing costs and wages. pressure still remains. the oil market, interesting in relation to what we have seen in state petersburg. crudeing deep cuts to exports next month, pushing the oil price of 1.2% at another .6 this morning. yusuf on thee have the first word news with juliette saly patiently standing by. juliette: thank you.
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u.s. president donald trump's son-in-law did all -- jared kushner said he had no contacts with russia. they spent two and half hours answering questions from senate investigators examining meddling by moscow in the 2016 election. >> i did not collude with russia. nor do i know of anyone else in the campaign who did so. contacts.mproper i have not relied on russian funds for my businesses. and i have been fully transparent in providing all requested information. president trump and his advisers are reportedly discussing in private the possibility of replacing attorney general jeff sessions. according to the washington post, citing people familiar with the talks, some confidence -- some of the circle has
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raise the question among themselves in recent days. greece will return to the bond market after a three-year hiatus banking on investor interest in its recovery. the country which was the epicenter of a european sovereign crisis that began in 2009 is looking to sell five-year bonds. bondsinvolving holders of to tender the notes for cash. the bonds are expected to be priced today. turkey's president has urged qatar and arab countries i slitting it to negotiate an end to the crisis dividing them as he wrapped up a tool -- a two day off to her. president or to one supports mediation efforts led by kuwait. trip, he went to saudi arabia and qatar. according to a person familiar
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with the matter, the project calls for treating in the german city to go live in september 2018 and for the assets to be moved by march 2019. that is as client trading and -- migrate to the continent following the decision to leave the european union by britain. downresident duda struck bills that would replace judges and revamp the personnel which makes key decisions. it followed a days of nationwide protest by tens of thousands of polls in defense of independence and an eu threat of sanctions. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg as -- at top . we are with -- awaiting the fed decision. you have the yen weighing on the
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nikkei coming off that 20,000 point level. also some weakness in chinese and hong kong stocks particularly in the properties sector. austria's market looking strong, one of the front runners in the region and have a look at the nitze. we saw it rise above the 10,000 point level for the first time as we continue to see a lot of investors buying into the indian market. have a look at the stocks we are watching once again, toshiba's division made some accounting errors. china, of 7.1%. some analysts are saying it is still too very highly leveraged. even though it came through with a very strong second-quarter profit. this chart, iat
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mentioned this run-up you have seen an indian markets. this chart here shows you that perhaps the bull run could be coming to an end. this is a chart of the 50 day average of stock deliveries and it has fallen to the lowest level since september. one analyst in mumbai telling us perhaps his rally could be over in india. the nfti anna: after undergoing surgery u.s.ain cancer last week, senator john mccain will return to washington as the senate prepares to take up the embattled health care legislation. manus: majority leader mitch mcconnell said the senate will vote on whether to begin a debate on the bill. let's bring in jodi schneider. she is standing by. we will get her in just a moment. mccain in the midst of what must be one of the most perfect
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health scourges you have, this man gets on a plane to get in there to get his vote create i wonder is this symbolic and to what end does it hold everything up again question mark we see another debacle over health. anna: he was tweeting about the situation in poland as well. -- we have tried to get hold of jodi. gets underwayg today. investors will be watching for the announcement of a start date for the runoff sheet balance cap. manus: what better man to define , from the bank of tokyo mitsubishi. the two day meeting begins, to what extent, you sat down and said they have to send a clear
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message, alan sheet production has nothing to do with monetary policy. will they? guest: if you look at the rhetoric we have had from fomc officials they have said the same thing. it is going to start and relatively soon. we have seen the plan being laid out. all the information is there. the only thing missing is the date. there is a good chance they could indicate something like where going to start and start in september after august. feds loading up the balance sheet was an active monetary stimulus, how is reducing the fed's balance sheet not an active monetary tightening? guest: overtime you have to acknowledge there is an element stimulusry reversal of within us. the argument the fed is making is they are going to be going at such a slow pace that could be stopped at any moment in time.
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they want to try and separate us as something more technical rather than monetary policy. it is a good point. over time, the shrinking of the fed's balance sheet is taking money out of the system and therefore you have to conclude that there is a very gradual tightening process involved in what they are doing. manus: the one thing i saw last night was in the bond market and it came down to this, this was the three-month auction and this is potentially the next egg issue which is the debt ceiling area there was a buyers strike in terms of three months, the lowest demand didn't eight years. aam presuming the fed goes on no turn tonight but the next issue for the market to decide is the debt ceiling and they are incredibly worried but best about this chart. look at it. is a: the debt ceiling major issue, it was a major issue last time for the markets and it resulted in a huge amount of allah tony and risk aversion.
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-- volatility and risk aversion. there is a lot going on in terms of uncertainty in relation to broad economic policy. and going into that if it does become a big issue of disagreement it pushes back even further, the idea of any type of stimulus coming in terms of tax cuts. it is potentially a big issue for the market. positioning,s of hedge funds increasingly betting against two-year treasuries to record levels. you have the chart there. suggesting maybe they see higher yields. some of the concern is that the fed is going to be increasingly dovish. how do you reconcile what we are seeing in treasury markets with the board's narrative? derek: we still have got the dot plots and -- in terms of the fed
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moving forward with tightening. the balance sheet is a liquidity story. that does have application for -- implications for the market as well. in terms of where we are with the fed, where going to get to a point very soon in relation to whether or not we see the communication change from the fed or not. we have had about four months of softer than expected inflation. either that is going to continue or we are about to get a turn. if we see that continue, the fed are going to have to change course, change the communication and perhaps positioning is incorrect. if we have a turnaround in the data, we are still on track and there is a lot that still needs to be priced in terms of what the fed is doing over the next 12 months or so. much.thank you very manus: let's get back to jodi schneider. good to see you.
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we were talking about john mccain, and it was making the point that he is able to talk about global politics amid all the health scares. what are the chances of getting this legislation passed in the united states? having senator mccain come back is symbolically important. he is a major figure in washington and it is significant, it would be emotionally significant, it will be an emotional moment to have them there after last week area we found out that he had been diagnosed with brain cancer and had surgery last week as well. having him come to washington is symbolic. it would help in terms of the procedural vote that will occur to move on to the legislation. after that, they have to take a real vote on the legislation, we are not exactly sure which health ill they are voting on and that will be hard to get through. they have a majority of 52-48 in the senate. to lose a fewd
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votes. one of them, susan collins of maine is an assured loss, she said she has homes with the legislation. if they are able to get it through the senate they have to reconcile it with the house bill. the senate -- the house has to bill that is different from the senate and they are on a timetable. the august recess is set to begin very soon. anna: the busy agenda in terms of health care. president trump has been busy on this and other matters. run us through the statement. jodi: last evening he went to talk to boy scouts, at what is called their jamboree. a big convocation for the men west virginia and started out by saying i will not talk politics and then he talked politics. he talked about hillary clinton and his win over hillary clinton and then warned the senate that they better pass the health care bill. he called out the west virginia senator who has had a few problems with the repeal and
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replace bill and said she had better go ahead and vote for it. he has been busy. he tweeted about the washington post and its ownership by the amazon owner and founder. anna: thank you for the update. jodi schneider with every thing you need to know from capitol hill. a bit of breaking news. manus: this is one of the biggest employers, the gross -- 1.1 9me in at 1.9 billion. that is just pretty much in line with what the market had anticipated. there is exposure in the u.s., 20% of the business is there and --ig european exposure is exposure. we will have that conversation with the cfo in just under 22 minutes. talking about that and the strength of the euro zone
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economy. where talking about the fed decision, the meeting starts today. 7:00 p.m.llow from london time. in a: as fox gets involved riot over chicken. we will focus in on u.k. trades. and the prospects for a post-brexit trade deal. anna: you're looking at a live shot of st. petersburg. you're looking at saint isaacs casino -- cathedral. we will have an update shortly. this is bloomberg. ♪
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manus: it has gone 6:22 a.m. in london and it is all about striking a trade-in with the european union by 2019, divorce which will be difficult for the u.k. to achieve. anna: that acknowledgment came
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from the british trade secretary who is in the west wing to drum up new business ahead of brexit. a sign that you can government will see a transition after leaving the bloc. this, what seems to be a cola sing from the cabinet around the idea of transition. we saw that and yet the pound has, are you surprised the pound expected to beou stronger on that kind of news? guest: it was significant news. i suppose there are offsetting factors, the flow of data is suggesting the economy is on a weaker footing than it was a couple of months ago. there has been talk of recession, i do not believe it but the media is focusing on that element of risk. that is taking the bank of
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england. you have that dynamic in the background. this is short-term. we had two weeks of negotiations and again, the conclusion seems to be that it has gone well and that is curtailing some demand for the pound. the bigger picture here is one of the biggest issues about brexit was march 2019 and that to thedge disrupted risk economy. you ask any corporate in the u.k., that was their number one concern. fox -- liam fox was that is not where the power in the cabinet is. manus: the possibility is that they remain, what emboldens you a little bit. thesaid this is misconception by the marketplace which is let's have a look at this on the screen.
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this is the misconception by the market and you had called it up to 140. do you think single market access is still achievable in the transition, is that is what is driving your thinking? derek: absolutely. it is down to what hammond is talking about which is removing the risk of disruption, can say -- ensuring there is continuing ancy.- continu period isar unrealistic and it looks like there is pragmatism taking over from ideology. that would be your point. eric: fox and others who are , they wereeers talking about a month of transition so there has been a
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big shift in the realization is the parliamentary numbers dictate more now what kind of pictures. anna: we saw of liam fox speaking in the u.s., he is there to lay the groundwork for a trade deal. it is a long way to march 2019. the lyrical risk for both of these governments. what they look like i march 2019 when we could stop -- start talking about the trade deal. sides, who knows who will be their? there is definitely that big element. from the u.k. perspective, the fact that we have this kind of unified approach, it does help theresa may. i was worried because i was thinking this bickering within cabinet is undermining theresa may, it is not going to last. anna: thank you. have the numbers, we will dig into those numbers with
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the cfo. is there a wage squeeze anywhere in the world? that is the man who will have the information. ♪
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anna: welcome back. this is "bloomberg daybreak: europe." it is 2:30 p.m. in tokyo. euro. movement in the pressurebit of upward on the currency. let's talk about corporate earnings. manus: we had the alphabet numbers last night. the company's costs are arising in its expanding advertising business. cory johnson has this report. confusing quarter from google. andou -- the stock sold off
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wall street did not like it. $29 was there to like? billion in the second quarter revenues. what looks like a very strong quarter. use the two trends going on for a long time. is selling a lot more ads. the year-over-year increase was 52% on the number of ads that users clicked on so the prices declined by 23%. the present -- price decline outmatched by the number of ads that were picked on. that looks like good news for google. the real problem here was the cost of getting those ads. costs,ffic acquisition google goes to other companies to pay for the right to run an ad on an apple iphone. google paid more money now than ever before. we saw a big rise in that
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traffic acquisition costs number. google has warned that the costs are going to go up and we saw in the second quarter results area that is why the stock started to selloff after all this trading. googleterm trend that warned about but that was the most alarming thing for investors and the reason the stock sold off, there was a strong quarter in topline and price per ad, the number of ads very strong in earnings per share of five dollars and one cent -- one cent. coststraffic acquisition a concern for google and parent amazon. >> we are looking ahead to the fed meeting and we see asian stocks climb as the dollar stays weaker, we are pretty much flat on the dollar index but we are below 95, 93, 92.
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asian stocks overall gaining close to those multiyear highs. a bit of a mixed picture, some weakness in japan for the stronger yen for the sixth day against the dollar. equity gains on asian benchmarks. i am keeping a close eye on the euro. rebounding after some weakness yesterday and the big story last meeting,owing the ecb 156 on the euro. this chart tracks the euro-dollar against the treasury bund two-year spread. we have seen a bit of diversion between the euro and that spread. and looking at oil moving higher, we are .6 of 1% higher. wti approaching $47 a barrel. this after the opec-non-opec meeting had saudi committing to
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cut exports. non-i put -- non-opec countries might put a cap, we are seeing to bti higher than the day before the opec deal in november 2016. manus: saudi arabia has promised to cut the crude exports next month and emphasizes that it is committed to a limiting the global supply glut. wereas fellow opec members told you are free to keep increasing your output. anna: opec production will be capped at 66 million barrels per day in august, one million lower than a year earlier. he added that -- what he expects from all opec members. acquiring the participation of each and every of the 24 countries. and all of us benefit equally in
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on thef the impact health of our industry and the economic returns. we are going to continue to forcefully demand participation by all. manus: let's get to st. petersburg. great work over the past couple of days. how do you assess this meeting between opec and non-opec, will they walk away and say yes, this was a successful get together, saudi arabia doing the heavy lifting again. yousef: they are doing the heavy lifting but there are some key points to take away that are important for the long term future. free writing, they will get tougher on those who are standing out in terms of not pulling their weight. one of them has been a rent. they are going to demand that
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compliance forcefully. the second key theme is they will add new metrics to monitor mobile crude flow. .t adds export data nimbleness, this is fundamental to the story in terms of being able to adapt policy to market conditions. alexanderten to what novak had to say about possible extensions. ask any minister this question, everybody will at this point respond, we are ready to review this but the key question that should be asked is should the decision be made now or at a later date, when we have more data and details as to how the markets -- market is performing. so at this point in st. petersburg we have conveyed, we have discussed, and we have
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decided to recommend that all the ministers keep this option inthe table, think about it case it is needed in the future to rebalance the markets. asked about what an exit strategy would look like, and he said it would be very gradual which gives you a sense of how long this deal could drag on for. anna: thank you ray much. -- very much. in saint petersburg for us. let's talk about the temporary staffing agency company which we had numbers from. the cfo joins us. great to have you on the program. i want to ask you about where you have been surprised in the most recent quarter, where have you been surprised about growth in a positive sense and where have you been surprised about wages, give us an update on the
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things that are different escorted from the one before. guest: good morning, good to be back. it was a pretty good quarter at would say. the strongest performance we have seen is in europe. which isne grew by 11% an acceleration compared to the previous quarter. very specifically visible in the industry segment. employees we are much more and that goes hand-in-hand with relatively stable wages in europe. america, we see continued wage inflation but much lower growth. let's focus in on the european story. we were talking about this morning, we were looking at france and french consumer confidence is rising. there is this strong macron affect. the question that came to her mind was tell us what has changed since macron came to power in france, have you seen
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the next on ration, a shift, what are the changes in france? guest: we see the growth in france going up from 9% to 14 in the second quarter. that is visible and driven by the industrial segment. i think the conversation we have in france are more confident in terms of the better economic future. we do see growth in the french market also in the permanent placement business which is specifically [inaudible] clearly anis improvement. across the board in blue-collar staffing but in white-collar staffing. adding up to 14% growth for the quarter. evaluate do you
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president's chance of reforming the labor market, you must hear all of -- things all the time, attention expected to bubble up as he tries to address these issues around labor market reform. what chances of success? a hero is needed in france because of the urgency we can see. this is also a big importer in the french market. we can see the difficulties, the in the french market of operating the company smoothly. we can confirm the urgency is massive. the elections have put a lot of force behind some a who seems to be willing to be aggressive. he has made some specific statements. on the subsidies in the french market which are relevant to low-end wages and they have been confront to continue maybe
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in another form but they still will continue. that is a relevant signal. manus: the largest proportion in your business is by -- in north america by revenue. you touched on it briefly as regards wages. we have had conversation with a number of ceos who are telling us the uso -- the u.s., and it until wage of time inflation feeds through. would you concur? guest: we concur and we have seen wage inflation for the last quarter's coming through which .s two or 3% we can confirm that, certainly. anna: more broadly in the u.s., how does the u.s. economy look to you as we debate seemingly fedtantly here where the moves next met when we see rate tightening, how strong is the underling picture in the u.s. question mark -- in the u.s.?
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there was low growth but it started to grow at the end of 2009 and it has continued. we have some segments, our i.t. business which was going 1% and in q1 going to percent. it is flat, clearly not decelerating but also not accelerating. manus: one final question, the netherlands is a considerable portion of your business. there is don't of government four months after i sat on the canal in amsterdam and went up to the capital. what impact is that having a business? guest: that is in a trusting question. an impacts can have unless it is more central ruled country like france. biggest think -- the journeys are numbers, we are
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selective and that is suppressing our growth. toould like the government be in place sooner rather than later. nottoll on our business is visible at this point. anna: thank you for your time. joining us for the first interview of the day. manus: if you are bloomberg customer you can get every thing on tv , the video, streaming, and charts. ask questions directly. there is a producer standing by to take your questions. anna: the return to the bond market after a three-year break. greek banks have investor interest is the recovery continues. this is bloomberg. ♪
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anna: occam back.
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-- welcome back. let's get a bloomberg business flash. shares fellphabet after second quarter results highlighted that the company's costs are rising as it spends more to expand googles newer faster growing advertiser business. 20 ninepany's sales of $2 billion in line with analyst belowsus forecast but bullish expectations. profit was hammered from a record antitrust fund. rio tinto faces a probe by the afterroad office months australia's federal police started an investigation into in the african nation. the company said it will cooperate with relevant authorities. chief executive
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is leaving the company after agreeing to a 25 million euro severance package. his exit comes after 16 months in the role with one of the richest golden parachutes granted in italy. the agreement paves the way for top shareholders to it install a fourth ceo at the flight carrier, the fourth in less than four years. that is your bloomberg business flash. thank you. greece is back to the bond market after a three-year hiatus. they're looking to sell five-year bonds and expected to be priced today. the founder of thought for action joining us. the greeks are back in the bond market, good news, good signal? guest: that is what anybody wants to hear, there is a great demand for yields right now, there is worries all the time about the greek debt. it seems that it looks like a good signal for today and i hope for a little longer. anna: what does this tell us
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about the overall level of borrowing in greece and i understand the imf has put a limit on the level of debt that greece is allowed to take on. what is happening underneath the surface? guest: one should look at this as a financial traders point of view. looking at the yields right now, and one should look at the ratio of debt to gdp. if this bond issuance would represent and that is a challenge, a reduction of borrowing costs for the economy, this would be fantastic. the economy should make sure that doing business in greece structurally and the incense vocation of doing business, the reduction of [inaudible] should be tops.
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for us to be able to see a long-term reduction of the borrowing costs. that would match the signal we're going to get today. the questions the marketplace asks is the ability to reflect the reforms they promised international creditors. is that on track, cannot still be effected? is it still on track, we will see. this issuance is pushing our next financial burden of after 2019 todebt 2022. that gives us a window of opportunity for us to work further on structural reforms and finally have over a year, 18 months of only focus in making our borrowing costs lower and productivity higher. that is a challenge. we have to look closely and say
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-- see if this is going to take place. this would be a fantastic idea if it would have an official re-profilinging -- . the sustainability of the debt would be perfect. the imf has given conditional support. the report a former member of the greek parliament -- looking at the government what does that -- what does that tell us about the government depending on how today goes, is this any kind of vote of confidence in them or is that too simplistic of view? guest: there are two types of readings that are important. outside in is going the european union and what is happening within the party and within greece. , that represents an
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increase in trust, represents an acceptance, a complete different role taking within the european union and in the markets. there is no longer a marginalized radical left party. mainstreamof the market economy and part of the players that define the markets and the markets and the yields are there, they are not willing to buy the issued sovereign debt. it is fantastic brown points and they are using it and they will continue using it. and to their benefit. on the other hand, it is something that looks very beautiful for the european union. if in seven years where greece has been the cornerstone of this economic crisis, the europe crisis, everyone has marginalized greece for that specific reason, we have been
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perceived as a bad student and now we outperform our fiscal adjustments, we seem to have much more money than we -- we even got the european union money these last couple of weeks. it looks like it is also brownie points for the policies that were followed by the european union. if it's everybody's point of view and just -- i am worried and my challenge is how this is going to make sure that we will reduce the cost of borrowing in the long-term for the economy and increase productivity. it is white, it is a good signal and we should stick with it. manus: thank you very much. brownie points all around. thanks for joining us. the european head of global market three shirts -- of research here.
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elena, we have to the tenure -- 10 year spread. this is quite an important moment. is it folly or good they are back in the bond market? guest: in terms of the financing costs, in terms of yields, yes. that is certainly good news. but whether it is stirring up trouble further down the line but it is a big issue in terms of if when you look at the projections of what is assumed in terms of the debt profile, what you do not assume is any kind of disruption economically, if there is another crisis, another recession, another problem in europe, and that is when trouble comes back very quickly. it is, you are assuming everything goes wonderfully well fundsr the moment, the are good -- signs are good economically. there is a reason why there is appetite for [inaudible]
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listening with interest and the ecb -- talking about growth risks to the upside but still saying that wage growth remains, that is the key question for the eurozone. news, there is great unemployed rate is coming down 9.2% at the moment. it is surpassing the ecb's expectations every time they update their forecasts. i would still say in terms of underemployment, there is still a long way to go and the ecb themselves have been highlighting the fact that that nine point percent is the official rate. manus: we have 9.2. the ecb question. that questioned. fact: they highlight the that this is a broader measure. are employedwho
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and ready to start working, it is a restrictive measure of an -- unemployment. then get an unemployed rate that is 18%, over 18%. the message from the ecb is things are going well but in terms of price stability we need to see wages pickup domestically and we seem to be a long way away from that. the euro overly bullishly priced? guest: there is a lot of bad news in the u.s. and a lot of good news on europe and it has become a little excessive. when we look at our short-term models, our valuation models, everything tells us the euro has overshadowed these levels. anna: thank you for your thoughts. past hour.for the manus: that wraps up the bad
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news baked into the u.s. side thate we will have stocks we are watching. anna: all those at the start of the trading day or so -- in an hour or so.
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♪ guy: after a three-year hiatus, a return to the bond market today. francine: fed in vocus, the central bank against its two-day meeting. the senate repairs to take up the health-care care bill as john mccain flies back to washington. guy: alphabet soup. the tech giant shares fall after earnings show rising costs on its new ad business. profit was also hammered by record eu antitrust fines.
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it is daybreak europe, and our flagship morning showing the city of london. francine: welcome. it has just gone 7:00 in london. 8:00 in paris or berlin. the asian session a bit mixed, setting us up for europe. the asian equities session, finishing a touchdown. if you look at the futures, some movement to the upside paired given the lackluster session in the u.s. and asia, that might be surprising. we will see how they develop. guy: we will get the ifo index from germany. let's look at the risk radar. still seeing a broad base brazilian recovery, but asian sessions giving back a little bit. we are at a 10 year high. you have had a rally for 10 straight days, the fed meeting today.
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a little risk off again this morning. waiting for the fed. equities, are flat. euro-dollar looks to be pushed a little higher. about thetalking resilient recovery, some risks to growth to the upside. stressing costs and wage pressures still subdued. dollar flatter than it was yesterday. a little movement to the downside in the last hour. add movement higher to the euro. oil priced in their. saturday's promising deeper cuts saudi's promising deeper cuts. shall we talk about shoes? -- that is acores bike. 890 6 billion pounds. that is a lot of shoes.
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unanimously recommend the deal. that is not a laugh, by the way. a serious deal. an offer to buy for 230 pence. we just do it with a smile on our face. francine: a check of the bond markets. hour, headline stories, pretty unchanged on futures and the futures, as well. futures suggest we will be higher at the start of trade. manus: the question on mliv, we will see how bones role through the morning. guests at mitsubishi said clearly to us he thinks the bad news is priced in to the u.s. market and perhaps the european market is a little overly priced to the upside. anna: we've got another red headline. gas company, chemical interests,
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production locations in africa, suggesting there four-year eps is various guidance between 1% lower year on year. keep an eye on that as they make that update to their outlook for the business. manus: one more red headline coming in quick. refresco based in the netherlands are set to acquire bottling activity for $1.25 billion. in for a deal to acquire the bottling activities of cotts. francine: -- anna: for a moment, the first word news. juliette: u.s. senator john
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mccain, who underwent surgery last week or brain cancer will return to washington today as the senate prepares to take up embattled health care legislation. the development could boost republican efforts to get enough votes to pass the measure. his presence could provide a lift to gop lawmakers the were urged by president trump yesterday to seize the moment of move on the repeal obamacare. meanwhile, jared kushner has said he had no improper contact with russian officials during the presidential campaign. the senior adviser made the comments after spending two and a half hours answering questions from senate investigators examining meddling by moscow in the 2016 election. withdid not collude russia, nor do i know of anyone else in the campaign did so. i had no improper contacts. i have not relied on russian , and ior my businesses
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have been fully transparent in providing all requested information. meanwhile, president trump and his advisers are reportedly discussing in private the possibility of replacing attorney general jeff sessions. according to "the washington post" some confidants on prospects who could take his place. should he resign or be flyer. several including white house officials have raised the question among recent days. greece will return to the bond market after a three-year hiatus. banking on investor interest in its recovery. the country, the epicenter of the software crisis in 2009, is looking to sell five-year bonds. it is also inviting 4.75% on's in 2019 to tender note to cash. bonds are expected to be priced today. turkey president has urged qatar and arab countries to negotiate an end to the divide as he wraps
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up a two day gulf tour. president erdogan supports legislation by co. eight to resolve the crisis through dialogue should continue. leaders of saudi arabia, kuwait and qatar. deutsche bank may shift about 300 billion euros from the balance sheet of its u.k. entity frankfurt -- different for. -- two frankfurt. it calls for trading in the german cities to go live in september 2018 and for the assets to be moved over by march 2019. that is as client trading and assets migrate to the continent following britain's decision to leave the eu. global news 24 hours a day, powered by more than 2600 journalists and analysts in more you can findtries more stories on the bloomberg at top . we are seeing the close of markets in japan and australia. the nikkei is down by 20 points. the low that 20 -- 20,000 point level.
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the yen rebounds for the sixth straight day of gains against the u.s. dollar. australia doing well, closing higher by .8%. the nikkei has gone weaker, but did touch the 10,000 point level for the first time today in india and you are seeing downside from the csi 300 stocks and hang seng in late trade. we seen property developers come under pressure in the chinese session today. in terms of other stocks, toshiba under pressure in tokyo, closing down by almost 5%. saudi news saying the auditor made a accounting area. one of the biggest drags in the region, sunac. a lot saying this companies to highly leveraged. trading,3.5% in late even though it came through with a good second quarter number.
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market that the indian has been on quite a big run. a $2 trillion market that is rival to germany and canada in size. this white line is the 50 day mean of deliverable trade. it is trading at the lowest level since september. spokealyst we spoke to -- said the low delivery percentage amid hiding -- rising values, the syndication may wane. this indication may wane. -- they are going to start the titan. the french firm reported a rise in first-half income from offices. joining us now, the cfo. great to see you this morning. give us an update on the business. , thatell us every ceo europe is in fighting form,
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recoveries on the way. would you agree? >> we agree. strong performance across all of our regions. stability seems to return, which is what business is like. consumer confidence is up generally. pretty an official macro environment. because youion this have many shopping centers in france. spoke to a economist at citigroup saying at the time of every new president, the uptick in french consuming confidence, then it falls away a little as reality dawns. what are you seeing in france? jaap: so far, positive. we outperformed indices by 45 basis points. the shopping center strategy works. we are not a proxy for the macro, but overall, we see a supportive environment. other the numbers, i won't make
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a prediction on what happens in the politics. about migration into mainland europe. where is going to be the winner in sentiment in europe in a post-brexit world? there is still an awful lot that needs to be decided. you start to see movements and banks, getting real offices outside the u.k.. we will see winners in terms of seem to be frankfurt and dublin, tracking a significant amount of head offices or relocating offices, but the financial industry is bigger than banks. companies,surance fund management companies, there is plenty of opportunity to come. anna: you are in a broad range of assets in france, but more in shopping centers and other parts of europe. with that in mind, does that make you want to broaden into
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the places you mentioned? already veriest established players, i'm not sure we can add value other than cheap cost to capital. we hit to land somewhere where you still require specialized knowledge as a foreigner with a lot of money. anna: does this spin out into more retail opportunity it in those places? jaap: i don't think there is a fundamental shift. if you move a couple of hundred people over, a couple of thousand, that doesn't create more for shopping centers. manus: in six months, you come in, every time we asked you about u.k. tell me your perspective of the political landscape and whether that makes you less enthusiastic about looking for deals here. jaap: i fundamentally believe the u.k. -- what you see with the political uncertainty elections have proven the lack
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of political stability. i'm not sure the cabinet has figured out what they want to accomplish or whether they read what the eu wants to accomplish out of this. for us, making investments at this point, i'm not sure what discount rate to use in order to get the proper return for the risk. anna: too many uncertainties to make the numbers work. in terms of the relationship between brick-and-mortar retail and the internet retail story, i noticed on the comments, advertising income suggested as a small but fast-growing part of your business mix. is this an attempt to embrace digital retail when you must be nervous about its impact? we are revenues out of digital advertising, incorporating internet into our business. we are not running away from it. but the hype coming out of the it. about retail armageddon, is wholly overblown.
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if you look at the high shopping centers, they continue to do well and we have a chart in our presentation that shows despite rapid growth in the internet in france, the large shopping centers have gained market share. internet sales, sales growth in centers, not mutually exclusive. manus: to embrace delivery, underpriced within retail? jaap: i think so, and to thrive in a rapidly changing environment, you need to invest. see too many retailers that have longer sheets with no the flexibility to adapt to a changing environment. we invested in the last past year, 6.2 billion worth of capital in our shopping centers, extending existing ones, building new ones. manus: which takes us back to the dividend question. if you go down that road with, where are we at the dividend duration for shareholders? jaap: we are paying out 90%, and
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we finance our development through the non-core assets, dry assets and incremental debt. anna: thank you so much for your time. always good to see you. we will ask you about your appetite for the u.k. in six months time. .aap tonckens, cfo of rodamco manus: up next, we will talk about akzonobel. we will focus on the dutch maker and its plan. this is bloomberg. ♪
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♪ welcome back. bloomberg daybreak: europe. euro stocks 50 futures, suggesting higher at the start of trading. maybe in contrast to asia, but a mixed picture.
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german bunds pretty unchanged this hour and the market in to buy, a snapshot of that market. in terms of the middle east dfmy, a bit weaker on the general. alphabet shares fell after second-quarter results highlighted the company costs are rising as it spends more to expand googles newer fastest growing advertising businesses. 29 company reported sales of $.2 billion, in line with analysts and senses forecast but below more bullish expectations. profit was hammered by a record .ntitrust fine from the eu carlyle group seeking $15 million or its u.s. fun for the largest pool folk just on buyouts in the region. firm's seventh for the u.s., is part of ambitions to raise $100 billion by 2019.
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a spokesman declined to comment. a probe by the u.k.'s serious fraud office by dealings in guinea. an investigation was started in the payments relating into $20 million project in the african nation. the company said it will cooperate and any other relevant authorities. that is your bloomberg business flash. juliette, thank you. akzonobel has reported second-quarter profit that missed analyst estimates and the ceo seeks to convince shareholders the target set by his predecessor achievable. our managing editor of global business, take us through the numbers. that is setting up the state of play right now. >> good morning from berlin. reporting a very busy
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earnings week across the board. the numbers, a bit short of what was expected, but the real focus is on the management -- the message they want to deliver. we have a new ceo, surprising the ceo. last week, the announcement the former would step down for health reasons. we don't know what is behind that, the company didn't specify. they now have a new ceo. company,m within the has been there a long time. people will be looking out for what kind of maxygen he wants to the -- message he wants to deliver. the company is about to be split into two. specialty chemicals and paint. the numbers are secondary and the message the company wants to deliver going forward is what people will look out for. important andis the relationship between shareholders and the business also important. akzo announcing they are holding this in early september. interesting they are saying the
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sea -- shareholders will not be able to -- the agenda. and the activist on this particular story want to be up to put items on the agenda. the relationship clearly tense at this time. yes, absolutely. a very fractious relationship for months now. u.s. tried to buy akzo, akzo was very opposing to this and said we don't want to talk, we have no interest. he was pushing hard and saying you should talk to them at least and make sure you are for filling your duties. the relationship soured over this. the ceo or the brunt of that, but also antony bergman, the chairman was the main rival in this and he said he will resign april.ek -- next year in
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not surprising, he is on his third term. still, it sets the tone, a clear slate for new management to come in and the egm in september may give both sides some foreign to bridge their differences. manus: another change at telecom italia, the ceo to set down -- step down. a very handsome goodbye. 25 million euros. benedikt: yes, tough goodbye for him. here that parachute he is receiving. 25 million. one of the largest payouts in corporate italy ever. we have been reporting about this for a couple of weeks. this comes after rising tension with the majority controlling shareholder, vivendi. they on about 25% of the control board. tension and been rising between the controller of vivendi and
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telecom italia over strategy of the direction of the company. the italian marker it -- market is in flux. he was looking for someone to move more from the cost cutting into the growth mode. that is what he hopes to get with a new leader now. anna: benedict, thank you for the update. various corporate stores this morning. managing global -- managing editor of global business joining us. manus: let's talk about deutsche bank. they have shifted 300 billion euros from the balance sheet are -- and are in the process of change. john cryan is the ceo there. ed, the title of your story is john cryan looks happy, maybe too happy? anna: why so? benedikt: it was a rough year last year for deutsche bank. they faced a number of legal woes, there were losses
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recorded, a crisis of confidence. they came into this year needing some kind of stability, some kind of move. they found that in a recapitalization. 8 billion euros were raised. that won confidence in the market, got him back to square zero and he announced a new restructuring plan in which they reversed some of the ideas in prior plans. they are now bringing postbank, the german retail bank back into deutsche's and merge it with their existing player. they're bringing back the global markets unit with the corporate bank to form one investment bank sell morery and cross products, win more revenue. it is kind of a restart for john cryan. he and his board sat down with us and shared with their strategic plan will be over the next couple of years. how they can finally turn the corner and change the story for a bank that has been beleaguered over the last couple of years. anna: in the headline over the last 24 hours, we were running whether they would be bringing
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assets back to germany around the brexit story, away from the u.k.. this is an ongoing one, but away from that, what are the challenges this bank still need to overcome? on the challenge business side is they are trying to stimulate organic growth and cut cost with the existing mix of businesses. for all of the changes coming about, it is really a reshuffle of existing businesses. there is no breakout vision or that new strategic push they are looking for to add revenue. that is one question revenues will -- investors will have. with this mix, how can you stimulate organic growth? on the legal side, deutsche bank has lurched from one crisis to another. they have finally drawn under that with a number of settlements in cases. is, can they put in place compliant systems,
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anti-financial crimes systems that will prevent more scandals in the future. manus: they do so much, ed robinson joining us this morning. anna: that is a -- it for daybreak. bloomberg markets is next. ♪ these days families want to be connected 24/7.
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♪ guy: welcome to bloomberg markets. the european open. manus: we bring you the first trade of the day. i am manus cranny with matt miller and here is what we're watching. the hiatus is over. greece returns to the bond market after a three-year pause. will investors be interested? the germane camps, lender said to be moving 1/5 of its balance sheet from london to frankfurt. what is john cryan's plan?


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