that is why europe promotes and defends the rule of law everywhere in europe. [applause] being european means the right to have your personal data protected by strong european laws. because europeans do not like drones overhead recording their every move or companies stockpiling their every mouse click, this is why parliament -- [inaudible] agreed in may this year on common european data protection. in europe privacy matters. [applause] being european also means a fair playing field. this means that workers should get the same pay for the same work in the same place. [applause] and this is why the commission stands behind our proposal of the posting workers directive. the internal market is not the place where workers can be exploited or subjected to lower social standards than others. europe is not the wild west, but a social market economy without social -- [inaudible] [applause] a fair playing field also means that in europeerers are protected disturb europe, consumers are protected against buttes by powerful companies -- abuses by powerful companies and tha

michelle: hello and welcome to "focus on europe." it's described as the greatest crisis the european union has ever known. it's changing the eu's relationship with its neighbours and creating deep divisions from within. the refugee crisis. today we're bringing you a very special programme taking a look at europe one year after german chancellor angela merkel opened the way for refugees and migrants to reach a safe haven in europe. ♪ the summer of 2015. hundreds of thousands of refugees fled to europe. many countries closed their borders. it was a trial by fire for a united europe. but the german chancellor called for solidarity. >> we've done so much, we can do this. michelle: we have more on that coming up in the programme. but first to the mediterranean. because of its long mediterranean coastline, italy has overtaken greece as europe's migration frontline. since the implementation of the eu-turkey refugee deal, the harrowing images of migrants attempting to reach greece have been replaced by those of people hoping to get to ital

in europe, consumption is weak. in china, the critical market, the anticorruption campaign is hitting top level consumption. i like midmarket consumption in china. luxury good consumption in china -- guy: jean-claude juncker is coming up next. the market open is next. this is bloomberg. guy: welcome. i'm guy johnson of bloomberg's european headquarters in the city of london. caroline hyde is on assignment in cologne. we are moments away from the start of european trading and this is your morning brief. as volatility makes eventual return. is the central bank push getting called in? beyond brexit. european commission president assesses the state of a fragmented union. we will hear from jean-claude junker. and why don't monsanto investors believe the german giant? we are moments away from the start of european trading. we're expecting a more benign start. yesterday, a lot of volatility. atdid selloff a little bit the back end of the session. the auction prices in the last 15 minutes are getting in the way, but we saw

less europe ore a looser europe is the answer? do you see that view getting any traction? some countries have been making that case. that's not what you hear from german chancellor angela merkel and others. >> of course ultimately what can they do if the smaller countries the marchagree to towards the european integration? you can integrate in the eurozone, but there you have -- i don't want to call them -- what are you going to do if say poland are hungry -- hungry -- , say they don't want to participate. there is no way to force them. you can say to some countries that we will integrate in whatever way we want and the rest of you don't have to, but then you run the risk of some other countries saying well in that case we might want to follow the u.k. the u.k.the meantime, is trying to work out the path that will follow. i spoke with the jeremy corbyn .esterday he was talking about seeking integration from norway. this is a conversation we have been having four months, about whether there is another model available. u.k. and thef the different desires of the u.k., yes, we

michelle: hello and welcome to "focus on europe." it's described as the greatest crisis the european union has ever known. it's changing the eu's relationship with its neighbours and creating deep divisions from within. the refugee crisis. today we're bringing you a very special programme taking a look at europe one year after german chancellor angela merkel opened the way for refugees and migrants to reach a safe haven in europe. ♪ the summer of 2015. hundreds of thousands of refugees fled to europe. many countries closed their borders. it was a trial by fire for a united europe. but the german chancellor called for solidarity. >> we've done so much, we can do this. michelle: we have more on that coming up in the programme. but first to the mediterranean. because of its long mediterranean coastline, italy has overtaken greece as europe's migration frontline. since the implementation of the eu-turkey refugee deal, the harrowing images of migrants attempting to reach greece have been replaced by those of people hoping to get to ital

, to divide europe and the alliance and to divide europe from the united states. all of these things are designed to strengthen russia's position in europe. i do not think he wants a major confrontation with the united states that will poke -- that will provoke a big intervention by america. it is a gradual deterioration. he does not want a big confrontation, but little by little, he is strengthening his -- tom: ambassador hormats is with us, steven englander as well. we will continue this discussion on bloomberg radio as well. jim stavridis will join us later this morning. from new york and london, this is bloomberg. ♪ tom: foreign-exchange on "bloomberg surveillance." -- dollar-index, 95.60. francine: coming up on "bloomberg ," david, what is going on? david: we are starting the nfl season this week, tom keene, and that means of course fantasy football. ceo of draft kings. a guest from pimco. what we are going to hear from the fed president. five of them talking this week. that is coming up on "bloomberg ." tom: we continue our discussion on the econom

phillip: i suspect europe will change. i think the crisis in europe are real. i think it is people being sanguine about it. i think they can change what europe means. there is a shot for britain staying in. francine: free movement. i want to talk to you about fed. vasileios: pretty much negative. the second loan lower in sterling did we have to look at the numbers. we have to look at what has been coming into the u.k. over the past years. in terms of portfolio investments, the pain of influence has been double. uncertainty is going to have a negative effect. francine: thank you so much for now and are getting some u.k. gdp data. manufacturing production in a few minutes. this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business.

we are negative across the major markets here in europe. germany is underperforming and let's find out why with nejra. nejra: i am going to start with one of the biggest gainers on the stoxx 600. the company basically saying it is investing to grow in china. is he is a total investment of about 15 million euros. mobilization to be completed at the end of 2017. these shares have hit their highest since 1998. they have also risen the most in almost a year. but you were talking about the german market and we have got to talk about deutsche bank. the shares have dropped 8.2%. the company received a $14 billion claim from the u.s. justice department to settle an investigation into its sale of residential mortgage-backed security. willerman lenders says it not stay this and in a statement, they said negotiations are just beginning. that number of $14 billion is more than three times the worst-case scenario that analysts were expecting. so, and as that the shares have gone down so much. though, i will say that is not quite as much as the $17 billi

able look to europe -- people look to europe. the austerity policies that germany has for europe, he says that benefits only germany. how do you see the fiscal story developing in europe? a lot of those central bank calls out of the flows of refugees. larry: the fiscal policy has engineered a turning point. it did some years ago from extreme austerity from 2012 to 2014 to some tailwinds now. exit spending around the immigration issue europe is benefiting from that. -- immigration issue. europe is benefiting from that. you can growth is intact and running slightly above trend. perspective, europe is not looking for a lot of fiscal stimulus, but what could upset the apple cart at this fragile stage is uncertainty about a host of political issues of which fiscal policy is one. that is the key point. anna: larry, thank you for spending time with us. larry hatheway, group chief economist spending the last 45 minutes with us. coming up, no longer the worst performing market in the world. we speak to the ceo of the fm stock exchange abo

40,000 jobs in europe. and therefore i am very much behind the trade agreement with canada but the most progressive. the kind of piece that we need can be specified in the procedures and we can rule out the conservatives of which xists. in the future also in india and japan. it is a global and legally binding agreement and it wouldn't have come into being in the absence of the european union. we drove this forward. and sometimes we also edged others to act we recall the steps to be taken we are calling on them to rectify his. basically dragging her feet under man's our international apability. asically it goes amongst ourselves and interaction to depend on this. were not the united states of europe. which i making today and cannot be compelled in any way. the history of europe made it this way. it made us what we are. that is no reason to make things even more complicated and difficult than they are already. he requires courage but we need to speak in committed terms about europe international arliament as

how overbanked is europe? >> if you pull up the page that shows the number of employees, you will see that since the crisis, there has been next to .o adjustment since th particularly in europe, there are way too many banks from what we need. it is not just investment banks. it is retail banks as well. think, employs over 1.5 million people in europe. guy: what should that number be? 2/3 they should perhaps be2/ of that, but that requires serious consolidation. what consolidation really means is we need a pretty savage capacity cut. now, the investment banking side of it gets all of the headlines. it is on billing, that process is ongoing. we know that from 2008 and 2009 to now. this sector is a lot smaller. but i think also within retail, you can go to our most any street in germany or france or spain, and you can kind of see five banks on the same high street. it is crazy. it makes no sense. but there are so many vested interests involved. consolidation would also require opening up books. guy: and that is a

40,000 jobs in europe. and therefore i am very much behind the trade agreement with canada but the most progressive. the kind of piece that we need can be specified >> >> but truly at the same time but in the future of indiana and japan. raising questions of climate change it is the paris climate change agreement and it would not have come to beat in the absence of the european union. moving forward and sometimes we also urge others of the steps to be taken because very few union members states have done not to ratify the paris agreement. [applause] >> basically dragging our feet to on ratification undermines our credibility and makes us look ridiculous. and basically the links against ourselves they depend on this is not the united states of europe. be comn it cannot be compared to the "state of the union". we are much more diverse it is hard to understand for this way.le but the history for people made us what we are. that is no reason to make things even more complicated >> but we need to speak and the t

40,000 jobs in europe. and therefore i am very much behind the trade agreement with canada but the most progressive. the kind of piece that we need can be specified in the procedures and we can rule out the conservatives of which exists. in the future also in india and japan. it is a global and legally binding agreement and it wouldn't have come into being in the absence of the european union. we drove this forward. and sometimes we also edged others to act we recall the steps to be taken we are calling on them to rectify this. basically dragging her feet under man's our international capability. basically it goes amongst ourselves and interaction to depend on this. were not the united states of europe. which i making today and cannot be compelled in any way. the history of europe made it this way. it made us what we are. that is no reason to make things even more complicated and difficult than they are already. he requires courage but we need to speak in committed terms about europe international parliamen

more europe post-brexit or less? john: i am surprised that juncker has survived. he is still there. i don't think he is the political head that collects commitment to europe. i think we see a transition away from that. it is not about the eu emission, it is what the government showing a commitment to europe. there is a lot of political risk on the path especially popular risk. this antiestablishment tennessee tendency.ee -- manus: as the debate and policy, of central bank the ceo ways in. this is bloomberg. ♪ anna: welcome back. 7:19 in london. let's get the bloomberg business flash with david ingles. david: less about bayer who is proposing an increased offer to clinch the acquisition of monsanto, the world's biggest maker of seeds and pesticides. bayer is willing to raise the bid to 129 dollars per share -- $129 per share. 22% of monsanto's closing price in europe yesterday. buffett has $12.14 billion -- that comes as berkshire hathaway fell 2%. wells fargo losing its position as the world's most valuable bank to

we are in europe. europe is always talking about human rights. they must protect us. reporter: the refugees have made their own shanty, and islanders believe the eu is deliberately slowing the asylum process to deter more arrivals. >> the eu wants to minimize the flows, so leaves this procedure to take months for the refugees. reporter: the eu's policies have to an extent secured europe's borders for now. but they have left greeceand and the refugees already here in limbo, unclear when or two where they will ever move on. katty: the war in syria felt on the shores of greece. their appearances were back to back but that did not stop the u.s. presidential candidates from going head-to-head in new york last night. on national security they laid out their different visions while taking shots at each other. the debate continued today with hillary clinton blasting donald trump over the way he spoke about vladimir putin. mr. trump judged his opponent's performance as horrible. nick bryant has more. nick: the music came with a thumping marshall beat, an aircraft carrier withi

than they are in europe. i think there may be some truth at the same time in what carson block is saying in that in some cases, there is a short route approach. but i think of what i know of european equity portfolio management at blackrock and elsewhere, that lazy would be the last word that i would be applying to that. guy: and that is what he was saying, wasn't it? ewen: and this would sound like an advertisement but the way that credit is beginning to grow, it is forcing people to think about capital structures. the switch from bank lending channel to the market is increasing the variety. i would absolutely contest the idea that somehow or other european investors are lazy. i think that is open to debate. guy: i am sure you would say that. next, let's talk about the pension industry. unintended victims. companies with widening pension deficits. we will bring you that story coming up next. this is bloomberg. ♪ welcome back to on the move. ecb efforts to stimulate europe's economy are claiming unintended

you like europe to have a stable, low-key, calm germany. whats not perfect, but would we get if she wasn't there anymore? the sense i have i is trust and gratefulness for a leader like that in these very bumpy times. all these elements will play a role that fear as well, and actually play for her. peter: let's move on a little bit. i would like to go back to the address the much talked about that angela merkel gave in berlin,, during which she referred to what has been her mantra throughout the refugee crisis. it,words -- we can do referring to the refugee crisis, and the challenges it poses. let's listen to what she had to say. merkel: some say it is provocative. that was not my intent. i wanted to motivate people and be decisive and complementary. 7 merkel admits she has made mistakes. the past fewover years, we have not done things we could have. we have to do o a better job of integration. >> she expressed real emotion. >> if i could, i would turn the clock back many years, said that i could do a better job of working with the authoriti

deployed to europe. a strong europe is in america's interest. that's not what donald trump wants. so maybe it's no surprise why russia seems to be backing trump in this election, but the better question is why trump seems to support russian interests at the expense of american ones. here's what we know. just the evidence. one of donald trump's sons said, quote, russians make up a pretty disproportionate part of the trump organization's assets and, quote, we see a lot of money pouring in from russia, closed quote. recent investigations revealed that trump's been pursuing deals with russian officials, developers with deep ties to russia since the late 1980's. a putin associate paid him millions to bring the miss universe pageant to moscow. as long as donald trump keeps hiding his tax returns, we have no idea how he might to stand a profit from these interests or what they might be holding over him. but something strange is clearly going on. trump's longtime advisor and campaign chairman, paul manafort, res

europe it is of utmost importance not to work down the four freedoms. questionates to your about the free movement of people and workers as well as the ease of free movement in relation to financial services. this principle was clearly stated by the leaders of the european union and the european council in june. that is how we see it and at the ,ame time i can say that i have my mother was an english teacher and i have two cousins with a british passport, and i'm a longtime supporter so i would like to have a very close relationship with great britain. but at the same time i would say that it is britain who will take interests within the confidence of the well-known british diplomacy. it is for me to take care of the finish and european interests related to brexit. way, i was in favor of remaining. francine: thank you so much. we need to do a whole program on simple transfers and we will invite the finance minister economic conditions. and stephenam posen king. both stay with us and we will talk about trade and g-20. stocks are near an eight year high.

longer-term, how they think about dealing with europe, doesn't impact of other companies impact europe? caroline: the ceo of germany's largest lender, john kline, shooting down a merger with verizon. saying he would like to see his bank actually shrink. john: part of the world we are doing is to make our banks smaller in order to make it a bit simpler. we want to set higher standards for control, but we want to make more successful. caroline: this news, this report, isn't really news? elisa: it certainly was, and it comes on the backlog. we have seen european banking coming under a lot of pressure. banks, italian banks finding a solution, but there has been a great deal of focus on the power of the banks, managed, restructuring, very difficult market positions, negative rates, squeezing further. it is on the back of that, it is all focused on -- and might have been on the table at some stage as a means to grapple with these long-term difficulties that the bank has. caroline: there still seems to because for consolidation in the german banking market. commerzbank is saying exactly that.

we also talked about the banks, and the crisis in europe's banks and germany's banks. i wonder if this is one of the bigger points of contention and concern about the whole european problem. let's listen in to what hans jorg schelling had to say. >> i don't think we have a bank crisis. we have a profitability crisis of the banks, to be resistant against shocks you have to make more profit. that's a common opinion from the imf, from the world bank, from the ocp and everybody. it is the same discussion we had when asked if we had a you'euro crisis. we have problems, one of them is greece, but it's going up. one of them probably is italy, they take the nonperforming loans out. of course austria has had problems with the banks. we are just winding down one of them. that's -- we have to make clear that the financial markets are acting, and the financial markets are able to get access to the market. >> we're overbanked and we have to let banks ma s make money. is that a question or issue for regulators? we have run loads of stress tests on the banks, a lot seem to pass on a

and the rest of europe. francine: i would say a lot. they are very distracted. every commissioner i spoke to said populism is a danger. if you think existentially about what admissions do they are almost an advisory board. they don't have the power to actually intervene directly. populism is the same concern that feeds donald trump's populism. they are concerned it makes want to goliticians even more right or more left. busy day. thank you for joining us this morning. we are going to go back to equity markets now. volatility returning to the market. we are seeing three straight moves of 230 points since last friday. anneliese jackson joins us now. the fact that it's september. it is historically both of the most volatile month and we have seen the biggest down moves in this month going back to 1920 seven. a lot of people are also attributing it to the fed. yesterday we had oil prices down. david: are people in the market actually asked acting continued volatility through the fed? people i talked to now that

>> guest: george is always insightful and europe. what i would say is there are few people who have been more insightful and prescient on europe than george has been. george saw the coming european union economic crisis years in advance. he is always worth listening to and he is right. it was imparted intelligence failure because putin's intelligence services had said don't worry about ukraine, we can handle it. it turned out that they couldn't and the anna kovacic regime failed but i think he downplays the power of russia in a country like romania says you can do a lot, you can do a lot through buying media through third parties, through subversion, through intelligence operations, through building a network of natural gas pipelines high in central and eastern europe to russian natural gas. romania is a bit stronger in that regard because romania is unique in that it has oil and natural gas of its own to a degree that other countries between estonia and bulgaria do not. c-span: when you were here for our three are in-depth program b

i came back from a terror p conference in europe. there is a number of people, as many as ten thousands, who have become radicalized. some of them are trying to get back from syria and iraq and the numbers are too high for european security services to deal with. especially because they're not coordinating in the way they need to given the scale of the threat. >> clarissa, clearly in europe they don't have the vetting process that the united states has trying to prevent terrorist infiltrating into the country. >> well, this is the real question. i mean, we couldn't believe it when we read that the greeks, the greek authorities had stopped the two men because they had fake passports and help the seemingly inexplicably allowed them to move on after just 30 days in detention. we have tried many times to get in touch with greek authorities, to get some sense of what exactly happened and why but this illustrates just how difficult it is, wolf. >> clarissa ward doing excellent reporting not just by herself, she's got a team that worked wit

has done it differently than europe. francine: this is the anniversary of the lehman brothers collapse. how amazing is it that we haven't -- it seems that we may have overregulated at this point and the european banks are so far behind the u.s. ones. francine: there was -- john: there was always a risk of that. the instinct is to overreact. perhaps we are getting to that point now. understandably, the regulators are determined to make sure nothing like that happens again. on the sideerring of safety, that is understandable. we just need to get to the point where we are done and we can start moving forward. it seems we are not there yet. francine: john wraith, thank you so much, and michael moore. we will continue the conversation on europe's banks. christopher wheeler. we have plenty coming up. we will talk about brexit. deutsche bank is one of the main stocks we are watching. it says it won't pay a $14 billion claim from the u.s. government. plus, with policy decisions from the fed and the boj next wednesday, we look ah

versus europe. the ryder cup tees off this morning. "worldwide exchange" begins right now. ♪ >>> good morning. welcome to "worldwide exchange". happy friday. i'm sara eisen. >> i'm wilfred frost. good to be back. feels like a whole week. >> i had a few days off. >> you had wells fargo. >> we're back together on a friday. so much market action to be discussing. no one better i would like alongside that. fears about the future of deutsche bank shares. dropping to a record low this morning. as you can see around about 4%. we're off the lows that opened initially down. we're off those lows but still down 4.3% in german trade. we'll have a live report from the firm's frankfurt headquarters in just a minute with lots of analysis coming straight up. first let's check in on global markets. >> we saw an impact on u.s. stocks yesterday. in the session u.s. futures looking up this morning. dow futures are up 14.5 points. s&p futures up almost one. nasdaq up about .4 after a brutal sell off yesterday that took the dow down 200 points and s&p 500

went tot everything, the sea, and arrived in europe. solution,to find a may be put them in small cans, work on integration of refugees, and create a solution. it is not acceptable in europe to see people on the streets are nothe border, suffering with water or electricity and that conditions. it is not acceptable in europe, to is that values. laura: thank you. now to the united states and the race for the white house . hillary clinton will be back on the campaign trail on friday, as she takes several days out to recover from pneumonia. to reveal herrced diagnosis, after she was filmed stumping at the 9/11 memorial service in new york on sunday. in response to that, her republican rival agreed to release his full medical record. clinton's campaign team has admitted errors in the way they handled the news of her illness. she is expected to appear at a black women's event in washington on friday. now, an unusual marketing campaign on the london 'nderground has got commuters attention. glimpse, a creative collective, has raised thousands of

europe." hopes of not repeating the the 1919 paris peace conference and how their plans played out. the kansas city public library hosted this event. [applause] >> thank you for coming out tonight. i don't know if it was the air-conditioning or the free wine or what. i want to thank lisa and judy for their hospitality. and i want to thank the library folks. thing to benderful able to do at the end of this. this is my fixed time coming to kansas city. i have yet to have been here when the weather was tolerable. every single time i've come here, i have left with barbecue in my stomach and wonderful people to have met. thank you for your hospitality. [applause] and i'm a baseball fan so to be in the world series city is fine. book not want to write a -- those books that been done before. and frankly, i didn't find them that interesting? -- a cold was about to come after it. because they they didn't know a cold war was coming. it was to stop the 30 year conflict that europe has just withdrawn fro

taking revenge on europe. only days ago the eu order tech giant apple to pay 13 billion euros in back taxes in ireland. ceos have written to the leaders of the 28 eu states, try to get them to stop the european commission's efforts. they call it a grievous self-inflicted wound that would be bad for business. it has been a big day for apple. a former recall notice has been issued for one million samsung galaxy note seven phones. meanwhile apple hopes to visit .ts recall listing a look at what some eager buyers had to say. i would probably say maybe $4000, four to 5000 i would say yes. i would have to think about it. it's not every time you get to be front of the line. >> i was one of the first ones to hold it. so i, most every year on the day it is released to buy it. anchor: let's check in on the markets. after surging 11% apple shares are down on the back of news that it ran out of iphones. shares down .6%. strong demand but and in sufficient -- an insufficient supply. stocks had their worst week since june.

live at the -- what brexit means for europe? we speak to the former ecb president. ♪ francine: welcome to the pulse life from bloomberg's european headquarters. i'm francine lacqua it we have a great show lined up for you it will bring you really released material from our interview with vladimir putin. he weighs in on u.s. politics, blocking both u.s. confidence. -- u.s. candidates. he also talks brexit. stay tuned for that exclusive interview done by our editor-in-chief, john micklethwait and we when you our weekly -- composition around the uk's vote to leave the eu today. we speak to the former president citibank, --an european central banks, jean-claude she should -- jean-claude trichet a. euro-dollar, 111, 92. it is all about the u.s. jobs data. that is key to shaping expectations for the timing of the next u.s. interest rate hike. oil rising also to do with our predict interview. putin will seek a deal with -- russia will seek a deal. let's get to the bloomberg first word news and the russian president, vladimir putin ha

francine: we should bench mark it against europe. because europe is going through a crisis. he couldn't have been more clear. that of course is because of the household feeling poorer. is this because of the threat from asia? we're seeing viewer's discontent when it comes to elections. let's get street blackrock's global chief investment strategist. joining us from london, richard, thank you for being on the program. we're saying we don't have enough volatility in the market. it's too flat. that's not what we saw over the last 24 hours last friday and earlier this morning. what's going on? it's more angst. -- it's more anxious. >> yes. fiscal paul: potentially playing more of a role in growth. and some short-term value so we are seeing yields start to move up and volatility return to the markets after a period of exceptionally low volatility. francine: is this going to stay? or is there a turning point? do we just need a small set of hikes for the volatility to go away, richard? richard: well, first, we need to bear in mind as an investor that we are in a low turn of the mar

xx europe 600 -- that is the equity board. highest we have not seen since january and the four days of gains were the most were about -- look at the currency board. sterling, highest level against the dollar since june 29. sterling also is rising against the pound. the euro is falling against the pound, the pound is rising against the euro. the pound is down against the yen. it big day for the ecb. we are expecting an extension of the stimulus program. will we have some source of fiddling with the qa program as well? rights are in companies like and lyft wantber to change the way we get around. will they also change the auto industry? ♪ vonnie: live from bloomberg rolled headquarters in york and london, i'm vonnie quinn. -- world headquarters in new york and london, i'm vonnie quinn. mark: and i'm mark barton. >> flights resumed at london city airport after demonstrators blocked a runway to protest expansion plans. travel was disrupted from just before dawn until early afternoon. it ended after police arrested nine people. b

equities in europe rallied to start. the diminishing probability of a deal in algeria laying on the price of oil. and the continuing problems in germany's banking industry weighing on deutsche bank and the entire european gauge as well. that's the situation. five minutes away from the close. to forget this comes in the wake of yesterday's drop which was the biggest since july 6. we are looking at the third continuing decline. that's the situation. vonnie: happening right now, joe biden is campaigning for hillary clinton at drexel university in pennsylvania. thecampaign stop follows first u.s. presidential debate of 2016. you can see live pictures of the vice president. earlier clinton told reporters on the plane to her rally that she felt positive about her debate performance. the european close is minutes away. this is bloomberg. >> to assure them that donald trump doesn't represent america when he says that he would not --honor article ♪ mark: live from london and new york, you are watching the european close. stocks

and western europe where relatively the growth has been coming. the violence between the brits has shifted, although in the long-term we are still raging bulls. guy: the animal spirit. you will stay with us. the wpp sepia. we won't get a take on the u.s. election. a big day in the united states. brexit obviously not to be ignored. martin sorrell is staying with us. this is bloomberg. ♪ caroline: welcome back. 42 minutes into your trading day -- let's get you caught up with the bloomberg business/. tom: thanks. first-half earnings reported that beat analyst estimates -- the owner of the brand set operating profit increased 8% in the six months through july. that is as the world's biggest clothing retailer prioritized online expansion over store opening. the ceo of europe's largest airline says it is examining a range of options for entering the low cost long-haul travel market. that theold bloomberg company can no longer ignore the emerging threat from a range of contenders. ourselves protected pricext year and the oil is increasing, which means

and europe. not in japan. in the next five years you will probably see a shift from emerging-market labor to automation. that means the locus of anti-globalization will lap up onto the shores of the countries i just mentioned. start addressing these issues. and if you don't, you get crisis or you get decentralization. and decentralization is ok in a place like the united states. europe, brexit might not be the worst possible thing. but to get from here to there you have to negotiate the most complex policy with a completely dysfunctional policy. francine: next to me come back, one hour on europe. bloomberg because we have coverage of the bloomberg markets most influential summit. ♪ tom: good morning. this is "bloomberg surveillance." we have a most eventful day here at bloomberg. we have our most influential series right now in london. let me do a data check right now. not as exciting as yesterday but we will take it. there is new wants here. robertsontom, julian fired up about negative rates. -0.7%, thatwo-

we are over the uris -- worst in europe. the euro is quite strong now. 2017 and the election results will be significant. francine: how would you describe your relationship with the european commission? minister noonan: it is business. we think the decision made by them was the wrong decision. we think it is based on fragile legal principles. we are appealing it. we have strong grounds for appeal. that, there is a process. they constituted themselves as quasijudicial. they made a decision. we are appealing it. then there is an appeal to the european court of justice. it will probably take four years, maybe more. tom: i just heard speaker ryan of the economic club of new your time and time again, debt u.s. corporate tax structure. tell me about your actual experience with financial engineering? indexes for financial engineering for apple and other internationals? minister noonan: tax avoidance to give it its name is governed by clever lawyers finding mismatches between tax laws in two jurisdictions. it is international. the s

does europe have a future right now? >> we all hope we walk out of here today and have a future end to the weekend and europe as well. how bright it is, how much they're in control of their own destiny is up for grabs aet this point. you're right. we're going to sit down today and war game some different scenarios, particularly around how europe stays together and grows and how this refugee crisis can be a hindrance or help to europe going forward. >> what do you think brexit does? >> well, one thing about the -- about the uk is they have a tremendous navy, and it could help europe to control this refugee crisis and stay on top of it. so it's a difficulty. right now it hasn't had such an impact, but certainly it will be felt as the articles are triggered. >> and that's the difference between the uk's power versus switzerland's power. i disagree with your notes. i don't think you can compare them. anyway, we'll have to leave that. mark, thank you very much. mark haferly, ceo of wealth management. >>> the bang of russian i

in europe, sales are very strong at the moment. southern europe, strong double-digit growth. but it is coming off a base which was depressed in 2008 team -- 2008-2009. in the united states it has peaked. they are on the record as saying that market will flat line. it is way past its precrisis peaks but it has peaked. in china we saw last year that the market slowed down dramatically. this year it is picking up again. we're seeing sales grow to around 8-9-10% at the moment in china. having that balance allows us to at be too dependent and have good view on the global scale. >> thank you. head of sales for bmw. right here in paris. back to you. anna: thank you. you can follow paris, live coverage and more as they are unveiled. next, we talk about ♪ >> the blame game. mario draghi says a year on from the cheating scandal that rocked the auto industry. good morning mrs. count in prime minister. manus cranny. >> they are planning to cut their workforce by 1000 employees. >> 500 layoffs in denmark. >> the reductions affect their research and development units. they're keeping the

he was on the loose in europe for more than six months. other isis operatives are right now believed to be living among ordinary citizens in europe plotting other strikes directed by senior isis handlers in syria according to multiple sources. within days of the rampage in paris police learned that two of the three bombers entered europe by posing as syrian refugees. these surveillance photos never seen before publicly show the bombers as they approach their target. this is the moment they detonate their devices. but according to the document two more men were part of the isis cell. they traveled the same refugee route as the suicide bombers, blending in with thousands of people from wore-torn countries. they were eventually arrested and records of their capture and interrogation obtained by cnn show how isis supported the attackers throughout their mission, this is their story based on multiple interrogations. early october, six weeks before the paris attacks, their documents show their journey back in raqqah. the men didn't know each oth

europe. the first thing harry truman said in his official capacity at potsdam was whatever we do here we cannot repeat the mistakes of paris. joseph stalin said whatever we do, we can't make the same mistake. and again, i want to stress here that these men did not look at the conference in paris as ancient history. they looked at it as events out of their own lives. winston church hill was there. james burns was there. it appearance that burns was the man to convince woodrow wilson to attend the conference in person. john maynard king made a reputation at the conference and he was back at potsdan. the first document i saw doing research for this project was in the birmingham air kives which is where anthony eaton's papers were. the very first document was in 1943 of what had gone wrong at the paris peace conference. they were doing that in 1943 in anticipation of holding a conference just like this. i was fascinated by that. and so what did they think the mistakes were? re's where the disagre

caroline: where is the demand coming from in europe? >> the consumer is looking at admissions, is looking at onlyation, and it is not looking at what's happening today but also at what may happen down the road because he is occupied with the resale value. caroline: with the scandal that has enveloped volkswagen and others, has that driven demand for electric vehicles? >> i don't think so. i think it has probably driven demand down for diesel because in the first six months of 2016 the percentage of diesel cars in europe is below 50%. from 50 63 years ago, now below 50%. that means the consumer is starting to go toward other technology because we suspect that emissions will be tougher and that the cars will become more expensive. technologyot of thanks to the alliance -- the fact that we are sharing a lot of technology. we can move from one to the other and obviously we think this is a good technology which has a role to play, particularly because consumers like it and also in missions. -- also emissions. we will have to consider the rea

we have been seeing yields come down in europe, continental europe and also in asia. this is the u.k. 10-year yield over two days. all i have to say is wow. down seven basis points. you can see it dropping here at the we'll see if those losses and the yield continues through the morning. the stoxx 600 green across the board. every industry group heading higher. a different picture to yesterday where of course we saw the banks and insurance companies leading the gains after the bank of japan tweaked its policy. if we take a look today, it is energy stocks leading the gains up 1.3% and following behind materials up 1.3%. we are seeing commodities higher today particularly after the u.s. inventories data. let's take a look at the stocks i'm watching. you mentioned a.p. the first stock i want to take a look at here. it is going to split the group to have two separate division, transport and logistics on the one side and energy on the other. it is going to find solutions for oil within 24 months because the oil businesses will require different solutions. the c.e.o. will c

europe, a place that we have to manage. very important for world stability but no romance associated with it and no huge, you know, opportunities. the middle east he's come to, and this has been, there's been an arc of disillusionment on this question. he started off being hopeful about his ability to change it. the middle east, something to be avoided at all costs. and so that's an aspect of the doctrine. one the middle east specifically, two more quick points, on the middle east specifically he's come to the conclusion that america can't fix the middle east. which is a very, i use this word advisedly, but un-american view, you know. every president comes in thinking i could fix x, i could fix y, i could fix z. he's said, this is generational, this is problems of tribalism and fundamentalism, no american president can actually fix this. so you can't fix it and the second conclusion, and you can see this as possibly a rationalization for the first conclusion is that it's not that important anymore anyway, anyway. because we

your bullish europe you've been bullish europe. have you increased your position in europe? >> i have. because in the last 48 hours, we've all learned something new. we're debating the fed moving in september and december which generally in its initial move would be negative for our indexes, the first meeting where british assets are known to be leaving the e.u. happened. the rest of the e.u. is very frosty to them. but they made sure they signaled something very important for all of us as equity investors. they are going to put in tremendous liquidity into the markets there. having already done so with sovereign debt. they hit corporate bonds. i'm talking about the central bank of europe buying credits, crushing the spreads, everybody that owned those during the brexit made a lot of money. for the first time i've ever seen they're discussing buying straight equities. the european bank is my partner buying equities. i think i'll take some of that. yes, i will. we don't have that happening here because we're worried about fed moving against us. pe's are lower, yields are high