♪ mark: live from london, i mark barton. vonnie: and i'm vonnie quinn -- i am mark barton. mark: and i money -- vonnie: and i'm vonnie quinn. the rental car industry has been hurt by ridesharing services such as uber and lyft. joining us with maurice taylor riggs. taylor: a lot of competition -- joining us with more is taylor riggs. taylor: a lot of competition. net income falls. on the one-year basis, the stock certainly is struggling. relativelook at hertz zo its peers, you see thathert is underperforming, going back five years normalized. i think something analysts are looking at is the short interest. and shows a directional bet that investors are making on the stock. you have revenue is expected to drop 2% year over year. vonnie: we had a little signal from avis which is down 20% but hurts is down 70. avis had the rental price per day that rose 1% in july, better than almost 4% drop then -- than they had in the quarter ending in june. look here, it is going to be a long climb back for hertz. you see estimates here just keep falling. one thing they can do like avis has

should -- mark barton. alix: and i and vonnie quinn. this is "bloomberg markets." we are expecting a drawdown of harvey to tropical storm in houston should -- in houston. >> we are expecting a drawdown for the number of barrels last week. the actual drawdown was about 5.3 million barrels which was much more than the previous week which was at about 3.3 million barrels. this is an intraday chart on oil. there is some volatility here, but it will be weeks before we see the effects of hurricane harvey on the inventories. relative to the gasoline inventories, it is much more important that the -- gasoline inventories which are more important to the energy market right now, we are seeing a bit of a bearish trend. oil is trading lower. we are looking at a small build of about 35,000 barrels. a bit of relief for those paying at the pump. we will see a shortage due to refineries ares off-line in texas. the price of oil going to be down about 6/10 of 1%. let's look at a chart which could show the effect of hurricane

mark: i'm mark barton from london. right now geopolitical concerns, earnings reports keep rolling in. the season is about to come to an end. if you dive into our bloomberg, you'll see 90% of the s&p have reported, you can also see the energy sector and see the most positive sales growth so far. for more on the earnings scorecard, tobias, chief u.s. strategist at citigroup. as you say in your notes from a day or two ago, energy had a tough year on the s&p 500, deeply underperforming the market. are things about to turn? tobias: we think so but there are a number of reasons why. the underperformance has been the weakness in the oil prices and a very tight correlation between the way energy stocks trade and the underlying crude price. so one, we think that price will get better as inventories come down for the year and while there is concerns arnaud peck getting control of production, the u.s. production shell story is very significant, a game-changer but also there are limitations to how much you can put through what's c

i'm mark punter -- mark barton in london. vonnie: today, sprint beating estimates with a promise of $3.4 billion, good news for softbank's chairman who is on the hunt for more deals in investments. mulling various options, including a merger with competing carrier t-mobile. cory johnson joins us in new york to explore all of his options, maybe not all of them. cory: that would be impossible, he has shown us a capacity for a lot of changes in business, although he claims to have a 300 year plan for the company. this is really interesting, the notion, this tireless interest in the us thousand of this interest to look at t-mobile. vonnie: the charter has gone away for the moment, but they have not gone away for good. which would be better for son a deal comes to sprint, with comcast or t-mobile, another carrier? cory: you can see in the immediate term, t-mobile is obvious. they are looking at the point five g spectrum, they are both fighting with the giants. under the trump administration, they think they can get approval they c

this is bloomberg. ♪ ♪ mark: live from london, i'm mark barton. vonnie: this is "bloomberg markets." gasoline surging while oil declines. joining us from the cme is brian battle. after previous hurricanes and outages, we saw gasoline spike. within two to four weeks it was back where it has been. do you anticipate that to be the case this time? brian: we don't know yet. there are three parts to the industry. the first is drilling in the gulf and oil and gas. the substitution there around the world. oil is at 47.5 even though it changed. the does go other things are very u.s. specific. u.s. gas is refined in houston. some of the refineries are open, some are closed. there is a lag time in opening and closing refineries. once it isne is refined, they have to get it out of houston. there is a pipeline from houston to the east coast. a distribution infrastructure is at risk and we don't know how long it will be open or closed. the fourth we haven't talked about is human capital. you can't run a refinery and you can't open the ship channel without peopl

this is bloomberg. ♪ mark: live from london, i'm mark barton. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." time now for futures in focus. hurricane harvey is heading to an area in the state of texas that is home to much of the american refinery capacity.harvey has sent futures surging as refineries shut down before the real impact of the storm. joining us now is larry schober. larry, are we seeing most of the reaction in prices today, or will that come next week? larry: probably next week. right now is a very tense time. it is a wait and see moment. the market realizes there is a lot of variables to this. they are treating it right now as if it is a refining event, but we all know this could be a quick moving storm. it could compromise on shore production as well. it could also compromised soybean fields, cotton, rice, etc., so it is something that should not be underestimated. sadly, too many people look at history as a guide and realized if you look at allison, ike in 2008, you realize that refining is only down 2-14 d

mark: i am mark barton. gold falling ahead of the central bankers' gathering in jackson hole. oil advancing. joining us now from the cme, todd horwitz. we have talked about gold failing to hold above 1300. shouldn't gold be higher with the dollar so weak? the dollar last time was low, gold was near 1370. a couple of weeks ago, we went down to almost below 1200 and came all the way back to 1300. friday's reversal is concerning, but it is quiet. so i am cautiously friendly. mark: i noticed that bank of america merrill lynch says gold is on track to climb to a ounceear high of $1400 an because of lower rates in the u.s. political situation. how likely does that look from your perspective? todd: i would like to see $1340 before $1400, but i could see that happening. ery when the big banks make these calls, because typically they are trying to get out. i do think that the bear market we have had in metals the last five years is over. we are starting to turn. i think the bear market portion is over, and we are turning into a bull market soon. $49 is the key price for you in oil. are

mark barton -- mark: i am mark barton from london. time to look at some of the biggest business stories in the news right now. netflix is climbing on the superhero band wagon. -- themic book was artist who has published such stories as "king'sman" and "old man logan." the terms of the deal were not disclosed. sprint is facing increasing competition in the u.s. wireless market. this is your latest bloomberg business flash. we are if we are minutes away the close is next. this is bloomberg. ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. mark: stocks are finishing the monday session lower today. basic resources, tracking metals are high. construction and insurance, the only industry groups that gained today. all the others declining after the first weekly gain in three. lots of good charts to show you. leveraged bets. a stra

mark: i am mark barton and this is "bloomberg markets." less chicken on first word is. -- let's check in on first word news. emma chandra has more. emma: america's top admiral has called for a wide-ranging investigation into the pacific fleet. thousand after the uss john s mccain collided with the tanker in singapore. 10 sailors are missing and five are injured. the mccain has significant damage to its hull. this is the second significant crash and less than two months. spain has launched a massive manhunt for the suspected driver in the barcelona terror attack. they have set 800 checkpoints across the catalonia region. the death toll has been raised to 15. the new victim was found dead in a car. that car was believed to be used as a getaway vehicle. president trump makes upon time speech tonight -- a primetime speech tonight on america's longest war. and his advisers have been working on a revised policy for the war in afghanistan where americans have been fighting from a 16 years. the big question is whether he is committing more u.s. tr

this is bloomberg. ♪ mark: live from london, i am mark barton. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." oil and gold both headed higher today as investors turned away from equities. joining us to discuss the move is our guest from chicago. mark headed to3 that $1500 on this maybe new war of words. why is the market taking this particular dialogue more seriously than previous threats? >> because we have a president that did something that has not happened since president truman. he came out and used history. he had a script, if you watched his eyes, and he made a very clear threat against mr. kim jong on. that threat is very clear. the u.s. will only take so much. a threat of words is very different than a threat of real war, and the war option is probably one it would take them attacking us before we did anything. however, it is enough to set the market up and going. i think the president did it in part to the world to really rally around what is going on and to stop north korea. that pressure will come not on the u.s

mark: i am mark barton, this is bloomberg markets. z's $2 billion bet on tom by emco's $62ven billion. they talked about the importance of pimco. >> i think pimco is severely a valuable member of the allianz family. off that we have acquired pimco many years ago and also staked to the recent years of more difficult development and now going to the next success but also we have to say it is a very volatile and difficult market. we have to enjoy it as the successes come. i would not make a forecast for the next five years as to how pimco is developing. it's a hard fight for customers money and only top performers get the inflows in that fight has to be done and one. every week. they are doing quite well organically but i wonder if you might get in on the purchase hereof the m&a and firemen for fund management. you did just make a purchase in the u.k., auto insurance, what about the fund management side? can you add to pimco's assets with some m&a? we are certainly looking because we have also a second successful asset manager, allianz g

mark: i am mark barton. vonnie: i am vonnie quinn. time for a stock of the hour and we are looking at campbell's soup. at onefalling almost 7% point, the biggest drop since february. emma chandra is here to tell us why. emma: it really disappointed. shares was below analyst estimates. and sells below forecast. we have a chart that shows sales growth. if you look at a that, they have not seen any positive sales growth for the last 11 quarters. one quarter where things looked flat and then going into negative territory. also cameit forecast short, falling short of estimates largely because of the company is struggling to change at the same pace consumer tastes have changed. people rejecting packaged goods and looking for more or garnet, fresh practice organic fresh -- organic, fresh products. unit.ll's has a different fresh was the one that showed some positive growth about only a small part of the revenue stream. bloomberg intelligence analysts saying business is not showing turning around and no blocked does no blockbuster program. --

mark: i am mark barton. challenges facing the advertising business with shares of wpp plunging for the most in 17 years, cutting it revenue forecast and client cutting market spinning. -- marketing spending. joining us is wpp chief executive sir martin sorrell. smacked by the size of the decline in wpp shares today? sir martin: i never comment on share prices. it is a bad thing, whether they go up or down. let's talk about the reason come in the investor meeting today, you listed micro reasons and macro reasons, talk about activist investors focusing on cost, leading to declines, which leads to the you,ion, to what extent do masters of your own destiny, are you at the mercy of these external factors? sir martin: every business is at the mercy of macro and micro practice. , from try to simplify it 2011 toehman, from 2016, a low growth, below trend gdp growth world. very little inflation, very little pricing power for our clients. an environment that we could work with successfully and , 12, 13, 14, 15, 16 rec

i am mark barton with vonnie quinn. stocks finish down for a second day, up by one fifth of 1%, with utilities. also gassed and health care. the gauge fault before that 21 month high reached on may the 10th which puts it on the 10th most performing european benchmarks. after a brief spell of moving in the same direction earlier this year, euro stocks are once again getting ground down, whenever the currency strengthens. the two are diverging by the most in 15 months of according to the 60 day correlation. euro is blue line, euro stoxx 50 is the white line. the euro within 2% of that 120, what some are calling the pain threshold which strategists are dampening with these long-awaited earnings, reviving europe. line, hashe blue overtaken chrysler. ferrari is the white line and chrysler is the blue line, currently worth about 1.9 billion euros more. , and out to brokerage cross, all have increased their price targets by about 25% or more after last week's earnings and reports of expansion plans which may include adding a i

mark: i'm mark barton. french president emmanuel macron approval rating has dropped 40%. about spoke to bloomberg what he expects from a trump presidency. >> i'm happy the french -- and has really given a very positive spin to france. he is indicated to make the necessary changes. there are two areas to focus in the short-term. one is the question around how to reduce the deficit in the second is how to really make a move on labor market reform. these discussions are ongoing and i am confident he and his team are very dedicated to make the necessary changes and really back into the global arena of competitiveness where needs to be. most of the businesses in france, if you take the special business, they are doing quite well. we are well equipped from the changes and we want to benefit from it even more. they're on bloomberg television a little earlier today. the company also reported earnings held by higher earnings. vonnie: time now for a look at some of the biggest business stories in the news now. yum! brands and taco bell came up short last quarter. sales rose less th

mark: i'm mark barton. time for futures in focus. investors awaiting the big stockpile data in roughly 14 minutes. gold lower. dollar gaining after the adp jobs report. shover.us is larry thank you for joining us today. relationship between the dollar and gold weak dollar, strong gold and in reverse? >> in my view i think it has to break down. i have a viewpoint that insulation is nonexistent. i also believe long-term rates are going to go lower, not higher from here. it's been really interesting to watch because the dollar has basically reversed its whole move this year. it really hasn't been affected. 990,you look at the vix at gold as a safe haven isn't a safe haven right now. it's really interesting to see how it will play out. i think the long-term prospects are on the downside. 1300. you don't think it's going to break up and hold. >> i don't think it well. that's one of the few commodities that was long at the beginning of the year. it worked out for the wrong reasons but i'm glad it did. product demand coming from india and e

this is bloomberg. ♪ mark: live from london, i'm mark barton. theie: and live from bloomberg world headquarters in new york, i am vonnie quinn. annual symposium in jackson hole wrapped up this weekend. bloombergs michael mckee got a chance to sit down with cleveland's fed president who has been more one of -- one of the more hawkish members but -- of the fomc. >> monetary policy is still accommodative. the gradual path of normalization is really a gradual path and my argument of why you want to stay on that path is because we are in a more normal economy. inflation is not yet at 2%, but what we learned is we have to move policy a little bit before we get to the goals or we are going to be behind or potentially left behind. we could find yourself in a bad spot. i would not say i may advocate of higher rates. i am a advocate of keeping on this more gradual normalization path where we are taking away some of the accommodations we needed to put in. ofhael: you think the risk higher inflation is greater than the risk of higher rates having a damping

mark: i'm mark barton. counting down to the european close in 14 minutes. yearreflecting today on 10 since the start of the credit crunch. today marks a full decade since -- exposed to sue u.s. subprime mortgages, an event that triggered a credit crunch. assets have largely recovered. we are putting the question to james athey -- i want to show you this chart. , but befored on qe then, the ecb did a lot. james: absolutely. in the u.s., you had recapitalization of banks, you had liquidity provision, a huge amount of rate cut before you got near to the conversation on qe. it has been quite an incredible journey. ,ark: looking at credit spreads reflectds and liquidity what central banks are about to embark on or not? james: i don't think many markets do. that does feel to me something which at the moment markets are putting into that folder of "i "ll deal with that later" or we will wait and see" to some degree. we evidence float and didn't know what it meant. when we had the taper tantrum, just the mere announcement that they would slow the rate at which they

mark: i am mark barton and this is bloomberg markets. let's get to the daily futures in focus, gasoline rising, extending his largest rally since 2013. crude rising $47 and gold turning higher after u.s. economic data. great to see you. where does this gasoline futures rally take us, the eight day of gains. >> we will have to see how much more news we will get out of harvey. in the last few minutes, we saw that the big refinery is going to be off-line for the next few weeks. we are seeing an acceleration in the spike in gas. we are probably near the top of what we will see. not only is it the tragedy of harvey that is causing a lot of this, coming into the labor day weekend, one of the more heavily traveled weekends of the year. the combination is what is fighting the gas prices. -- spiking the gas prices. i see a topping off quickly. mark: weaker oil prices which is wising -- rising. mid-$42 to $43, why are you bearish? >> it is rising and i think it is rising in concert with a little bit of the gas prices. overall demand is still terri

mark: i am mark barton with the european close eight minutes away. boris johnson softening his brexit. another brexit supported making acknowledging the u.k. will have to pay to leave the eu. he said we will meet obligations and keep in mind that this -- after saying the bill was extortion. chief is here.au >> he said the eu could go whistle if it thought it would get any money from the u.k. with brexit. he said today, he really meant they wanted 100 billion euros. he is falling into line. it was a silent summer for him. we were wondering what he was thinking. saying that a transition would be ok, others were saying but he was silent. we do not know if he was planning a leadership bid. he said a transition of one year, two years, three years is fine. united?e cabinet is >> to an extent, chancellor hammond who is pro-business and pro-soft brexit, he has been sitting with colleagues and explaining just how complex it is. the intricacies of it and what it means in real terms. he listens to businesses and heaters then explaining -- here's -- they brexit

i'm mark barton with vonnie quinn. all 19 industry groups on the stoxx 600 rising today, propelling it up five 9/10 of 1% , ensuring the gauge rose over the week after two consecutive weeks of losses. we had some macro data today out of germany. factory orders jumping at a .tronger than forecast orders were up 5.1% versus earlier when ingested -- adjusted earlier. manufacturing coming to a driving force for germany. you --see can send continue to see confidence among businesses. economic activity -- this is interesting. at the start of the third quarter, its lagging behind france, italy, and spain for the first time in more than 12 years. a wonderful chart showing you .actory orders this is a fantastic chart showing you chairs of a company that we don't get to talk about everyday or during an election or a referendum, the yougov polls up. the market research and data analytics group predicted the uk's shock election result in june. the correct call has interestingly boosted revenue ahead of previous expectations. inter

from london, i am mark barton. vonnie: i am vonnie quinn and this is the european close on bloomberg markets. ♪ mark: top stories we are covering and around the world, wpp shares were at one point down the most in two decades as the world's biggest advertising company grapples with a slowdown in corporate spending. we will talk to their chief executive martin sorrell in a few minutes. and politics, theresa may makes another concession on brexit negotiations. compromising on the role it eu law, bringing up a key question -- how more down will brexit become? mario draghi gives a preview of his big speech this week at jackson hole, telling an audience in germany that central banks must be open-minded and be ready to throw tradition out the window. ♪

mark: is 11:00 a.m. in new york and fou 4:00 in london. from london, i am mark barton. vonnie: i am vonnie quinn and this is the european close on "bloomberg markets." ♪ mark: here at the top stories we're covering from the bloomberg and around the world. tensions flare up again with north korea as the kim regime launches a missile that flies over japan. japanese prime minister shinzo abe calling it an unprecedented and great threat. theeuro hits his highest against the dollar. can the ecb talked the euro and doesn't want to? rein in damage totals keep climbing as tropical storm harvey continues to flood out houston and surrounding areas in texas. damage totals could run as high as $100 billion. we have got the latest on the storm, which is to pay for a second

this is bloomberg. ♪ mark: i'm mark barton. vonnie: i'm vonnie quinn. this is the european close on bloomberg markets. shares of invitation homes and starwood waypoint are rising today as they announce what they are calling a combination of equals. julie hyman has the details. they're not really familiar names. they are really standing out today. julie: yes they are. this has to do with single-family realist they. rental homes in particular. really interesting market. ae companies are combining in $4.3 billion all stock deal. invitation shareholders will own about 59%. combined 82,000 properties in 17 metropolitan areas including atlanta, miami, other tell on you. a pretty big reach. i was just emailing with colin quinn wrote who covers this industry. he says this will represent the 19th largest real estate investment trust in the united states. it is supposed to be a tax-free deal and they are targeting toergies annually about 45 $50 million. the invitation homes names will be the name of the new company. the starwood ceo be the ceo and the invitation

mark: live from london, i am mark barton. time for the bloomberg business flash. the price of copper has risen to a three-year high with the chief executive of a metal producer does not see the good times ending. he spoke with bloomberg news. >> we are seeing sustained growth and copper demand link to organization and to the move that china is giving to the consumer economy, much more intensive in copper when it comes to electronics and appliances. add a significant change or disruption technology wise with electric vehicles in the space of clean energy. which is amazing. mark: copper has rallied 20% in 2017. bad news when warren buffett berkshire hathaway attempted by encore failed. it removed the company from creditwatch negative the s&p says berkshire hathaway has had a negative status in july to reflect uncertainty over how it would pay for the proposed $9 billion acquisition. that is the latest bloomberg is this flash. or minutes away from the end of the tuesday session -- four minutes away from the end of the two-day session, stocks rising. volumes 86 percen

. ♪ ♪ mark: would from london, i am mark barton. vonnie: this is bloomberg markets. tiffany shares are now lower, turning negative even after the jeweler reported better earnings and profit than analysts had forecast it. the company's strategy to bring in lady gaga to drive younger shoppers also appears to be working. joining us with more is taylor riggs. gaga is upping sales. taylor: i would imagine shares are turning, with a total comparable sales quarter down 1% and that was wortse than estimates. the america and japan region are a bright spot. the america region was up more than expected, only down 1%. in japan, up 9%. well more than estimates. topline and bottom-line revenue beats. you mentioned lady gaga. we can talk about that. it appears to be working. i remember watching the super bowl and seeing her in that first ad. they were trying to get her to appeal to younger shoppers. vonnie: it ended up not having a punchline. taylor: she is coming out with a new hardware line, more younger, hip makers. that does appear to be working. i mentioned the americas and ja

. ♪ mark: live from london, i am mark barton. vonnie: i'm vonnie quinn. holeapital annual jackson meeting starts later this week. the scene this year is fostering dynamic global economy. we talked about janet yellen and mario draghi and whether they of a global economy and if their definition is the same. >> there is a fair amount of agreement across central banks that a dynamic global economy is one that is on the one hand, registering strong and sustained economic growth. flown by a stable, capital and global trade. on the other hand, one where inflation is a subdued but near target. to me right now that in both of these cases in europe and the united states we are falling short on the inflation objective or should. >> what you going to be listening for this week? there is a quality to the areourse at jackson, we being teased that the speech that janet yellen will give is on financial stability. a broad brush. what we be listening for in terms of her and others? >> one broadpoint about jackson hole is, what really goes on their of substances outside the

mark: i am mark barton county it down to the european close in roughly 10 minutes. negotiations turned tense. u.k. failed to prepare adequately for the talks. >> i've read all the position papers produced by the your majesty's government and none of them is satisfactory. there are still in enormous amount of issues that remain to be settled. mark: back with us from boston is dan fuss. thanks for sticking with us. i'm looking at the u.k. 10-year and you have not been below 1% since the middle to end of june a few months ago. round three of brexit talks are underway. what does the u.k. fixed income space look like given the uncertainty around the outcome of brexit? dan: well, it looks much too pricey just to be blunt. the currency has been up against the u.s. dollar, just under 5% year to date, but recall that it got really clobbered after the brexit vote. it is still well below that level by say approximately 10%-11%. the point is here that we worry about our political situation. my goodness, in the u.k., they really worry about theirs. how do you deal with the uncer

mark: i mark barton. this is the european close on "bloomberg markets." deutsche bank said to be considering a plan that would shift almost 1/2 u.k. workforce to the european consulate. most of the 4000 positions would move to frankfurt and berlin. joining us from frankfurt, a reporter who covers german banks for bloomberg. this seems a bit more dramatic than some of the other banks who are moving employees, such as hsbc and jpmorgan. why is that? >> indeed. it seems like it's going to be 1/2 of deutsche bank's workforce, and what still is and will for sometime in the future be the trading. this is a huge change, apparently. the reason behind this is they also have a new strategy in place focusing more on the german home market and the european continent. it seems like they are using brexit changes as a trigger to implement further strategic investment and that's why it's a bigger change than from any other banks. mark: tell us more, remind us trade inlets been going on with which bank. -- duetsche bank. it's moving assets from london to frankfurt. remind

mark: i am mark barton. retail.rn to tiffany reporting second-quarter better than estimated. same-store sales better than expected. trying to attract younger shoppers by renovating stores, introducing a collection promoted by lady gaga. joining us now is andrea felsted who is also going to talk about dixons car phone. london.ere in that is where i want to start and i am the boss. when the merger happened, many might have thought he would be the electronic side that may be the whirring area, -- worry ing. >> it is a prize. phones are one of the air is if you're going to be squeezed on income, you're not going to cut back on your phone. it seems they're getting more expensive. ,hen you're upgrading them their less snazzy. where holding on to the longer. the expenditure of, weaker since 2014. clearly, if your phone is becoming more expensive, there is not a snazzy new phone to choose from, you're thinking, you know what? i will save a bit of money and save -- stick with my current phone. that does seem to be the case. i think there are some companies specific factors. they have

mark: live from london and new york, i'm mark barton. and i'm -- vonnie: and on vonnie quinn it -- i am vonnie quinn at the european close. scarlet: mario draghi -- mark: mario draghi my need to -- -- we spoke to someone about the impact of the issue. >> [indiscernible] this new application of the euro, we have and we need to economy.ronger and that is the form we want to introduce, we can have the presence to make the economy stronger to face difficulties like the new euro or difficulties on the -- markets. we need this so we can face such problems. scarlet: we are -- the: we are joined by effects and rate strategist from blair linn. is it time for -- berlin. is it time for dimension for draghi? >> i think it depends on who you ask. we have heard from business groups and friends saying yes, the euros getting to levels now that is becoming problematic. we have other business groups in germany that are saying it is not such a big deal at these levels. with the ecb, they set this up and i'm not sure the level at health -- itself is a big c

mark: live from london, i'm mark barton with the european close. 8 minutes to go. adidas leaving the competition in the dust. it is reporting strong second-quarter sales. francine lacqua and tom keene asked about the company global sales. >> we grew almost 20% with double the income forecast growth for the year. we grow in the u.s. more than 30%. china, almost 30%. ecomm, 60%. we are happy with the focus and satisfied with the focus. overall, we are very happy and satisfied with the progress we are making in a market that is not so easy anymore. francine: there is more and more price competition out there, but given the cash and recent disposal, can you actually add anything to your portfolio? if yes, what kind of things would you like to add? kasper: as you indicated, we sold our ccm business out of canada in the first quarter. we are looking for inorganic investments. we have so much opportunity with our adidas brand and reebok brand. we will continue to drive about market growth. you saw yesterday we announced the extension of the mls contract in the u.s., which

mark barton is here with more. mark: u.s. and south korean military officials plan to move ahead with large-scale sea, land, and air exercises later this month. that is in spite of the deteriorated situation with theh korea that says exercises our rehearsal for war. the joint exercises have been scheduled for august 21 through the end of the month. faltering the timeline when pyongyang says it will be ready to launch missiles into guam. despite his reported differences with president trump, australian prime minister malcolm turnbull is making it clear where he stands in the escalating crisis with north korea. >> we stand shoulder to shoulder with the united states. the treaty means that if america is attacked, we will come to their aid. if australia is attacked, the americans will come to our aid. we are joined at the hip. the alliance is the bedrock over national security. mark: prime minister turn bill says he discussed the threat with vice president pence last night. a national survey by the nonpartisan kaiser family found

mark barton and vonnie quinn discussed that question. i think what will be whilesed at jackson hole the titans are here to talk iout very important things, tend to think in terms of the financial markets, that the andome might be a bit flat not really causing much in the way of volatility. to thel due respect talented speakers, i think conditions around the jackson hole area are going to be equally engaging in terms relative to what will be set at the symposium. -- andhat not because it's also interesting but it has -- theth the very of theory of qe. this is that it would help the economy through the portfolio channel. there seems to be reasonable evidence that that could happen. also had an even larger amplified effect on asset prices. that is what happened when it was implemented. reversed, we can collect quantitative tightening, there can be an increase in risk premium and there might be detrimental impact on risky asset prices. put themselves -- put yourself in their position. the central bank needs to be very gradual and careful in

. ♪ mark barton. this is the european close on bloomberg markets. to the top stories we are covering it. the focus on stock this hour. the stoxx 600 is getting ready to break a's three-day losing streak and we have perspectives. side, investors need to take a hard look at what they are doing. behaviors are just too risky. ferrari's going for wheeling. it's carmaker is considering adding -- to its utility vehicle as part of a major expansion push.

mark: live from london, i'm mark barton. highs,trading at record dow jones flirting with 22,000. the billionaire investor howard marks sounding the alarm bells, and a 22 page memo to klein published last week, he said the markets were overheated and risky. in a bloomberg is was of interview today, erik schatzker asked the oaktree capital cochairman why he is sending the warning now. sound the warning is when everyone's making a lot of money. that means the markets are going up, enthusiasm is incorporated in prices and behavior. you can't sound a warning after the thing has turned over and died. markets insee a which there are lots of uncertainties, prospective returns are low, asset prices are high, and people are engaging in risky behavior. that's the kind of climate in which we should take a hard look at what we're doing, and i think reduce risk. : there are lots of people who want to keep making money. what kind of pushback have you gotten? howard: here's a shocker for you, erik. i want to keep making money too. but i try not to deceive myself about my ability to do that. this

mark barton has more. mark: secretary of state next tillerson flew to malaysia today for his last scheduled stop of the south east asia to tour. he met at an airport in kuala lumpur. he met in malaysia after stop in thailand where he urged officials to maintain pressure on north korea. thailand and malaysia had maintained ties with china. making additional information for money spent by the federal government at trump for profit properties. in a letter sent to cabinet secretaries and apartments across the country, lawmakers one document about any payment the departments made to any trump organization or business in which the trump organization has an ownership stake handed over by august 25. u.s. backed military is waiting for in assault against militants near the border with syria. it will involve cooperation with the militant group has below and the other army on the other side of the border. the lebanese army says they are not coordinated with the syrian president. more americans are dying younger and t

mark richt and has more. -- mark barton has more. mark: bill shine is in consider for a white house job. they say shine spoke last week. and he was supposedly talking about taking a position on the communications team. it is unclear if the ousted former communications director will impact his chances. personallynt dictated his sons misleading statement on a meeting with the russian lawyer. donald trump jr. and the lawyer are merely met to discuss the program about the adoption of russian children, but the nemo show that mr. trump's son had accepted the meeting after being promised damaging information about heller: could -- hillary clinton. have talkedwmakers about the former prime minister . he resigned last week after acquisition of assets. a clears the way for the younger brother of the former prime minister. to qualify for the post, he has to win a national assembly seat in an election. trying to gets nearly $14 million in funding from the federal government to help pay state law enforcement over the construction of the dakota ac

mark barton has the first word news. houston, texas, fire personnel and search and rescue teams have begun conducting door-to-door searches now that the weather has cleared. are trying to determine how much damage there is and whether any civilians were left behind. the processls say could take as long as two weeks. congress may vote as early as next week on a multibillion-dollar aid package for houston. that's according to the white house, which says emergency requests to replenish tricking reserves will be addressed in the next few days. government reserves are running low with a political debate looming. congress may have to act sooner government'she borrowing authority to cover the unexpected and additional costs of harvey. aasts overnight at chemical plant near houston. is the epicenter of the u.s. chemical sector. dozens of plants in the path of , knockingshut down out half of u.s. production for some of the most frequently used chemicals and plastics. it may take weeks before damages our properly assessed and oper

mark barton has the first word news. houston, texas, fire personnel and search and rescue teams have begun conducting door-to-door searches now that the weats

let's check in on your markets with mark barton. mark: gasoline surging to the highest in two years, oil easing , following flooding from tropical storm harvey, inundating the texas coast, shutting more than 10% of u.s. fuel making capacity. oil slipping near $48 a barrel. harvey, the strongest storm to hit the u.s. since 2004, made landfall on friday, floating cities, shutting plants, able to process some 2.6 million barrels -- 2.26 million barrels of oil a day. this is the bloomberg pound index. it is a bank holiday today, but brexit negotiations start today. prime minister may coming under twosure from twi fronts -- fronts, regulators pushing her to reveal her hand, the labor lureaking a bid to critics to their side, revealing it wants the u.k. to stay in the single market in the customs union. the pound index is hovering above last wednesday's close of 648.29, which is the lowest since january 16. always good to look at sterling against its broad peers. euro, this has risen to its highest level since january 2015. garfield reyno

mark: welcome to our weekly brexit show. i'm mark barton. let's get a roundup of the week's brexit news. nejra: the bank of england cut its forecast for economic growth and wages at it kept its benchmark rate at a record low. britain's economy has moved into a phase of study but sluggish growth. it was announced that eight cities from frankfurt to dublin have applied to host the european union's banking authority. 19 are looking to be the home of the drugs regulator. the news kicked off a campaign to win agencies being forced out of london by brexit. thanks mate as much as $50 million in capital in the aftermath of a hard brexit. according to oliver wyman, some smaller firms may abandon their operations on the continent altogether. deutsche bank is envisioning shifting all months -- almost half to the continent in the coming years. according to people briefed on the matter, most of the positions will move to frankfurt and berlin. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nej

holgate, and analysts spoke with mark barton and vonnie quinn of bloomberg markets. >> look at 12 months and sort of the narrative of the last year and a half or something, it has been the gear on the balance sheet that everybody's been talking about. the level of gear too high and ahead to do something about the asset sales. cut and reduce that leverage. and now, of course, after the event, commodity prices cover. should they pay out the dividend in 2017? they have certainly spoken about the potential for what this could be next year in 2018. once they have secured his current state of play. >> there is a signal of companies looking at deals. it's already been on the acquisition trail. >> this is a company that has always been opportunistic in its desire to find assets. if you look at what they've done, they've inquisitive. it's a commodity a lot of people have stayed away from. assets there.hed what is going on with rio tinto is another sort of example of that. i think that they will be know, as i say, valuations in that sector. and also if you look at the , its nose he grit they've be

let's check on the markets with mark barton. mark: euro traders are gearing up for volatility, whereas those dealing in other currencies are anticipating little impact. one week euro volatility trades about 47 basis points higher than two-week volatility, more than triple the premium on dollar-sterling and the yen. the white line is euro-dollar one to two-week volatility. draghi speaks 4:00 p.m. new york time friday. that is interesting, as is this, as donald trump threatens to shut down the government in october over border wall funding. in normal times, rates on fixed income investment go higher the longer the maturity. something unusual is happening. investors are demanding higher rates on those securities maturing on october 5, which is around the time the treasury estimated it won't be able to pay its debts. some are calling it a kink in the yield curve which is becoming somewhat more pronounced, which leads us to the ability of the president to push through his agenda. wonderful chart showing us the most tax companies rela

let's check on your other markets with mark barton. mark: the yen is rising, gold up, u.s. 10-year falling after president trump ratcheted up his rhetoric against north korea. the south korean won down as much as 0.8 today. the cost of insuring five-year from nonpayment climbing as this chart shows. the kospi 200 volatility index jumping as much as 30%. this giving us an idea what is happening to risk assets and haven assets. this is a chart tracking volatility, the blue line versus the yen. global volatility has risen 4.5%. investors have sought security in havens. tying into today's geopolitical news, staying with politics, the yellow line is rand volatility year to date. the intraday volatility yesterday rose to 39, highest z zuma november after survived that bid to oust him. overline volatility just giving a little bit today. on the s&p 500, it hit four yesterday, even lower today, the lowest level since electronic trading was introduced. the 1920's,back to the only time it was lower was in the 1960's. the stoxx 600 has seen volati

let's check on your markets with mark barton. mark: president trump's measured response to north korean missile launches from kim jong-un suggesting geopolitical tensions will ease off. stocks are rising. one industry group is lower, utilities. the euro temporarily crossed 1.20. the ecb may make references to the exchange rate that could halt the pace of appreciation, but a meaningful reversal remains unlikely. upside risks are forecast. next year. 1.2167 is a key level. this is the fibonacci chart. the bottom is net longs in the euro. we are near the halfway point of depreciation from may 2014. on the flip side of the coin, mark carney, is it time for him to talk about sterling weakness? we are near the levels we were back in october, when carney said he and his colleagues weren't in different to the exchange rate. watch out for future comments. they are willing to look through the depreciation of the pound, but any further depreciation, they test their tolerance against the euro. sinceng near the weakest 2009. theresa may is in

let's check in on the market action with mark barton. mark: whatever you want to call it, the middle of the earnings season, time to show off our wonderful ea functions earnings analysis. this is for the stoxx 600. surprising byles 1.25% on the upside. click on growth while we're at i t. this shows sales growth, 7.8%. earnings growth, 19.5%. 256 at of the 406 companies have reported earnings, francine. if you have a bloomberg, explore the terminal. this is b.p. over the last year. let's look at the one-day share prices to show you how the shares are fairing. moving to calmer investor concerns, saying lower oil spill payments and funds from asset sales will ease the burden. net borrowings totaling almost $40 billion at the end of june, up almost $9 billion. b.p. did manage to cover the dividend commitments with cash flow during the first half, but it will need oil prices to rise or stay put to avoid further debt increases. down 10%,b.p. stock, the worst performer among the world's big five non state oil company. this is a good chart but o

let's check on your markets with mark barton. mark: jackson hole, wyoming, is the center of our attention today and comes as equity markets and credit markets are continuing to go from stagnant to strength. the global economy is enjoying the first synchronized swing since 2007. meanwhile, central bank as we talk about normalization policy or actually continuing to expand by about $300 billion a month. there's a lot of work, a lot of money being put to work in markets worldwide. the white line is global, stocks the msei and the world country index. look how it's smoothed. the g.d.p. balanced sheet is the blue line and the fine line is credit and bond markets, all headed in the same direction since 2009, francine. hurricane harvey is strengthening on its path before and towards the texas coast forecasting to become the worst storm to strike the region in more than a decade. prices of commodities from gasoline -- this is gasoline surging, gasoline futures, soy beans rallying and threatening to wreak havoc in the heart of america's e

here is mark barton. mark: wpp chart ready. my --t timing, as i chew what a day it has been. down by 10.6%. did fall as much as 12%. biggest decline since 1998. 2.1 5 billion pounds wiped off the share price. the world's biggest advertising company cutting its full-year revenue forecast, clients slashing spending. particularly noted in the consumer goods sector, like for like revenue growth expected to be between 0% and 1%. wpp did say it didn't experience any significant loss in revenue from clients or the data from that cyber attack in june. it is all about that change in the revenue forecast. draghi just spoke in germany. this is the taylor rule, which gives an estimate what a central bank interest rate should be. #btv 3 622. the eurozone is a lot of countries. to take on some of the estimated rates is quite comfortable. poland, 9%. -1.3% for the periphery. ireland in between. fantastic chart from queen of charts. u.k. government getting more worried about the economy feeling less confident according to a new report by the recruitment and employment confederation. it said

francine: thanks so much, mark barton. a key part of french president emanuel macron's political and economic strategy the next five years is due to be unveiled at a news conference this afternoon. the prime minister philippe will set out the administration's plan for major labor reforms. the finance minister said the measures are needed to boost the economy. >> i think this is a very clear signal we have to win force and strengthen our economy if we want to face this new value and new appreciation of the euro, we have and we need to have a stronger economy and that's exactly the sense of reform we want to introduce with the prime minister and with the president. francine: with us is the co-head of credit. are we expecting too much or too little out of france? >> if you look at basically how asset prices have actually moved since macron's election, i don't think the market is really expecting a lot and i think that the recent room for surprise, don't misunderstood e. and the labor market is in need of becoming conforming s