We are at one dollar. 099 1. 099 dollar. There are your numbers. Manufacturing in france falling. As a price contraction. Euro off by 1 . Today is all about commodities. Copper lower. Goldman sachs says it has further to go. Oil, a little bit of a rebound. We are seeing it continue to decline, up by 4. 2 . Lets get back to how the you how the euro is responding. Continually lower, contraction for pmi is a surprise. Lets take on some of the equities. We did get a number of earnings. Terrible profit numbers. We expecting jump in air france and Anglo American. 4 on error finance on air france. Better than anticipated. Theyre having to reduce their cost, because they have been hit so hard. Desperate to take on the discounters in the area. Desperate to take on the likes of the longhaul emirates and the likes. How did a tackle it . They like the fact that there would be trying for more cost cuts. Anglo american, up by 30 . Were seeing the dividend cap where it was. Dividend cap where it was. Anchor , a greco falling short of expectations. Is all about the slowdown. Jonathan lets run you through the french pmi numbers. At preliminary reading for the month of july, coming in at 49. 6. It is a drop from the pages month. It is above 50, so it is an expansion territory. But the survey and previous month. At 50 15, below the survey and previous month. The story in france, not 50. Thats not pretty. We german pmi data as well. It is a day for global mis. We had global gets read data out of china as well. Falling to the lowest level in 15 months. It missed the estimates of all 16 economists surveyed by bloomberg. The Market Reaction we are joined by david in hong kong. Were joined by bureau chief, nick. However markets looking . David not very good. We are seeing flat on the index as well. With shanghai composite, we were up. Back to its old habits. Big swing down. 2 swing down. 48. 2, as you mentioned, below even the most bearish forecast. Clearly in contraction territory. This is a preliminary number. It is a private survey. It is not the official survey. That being said, you take that and you take the other bits and pieces of data out of asia all pointing to slowing momentum. It highlights the difference between what we are seeing in this part of the world and what were seeing in u. S. What you had was a strong u. S. Dollar and a bond yield coming down. That plays all across the region. Especially on to mention, mining stocks. Resources on heavy machinery all get short off today. Strong dollar. Back to you. Jonathan take you very much. Lets bring in beijing bureau chief nick wadhams. There is nothing to see here, i look at pmi and it says there is something wrong. What is the story in china . Nick the question it raises is the contradiction between new numbers, it is a sense that Financial Firms really benefited very strongly from the spike in the stock market that we saw until june. Then with that plunge, this would seem to suggest that gdp number really relied on the strength of Financial Firms. That was masking underlying problems. Some broader problems with economy. Djokovic, do you think this reading will force the government nick do think this reading will force the government to do more . Nick the question here is the measure it has taken in the past and what it can do in the future . This measure primarily looks at Small Enterprises that are exposed to export. It would seem to show pass measures really benefited from state owned companies. Interest rate cuts would really benefited the big companies. Now the government will need to look at what it needs to do to benefit those in firms that seem to be dragging us under the Economic Growth numbers. Jonathan bloomberg news, beijing bureau chief, nick wadhams. Thank you for joining us. Join us marks bradshaw. Marks, great to have you with us. What is the story . The gdp figure . Pmi overnight . I believe the gdp figures are difficult for the markets to understand, because of manipulation. I look at commodity prices, that technology that demands the chinese infrastructure. The pmi data suggest the growth is slowing. We know china has a structural growth problem. You are going to slow as you develop. They have a cyclical growth problem. We are positioned for a slower chinese growth. It has important implications for globalization, but also for currencies. Jonathan bridgwater coming out saying i am out of china. There is nowhere safe. We have not seen the full cuts which is of the stock market. Do ticket view do you take that view miles the main thing is that it is investor base. The population has shares. Clearly you saw speculation leading to real estate and equities. I dont think it has a bigger implication in terms of leverage for the banking system. I think we didnt see a boom on the back of 100 increase. Well see a bust on the back of jonathan i look at other pmi cases. It is disappointing. Greece, that certainly was is it that certainly wasnt a surprise. Is the trend still an improvement . Miles we have the german pmi. We need to see the data when it comes in. The ecb Credit Conditions for example they are showing consistent picture of a tift picture of positive trend growth. Just under 2 . This is not boom territory. This is growing after seven years of no growth. The ecb is going to have to keep their foot on the pedal. Theres so much pulling down inflation. Jonathan you think improving data would make this is no boom and the ecb keeps its foot to the pedal. When i look at it trading at wiser 15 basis points. We are as wide as 116. Where do we go . Myles i would not expected to go they quickly. Their reasonable value. What do investors do with Interest Rates . With real yield . I think investors after reach for slightly more risk to hit their target. I think it is good value. I dont expect it to go to 50 in the next year. To me, it is very good value in terms of building a portfolio. Jonathan as you are gauging what are you gate thats what are you trading . At in a qe and commodity rout. We are in q3, i want to know what to do with it. Like a long bond. Do i go long bond . Myles a commodity rout is easier to take. The underweight commodity i think those issues you can clearly get a lot of juice. As a Global Investor thinking about developed markings developing markets, what does this do to the fed . Does it mean the fed pauses and does not go ahead . It is going to be about u. S. Economic data. I think all Central Banks in europe and u. S. Are going to look through any volatility and spot inflation. Jonathan some of that can bleed. The other story in the u. S. Has been working on if cheap oil is good for the u. S. Economy or bad. Myles it is good for the u. S. Economy. You see a fall in investment spending in the u. S. Longerterm impact is that the consumer who has a higher marginal to spend. They have a higher disposable income. There are timing aspects. I think cheap oil is good for the global economy, because consumers who generally are the west, overdoses Oil Producers who generally are opec jonathan as you sit there as your debts as you sit there at your bloomberg terminal is that going to continue for you . Myles is predicated on what the fed is going to do. Guess it is predicated on what the fed is going to do. It is predicated on what the fed is going to do. We are slightly overweight, but we are much more taking a position where to us it is a better value. We are very underweight on the front end. Jonathan who is too dumb to share the market . Or the fed . Myles i think the market since the market is priced below the fed. The symmetry of risk. The risk is not so much that the fed gets the wrong inflation shoots up. The risk is what does this commodity slowdown mean . Does it mean that Global Growth is weaker . The market is where it is. The bottom line of that is if the data comes as expected next line Jonathan Miles bright show, thanks for joining us this morning. Why the profit drop. Anglo american maintains dividends. I will speak to Mark Cutifani after the break. German pmi comes out in 15 minutes time. I will bring you that live on bloomberg tv. Amazon delivers. Shares in revenue. The stock climbs almost 20 in afterhours. Join us after the break. Jonathan good morning and welcome back to bloomberg tv. I am Jonathan Ferro. Im pleased to tell you we are joined by angloamerican chief executive Mark Cutifani. Mark, great to have you on bloomberg tv this morning. Mark thanks jonathan. Jonathan the analysts and investors not expecting to see this one. It remains. The big question is how sustainable that dividend is. Mark we changed our dividend policy if you years back. We look at our cash position and what we expect to see in the market. We apply it consistently. In the last six months, weve taken more than 1 billion and continued to exercise discipline on capital. We are continuing to approach businesses. We delivered our cash flow and net debt objectives. We can support the dividend. We will continue to apply the same policy when we come back together in december. Jonathan i remember sent a carroll, i member her cynthia i remember cynthia carroll. They remember her for that which he did with the dividend. Mark i think every ceo has to be conscious of what their shareholders are sensitive to. We make sure the policy is applied confidently. We do not look at just the six months at the next six months. It is getting tougher. Certainly there are sort of things we have to take into account. Were continuing to improve. We will see what comes and we apply the policy consistently when we get there in december. Jonathan how confident are you when you get there that the dividend remains . Mark it is always under review in the sort of environments. You take six months as it comes. When we were looking at the whole strategy in february, we talked about supporting the dividend next year from kessler. We seen a 1. 7 million drop. At the same time, weve been able to pull back a billion dollars in costs and operating improvements. We still have another six months where we are going after work very hard to stay there. I would not write a soft yet. Jonathan i want to talk about the environment and the mining environment and places but look at places like rio and bhp, no matter the price of the stuff they are pulling out of the ground, what is your thoughts on that . Do you have no choice but to follow up and do the same thing . Mark first thing i would like to say is i dont make comments about specific competitors do. All i can say is we look at the market, we make a judgment about what the demand is and we make a connection decision on that basis. We have cut platinum production and diamond production. We have cut coal production. Thats how we operate in the market. You should ask others what their strategy is. Not me. Jonathan i will last them when they come on the show. Could you characterize what is happening . Mark i think it is clear that we have an oversupply. 100 to 200 million tons. That is clearly having an effect on price. In the end, youll have to ask others on how they intend to respond. Jonathan i will do just that, mark. As a look at the Commodity Markets, it kind of tells me we could be in for a. And for a. In for a period of consolidation. Mark there is a chance that somebody will do something. What i am seeing is most companies are under stress in terms of cost. I think most of us are going to hand out making their Companies Better companies. If something comes, then it may come. We got a make sure we have to get our cost down. From our point of view, in the next three years we are the numbers of the number of assets from 58 down to 40. We are reducing our numbers 35 . At the same town at the same time, well be up to hold our production. We will do the right thing i shareholders. Jonathan lets talk about cost savings. Can we get specific and where those cost savings are going to come from . Mark we are continuing to downsize the operations. We are to have to continue on with that. Were dropping overhead in the next two years. From 13,000 to 7000. That is a significant change. We are downsizing the london office. Were making sure we are leader Click Organization that is a much more productive organization. Jonathan when it comes to selling access thats selling assets and how difficult it is to find buyers for those assets. Mark any months ago, we talked about trying to raise 3 billion to 4 billion in assets. That puts us well on the track to get to that minimum threshold. We have processes going on in platinum, copper coal, across multiple jurisdictions. We are required to make sure the potential is understood. We are in a discussion. We expect to show progress by the end of the year. Certainly doing the course of next year, we will hit our 3 billion threshold. Weve made clear that we expect to deliver the 3 billion. Jonathan whenever we talk, we spent time talking about supply. I dont think we spent enough time talking about demand. D. C. The demand picture, do you see the demand picture right now . When you look at what is happening in the chinese economy, d. C. The problem . Chinese economy, do you see the problem . Mark we certainly see a reduction in manufacturing and industrial activity which has an impact on commodity. Yes, we are concerned. There are concerns. At the end of the day, we have seen the sorts of things before. We will get through it. Other areas, youll see potential pickup india, africa. U. S. May be looking at little better. That economy is changing. When one starts to fall away others got. We think it will be a tough six months, that is for sure. Jonathan a lot of people expect the Commodity Markets to rebound. One thing that stands out is 2015 versus 2014. What are your sanchez right now as you look at the Commodity Markets . Is a difficult . Mark i think in the books, it will be difficult because of the supply situation. The Precious Metals area, theres a lot more potential for upsize. There might be many months before we see that advantage. We think we are in a better position, because of our relationship to versus metals. We think the next relationship to Precious Metals. We think the next six months jonathan i will be talking to you very soon. Coming up on bloomberg tv. We are minutes away from german manufacturing data. Well bring you the number and breakdown the significance after the short break. 26 minutes into the session. Equity markets back in touch with the ftse 100. Such of the boards and check out the Commodity Markets. The rout continues. I have copper trading at a 2009 low. Gold at a 2010 low. South of 1100. Bloomberg Commodity Index trading. Of course these in the mining sector. We will talk more after the break. Get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swifts music videos interviews, and more. Xfinity is the destination for all things taylor swift. Jonathan good morning. Welcome back to bloomberg tv. I am Jonathan Ferro from a busy headquarters here in london. Some figures coming out of the German Economy right now. This is the german purchasing management thats german purchasing management index. Also known as pmi. It is missing the forecast of 51. 9. That is not a good number for the German Economy. That is an indication of the health of the manufacturing sector. A historical chart here. It has remained an expansion territory for some time now. The fact that it is missing the forecast, will be before cap will be the headline. Sun listed out the euro and see how the numbers are impacting trading this morning. 1. 953. And makes pmi data out of france. Mix out of germany as well. 31 minutes into the trading day. The ftse 100 putting much debt flat. Pretty much dead flat. We go straight to commodities. Bloomberg Commodity Index at eight 2010 low. Copper trading at a 2009 low. The bti wti back in the bear market. We are in a commodity rout. Lets can you the stocks to watch this morning. Lets bring you the stocks to watch this morning. Kirilenko that collapse caroline that collapse lit turnaround the business. You heard him say it is going to be tough six months ahead. The stock fell to a 13 year low this week. Earnings Beat Estimates today. The company says it will maintain its dividend. That is why we are this stock rallying this morning. More pain for the commodities route. The german chemical maker. The slump in the oil market passes on those lower prices to customers. That stock down 3 . Pearsons earnings decline. It missed estimates. Demand for textbooks continue to shrink. You are enrolled in college. It is sold the group to nikkei the japanese publisher for 844 million pounds. The drought dressing today is a little more reaction. Jonathan i was sitting at my terminal this morning, digging through the press release from Anglo American, lab books agreed to buy coral. Lets bring in paul jarvis to talk about it. There is pressure on the high street. Whats push this deal . The pressure online . Poll the Ladbrokes Coral deal betting office. Theyre both a long way behind in terms of game. If you put them together, they are going to be the number three in the u k. By far, they will be the largest chain. They are going to have about 45 of the market. Jonathan what is we him help doing that ladbroke appears to be struggling to do . We him hell william hill far far and away. What is william hill doing so great . Paul online is where it is at the moment. Youre seeing a lot of these emerges that are being brought together at last week we saw the party deal. This is brought on by increased taxation. It is forcing the online operators together. As a result, they are Getting Better they are getting bigger. Jonathan when i look at the likes of regulated, when we talk about m a, we talk about what will regulators say . Are they going to give this one a green light . Poll no they havent. There is no doubt that the m a is going to take a big interests risk. They will have to sell. How many they have to sell . Whether the cma will allow this deal to take place is a whole different debate. Jonathan do you want to invest in a stock that going to confine 45 share . That is a question for the investors and analysts. I will not do that to paul jarvis. The worlds most viable retailer is now a website. They saw the market cap jump above walmart. Posting a profit. He stocks surging as much as 90 . A huge move in the world of tech. I will break at all down for you after the break. Jonathan this is bloomberg tv. Lets get to your top stories. About a gauge of chinese manufacturing fell to the lowest level in 16 months. The pma the pmi showed the worst contraction. That missed estimates by all 16 economists surveyed by bloomberg. Anglo american First Quarter profit dropped by 30 . It beat analyst estimates. It maintain its dividends. We are expecting it to be scrapped. Shares are trading high. As platinum prices continue to slump. The company says it continues to close the mind shops and south africa. The worlds most viable retailer is now a website. Amazon shares jumped as much as 19 making them worth more than walmart. The Company Reported a surprise a second the profit. Caroline hyde has the story. Caroline what a time for ecommerce. What a glowing reputation of how times have changed. It is now the biggest retailer in the world. Economists wins out. Lets look at how much amazon amazed yesterday. Lot numbers. Blowout numbers. Every amount he makes keep house i can to the business. He left just a little bit, less than 100 million. It was enough to wet investments investors appetite. The also like the fact that sales are up 20 . The shares spiked in afterhours trading. At one point reaching 19 higher. Shares have already gone up 59 already this year. Now theyre going to get another search when they opened this morning. Suddenly your market value is in excess of 200 billion. We want to see what the growth drivers. It is still an economist player. Remember prime day . Celebrating its 20 anniversary. It managed to have a flash sale. Just one bail thats just one day, they dont up more sales than they would do on black friday. Amazon prime, you can get sameday if not today delivery. They are really ramping up the availability of content. They are piling in money into their selfmade films. The series that are doing so well. Ecommerce is becoming addictive, but so is web services. We are seeing a massive sport of competition. Missing prices being driven down. Amazon going up. There saying please use amazon web services. Theyre making more than 1. 8 billion now. They love this part of the business. Also control spending. Still investing in delivery of their goods. Still making out huge services, but at the moment, meaning it in enough to give profits. Are we at a peak . I would yet amazon prime . Alibaba, they are investing. Could this be concerned . Sameday delivery could be an issue. Technical indicators the relative strength index currently at 70. We have not seen the pop from the results. We could see the fact that many feel this share prices feel this, share prices are overboard. Jonathan is quite something. Thank you very much. Paul we are not used to sing this, are we . A profit at amazon . What is happening . Paul this is a company thats really conditioned wall street. We are investing for the future. Look for the top line growth. Look for growth and merchandise value. Ecommerce is a multi generational, longterm play in terms of the evolution of retail. We will deliver profits for you at some point down the road. At some point, investors want to see a little bit. The Management Team and new cfo gave investors a little bit of a taste and what the profit potential could be. They want everyone to dial back their expenses. Simon im going to pick up to jonathan im going to pick out amazon and google. google is the real First Quarter out paul google is the real First Quarter outofthebox. I think for amazon investors they should not get too comfortable with this. I think they are in the mode of they need to invest. As caroline mentioned, there is a lot of competition. Amazon clearly has incredible advances over there appears. Over their peers. Customers want sameday delivery. Jonathan the ceo still has the benefit of the doubt. We talked a lot about valuations. We saw on google and amazon. Bigger than walmart . Walmart about five times its annual revenue . Whats the story there . Paul investors are saying listen ecommerce is 70 of u. S. Sales. They think the numbers could go north of 10 . That is not such a receiver this is not such a big percentage. Thats the future of retailing. I think longterm investors and amazon investors in amazon, theyre making this a play on global ecommerce. Jonathan call sweeney, he is going to stay with us. He has been a busy man. The for is being picked up by japans biggest financial newsgroup for 844 million pounds. The ceo says the sale is in the patrons best interest. Chris ware taking a longterm view of this project. We see Significant Growth potential. I think if you look at the way they operate their shareholding structure, they took a longterm they take a longterm view. Take cost out of it, they want to build. Jonathan lets head out to tokyo. Brian fowler, great to have you with us. What do they get for . Brian nikkei is going to have a press conference beginning at 14 minutes. Well see we hear from them directly. It is easy to say they did two things they badly need. One is global reach. The other is digital expertise. Nikkei has been trying to be a bigger player on the states. Player on the stage. Two years ago they lost the nikkei asian review. I think nobody noticed. Nobody reads it even now. They are suddenly a big player on the global stage. They are one of the three biggest equity news the others being bloomberg and wall street. They get all the digital expertise on their website. Tom almost every News Organization has been approached about a potential for a deal here. Not any of them came up with nikkei. What is the take away here . I saw three is ago, we got a big discount. What is the story . What is driving this . Brian good question. On the timing pearson said the timing on it. Thats pearson set the timing on it. Pearson set the timing on it. Japan is making a concerted effort to be a bigger player in every way. They want tokyo to be the financial center. Having a good Global Company is a part of that. That is something that japan will be celebrating this morning. The economy mr. The economy minister said he thought with this deal reporting on japans economy will become more correct. It is a slightly strange thing to say. He hopes the accuracy will improve. Jonathan bloomberg news, japan at managing editor thank you for joining us. Lets get final thoughts from paul sweeney. It looks like a huge price tag even bigger when you present in yen. Paul they were looking for something south of 1 billion. Given the profits we are seeing pretty miniscule. They are not really buying for profit. They are buying the franchise value their only a handful of franchises that have that franchise value. There is a certain kind of frenchs value. We have seen in the past, the japanese are not shy about buying Properties Around the world. The go wouldve gotten a bigger discount the is ago. Jonathan you wouldve gotten a bigger discount three years ago. Do you think japan is going to be a bigger player . to the extent that the japanese economy does improve. Perhaps we can see more aggressive this coming out coming out of Japanese Corporate spirit this Japanese Corporate. The nikkei did come out of nowhere. The newsrooms around the world including here, not many people were talking about nikkei. They came in at the very last 10 minutes of bidding and came in and got this deal. This is a marquee name for a new player. Duckhook everyone in the city of london in the world of finance should be waking up to bloomberg. We also work up to the ft. Paul the ft has a great journalistic tradition. I think if youre nikkei, you are looking to grow this business in the u k and across europe, north america and asia. This is a brand that i believe there saying we can take this globally. They are hoping it can be something that can resonate in the digital world. Not so much the ink on paper products. They are try to make this a global organization. Doc a great to have you in the studio this week. I will be here after the break jonathan a great to have you in the studio this week. I will be here after the break. I will be back in two. Jonathan good morning and welcome back to bloomberg tv. Im Jonathan Ferro, joining you live. Thats lets get to the matters of this week. Copper extended gold extended losses to a fiveyear low. Oil dipping back into a bear market. The bloomberg market index is at a 2010 low. It is the worst performing sector this week. Anglo american reporting a 30 drop in profit in the first half of the year. They maintain their dividends still. Now over to earnings. Amazon delivers a profit that topped analysts. Once u. S. Markets open, amazon will overtake walmart as the worlds biggest retailer by market value. That is a most it for this hour. The pulse is coming up next. We are joined by manus cranny. Manus cranny give us the uptake. Manus i have a News Conference at 9 00 a. M. We have been joining us. Thats we have we have ben joining us. Were going to get his take in terms of how these businesses might fit. There are two comments from employees. We share the same journalistic values. We share the same journalistic values on between. Journalistic values on the tweet. What is to happen with the japanese . How will employees react . Jonathan manus cranny, coming up on the pulse. They are going to be talking about ft. The commodity rout that continues. For more talk about these markets, i am on twitter. The 600 mining index down 700 . The commodity rout continues. The best of luck. Have a great week and thats have a great weekend. Have a great weekend. Francine chinas manufacturing missed a private gauge as industry drops to a 15 month low. As the worlds secondlargest economy shows the commodity rout continues. Manus amazon aces its latest profit report sending shares surging and taking the online giant past walmart is the Worlds Largest retailer. Francine longman plans more job cuts and Anglo America post a 30 drop in profit. Welcome to the pulse,