Transcripts For BLOOMBERG The Pulse 20240622

Im Francine Lacqua. Manus im manus cranny. Shall we get into this breaking did . Francine we have some european encompass it pmi. Composite pmi falling to 52. 5. Analysts were forecasting 52 5. 5 manus the eurodollar declining. Germany missed on that as well. For the compass it for the whole of europe, it also missed. Francine actually the services pmi fell more than the manufacturing pmi. Lets bring and stephen morel. Great to have you on the program. When you look at the pmi, how much do we care about this . We are still so worried about greece worried about what happens with the debt relief and we are lori that italy may become the next greece. Pmi meh . Stephen if you look at the composite pmi there has been an improvement over the last six to 12 months. Their something that becomes an issue as well. The nature of the euro. Its a q. E. Currency. The balance of payments data suggest significant outflows. If you look at the net errors account, there are clear signs there. Of capital ouflows related to carry. So, it is still a q. E. Currency. I would say that matters more than the pmi. In other words there is limited upside potential for the euro. Manus with that in mind, we cannot get away from greece, but the imf have spoken this morning about their concern about a balanced approach to greek debt building a blowout between the creditors. Imf disagreeing verssus th versus the germans and the french. How concerned are you . Stephen we see a 60 chance of grexit. Francine by . Stephen medium term. The talks about a new a program could break down. And even once the program is agreed in august, there could be issues with the implantation of that program. Largely because some of the expectations about primary surplus in greece are pie in the sky. Growth expectations, when greece can return to the financial markets, the success of the privatization program, all these things are very difficult. The main Sticking Point is Debt Forgiveness. Francine but Debt Forgiveness when you have Christine Lagarde saying this is what is needed. It is like Christine Lagarde against angela merkel. It seems we have progressed so much in the last three weeks, is it really an issue . Stephen Debt Forgiveness . Absolutely, it is an issue. You have to match the economic realities with political realities. If you look at previous example, the imfs involvement with poland after the end of the soviet union. The creditors to poland, one of which was the United States, Debt Forgiveness was on the table. And it was used to match the political reality with economic reality. Francine but it wont be the same case this time unless merkel really against it, debt relief of have to be on the table. Stephen absolutely. I think a lot of the assumption is that the creditors are making about the success of the program are called into question without some type of Debt Forgiveness. The political reality of the situation is that greece is responsible for the situation it is in,but its not the only party that is responsible for the situation. Francine thanks so much. We will talk about china next. Manus chinese manufacturing is next on the agenda and has fallen to its lowest in 15 months. It threatens to extend the commodity rout. Pulmonary pmi is at 48. 2 for july. Asian stocks slowed closed out the trading week with losses. Francine lets talk to our china reported. What is the latest pmi telling us about the state of the chinese economy and did the stock market slump have an impact on that pmi reading . This measure looks particularly a private companies that are heavily exposed to exports. And they are facing we demand especially from the you and emerging markets. That part of the economy is still struggling. At the same time the policy measures that have been rolled out over the last few months are doing much more to support the state sector. In overall terms, the economy is a little bit stronger than this measure shows. I think with regard to the stock market the economy got quite a lift in Second Quarter from the stock market boom. That is no bust now bust. So, we are seeing the underlying conditions of the economy are not so good without the stock boom. Manus tell me this. We have always had is already had a series of rate cuts. How much more action do you expect from pdoc . Kevin i think without the lift from the stock market boom and the economy is probably going to need more support. Consensus is we are going to get more support. Im not quite sure how soon. We expect an Interest Rate cut before the end of the year and perhaps more targeted measures for private Sector Companies in particular and perhaps more fiscal support as well. Thmanus thank you for joining us there. Francine now, lets bring in stephen gallo. To talk a little bit of china. So, we mentioned eurodollar. What happens to the yuan . China we understand will allow a wider broad trading. Stephen you have to look at the changes that the regulators are making to the Exchange Rate and context of the overall reformist approach theyre taking. It is a small step. It is a very small stuff. I think when you are looking at the Economic Data and balancing that with the volatility we have seen and mainland equities over the last three months or so, you have to consider cina is china is not south africa, it is not turkey. It is not as dependent on foreign capital as those countries. So weakness domestically does not automatically translate into a sharp weakening of the ren membi. Manus they have confederate they have defended the yuan. Selling reserves. Are we about to see them change direction on that and is that have consequences within fx . Stephen i personally do not have proof they have sold reserves to support the currency. Earlier this year, there was evidence of significant bleeding of reserves. Capital outflow. In q. 2. , if you look at a couple factors, the difference between the change in the reported reserves and the difference tween that and the reserve level adjusted for fx and bond valuations, the reserve bleeds have subsided based on my back of the envelope calculations. Also, what i do know for a fact is that domestic purchases of Foreign Exchange by end users have declined. And that is an indication there is a little bit more confidence in the renminbi on the part of may residents, corporate and households. So the bleed in q. 2. Was nowhere near as significant as it was early in the year. What we do expect to happen for china and the renminbi is that due to the weak backdrop domestically, Portfolio Outflows will probably remain reasonably high. So, as the capital account opens up, residents are buying foreign assets. In addition, you have modest fed pboc policy diversions and a modest weakening of the renminbi. Francine thank you so much for that. Manus here is a look at what else is on our radar this friday morning. Amazon. Com has overtaken walmart is the worlds biggest retailer by market value. That is after the ecommercae shares jumped by 19 in afterhours trading on the back of the surprised secondquarter profit and sales that the estimates. Beat estimates. Revenues rose 23 . A fastgrowing Cloud Computing business and initiatives to more customers. Francine has agreed to merge to coral group. The combined business would be called ladbrokes coral. Manus in the u. S. The government has opened fire on a cinema in louisiana killing two people before shooting himself dead. Between six and eight other people were injured. They know the 58yearold shooters identity but they are not ready to announce that yet. Francine john kerry has defended the accord with iran, telling critics that it is fantasy to think america couldve held up for a better deal. But senator bob quarter think that he had been fleeced. Senator corker im sorry. Not unlike a hotel guest that leaves only with a Hotel Bathrobe on his back, i believe you have been fleeced. Francine more than 50 wto countries will today finalize an agreement to cut tariffs on more than 200 technology projects. The deal would contribute as much as 190 billion to the global economy. Manus and japans biggest Financial News publisher the nikkei, is diversifying with an 844 Million Pound purchase of the Financial Times. The deal does not include the f. T. Group London Property. So, weve, there weo go. Francine nikkei says it will use the f. T. To become more global. It is holding a News Conference now. Manus the nikkei says he wholeheartedly trust the f. T. s management. Take the twitter question. Francine with nikkei buying the f. T. Is a good fit . We are talking about whether they retain their independence or lose talented writers. You can tweet us. Manus upnext a bit more detail on amazons huge secondquarter profits. They were blockbuster after the market close last night. We break it all down straight after this break. Francine welcome back to the pulse, live on bloomberg tv and radio. Manus amazon has become the worlds most viable retailer after reporting surprise Second Quarter profits. The shares jumped 19 . What a barnstorming performance. That could make the Company Worth more than walmart if it continues. Caroline hyde has details. Caroline what a comingofage for ecommerce. On its 20th birthday and its n ow the biggest retailer in the world by market valuation. Surprise profit they posted. That was a birthday cheat they gave to the investors because they do not often give a profit. Jeff bezos always known for reinvesting everything he makes back into the business. On drones, on fulfillment, on content music and video. This time, he saved a little bit for the investors, . 9191 cents a share. Sales up. Shares up as much as 19 . That drove the market capitalization to a cool 267 billion. Now that is bigger than walmart, which is standing at 233 billion. We see if we hold onto that shares by today when they open. It will become the biggest retailer in the world. The reason . The growth drivers. Those prime memberships. They are still managing to lure more people in the u. S. And at a faster pace internationally. People want to their goods next day delivery, even in some cities like london, you can get next hour delivery. This is where they are managing to focus. It is also on their content. They are plowing money into video and music. Prime members become addicted. They are managing a vote of confidence on the ecommerce side of things. Ecommerce is expected to grow 18 this year. Killing it in the cloud. Aws, amazon world services. This is a unit that the finally started to shine a light on. Cloud computing business is raking in the cash. Managing to drive up sales by 18 . All the startups to speak to our being wooed by amazon, even on the pricing, there is so much competition google and microsoft offering cloud. Also, there was that control spending we spoke about. Jeff bezos only trying to see where they are going to invest in content and music and video and in delivery fulfillment. What about a peak though . Could we be too high . Where is the competition . Alibaba are eyeing up the cloud. They might be offering more Cloud Computing. They are setting up data centers in india. That could be an issue. So too, could be the Delivery Services coming from walmart and start up jet. Competition is rife. How will they make sure they remain the number one Retailer Online or offline. And technical indicators. I know you like them. Looking at the relative strength index. The shares are already overbought. 55 growth in shares this year. The technical indicators say they are overbought, yet shares will spike later today. Back to you guys. Francine interesting stuff. Thank you. Caroline with the latest on amazon. Manus later in the program we will look at how amazon is becoming a growing player in the fashion space and taking on the likes of by opening a fashion photography studio. Francine next to our office. Longman plans more job cuts. Manus welcome back to the pulse, live on Bloomberg Television and radio and streaming on your tablet of phone. Francine Anglo American shares rose for the first time after posting betterthanexpected profit. The Company Plans to accelerate cost cuts as Commodity Prices tumble. How surprised were we that today they maintained their did their dividends . Ryan the headline is the company is maintaining its dividend. There was an anticipation they can cut the dividend, and yet they will pay 32 cents per sh are, the same they paid last year. The ceo when he was speaking with Jonathan Ferro did not commit to the fullyear dividend. We have seen a 1. 7 billion drop in prices of our commodities, but at the same time, we have been able to call back 1 billion in operating improvements. We have another six months where we are going to have to work very hard to stay there. So, i would not write a soft yet. Write isus off yet. Ryan they beat on profits. They made more money than people thought. They took in more money when it comes to selling their metals. They took an impairment but less than they flagged to the market. And they are cutting 6000 whitecollar jobs between here and south africa, between london and south africa. They are showing a ruthless penchant for costcutting. It is really about how you manage the downturn as much as the downturn itself. That is what we are seeing. At the end of the day, the prices for the commodities themselves do dictate a lot. If you look at the iron ore price, just above 51 a ton. So, a lot of people out there saying, if the price of iron ore drops below 50, then they will be able to maintain the dividend. Manus the whole language. This is the whole point. We had an analyst talking about the producers and iron ore. The language and the mood has changed. It is about how do you manage the expectations of the investors. But there is one company under pressure. And that is longman. They announced more job cuts on top of 1500 already. Ryan so, they are going to cut a total of 6000 job. Anglo american is also going to cut 6000 jobs but that is out of more than 100,000. A much bigger head for a company like lonmin. Normally when a ceo announce theyre going to cut jobs and governments do not like it. It is good for the share price. Not in the case of lonwim. The two day share price tanked. Thats because these job cuts come at a cost. Effectively reducing output. Not just idling mines. They are closing mines. That means less production of platinum. Platinum is something where we have seen a huge decline in prices 45 over the last year. If you cannot produce as much, maybe youre not worth as much. I think the story at longmin is they are fighting to keep the company sustainable. They are not making a profit right now. They have got to fix that. And a have to figure out how they are going to do that before the next earnings come out. Investors are going to be concerned. Francine this is a company that has been through a lot. Ryan chilcote with the latest on lonmind and Anglo American. Manus up next, find out the turnaround in vodafones European Business has helped the telecoms giant beat on estimates. You flagged the goal. Francine we has an interesting stories about china and the fed and that is affecting commodities. Godlld is now a haven. At its lowest since 2010. Copper extending a slump since 2009. Back in two. Francine welcome back to the pulse, live from london. I am Francine Lacqua. Manus lets get you top headlines. Private gauge of chinese manufacturing has unexpectedly fallen to its lowest in 15 months. The reading for july came in at 48. 2 down from 49. 4 last month. And while below estimates. It reinforces the need for further policy support in an economy that has been showing signs of stabilization. Francine surprise contraction and chinese manufacturing pmi threatens. Copper has slumped to a sixyear low and gold has dropped to its lowest since 2010. Manus angloamerican shares have risen despite the company reporting a 30 cent drop in firsthalf profit. Underlying earnings to 904 million. But the londonbased company has been paying interim dividends at 32 cents. Francine representative of greeces three credit is returned to athens after lawmakers approved a further batch of austerity measures. The imf, the ecb and the European Commission now known as the institutions have not been in town since january when the former finance minister said hesd no longer cooperate. Manus lets get more. Carson, great to have you with us this morning. Ok wehere are we in the great greek saga. We have Christine Lagarde being very clear in what she is saying on the need for debt relief. We know the german position is fairly intractable. How do we ever jumped this rubicon . Everyone i speak to says it carson part of the agenda. We are never going to jump this in one big lead. It is going to remain a very incremental game, because on both sides of the game, and greece in domestic polictics, and other creditor countries, these are hugely toxic issues. The next thing to look at is the 20th of august ecb cbond reduction. That is the next point to watch. But looking at the german position, i would not really expect massive change. Something like lowering Interest Rates, extending maturities, that might be achievable as long as athens delivers on reform. Osi in terms of a real haircut, i do not see that happening. Francine in terms of debt relief, im still trying to get my head around is it now a given or not . I know merkel has a big gamble politically at home. Her finance minister were challenger leadership if she were to get in. When you have Christine Lagarde putting pressure onm merkel, she can only give in. Carsten again, the question is one of definition. What is debt relief . Extending maturities and lowering Interest Rates may be something they can be done but only if athens proves they delivered on reforms. As you said, there is a domestic dimension in german politics and within the cdu, Angela Merkels party. You have a stabilizing effect merkel tends to be more benevolent because she is under pressure from International Players and especially the imf. The participation of the imf is important. The other side is schauble. These two people, none of them can control the cdu on their own. As long as both can stick around, the german position will remain very entrenched. The pressure remains on athens to deliver on reforms first. Manus when is your best Case Scenario for tsipras to call c snap elections . How long can he survive . New democracy says we supported, but if he shows wavering in and limitation, they would yank that support. Carsten we are expecting somewhere around september or october. It depends on how talks with creditors are going. If you look at 20 august, that is the next deadline, the ecb bond redemption. Tsipras will probably want to make sure he consolidates the base with is his own within his own party. Early elections would not be a means to strengthen him visavis the other parties. These parties are in disarray. It is about bolstering support within tsiprass party. It might make sense for him to do that before the numbers start to kick in, in the sense to feel the recessionary impact. So, somewhere around septemberoctober that may be realistic. Francine thank is so much. The Senior Vice President at ten intelligence. Manus recovery in European Business. For more lets bring in our bloomberg intelligence. Aaron, the numbers, the headline numbers are good. Things are improving, we see a headline on Service Revenue. Aaron it looks like there is a continued momentum improvement. The support growth. In this quarter, they consolidated their cable acquisitions in spain and germany. But if you look specifically, while we see improvement in all markets, we see modest worsening in netherlands on higher discounts. And germany has been a problematic country. Their largest business. All of the attention is there. We saw signs of improvement this quarter, but lets not forget that also takes into account the consolidation of the cable business. Francine was i wrong in expecting something about Liberty Global . We can talk about the operation and germany, but actually is vodafone going to have some kind of partnership, going to be eaten up . Aaron i would not be able to speak about the potential of the acquisition, but lets talk at liberty. Their in broadband was lower in the last quarter. So, they are coming to a more agreeable stance with regards to an acquisition. And mobile services is becoming increasingly important. For that reason, they inquired a mobile business in belgium. The reasons for liberty to think about a potential acquisition is increasing. And vodafone has already been has said this acquisition would make sense. Manus whether it is a fullblown takeover or a strategic deal, what is the feeling out there . Theyre out of problems with the merger from controlling issues. And also, you have some markets, no overlaps. Maybe to manage it financially, sa swap strategic assets. Becomes the latest news. We have not heard much from that. But this is the expectation at the moment. Francine thank you so much. Manus upn next spains tourist route. This blows my mind. Should barcelona limit the number of visitors there . The citys mayor thinks it is a good idea. But the tourism minister disagrees. We will hear from him after the break. Francine welcome back to the pulse. Manus one of the worlds most distinctive financial voices is heading for asia. The Financial Times is being bought by japans nikkei group. The nikkei says itll use the f. T. To become more global and boost digital growth. Francine the f. T. Spoke to bloomberg. Nikkei take a longterm view of this investment. They see Growth Potential for the f. T. , in asia and the u. S. I think if you look at the way they operate it if you look at their shareholding structurally, they take a longterm view. I think there is no point in their minds to buying the f. T. To take cost out of it. They want to build the business. Francine lets get more with our bloomberg japan editor. Brian what does the nikkei see to get from this deal . Brian good morning. So, one of the things is the nikkei says it will use the f. T. To become globalm. Omorning edition same. It is not about amazon earnings, chinas economy, greece emerging markets. It is about this deal. So, nikkei clearly has a ways to go to become global. They hope that with the steal not only can they reach a growing audience around the world in english, but they can also do a better job of bringing conditions around the world into the japanese audience at home. Manus culturally of course, this is going to be one of the big issues that comes to the fore in making this deal work. They are two very different cultures. Brian yeah. Extremely so. There is reason to be skeptical. We saw a tweet from a Financial Times journalist this morning. I Wont Disclose his name but it is someone i know from working in japan. The tweet quoted the coe sayeo saying we share the same journalistic standards . The comment was really . There is a lot of doubt about whether the nikkei can leave the f. T. Alone to doing this job. A few years ago when we had the olympus scandal, the f. T. Broke that story. Bloomberg followed sunday. And japanese media did not touch that story for days. The nikkei caught up thursday evening. There is some doubt about whether the nikkei is really committed to hardhitting stories that make advertisers uncomfortable. Francine of course, that press conference. There is a News Conference going on at the moment with the nikkei s ceo, which we are keeping an eye on. Is there an abenomics element to this as well . Brian japan is clearly trying to take a bigger role in global affairs. And in all sectors. Business is expanding overseas. Japan needs new markets. And media is a part of the drive to reach, to bring home information from around the world and help business succeed on a global scale. I think this is a big part, abenomics is a big part of this deal yes. Francine they give so much. Ryan fowler, bloombergs japan managing editor. Manus we have those live pictures from the News Conference. They are saying there will be more frequent exchange of views with the f. T. You and i were talking about some of the tweets. A few raised eyebrows in terms of the culture and sharing the same views. Putting a deal together is about keeping people in place to do the things within a company. That will be the challenge. Francine as soon as theres turmoil in any company, you feel there is turmoil, then you have to make sure you retain your most talented people. Be they journalist or investment bankers. Here are some more of bloombergs top headlines. Manus the imf warned japan that its debt could search to three times gdp by 2030 if the government is not doing spending under control. The fund says the countrys current levels are unsustainable and the bank of japan should be ready to increase stimulus and provide stronger guidance to markets if needed. Francine the outgoing fifa president has flown to st. Petersburg to attend the draw for the 2018 world cup. It is his first overseas trip since they arrested several senior football executives heard it left him unwilling to leave switzerland. He has not been accused of any wrongdoing but the investigations into corruption in the footballs world governing body, brought to him to announce his resignation. Although he did say he would step down in december this year. Manus absolutely. The most interesting stories as we go to the latter part of the year. Nasa. Theyve discovered a new planet. Most similar to earth. Francine im obsessed with this story. Manus ok, its about 1400 light years away. And its orbiting a star remarkably like the sun. It takes 385 days to travel around its star. That means conditions are potentially there for water and even life. It was spotted by the nasas space telescope which is find found 5000 planets beyond our galaxy. Francine the country should be focusing on building its habitation as a holiday destination instead. Building its repetition. We have a record with 65 million tourists coming to spain who made it a global tourist expense of 63 billion euros. So, its really important. To establish any limitations would be coming off tourism in spain should sound like, for example, to establish any limitations for the production of cars in germany. Manus now, the spanish tourism minister spoke to maria. She joins us from madrid. Good day to you. Strang s spains on track for a record year of tourism. Where has this thinking come from . Maria as you just mentioned spain is on track for a record year. 68 Million People are expected to arrive in spain. But there had been speculation up to the mayor of barcelona said she could introduce limits to and limit the number of people who arrive in barcelona. She said there are too many people. The minister was very clear. He said there are going to be no limitations. The Central Government is prepared to do what it takes to protect the industry. It accounts for 11 of gdp. As you heard in that clip hes read spain to cut tourist would be like germany cutting back on the number of cars they make. It is off the table for him. Francine and barcelona has frozen hotel licenses this year. What does it mean for the sector . Maria she has done that for this year, which means will not give new licenses. We will not see new hotels open. But we spoke to her team yesterday. They insist this kobe in place for one year. They will not extend it. They insist this will only be in place for one year. She was sending the wrong impression. He was hoping it would not be extended. Francine think you so much. Manus ok, up next, amazon has fashion in its focus as it opens a new photography studio in east london near to our offices. But can it help the retail giant take on the likes of azos . Francine welcome back to the pulse live on bloomberg tv and radio. Manus as we heard earlier, amazon reported surprised secondquarter profits that sent stock prices soaring. Amazon is growing player in the fashion space. Francine it certainly is. Now it is opening a multiMillion Pound fashion photography studio taking on the life of asos and neta porter. How does it stack up against the competition . Tom amazon is a growing player in the fashion space. It sold 30 million fashion products in the First Quarter alone. Now in the process of opening up this multiMillion Pound fashion photography studio where each item will be photographed before being displayed on the website. The question is whether amazon has the cool factor and the brand loyalty to take on the likes of asos. You want to show me around . Tell me about this space. So, this space is our editorial space. This is where we create all the information our customers can access to get more information about the latest fashion trends. Or we can do our advertising publicity. We did a photo shoot here. Tom how much is amazon invested . Its a multimillion investment. Im afraid tom some would not associate amazon with fashion, even though you have been doing it since 2002. Is that part of the challenge getting the message out . Today, we have tens of millions of customers shopping on amazon fashion. During the Second Quarter this year, we saw him we sold more than 30 million patients at pieces of fashion. Customers already appreciate the service we offer. The range, the price. We know it is a hugely competitive space and online retail. It will be a tough fight against the likes of asos and neta porter. We dont really look at competitors. What we try to do is understand what our customers want and give them what they want. We give them great products. We give them great services. We want to give them great quality of content and give them great prices. Tom the outfit you are wearing today, which items have come from amazon . All of them, actually. A jacket. A lacoste shirt. New balance shoes. My underwear is calvin klein. Francine there you go. Manus everything you need to. Francine what he wears. For those listening on Bloomberg Radio the first word is next. Manus absolutely. What have we got in the next hour . People keep an eye on china. Any more signs of weakness . What does it mean for the future of the Worlds Largest economy . We have to woman of tthe hour. Francine joining us to talk about the deal and pearsons latest Earnings Report is the former chief media correspondent at the f. T. Keep it right here. This is the nikkei presser going on in tokyo. The question people want to know is basically whether the f. T. Can retain independence. We had our own managing editor saying, nikkei in the past has not been i guess that hungry for breaking news. Manus will they cover the big stories that they manage not to cover so well in the past . That is our twitter question of the day. Nikkei buys the f. T. Is it a good fit. Thats the debate of the day. Manus chinas manufacturing missed. It drops to a 15month low as the worlds second largest economy slows. The commodity continues. Francine amazon aces its latest reports, sending shares surging and taking the online giant past walmart as the Worlds Largest retailer in terms of market cap. Manus and mining misery. More job cuts, Anglo Americans posts a 30 drop in profits. Manus good morning to our viewers in europe. Good evening to those of new asia, and welcome to those waking up in the United States. Im manny cranny. Francine and im Francine Lacqua live from london. Manus choin ease manufacturing has fall tonight lowest levels in 15 months. Preliminary p. M. I. Is at 48. 2, well below the estimates. Asia stocks slipped, closing the trading week with losses. Data is also putting pressure on currencies. Lets bring in kevin from our beijing office to talk this through. Kevin, whats the latest p. M. I. . We have g. D. P. Of 7 in the Second Quarter so is that just talk . Kevin this particular p. M. I. Is a gauge of small, private companies mostly that are exporting, and theyre facing weak demand from the e. U. And emerging markets especially. So, you know that part of the economy is really struggling, and thats what this particular measure shows. And on the other hand, the state sector is also very important, and its been benefiting a lot more from all the support measures that have been written up by the government in recent months, include Interest Rate cuts and so on, and so probably, you know, overall the economy is doing a little bit better than this particular measure shows. Francine the stock market slump, the huge slump we see, does it have an impact on this reading as well . Kevin yeah, i think probably so, and the Second Quarter got the big boom in the stock market helped and this growth a little bit and probably masked some underlying weaknesses in the economy at that time. Now were seeing what the economy is like without the steroids of the stock boom, and i think the way it works is that lots of these small companies, they got a boost in the Second Quarter and their confidence was high. Now theyve probably taken a bit of a hit, and thats affected their confidence and their outlook. Manus kevin, thank you very much for wrapping up the data. Kevin ham lynn in beijing. Francine lets get more. Whats going on in china . First of all you have this huge, huge market round, and weve been trying to explain that explain really the truth behind it, but is it a growth problem and are we not seeing it yet . Its a problem, and its a big growth problem. Among all our asian economies on our analysis, china is looking the most stressed. Every indicator is showing that china has entered the phase of the business cycle. If you look at the investment cycle, its in down turn. In the coming years, we expect the investment of g. D. P. Ratio to fall. And on the back of that, were looking at 3 to 5 growth the next few years. The only reason were not looking at an outright contraction is theres growth in the services sector. Theres no doubt that this economy, led by the productive sectors, is in down turn and this is also confirmed by the profit data. Manus youre using the word bust. Were entering a bust phase in china. Youre talking 3 to 4 growth. Thats a number of rate cuts. What do they need . Thats not going save the bust phase, is it . Were expecting Interest Rates to come down further, but i would suggest that the market every time they cut rates wow, you know, this is great news im worried seeing a rate cut, because to me its like, wow, things must be really bad that they cut rates. Theyre cutting rates not to reignite the credit cycle, they are trying to cut rates to take some of the alleviate some of the pressure off the sectors of the economy. If you at the latest july totals funding measures, which is a measure of new credit its down 27 year on year. Theyre cutting policy rates but the commercial banks are not passing on those rate cuts to borrowers. Francine youre actually right. We saw them the last couple of weeks, a little bit of desperation. Does it mean that the growth invite 3 . When you talk about bust, how much is there a difference between what we think or the numbers weve been told and what is actually going on in the real chinese economy . Youre going get 7 growth either which way. Francine so thats not bad. But as an investor, are you going to invest on 7 or whats going on with the real economy and on the back of it on real corporate Earnings Growth . Thats what drives evaluation. If you look at every indicator of the real economy, and you can look at a large proxy of them, including things as far astray as korean and taiwanese exports, every domestic indicator is showing that that economy is slowing very quickly. Francine from 7 now to 5 . What are we actually looking at . We reckon the economy is already growing at 5 . Francine 5 . Yeah, and its just at the early stages of the deleveraging cycle, and, you know, the next two, three years, if they grow by 3 to 5 , thats rather good. Manus we are where in the commodity story . Are commodity indexes going to be averaging since 200 , the Global Implications for commodities and economies, what do you think . Were short commodities, and we are short on countries that have which are commodities exportdriven, and that have been massive beneficiaries of the China Investment bubble. And, you know, looking at asia, were short australia, and its exactly for the reason you mentioned, the commodity story is just not looking good. Francine how much more of a commodity rout . I mean, youre saying that growth targeted is actually smoke and mirrors, if theyre now growing at 5 and are going to grow the next coming years, it means what were going to see in the commodities is going to get a whole lot worse. Im not a commodities expert, but i agree with what you say. You know, if we are right in what were saying, the china demand is not going to come back, if anything, its going to worsen, plus the chinese are going to dump on the market it stands to reason the commodity story is going to get worse before it gets better, especially if q. E. Has ended. Theres less lick i had to support market. Manus weve got brent oil falling to 55 for the First Time Since april, which, again, sort of ties in the overall concern, but thats a supply story. One article that was mentioned this morning is the ability of the chinese to look at the currency. Theres a couple of notes that they may widen the band width you want to trade from 2 to 3 . Is the currency part of trying to stabilize this growth story . Because my understanding was that they protected the currency quite a lot in the first six months. Thats a really good question, manus, because the related questions is options right now. Interest rates they dont want to really reignite the credit cycle, and theyre not doing that. Fiscal, they got away with it, but do they really want to do that . That leaves the currency. I would suggest that what is warranted is a large one of devaluation to reset the currency. Because if you look at the yuan effective Exchange Rate, its been shooting up. To reset it against the dollar, the yen and euro, and also do a oneoff deevaluation, because that also locks in the retail investors, would they really consider that . Thats the Million Dollar question, because with it coming up in october i think this is what they should do. I think one has to keep an eye on what happens in october. Do they have to push for it . With that, more capital account opening, which is the last thing they need right now. Frape thank you so much for all of that. Manus heres a look at what else is on our radar this friday morning. Amazon. Com has overtaken walmart as the worlds biggest retailer by market value. Thats after the ecommerce giant jumped as much as 19 in afterhours trading. That was on the back of a surprise Second Quarter profit and sales that beat analyst estimates. Revenues rose 20 for the period to 22. 3 billion, held by fastgrowing computing business and initiatives to lure more customers. Francine lab works is the world as biggest bet shop chain. The combined business will become ladbrokes coral. Manus in the United States, gunmen have opened fire on a cinema in southwest louisiana killing two people before shooting himself dead. Between six and eight other people were injured. Police say they knew the 58yearold shooters identity, but are not releasing it. Francine the u. S. Secretary of state, john kerry, has told critics its fantasy to think america could have held out for a better deal with iran. But republican senator corker said he thought mr. Kerry had been sweet. From my perspective, mr. Secretary, im sorry. Not unlike a hotel guest that leaves only with a Hotel Bath Robe on its back, i believe youve been fleeced. Manus more than 50 World Trade Organization countries will finalize an accord to cut tariffs on more than 200 technology products. The deal could tribute as much as 190 billion to the global economy, according to the office of the u. S. Trade representatives. Francine and neck see diversifying outside its home market with a 844 Million Pound purchase of the f. T. The deal does not include f. T. Groups London Property or pearsons 50 stake in the economist group. Nikkei says it will future the f. T. To become more global and boost its digital growth. Manus that brings us very nicely to our twitter question of the day. There you go. The nikkei buys f. T. , a good fight, and you can come at it from every direction, culturally financially, economically. We cover a broad church here on the pulse. Francine up next, more details on amazons huge Second Quarter profits that has helped propel it past walmart as the Worlds Largest retailer in terms of market cap. Manus amazon has become the worlds most valuable retailer by market cap after reporting a surprise Second Quarter profit. The shares jumped by 19 . That was an afterhours trading. It could make the Company Worth more than walmart. Theres one view from the touch screen. Caroline indeed, and what a coming of age, manus, for ecommerce. After 20 years in existence, amazon is now the biggest retailer in the world. It is exceeding the offline on the high street, and is now powering through with just online. The price profit also a bump for the Investor Base on their 20th birthday, because for their Second Quarter we get a profit. You dont get them that often when it comes to amazon, because jeff bezos plows every bit of money he makes back into the business. But this time there was a cheeky profit, to which everyones surprise, and sales have surpassed expectations, up 20 . Amazon is just amazing the Investor Base to such an extent that we saw shares spike 19 after hours f. They hold on to those gains, we will see the market value eclipse that of walmart. We will shoot over the 267 billion valuation. Clearly this is a coming of age, and what is driving this power house in terms of the shares . Well, it is ecommerce. We know its growing more than offline at the moment. That is globally. So theyre touching into that. They are making sure that everyone is getting addicted to amazon, using prime membership. Prime data just celebrated their birthday, and they managed to sell more than they do on black friday. Clearly that was a winning touch. Theyre managing to get people more addicted to amazon prime, both u. S. And internationally. In fact, they say amazon prime is growing faster internationally. At the moment they get about 2 3 of their sales from the u. S. And 1 3 from international, but now theyre raking it from abroad as well. Sameday delivery is what everyone wants, but also remember they have us on video, wanting us to listen to music. This is where theyre really starting to invest, and the investments are paying off. Its also all about Cloud Computing. This has been the theme of the week. This has been what has separated the weak from the chaff, the likes of i. B. M. Versus microsoft, those that have really shown through the clouds. Thats been the silver lining. Amazon web services now raking it in. They saw more than 80 growth in this unit of the business. Theyre shining a light on it. Theyre spinning out the numbers and showing it up to investors, and that is like what they see. They like this diversification in the business for amazon. It was the controlled spending that helped as well, what the c. E. O. Claimed. Theyre going to focus on the delivery element of themselves and the content. That is where investment will go in the next few quarters. But it comes to an end. Could we see it peak . Alibaba investing itself in Cloud Computing. This is the ecommerce giant in china. This is a competitor to amazon. They, too, are getting into Cloud Computing. Could that be weighing in on competition . Walmart is doing its own. Youve got a launch in the United States coosm they get under pressure when it comes to delivery as well . And noticeably, i know you look the technical indicator, just think about the strength index. This signals whether a stock is overbought or oversold. I checked in, its already thought to be overbought. Shares are thought to be too high. Theyre up 55 so far this year. Just think if they escalate by another 19 today what those technical indicators will be telling people. Will they be saying take profit . But at the moment, were expecting a huge pop to the share price coming up. Back to you. Francine thank you so much, caroline hyde, with the very latest on amazon. Later, well look at how amazon is becoming a growing player in the fashion space and looking to take on others by opening a multiMillion Pound fashion photography studio right near london. Manus coming up next job cuts and the american posted a 30 drop in profits. The dividend is safe for now. Manus welcome back to the pulse, streaming on your ipad and bloomberg. Com. Miners are in focus the whole way through. Anglo american shares rose for the first time in six days. That was after reporting better than expected profit. The companys c. E. O. Promised to cut costs. That was as Commodity Prices are tumbling. Ryan joins us now much thats the understatement of the day. Commodities are back at levels we havent seen since 200. These guys are selling assets. What do you make of the numbers . Ryan this is all about whether the dividend was going to remain, and it is. The expectation was it was going to be cut, and yet investors are going to get 32 cents a share, the very cut they were counting on last year. The c. E. O. , when we talked to him, didnt commit to the next dividend, the fullyear dividend. Have a listen. Weve seen a 1. 7 billion drop in process of our commodities, but at the same time, weve been able to crawl back a billion dollars in costs and operating improvement. So weve still got another six months where we have to work very very hard to stay there. So i wouldnt write this off yet. Ryan commodity profits matter. Its about how you manage the down turn. The company beat on profits. They beat on sales. The impairment had already been flagged. Theres ruthless cost cutting going on, about 6,000 white collar jobs will go by next year. Basically if they cant figure out exactly how youre contributing to the companys bottom line, our in danger. Thats one of the reasons why theyre outperforming today. Francine what about long men . Ryan perhaps surprisingly the share price plummets. Look at twoday. Shares are down by almost 10 . This company isnt just idling production, theyre closing down some of their mines. Theyre going to lose out on production altogether. Theyre not making money on a pretax basis right now. Theyre reducing output. And theres an issue really of the sustainability of the business. I think a lot of investors, until that gets resolved, until they understand how the company is going to make money in this environment, or at least lose less, are going to be very, very leery of anything having to do with the shares. Manus ryan, thank you. Were keeping an eye on them, but were kicking it off with gold, because thats something which is certainly under pressure and is coming back to levels you can see now, down over 1 over the past two days. Weve had everything this week. You have Morgan Stanley at 800. Theyre all shutting. Theres the longer term chart, so its three months, bought is the commodities. Francine i always put gold of course its in a different category because of the expectation of the Interest Rate rise. Yeah, youre absolutely right. I mean it could go a lot lower, but instead of concerns about china and the world economy, thats almost a pure dollar play, right . Manus they say you got to be lower for longer, and i wonder what kind of Sanford Bernstein said for copper. Sanford bernstein here, they said 10,000 for copper over the next five years. I know i know, he said thats the catchy headline. Goldman is saying it by 2020. Francine ryan thank you. Up next, find out how a turnaround in vodafones European Business has helped the hell he come giant to beat revenue estimates. Francine welcome back to the pulse live from london. Im tran seen lacqua. Manus and im manus cranny. A private gauge of chinese manufacturing falling as hsbc has unexpectedly fallen to its lowest in 15 months. The reading for july came in at 48. 2, down from 49. 4 last month, and well below estimates t. Reinforces the need for further policy support in an economy that had seen signs of stabilization recently. Francine the surprise contraction of the chinese manufacturing p. M. I. Threatens to worsen the rout in global Commodity Prices. U. S. Oil has slipped into a bear market. Copper has slumped to a sixyear low, and gold has droppeded to lowest since 2010. Manus representatives of growths three main creditors are in athens today after lawmakers approved a further batch of austerity measures. Previously known as the troika havent been there since january of this year. That is when the former finance minister said he no longer cooperate with them. Jonathan a busy morning near europe. We just roll over if you look at the dax we were higher. Were now down. Were in the red by about. 10 remember losses in spain on the periphery, but only just. Gains on the ftse, and were in the green here in london on the ftse 100, up by a tenth of 1 . That pretty much is down to vodafone. Thats the biggest gain other the ftse 100 this morning. Service revenue beating estimates. Numbers looking good for vodafone. The dominant story all week, though, has been in the commodity market, and you see it here. W. T. I. , this is the 12month the yeartodate chart rolling over, back into a bear market below 50 a barrel. The brent contract south of 55 this morning for the First Time Since april. Oil getting hit. The metals getting hit as well. Copper down by 16. 5 year to date. This morning trading in at 2009 low. Copper getting beaten up as well. Its down to a 200 low. The mining index up today, but over the last five trading days down over 6 , head for the worst week since 2015. Anglo is high they are morning, mainly because the Company Maintains the dividend. I spoke to the c. E. O. Of Anglo American, and he said its a tough year ahead. No one would disagree with that. When you look at the data, you look at the commodity markets, look at the p. M. I. Data coming out of china, a private gauge of manufacturing slipping to a 15month low its not all about supply. Concerns feeding into the commodity market. A big day for data, not just china p. M. I. , but right here in europe, disappointment if you look at the data out of france and italy. Ill bring you the chart up. Euro weakness, were 10 below that at 109. 43, down by a third of 1 against the dollar. More disappointing data out of europe, started the year so well. What will it look like . A lot of people say we could get a slowdown. Back to you. Francine surveillance from tom keene is coming up. I know youre looking at amazon, maybe some of the media stocks on the back of the story and the commodities. Tom commodities will be front and center, and theyve got to be as john just said, the convexity or acceleration are really interesting. Bart will join us about the next margin call. He has experience at this with the cftc. And well speak about the time you had a busted futures trade and somebody calls up and say we need money to keep the trade going. That is ugly and maybe a little bit of that is out there into the weekend. James will join us, and well turn our attention here to whats going on with nato. We talk about turkey allowing jets to attack isis from turkey. Well look at john kerrys visit to capitol hill yesterday. Richard will join us as we get ready for a busy week of fed action. Manus tom, how you doing . The one thing were trying to debate here is china and really the reality, the real level of whats going on there, because that has a global impact. One guest earlier said were in a bust phase in china. Tom well, im not going to go there, but one of the china watchers was with us yesterday, and he was adamant, both on camera and off camera that 7 growth is a true fiction, that was his word. He says it could be as much as half that or 3. 5 . I have to stress, is china in recession . He wouldnt go that far. Francine tom, thanks so much, surveillance in 25 minutes from now. Manus vodafone beat estimates. That was this morning. Recovery in European Business, for more, we brought in frp what did you make of the numbers . It definitely reflects momentum, when we look at europe, theres no growth. The Service Revenue declined but there were previous quotas. There were businesses in germany and spain, but we also see higher starting to monetize Capital Spending which is one of the highest in europe, and as well as strategy. Are those stabilizing . No, it is difficult to tell from the last numbers, because as you say, the last data cable business, what we saw in the previous quarter was a decline. And now we see a slight improvement, and we will see whether this is driven by the high conservation by the Cable Company or by implementing mobile sector. Manus thank you very much for joining us this morning on the vodafone story. Francine up next spains tourist route, barcelona, limits a number of visitors there. The city as mayor thinks they disagree. We hear from him after the break. Taking a longterm view of this project. They see significant Growth Potential for the f. T. , particularly asia and the u. S. And i think if you look at the way they operate and if you look at their Share Holding structure, they take a longterm view and i think theres no point in their mind to take cost down. They want to build the business and grow the revenue. Francine that was the Financial Times c. E. O. Following the announcement of the sale to the f. T. Group assuring readers and employees that nikkei is focused on the longterm view and International Expansion for the paper. Joining us now is the former chief media correspondent for the Financial Times and current head of creative practice, ben fenton. Great to have out program. What was your initial reaction when you heard the news . Ben in my professional capacity now, ive actually worked with nikkei a bit. I was delighted for my colleagues at the f. T. , because compared with some of the outcomes they were facing including probably staying with pearson, i think this is good. You know john is convinced that nikkei wants to invest in the future and i certainly cant see any reason why they wouldnt. Theyve got the money to do so. Theyve got a history of investing in journalist. I think the staff levels have paid the money are considerably higher and even the many u. S. Titles. So, yeah, i was confident that it was going to be good news. I know people have raised other issues but the reason i assume theyre buying the f. T. Is to put them on a global scale, so they know perfectly well theyve got to behave in a way in relation to the f. T. That the fit is that status. Manus what did the f. T. Get out of this in terms of where is it going to get the most resources, the paper, ft. Com, how to expand it out . Where do you see nikkei focusing their attentions within the family . Ben they arent terrifically digital, so knowing theyll certainly be looking to learn something from the f. T. In terms of handling digital and handling pay walls and so on, because theyre a big Success Story in that area. The proportion of f. T. Subscribers in digital is getting on to 70 now, and i think for the nikkei i think its more like 16 . Id be surprised if they didnt continue that investment. I mean i think in the medium term, anyone who invested in the Financial Times would be looking to cut back on print in the medium to long term, so maybe over a seven to 10year time scale. Youd see them scaling back from six day a week production to maybe two or one at some point. But i dont see areas youd to want scrap the weekend f. T. , thousand spend it, a cash cow, it gives you a tremendous foot hold in luxury brand advertising. Francine do you believe nikkei when they say that they want to control the newspapers finances or compromise its editorial independence . You were saying theres a lot of good voices, but for example when one scandal broke nikkei was very slow in reporting scandals within japan. Other writers must be thinking what does it mean in terms of our editorial independence . Ben absolutely. Im sure they are thinking that. Thained nikkei has given a press conference in the last hour, and i did not see it myself, but i believe talking to a friend at the f. T. In the last few minutes, that they did address particularly the olympus issue. I cant tell you precise what will they said because id probably be misreporting it, but i believe theyve addressed the issue. Nikkei, theyve been around a long time. Theyve been around longer than the f. T. They know what is a good way to treat an asset, especially a jewel of an asset like the f. T. , and the amount of money they paid for it. Pearson got a fantastic price. They arent going to mess around with one of its unique selling points, which is independence. They would be selling to do that. One thing i know is theyre far from silly. Generally i think with nikkei, i think its fair enough. In the context of how they cover Japanese Companies themselves, i dont think that its a logical step to say, well, they arent going to apply that to the f. T. So the proof in the pudding will be in the eating, but myself, im confident that it will be ok for the f. T. Manus i admire your confidence. I was looking at tweets from some of the employees within the f. T. And some of the reporters. Some of them were very entertaining, to say the least. And then the nikkei, we share the same journalistic views, sfleal my question to you is youve said youve spoke ton some of the people inside the f. T. What are the off the record comments in terms of the responses to their new owners . You say this is the least worst option. I suppose it could have been somebody like springer, for example. What has the response been from the people youve spoken to . Ben generally they didnt know much about nikkei, and i dont think many people thought about them at all in this context before yesterday, and i had some inkling they might have been thinking about an approach. But that was just because i know from conversations with people where weve worked with them before that they really admire the f. T. So if it was true as you broke the story earlier that pearson were considering the sale of the f. T. In a very serious way, then you know, i thought nikkei would be part of it. So i dont think many people knew anything about them so it was kind of head scratching. I know there was a lot of concern about what change of ownership would mean for those who are on final salary pension schemes. That concern as far as i can tell has been allayed by the actions of pearson to pout 90 million cash into the pension fund. Generally i think people have had a chance to consider it. Im sure they know the operations far better than i do, and i would challenge his views. All i can say is my experience and it works with nikkei in tokyo, in our tokyo office, and my experience has been they are always very straight up. Like i say, i think from a business proposition, if you just bought an asset where its unique independence, impartiality neutrality, the fact that people who write for it never have to worry about what their proprietor thinks, and i can tell you, having covered pearsons annual results that that is absolutely true then you know, i think that nikkei would be crazy to among around with that. And i dont see any reason why they would. Theyre solid Business People who have been operating pretty profitably for a number of years. Francine thank you so much, ben fenton joining us from london. Hes actually right, it was a bloomberg scoop at the beginning of the week saying that it was for sale, and at the time people thought, oh, yeah, maybe, maybe not. Matt campbell was proven right. Manus he is a great reporter, well done. Ok lets get up to speed with some of the headlines. The i. M. F. Has warned japan that its debt could surge to almost three times g. D. P. Thats by 2030. Thats if the government doesnt lower the budget and bring spending under control. The countrys current levels of debt are unsustainable, and the bank of japan should be ready to increase stimulus and provide stronger guidance from the markets if needed. Francine the outgoing president has gone to fifa. Its his first overseas trip since the arrests of several senior soccer executives left him unwilling to leave switzerland. Hes not been indicted or accused of wrongdoing but the investigations into corruption at footballs world governing body prompted him to announce his resignation as president just days after being reelected. Manus and nasa says it discovered a planet that thats most similar yet to earth. Its about 11400 light years away and is orbiting a star remarkably like the sun t. Takes 385 days to travel around its star, and its probably the same distance away as we are from mars. That means the conditions are potentially there for water and even life. It was spotted by nasas space telescope, which has found about 5,000 planets beyond our solar system. Lets shift our attention now to spain. Tourism minister has rejected the suggestion from the mayor of barcelona to limit the number of visitors. Yes, to limit the number of visitors. You heard it here. They say the country should be focusing on building its reputation as a holiday destination instead. Weve got a record with the 65 million Tourism International tourists coming to spain who made a global. So its really important. It should sound like for example, to establish production of cars in germany. Manus spanish tourism minister spoke to our correspondent. Maria, very good morning to you. I mean, they had a record year for tourism. Weve had problems in greece. Spain is picking up a few lateminute bookings from that. But where is it going in terms half drid and barcelona wanting to limit the tourist numbers . I mean, is it madness . Maria as you just mentioned, tourism is a crucial industry for spain. It accounts for 11 of g. D. P. , provides a lot of jobbeds, and its yet another record year. But youre right. Madrid and barcelona have said they could put in place some limitations as to the amount of people that could visit. But the minister was very clear about this. He said that there are going to be no limitations. Thats off the table. In fact, in that clip that we just saw he said for a country like spain, when tourism is so important, limiting the number of tourists would be like germany limiting the number of cars they make. Instead, they should really focus on protecting its reputation. Francine barcelona has also frozen hotel licenses for this year. What does it mean for the sector . Maria the mayor has turned into a politician, and its correct. Shes frozen the hotel licenses, which means were not going to see any hotels open this year. But weve spoken to her team, and this is not going to be extended. Its just going to be put in place for one year. But again, the minister was very critical. He said she had taken the wrong decision and she was sending the wrong message to investors. Manus thank you very much for giving us the lowdown on the tourism there. Francine amazon has record a surprise Second Quarter profit. But amazon is also a growing player in the fashion space, selling 30 million fashion products in europe in the First Quarter of 2015. Manus theyre taking on the likes of a fashion photography studio. But how does it stack up in terms of competition . Bloombergs tom mckenzie went to have a look. Tom amazon is a growing player in the fashion space. It sold 30 million fashion products in europe in the First Quarter alone, and now its in the process of opening up this multiMillion Pound fashion photography studio, where each item will be photographed before being displayed on the website. The question is whether amazon has the cool factor and the brand loyalty to take on the likes of others. Nice to meet you. Want to show me around . Tell me about this space here. What happens here . So this space is our editorial space. This is where we create all the information that our customers can access to get more information about the latest fashion trends, where we can do also our advertising photography. We recently did a photo shoot here with suki waterhouse, our brand ambassador. Tom how much is amazon invested in this space . Sergio its a multiMillion Dollar brand for us. Some may not associate amazon with fashion, even though youve been doing it since 2002. Is that part of a challenge as well getting the message out . Sergio today we have tens of millions of shoppers, just to give you an idea during the Second Quarter of this year alone, we saw more than 30 million pieces of fashion. I would say that customers already appreciate the service we operate. Tom we know its a competitive space, online retail. Its going to be a really tough fight against others. Sergio we dont really look at our competitors. What we try to do is understand what our customers want and give them what they want. We give them great products. We give them great services. We want to give them great quality of content, and we want to give them great prices. Tom i have to ask. The outfit youre wearing today, which items have come from amazon . Sergio all of them, actually. This is a Tommy Hilfiger jacket. I have a lacoste dirt dockers trousers, and new balance shoes, and my underwear is calvin klein. [laughter] manus everything you need to know. Were not going to go there so you know. Francine all right, i always wanted to find out what big executives wear as underpants. Now for a look at what were watching the rest of the day, were joined by look, lets have a roundup of whats going on, because starting tomorrow, greece and its International Creditors continue talks on a Third Program with an obvious second deadline. Manus and theyre hosted in athens. As you remember, we kick it on then tuesday, the fomc holds a twoday meeting in washington to set monetary policy. Most economists are expecting a hike in september. The debate is between september and december. Will they or wont they . Francine on wednesday, microsoft releases the latest version of its Flagship Operating system windows 10. Were also keep our eye on earnings from twitter and facebook. Manus that wraps up the week. It was all looking very relaxed yesterday. How was he . Francine well, the share price is up 7. 7 on the day. I guess you can be pretty relaxed. Thats it for the pulse. Keep it right here. Our twitter question of the day is whether the f. T. And nikkei, whether its a good fit. We can also talk commodities. We have pleasant toy talk about, Interest Rates, commodities, amazon. I love these amazon figures. When you actually compare them with walmart amazon has a bigger market cap. But in terms of revenue walmart still dwarfs amazon because it has five times the revenue of amazon. Manus exactly. The concern is stopping spending money and actually concerned about the other shareholders. But next week is going to be a big, big week. Im off. You can drive the bus. Francine ill drive the bus. Ill drive something. Stay tuned for surveillance. Theyre coming up next live from new york. This is bloomberg surveillance tom gold continues to plunge. When do the margin call start . Secretary kerry and republicans battle over a unicorn arrangement, a complete capitulation of iran. In this hour, americas future and foreign policy. Amazon controls the destiny of retail america. Good morning. This is bloomberg surveillance vonnie quinn and michael mckee. Amazon just turned on the profits. Michael 0. 004 went to revenue. And that is a big deal. Tom was it 18 . Vonnie the stock tom he nailed it yesterday. Again we will have some on amazon through all of our surveillance hours this morning at right now, very interesting set of friday top headlines. Here is vonnie quinn pit von