Transcripts For BLOOMBERG The Pulse 20240622

Francine welcome to the pulse , l ive in london. Im francine lacqua. Coming up later in the program we speak exclusively to the zalando managing director rubin ritter as his company beat secondquarter sales estimates. Francine after that, we will speak to the rwe chief finance officer. Make sure you stay tuned for both these interviews. Manus a rare briefing has been held in china. As the central bank worst to restore calm following the devaluation of the yuan. Francine the currency experience its worst loss in two decades as the peoples bank of china says it would intervene. The Deputy Governor also in charge of the foreignexchange told the media respects the market, fear the market. He did not mention intervene the market. That is probably what he was thinking in the back of his mind. Manus indeed. And try to get some sort of market context. Class test. Lets talk to mark. Weve seen a little bit of a bounceback. Mark lets start with the dollaryuan. This is whatever one has been focused on. This is an intraday chrt. The chart. The dollar is up by. 3 . The gains in the dollar against the yuan are abating. he yuan was down as. 9 against the dollar. The dollar is up as. 3 . We have had a two day 2. 75 percent in the yuan, the biggest move since 1990 four. Yesterday slide was tempered by what some people familiar with the matter say was pboc intervention. The central bank intervened yesterday . Did the central bank buy . Did it sell dollars . Todays intervention was verbal with the central bank saying that is no basis for depreciation to persist. It will step in to control large fluctuations. The pboc seemingly drawing this line in the sand, according to a strategist at Standard Chartered in shanghai. So, the size of the decline in the yuan seems to be abating. What about the movement in a sian currencies . I was telling you about the Jpmorgan Asia dollar index. This measures the dollar against 10 asian counterparts. Yes, it continues to fall today. Yes, by. 2 . Yes, it is at its lowest level since 2009, but the slide is abating. As the yuan slide is abating. Of 1. 8 through wednesday was the biggest since 2011. Still, this index is at its lowest since 2009, but the decline, as the yuans decline, is abating. Very quickly want to show you the dollar against the south korean won. This is another currency that has moved wildly in the wake of this china devaluation. South koreans won today rising the most since 2011. This is fascinating. This is dollar won. The dollar falling. The korean won rising, the most since 2011 after the central bank kept Interest Rates at a record low and chinas currency site slide show signs of abating. The bank of korea says it will closely watch the impact of the yuan on the countrys exports and capital flows. But thats the impact of todays move in the markets. Francine lets get more with bloombergs enda in hong kong. In unusual move by the pboc. We are hearing from advisor saying that china still has room to influence the yuan. Nda we are getting something from the pboc. What theyre trying to do is manage expectations and not let the market believe they are going to, let the yuan go into freefall. But they will be there to intervene during times of extreme volatility, they will step in. That seems to be their message, the signal. They have not stated a red line or a target for the currency, but they want the market to know they are on the sidelines if needed. So, i think that is what the general gist of how people interpret it their Statement Today. Manus and everybodys trying to get to grips with how Much Movement the chinese want to see. Do they want to do it incrementally . This is essentially a managed devaluation. Is that a fair way to put it . Do we expected to go much weaker, 10 that some people are talking about . Some respects, we just dont know. It is a day by day process. We have not had exquisite guidance from the central bank. You might argue that Central Banks do not give explicit guidance but we do not know what the strategy is, either. All we do know is they are willing to give markets the greater hand and setting the valuation but they are not stepping away completely. Place. Is still in the intervened yesterday. They made remarks that seem to signal depreciation will not go on forever, or perhaps not even much further. We just dont know. We will have to watch over the days ahead. So i still say there is a lot of clarity absent from this debate. Francine what about the rest of asia . We saw some of the currency moves. Have they been talking about it much . Enda its obviously a huge issue here. Manyve not seen too exquisite responses, other than vietnam which widen their trading band. If you look at other Central Banks korea had its Rate Decision today. Their economies under pressure, their exports under pressure. But they did not cut rates. In fact, they did not signal there to, either. Malaysia whose currency is under pressure. Their Central Bank Governors said that they expect gdp to be on track. They have no plans to introduce capital controls. Right now policymakers seem relatively calm. But we are going to have to see how it plays out, and how far china takes the devaluation. Manus thank you very much. In hong kong. Joining us to give some context is the ceo and managing director. Elcome to the pulse. ecig and mediumterm, what china is doing is a good thing. Isnt managed you say in the mediumterm, what china doing what china is doing is a good thing. Is showing us that we are all testing the new regime. It appears to be a managed flow. Directed towards more liberal currency. And ultimately of the market forces. When you say market forces. They were not expecting such a big fall. Are they the victim of their own policies . Was it badly planned out, or is it one of the things that just happened . Niall it happens like that. Careful what you wish for. Liberalization of currency has been on the agenda for quite some time. Special drawing rights. I think inevitably once you change regime, the market will focus in on trying to test that regime, see where berries are, as we just agree, managed flow. That will be tested. Exchange Rate Mechanism in the european union. This is what happens. I think we will see an increase in volatility around the yuan. I think that is going to take quite some time to play out, before the market adjust to the new reality of people banks of to how the peoples bank of china is treating the yuan. Manus that action has consequences on virtually every asset class. Look at volatility. Volatility spiked higher in europe. If you look at these stocks relative to the volatility you saw in the United States of america. What will it do to the Asset Classes . Because, are they going to export deflation . Are we going to see more negative rates in bonds . Where do think it will play out the most poignantly . All i think that is critical. Volatility is coming back. Volatility has been extremely low. The whole financial repression narratives, if you like. What we are seeing in this case is peoples bank of china saying we want to be more market friendly. We manage our currency. The fed is saying we want to move boy from emergency policy settings and get back to a more normal central banking policy we want to move away from emergency policy settings. We saw a spike in europe. This is what we need to become accustomed to. Markets are going to become more choppy we expect more volatility. We have not seen it. Now we will begin to see it. What we are also going to see is some diversification across asset class performance. It could be quite a life a high level of correlation. It is difficult to create value. That is going to become clear as we proceed from here into the fourth quarter. Francine should we still try and figure out, actually, why this move happened now . It is awful for a lot of emerging markets. Is it trying to preempt the fed or is it the chinese worrying that growth is slowing more than they are expecting . Niall it is the latter and our view. Do the logic. If you want to liberalize or currency from a soft peg or effective peg mechanism, do it at a time when that helps. Youre going to get some appreciable value over time. I think, we look at the performance of the yuan relative sianhe basket of other a currencies, it has gained value relative to them. What is now thought to be a 4 drop relative to the dollar. That is really small change compared to how much the yuan has strengthened over the last couple years. Manus before we move on, emerges emerging markets. The asian currencies. The thai currency. Are they overreached . Have we overextended this . Is this a floor we are seeing in some of those currencies . Have furtherk they to go. It is on a casebycase basis. You look at malaysia. There are real reasons why the ringgit has been under pressure all year. It has to with Commodity Prices and me ongoing Corruption Scandal surrounding the ongoingnt and the Corruption Scandal surrounding the government. Some people have been drawing parallels to 1998. We are not envisaging this to be an asian crisis. The narrative has shifted. For countries where governments localeen poor, a lot of denominated borrowing, it will be an issue. Manus thank you so much for that hencine niall quinn, stays with us. Manus that brings us to todays twitter question. Is chinas devaluation a storm . Tweet us, join us. Francine here is a look at what else is on our radar. A have been killed in chemical blast. They happened at a Container Terminal following a fire ikna a store. The port city has become a gateway for shipments of commodity and goods. It is the home to manufacturing operations for airbus. Manus greek lawmakers will vote on a series of reforms today. But germany claims the plan is incomplete and is withholding loanrt, saying a bridge could be an option if the agreement cannot be reached in time for a payment to the European Central bank which is due next week. Stay tuned to bloomberg as we get those gdp figures at 10 00 a. M. London time. Francine switzerland has become the first nation to lift stations against iran. After the gulf state sealed an historic agreement with world powers last month to curb its nuclear program. Orpus news course newsc has lifted earnings estimates after being dragged down by lower advertising income. The publisher of the wall street journal and the New York Post is trying to boost digital and International Revenue. Readerscome, as increasingly gather news online. Francine how much of chaos created by the shutdowns banks and capital controls will be reflected in greek gdp figures at 10 00 a. M. . We will look ahead with our chief economist coming up after the break. Francine welcome back to the pulse, streaming on bloomberg. Com, tablet and phone. Manus another monumental day for greece. To parliament put today. This comes amid grumblings from germany about the plans. In half an hour we will get what we are expected to be a depressing set of greek gdp figures. David pollack joins us now. David, its going to be bad. We all know that. How bad is it going to be . We are expecting to see another contraction of. 5 the capital controls did not come into effect until the last three days of the reporting period, along with the closure of the banks print the worst of the damage from that will not be seen until the Third Quarter. That was reflected in the negative pmi number in the month of july we have seen. Francine talk to us about the rescue plan. Because germans have been quite a post. Is there a real danger of it scuttling the plan . David i dont think so. It looks like the momentum is there to be passed before the payment is due to the ecb. However, the germans have expressed resistance because the reluctant to buy into another plant if all the details are not clear. Troika who have this to makeon sure the details are there for the germans to vote on without too much left for guessing. Manus bring in niall quinn. How much bother do you take when you look at greece this to make sure the details are there for the germans to vote on without too much left for guessing. In the overall asset allocations . When you talk to clients, wheres the tipping balance . Has greece gone off the radar . L after we had the referendum which was a failed part of the greek government, what that the troika really had to have, has felt for a long time the greeks want to be part of the eurozone. In the main players want to have the greeks on board. Infrom our standpoint it is a nonissue. Francine how much to be read into the gdp figures that will be released on greece in 40 minutes from the . Is activity that took place before the third bailout was agreed. Probably the trough, while in ae is going to be miserable economic state for some time, things will get better with the uncertainty of grexit having passed. Manager of a greek business, you think i will not do anything until i know what the currency is going to be in three months time. They probably did nothing and the economy came to a standstill. At least we will see some restarting of activity in the second half of this year. Manus if greece does not features of heavily in the conversation, q. Wee. Is full locked in. There is a bit of growth in your. How has your perspective of europe changed in the context of growth in greece does not matter. We focused on the eurozone in the first instance. There has been some decent reform in italy. Maybe a bit of a wobble currently, but the renzi regime wants to make change. We have seen that. Spain has moved out a good distance as well. We have seen improvement in what would have been poor unemployment numbers, but an improvement in the employment figures in spain. The issue continues to be france, where there is beginning to be some Movement Towards reform, but it is always difficult to predict introduction the direction of that. You put that together with a strong United States and q. E. And we fell reasonably good about feel reasonably good about europe. We have been overweight this european the markets have performed well. We do not feel like were reasonably comfortable with the direction of the eurozone. Francine do you feel comfortable . The fed is about to tighten. That will have an impact on the eurozone. Then we have china. If they are doing something because the weak growth is coming out very soon, whic also explainsh the wek oil price, than it is bad news. The recentou look at drivers of growth, it has been domestic demand, Household Consumption as the fall of oil prices and the fall of on the plumbing has helped a bit. This is leading the recovery. Sense, in an a huge sense gdp is still below its peak. Sis it will not really take off until businesses start to investigate. If we look at it in the area of economy that has not done so well it is investment. Investors will be more confident and recovery before we see that take off. Manus just to come back full circle on greece. In 35 minutes look at the numbers. Two big issues. One is privatization. Im fascinated to know. This a big word, which we do not know what it means. When you talk to investors, does it remotely come up as being discussed asterisk, distressed assets . Niall it is beginning to come up with investors. I think there is real interest in the physical infrastructure in greece. Investors are very minded on global basis to get more access to physical infrastructure, t access robust casho flows. Moving away from traditional government bonds for all the reasons we now know investors are edges of all bonds. And private debt has raised a lot of capital in the last couple years, a lot of which is sitting on the sidelines. Indubitably some of it will go into greece. That is the focus of german authorities. Where is the control residing over the Privatization Program . I think there is an interesting subtext politically around this course. It plays into u. K. Politics as well. When you think about the pending referendum in the u. K. Which will be a source of volatility here, next year and certainly into 2017, what is the eurozone doing from a democratic standpoint and the domestic controller . What will be perceived in greece to be to mastech assets . That will be an to be domestic assets . Francine thank you so much. Stay tuned for those gdp figures. We will bring them at 10 00 u. K. Time. Scores of people are reported to as having been killed in two blast the chinese port of tianjin. That happened following a fire in the store of potentially hazardous chemicals. Lets get more with clement in beijing. Give us the latest on the situation. Clement the latest, 44 is the latest death toll. We have been told that, by people at the twitter website, that that, im sorry. We have been told the owners of the sorry . Francine go ahead. Clement we have been told that, sorry. We have been told that the owners of the factory that is apparently the center of these blasts has been arrested. Also peoples daily has reported an Emergency Rescue team, Chemical Nuclear Emergency Rescue team has been sent to tianjin from beijing, which is about 120 kilometers away. To help in the rescue. So, fire is kind of still simmering from what i have seen. Latest pictures coming out of the city. But people the bears companies are trying to gauge what kind of damage a sack we has been done over the course what kind of damage has been done over the last couple hours. Francine we also have a new story coming out saying that shipment of iron ore have been disrupted. Clement yes, yes. Thehas come out to say shipment has been disrupted but they have stress there is no damage to their facilities over there. Also, other shipping copies like say thatve come up to they are unable theyre trying to gauge the damage here and there superficially, but there head count. Everyone who is employed is accounted for. A lot of factories in the area because tianjin is important part of the plan to develop the area around beijing. The port is one of the top 10 busiest ports in the world. It is a very important manufacturing importexport center. And a gateway to northern china. Manus do you have anything more definite on the cause . Clement um, unfortunate, right now we do not. But there is a press conference coming up in a couple minutes. We will know more. Right now what we know is that this company that had been responsible. Being i think if you see the footages. Billowing smoke. Fireballs going up manus we will have to leave it there. Thank you very much for giving us that update. Welcome back to the pulse, live in london. Im francine lacqua. Manus im manus cranny. Our top headlines. 40. 4 people are reported to have been killed in the chinese port of tianjin. They have been following a file in the store of hazardous chemicals. Hundreds more people are have to have been hurt. The port city has become a gateway to northern china for shipments of commodities and goods. It also is the home to manufacturing operations for a Company Including airbus. Francine greek lawmakers will today vote on a series of reforms to release an 85 billion euro aid package. Germany claims the plan is withholdings of is incomplete, saying a bridge loan could be an option if an agreement cannot be made in time for payment to the ecb next week. Manus peoples bank of china lowered the rate by 1. 1 . Pboc said in a Statement Today that this weeks move represent as reformers to give the market a greater role in setting the exchange rate. Francine now lets check in on the markets. We have had a lot of currency moves the last couple days. Mark. The complete, its inverse of what has been happening. Stocks are rising. Bonds are falling. That is a typical trade when investors shrug a sigh of relief. I thought we would look at some of the stocks which have fallen heavily in the last few days. These of the companies with sizable exposure to china. Starting with autos. This is the european auto index on the stoxx 600, one of the main subcomponents of the european benchmark. In the back last couple days, it is falling by 8 . Up by 1. 2 . Earlier, it was as high as 2. 2 but not as high as it was at the start. Its been coming down from those highs. In the last couple days, 28 billion euros of value completely disappearing. Somewhat coming back today. 90 of bmw sales come from china. This is another company that has been in the news. Luxuryhe Worlds Largest Goods Company fell 11 in two days. That is the most since 2008. Nh yuan rebounded today as the yuan rebounded today as the yuan slide tempers. Wasbillion euros of value wiped away. Sales from asia account for 27 of its sales. This is a company i have not mentioned too much. Cocacola hbc, the secondlargest butler bottler. It buys concentrate from cocacola and sells the products in europe and russia and nigeria. Its listed in london and athletics. And athens. Biggest ever increase today. Up by 10 . The company increased its halfyear profit and sales bombing. Sale volume. Strong performance in romania and ukraine. Very quickly, the last six days the euro had risen every single day. Six days of increases has not happened since april. Have a look at the 7 day chart. Falling a little bit today. Interestingly we are at the eurn 1. 11 today. The estimate for the Third Quarter is for 1. 08. Anzmost bearish forecast is bank with a 99. Dit. Most bullish is unicre whos going to be right . Everything is turning on its head today. Mario if we get to 1. 17 draghi may have something to say. Francine nestle, the worlds biggest food company, has reported firsthalf sales growth that topped estimates. But a slow down in china means some analysts are forecasting the company could miss its longterm sales targets. Manus Elliott Gotkine joins us. You look at these numbers. There was a huge amount of expectation that these guys would find it darn tough to make thieir numbers but they beat. Iott coming in a smidgen below the median estimate of 43 billion swiss francs for the first half of this year. Europecine was saying, a bit of a laggard in terms economic growth. U. S. Doing pretty well for nestle, as was north america. There were even some signs of life, green shoots, from its frozen food business in the u. S. They make things like lean you usedwho im sure to be able to quote the adverts. Manus it has eluded you for the moment. Francine no one asked you to do that. Elliott overall, pretty good set of results from nestle. The market is taking its cue. You are expected to bounce back because of the declines weve seen due to the did depreciation of the yuan. But nestle going great guns. Up more than 3 . Before this mornings results, they underperformed the rest of the sector. Todays results setting it on the right course. Manus where are we on maggi noodles . Delicious. Manus the indian authorities. It is a great deal of debate going on between nestle and the authorities. There is a quest for a 99 million human if punitive damages. Bombay court overturned the decision, there was a recall on nestle maggi noodles which have been a staple in india for three decades. They have 2 3 of the market. Really hurt nestle india, which reports his First Quarter loss in 15 years last month. Now there is some positive news from nestle on the noddle f noodle front. They have to present nine anieties of noodle to independent lab and present that reported six weeks. The noodle had been recalled. They were accused by the indian Standards Authority of having too much lead. Nestle saying you have to look at the products they were looking at the individual ingredients. They were accused, some harsh words. Gross negligence, apathy, and callousness. Now it has been set aside and have been questions raised over the food Standards Authoritys methodology in terms of testing these things. Could nestle sue back for damages . Noodle. Been hit by this francine it is all about reputation. Thank you. Elliott gotkine with the latest on nestle. For more, we are joined by the head of john cox. Great to have you on the program. Before we drill into the earnings, this is a company that people say over and over again could be taken over by shareholder activism. This could be part of m a. How do you stand on this . In terms of shareholder activism, that is difficult in terms of the size of the company. Swiss francn company. You can imagine trying to put together a 1 stake will cost you well over two billion euros. Yes, i think nestle is aware of what is happening around them. Im sure they are always listening to what shareholders have to say, but i find it hard to believe that so shareholders would have the patience to build a stakem, and start to claim that the company is poorly run. If you look at nestle historically, typically it has been able to deliver in terms of 5 organic sales growth with Constant Currency margin improvement. As a aa Balance Sheet has a buyback. I would not say there are too many things that are poorly managed at nestle 5 . I do not think it would be the target of shareholder activism. Manus jon, very good morning to you. Badbuckles had a good or a crisis in india . It looks like a bit of a resolution for maggi noodles. But it took some time to get here. I wouldve thought a company would have reacted and then much more on top of the situation. Good or bad delivery in your estimate . Jon yeah, i think it is a bit of a mix. Nestle certainly could have moved far quickly. The trouble is you get a food product recall that can just totally destroyed bands. We have seen it all over the place in different geographies. Theyre obvious the saying, look, this is one test was showing that we have elevated levels of lead. We have not been able to repeat that across the spectrum. They probably were slow to react. Since then, i think they have been on top of their game. The noodles will go back on sale. It totally destroyed indian business, down 20 . Maggi noodles are about a third of their indian business. This is a big company. Nestle in india. Yes, it does have an impact on the group, but it is a pretty small potato in the greater scheme of things. Francine do you like the Company Overall . How does it stack up compared to its competitors . Jon as i said, i think you look at some of the competition, as we have gone into the slow down. Really on the back of the emergingmarket weakness and an ongoing softness in the developed world. Lower commodity costs dont help in terms of the ability to price. You look at some of their competitors, they have seen lowr sales growth half, single digit. In the case of your little of univlever. Nestle has missed its sales growth. But its barely missed it. What has been in atrocious environment for consumer staple companies. Its certainly the most offensive in the space. The stock is never going to double over the next couple months. There is capital preservation. You cannot look too far away than nestle. As i mentioned, 5 organic sales growth. Improvement. Has a buyback which is very supportive. A gold plated Balance Sheet. Aa credit rating. Few other companies have that. It is so diversify geographically. And you can get a blog in a blow up in india, and a north american frozen food business struggling. Other is so large the parts of the business can offset that. Some of the competitors are not in the best categories or just too focused on one or two geographies. When things go wrong, you see it straightaway in the overall performance. With nestle that diversification is very useful in this environment. Manus jon, thank you very much for joining us there. Jon cox in zurich. Francine up next, we break down the a to z of googles new Holding Company. We are on the pulse. Manus welcome back to the pulse, live in london. Alibaba shares fell to a record low Closing Price after the Company Reported a slow sales rate of growth. Francine earlier the ceo spoke to emily chang who asked him how concerned he is about a broader slowdown in the chinese economy. We always closely monitor the chinese economy and Consumer Behaviors. As we reported this quarter, we have acted active buyers of 367 million. Each buyer makes purchases of 50 times the year on this platform. This demonstrates the strength of the system. Variety ofa large the product for their daily lives. People come here not only for specific shopping purpose. They come here for lifestyle. So, we are confident for the longterm growth. And we will continue to closely monitor the Consumer Behavior and China Economy as a whole, but we are confident. Bee handed has out shares to workers in the last year. How long can we expect this to continue . It is hitting the bottom line. Have a shared Compensation Program to incentivize our talent people. We think we are the most mostble they are the vital assets in the company. We will continue to do so. We also announced a Share Buyback program. The purpose of it is antidilution. For example, for this Share Incentive program. We also announced a Share Buyback program. Emily paypal is now an independent company. What is alabamas interest what is alibabas interest in m a . Greatirst, paypal is a company. In china, we have a company alipay. Is now very popular in china. They are in the process of globalization. I think we are open to work with partners any other to Work Together to create value for our customers. Francine here are some more of headlines. Top former president jimmy carter has been diagnosed with cancer. He had liver surgery which revealed cancer and other parts of his body. Mr. Carter is 90. He is the second oldest living president in history. Manus londons housing shortage is worsening. Increasing the prospect for price rises. According to a study. This measure of Housing Stocks, sales dropped to 16 last month from 11. That is the sixth month of declines. Francine the u. K. Says it will fasttrack planning applications for fracking. It could supply the country for half a century. The Community Secretary may take over the Planning Decisions from local councils if they repeatedly failed to reach a conclusion within 16 weeks. Manus google recently. Self into a larger Holding Company called alphabet. But what exactly makes up the pieces . Bloomberg broke down the list of about a quick, of course. Ofgoogle runs a lot products, which means that the new Holding Company off of now runs all those products. What exactly are the parts that make up google . This is the new of that empire. Admon. Android. Analytics. Blogger. Boston dynamics. Calendar. Calico. Virtual reality. Capital. Deep mine. Store your stuff. Earth. Express. Feedburner. Superfast fiber optic broadband service. Finance. Firebase. Glass. Gmail. Hang outs. Hi, mom. Invite media. Jump. Life sciences. Developing the smart contact lens in a disease detecting nano particle. Wind turbines in the sky. Maps. My business. Thermostat now expanding into internet connecting home products. Nexus. News. Patents. Play. Nexus q. Protecting websites from spam. Search. Scholar. Shopping. Sidewalk labs. Translate. Ventures. Dunded Companies Like uber, an bloomberg coffee. Web tool kit. X, experiments including the self driving car and internet carrying balloons. Alphabet will break googles ma in web business off from its many projects which will give them room to pursue even more crazy endeavors. Francine there you go. Youre alphabet. The new google. We are getting breaking news out of the greek finance minister. Telling lawmakers in athens that the greek banks will receive 10 billion euros for recapitalization. The comes ahead of a crucial vote from the parliament today. Then eurozone ministers meet tomorrow. In 10 minutes we get that gdp figure. Manus he goes on to clarify that the bailout will be reviewed. The banks news is the. The new line. Francine up next, guy johnson just a test drive a unique supercar. How bad was his driving . We find out after the break. Manus californias Pebble Beach Golf Course has this weeksmanus at its famous concourse motor show. One British Company is aiming to make a big . Splash is liverpool. Guy it is the beginning of june. Where in north wales. There is a severe warning weather and place which is perfect because we are here to drive this. A car with no practical purpose. It has almost no storage. It has got one seat. No windscreen. It has got no roof. Which is great because it never rains here. Honest. What is does have, though, is this. [revs engine] the carbon fiber looks may be the first thing you notice but the facts and figures are not far behind. 280 brake horsepower, a top speed of 170 miles an hour, 0 to 60 in three seconds. But it feels faster of where you sit. This car like the road legal, but inside the cockpit you feel like a race driver. Comes through into this banking corner here. What got these guys excited. This customers have traveled to north wales to see what the mono has to offer for the 110,000 pound price tag. Serious money, yes. But they are serious about the sport. Lamborghini, ferreri, but the mono is different. It starts, the pedals, left down. Guy with the track drying out, it is time to see what the mono can deliver. Feedback is good. The car is precise and seems to be pushing everyone to go faster. Everyone that is except me. I have never driven a racing car like this before. Its time to pick up the pace. Was great. E doing those market checks beats doing market checks. Our viewers, we focus on china. Manus defending de valuation. The peoples bank of china tries to calm nerves about the yuan. Francine tianjin explosion. Scores of people are killed. Other vessels are halted at port. Manus bailout blues. Today, germany says the aid plan is incomplete and refuses to back it. All days as we wait for gross numbers from greece. Good morning to our viewers in europe, good evening those in asia, and a very warm welcome to those just waking up in the u. S. I manus cranny. Francine i am francine lacqua. This is the pulse, live from london. Expecting gdp figures out of greece any minute. To preview the figures, lets bring in bloombergs chief euro area economist, david powell. Is what we are expecting. July was a terrible month, basically at a standstill. David the report from the Second Quarter will not capture july. It may not capture the worst of what happened during this time period. Capital controls and Bank Closures only occurred within the last few days of this reporting period. Manus we are beginning to come out of the capital controls cycle. Does the economy still remain mired in negative growth for as long as you have capital controls of the nature we have . David certainly, as long as the capital controls are in place they will act as a serious weight on the greek economy. Things will probably not be as bad as they were during the period that preceded the bailout. The economy came to a standstill. There will be the restarting of some Economic Activity as the uncertainty of the immediate grexit is gone francine thank you. Keep it there, we are waiting on the figures. A briefing has been held and china as the central bank works to restore calm. Had itshe currency worst loss in two decades. The peoples bank of china said it would intervene. The Deputy Governor also in charge of the states foreignexchange told the media trust the market, respect the market, fear the market. Lets bring in our beijing bureau chief. An unusual move. Youve got to love irony. Trust the market you want to trust the market. It was a very revealing News Conference. We are starting to get a sense of what the peoples bank of china has in mind. Trust the market, one of the other quotes he used, when the market acts like a herd of sheep , we will intervene. Is saying we are going to loosen our grip, but not that much. When things get out of control, we will step in. Francine what does this mean . Will it weaken the currency further you are seeing now is basically the government is drawing the line on the weakening. What they had said was they saw this as a onetime thing. So they felt that the yuan was whack with the broader market. If you look at the yuan in the last two days, and the last several minutes of trading, theres a big bump. The yuan roars back. What appears to be happening is theres some intervention going on. The government is saying here is how low, we are willing to let it go, once it hits that line, we will push it back up. Manus what is it mean for the rest of asia . Weve seen volatility in the currency but limited policy response thus far. Nick i think what you are seeing is that there is calming of fears there is going to be a currency war. Oor exporta really p numbers down 8 last week. There was some fear that china was going to go crazy, devalue the currency and get exports up stronger, which is crucial for growth. The comments today suggest they have a more orderly plan in mind. I think that suits other markets. They are not quite as worried they are going to have to get into competitive devaluations themselves. Francine thank you. Also getting gdp figures weve been waiting for. From greece, better than expected. Not even contracts anymore. 0. 8 percent. Of the big pieces of news, 0. 8 is better than expected. We heard fromcap the finance minister. David take them with a grain of salt. There were media reports at that time that greek consumers were afraid their euros would be they went onnks, a spending spree, it was better to have good then euros in a bank. Greeks started to pay their taxes while they could still get their hands on euros. These numbers may be artificially inflated by High Consumption figures that may not be repeated the following quarter. Manus nobody expected substantial growth when it comes to the next three years. The surplus assumed is greatly reduced. The fiscal surpluses in greece. No way they are going to be what they thought they were going to be. David the high numbers we saw a early in the year have now gone back. Media reports suggest the newest numbers are 0. 5 on the primary surplus. Not only for this year but for next year. The numbers are much more realistic, especially given the contraction wed seen earlier in the year in the greek economy. Francine david powell, our euro area economist. Our next guest is head of emerging markets, gary greenberg. What is your first take . We had the evaluation deval uation. They are doing an ok job. Gary this is part of a larger plan to internationalize the renminbi and make it available as an scr. Tois also part of a plan upscale the chinese economy, higher value added type of things. It is a small devaluation. I dont think they are really going to try to jumpstart the economy by lowering the currency. Manus if that is your jumping off point, if this is not going to kick off exports, what is . Gary nothing. Manus ok, stagnation. 3,4, 5,growth rate of 6, 7 is still better than anywhere else in the world. Manus it does matter whether it is three or seven. Gary the chinese are going to have to be happy with slower growth. They are preparing for it. Their growth has not been of the overcapacity with in many industries. Realism is a good thing. I think they are ready for that. Francine you do not seem over concerned. Is the rest of the world ready for 3. 5 4 growth in china . Gary anybody who is paying attention is seeing that the chinese economy is slowing. I think that is inevitable. It is difficult for commodity producers. Copperust down in chile, price down there is important for the economy. Very difficult for Chilean Companies to cope with. Happening, it is going to happen. It is inevitable. I think it is ok. Context,om a european how were just seeing some glimmers of growth. We are inextricably linked. It is the big european savior. Gary i would say we should put it in context. Depreciation of the chinese currency by just under 3 percent is not a huge move it especially when you compare it to move in the euro. That is going to have a bigger on the euro area economy then movement in the chinese currency. We will be feeling that impact in the second half of this year. Francine are you worried about deflation . Gary globally . Francine yes. Gary yes, i think it is a real possibility. The oil prices are signaling that, as are other commodities. Historically, the world has experienced deflation quite a bit, especially in the 19th century. It is possible that that happens. Not good for stock markets if it does. Manus the other fascinating article this morning was that riyalan shock sends saudi ivaluation to six year love the story. What are the big repercussions . This has a ripple effect. Gary do i have to accept your premise . Im not sure this is going to have a huge effect. The chinese currency has been appreciating a lot, along with the dollar, versus all currencies in the world. And little bit of relief makes some sense. Weve got Commodity Prices lower globally, which is a stimulus. Eventually, the Lower Oil Price will be positive for global growth. Less chinese demand and a little more rebalancing is a positive thing. Saudi, yes, saudi has a difficult situation. In a few years they are not going to be a net exporter of oil because they are consuming so much. Abound, especially for commodity producing countries. Commodity importing countries are getting a lot of benefits, although you cannot see it in stock prices yet. Francine thank you. Gary and david. Heres a look at our radar this thursday morning. Reportedores of people to have been killed in two chemical blasts in the chinese port of tianjin. They happened at a Container Terminal following a fire. Hundreds more people are said to have been hurt. Of oil and iron ore have been disrupted as tankers and vessels carrying hazardous products are halted. Francine switzerland has become the first nation to lift sanctions against iran after the gulf states sealed a historic agreement last month to curb its nuclear program. Manus news corp. Has missed earnings estimates after being dragged down by lower advertising income. The publisher of the wall street journal and the New York Post, which is controlled by rupert murdoch, is trying to boost digital and International Revenue to compensate for a falling income as readers increasingly get their news online. Francine next, we speak to zalando managing director rubin ritter. His company beat secondquarter sales estimates. Be sure not to miss that interview. Francine welcome to the pulse, live from london. Europes Largest Online fashion retailer by sales zalando has raised its fullyear revenue forecast after second. Quarter sales beat expectations editoritter managing joins us from berlin. You are raising your sales forecast. Theres been a concern you were chasing growth at a risk of putting profitability to one side. Do you think this will be addressed . You can actually move on profitability as well. Things, first of all, weve already said that now is the time for growth. It is time to capture market share in the european ecommerce market. This is why we are invested in ramping up our growth in the first half of the year. This will be our direction in the second half of the year. First half profitability increased compared to last year by 3 Percentage Points to 4. 3 adjusted ebitda. On profitability we are advancing well. Francine how much do you want to grow by . It is Brand Recognition and customers, how much bigger will you be a year from now . Rubin at the beginning of the year we set a target to grow at target. , an ambitious weve increased our growth target for this year to 28 30 1 and are confident we can achieve that goal. The bigger context is we are looking at a huge european Fashion Market of more than 400 billion euros spent every year. Compared to that, we are small. We are approaching 3 billion in revenue. We have a lot of potential. This is why we are happy that we see investments weve made in the Customer Experience were able to increase growth relative to last year. Francine amongst investors, growth in general seems to be trendier than the value. Can you update us on returns . Do you expect that figure to stabilize . Our return rate was fairly constant at about 50 . It has been at that level for the last year. To us it is about offering the best possible shopping experience. Is that of that customers do not only receive merchandise quickly and have a great selection and great products, but also that they have a convenient way of returning if something is not living up to expectations. Rates have always been a part of our Business Model and that has not changed. Francine how are your hiring plans going . Rubin excuse me . Francine how are your hiring plans going . You are looking staff from about 7500 to about 10,000 by the end of the year. Created 1500 new jobs in the first half of this year. Weve been hiring significantly in operations but also one thir staff in berlin, especially in tech. Towards the end of year we expect to have more than 10,000 employees, especially in the tech area. We are doing a lot of recruiting. We have more than 800 tech professionals. We think that is going to be one of the key competencies within the company to be the leading tech company in the fashion space. Talk about bill me later invoicing. This is something that is particular to germany. Do you think he will have to offer that more . You deliver the parcel and then they pay. Of our convenience proposition to the customer is that we offer the Payment Methods that people ask for in the respective markets. Those differ from market to market. In germany, benelux and the isdics, paying by invoice very popular. We want to offer that method to customers. Something we have to balance is the risk juncker when you offer Company Customers to pay by invoice. We will offer this convenient payment method. Francine what is your expectation for operating margin. We think we will be trading around 4. 5 adjusted ebitd, more than one percentage point up compared to last year and compared to our guidance at the beginning of the year. We delivering good progress. I think it is a unique combination of fast growth and but also profitability. Francine overall, your Second Quarter fell in terms of profits . Profitability will still be something you need to focus on aggressively. The main focus, if theres a tradeoff, primarily focus on the customer and building our longterm strategy. We focus on growth. At the same time, we want to operate profitably. Last year we achieved break even. This year we are operating on profitability. The combination of 30 growth is 4. 5 adjusted ebitd strong. It is indicated by the Market Reaction today to our numbers. Francine logistically, what is your biggest concern . You manage a lot of payments. Is it trying to leave parcels . Ecommerce companies are trying to figure out the best way to deliver, or is it the amount of time it takes to deliver something . At such an you go speed and scale, you always have a lot of topics to worry about. One topic we always worry about. S to keep up hiring speed one thing we think about is how to extend capacity along the value chain. One topic we think about is innovation. In delivery, how can we make delivery more convenient . Only towe find ways not serve customers from the inventory we carry in our warehouse, also to serve an offline store. How can we extend partnerships . Along all those topics, the team is plowing ahead and that is what we focus on. Francine thank you so much. Managingter, zalando editor in a bloomberg exclusive. Lets get the conversation in regards to germany. Rwe, the Trading Statement came out this morning. Treating 17. 32, down almost one set after the company saw losses in the Second Quarter due to shrinking margins at their power plants. Lets bring in the seat fl. Lets bring in the cfo. A number of Different Things the market seems to be disheartened by. I want to get a sense, profitability is down, the market is changing, are we near a flaw in wholesale Energy Prices . Theyve dropped over 9 over the past year. Is this as bad as it gets and pricing for electricity . Bernhard good morning. It is always hard to predict prices, especially going forward. Prices, we must know that the recent drop weve seen that you mentioned in your question was more driven by the growth in fuel prices, essentially call. Development of the electricity price will be much influenced by what happens to coal prices globally, which are hard to predict given the influence of chinese demand on the sectors. Clear that this must be a flaw. Prices drop, electricity prices would drop further. China,you just mentioned their demand and influence on pricing. When you see what is happening in china, how concerned are you about Commodity Prices . We at least think about certain scenarios where we see depressed global Commodity Prices, not only for coal that potential other commodities like oil and gas which are very important primary fuels for the energy sector. These low prices could persist for quite a while. This is obviously what the market is reading into. Manus lets talk about your prospects in the u. K. Youve changed your language. The u. K. Business will close significantly below last year. Original guidance was moderate below last year. The market needs you to put some more context around that 4s. How bad are things in the u. K. . Give me some numbers. We talk about problems in the u. K. Retail division, that is the first of foreign thing to know. It is not first important thing to note. It is not affecting our trading over there. We are developing according to plan. Division is one segment, admittedly be biggest, the household customers. We are facing that your problems than anticipated with the transition to a new i. T. Based billing system, which causes significant quality problems in our invoicing. These problems have already surpassed during the course of 2014. We took action by nominating a third board member to the board of our u. K. Activities with the plan to start turnaround activities for the domestic u. K. Business. Plan,t of the turnaround theres a full dimension that has become visible. That is why weve seen the drop in the halfyear numbers and we have downward adjustment. Our fullyear guidance for this specific segment. Manus thank you very much. Bernhard guenther. Manus francine stay with us. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Francine welcome back to the pulse, live from london. Im francine lacqua. Manus here are our top headlines. 44 people reported to have been killed in chemical blasts in the chinese port of tianjin. It happened at a Container Terminal following a fire in a store of potentially hazardous chemicals. Hundreds more people hurt. Shipments of oil and iron ore disrupted. Tankers and vessels carrying hazardous products are halted. Francine greek lawmakers will vote on a series of reforms to release an 85 billion euro a package. Germany planes germany claims the plan is unsupported and is withholding support. Manus stepping up verbal. Upport for the yuan it will step in when the market sees excessive volatility or is swayed by herd behavior. Helping the currency stem the worst loss in two decades. Francine lets check on the markets with jonathan ferro. Jonathan the only thing anyone is talking about on a Trading Floor anywhere, it is not china, it is greek gdp. Not a single economists expected growth. All of them expect a contraction. Report freak gdp grabbing the headlines. For the equity markets, it is still about china. Stoxx 600 off a onemonth low. We have the stabilization. Dax coming off the biggest today two day rout since 2011. Ftse in italy up almost 2 . In london up a little. The only chart anyone has been looking at is. Hat is the chinese yuan doing the peoples bank of china cut the reference right for a third day. Unchanged on the session. Some soothing words from the peoples bank of china. A rare News Conference overnight. Stabilizing a little bit as far as the chinese currency is concerned and stimulating, helping a little bit of a rebound in risk assets in the equity markets and bond markets. You had seen a strong bid for car government bonds, not just because of risk off, also the deflation bid. Concern that china would export deflation. So you go to Court Government bonds. This morning, the opposite is true. In germany, up. Money going into spain and italy. Perforate performing well. Periphery performing well. China and focus. Greek gdp, who saw that coming . Francine its a freak result. Wedst all the chaos, sometimes saw growth. This must be tax receipts coming in. It throws up the question how dependable is the data, how robust is the data . This goes to the core of negotiations in regards to greece. In 25 minutes, it is surveillance with tom keene. Om we look at greece hans nichols in new york. Im more focused on what is going on in germany then older greek data. Then we move onto china and the impact of Central Banks. Will join us from runs ons macro. We talk about his optimism on the economy. This may be reaffirmed with retail sales at 8 30. On the equity market, when you look at commodities and foreign exchange, what about equities . Bull and saidis a he fed and Growth Stocks has a lot to do with it. Francine thank you so much. Surveillance is 25 minutes from now. Manus our next guest says the split in tsipras party is becoming ingrained. He hopes the size of it will not be larger than before. Europeso open codirector. Gdp number is a curveball for everyone. Nobody saw that coming. A primen syriza, minister depending on support across the aisle. Is he weakening his position . Think he is depending on other parties at the moment. He has strong support, his Approval Ratings are good. Gdpill be boosted by this number just now. It comes at a good time ahead of the parliamentary vote. The main question is the timing of the elections, how does he play that . He once to move early to capitalize on his high Approval Ratings and get poisonous people out of his party. He does not want to undermine the implementation of bailout. In greece, when you have elections, everything stops. When he chooses to have the elections will be a huge point. Well heecide how manages to manage the implementation of the bailout initially. Francine lets go back to gdp figures from greece. Maybe it is boosted by inflation ahead of the lockdown, people have been buying things like goods. Is it possible that because imports stopped going into the country, that has an impact on gdp . Those factors could play into it. There was a boost in tourism in february before the negotiations at the end of june and july. That could help. Theres a lot of factors that could play in. No one saw it coming. Just yesterday or the day before, we saw the forecast from point 3 gdpn, two growth for the year. Where does greece go . July must be a terrible gdp number. The next six months must horrible if the forecast is to be proved correct. This plays into the heart of the negotiations and the figures that are going to be discussed. Manus those figures has been batted around in terms of reducing the expectations for growth, for fiscal surpluses. Here the other day. He came in from unicredit and said the last a lot worked, they saw a little bit of a drop in unemployment. He fundamentally said it took a it was getting there. Do you share that view . Glitch, will it work . Raoul there was a slight turnaround. Fromot separate the the bailout. What is the reason behind syriza s rise . Austerity would boost the populist party and that is what happened. I do not think you can separate the two. It was having a turnaround that we always knew it was going to be a Payment Health for them to get over. The last government did not have any real idea of how that was going to be done. There would have been issues no matter what. While the bailout was helping a little, there were questions over longterm availability for greece and he political fallout of the bailout. Whether this will work, im pretty skeptical. Fundamentally, syriza does not want to implement it. Francine a certain faction of syriza. Isul even tsipras grudgingly saying we do not have any ownership but we are going to do it anyway. Given the size of the reforms in the amount of change you need in greece, it does not help when you have a leader saying it. They basically stared into the eyes of do we need zero do we leave the euro. Itn if hes not doing happily, the counterpart is unthinkable. Choice. E knows the maybe that will push him further. Worldsught between two and has not decided which he wants to be. He does not want to be the true reformer and he cannot be the leftist Prime Minister he wants to be. That is always a recipe for uncertainty. Francine thank you so much. Open europes codirector. Manus scores of people reported to have been killed in two chemical blasts in the chinese at a Container Terminal following a fire in a store of potentially hazardous chemicals. Lets get more on the story from beijing. What is the situation . We understand there is a big perimeter zone created. Give us an update. The death toll now stands at 44 with hundreds of others hospitalized, 66 of whom are critical. In the last couple hours, china has sent a special biochemical emergency squad from beijing. Also, the french carmaker has confirmed that theyve lost about 1500 vehicles in the fire overnight. Is importantnjin because it is a port town. Apart from the human tragedy, it affects business. Clement right. Busiestis number 10 container port in the world and is the gateway to northern china. It imports iron ore, coal, cars, whatever. By thehe centerpiece beijing government to develop the area. To develop the area around beijing a little more holistically. This could be a setback to that attempt. It is not favorable for development. Francine thank you so much. The latest on tianjin. Manus , you have heard the name. Googles new Holding Company. Stay with the pulse for that. Francine welcome back to the pulse, live on bloomberg tv. Manus pressley has reported firsthalf growth that topped estimates. Slowdown in china and lessening demand for frozen food in the u. S. Means some analysts are forecasting nestle could miss its longterm sales gotkineour elliott joins us for a closer look. Better earnings. Break it down. Elliott overall sales a smidgen. Elow the median estimates it was organic growth that came in higher than estimates, 4. 5 against 4. 3 . A pretty good showing from nestle. Some signs of life in its u. S. Frozen food business they are trying to revamp, things like lean cuisine. Water and nutrition doing well. On the same day that they got these earnings and investors theed to like that, pushing shares up. Maybe because of these earnings. We had some good news on the middle front. Manus give us an update. Close of business yesterday, it was like 100 million cumulative damages. There seems to be resolution in terms of getting the product back on the shelf. Nestle Elliott Elliott nestle has always claimed there is not a problem staples maggi noodles, a india. Market in they were forced to recall them in the wake of allegations by the indian food Standards Authority. Some flowery language, alleging unfair trade practices, negligence, apathy and callousness with regard to the noodles. Seven times the amount of legally allowed lead, claims that nestle rejected. The same noodles seem to be perfectly fine in the u. S. And canada, it would seem to suggest they had a point. A court in bombay has overturned the decision to recall the noodles. They have to present them to independent labs in india and provide the results within six weeks to ensure they can get the noodles on peoples plates. Nestle, could they have a claim for damages . To notindians are found have done their job properly in terms of the food safety analysis, perhaps nestle might have a case you cost us lost of money. The First Quarterly loss in 15 years for nestle india. Nestle might feel they have a chance to get some money back. Francine Elliott Gotkine with the latest on nestle. Manus some top headlines. Jimmy carter has been diagnosed with cancer. He had liver surgery earlier this month, which revealed cancer in other parts of his body. Americas is 90 and 39th president. The second oldest living president in history. His brother, two sisters, and parents died from the disease. Francine londons housing shortage is worsening, increasing the prospect of price rises. The measure of the Housing Stock 16 last month from 11, the sixth month of decline. Lawmakers will vote on the reform to release an aid package. Germany claims the plan is incomplete and is withholding support. Finance finlands minister has told bloomberg hes optimistic. He spoke to us in helsinki. Are better off than we were in july. We were on the brink at the time. We were talking about spending suspending euro membership. We found a solution. Im carefully optimistic that we will find a deal and there will be no need for a default on the 20th of august. Breach ofs confidence at the time was when the greek government announced a referendum. Data is when most proeuropeans lost faith and said what is going on here. Overcome hurdle was and a new package was negotiated , which was a difficult moment, things have gone by smoothly. Hasink the greek government been more cooperative. There have been positive statements. I think were in the slow process of Building Confidence after a big row. Google recently folded into a larger Holding Company called alphabet. What makes up the pieces . Google runs a lot of products. Its new Holding Company, alphabet, now runs all those products. What are the parts that make up google . This is the alphabet empire. Admob. Ad sense. Alerts. Analytics. Books. Boston analytics. Calico. Cardboard. Capital. Deep mine. Design earth. Fiber, fiber optic broadband. Finance. Firebase. Gmail. Hang out. Images. Ingress. Invite media jumped life sciences. Local. Makani. Nest, none for the smart thermostat. News. Nexus. Piicasa. Play. Recaptcha. Refine. Tv. Scholar. Sandberg labs. Skybox. Translate. Tango. Ventures, funded Companies Like uber. Video. Ware. Web toolkit. X, experiments including the self driving car and internet carrying balloons. Youtube. Zagat. Project zero. Out of that will break the web business also from other products, which they say will give them room to pursue more crazy endeavors. , that johnson gets to testdrive supercars. How bad was his driving. Stay tuned to find out. Francine californias pebble beach has its famous concours delegance motor show. One British Company aiming to make a splash. Has justs bac exported their first mono to the u. S. Guy we are in north wales. A Severe Weather warning. We are here to drive this, the bac mono. A car with virtually no practical purpose. No storage, one seat, no windscreen. Its got no roof. Great, because it never rains here honest. What it does have is this [engine revs] fiber might be the first thing you notice. 280 break horsepower, top speed of 170 miles an hour. Seconds, but it feels faster because of where you sit. Butcar might be road legal, inside the cockpit, you feel like a racing driver. Into this corner here. These potential customers have traveled from around the world to north wales to see what with ao has to offer 110,000 pound price tag. Serious money. These guys are serious about the sport. They might already have a stable of supercars porsches, lamborghinis, ferraris, the mono is different. The only functions you need, starter panels guy with the track drying out, time to see what the mono can deliver. And the feedback is good. The car seems to be pushing everyone to go faster. Everyone, that is, except me. Ive never driven a racing car like this before. Its time to pick up the pace. Francine hes good. Manus pick up the pace. Francine that is it for the pulse, keep it here on bloomberg tv. Fromtuned, up next, live new york. Follow us on twitter. Manus we are flacqua and manuscranny here in london. Chinahe central bank in draws a line in the sand as Market Participants test the banks. Continued depreciation. Global markets, however, quiet. The feds data dependent. Retail sales report, news janet yellen can use. As oil crashes, American Oil Producers to medically cut costs. Dramatically cut costs. Good morning, this is bloomberg surveillance. I am tom keene with Brendan Greeley and the surprise you never know, greece, positive gdp. Summersa lot of the chaos is not included in those numbers. Two looking at two things, vigorous denials, china denying managing currency. Dilma rousseff denying she is considering stepping down as president of brazil. Both of them are protesting too much. Contemplating what mr. Biden will do within his future. Brendan he is having conversations. Tom were going to have a