Stoxx 600 is negative now, down by less than 2 10 of 1 . The pound is moving relatively aggressively on a number of different things. Theres a reuters report talking about a regime that would allow the continuity of the good friday agreement for the irish border. Emmanuel macron talked about an intelligent solution to the brexit impasse. All of these factors helping the pound get a lift today. I think positioning is also a factor in this. The italian 10 year not budging that much, but keep an eye on it. Reportsla, the suggest, wants a coalition formed by the end of today. Salvini is about to go see the italian president. Vonnie the u. S. Economy does not need lower rates according to Kansas City Fed president Esther George. She spoke with bloombergs Michael Mckee in jackson hole, wyoming. Have a listen. Theer as i look at where economy is, im not ready to begin to provide more accommodation to the economy outlook thats adjusts the economy is getting weaker. Vonnie we are joined now by Michael Mckee, live from jackson hole, wyoming. What about the picture for the Global Economy . Is Esther George alone in thinking that we dont need to have a rate cut, certainly not another one . She wanted the loan in july. It does raise the question of how much unanimity there is on the committee. We will find out more perhaps when we hear from jay powell tomorrow, but we will also be talking with a host of fed officials out here in jackson hole starting tomorrow morning with jim bullard. We will talk with robert kaplan, loretta mester, and patrick harker. Well get a view from various regional feds about how the economy is doing in their area. I asked Esther George about whether or not the former Kansas City Fed region was suffering, and she was saying they really dont see a lot of weakness at this point. , the minutes are one thing. Basically, powell is having to speak for the committee. As you just highlighted, the committee is not on the same page. Powell, when he speaks tomorrow, is going to be speaking for himself. How big do you think a gap there is in speaking for himself and speaking for the committee . Michael i think hes going to try very hard to at least show not much of a gap at all. The problem is if you Start Talking about the need for rate cuts, then you start to talk about an economy that is slowing, and it could become a warning from a fed president that snowballs into a self fulfilling prophecy. So hes got a tough job in explaining why the fed might want to cut rates again without saying that the economy is in bad shape, so expect him to fall back on the insurance, the midcourse correction language he used in the last news conference, and not let on that theres a lot of daylight and any of the members of the committee. Vonnie we will be back with you throughout the day and tomorrow. That is Michael Mckee, bloombergs correspondent at jackson hole. For more on the fomc and what we can expect from the symposium and the economy, we are joined by simeon hyman, proshares Global Investment strategist. How do you see the strength of the economy right now . It is clearly at the core of the Monetary Policymaking body, so obviously there will be a sense in the broader economic community. Simeon theres conflicting data all around the world. We had terrible german manufacturing data this week, and yet also this week in the u. S. , we had acrosstheboard great retail earnings results. Theres the question of can the u. S. Consumers save the world, but in europe, the consumer is much better than manufacturing, so theres conflicting data, so theres no surprise theres dissent. Vonnie was it a surprise for the fed to make a socalled insurance cut . I know you are looking for 50 to 75 more bases cuts for the rest of the year. That seems quite drastic. Simeon the question of what is a neutral fed funds rate is a much different one than in a normalized environment. Even if there was 50 to 75 basis points of cuts, it wouldnt be dramatic in the context of lower rates. What i think everyone would hope for is some steepening of the yield curve. Thats where the ammunition would come from if things got really bad. If we get the 10 year back up to 2. 5 , theres some room if we got a recession for that to go somewhere without going negative. Guy its been going in the other direction. The rate of change in terms of yield movement over the last week has been i watering. Has that rate of change dealt a surprise to you, and do you think we are in the right place now . Simeon i think its a bit of an overshoot. With the strength of the u. S. Consumer, to have 1. 5 on the 10 year, remember, the pce deflated back to that number. So a normal real yield on the 10 year would be 2. 5 above that, which is 4 . Theres no way we are getting to that with all the qe around the world. But something halfway in between would seem like a more normal answer. I am in the camp of thinking that 1. 5 is a bit of an overshoot. Guy is the fed going to cut five basis points at the next meeting because the u. S. Economy needs it or because german bunds are at negative six he five basis points . At 65 basis points . Ivid i think it simeon think it has more to do with the rates around the world. Remember, we had the Corporate Tax cuts in the u. S. This is the time when that is actually flowing to price and resulting in some downward pressure on inflation, but it is stimulative. That is showing up in corporate earnings. Is one of the reasons we are on the cusp of an earnings recession, but the flipside is it is stimulus in the u. S. It does have a lot to do with more weakness outside the u. S. And negative yields then what is going on here on the ground. Vonnie what would normal 10 year rates be at this point . We had qe for so long and an environment around the world that is getting ever more Monetary Policy dependent. Is there a normal 10 year right now . Simeon not in the context of all this qe we have, and we are not even unwinding the Balance Sheet in the u. S. Now. Be 4 . Flation should that sort of longterm average cant happen in this environment come about 1. 5 seems a little too low, even in the context environment, but 1. 5 seems a little low, even in the context of that environment. Vonnie what kind of inflation do we need given that we are already beyond what we used to think of as full employment . The fed is looking for 2 . Not that far off. 2 is basically the target of every central bank around the world, so at least from a u. S. Offpective, we are further. It gets people nervous about deflation, but not that far off in the u. S. Guy most people dont follow pmi number for the united states. They focus on the ism. But the market number for u. S. Manufacturing just printed and came in sub 50. Does that number feel right to you, first of all . Are we seeing contraction . And when do we see manufacturing bleeding into the consumer . Simeon its not a surprise to see those numbers bouncing around 50. Weaker manufacturing than the consumer, so thats not a surprise at all, and it could bleed into the consumer, but i just dont see that happening for a good 12 to 24 months. Theres just too much strength on the consumer side, as we seen this week in those retail results. The consumer is still pretty strong. The lower Interest Rates come all the refinancing going on. I mentioned the deflationary aspect of the Corporate Tax cut. We could even have fiscal stimulus. If the germans are talking about fiscal stimulus, thats the last thing they ever want to do. We may be on the cusp of some reflationary activity that we havent yet seen since the depths of the financial crisis. , wouldapping it all up you stay long the dollar at this point . Simeon i think the [no audio] though it might be a nice idea that pundits would like to see a weaker dollar, im not sure how much weaker it can go. Vonnie we are just Getting Started here with simeon hyman, proshares will blend us in strategist. He stays with us proshares Global Investment strategist. He stays with us. Now lets get a check on the first word news with kailey leinz. Kailey Emmanuel Macron told the british Prime Minister that any changes to the current brexit deal wont be very significant. Johnson is demanding the eu scrapped the backstop, the mechanism designed to keep the irish border free of checks. That is a key part of the agreement. The Trump Administration is getting closer to unveiling its plan for the future of mortgage giants freddie mac and fannie mae. Bloomberg has learned top officials at the white house and federal agencies are reviewing the proposal. It would freedom from government control, where theyve been since the financial crisis. The field of democratic president ial candidates just got a little smaller. Washington governor jay inslee has dropped out. He told msnbc he determined he could not win the nomination. He ran as a moderate, but was far behind in polling and fundraising. The amazon rain forest in brazil is burning at a record rate. Thats according to data from the countrys National Institute of space research. There was an 84 increase in fires there between 2018 and 2019. Jairls president bolsonaro says organizations could be setting the fires to discredit him, but offered no evidence. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Guy thanks very much indeed. Coming up, weve already talked about it a little bit. Recession signs for germany. German factory orders falling, manufacturing sinking, Business Sentiment tanking. We will discuss all of that next. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is Bloomberg Markets. For an update on those markets, lets go to emma chandra. Emma we are looking at a bit of a mixed picture for global stocks. The hang seng closing and the red, the s p 500 opening in the green. Looking into a second days of gains. This suggested the labor market is still strong. Also a number of earnings from retailers in the relapse in the u. S. Once again thomas adjusting the engine of the u. S. Economy once again, suggesting the engine of the u. S. Economy is still running. The ftse is falling, down 1 . That could be a reaction to the spike we are seeing in the pound. This is as Prime Minister boris met with president macron in france and german chancellor merkel, and it is looking like there may be some optimism about the possibility of a brexit deal. I also mention some of those retailers earlier in the u. S. Doing pretty well. Popping. To get early today up some 13 come out with its earnings after the market closed last night. Epsstors likely to beat on and falling costs. Investors liking what this might mean for nordstrom is a potential takeover target. Tesla and volkswagen both moving after the volkswagen ceo said he would invest in tesla immediately if he could. Finally, back to retail. Lots of discussion about how everybody has been performing so far in terms of target and nordstrom. A look at those big moves over the course of the past week. How will they survive in the amazon world . Amazon moving to 2 in five days, but look at the difference in share price. Vonnie thank you for that. German manufacturers are reinforcing concern europes largest economy is headed to recession. A nationwide gauge showing three orders are following showing factory orders are falling at the fastest pace in six years. Iseon hyman of proshares still with us. What sort of stimulus package would be needed to hold up that pricing . Simeon the ecb can only do so much. Theres a structural problem in europe. We dont have a fiscal union, only a monetary union. From freshman economics, that tells you that is unsustainable. The equity markets are about a 50 discount to the u. S. , but maybe that is not enough. But there are glimmers of hope. Greece recovered better than anybody could have hoped. Who would have thought we would have better information out of france then germany this week . Its a tough situation, but german manufacturing is really troubling. I think the ecb is going to pull as many tricks out of their hat as they can to help, but there are not that many bullets left. Vonnie proshares is 35 billion under management. Im curious to what you are seeing flows wise. Obviously you are putting your Investment Advice out there. Simeon one of the strongest areas of flows we see is in our , our flagshiph product. These are firms that have grown their dividends for a really long time. People have been flocking to them this year because of the defensive properties, in q4 they theyvery strong, but deliver earnings and cash flow in tough times. We are near and earnings recession. These of the kind companies that can deliver earnings even when they are hard to come by. Thats one of the sweet spots for us in this environment. Guy if the u. S. Economy looks good right now, why not simply buy Growth Stocks . Simeon Growth Stocks are a little cheaper than they were, but i would prefer a combination of quality and growth because you have volatility and leverage when you go to growth, so any hiccup is magnified. So why do you need to roll the dice if you have a combination of quality and growth . You can get almost all the participation youre looking for, but be a lot more protected if we do have some surprises to the downside. Guy the dividend yields on the s p is above where the bond market is right now. Is that sustainable . Simeon im not sure i take that as such is important signal. People forget something as such an important signal. People forget something, and that is if you are trying to look at a longterm trend of dividend in the u. S. , people forget that up to about 15 years ago, dividends were taxed at the marginal tax rate, and buybacks and share sales were taxed at the Capital Gains rate. It troubling when people immediately say the dividend yield is so high, is that an issue. I dont think it really is at this point. Vonnie thanks for coming to see yesterday. Simeon hyman is proshares Global Investment strategist. This is bloomberg. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is Bloomberg Markets. Value strategies continue to fall behind, continuing the underperformance that has persisted through most of the cycle. Relative valuation levels becoming increasingly more attractive. Can the environment shift enough to help turn things around . Lets bring in peter chung of bloomberg intelligence. About what you think drives value strategy, it is typically an environment where cheap stocks outperform more expensive stocks. It is typically the systematic fashion are we take a margaret take a Market Neutral position with exposure to cheaper stocks, less exposure to more extensive name. The cheaper stocks tend to be cheaper for a reason. Theres a fundamental catalyst working against specific companies or an industry that is holding back the valuations from those companies from rising. In the present environment, two key things hampering value strategies. One is that the cheap cost of capital has made it easier for markets and investors to pursue more expensive names, where they can bid two up these Company Business models. The other thing is that the economy has been good and positive, but hasnt had a robust, broadbased growth. Weve been averaging about 2 gdp growth since 2010. Because of that, theeconomy hasd economics are pushing more of these valueoriented Companies Hire just havent been there. Guy the underperformance is pretty galactic. What are the early signs that you would look for that things could be shifting . As you said, the words value and trap spring to mind. Peter thats exactly right. Im a little concerned about what the performance of value is going to look like over the mediumterm, the next 12 months, because of those can fundamental Drivers Behind how i think about value strategies. One, i dont think we are going back to a place where the cost of capital wont be accommodative for cheap markets. More combination could only pursue more expensive names, in my view. Likewise, Economic Uncertainty hampers the environment. Economic data continues to provide uncertainty to markets, the value of that just isnt there. Vonnie peter, things again for joining us. That is peter chung of bloomberg intelligence. Dont forget, you can check out factors to watch on your bloomberg. Ftwt type in the function. Volkswagen is denying a report that its ceo would be interested in buying a stake in tesla. Vw calls the report in a german magazine unfounded speculation. The magazine said Herbert Diess would invest in the carmaker immediately if he could. Apple is getting ready to unveil a basket full of new hardware for the coming weeks and months. Among the devices, three new ipads, andgrades to its largest laptop in years. The main feature of what is called the pro iphone will be a new camera system that can capture ultra wide angle photos and videos. Amazon is launching a 15 billion charm offensive, spending the money to help thirdparty merchants boost sales. Amazon has been criticized for wielding too much power over sellers. Some of the money will be spent on a dashboard that helps sellers decide what new products to carry. That is your latest Bloomberg Business flash. Ahead, a daystill and a night on the airplane. Sydni to you new york sydney to new york, sydney to london. If that something youd be interested in . We will talk about that next. This is bloomberg. Im all about my bed. This mattress is dangerously comfortable. When i get in, i literally say ah. Experience deeper rest with the awardwinning leesa mattress. This bed hugs my body. Im now a morning person. The leesa mattress is designed for every body. Providing strong support, pressure relief and optimized airflow to keep you cool. Hello bed of my dreams. Order online, well build it, box it and ship it to your door so you can try the leesa mattress at home. Love it, or get a full refund. And rest assured, returns are free and easy. I love my leesa. Today is gonna be great. Find out why so many people love the leesa mattress, then try it in your own home. Order now to get big savings but only for a limited time. Just go to leesa. Com today. You need this bed. Vonnie from new york, im vonnie quinn. Guy from london, im guy johnson. This is Bloomberg Markets. s get a first word date first word news update with kailey leinz. Kailey the labor market is still showing signs of strength. Filing for Unemployment Benefits ,ropped to a fourweek low below all estimates in the bloomberg survey. The number remains near historically low levels. Another sign that europes largest economy is slowing down, german manufacturing shrank for the eighth month in a row in august. Overall Business Confidence declined, and orders fell for the first time in four months. Factory employment fell at the fastest pace in seven years. In italy, president Sergio Mattarella is beginning highstakes talks to end the political crisis. He will meet with political leaders to try to create a viable governing coalition. Only mattarella has the power to nominate a new leader. Parties morewo time to enter formal discussions. Do you think you could put up with a 20 hour nonstop flight . Qantas will run test flights from new york and london to sydney starting in october. The boeing 787 will only carry about 40 people, most of them employees. They will undergo a series of medical checks. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Vonnie thank you. On that note, thats, what, six movies and may be couple of sitcoms . I think its totally doable. Guy i think you are right as well. Its basically a day and a night. You can already get 19 our flights get 19hour to the other side of australia. The thing is, do you want to or doha . Ubai ord they built all these mega hubs in the middle east to try and basically provide a stopoff point, change airplanes, and then go down under. Youve got to wonder, if you can go direct, tim clark over at emirates, is he going to be worried about this . I think it is totally doable. Vonnie the interesting thing is that they are actually going to be testing with a Skeleton Crew to see the locations for the human body, which is almost like flying to space. They have to do that for on. Onauts and so you wouldnt have thought that would be necessary on airplanes come but the question is, do you then have to ask for medical checks for people who want to do these long flights . Obviously now it doesnt seem to be a factor, but if they have 20 hour flights, will it be a factor . And what is the delay . It could very easily turn into a 23 hour, 24 hour flight. Guy if you land in dubai and your flight is an hour late, and you miss your next leg down to australia, thats a real pain as well. At least when you get on the plane, you know youre going there. Anyway, we will see. Apparently 2022 is when it will happen. Vonnie speaking of other continents, 11 straight weeks of protests are taking their toll on hong kongs economy. Stocks are poised for their worst quarter since 2015, and businesses are starting to respond. Hsbc has broken its silence on the unrest. Bloomberg markets and anchorerg markets asia yvonne man is with us to explain. Anchor shery ahn is with us to explain. Hery this is coming after they had told us through email that the bank has always respected their employees having their own personal views on political and social matters. Guy hong kong stocks are having a really miserable time as a result of this, but is it just down to the protests . I would imagine there are some other factors in the mix as well. Its not as it hong kong is going to be completely immune to what is happening on trade. Shery hong kong is such an open economy, so you are getting this from trade tensions, geopolitical issues. Unrest not helping matters. It has been a very bad quarter. We are talking about 600 billion of value being erased since june. Also, the chinese yuan now past the seven level. Its bad news for the hang seng index. You can tell that this is going to really have an impact on their profits, on their earnings, so analysts predicting that operating income will slump 19 this year. If you thought you were going to go bargain hunting in hong kong because the evaluations are getting more attractive, think again. Those multiples dont look good. We speak with a lot of Business Leaders on Bloomberg Markets asia. I would have thought that was trade tension, Business Sentiment would already be soured. Our business is expressing any concern . Shery we are seeing more and more concerns coming out of billionaires, for example. A lot of those rich people have been hit in hong kong. They have kept quiet, but more and more we are seeing statements come out from the former chairman of developer we lock. Hong kongs richest man, his net worth was down about 12 , perhaps more in the past couple of weeks. Lockwe are talking about other businessmen also come very concerned. And analysts, such as from jeffries, that we were talking to last night were telling us that these Property Developers should be concerned. Even after the protests are done, a lot of the resentment in hong kong lies on the fact that it is really hard to make a living in hong kong, to own property, because everything is so expensive. All of that anger is against those tycoons, Property Developers, and then you can see some boosting of subsidized housing to improve affordability, so that means those property prices and developers margins would get hit. Guy you almost wonder whether that needs to happen just to calm the situation down. The other thing i was going to alibaba haskly, delayed its listing in hong kong. Thats quite a big deal for the chinese. Do we have any idea when it could happen . That is a major listing that is not happening at this point. , and what ais huge pride to have that listing in hong kong after regulators changed some rules for the hong kong exchange, which is the reason they couldnt do it in hong kong in the first place. But now with all of these tensions going on, we have no idea when thats going to happen. Weve heard from media reports that this could get delayed. At the moment, it seems that everything is pretty quiet. We have seen alibaba when it comes to the performance in their business really not doing very badly. It gives you a picture of the ecommerce boom that is happening in china, so we will have to keep a close eye on what happens to that listing. So far we have seen some concerns coming from chinese is ons is that were planning perhaps making their public debut in hong kong. Speaking to bloomberg, expressing some concerns about this. Vonnie we will continue to watch bloomberg daybreak asia. That is shery ahn, bloomberg daybreak and Bloomberg Markets asia anchor. Guy volunteer is one of the biggest names in tech, cofounded by peter thiel. It is opening up to bloomberg now. With alex karp come pal and Tier Technologies cofounder and ceo, discussed the future alex karp, appellant Tier Technologies cofounder and seek alex karp, appellant alex karp, Palantir Technologies cofounder and ceo, to discuss the future. It is a radical decision to say you will not help the u. S. On this. I believe it is every right of google and their engineers to make a decision. I believe, however, that they should not be making this decision. I dont think any other consumers could make the decision. U. S. Legislators and voters should make these decisions. So do fact, google and other companies are deciding what the role and stature of the u. S. Will be in the present and future. I think most people, including myself, in this country and around the world, are very uncomfortable with the idea that google and other countries will define who are the winners and losers today, tomorrow, and the day after tomorrow. , if yous your position think the small number of People Living on an island that seems to be devoid of any cultural norms, should make these decisions, that is a radical position you have to bring to the American People and explain to them why youre making these decisions. At palantir, we have a position that makes us largely unpopular. We believe that those decisions should be made byat the u. S. Legislator, by our representatives, and by the courts, and we citizens should agitate for views we believe. Reporter in other words, palantir is going to work with a government, whether it is the Trump Administration or guest we have worked for three administrations. As long as they are putting checks and balances on the think theseon, i laws should be changed. I grew up in a progressive family. I spent half my life in what could be argued is the most aggressive area of the world and europe. I believe there are checks and balances. I believe our legal system is way too brutal in that we need to have a discussion about that. I dont believe the brutality of our legal system should be adjudicated in a tiny island on which people live that have very different ideas than the majority of our citizens. Reporter another person who made a similar critique is peter thiel, cofounder of palantir and investor in the company. Theres a suggestion that peter thiels closeness to the Trump Administration has somehow benefited palantir. Im curious what you say to that. What is your response to that . Reporter peter guest peter and i have had a long, important print ship. I view important friendship. I view him as a close friend. He plays a role at palantir. It is ludicrous to believe our relationship between peter and this of mensuration has helped our company in any material way, especially given the fact that ive clearly been more publicly than i wanted a critic of this administration. Years toy, it takes 10 build the kind of Customer Base weve built. Most of that was built under the obama administration. I dont see any material evidence for this, and i view the claim is ludicrous. Guy palantirs alex karp talking to bloomberg. Interesting insight. Funny . Vonnie . Vonnie we are seeing a bounce today for major indices. Now that has been erased, and the s p 500 is down 1 10 of 1 sorry, down 4 10 of 1 . The dow is down 1 10 of 1 . It appears weve had a downturn in just the last. Couple of minutes. We will investigates in just the last. Couple of minutes. In justestigate the last couple of minutes. We will investigate. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is Bloomberg Markets. Weve had quite the sharp selloff in the last few minutes. The nasdaq is down 9 10 of 1 . Now just five stocks in the dow are higher, including boeing, jp morgan, goldman, coke, and home depot. The rest are in the red. It is really across the sectors. Time now for stock of the hour. At aooking at german german like Company Rising 6 over the last few days. Emma chandra has the details. Emma that pop in the stock came tothey agreed to allow ams submit a takeover offer for the business. It would need its shareholders to approve a Capital Raise to fund it. This puts pressure on private Equity Companies to raise their offers, especially as osrams biggest shareholder alley ends shareholder allianz has called that bid too low. Earnings have suffered as the company is heavily exposed to the automotive industry. About 40 of revenues at the end of 2018. It has also issued a series of profit warnings and heritage very public spat over strategy with its former shareholder siemens. Company will the lie in the hands of its shareholders. Bloomberg theg takeovers allow them to choose between competing business concepts, and whichever bid wins, they need at least 70 of them investors in order for offer to be successful. It will likely have until october to decide. Guy thank you. Sorry, vonnie. Italys Matteo Salvini is speaking right now. Hes briefing reporters. Hes just come out of a meeting with president mattarella. In terms of what he is saying at the moment, the league is united. He wants to act in the best interest of italy. There have been a lot of accusations, particularly from giuseppe conte. The former Prime Minister suggesting he acts in the best interest of Matteo Salvini. We will continue to monitor this. Salvini wants an early election. That is why he has brought down the government, but mattarella is suggesting that he may be able to put a government together between renzis party and the Fivestar Party with dimaio. Whetherable to put a government that is sustainable is the question. Apparently mattarella once an answer on that question by the end of today. Salvini is saying elections would be the way out of the current crisis. That would certainly suit him. The other situation worth monitoring, this may have been the market moving events in the last hour, but to spank bundesbank sees no need for german fiscal stimulus right now. Time now for a Bloomberg Business flash, a look at some of the biggest business stories in the news right now. A strike by british pilots against ryanair appears to be having very little effect today. By theights operated carrier have been going as scheduled. The walkout began on the eve of the countrys biggest travel weekend of the year, the august bank holiday. Socgen hired bain and other numbers underut the microscope. Bloomberg has learned the bank up toto slash expenses by 20 on services such as i. T. And hr and the finance department. And its turning out to be a dismal 2019 hedge funds. 15 morelready bled money this year than all of 2018. Net outflows for the year are now almost 56 billion. Concerns of underperformance are mounting. That is your Bloomberg Business flash. Carbonized two decarbonize. To we are going to talk about that next. This is bloomberg. This is bloomberg. Guy from london, im guy johnson. Vonnie in new york, im vonnie quinn. This is Bloomberg Markets. In the face of climate change, utilities worldwide are setting goals to reduce Carbon Dioxide emissions, but when it comes to crunching the numbers, they are not stacking up. Here to tell us more is eric kane of bloomberg intelligence. Tell us about this tracker, and what does it show regarding Company Behavior . Eric we are seeing a majority of companies, at least in europe and the u. S. , setting carbon reduction targets. Japan and china are a little bit behind in terms of setting targets. When we look at those targets against iea, the International Energy association, targets, we see that most companies are falling short of what would be needed to maintain warming below two degrees. Guy one thing that has always concerned me about this whole this standard of comparing apples with apples instead of apples with oranges. Even the language around some of this stuff is very hard to decipher. How much is that part of the problem here . Eric its a great question. I think it is a similar answer to the first one, in that in the u. S. And the eu, we see relatively standardized is closure standardized disclosure, and units that are trackable, targets that are comparable. In japan and china, disclosure is really lacking, and we are seeing far fewer companies establishing targets. That kind of disparity really does make the analysis a little more difficult. Vonnie are there regions, geographies, or sectors doing it better than others . Eric certainly. In the eu, we see the most proactive action towards decarbonization, and the u. S. Is slightly behind. There are companies that stand out with in both regions. , nisourceted states has pledged to reduce emissions 95 by 2030 and replace coal powered plants by renewable capacity. Vonnie it is a fantastic report, and very explainable the way you write it. And of course, the tracker is phenomenal, so thank you for joining us. Eric kane of bloomberg intelligence. Do check out that tracker on your bloomberg. Focus. R futures in bob iaccino joins us from the cme. We had twostens go negative again, triggered by selling off or vice versa. How did you all take it down there at the cme . Bob it is more of something that was noticed rather than traded. We are seeing a lot of activity in the Options Market in the 10year note especially on the put side, not the call side. That tells me there are still outright positions to get to lower yields. We are seeing lower prices, higher yields, but they are hedges, not positions. The spread last week got all the way back to positive eight. To get this inversion now feels like a move towards a deeper inversion, and that is what is pressuring the fed. Vonnie we are also looking at jackson hole, already getting some comments from Esther George, for example, and others. How much will that play into your strategy in down at the cme into the weekend . Bit. Quite a we will not go deep into decisions until after jackson hole. At least right now, they dont feel like an aggressive easing campaign is necessary. The more this inverts, the less likely you are to hear that kind of speech coming out of voting members. Vonnie bob, thank you for joining us today. Bob iaccino of past trading partners from the cme with futures and focus. Guy i think a lot of those comments coming out from jackson hole already. We had the Esther George comments. Markets not wild on that at this point in time. Powell tomorrow, though. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Guy 30 minutes left in the european trading day. From london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on Bloomberg Markets. Guy we are starting to get price action on comments being made on other side of the atlantic on either side of the atlantic. Stoxx 600 now down by 6 10 of 1 , probably led by what is happening stateside. We will update you on that in just a moment. The pound is trading at a 1. 22 handle. Maybe some positioning here, but also some comments from 1 , probably led by what is happening macron and german chancellor Angela Merkel as Boris Johnson tours europe suggesting all is not lost when it comes to the brexit impasse. We will see. The pound responding pretty positive that. Italian 10 years beginning to nudge a little bit lower. Salvini over the last few minutes blowing a kiss as he walked out to the press