Xantac, which is well known in the United States, generic zantac, which is well known in the United States, because of potential carcinogens. It is produced by a division of novartis. As you can see, we are seeing a slight reaction in the european version of novartis. Here in the u. S. , the adrs are down that little bit more. Lets get to the other stocks that are moving. There are stocks lower in the s p 500, which has brought the s p down to below 3000. Around 1. 1 g steady lower. Irane getting news that definitely sponsored the attack. That is what the press conference is saying. The 10 year yield, 1. 75 . Fedex the worst performer right in the u. S. After what analysts are calling a dire forecast. Guy the saudi press conference is still ongoing in riyadh. The Defense Ministry announcing that this weekends attacks were unquestionably sponsored by around. Weekends attacks were unquestionably sponsored by iran. Pointing a finger vaguely in the direction of iran at the moment, but we are waiting for further details for that finger to be to be pointed a little more concretely. Bloombergs yousef gamal eldin is joining us now from riyadh. Your assessment of what the s have been saying. A lot of images, a lot of physical evidence that has been displayed on the floor of the press conference, and very much an effort to try and build a case that this has been sponsored by iran. You mentioned some of the key points. The spokesperson in this news briefing, when it comes to where this was fired from, they are saying that theyve done the calculations, and it could not have come from yemen. Their argument is it would have likely come from a rock or iran come from iraq or from iran. Building the case to share evidence with the united toions in diplomatic azure try to pressure iran even ours after theh United States increased sanctions, or we understand, the president asked for further sanctions on iran. Vonnie in terms of personnel, we have mike pompeo landing later on in saudi arabia. We also have a new National Security advisor now, robert obrien. Then we have iran potentially not coming to the United NationsGeneral Assembly at all. It depends on the visas that are due to be issued by the u. S. Iran says it is not coming if it does not get those in the next few hours. Where our people most likely to meet, or are all meetings off the table now except between the u. S. And saudi . Yousef at the moment, the understanding is that the meetings are very unlikely. You can find some intermediaries like switzerland that could be playing a role, and have in the past. At this point it will come down to potential he escalation before deescalation, and how one of the top officials told me here on the sidelines of an sometimes, for breakthrough, you need a little more tension without triggering a wider conflagration. One thing on the ground here in riyadh and beyond is that there is no interest in something bigger. There is a clear understanding that an attack would set off a fire that would be very difficult to control, which is why there is so much caution. But with that being said, the fact that you have this case being built and potentially on its way to the Security Council means that there still could be a lot more tension before we see that deescalation potentially at some point. Believe do the saudis that they can defend themselves . They have just been exposed on a very substantial scale. Yousef they have been, and theyve got something to prove. The narrative here in the public discourse, in the media and the newspapers and a lot of the talk shows that are, of course, sponsored by the official government line, is that this cannot go unanswered. I think this is a very important point. It is not just a to domestic pressure to answer. It is also a clear line to draw in terms of the reputation of saudi arabia that you cannot get away with an attack like that without some sort of retaliatory action and be held accountable. The talk here is that this has been an attack not just on saudi arabia, but on the Global Energy network. It is very much an encouragement to get that point across, and to justify the billions of dollars that have been spent on defense. The key question remains how pass allnes can of those Defense Systems that we had thought to have been very advanced. We will continue to monitor that press conference for more on the impact of these developed out of saudi arabia on global markets. We are joined now by jane foley, rabobank head of fx strategy. If this situation escalates, what does it mean for Foreign Exchange markets . Jane effectively, it is going to be the yen, the currency of g Political Risk of geoPolitical Risk. The comments we just heard that there is an understanding, that there isnt really a will to escalate this issue even further, we know that trump is a deals man, not a military hawk. That is why dollaryen has moved this week, but we are not trading at 1. 05. If there was any sniff of a real conflict, the yen would be significantly higher, and it is not. We also have the swissie. That one, of course, the Central Bank Says it is likely to affirm tomorrows meeting. Then of course there is the dollar. The dollar is an interesting one. It is a safe haven for a lot of investors around the world. It is the dominant currency in the global payment. That currency is likely to remain firm if we saw an escalation of tensions. Guy as a result of this attack, would there be extra demand from saudi arabia for dollars . Jane i think if there was escalation, there would be increased demand for dollars from asian investors, from middle east investors, from african investors. If we look at the demand for dollars over the last decade or so and the circulation of dollars, it has gone up quite significantly. Trump once president a weaker dollar president bymp wants a weaker dollar, he keeps on attacking the fed on easing, and why the dollar remains firm. When we see Global Growth slowed down, when we see geopolitical dollar steps up. Vonnie let me ask you about this afternoon and what you are i dissipating out of the Federal Reserve. Of course, weve had the repoional hiccup of operations over the last few days. Jane it will be interesting to see if that is addressed by the fomc today. In terms of the policy, i think the market is clear in its expectation. We think there will be another 25 basis points move later on this year. The market is split on that. That is why the guidance is really the crucial element of todays policy meeting. Suggest going to another emergency measures should come this year or not . In addition to that is this issue of the repo market. From the market perspective, everybody understands that this isnt about a piece of bad news. This isnt about a bank about to go bankrupt. You could argue that this is structural, insofar as there are certain issues that came together this week that created this spike in rates, this lack of liquidity for the dollar. So we do need to see some resolution to this issue, and permanentme more procedure put in place to try and deal with this issue. Vonnie i want to bring in some headlines. Jamie dimon, ceo of j. P. Morgan chase, is speaking right now at the Business Roundtable ceo News Conference. The Business Roundtable is the group that changed its mind on who is important as a stakeholder in corporate america, to actually include people other than just the shareholders. That was a very recent move. That,today talking about also about the Federal Reserve moves, saying the fed did exactly the right thing on money markets. The the distillation dislocation would be far more dramatic and bad times, and that it wasnt a big deal. He says the usmca is better than nafta or no trade deal, and that a rate cut wont upset the concern about the impact of no trade deals being made. How is that going to flow through foreignexchange market . For a time, we were just staring at the renminbi. There will be other disorderly moves if we get some resolution one way or the other on trade. Jane we might get something in october in terms of the highlevel talks we will have them. Markethat would calm expectations and remove tension for a little bit with respect to the renminbi, but if we look ahead to the u. S. Election, that sort of timeframe, i think theres every reason to anticipate that some tensions between china and the u. S. Maine on some sort of level. I think this about more than the resolution that we could get, october. In the timeframe of the next 12 months, we will get times when the market is very concerned about the level of renminbi and world growth. Guy jane is going to stick around. Rabobank head of fx strategy, staying with us. Now i check of the markets. He is abigail doolittle. Heres abigail doolittle. Abigail the dax in germany up about 0. 2 . In the asian session, the nikkei down ever so slightly. The mover to the downside, that dow transports, down 1. 8 . As investors wait for the fed these repo operations, we have the transports plunging on fedex. Lets take a look at a two day chart of fedex, on pace for its worst day since 2008, down 14. 4 . They missed estimates, slashed the outlook, blamed the trade war and Global Growth. It is interesting that that is not sending broader markets down, considering that is pretty bearish about the plumbing of the transportation system. Lets take a look at oil. We are going to see that oil is down, but off of those lows during that saudi press conference. Brent crude down about 0. 6 . Wti down 1 , down for a second day in a row, but on the week, as supply has been disrupted, we do have oil trading higher. On the day, we also have bonds trading higher. When you put stocks fluctuating right around even with oil down, another risk asset, and haven bonds higher into the fed, a bit of a risk off tone. We are all talking about the fed meeting later today. Lets take a look at the 10 year yield in the terminal because it has been pretty interesting recently. A huge move lower for yields this year. The big rally and bonds, and not aslong ago, that big backup bonds sold off the most since 1962. That put the 10 year yield above the 50 day moving average. Right now below that 50 day moving average,s adjusting we could see the 10 year trade in this range for weeks, maybe even months, based on past trading history. Vonnie thank you for that. I do want to point out, the function gtv on the bloomberg allows you to browse all of the recent charts featured on bloomberg tv. Catch up on key analysis, save your favorites for future reference. Gtv. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on bloomberg markets. Lets check in on the bloomberg first word news. Heres president donahoe. Courtney President Trump ordered tougher sanctions on iran days after a strike on saudi arabias biggest oil facility. Secretary of state mike pompeo blamed the strike on iran. 2015 nuclear the agreement, the u. S. Imposed sweeping sanctions on much of irans economy. Theident trump has chosen state department hostage envoy to be his new National Security advisor. Robert obrien would replace john bolton, who was fired last week. U. S. Home construction surged in august at the fastest pace since 2007. Residential starts climbed to an annual rate of almost 1. 4 million. A proxy for future construction, housing permits also rose to a high. Boris johnsons government is back in the spring court for day to of hearings day two of hearings. s lawyers are defending his decision to suspend parliament. Judges are asking for a written statement on what he would do if he lost the hearing. 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. On courtney donohoe. This is bloomberg im courtney donohoe. This is bloomberg. Vonnie thank you. Still with us, jane foley, rabobank head of fx strategy. What are your favorite pairs . According to the central bank, if we look at the elder it the dollar nokia could be moving certificate lay higher. Sterling is another one to watch. There are some signs of some movement within the johnson government that they are looking at alternatives for the Northern Ireland backstop. If they do manage next week to put it in front of merkel and some other eu officials, more positive news with respect to the newly ireland issue, i think sterling could really rally. Vonnie that is a bit of a binary trade, right . How do you play that one . You dont just by sterling, right just buy sterling, right . Jane over the last 10 days or so, the market has been covering short positions. Some of the issues weve been hearing with respect to johnson and his irish plans, although they have not been enough to appease the e. U. s demands, at least there is some movement. The market has been very short of sterling. I think many investors were very short sterling and wanted some good news here. I think there has been some short covering. That will obviously run dry if we do not hear some positive develop and so for the next week or 10 days. Guy in surprise from the snb tomorrow . Jane i think probably not. I think we will get probably the same as we had before. That intervention is a policy tool, unusual within the g10, but it is there. We do have the back of japan policy meeting as well tomorrow. Guy we are getting to that any minute. [laughter] jane but in many respects, i feel like it needs to see what , anded does first of all the swissie. Those are the safe haven currencies. Guy what else can the boj do . The boj seems to be all the way out in front in terms of policy formula should. People are looking at what is happening in europe and trying to examine what the boj has done, and trying to feed that back into europe. How much further can the boj push the envelope . Jane it is important to try to maintain some degree of steepness in that yield curve. That is why they have the yield curve control component of their policy. That has gone haywire over the last month, and created some speculation they maybe prepared to cut the short end rate even more. We havent had that sort of signal from them. It will be interesting to see whether or not kuroda allows that. It will be one thing to watch for the boj, but clearly they are doing an awful lot of stimulus anyway, and that is one thing to watch. I do think it is important for does firsthe u. S. Because if the fed does cut rates, if they are dovish, if they do manage to create some movement back into risky assets, that will be seeing the yen soften, and that will be a good thing as far as the bank of japan is concerned. Guy we are going to leave it there. Thank you very much indeed. Jane foley is rabobanks head of fx strategy. Some breaking news, vonnie. Vonnie yes, President Trump tweeting that did mr. Ration is theking california that administration is revoking californias waiver on car emissions. We were anticipating this. The Trump Administration had ,elayed a public announcement revoking californias authority to regulate automobile Greenhouse Gas emissions. The president has now declared it openly on twitter. Californiasg authority to regulate on gas emissions. As you can see, stocks moving just a little bit. This is bloomberg. Vonnie time now for a look at some of the biggest business stories in the news right now. Novartis, ist of halting all distribution of generic zantac as a precautionary measure. Regulators have been looking into a possible cancercausing agent in the heartburn medicine. Not providers will Health Coverage to stricking workers. United auto work to striking workers. United auto workers says the comely may have jumped the gun says the company may have jumped the gun, and may have to provide coverage. We are seeing lower equities. The dow down 0. 3 , the nasdaq down 0. 3 . Fedex is down about 14 . The dollar index before the fomc decision unchanged, and the 10 year yield is trading at 1. 75 today. Guy european markets as we head into the close a little more positive than in the United States, but not by much. Ftse unchanged. The dax and the cac 40 up. The market is certainly waiting for the fed a little later on. A little bit of a reversal from what we saw yesterday. Basically, markets are in fed mode. 2 00 p. M. Eastern time is when we get that decision. Plenty of great market coverage coming up. The close is next. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Guy 30 seconds to go until the end of regular trading in europe. European equities are firmly in that mode. We are watching to see what is going on. The ftse 100 absently unchanged. Dax up. Cap 40 barely budging. Markets are flat to up a little bit. The volume is all right. We are not seeing a drop off in volume. Markets are very much wait and see what the fed delivers later on. Risk on or risk off . It will all be in the press conference. 25 looks baked in. In terms of what we are seeing in terms of the sector story and what we are getting elsewhere, it is worth paying attention to. We have a lot of rotation recently in terms of the stock story. We have seen some defensive names going on offer and then being bought back. We are seeing this risk on risk off mode being represented into the market. Lets take a look at the grr function. You can see that clearly. Up at the top we have real estate catching a bid, utilities catching a bid. Oil and gas bouncing back. A bit more of a mix up, modeled up story. The auto sector trading more strongly. Not a clearly defined story. That speaks to what is happening with the fed. The bottom end of the market. They are normally seen as bond proxies. The Banking Sector down. 3 . The u. K. Back in focused. Industrials being watched carefully. I do not think youre getting a clearly defined story in terms of the risk off risk on mentality out of these markets. That sector story has been so pivotal of late. Real estate, utilities, oil and gas. In terms of some of the individual names, it is worth paying attention to what is happening with the luxury sector. This is a sector we will be watching carefully. We are not seeing such an outside move in richmond stop. Stock. Ubs turning a little bit more negative on the stock and that has been a factor on the downside. Cler is not exdividend. That has been feeding through into luxury sector. And then you have lvmh down. 7 . This sector has been talked about when it comes to the tariff story. I was talking to the airbus coo earlier on. We are talking about a wto dispute which could get uglier and potentially dragging some of these stocks. Pay attention to that. The european stocks broadly waiting to see what jay powell delivers at 2 00. Vonnie an interesting market event today. After the initial reaction, we are not seeing any movement and that is obviously in fomc function. Percent, even after inventories were staying allowed staying around that level. We did see a building inventories. Aroundyear yield staying 1. 75. The dollar index just above 98. When it comes to the individual stop names, fedex is the barometer for Global Growth. U. S. Growth down 14 . A dire outlook according to some analysts. Fedex did not classify it that way. Some analysts are pointing to Management Changes and how management has mismanaged steps. A whole not down amount, but looking into its generic zantac drug on pressure from regulators. Carcinogens potentially in their. We have seen that in a few cases of drugmakers. Alexi on pharmaceuticals down 5 . Adobe down on its outlook. One of the Better Stories is lenar, up 1. 4 . Those stories are few and far between. Whatwe were just seeing was happening with the european auto sector. European car sales falling sharply during the month of august, deepening the woes of an industry already battling sluggish demand and the challenge of rolling out electric vehicles, which is costing quite a lot of money. Joining us from berlin is our reporter. How bad is this number . It is a big drop . Their apursuing regional factor, the take away from jaspers assuming there is a regional factor, things are getting worse. And eight point 4 contraction in terms of registration. There is no way to get around that. The steepest drop so far this year. However, the comparison is somewhat skewed because there was a surge in registration. Like to like it is not that bad. You are seeing it in the car stocks, holding onto their gains. Not falling off a cliff. The basic sentiment is negative. You are absolutely right. We are coming out of the frankfurt car show. There should be around the time when there is a buzz in the market and people are excited about buying cars. That is not the case. The car industry is still struggling to move from a Combustion Engine to an electric engine. We saw a lot of these new cars on display at the show. Vw in particular made a splash. People are hesitant at this point, particularly here in germany. We also saw drops in markets like france and spain where people are in a waitandsee mode. The general environment does not help. People are concerned about the economic outlook. All of that feeds into a negative sentiment that is weighing on the sector and the industry itself does not see a recovery by the end of the year. It will remain in negative territory. Guy the United Kingdom and United States have a close defense relationship. Why is the u. K. Voicing concerns about a takeover by a bunch of u. S. Private equity guys . That is a good question. You would have thought that is nothing to worry about. There is not chinese involvement where you might be concerned about some kind of infiltration. It is probably a formality. If i were a betting man i would shareholders did in fact vote overwhelmingly to back this, a bit of noise coming out of the family that is not in favor of this. The u. K. Political sphere tends to sign off on these deals. We have not seen the u. K. Establishment not throw its weight behind them. On the contrary, the u. K. Will try to send a signal they are open for business and freetrade and this is a case where they want to prove that is how they operate. Guy thanks very much indeed for joining us. Busy day. Vonnie in the u. S. , markets expect a 25 basis point cut from the fed. Focus on potential signals for future easing. Bloombergs Michael Mckee joins us from washington. We get the summary of Economic Projections as well. What will it tell us . Will today, yesterday, and the weekend events be factored in . Michael some will and some will not. It is early for the fed to make any conclusions about what might happen with oil prices and how that would affect the u. S. Or Global Economy since we do not know where we are going. The repo issue they have expected for some time. They knew that at some point the level of reserves would be slow enough they might have volatility in the markets. At that point they would begin to buy more assets to keep the level of reserves steady. They did not anticipate at quickly. Do not expect a big move from the fed, just an acknowledgment that it is happening. Some sort of announcement they will do open Market Operations as they have done in the last two days as events warrant. The big issue, a 25 basis point cut bacon. When everybody wants to know is what they do next. At dot plot, you take a look on the bloomberg, what we have in blue is where we started the year, yellow is where they are now. Those numbers in the red circle will probably move down some. Do they forecast two rate cuts or no rate cuts for the rest of the year and what they say about 2020 . That is what markets want to know. Back to the repo issue. The fed is likely to increase the Balance Sheet. Why isnt this qe . Qehael when they were doing they were buying assets to push the demand for liability and pushing down on Interest Rates. This would not have an effect on Interest Rates. When currency rises, that becomes a liability and they have to offset it with assets. They will add to the Balance Sheet enough to keep the level of reserves steady once they determine what that level should be. It may be higher than they anticipated, but it will not have an effect on Interest Rates. They bristled at the idea it would be considered qe. Vonnie a fascinating development. Were dissenters last time. Focus, giventhe market events . Michael you could see dissents. Esther george and Eric Rosengren have already made it clear they do not think the market needs another rate cut. Jim bullard once a 50 basis point cut. He could do a dovish dissent. They will possible decide they have made their point and do not need to dissent and do not want to tell the markets the fed is divided because that hinders the policy transmission and we see no dissent. We know where most of the voters come down. Vonnie i have seen talk about how it is used when we used to watch m1 money supply back in the day. Is that what it feels like watching these repo operations . Michael it is probably not the same. In those days it was paul volcker using the money supply as the lever to control monetary policy. You did not know what the rate was. You try to figure it out from the movements in the money supply. In this case, the fed has reduced its Balance Sheet and it needs to have enough reserves available. The markets need enough cash available. They have to figure out what that level is. As they figured out, things smooth out. Vonnie thank you for all of that. Michael is in d. C. Stay with bloomberg, we will bring you live coverage of the fed policy decision followed by jay powells News Conference and all the questions including the one Michael Mckee is going to ask. It all starts at 2 00 new york time, 7 00 p. M. London time. Guy that is the main event. European equity markets flat into the close. Very Little Movement during the auction process. Slight bid lower but not much. We are waiting for 2 00 eastern, 7 00 in the u. K. And the fed. Do not forget to tune into bloomberg radio, the cable show. Jon ferro in new york, i will be joining him in london. We will be talking a lot about what will be happening in d. C. What is been happening in the markets over the last two days. Find us on dab Digital Radio in the london area and around the world on all of your bloomberg devices. This is number. This is bloomberg. Vonnie live from new york, i am vonnie quinn. Guy from london, i am guy johnson. Lets check in on bloomberg first word news. Here with the details is courtney donohoe. Courtney the Federal Reserve is likely to cut Interest Rates for the second straight meeting but policymakers may be unlikely to signal further cuts. President trump will not be happy with another quarterpoint cut. Last week he called fed policymakers boneheads. He said they should reduce rates to zero or lower. In israel, and election do over seems to have produced a deadlock between Benjamin Netanyahu and his opponent. The countrys longestserving ,eader gambled on a revote possibly keeping himself out of jail. Neither netanyahu nor benny gantz can form a coalition. Official results will not be out tomorrow. In india, the government agreed to ban ecigarettes. Move is aimed at the growing use of ecigarettes among younger people. The Trump Administration has scrapped californias authority to set tougher auto admission standards. President trump tweeted the move will route will allow the production of cars that are cheaper and safer. Revoking the standards will have a major impact. 30 other states follow its lead and represent about a third 13 other states follow its lead and represent about a third of u. S. Markets. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am courtney donohoe. This is bloomberg. Guy thanks very much. We continue our coverage of the climate now series. An Initiative Led by Columbia Journalism School on Climate Change. Today we are taking a closer look at how Climate Change impacts the Global Economy. Emma chandra has more. Climate change will have a major impact on employment, both on jobs and the way businesses operate. That is according to the yuan agency, the International Labor organization. The most Immediate Impact will be on jobs. Losses are expected as workers are displaced, operations disrupted, and infrastructure damage. For businesses, they seek damage to their assets they see damage to their assets and deteriorating working conditions impacting productivity and worker wellbeing. Is impact of Climate Change supposed to be across sectors and geographies when it comes to jobs. I want to highlight research out of the fed that focuses on retail work, as they make up 10 of u. S. Employment. Take a look at this chart, and you would see how inflationadjusted retail wages have been rising since the early 2000. That analysis by the fed suggests that is likely to be disrupted. They see wild swings in retail work because the sector is so sensitive to the weather patterns. Climate change does present economic opportunities. A report from the u. N. Last year saying shifting to a low Carbon Economy globally could release 26 trillion in economic benefits. They say over the next 10 years that could create 65 million low carbon jobs, engage more women in the workforce, and drive local gdp much higher. The key is that bold, Decisive Action to shift to a low Carbon Economy. That requires the buyin of Business Leaders and world leaders. Guy bloombergs emma chandra. Thank you very much, indeed. Vonnie time for our stock of the hour. Roku shares down 10 after facebook launched a video streaming device that could upset rokus position as the leader. Taylor riggs has more. Taylor up until today roku has been on a Straight Path upwards. Every analyst says you cannot launch a new streaming platform without launching it on roku given rokus massive dominant position. This is the first day you are seeing a cool down in the stock. Given the heightened competition in the space, facebook and comcast announcing some competition to take on roku as they announce new streaming devices. I want to look at where roku sits. They used to be very dependent on devices. 54 of their sales came from actual devices. That is now lowered to only 5 . Much more about the platform than the actual device. Do not get me wrong. Roku is still a dominant player in this space. They have about 15 of market share. Amazon fire is next, only 12 . That is one of the reasons guggenheim upgraded the price target to 170 from 119. Saying rokus dominant position will allow them to expand internationally. You have to wonder how the news from comcast and facebook plays into that story. Guy you spoke to facebook yesterday about the launch. What is it saying about launching the product . It is a very competitive space. Taylor it is a very competitive space. I asked why do this now, how do you differentiate yourself . Take a listen. The most important thing people do is connect with each other. Until now, these devices are not focused on that. They are focused on connecting you with content. When it comes to connecting with the people you care the most about, that was missing. Taylor like you said, facebook trying to differentiate themselves between connecting with people, and not just people, but content. Facebook has about 152 million users, roku 40 million. Seeing competition and the streaming wars continue. Vonnie thank you for that stock of the hour, roku. Coming up, it is our global battle of the charts. That is next. This is bloomberg. Guy time for a Bloomberg Business flash. A look at some of the biggest business stories in the news. Since the 2015 paris climate accords, nongovernment organizations are helping companies figure out what their contribution should be. The group is responsible for about 1 of overall climate pollution. If they meet their goal, experts say they will cut emissions by almost 30 by 2030. Asset managers blackrock and vanguard are said to be falling short when it comes to fighting Climate Change. According to the Nonprofit Group majority action, the firm voted against at least 16 shareholder Climate Change proposals. There backing wouldve given the measures majority support. Proposers have ended half the value of investment. Vanguard says its engagement with companies can lead to meaningful changes. And that is your Bloomberg Business flash. It is time for our global battle of the charts. Remember, you can see these on your bloomberg. Gtv is the function. Eric balchunas will kick things off. Eric value is back. Everybody is talking about value stocks. Be careful in picking. There is a huge dispersion of returns. They have Different Levels of value in them. Gap in there was a 100 between the bestperforming value etfs and the worst. Behind me, you can see the two at the top are more devalue. They will have stocks you may not like, apparel companies. Less holdings. More volatile. D, which isw is iw the bestselling value etf but it has a lot of beta, so not a lot of pop. When value is working, the question is how deep you want to go. That is a question a lot of investors are wrestling with and we will see if the performance of the deep ones continues to rise. We think they will see some flows. Right now everyone is sticking to the more value etfs that have more beta. Guy certainly want to watch out for. Vonnie i know youve been talking a lot about value stocks and the rotation. I think i have something that might entreat you even more. That is rugby. This weekend at the Rugby World Cup, the leading nations are in rei am going to change this because i got to the legend by mistake but that it does not make much sense. The currencies we are keeping an ion are important and those fans that will be attending the Rugby World Cup are in trouble because all of those currencies have weakened versus the yen, which has been a haven over the last few months. The white line, is the south african rand weakening substantially versus the yen. The british pound weakening as well. The blue line. Someof these have reversed of those declines in recent days. The Australian Dollar as well as one of those currencies. Only one matters, and that is the euro. People going to the world cup are feeling a little bit more pain. Guy they are. The pound is certainly going to hurt. Apparently they are concerned about a beer shortage as well as japan. Vonnie quinn wins. You bring up the Rugby World Cup. I love the value rotation story. Rugby will dominate things from here. If you want to fill in your bracket, on your bloomberg. Bloomberg etf also coming up. This is bloomberg. David from bloomberg World Headquarters in new york, im david westin. Welcome to balance of power, where the world of politics meets the world of business. On the brief today, Carl Riccadonna on the imminent fed decision. From london, Mark Champion on saudi arabias charge against iran. And tyler page from washington on the latest all of democratic president ial candidates. Carl, what are we expecting a short time . I think we will see a 25 basis point cut. They can guidance for additional easing later this year but i do not think the fed wants to be too specific on what that will look like ahead of claytor clarity in trade negotiations. One of the david things we have been talking about is this repo. Will they address that . Carl they should address that. It will be something probably powell will address in the press conference and i think you will be asked questions about this. There are two issues. One is temporary