Transcripts For BLOOMBERG Countdown 20160722

Christine lagarde says she was miss the download outlook. We will talk about the investment lessons from brexit exclusively on bloomberg. Welcome to countdown. Manus i am manus cranny. Weve got a little breaking news for you. Anna lets start with agrochemicals. Firsthalf net income, 1. 06 billion. Firsthalf operating profit, 1. 35 billion. He sales number, those are the numbers coming through. I have to channel Morgan Stanley and say its unlikely to move the shares given the ongoing takeover bid. The committee on Foreign Investment in the United States, they are an interagency watches overt global trade, and it has been casting its eye over the cam china deal. The timing of the deal will be an interest. These numbers, just coming through. Weve got a number that compares against the estimate, 1. 77 billion. That looks to be a little bit light. Maybe that will move the numbers, but crucially, we are looking for detail. Manus ive got lights for you . Have you switched over to leds . Total ledbased sales, a growth of 25 . This is 53 of the companys sales, the seventh consecutive quarter of year on year improvement. Quarterfor the second. F this year 161 million. 9. 3. Margins come in at net income of 57 Million Euros, and that includes separation. 60 Million Euros at the end of the Second Quarter of 2015. We are going to be speaking with the ceo of the lighting division. Stay with countdown. Manus syngeta saying they are in constructive talks, confident about closing the transaction by years end, which is what they previously said. Lets talk about the currency markets. Debatebig matter about the yen. Is it about what the fed says the trajectory is going to be . Manus Deutsche Bank made this point. What ive got is the yen bowls are back in town. They say, 105, down from 106. The market is moving in a different direction. If you look at the cwi, the yen still the strongest currency. 100 five is where analysts are saying. Deutsche bank said the policy will follow the fed. Nikkei says the yen stimulus could be as much as ¥30 trillion. That will be 30 more than what the market originally anticipated. Incentive for the boj or military to get involved when dollaryen is above 100. A lack of fed consensus will drive dollaryen to 100 rather than 110. Lets bring up the risk radar and show you where weve been moving. The nikkei is weighing on the stock sentiment in asia. The benchmark over in japan, down by 1. 44 right now. U. S. Stocks retreated from records on mixed earnings. Weve got the msci move in asia pulling back from an eightmonth high. The eurodollar, fairly flat. The 200day moving average has been around 110 year today. Manus where do we go next on oil . Hat is the great debate even the most aggressive driving season in the United States does nothing to dent those numbers. Hes got to get in your cars out there and use little bit more oil. Anna manus on a mission. Lets get the bloomberg first word news. Heres haslinda amin. Donald trump officially become the republican president ial candidate. In his acceptance speech at the party convention, he touted himself as the outsider who can repair a nation teetering on disaster. Trump reinforced his campaign theme, including curbing immigration and free trade. Legacy doeslintons not have to be americas legacy. The problems we face now, poverty and violence at home, war and destruction abroad, will last only as long as we continue relying on the same politicians who created them in the first place. Haslinda haslinda Hillary Clinton is poised to unveil her choice of running mate today. According to a person family with the plan, the nominee will seek to recapture the attention of voters after a week in which donald trump and the Republican Party dominated the political news in the u. S. Virginia senator tim kaine, agriculture secretary tom vilsack, and senator cory booker are said to be among the favorites. Christine lagarde has blamed brexit for a downgrade to global gdp forecasts. Speaking at the China Development form, she said the rest of the world is doing better than expected. Murdoch is to succeed roger ailes as head of the foxnews channel, the mostwatched news network in the u. S. The 85yearold founder of the fox empire is taking on the role to ensure continuity in the wake of the resignation of ailes following accusations of sex harassment by a former anchor. The Cable Network led by the news channel accounted for more than two thirds of its operating income. Strategists forecasting the yen will post its first annual gain 2011, driven by speculation that the bank of japan will expand record stimulus. The yen climbed the most in almost a month yesterday after the bbc broadcast an interview with governor kuroda in which he ruled out such a policy. Global news powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on bloomberg top. Im haslinda amin. Manus thank you very much. Lets get into the markets. Juliet sally is standing by. Ikkei report, ¥20 trillion stimulus. What do the markets make of it . Te we did find out that that report from governor kuroda was recorded before the brexit vote. Quite a few wilds fluctuations coming through in the end. Weve seen japanese stocks under pressure, down 1. 5 . Its worth noting that we saw the s p 500 in the u. S. Off those record highs. Asian investors woke up to that. Thursdays session saw the regional index hit 2016 highs. Given that and the fact its the last traveling day of the week, not a surprise we have seen profittaking coming through. In australia, the weakness in oil price is hitting energy sectors. Hong kong, which yesterday hit territory,arket easing by 0. 5 . Sinopec is tracking stronger. Most of the other stocks are down on that fall in crude oil. I know youve been waiting patiently to see what is the latest with pokemon go. Again today. P mcdonalds, op 3 . It is going to have gyms in its restaurants in japan. Today was the official launch of that game on ios and android. Its been a big pickup for both of those stocks. We have seen Oil Producers coming under pressure, and back into those safe havens. Gold stocks are looking good in the asian region today. Anna amazing. Its a fitness craze, pokemon go. Manus quickly, behind you. [laughter] pokemon, 0. 5 . I thought it would have roared. Trump hasld officially become the republican president ial candidate, delivering his acceptance speech on the last of the convention in cleveland. He started by depicting america as a nation under seige. Delegates, and humbly andicans, i gratefully accept your nomination for the presidency of the United States. Manus i think that is a touch of shakespeare. Sasha eisenberg who joins us live from the convention in cleveland. Donald trump also reinforced his Campaign Themes, including putting america first, criticizing Hillary Clinton, and going after Bernie Sanders voters. Sasha what we saw in total here was a candidate who not only claimed the Republican Party nomination today but very much has tried to remake the Republican Party in his image and dispense with decades of orthodoxy for the party. He was as very length virunt ulently against global trade in a way that sets him apart from every republican nominee for at least half a century. We saw him make a blunt appeal issues, andesbian when he got applause, he seemed a little surprised and saluted delegates for not having booed him. We got him adding into his speech a passage about hat is a subject of great controversy after an interview he gave to the New York Times. I think we have that sound. The most important plant between our plan and that of our opponents is that our plan will put america first. Globalism, will be our credo. What we see from the trump approach to Foreign Policy and national security, he sees everything about the u. S. s role in the world through an economic lens. The comments he gave to the New York Times reaffirmed his statements, which have been scattered, but it suggests the u. S. Might not feel an obligation to come to the defense of nato allies unless they were paid in. Anna thank you very much for joining us, politics reporter Sasha Eisenberg joining us from cleveland. Lets bring in our guest host for this hour jeremy cook, chief economist at world first. Rivals sort of the real trump has been at the top of the conversation, but this is the real rival in the markets the phenomenon of donald trump. From International Investor perspective, what do you think is priced in . Jeremy i dont think anything is priced in a part from a Hillary Clinton win. Much like the brexit scenario we had in the u. K. , there was a slim Market Pricing in four or five months beforehand that we would have any semblance of a brexit, and i think it is similar with the u. S. President ial race. Its difficult to see how we will be priced in. Nomura say it will be broadly risk off. Organ said [indiscernible] where do you think it would take the dollar . The one thing the Federal Reserve dont want is an ascendant dollar. The possibility of trump, what would it do for the dollar . Jeremy i think it would boost the dollar on simple risk aversion. We have seen political issues in the u. S. Weaken and strengthen the u. S. The fact that a Trump Presidency would be such a global story, there would be a lot more flow in the u. S. Dollar. Anna if people were looking for places to express risk aversion, and the risk is coming from the United States, and yet, the expression is a stronger dollar. Jeremy it is buy dollar, tre asuries. Manus you do say that hes the enemy of International Trade ttip. H nafta, tpp, and that takes me to the tradedependent currencies, canada, mexico. Dollar ascendant, do the others drop . Jeremy yeah. Mexico peso, certainly. If there is one pain trade, it would be the mexican peso. Next go is the u. S. s thirdlargest trading partner, and any semblance of any wall building will be a massive negative for them. Anna when he was speaking, we have the chinese premier speaking in china saying, we should be against all kinds of protectionism. Theres another country that doesnt do well with an attack on globalization. Jeremy we are going to hear some things at the g20 over the course of the weekend. Normally, the communique is bland. This, they have the opportunity to go out there and say, we can be a global commodity once more. Anna thank you very much, germany cook. Lots more to get to. A. M. U. K. Time, we get pmi data or that is before the u. S. Market opens. Airlines, and after the european close, we get ratings updates for saudi arabia and greece. Anna the ceo of Philips Lighting will join us to discuss the companys earnings. At 6 30 theresa may on the road. We will bring you the latest on her european road trip. At 7 00 a. M. , we speak exclusively to the cio of ubs Wealth Management. This is bloomberg. Manus beautiful shots of the harbor in hong kong. He hang seng is down 0. 5 it is just on 1 20 in hong kong. Lets get the business flash with haslinda amin. Haslinda boeing says it expects to report a 2. 1 billion right off after it cut costs for the Second Quarter. The biggest loss is related to the dreamliner, boeings carbon fiber jet. The Company Reported hits from the refueling tanker for the u. S. Air force. Goldman sachs is said to be about to start raising money for its First Private Equity Fund since the financial crisis. According to a person with itwledge of the matter, may be up to 8 billion. The firm will contribute a relatively small amount of capital because of postcrisis restrictions on risktaking. Pokemon go is finally available in the country where it all began. After becoming a viral phenomenon in the u. S. , australia, and europe, the app can be downloaded on ios and android in japan, the country that gave birth to the pokemon franchise two decades ago. Shares are trading higher in tokyo, adding to a run that has seen the companys market cap double in two weeks. That is your Bloomberg Business flash. Anna thank you. Philips lighting, the Worlds Largest general lighting company, has reported secondquarter revenue of 1. 7 3 billion euros. Its the first Quarterly Results after being spun off by its parent. Manus joining us for his first interview of the morning is the ceo of Philips Lighting, eric rhonda lat. Great to have you with us. Well done. You have finally broken away in terms of the numbers. You are telling the market you are on track for the same Revenue Growth in 2016. I am wondering where the Revenue Growth is going to come from. Where are the biggest head winds to your business . Eric first, thank you so much for having me. Are reporting q2 results, and we see q2 as a quarter of continued improvement. First, at cash flow level, but also at the operating margin level where we are posting our seventh consecutive quarter of year on year improvement. All of our businesses are performing according to the strategic objectives, and we are growing in our ledbased activities by 25 . These businesses are accounting hasmore than half of what been said. He said that trend worldwide. Anna you have a big presence in the u. K. , of course. Is the brexit aftermath having an impact . Have you seen evidence of changing Consumer Behavior . Eric we dont see clear evidence at this point in time. I used to say as a company and as a team we will have to face whatever economic environment we have in front of us. We had businesses and customers established in the u. K. Manus one of the biggest risks postbrexithabits not just in the United Kingdom but also in europe. We have had a long run of consumer spending. Give me your perspective on europe. Our eric business at this point in time in europe is growing. We are posting doubledigit growth on that business, and its growing because of the shift to technology. Just imagine you are in your home. Lamp, which is basically having different shades of white depending on your daily activity, and that follows you during the day, and its a connected lamp. With these types of innovation, and thats one innovation we brought to the market in q2, we are further strengthening our growth profile. Anna some parts of the market might be driven by innovation, but some will be driven by price. What kind of competition are you facing from competitors . Eric we are facing a lot of competition. With a new Technology Like led technology, we have seen that in the past for other technologies emerging. Sure you areake capable to bring your costs down. I think this is what we are. Oing in the led business p, wer led business grou are posting a quite important improvement in terms of profitability. We are now trending at more than 8 . Manus you are finally free. Its a standalone business. What are you going to do with the cash you have on the Balance Sheet . Will you do deals . Is that how you will make your stamp as ceo on this business . Eric to achieve the strategic has, wee the company are cash generative, and we make no secret with the cash we will be able to generate we will make deals, if it makes sense. If there is a strategy behind it, we have the freedom to make deals. Anna the Parent Company of philips, still with more than 70 . Thank you very much. Manus up next, theresa may gets a taste of how tough the upcoming brexit negotiations are going to be. We look at her trip to europe. This is bloomberg. Anna 6 30 in london. Watching inf youre paris or berlin. Lets take a look at some of the top stories. Weve got a great photo that says it all. Trading on the London Metals Exchange was disrupted for most of the asian trading day, resuming just before 5 00 a. M. London time. This is the Worlds Largest metals exchange. They did manage to keep things operating. Manus the second is postbrexit flash pmi. Its going to be fascinating to see. Weve got a special one in the u. K. We dont normally get flash pmis. How tough was it in terms of construction . Construction literally fell off a cliff. Of thegot about 70 survey responses. We are waiting for the european ones. We saw a retail sales get smacked. We saw the core inflation breaking a little bit higher. All kinds of inflation in this country. Weve got the pmi, and i find it fascinating, mario draghi on the bad loans. Anna 49 is the consensus on the bloomberg. Monthind of drop month on would be quite considerable, but is flash. This it wont be the final number, and it is survey data. Talking to mario draghi, what he had to say about the italian banking system, weve got stress tests looming. Italian banks clearly will be in focus, but there could be tough messages for german banks, nordic banks come as well. The eba set out its findings. Anna listening to draghi, manus he talked about nonperforming loans being the to monetaryus policy. To draghi,istening he talked about nonperforming loans being the obstacle to monetary policy. Lets get out to haslinda amin. Shes got your first word news. Haslinda hey there, manus. Donald trump has officially become the republican president ial candidate. In his acceptance speech at the convention in cleveland, he cast himself as the outsider who can repair a nation teetering on disaster. Trump reinforced his Campaign Themes, including cutting immigration and criticizing his democratic rival. Clintons legacy does not have to be americas legacy. The problems we face now, poverty and violence at home, war and distraction abroad, will last only as long as we continue relying on the same politicians who created them in the first place. Haslinda Hillary Clinton is poised to unveil her choice of running mate today. According to a person familiar with the plan, the nominee will seek to recapture the attention of voters after a week in which donald trump and the Republican Party dominated political news in the u. S. Kaine, agriculture secretary tom vilsack, and senator cory booker are said to be among the favorites. Imf chief Christine Lagarde has blamed brexit for downgrading global gdp forecasts. Speaking at the China Development forum, she says the rest of the world is doing better than expected. Todayas hoping to come to, for the first time in six years, revise upward the forecast for growth. I wouldve done that because china, japan, the euro area, were doing better than what we expected. Unfortunately, the United Kingdom decided to go for brexit. Downward revise haslinda . Rupert murdoch is to succeed roger ailes as head of the foxnews channel, the mostwatched news network in the u. S. The founder of the fox empire is taking on the role to ensure continuity in the wake of the resignation of ales following accusations of sexual harassment. The companys Cable Network led by the news channel accounted for more than two thirds of operating income at 21st century fox last year. Strategists are forecasting the yen will post its first annual gain since 2011 and are standing their ground in the face of a rout driven by speculation that the bank of japan will conduct record stimulus. The currency climbed the most in almost a month yesterday after the bbc broadcast an interview with governor kuroda recorded last month in which he ruled out such a policy. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. I am haslinda amin. This is bloomberg. Anna lets take a look at the market. Japanese session, underway. The topics is slumping from a sixwe kind. Caroline hyde has the details. Its all due to this odd reporting coming from the bbc that seems to have been done in june, june 17, prior to brexit. It seemed at that point that governor kuroda was against helicopter money, against the financing of government debt. Have a look at the effect it is having on the stock market. You can see the bloomberg x slumpinge topi from a sixwe kind. We are seeing the nikkei 225 slumping. Have a look at the charts. Currently off by 1. 4 . Clearly, some key concerns that we are seeing money moving out of stocks. Why . Money is moving into the yen. This is how much the yen has strengthened over the course of the year. Year to date, one of the bestperforming, which is not what they wanted to see. Its up more than 13 . Japanese yen, rising higher on the year, rising higher on the day on the back of these reports that the socalled helicopter money will not be a policy they would like. This is a great chart i wanted to show you. It seems they are right to be bullish. The Research Analysts and forecasters are bullish on the japanese yen, and they seem right to stick to it. We can see that the blue line has been where the yen forecasts have been. They have been steadily coming stronger and stronger. 114, sooint, they were they clearly saw some weakness coming in for the yen. We saw the brexit moved to the and weve seen bullish bets coming back for the yen. Even recently come at the end of july, when we had ben bernanke visiting japan and the furor around more stimulus coming from japan, we saw some weakness. But no, forecasters remain bullish. That is a look at my last commodity i wanted to show. Im looking at oil. We are Forecasting Oil down 2. 6 percent. Inventories are in no way coming down. The driving season is almost over, but still, we see supply on the higher side. This is a chart showing the supplies continuing to remain high. 2for1 is where your number is. The beauty i oil, just managing to cling above the 44 mark. Inventories are remaining resolutely high. U. S. Crude and gasoline supplies are at the highest seasonal levels in at least 20 years. Manus thank you very much. Uk Prime Minister theresa may has been told by french present along that britain faces accepting unlimited immigration from the eu or losing access to the single market. Her first overseas trip to france saw her reiterating that article 50 of the eu treaty wont be triggered this year. As the u. K. Leaves the eu, we will have to determine how to maintain the closest possible economic relationship between our countries, and it will take time to prepare for those negotiations. Anna bloombergs reporter mark dean joins us with the latest from paris. Theresa mays trip may have been marked by some warmth from some of the leaders she encountered, but what was hollandes real message . Mark i think the message of may and hollande has fundamentally unchanged. There cannot be discussions or prenegotiations. She went on to say, we can prepare these negotiations. That is vintage hollande. He is sounding tough and offering himself a getout clause. The way to interpret the ,eactions in germany and france look, the europeans are going to be reasonable. They understand we cant just jump into negotiations immediately, but they do firmly that thenderneath sooner, the better. Francois hollande said that yesterday. A vote has been made in the u. K. , and the consequences should be put into action, should be implemented. Same time, with theresa may standing next to francoise along saying, its not going to be before the end of the year, i dont think that causes any massive problem for the french government. The french government, while saying, no prenegotiations, is saying, we are neighbors. We need to work together. Part of hollandes tough guy act is made for domestic audiences, and part of it is because genuinely the french believe things should get going. It doesnt mean the day after tomorrow. Manus the francogerman axis in terms of dealing with brexit. Great to see you. Jeremy cooke is the chief economist at world first, still with us. Brexit, brexit. Darned brexit. How much will we get from the bank of england to do with brexit . Qe is what everybody expects. Give me the quantums you think we will get. Jeremy i dont know if we will see a rate cut in august. A signal, butas 25 basis points to the average consumer, it takes 15 pounds off the average mortgage. The stimulus you are going to get from that is not going to be great. I think it is all about quantitative easing. How much do investors need to keep abreast of the diplomatic goingson of the u. K. . We saw comments from hollande saying, we cant talk before negotiations happen. This diplomatic language investors are going to come up against jeremy we are going to see shoes fall. We have seen a political shoe drop with the brexit. We have to see how the bank of england reacts. Its going to be back and forth factorsthese two affecting the u. K. Economy. Once the bank of england starts to stimulate, we can start moving about towards political leaning. Manus we had some interesting data, retail sales collapsing, inflation spiking. Today, weve never had this, but the flash pmi some of the data going into the pmis. Services, the white line, which is holding relatively well. The data sweep today, how important is that to the bank of england . Is eric important. We have had a lot of sentiment out in the past week or so. They are going to have to be looking at output. From kristin forced 2448 hours ago. We should keep calm and carry on until the data starts to show exactly what can a picture the u. K. Economy is facing. Anna they delayed doing anything at the last fomc meeting. One of the arguments put forward is that the data picture will become more clear, but not particularly. We get a lot of this survey stuff but not a lot of relevant data. Jeremy not much before august 4, as well. That the twoe members looking for cuts are Dana Pflueger and mccafferty well. Broadbent,arney and still to break. Stunning see some stimulus in august. There was going to be some easing and summer. September is not summer. Manus jeremy, thank you very much. Manus weve got a preview. Up next, a preview of the worlds secondlargest mobile Network Provider. Anna vodafone, their firstquarter numbers will be released. At 7 00 a. M. , we are at the Republican National Convention Cleveland where donald trump has accepted the republican nomination for president. Manus we will speak exclusively to the cio of ubs Wealth Management. His view postbrexit. This is bloomberg. Anna welcome back. Anna 6 49 in london. 1 49 if you are in new york. We have been fairly flat at the start of the u. S. Trading day, when we get there, but remember u. S. Stocks retreated yesterdays session. Lets move onto to the european corporate agenda. 7 00 this morning, we get numbers out of vodafone. Over the last year, the worlds secondlargest mobile Network Provider has narrowed its service revenue. Its also increased gains in markets such as turkey and south africa. Ryan chilcote has been digging into the details, and he joins us now. Those sound like positive trends. Do we expect that could continue . Ryan it has outperformed the sector. The sector is down about 15 . The last two quarters have been much more encouraging. The last quarter in particular was pretty good, though some people say it was in part because it was a leap year, in part because they had oneoff accounting changes. Organic service Revenue Growth, the money they make off their network as opposed to selling handsets, and the expectation is that will have grown by 1. 8 . Manus talk to me about the u. K. This is where they need to see a little bit of a turnaround. Ryan the u. K. Has been the weak link. They have under 20 million subscribers in the u. K. , and they have suffered from two problems. One is a lack of good 4g coverage outside london. The other issue has been customer service. They are the most complained about of the mobile Network Providers. When it comes to their coverage outside london, that should be improving, and that is one of the things everybody should be watching for. They had a massive project called project spring, a twoyear investment project, 19 billion pounds, and that has been sort of leading to good things in continental europe, but it has been slow here. They added some money to that. People will be keen to see if that is starting to pay off for them. The other thing about the u. K. , its a very competitive market, and they dont benefit from what a lot of the other players have, which is convergence. That is something that is an industry trend that they are doing in other places theyve begun it in the netherlands but havent done it here. Anna things are getting more competitive for them. Tell us about the Brexit Impact. This is one of the First Companies we heard from postbrexit with a headlinegrabbing statement. Ryan a threat really. If you think about that they could leave they have been here since the 1980s that would be a big deal. The company gets about 50 of the revenue here. Germany and other places are big markets. The germans are lobbying for their business. It wouldnt be inappropriate for them to do that. That what isay interesting about these earnings, they will be reporting in euros for the first time ever, and when they announced they are going to make this change from sterling, a lot of people said, this is telling. Anna thank you. Manus those numbers will come out at 7 00 a. M. Ecb president mario draghi says the Economic Outlook for europe is still tilted to the downside. Mario draghi said policymakers are ready, willing, and able to act to get inflation back in line with ecb goals. Weve decided to keep the key ecb Interest Rates unchanged. We continue to expect them to remain at present or lower levels for an extended period. If warranted to achieve its objective, the governing council will act by using all instruments available within its mandate. I would stress readiness, willingness, ability to do so. Funding backstop would be a measure that would be useful. It is important, and its even more important given the existing rules, over the coming months, when we have more information, including new projections, we will be in a better position to reassess the underlying macroeconomic conditions on inflation outlook. Brags it didnt seem to have any major impact at this point in time. Chiefjeremy cook, economist at world first, is with us. Mario draghi, ready, willing, and able. Adding more stimulus, is that the church a tree . That the trajectory . Jeremy i think so. I think that is why his tone was one of indifference. He sounded board. He sounded like he was waiting for september. He wanted more time certainly to ascertain what the Brexit Impact will be on the u. K. And the wider eurozone. This was very much going through the motions with the press corps. Manus he has joined the confused club. That is one of our sources. Ive got a chart of eurodollar,and its just bubbling along at 110. It is stuck at the 200day moving average. Remember when we asked every guest about the lower euro. Thats gone. Jeremy it has. A couple people still think below parity, but i think the low consensus estimate is down to about 1. 05 at the moment. Its all about the yield. Everyone can sit here and say, i dont think yields are going to go too much lower, and its a dangerous call to make, but given the impact on the banking sector, can they push yields for the lower . Can the deposit rate be cut further and drive eligibility into some debt they cant buy at the moment . If the ecb comes through, what does it mean for the euro . These negative yields could be conversely supportive of the euro in the shortterm. Anna do we escape big political turmoil in the euro over the summer . The brexit conversation puts europe very much on the map in terms of asking questions like, where could the next vote happen next . Jeremy over the course of the next 15 months with elections in andy and the netherlands france and germany. The political situation in germany doesnt change quickly. Politicians dont change very quickly, given their reactions to the Global Financial crisis. It will take a while. I dont think we are rid of any political risk. Manus jeremy cook, chief economist at world first. Anna up next, we speak to ubs Wealth Managements mark hafer lee about navigating the road ahead for markets. This is bloomberg. When we come back, we will have that conversation. Hes got the lessons from the brexit vote, lessons for investors. We will dig into those. We will get his thoughts on the u. S. , what a republican by the name of trump in the white house would mean. This is bloomberg. . C sv mr. Trump friends, delegates, and fellow americans. Gratefully accept your nomination for the presidency of the United States. A triumphant trump excepts the Republican Partys nomination and paint a dark picture of america. Next rateank see the decision will have more impact on the yen than a potential stimulus extension. And growth hopes fade. Christine lagarde says she is expecting to lift the global outlook. Executiveak to ubss about lessons from brexit, exclusively on bloomberg. I am manus cranny. A warm welcome every 7 00 in the morning this friday. Strong numbers from vodafone. Expectation there, the estimate was for an estimate of 1. 8 . That is better. Monthly phoneers bills, not the selling of phones. The ceo relying on fastgrowing markets like india to offset what is a revival of revenue jobs he has on his hands. ,aking Good Progress during q1 , the company is saying. Manus that is the critical point. Organic growth of 36 . They have confirmed europe remains stable, despite lower roaming fees. This has been one of the big issues. Europe remained stable. There is more competition. That is where they really want to see that growth. Anna the eu regulations went into effect october 30. They ordered carriers to reduce roaming rates by 75 . Q1 remains a stable despite those fees. Manus maybe i didnt learn that lesson from the telephone bell i had coming back from dubai. A nice big beat for them. Futures indicated, that seems to be the consensus. Pulledona interview back from helicopter money, we saw the yen rally. Equity markets have struggled somewhat. All indicated loader lower. Anna falling from that asian equity session. Down around 0. 5 . Bigger than they were an hour ago. Market in particular, wayne on things. Eurodollar at 11024. Despite everything the ecb has been throwing at the situation. Or how ready, willing, and able mario draghi might be. Manus 1. 55 on u. S. Treasury. Bonds, 0. 2. An article saying japanese investors rushed into the foreign debt market for a second week as benchmark yields held within their record low. Cant get healed at home . Go overseas. Haslinda donald trump has officially become the republican prudential candidate. He casts himself as the outsider who can repair a nation teetering on disaster. Reinforced Campaign Themes while criticizing his democratic rival. Mr. Trump Hillary Clintons legacy does not have to be americas legacy. The problems we face now, poverty and violence at home. Willnd instruction abroad, last only as long as we continue relying on the same politicians who created them the first place. Haslinda Hillary Clinton poised to unveil her choice of running mate today. The democratic nominee will seek to reach out after a week in which donald trump and the Republican Party dominated the political news. Virginia senator tim kaine, agricultural secretary tom vilsack, and cory booker are among the favorites. Blamed theagarde has brexit for a downgrade to global forecast. She says the world is doing better than expected. Dayi was hoping to come to for the first time in six years revise up words upwards the focus for growth. I would have done that, because were, japan, the euro area doing better than what we had expected. The unitednately, kingdom decided to go for brexit. So we had to revise downward. Rupert murdoch will ailes. Roger he is taking on the role to continuity after allegations of sexual harassment. The cable nose network news network accounted for more than two thirds of operating income. Strategists forecasting the yen ill achieve its first gain since 2011. At the meeting, rate decisions will have more impact on the currency then any announcement by japans central bank. Powered by more than 2600 journalists. You can find more stories. I am has haslinda amin. Manus thank you very much. Lets get into those markets. Asia is finishing off the week. There is more to the world of markets than pokemon. Yes, we certainly are seeing rally off what has been a good week in the red. We saw the regional index hit the highest level since 2016. Oda pouringts of kur water on helicopter money. Also, the s p 500 easing from record highs. Weaker oil price plane into the markets in australia and hong kong. We have seen Energy Stocks coming under pressure. Japan down percent. Stronger yen, plane into things. In hong kong, the hang seng index injured into bull market territory. Stocksack, led by the that had pushed the market into bear market territory. Coming under pressure today. The regional index has come off the eight month highs and every sector is firmly in the red. The weaker prices are merged wreak havoc with emerging market currencies. Their malaysian ringgit, the corruption probe continues to be in the spotlight. Also, the weaker oil price. The ringgit is headed for the worst week since september. Other currencies, the aussie dollar is weaker. Down 0. 2 percent. The japanese yen has been fluctuating, on the back of kuro das comments. 105. 90. Ive. 90 you. Thank donald trump has officially become the republican president ial candidate, delivering his acceptance speech on the last day of the convention in cleveland. He started as depicting america as a nation under siege before promising to leave the country back to prosperity and peace. Mr. Trump friends, delegates, and fellow americans, i humbly and gratefully accept your nomination for the presidency of the nine stat United States. Us. S sus a eisenberg joins us. Asha eisenberg joins he reinforced his Campaign Themes. Criticizing Hillary Clinton and then Bernie Sanders. Downter they are tearing the convention that lasted through the week. Donald trump largely succeeded in one of his goals which is unifying the republican already behind him. Revisiting orthodoxies of the party. He went after Bernie Sanders supporters i saying he share their skepticism about trade policy. Thataffirmed the notion the u. S. Was committed to nato countries. Way to went out of his salute gay and lesbian rights, almost to his own surprise, thinking delegates for not doing him when he did so. So. Ooing him when he did anna was that the sum total of his attempt to pivot to the middle . ,nce youve got the nomination and many of the people in the room are going to be on your side. Clearly your message has to become a broader one. What evidence to we see of someone going for the middle ground . You are right, very little. In encapsulation of themes and language we heard throughout the primary season on immigration, trade, talking about refugees resettle in and the u. S. Done verymp has little to recalibrate his message or tone for general election electorate. There have been several shootings of Police Officers across the country. Protests about police brutality. He talks a lot about being the law and order candidate. As heand lawlessness calls it. We will see that be a larger theme in the general election than in the primary. Trump. With the latest on lets talk about dollar yen. 105. 86 is most where we are. Go with me on this. One of the strongest currencies. What are the analysts saying . The blue line, what weve got here is the year and forecast. From 106 to 105. We saw the yen rally the most in a month. This was based on an interview kuroda did before brexit, saying no helicopter money. Deutsche bank saying it is going to be fed policy that is going to drive dollar yen. Anna we were talking earlier this me. Bank of mitsubishi, they know a thing or two. Whether you look at currency markets or equity markets, there expectation around what the boj can deliver. We were talking about markets going higher. Now as you say weve got these comments coming through suggesting if the boj does not do much, it is the fed that steals the headlines, then that really puts that transpacific jo divide on the agenda. Rate story is driving new zealand dollar. All the way up the hill. There is ang, article this morning. It suggested potentially you will see a stimulus of around ¥30 trillion. Nearly 30 more than the market anticipated. If you think of what has happened overnight, record after record in the market. Will the fed go with another hike . Will we have that moderate htening in america, versus what happened in the rest of the world. What happens with the fed is going to dictate what happens elsewhere. The s p, up 18 from a 22 month low. 45 there is currently a chance of a fed hike by the end of the year. That has come up since june when we were in the eye of the brexit storm. Up next on the program, the five Lessons Learned from exit. Whate here to discuss investors need to know one month after the eu referendum. Manus 7 19 here in london. 2 19 in hong kong. Lets get a business flash. Haslinda Exchange Trading interrupted for most of the asian morning sessions. 5 00 p. M. ,umed at four hours later than usual. They blamed the outage on a connectivity issue. Boeing says it expects a report of a 2. 1 billion cost as they the biggest loss is related to the dreamliner. They also reported hits from a refueling tanker for the u. S. Air force. Goldman sachs is expected to first fundey for the since the financial crisis. They may gather up to 8 billion. They also said the fund will not be as long as some. They will contribute a relatively small amount of capital. Go is officially available in the country where it all began. After becoming a viral phenomenon, it can now be downloaded in japan, the country that gave birth to the pokemon franchise. Nintendo shares are trading higher in tokyo today. Ket capital doubled in two weeks. Missed analyst estimates. The largest coffee shop chain sales climbed 4 . Left customersam confused and may have driven them to other outlets. Be heldley must accountable that is a ccoding to the house of commons committee. They refused to believe he wasnt aware of instances. Your Bloomberg Business flash. Anna thank you. Haslinda amin in singapore. Joining us on the night, usb Wealth Management cio. To get your thoughts on what we are seeing unfold in the president ial race in the u. S. This has been the year of political surprises. How are you viewing the race for the white house . Mark there are a lot of surprises. Our investors around the world are fixated on this race as an important event for markets. I think we would take a step back from that and say, the president ial election does not have that large of an effect on u. S. Equity markets. And really, what we want to look too, is the broader economics and the Central Bank Policy continuing to trop the politics trump the politics if i can use that term. Manus there is a heavy weight wavepectation on the next of policy. The rally in the american markets, youve got a tactical change. The largest rally since 2013. Vix is saying something different. Can the fed go with another hike . Think bonds have had a tremendous run this year and are likely to perform not as well as equities in the second half of the year. We think the turmoil on the political side is going to continue to raise that word uncertainty and centralbank policy statements. Therefore, despite the strong u. S. Economy, is going to put the fed on hold at least until december. In that environment, with a dovish Federal Reserve, strong numbers, strong u. S. Consumer, we think there is room for u. S. Equities to go higher. What would a trump president do for the dollar, mark . Mark i dont think it is going to have a tremendous amount of affect. Promises,al campaign on average, over the last 50 years, less than 50 get implemented. That is just falling off more and more in the modern age. The one scenario maybe the markets are not prepared for is andrump wins the presidency the republicans lose the house of representatives. That seems to be a very low probability in terms of how people are pricing it. That would represent the most uncertainty. The world is trying to divine how to invest host brexit. Lagarde is blaming the worlds problems on brexit. Does it have that much of a impact . What are your biggest exits for brexit . The biggest lesson the political offense prevent you from focusing on the Central Bank Policy and growth which is strong. Im not going to say i can be more certain or we can be more certain about the impact of exit when the Central Bank Governors around the world are not certain. But they came in very strongly and said they would support the markets with liquidity and further action if brexit starts to have an impact on the numbers. Impact,tinue to have an keeping the market concerns in check. That is one of the key lessons. The other is how well the diversification and a balanced portfolio has worked this year as the Central Bank Stimulus has caused hans and stocks to do well bonds and stocks to do well. Anna good to hear from you. That will do it for countdown. Manus we got equity futures indicators of a little lower. One of the biggest moves they have made is u. S. Equities. The market might not be prepared for it might be prepared for a Trump Presidency but not a shift in the house. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Anchor welcome to on the move. I am guy johnson alongside caroline hyde. Americanism, not globalism. Trump calls for isolation. And jobs first. He says he alone can fix the system. Can he convince the American People . Brexit backlash. Mark