Of failure. M it punches the most since november after the ceo quits. Anna welcome to bloomberg daybreak europe, our flagship morning show. I am anna edwards. Manus im manus cranny. The world deals with another terror attack in barcelona. That is the reality of the world we live in but also across the pond, the world deals with the reality of what is happening in the white house. It is a double punch for the market. The s p 500 is down 1. 5 , the second worst day this year. It has only swung 1 in three of the last six sessions. Are we dealing are we building up to more . Is what really unnerved the market yesterday. They report was set to go, denied by the white house. You have volatility rising. Rising but it is not doing what it has done historically which is drifting away after the events. Anna after terrorism in barcelona, not just in terms of white house agenda, but what does it do for the race to lead the fed as well . Lets get to the risk radar and show everyone where we are in the asian equity session as we go to the night. These insane concerns around terrorism and geopolitics and around dysfunction at the white house are influencing the white house. The flight to safety illustrated by the fx market, we have seen more appetite for the yen, up a little bit on the euro after flipping 0. 4 . Manus the question for market is, when does the dollar become the haven trade . We will have those conversations later. Ecb officials of voice their concern over european overshoot. They are turning back there positions on the euro market at the moment. Anna lets get to bloomberg first word news with juliette saly. Juliette thank you. U. S. President donald trump will not move forward with a Plan Advisory Council on infrastructure according to a person familiar with the matter. The Infrastructure Council would have advised trump to send a 1 trillion in up upgrading roads and it said trump was disbanding other advisory panels. A Senate Republican once considered joining Trumps Administration hosted radical changes. The senator told his reporters that the president has not illustrated that characteristics needed to serve at his job. Trump has come from ice to his moral authority with his response to last weekends violence in charlottesville virginia. A white house official has said top official terry cohen will cohn willhis gary remain in his position. The former executive has been leading the Trump Administration in overhauling tax code. In spain, five suspected terrorists have been killed after six civilians were injured. The incident came hours after 13 people died and 100 more were injured after a van drove down las rambles avenue. Two suspects were arrested but the driver was not among them. According to the intelligence group, Islamic State has claimed responsibly for the attack. Our neighbors in madrid, nice, brussels, berlin, have experienced the same horror that the people of barcelona have suffered and i want my first words to convey to them that solidarity and affinity of the whole of spain and the whole of the world. Chinese home prices rose in fewer cities in july adding designs the Property Market is calling. From thees gained previous months in 56 out of 70 cities. That is compared with 60 in june while rises fell in nine cities and were unchanged in five. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. You can of course find more stories on the bloomberg at top. Final day of the trading week in asia, it hasnt been a good one given wall street. Attack in terror europe is weighing into sentiment. Area thei is down 1. 3 topics on course for the worst weekly course since june. Also a bad week for singapore. You are seeing the other market 7 10 of 1 down. Its coming off profits. Looking at stocks, we are watching emphasis in india, a big one plunging about 7 as the ceo resigns. He will become the companies vicechairman. A 1. 7 after agreeing to billion deal to buy an asian unit from mutual life as part of jack marsgroup. The Development Zone has also been rallying. There have been developed its between beijing and have a province. We will not get to that but i will show you we are getting the property story, china home prices and Hong Kong Developers are performing in terms of price to value the valley. Manus juliette, thank you very much. Juliette saly with the latest from singapore. Our top story is barcelona. We will be joined with a Security Specialist at the front of daybreak. 13 people have died and the Regional Government says up to 100 people are injured. Anna we will get further analysis on the ground. Lets talk about that with our guest who joins us on set, bob parker from the investment committee. Good morning. Tragic events on the streets once again of europe. Geopolitics back to the fall back to the four. Now we have whats has been claimed by Islamic State, another attack on the streets of europe. It has become familiar in europe. Guest regrettably so. What is the impact on investment behavior . Inevitablyly the come it means they want to reduce risk levels. If you look at the impact of geopolitical risk on economies, the impact is fairly shortlived. 50 years and you look at the geopolitical negative impacts on markets, it typically only lasts for a month or two. This is yet another example of and it will event result in investors wanting to shortterm,in the but if one looks at the history and the data and the impact on markets, the impact will probably only last a month or so. The market is booked to clinical and terror, but there is also a discussion of gary cohn and the state. Marketrved a seat of the pretty much as i have not seen for quite a while. The s p 500 and a vix ball. The whole point is that gary cohn is the trade. It is not trump. Cohen is the tax, cohen is the intellectual board behind the Trump Administration. Would you agree that is our risk . Guest i would totally agree. Last november, december, markets assumptionve on the on fiscal measures to reboot the u. S. Economy. That is obviously now history and the most fundamental point is that the more turmoil you have in the Trump Administration, the more risk you have on very serious people like eric cohen possibly desk cohncohn possibly gary possibly leading. Matter, you have stress in the Trump Administration. It needs the probability of important policy measures are significantly reduced and that is negative for markets and you see that in the downturn in the s p and more importantly, you see it in the increase in the vix. Anna if he is less in favor as he was as a result of this week in relationships and the white house, who leads the fed . Guest i think that will be a focus on the markets later in the year. Janet yellen might be replaced in early 2018. There is uncertainty about if she is replaced or if she is replaced, who would be the replacement and it would that be somebody sympathetic with the Trump Administration or not . Lets not forget the Federal Reserve is one of an independent central bank. There is a signs of that independence being eroded, the markets would take that negatively. Manus we have had a number of councils to spend it. Or was in if a structured News Conference and trump has abandoned his Advisory Group on infrastructure. Where are the bridges that need mending in the United States and how much would it cost . The darker purple, the lighter purple is where you need to spend the most money. Upper right, new york, into the middle of the United States of america. If you are going to fix the bridges. This is a staggering anna not just bridges. Guest very good point. Infrastructure covers bridges, roads, other transport systems like ports and railroad systems, like airports. A lot ofpotentially necessary money to be invested in every structure. In infrastructure. If this is not going to happen, vestors would take that quite negatively. It does not send a positive signal to investors in the s p. Anna bob parker stays with us on the program. Lets return to our top story in spain. Five suspected terrorists have been killed by police and six civilians injured south of barcelona. Manus the incident came just hours after 13 people died and 100 more were injured after a van drove down las rambles avenue in barcelona. Officials said the driver wasnt not amongst them. Islamic state has claimed responsibility for the attack. Anna lets bring in will gettys, the security expert from barcelona. On the streets of barcelona, are you seeing action by the authorities to try and protect public spaces to put an infrastructure, to protect people in public spaces as we have seen in other parts of europe . Certainly in terms of the standard profile of barcelona, i have been here in the last few days on business. Like many relaxed, mediterranean cities. There has been visibility of local guard and police around some of the main tourist hotspots, but i was in las rambles a couple hours preceding afternoon yesterday and it is a difficult environment to attack. It is a small boulevard. References andng it is much smaller than that. It is highly concentrated and its a big hub for foreign travelers and tourists to congregate which would have made it an ideal prospect for terrorists. Manus very good morning to you, well. We now have the government that five suspects were killed and six civilians were injured and that is connected to the attack on barcelona. Given your experience of how these issues are handled, this is now about reassuring travelers and indeed, the residents, that Security Services has gotten a grip on the situation and there are no further potential risks. It is really important for them right now to reinforce the fact they have control of this and authorities have responded very appropriately. We are seeing a lot of uniforms across barcelona, many of the hotels have taken robust procedures, walking off the vehicle Access Points and inevitably, there is going to be an air of concern and anxiety amongst not only those people that are visiting the city, but some of the residents. People are anxious right now so it is important for the authorities to communicate clear messages they are on top of this. By the being illustrated very Quick Release of information and confirmation of information in the wake of the incident. Anna the spanish authorities islamic confirming terrorist attack and separatist activity. We know who has claimed responsibility for this and i wonder if this opens up further conversations about encryption and messaging. We dont know how this was planned or who was involved in planning it, but this is these are the conversations that followed after the london attack, the nice attack, and others. It helps them listen in on conversations happening behind the scenes. Indeed that it is about collaboration and trying to defeat a common enemy. I have contacts within some of the Big Technology companies. I have had candid conversations with them about dealing with authorities and it will be a continual balancing act before findingcing act for information from intelligence agencies that is grounded and suitably providence for them to justify the release of data on private individuals. This will be an ongoing discussion for some time. There is no easy quick fix on it but something we do all have to us, if is that all of you are like in a collaborative sense, we need to realize we need to remove some of those veils of secrecy afforded to us to enable a universal security and safety to a certain degree. Manus they give very much for being with us. The ceo of icg group joining us from barcelona. Quarterhose measures to off areas from the hotels. The city is reeling from the very latest terror attack. The lets get an update on Bloomberg Business flash with juliette saly. Juliette and a, thank you. Indias secondlargest Software Services company has slumped after the ceo resigns. Amid heightened acrimony between the board and its founders. Operatingt chief officer will become interim ceo. Until a permanent replacement is hired. He will focus on strategic matters and receive an annual salary of one dollar. Double like capital is engaged in an Unusual Campaign against the wall street journal. Their rival news organizations for a story yet to be published. The walllock said street journal is desperate to populate anonymous source is. According sources. To him, they have been looking into it. Element management has signaled its willingness for the private equity duo starter in the middle of it according to people familiar with it, the investor engaged with bain capital before a deadline on wednesday. Spokesman for elliott and the private Equity Company declined to comment. That is your Bloomberg Business flash. Juliet, thank you very much for that. Home prices in china rose. Adding signs that the country could be cooling. Rose 56w home prices out of 77 prices. That was down from 60 in the previous month. Nine cities saw proceeds drop. Lets bring in Stephen Engle and hong kong. What are the Key Takeaways for you from this set of housing data . Stephen the key takeaway is that authorities want to cool the bolt before it comes a bubble. Tier one seen the cities, beijing and shanghai, impose strict borrowing curves and other proper he related curves and we have seen those of white. Month over month gains turned into declines for prices in shanghai and beijing. Months, butple of what has been underpinning the Property Markets of late has. Een the third tier cities the data suggest 56 out of the 77 cities have seen home prices range, 60 the previous months. A lot of those reversals are coming from the third tier cities which are starting to impose the property curves of their own. Terms of the impact on development, this is about rebalancing china and not allowing an entire implosion in some of these countries. What about these developers . What are we seeing . Ephen that is the dilemma of any regulator in any industry. Ofy want to keep the support elements in the Property Market going without causing undue stress to these companies. There has been a number of different defaults in the chinese economy. Merrily in the property sector. They are quite vulnerable. That do inverseas the middle of next overseas debt that are due in the middle of next year. They will be running into cash flow problems because they have been paying record prices in land in china and they are running into cash problems and they will have to start flashing prices to get more sales. Much,thank you very Stephen Engle from hong kong. Bob parker still with us here in the studio. In terms of the chinese conversation, do you look at this and say, the market coolities are trying to restrictions on the sector . It seems to be working. A calmness flat to negative. This is by design, isnt it . Guest absolutely. The whole focus has been on derisking the areas of overleveraged in the economy. I thought that was consistent with the statement we had from the International Monetary fund this week, who basically gave a warning shot that there are areas of excessive debt still in the chinese economy. The action taken, whether by the peoples bank of china with a regulatory authorities, first of all, as we discussed, they are trying to diffuse future risk of a bubble, again in the real estate market. They are attacking the shadow banking market and reducing the activities of shadow banking and bring it on to bank balance sheets. They are concerned about nonperforming loans in the Banking System and about the levels of debt in Stateowned Enterprises and local authorities. Just one area, it is a raft of different sectors where they are trying to slowly diffuse and d risk areas of overleveraged. Manus certainly this is something xi jinping wants to manage carefully. But this is particularly important politically for him to it toure according make sure it goes according to plan. We are talking about debt. Area isou say this important and yes we have the National Congress in november and clearly they want to minimize the risk of any economic accident before we have this important meeting later in the year. The other factor is, they are concerned to try and slow down the economy after a very good secondquarter results when the economy accelerated. On the basis of that strong economy, economically, this is a very good time to take a late liquidity and reduce the leverage in the economy. To avoid a hard landing and we have been talking about the risks of hard landing in china for the last four or five years. I stick to my view that we get this longterm price down and gold growth slowing. Another discussion was outflows in china. To some extent, the chinese have been helped by turmoil in the white house. A weak means the focus has been taken off the yuan. Christopher paulding was on the terminal talking about how some of those things that led to you on weaknesses is still there. You want weaknesses is still there. The reserves have stabilized around 3 trillion. To quantify that come at the peak in the reserves was 4 trillion. Over the past two or three years, we have seen when julie dollars decline in the reserves at a time when china is running a significant current account surplus. The decline in the surplus is down to capital outflows. Pressure byure the looking at the spread between offshore trading and onshore. That spread at the moment is very tight. As of today, there is no pressure on the capital account. If you go back to january 2016, the spread was wide and we saw significant pressure on the capital account, money moving out. They have a very good control over the capital account. I would be surprised if we saw massive pressure on capital outflows. Manus the consequence is that commodity prices, they have all had a good run all based on this stability story and constriction of supply in china. Does that sustain . Youre looking at the zinc at the 10 year high. Guest if you look at iron ore and copper, iron ore is trading at 74. We have a low of close to 40. The correlation between chinese growth, mutual stability, i would use the word acceleration in the Second Quarter. What happened in the Second Quarter . Chinese economy accelerated which boosted prices and underpinned the aussie dollar with 1. 80 against the u. S. Dollar. Anna bob parker remains with us. We will learn more about the dreadful attacks in archuleta. 13 were killed and 100 or more were injured. Manus there is a live shot of tokyo, the Emperors Palace there. The yen rising about a quarter of 1 . In the past three days, there has been a significant in the dollaryen, moved from a 1. 22 . Is the world more concerned about barcelona that gary cohn in the United States remaining with the tracks tax infrastructure . Guy johnson joins us. Guy i will make sense of these markets. For a lot of us up on the trading day, what is going on . The sentiment this morning is the reasonse for it, probably many. The ftse will open down one half of 1 . You can see that here. The wa to the futures box. We are down by around of 1 . You go to the gmm and you see a sea of red on the equity markets and easy the risk off trade. Periode come out of the way is ar 3 10 either new era of volatility. Markets are moving around one percent, 1. 5 . That was the story yesterday. We talked about the equity markets around the world. You mentioned think continues to climb. You mentioned think continues continues zinc to climb. You take the first 30 minutes trade, back it out of the previous close and you look at and back end of the session basically the idea is, smart money makes its move at the back money the day, the good makes the move at the beginning. Whether or not you should pay much attention to this, i dont know. ,ave a look at your bloomberg its a fun function you can find. Becky. Anna thank you back to you. Anna thank you. The top story they are dealing with this morning is spain, the spanish terror attack in barcelona. Please killed five suspected terrorists in a town south of barcelona overnight hours after a van attack in the catalan capital left 13 dead and 100 injured. There is a live picture from barcelona and police are saying the operation carried out south of barcelona was linked to a possible terror attack. The are also saying operation is linked to a possible terror attack. The next story there, is the impact on the attack and the concern over the growing controversy around donald trump, that is spooking markets. You have dollaryen on the move, the threeday rally in terms of yen by 1. 25 . We are heading to the 1. 9 . Trade, theality reality of the Trump Administration is that gary cohn is what wall street and the banks were banking on. Anna pressure on the ceos not to lend their reputations to President Trump pressure on the other side in the reverse, pressure on the market and Business Committee who are in the white house to remain in post and bring their voices to the table. Its interesting to contrast the voices. Manus doing your duty ursus doing once personal opinion. Anna a lot of people are asking themselves those questions. The other story we focus on his Energy Capital and buying cap line. That is according to people familiar with the matter. The firm could finance that transaction soon. Manus ever learn is attracting air berlin is attracting easyjet. They filed for insolvency this week as its lead investor pulled away. They pulled the plug on funding. Anna they will rely on a federal loan to keep flying for the next three months. Lets bring in tom labelle who joins us from frankfurt. Various parties and airlines go from here . Berlin hasoment, air a fleet of 150 planes and that will be the focus at the moment of any negotiations for the administrator. Would best beneficiary lufthansa, who has possession of 38 planes over a least back rate from air berlin. There is another 17 longdistance that it will be interested in. Fromest are shorter hauls airbus. Those would be of interest to , theet and also to tui operator out of germany, as well as condor, which is owned by thomas cook. A want to beunds the biggest is lufthansa going to be the biggest beneficiary here . You might see an expansion in longhaul movements. Probably the biggest winner . That is a good question because that will be adding to the capacity potentially. There is antitrust questions because air berlin is the second biggest germanbased airline after lufthansa. You have the antitrust question and a capacity question. Lufthansa was arctic protecting a fairly hefty Capacity Growth without Something Like this happening. So if it takes on that extra capacity, extra seating, extra planes, it has to figure out where to fly them properly and whether its worthwhile adding the question is, are they able to match the growth to the Economic Growth . The newspaper in germany has been citing the Cartel Office saying the and tech trust the antitrust option in the u. S. Tom it is a stateowned company out of abu dhabi. This basically means they have lost two of their bigname investments abroad because alitalia is also having difficulties in their administration. You have got that plus air berlin and there are plans for developing a network of holdings in europe and it is not succeeding. Is struggling,bt its declaration of insolvency. Anna tom labelle, thank you. Its a fascinating story. Looms, asman election federal loan will keep his business flying for the next three months. Ryanair cries foul. His could get controversial. Guest political element of the interesting question is, who makes decision on the antitrust question . Berlin or brussels . I wouldnt be surprised if after the election we see a decision on a petition being referred to brussels. I would also challenge whether the funds a needs of the roots lufthansa needs the roots. They have a clear Business Plan and that Business Plan for expansion. Seem to be doing well at the moment. It never included an acquisition at both ends. I wouldnt be surprised if we air berlin. Ation of i understand why ryanair are making the comments they have. I would not be surprised if they picked up air berlin. Not all, but part. Manus its a moment for Carolyn Mccall to reflect this as some of the last she does before she moves on. They can be local. Lets change tact a little bit. The euro and the value of the euro is something we have debated several times with several tests. Prideropean banks themselves on the Exchange Rate, the appreciation of the euro to date could be reflecting the change in the route of fundamentals, but they are concerned and the express their concern that the risk of the Exchange Rate going to the future. Why are they making a hoopla over the eurodollar . We are nowhere near the days of 1150. Guest since it was created, the range on the euro has been. 82 21. 6, the euro started life at 1. 17, so we are exactly where we started the euro. He recent volatility if you look at your charts, is being fairly minor relative to some of the huge moves, notably in 20012006 that we have had. The volatility has slightly picked up recently. With the European Central bank is worried about is not actually the absolute level of the euro, but the speed of movement. So far this year, we have had a move from round one of five, at one stage we are at 1. 19. It comes with a severe risk warning but i stick to a view that we will be close to 1. 20 against the dollar and we might be at 1. 25. Weakness,rtly dollar but it is also based on the assumption the eurozone recovery , will be close to 2. 5 annual, same for next year. Counts on the slow unwinding of the qe. It is reasonably clear they will reduce the qe 240 billion by the middle of next year. We was a cutie next year. Anna and you think that is priced in . Guest i do. Anna i got a message from a traitor that thought this would be verbal intervention. Guest he is absolutely right. En . A is it premature th is that not out of the ordinary . Guest i do think they are concerned about the speed of the movement in the euro. And october, we will probably see the eurodollar trade perhaps back 1. 13. O 1. 14, we are in a period of consolidation. Manus do you think there is any merit in the thought that this makes it easier for mario draghi to go to jackson hole next week and not so much pressure on him to verbally intervene as he did a number of years ago . Guest i think that is correct. Dont expect major policy statements from mario draghi. I think this comes before anything he says at jackson hole. Him reduces the pressure on in his speech at jackson hole. What you will see next week is essentially his allusion to number one, the fact the eurozone recovery looks more robust than it did a year ago. He will make some comments about the fact it is prichard to say inflation is the fact that inflation is edging up again. Diversionary risk is reduced, but Esther Draghi will be in a much happier position if he could look at 1. 8 . He has yet. The ecb wants to move slowly. Anna bob parker stays with us. Manus coming through from barcelona, 13 people have died and 100 people have been injured. Minister forrench europe and foreign affairs. , twice visit barcelona six french nationals we now understand have been hurt in the barcelona attack. These are the lives pictures coming to you from the city this morning. Anna further updates to the morning on the latest from barcelona. If you are a bloomberg customer, you can watch the tv show on the regular tv shut or go to tv. You can get the charts and the functions we use and you can influence the conversation by clicking the button at the bottom of the screen that says, ask asked a question. Manus we are granted rare access to the largest Digital Currency mines in the world. We take a look at bitcoin after it stocks source over 4000 for the first time. This is bloomberg. , everybody,e back it is 6 48 in london, 1 48 in new york. S p suggests it could be stronger, but we lost a decent amount of ground in equity markets yesterday. A mix of terrorism in barcelona, concerns about geopolitics, of course, and also turmoil in the white house, the future of gary cohn, for example, a preoccupation for investors. Lets get a Bloomberg Business flash with juliette saly. In spank him up suspected terrorists have been killed by police and six civilians injured in a competition in a town south of barcelona. The incident came hours after 13 people died and 100 more were injured when a van was given down las rambles avenue. Two suspects were arrested although the driver is not among them. According to the intelligence group, Islamic State has claimed responsibility for the attack. Private Equity Firm Capital partners has reached an forement to buy calpine 5. 5 billion in cash. Energy capital of may and asked takeover as early as today. Getine investors would shares as part of the deal valued at more than 70 billion including debt. Shares of indias secondlargest Software Company has slumped after the ceo resigned amid heightened acrimony amid the board and its founders. The current chief operating officer will be interim ceo and the executive vice chairman until a replacement is found. Strategiccus on matters and receive an annual salary of one dollar. That is your Bloomberg Business flash. Manus bitcoins record rally is proving a boom for china, but country at the heart of the bitcoin currency economy. Anna it dominates the mining of new bitcoins. John mckenzie has had a rare access to one of the largest Digital Currency access mines in the world. to the uninitiated, the world of going in the abstract. The currency comes a whirring to life in mongolia. This mind is operating i a leading maker of mining chips and machines and it is one of the largest in the world. This is really part of the Central Nervous system of the bitcoin economy. Hear, mining machine to processing transactions and generating new bitcoin. The machine salt complex , a decentralized ledger, in the process, miners are rewarded with bitcoins. The difficulty increases with each mine, requiring more Processing Power and more energy, something that comes cheap in mongolia. In china, the cost is really low so when people make a good my farm, they can do it at a low cost. It includes 50 people. Many of the bitcoin generators and of traded on the cryptocurrencies exchanges. Some of the biggest in the world. They come under the scrutiny of regulators anxious about bitcoin eating used to funnel money abroad. Minors are being allowed to thrive. Bit main, which claims 20,000 customers, is laying the groundwork for a possible ipo. It is also looking to spend 200 million expanding in the u. S. Million to build a facility in the u. S. , the largest investment in the u. S. 100 millioncovert or 200 million. John that is a series of bet. If you are going to bootstrap the currency at zero, there will be bubbles and a lot of volatility all the way up to becoming a global currency. Doubt thehave little value will continue to soar. The bitcoin price is going up to 100,000 is quite possible. Within what timeframe . Five years. John john mckenzie, bloomberg. Manus optimism on bitcoin. 351 of it bob parker 351 . Buyparker, would you bitcoin and you think it is closer to a real concern than a commodity . Guest and he currency will be a medium of exchange. You can put forward an argument as a potential fear currency ofld be a useful Medium Exchange when you and i exchange in goods and use bitcoin has that medium of exchange. Second factor is, do you regard currency as a store of value and a stable store of value . Investors will be very worried about the volatility. Anna it has not been doing badly. Guest that is on the outside. Lets not forget we had a volatility on the downside. Kindas to ask the question the graph, to what extent is that move generated by daytoday speculation . Investigators investors will be nervous about whether there is a spate lifted overhang. Manus traditionally it is gold and swiss francs. Does it have enough of a market . Guest the third point is that any real currency has a central bank kind it. This was frank is controlled by the Swiss National bank which controls the supply. Likewise is in the Federal Reserve like the u. S. Dollar. Are you comfortable investing in a currency as a medium of value,e, as a sort of where there are computer algorithms controlling the supply . We know the supply and we know where the industries of gold are, but investors need to be comparable with the computer algorithms that control the supply. If you are not, you should be concerned about the speculative volatility. Anna many investors are not comfortable with what Central Banks have done. Guest then you can get into the debate that is bitcoin due to the fact because investors are less relaxed because of central bank behavior . Anna does somebody need to lend a respectable face to bitcoin . It has to be the domain of hackers and the shady underworld for a long time. The former ceo of Morgan Stanley has taken an interest in a startup that acts as an Agency Brokerage between investors that want to be in bitcoin but they dont have the appetite for the legwork. Important because if bitcoin is going to succeed, investors want to know, are we comfortable with what determines the supply of that coin of bitcoin . Re comfortable with the speculative are we comfortable with the speculative activity . If one looks at bubbles and what creates bubbles, it creates a clear picture to me. Anna thank you very much. Bob parker, investor manager. Manus one of the main stories we are covering his the latest from barcelona. Lets leave you with some pictures there, live pictures, 13 so far have been killed. 100 people are injured. 26th of those that have died are french nationals and the french minister will travel to barcelona today. Anna the update on the attack yesterday, five suspected terrorists were attacked and six civilians were injured in a confrontation just south of our sloan. This is bloomberg. Got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Guy Police Killed five suspected terrorists after an attack in barcelona leads 13 dead and 100 injured. I want to say we are not only united by grief but we are especially united by the firm will it be those who want to take our values and way of living away from us. The president faces increasing criticism from gop leaders, u. S. Stocks fall amid mounting concerns of a policy or fomc voter manus he will notn says fire inflation before another rate hike. Balance sheet runoff soon. Since november since he quit as ceo. Manus this is our flagship morning show in the city of london. I am manus cranny. I am anna edwards. Our top story remains what is happening in barcelona and we will continue to update you with that. 7 00 so lets dive into what we are getting through. It is an Indian Business that dominates things this hour. Headlines coming through from infosys. , on thestepping away side of the next chairman who is a cohort, a founder of the business who tries to influence the direction. They are continuing to maintain corporate governance. He is the former counter. They say his actions are damaging the country company, they reject the ceo putting themselves behind the company who stepped the ceo that stepped aside going on to say it hurts the efforts to transform itself. The share price considerably this hour. N by 7 manus major protagonists this morning, the terror which has , the reality of those attacks very shortly. 100 injured. The consequences is what is happening in and around the white house. Equity markets are lower. This is the reality of gary cohen, the discussions yesterday in the market that he may well indeed be leaving the white house administration. 1. 25 , 500 dropped by 1. 5 yesterday. That consequence is reverberating around the world. The tax and infrastructure in the United States of america could be at risk. Dysfunction in the white house, a key concern. What does it do to the race to lead the fed as well . That is part of the conversation , a potential successor there. We expect these two concerns, terrorism on the streets of barcelona and the white house, leading equity markets lower by. 5 . Atmosphere, the dollar weaker by. 2 . Wellt the euro in here as because of the counts we got yesterday from the ecb. The euro is slipping by zero point 0. 4 yesterday. Little risk taking office far as the eurodollar trade is concerned. These are the one markets, equity markets have lowered to a high. The haven tenure bonds in germany 164. 19. Something much more bigger at jackson hole. 149. 99. Anna lets get the first word news. Juliette five suspected terrorists have been killed by police and six civilians injured in a confrontation south of barcelona. The incident came hours after 13 people died and 100 were injured when a van was driven down las ramblas. Site, islamiche state has claimed responsibility. Our neighbors in madrid, nice, brussels, or london have experienced the same for harbor horror. I want my first words to convey the solidarity and the whole of spain and the world. Juliette donald trump will not move forward with a council on infrastructure. The council, which was still advised ond when spending as much as 1 trillion, his cancellation follows the announcement on wednesday he othere finding to Business Advisory panels. Once considering joining the administration, has called radical changes. He told reporters in his home state of tennessee that the president is not yet demonstrated the characteristic needed to serve in his job. Tim scott of South Carolina said that trump compromised his authority with his responses to make last week in the charlottesville, virginia. Sentte house official has gary cohen as director of National Economic council. The former Goldman Sachs executive has been leading the Trump Administration efforts to overhaul the u. S. Tax code. Chinese prices rose in few cities in july, the Property Market is calling. Excluding governmentsubsidized housing, compared to 60 in june while prices fell in five. Global news 24 hours a day powered by more than 2700 journalists and analysts in more , you can findries more stories on the bloomberg at top. Closing out the session come on track for the for worst week since june. The wake of what we have seen in barcelona and of think coming through from the white house as weak as well. Beensx 400 off, there has a failure in hong kong as well. Stocks, look at emphasis stalling in india by 7 after the ceo resigned. The vicechairman in the interim. Hong kong 1. 7 billion deal to buy an asian unit from mutual life in massachusetts. We are seeing Development Stocks in hong kong and china rally, these linked to development on reports that the beijing assignment agreements for more to the list. Developments. There have been 82 sides of the china Property Market cooling. Stocks are actually underperforming. Theirerforming pricetobook value. We are seeing a cool down in development in china manus turning to our stop top story in spain, a terrorist killed by police and injured in a confrontation south of barcelona. The incident came hours after 13 people died, 100 more were injured when a van was driven down las ramblas avenue. Officials said the driver was not among them. Is claimingc state responsibility for the attack. For more on this attack lets see who joins us from madrid. There he speak to you this morning. What is this latest on this attack. Andeople were killed initially, it fifth died has been injured. The child side is 100 kilometers from barcelona. They were in a vehicle that tried to get past the checkpoint. They got out of the car and ran into the crowd and tried attacking people. That is when the shooter stop it shootout happens. They were also said carrying bombs with their belts. Thes lets circle back to attack in barcelona. What do we know at this time about that first attack so far . What we know so far is that it was similar to what happened in nice last year. A vehicle drove down less run bless at a quick speak loss ramblas,ts las killed 13, injured 115. The driver is still at large. Police arrested other people who are believed to be in the implicated. They have not been able to find the driver who is believed to be the perpetrator. One thing i would like to point the police are saying they may be linked but there is a third event which the police were forced on which happened wednesday night around that night. In another town outside barcelona, a house exploded. The police thought that was because the people had been working with gas. Now the police say it is linked to these incidents as well. It seems the terrorists were doing a test and it may have gone wrong. Anna i am sure the hunt is driver, the man who drove it. We know from the french that a number of french have been injured by this event. What else is on the cart for today. Aside from the hunt for the reportstor there are saying that police are looking for another group of people who support orted in the may have helped to organize these attacks. It is a big area. They have been acting pretty strongly on that. Obviously they have support from the government has well. That is where the main focus is going to be. For anybody else that may have been linked to these attacks. Manus thank you very much. Post bring in our guest for her First Response to the latest developments. There are a number of references here about what happens. Bonds,s going into dollaryen. They are talking about the collapse of the valentines day selloff in 1994. Is this kind of incident contained . Our markets more used to terror . Unfortunately yes. Markets can be callous. It is a binary movement but ultimately investors have to become accustomed to terror attacks area with have had them in london, france, now of course in spain. Perspective of growth, this will not have a huge legacy on the type of impact. The markets have been reacting over the last few weeks. We saw a rapid bounceback to those tensions in the s p 500. There are other things that the market is really focused on. Potentialse is a would lock in the white house. Yesterday, we saw a weakness in u. S. Stocks. Have taken ons to some significance. Truth to power from a markets perspective. Leaders are business and trump has lost the advisory of the ceos. That is potentially quite damaging. Those rumors hit the market weterday, the ceos going dont know that. The concern has been in the markets all year. We know that trump has been fighting scandals since the start of his tenure. Were left with this perception that in the next four years we are not going to get a lot done. The dollar goes in a state of paralysis. That noan old concept longer holds for us . These are wanting aggressively. This is the dollar index. What do you make of the old analogy . There is a link between the dollar and safe haven. The treasury market is a safe haven. You kick the boxes in terms of what makes a safe haven, it doesnt really take very much other boxes, budget can budget position etc. Betteralways been the safe haven. We might be talking about the u. S. Currency as a safe haven. To see some tax cuts and investments in infrastructure in the United States, maybe secondbest option is a like of activity on capitol hill. As i mentioned something that can boost the economy. One of the reasons that the dollar has this year is because there is a rotation of money back into the euro. The euro is suddenly looking better. This hugee euro has account and we cant estimate that underestimate thats. More about the euro shortly. The ecb account reveals concern that the euro could overheat. Ahead ofario draghi this jackson hole appearance. This is bloomberg. Anna welcome back everybody. Suggesting all the features around europe pointing down. We will come to that in a moment. The attack in barcelona is going to be something that dominates many traders. An update on something that is happening in india at the moment with share prices down more than 7 . The european morning, we are getting further lines coming through from the ceo stepping down of the company. He is on a Conference Call right now defending himself in putting forward reasons. Allegations against him created a negative environment to do his job. Going to actually report, he is second stepping down as ceo but not entirely away from the of the cofounders of the business and the ceo. We continue to watch share prices. We are getting set up for the last trading day of the week. Stoxx 50 indicated down. 05 . Yesterday of course the disquiet in the market in the United States down by 1. 5 . Extended, that is carrying through. Money is going into the german bond market. S p futures a smidge of relief for them. 1 8 of 1 i should say. Good morning. Suspected terrorists have been killed by police and others injured in barcelona. The incident came hours after 13 people died and 100 more were injured when a van was driven down las ramblas avenue. Officials say the driver was not among them. Islamic state has claimed responsibility for the attack. Madrid,eighbors in nice, brussels, berlin have experienced the same horror that the people of barcelona have suffered and i want my first words to convey to them the affection, the solidarity, and the affinity of the whole of spain and the whole of the world. Anna willingness to support the private equity drugs maker. According to people familiar, for shares to run out wednesday. The private Equity Companies declined to comment. That is your Bloomberg Business flash. Anna thank you very much. Revealed that Central Bank Officials expect concern over the risk of an Even Stronger euro yesterday. Trading higher against the dollar. Manus the senior currency strategist, warned about the value of the shock and horror. Surprised that they flag this yesterday worst taking the wind or is this taking the wind of the draghi sail . The fact that he did not allude to it is one of the reasons that it accelerated. Eurodollar,t the i think it is true. It is often the pace of the movement which is the bigger problem not the actual level. Still undervalued, we look at these estimates, i think that is about 126. It is not overvalued. Anna we have mainstage performances from janet yellen to come. How does this change your expectations from that event does it lessen your expectations even more . Suggesting he would not be talking about policy, indicating we may not get much from him at all at jackson hole. It is the work to carry on going higher at a pace we have seen in june or july. Tapering could be delayed. The eurodollar is in a uptrend. We could still be in that uptrend and i do think that is a natural part of an uptrend. Manus im not sure exactly what time we have left. Parity discussions. His is now going to fade into the distance . Is not a central but certainly if the u. K. Economy can, i think it is out there. Currency senior strategist. As we go to break an update on the top story. Live pictures from las ramblas avenue. The iconic boulevard that stretches to the coast from barcelona. Very close to the french border. 26 french have been hurt in the attacks. The Prime Minister is on his way to barcelona. We will be tracking it right here on bloomberg tv and radio and online. This is bloomberg. Guy welcome to bloomberg markets. Cash is opening in around 30 minutes. Im in london, matt miller is in berlin. Police kill five suspected terrorists after an attack in barcelona leaving 13 dead and 100 injured. S p falls, volatility spikes. Does risk off have could further to run . Keep your eye on