Welcome to the pulse p where live from bloombergs European Headquarters in london. I am guy johnson. On scene is she will be here in the next hour. She will be up and surveillance. Lets check up on the markets and see what is going on. This is the picture of negative euro stocks, 1. 1 . Banks are doing the damage. You can see the safe haven trade, dollar yen trading one one dollar . 12 most people are telling me we are at a stabilization rate. Lets get your course of. Heres nejra cehic. Nejra thinks guy. In the Us Government has stuck with its plan to narrow the deficit in the next fiscal year. Financial minister says the shortfalls 3. 9 of gdp. That is the smallest gap since 2008. Providing relief for farmers and a budget that signals the intent to win back support in rural areas ahead of key state elections. Prospects facing the of a grand alliance after the general election. Prime minister is expected to finish ahead of the pack but will have to negotiate with other parties. They in
Price but is still banking on 40 a barrel. We are going to ask the companys ceo at 8 30 london time. The g20 story front and center. Carnies point is an interesting one. And schaeuble still banging the drum about structural reform. He sees that as the only way forward. Hans there isnt a whole lot of structural reform heading in the direction schaeuble would want in germany. Toy have all these refugees build housing for, to feed. That is a lot of fiscal stimulus. At the bundesbank, they are talking about having 0. 25 increase on gdp. Schaeuble in some ways is making the opposite argument of what hes doing at home. Guy plenty to talk about. We need to talk about the cpi story as well. Inflation, lets run you through what the market looks like with 28 minutes ago until the equity market open. Is a risk on story. It has been a risk on kind of week. Stoxx 600. 1. 2 . Ftse looks like it is opening up 1 . A littlealk basf later. Ats lets take a quick look some assets. Brent up just a little b
London. I have a chart here of the shanghai composite index from the last three days. It shows the weakness coming from the asian session. Around this china story. Industrial output is below estimates. All of that initially got the market thinking that maybe the Chinese Government will give more stimulus. But that be a good thing . We are now seeing some weakness coming through. It is moving a little bit lower, the shanghai composite. Lets put that into context. What does that mean for the rest of the asian trading day. Lets get to asia. A precipitous drop here. You showed the charge. Here it is again. Here is the shanghai composite. Check this out. A 3 drop and it has played out over the morning. Over two hours this point. We started the day higher on the shanghai composite and in hong kong which was at one point leading gains across the asiapacific. As investors noted the latest industrial output figure, what we realized is that this picture in china is not as strong as some may thin
We have breaking numerbers. Beatenquarter has estimates. Analysts were estimating 2. 5 billion. That is for a target operating euros of 9. 510. 5 billion. Last year was 10. 1 billion euros. This is the big insurer. It is involved in asset management. It is all about pemco. The biggest in the world. Bill gross has been under scrutiny team. His management style. They are not the most harmonious. And now he is chief economic advisor. They are all intertwined. Has had withdrawals in july. The smallest monthly redemption since they began in 2013. The redemptions have lasted over a year. I yesterday afternoon, tweeted a pimco tweet to buy bonds. Someone said when you have long bonds there is one thing to do with the market. They get teased about that. It is their business. Outflows of pimco continued to slow. Yes we have had outflows but they are continuing to flow. Particularly in the United States it has been a volatile investment. It includes the global business, allianz as well. Down it