Welcome. You are watching the pulse. We are live from bloombergs european headquarters. I am guy johnson. Busy morning for the eurozone. The french finance minister is ofnning 21 billion euros spending cuts in 2017. He has outlined next years budget. He says the french government sees the deficit falling 4 in 2017. We wont get 2. 8 until 2017. This is the line that really encapsulates the story from the french this morning. The rhythm of Debt Reduction is appropriate to the situation, safire says. No further efforts will be demanded of the french. The government needed to put the country on the right track. Refuses austerity. That tells you a lot about the direction of travel here. It is going to maybe continue to change the relationship with germany. We have also had news out of the germans this morning when it comes to manufacturing, below 50 according to the pmi this morning. This is the flash number. That has sent the euro tumbling as well. We had a touch at 1. 26 yesterday. We are
But we hear they are still confident on china. I dont see people pulling out of china but i continue to see people putting money into china. G20 leaders warn russian president Vladimir Putin more sanctions could be on the way as they meet in brussels to discuss possible measures. Now to our top story, a quite astonishing story in japan. The gdp number shows a 1 president 6 contraction against the expectation of 2. 2 growth. One of the analysts said theres a big drop as businesses cut back on investing. Key consumption is another weak quarterly factor. Japan is now back in a technical recession following the drop in q2 after the sales tax came through. The latest fall is cementing last weeks rumors of the second tax hike to be delayed and a snap election will be called. Now what does that mean for the markets . The nikkei, sorry, the yen hit a sevenyear low of 117. 06 but they are currently up. 92 . Does this mean we get more easing or have a snap election . Or a sales tax hike is delay
August. Personal spending suffers a drop since january. Latest moon shot project unveiled by google x. Delivery drones are real, and google and amazon are not the only Companies Taking to the sky. Apple preparing to catch its rivals and roll out technology that turns the iphone into a credit card. Well see september 9. First up this morning, Economic Data shows a decline in consumer spending, down. 1 in july, and auto purchase account for the weakness. The dow and s p each up more than 3 for the month, and nasdaq with a more than 4 gain. S p, nasdaq, and russell on pace for the best performance in 14 years. There was a contest whether august would be the best month of the year. It will be tough. Dow needs 16 106 points, and futures are not indicating that sprept this morning. Still a strong month. Four straight weeks of gains, something not seen. Since november. Overall, a strong month. Everyone is trying to figure out whether the growth we saw last quarter can be sustained. Economists
Also this week, aqap released instructions on how to make a new, difficulttodetect explosive and urged followers to use the bombs aboard u. S. Airliners. Al qaeda appears to have financed the kouachi brothers with 20,000 to assassinate the editors and cartoonists of Charlie Hebdo. French investigators suspect that their spree was not intended to end in a shootout at a printing plant near Charles Degaulle airport, but with the shootdown of an airliner using grenade launchers the terrorists possessed but never fired despite several gunfights with police. Last sunday, 3. 7 Million People rallied in cities across france to support freedom of speech and show solidarity. In paris, more than 40 World Leaders, including the u. K. s David Cameron, german chancellor Angela Merkel israels benjamin netanyahu, and the Palestinian Authoritys Mahmoud Abbas attended a march of some 1. 6 million parisians. Conspicuously absent, any american official higher than the ambassador, an oversight the white ho
Im very excited for this week. We will get to that in a second. Pending home sales in february scarlet fu has all the headlines. Scarlett pending home sales coming in much higher than anticipated, 3. 1 gain in january on the yearoveryear basis of a 12 increase when economists were looking for an increase of 8. 7 . Pending home sales track the number of contracts in a given trade, seen as a forwardlooking indicator. Existing sales another report that we give you at times like this, tallied after forwardlooking indicators that could signal a busy spring selling season for the Housing Market in the u. S. We should mention the january numbers were revised lower even in the face of damaging weather here in the northeast. 3. 1 in february month over month the 12 increase on the yearoveryear. U. S. Stocks are higher and remain higher no Real Movement there, the dollar picking up a little bit for the dx why index. The 10 year yield and two year yield and twoyear yield remain lower, no real cha