Ahead of testimony. Will he provide a clue as to the Central Banks path after july . Forecasts net inflows in the first half despite an overall loss of 14 million francs. Scherzer called hire at the start of european trading. U. K. Mps backup plan to prevent a no deal brexit but Gordon Johnson refuses to rule out suspending parliament in a debate with jeremy hunt. Welcome to the European Market open. Session inkluster the asian markets, range bound on many markets waiting for Jerome Powell. It looks like we will be range bound at the start of the trading day in europe. Here came futures pointing flat with a slight downward bias. A few interesting corporate stories and global stories that might be expressed through european equities. This is the gmm function on the bloomberg on the asian session. It flags any outsized moves based on standard deviations. Weve got some markets to the upside in asia but the overall move in the asian market is pretty balanced. In a Holding Pattern in Global Equities as we wait for more clues from Jerome Powell. July seems to be the expectation from when we see a rate cut from the fed but after july remains a big question and something we will talk to mark cudmore about. Treasury yields, heading up a little and that has supported the dollar overnight. That is something in the fx market to keep an eye on. We are at more than a fiveweek high on the dollar versus japanese currency. Interesting to look at emerging market currencies, we dont see the peso. That is good for anyone looking for low volatility in the peso. We saw it falling on the news of the ministers resignation yesterday. We are 27 minutes until the start of european trading day. Lets get to the markets with mark cudmore, our mliv marketing editor in singapore. Givingyou have been thought to what we will here from Jerome Powell and how he will move markets today. I think your focus on what happens after july. Alldont see much chance of shaking the markets expectations for a rate cut this month. Mark absolutely. As a team, we try to divide debate the outcomes. It would be surprising if he doesnt validate the Market Pricing for july. The fed doesnt precommit. I dont think he will say yes, we are cutting in a few weeks time, but he will not change the Market Pricing because to change the Market Pricing for july, he would need to be very proactive. Will kind of is he leave the Market Pricing for july. The real debate that we are unsure of is whether he will get away with not affecting the Market Pricing after july or hawkish or dovish. If he is dovish, what are the reasons the market perceives as to why he is dovish . Is it because he is panicked by the economy . Is it because he is being bullied by the market . Or is he being bullied by trump . Cut, what be a july is the rate path after july, and if he is dovish, why is he the best . Anna the why is going to be crucial in answering the question of the day. Will the Treasury Curve be flatter or steeper after Jerome Powells hearings . It goes back to why we are getting these dovish messages from the fed and to the extent to which they are dovish. Mark i think that is very much the case. I noticed there is a bias out there from clients for a steeper curve as the more likely outcome the matter what happens. He isis a view that if slightly hawkish and surprises the market that way, there will be a larger reaction at the backend because he is saying look, we might cut in july but it is an insurance cut. Key are not heading into a 0 Interest Rate world. Why is the Market Pricing that way . Goes the frontend, we will cut rates aggressively, that would be seen as a surprise he might, but stimulate the economy again, stimulate inflation and therefore after the initial reaction, the curve might sleep in stephen. The written steepen. There is definitely a lot of uncertainty. Greenspan,annel alan the maestro of fed governors and not surprise the market at all. It may be a complete nonevent but fewer people are thinking that is the case. Anna lets have a word on some of the data we have seen overnight. A host of fed speakers, but also data out of china. Deflation, factory deflation. What is new for you overnight . China has stone problems. Would have been focusing its own problems. We have been focusing on the u. S. Economy but in china, the pickup in q2, the bounce in the economy and something i believed in that they restimulated the economy, there are worrying signs. It is coming from the architecture. The seizure of the bank has led that to go to the other parts of the economy into the medium and small banks. Further idea of ppi is squeezing Profit Margins which we know are already in trouble around the trade war. Were also hearing about supply chains shifted off china had an immense case. That are a lot of stories that are worrying about the chinese economy and that is a reason i am worried about the Global Economy. This is not just one of the Major Economies that is trouble, it is all of them at once. They all have idiosyncratic problems that maybe they could deal with in isolation, but when it comes together at once, the china is trouble, u. S. Is in trouble, and europe is never out of trouble, then it is a problem. Anna thanks for the summary. Mark cudmore, bloomberg and live managing editor. Will the Treasury Curve be steeper after Jerome Powells hearings this week . The suggests a bias for steeper side of things. Reach out to the market live team. Ib tv is the function of your bloomberg. Breaking news across the bloomberg, based in madrid wins the saudi contract with 3 billion of value. That could move the share price of this particular business, based in madrid. Infrastructure, construction business. This comes a day after the saudis awarded 18 billion in deals for work at various oil fields. The saudis, giving out some contract at the moment in various parts of their energy economy. Lets get a first word news update with olivia hows in london. Chinas factories barely escaped deflation in june, unchanged from a year earlier. Is deceleration rate troubles repaying debt. The largest supplier of consumer goods is warning the trade war threatens the existence of china factories. Because now, the u. S. China trading corridor is being disrupted by whether there is a deal or not, whether there are tariffs or not. As result, a lot of customers, u. S. Base customers are trying to diversify outside of china. Cannot leave china but diversified outside of china. Putting less eggs in one basket. Olivia you can members of parliament have a livered a warning to the next Prime Minister. They wont allow a no deal brexit without a fight. The house of commons passed a sure from stopping the eu u. K. From leaving the eu without an agreement. Jerome powell will likely leave rate cuts on the table when he testifies to congress after the strong jobs report. The Central Banks chief is set to speak today and tomorrow. The minutes of the fomc meeting are to be released tonight. Deutsche bank will release bonuses according to the ceo. It is despite the german lender reporting its Fourth Annual loss in years five years. Deutsche bank is trying to prevent its best employees from jumping ship. Climate change is undercutting ending hunger. The world isnt on track to an supreme extreme poverty. The report says the pace is slowing. Global news 24 hours a day, onair and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Anna olivia hows here in london. Next, can airbus get back on top . To thepany looks to get top again as the 737 max 8 say toll on boeings numbers. Bloomberg radio is live on your mobile device or dab digital in the london area. We are taking you through the corporate news. More of that to come. This is bloomberg. Anna welcome back to the european open. 70 minutes until the start of the equity trading session in europe. 17 minutes until the start of equity trading in your. Europe. Down. 1 on European Equity markets. A stock that could outperform today, gam. But in a a net loss sign the asset manager might be turning around its fortunes after a scandal, it is forecasting net inflows for the period. With more, our finance editor in rome. We see the stock called pirate the open, suggesting the market will focus on the inflows more than the profits. Today awe are seeing lot about a damage control exercise. Yesterday, shares fell 11 after ubs set out a note questioning their earnings Going Forward and their inflows. If it does rebound 6 , that is making up some of the ground from yesterday. The announcement was unexpected treat they are putting out their earnings on july 30. A response for them to try and say it is not as bad as it looks. Contextry important with the move yesterday in the share price. Goes back many months, the suspension of tim hayward. Had to liquidate their second ggest strategy. How far through that process are they . Ross that is one of the positives from today. They are confident they will wrap that up completely by the middle of this month, july 15. That is good. They are still on track for that and it is certainly something investors will be glad that they have been pretty quick we and efficiently. It will be a positive for the shares and there were some positives for acid under management improving assets under management improving. Anna thanks very much for the update. Ross larsen, our finance editor in rome. Lets get a Bloomberg Business flash with olivia hows in london. Olivia boeings Second Quarter jet delivery slid 54 from a year earlier after the global grounding of its best telling 737 max 8 after two crashes. Airbus next 200 orders ahead of boeing after contracts for 145 planes engine. Tesla is planning to boost production in fremont, california according to an internal email. The news comes after tesla achieved record deliveries in the Second Quarter. It beat expectations and eased fears of demand for electric cars. Sold ks spacex has in equity. Loan investor wasnt identified in regulatory filings, but the pension plan announced it has backed the company. Richard bransons burgeoned galactic will become the worlds first publicly traded tourism company. The dealing to will fund the company until it can generate a profit. The deal from the saudis, that was not possible and if we were to actually take this public ourselves, it would take a long time. I think the approach seems to work very well for us. Olivia that is your Bloomberg Business flash. Anna olivia hows in london. Breaking News Conference data. May industrial output, rising 4 year on year. The estimate was for an increase of 1. 6 so the number looks to be above estimates. Month on month, the industrial output figure rising 2. 1 . Month on month, the estimate was for an increase of 0. 3 . Manufacturing production, getting those figures. That is for the French Economy this morning. We see the euro spiking a little on the back of that. 112. 15, now at 1. 1215. This takes us nicely into an airbus story. And aviation story. That fromring about olivia and industrial output numbers. Lets get to Manufacturing Company numbers. Are european transport Deputy Editor joins us on set in london. Good morning to you. We have data out of both boeing and airbus now . Give us the state of play. Sixmonth figures from boeing and airbus, and this is the impact of the max grounding for boeing. Also, the fact airbus has got its act together after a slow start to orders too. After the first six months, we have 145 orders for airbus alone in june from the heiress paris air and that takes them into positive territory. Boeing are 119 orders for the year. That is partly as a result of the cancellation of some max planes, but other aircraft being lost in the books. Some of this is because both manufacturers have massive backlogs already that stretch for five plus years. The incentive to order new planes isnt huge, put on top of that and boeing, we got the max being grounded. No aircraft maxs are being delivered. They are sitting around various boeingsants, so delivery tally fell by more than 50 , as well. Is not exactly streaking ahead because it is hard to eke out orders at this time but they launched the 321 xlr which is longrange, narrowbody. The top end of the market that the max is aiming at. Anna remind me where we got to on the 737 max 8. And you were in paris, we were hearing a lot about estimates and gates as to when the aircraft would fly again. Willie walsh put his backing behind the aircraft. Or have we gotten to . Nothing from yet. Since the airshow, we have had other issues emerge. Boeing and the faa said there are a few more things we need to address. At the same time, we are hearing the european regulator is settlementensure the that is eventually reached on getting a max back into service satisfies its own requirements and those are more stringent than those at the faa. Anna thanks for the update. Chris jasper, european transport Deputy Editor on the aviation beat for us as morning. Next, the stocks to watch at the open. We talked about airbus and gam. Bayer discussing a combination of its Animal Health business with aramco. This move stocks in the yes u. S. Yesterday. This is bloomberg. Anna welcome back, Bloomberg Markets the european open. 7 53 in london. Six minutes till the start of the trading day in europe. Lets get stocks we are watching around the east newsroom. Page group, and bayer. I think weve had gloomy news, downgrades out of the sector. It comes after yesterday, a on the from basf chemicals side based on Macro Economic conditions. Today we had another warning that is not companies this effect. Operating saying the profit will be on the low end of expectations. Concerns havet led to profit decline around 2. 4 in the last quarter but ive looked at the numbers and regionlook at it, the declined 8. 7 in terms of Profit Growth from around 9. 9 in the last quarter. It is not just the u. K. That pagegroup is warning not, it is the entire european region and it is a huge read across the companys. Companies. It could be a big Sector Movement in terms of this read across. Ran stead was already down. Dani, lets come to you on bayer. Dani they have been planning to sell their Animal Health care business, mids from private equity firms. A reuters report hit that bayer is has reportedly approached alanco. Said a sale remains the top irt. To exit still looking the Channel Health care business but this means while they are exploring the merger, the bids from private equity funds will likely have to be put on pause. Senseays the merger makes but it will be complicated from a regulatory standpoint. This will be the first session traders will be able to price the news in. Anna dani burger and it showed easton, thank you. First go is the function on your bloomberg to follow stock stories. Newsing new slow flow. Plots to watch this is bloomberg. Anna a minutes until the start of cash equity trading this wednesday morning. This is the European Market open on bloomberg tv. A minutes until the start of cash trading. The asian equity session, pretty flat and it entirely. Waiting for Jerome Powell to speak later. U. S. 10 year, waiting for powell. The market is convinced about july. Questions remained about the rest of the year but yields ticking higher, 2. 8 , supportive to the dollar. The pound, down. 1 or so. Johnson andm boris jeremy hunt, both vying to lead the party. Boris johnson has been doubling down on his brexit by the end of october assertions. Parliament has made moves in the background block any attempt at no deal. Wti crude up a little on data from the supply story in the u. S. It does remain a day where we could be in a Holding Pattern, waiting for Jerome Powell to speak later and he just doesnt speak today, but tomorrow as well. We will hear a lot from fed speakers. Dani burger will take us to how many we will hear from. That is part of the narrative of the markets this week. Inome powell today washington and tomorrow, so we will focus on that. What will he have to say about confirming Market Expectations for july and about longerterm or mediumterm into the rest of this year and early next . That is what we are talking about with their mliv team. What is driving his dovish commentary . European equity markets, slightly more negative start to trade than anticipated. The spanish ibex off. 5 after the periphery move. Resilient,0, more down around 18 of a percent. 18 of a percent. Begin is flat to negative. Picture,of the sector we dont see many areas of green. A few coming through, a few industrials and financials looking in positive territory. Looking as ifs, there are movers to the upside. That is the sector story for you. Getting to what we are seeing on these markets this morning from a stock specific perspective, lets have a look at what is going on on the mov screen on the bloomberg. Overall in terms of the market split, stocks gaining versus declining, two hundred five stocks going up, 377 to the downside. Seems to be a preference for moves to the downside. A up 2. 25 . I dont see a great deal of news flow behind this. A few