I im in edwards. Manus and im manus cranny. Anna this looks to be a touch above estimates at the ebit level. The Second Quarter netted 312 million euros. This is a company we have to talk to about brexit. This is a business that operates in the u. K. What will they have to sell . They have said they will continue to invest in the u. K. In the immediate aftermath of the brexit vote. Two of their competitors merged in the u. S. Recently. We will be speaking with the asset manager at 7 15 u. K. Time. Manus the swissbased drugmaker netted 5 billion, just ahead of the estimate of 12. 2 billion. Sales will be broadly in line with the prior years. They are driving unchanged for the rest of the year. The core earnings came in at 23 billion. They have a huge amount of generic competition coming through. You can see Second Quarter sales beat on the headline earnings. The guidance is broadly in line with last year. They delivered a solid Second Quarter, despite the risk on aspect. This is one of the main drugs for them, in terms of the generic competition. So, that is the state of play on novartis. Equityt seems global a markets are frozen at the prebr exit rate. We have the turkish lira in there. A bit of movement in there. The central bank will meet later after the failed coup attempt. The drop in the lira seems to be dropping the rate of Interest Rate cuts. Matt the worst performing currency over the last five days. We have new macro rules in place there. The aussidollar, again, the rba keeping their options open. 45, this is where we start to see a little pressure on the marketplace in terms of the fiscal position of the middle east. Anna lets get to the bloomberg first word news now. After a salesorter coup attempt triggered a selloff in the lira and sovereign debt the meaty expectation is for a cut. In an exclusive interview with bloomberg, the imf chief says a response by the policymakers will help. Which is the currency of turkey, went down, but not by much. There was an orderly functioning of the markets after something that was massively disorderly. Reporter donald trump at the first night of his nominating wifension had his deliver a message of unity. In a rare speech, Melania Trump said her husband is tough one he needs to be, but also kind and fair. The Prime Minister has been reelected and his cabinet has been sworn in. He reshuffled his team after this months narrow election win, declined budget repairs the top priority. 00s bull run is heading for a reality check. It will end the year down 7 , according to the bank, which is the most bearish o surveyed by bloomberg. Pistols and give way to harsher economic realities after the vote to leave the eu. Four peoplenjured on a train in southern germany by being shot to death by police. The Authorities Say the assailant was a 17yearold afghan, but a motive has not been established. Global news 24 hours a day, powered by 2600 journalists in more than 120 countries around the world. You can find more stories on the bloomberg at top. You very much. The german train attack, we are joined by Caroline Hyde in berlin. What do we know about the attack so far . Caroline we understand it was a 17yearold afghani refugee. He traveled to germany as an unaccompanied minor and was living near where this attack occurred, in the south of germany at about 9 15 local time. It was a commuter train, said to have injured some four people. But there is no motive as yet known as to what was behind this attack, which he launched on and a knife. N axe anna this came so soon after the nice attack. Undoubtedly, it will heighten concerns around terrorism in germany. Those concerns have been on the rise significantly. On july 12, there was a report put out by an insurance company, ly showing that for the first time, the number one fear among the germans is terrorism. 73 of the respondents polled said they feared an attack. This polling was done between april and may. Yet more english post the nice attack, which have been a key concern to those based in germany. There have been concerns building ever since the new year. Of there have been a number assaults. Police are blaming that on migrants coming into the country. No wonder therefore, there has been a rise in the alternative future for germany party. Manus caroline, thank you. Lets get into the market movements. We have got asian stocks off of a three month high. I love the softbank story in a love the pokemon story. Story and i love the pokemon story. You have will be surprised. We do see very good moves coming up on the nikkei, up by. 9 as the yen continues to waken. You have to remember, japan was closed yesterday when we saw that rally across the rest of asia. So, other stocks are seeing that six day rally. We have seen significant weakness coming through from china and hong kong, holding that rally and coming off of those threemonth highs. Weakness too in australia, but there has been support in new zealand come up. 7 . That is on speculation that we could see another rate cut next month, new zealand doing what it boomo reign in the housing by increasing the amount you only for a deposit to purchase property there. What a big slum coming through from softbank. What a big lum coming slump coming through from softbank. Nintendo, continuing to rise on the pokemon story. It has now overtaken sony in terms of market cap. And mcdonalds japan also getting a boost, pokemon story. That is because the happy meals toy sales have increased. Popokemon is not even in apan yet, but it is developing story. Is going toiss go find some pokemon later here in the studio. Bank is widelyl expected to slow the pace of Interest Rate cuts when it meets today. This comes after the failed coup to get a selloff in the currency and a sovereign debt. Manus we are joined from istanbul. Today we have a Central Bank Decision and they want to use this as a message. We heard this from christine muchde, which is very business as usual, despite the political instability. How can they do this . Look, they have already taken measures after the coup where they said, we are going to provide the market with the liquidity that it needs. This is a regular Rate Decision meeting. So, i think the decision, the reason why some economists might be reviewing their initial expectations that the central bank would continue the rate cut on the upper range of their interestrate band, they did it three times in the last three months, 50 basis points each time. Because of this coup, they might want to slow it down a little bit and wait and he what happens with the current the, especially after the currency slump on friday. Though they came back a little yesterday, it seems to be going down a little today. Their message is that they still might cute. It might not be 50 basis points. Toy might still go for a cut show that they are confident, but they could keep it at 25 basis points. Anna remind us about the rating story around turkey. Moodys has put turkey on review for a downgrade. Can the country hold onto any investmentgrade ratings . Right, it has two investmentgrade ratings. If moodys does decide to put turkey there, that will have an impact on Foreign Investment in turkey, which is the big question. Foreign investment has been improving for the first five months. It was negative in the first five months of last year and was positive this year. Junk downward rating to would really be there a damaging to turkeys prospects, which were looking up earlier this year. Manus riad, thank you very much. Riad hamade there, the middle manager. T the world is doing more and more with political spikes, moments of real tension. That makes Central Banks jobs so much hard or, given everything we are looking at. In terms of centralbank policy, are we going into another wave of cuts and stimulus . I think it would be unwise to do so, but i would not rule it out because of a moment, there are limited options on the table for many heavily indebted foreign government, where the fiscal room to maneuver remains constrained. Having said that, you do see a widespreadore narrative to the limits of Monetary Policy from key Monetary Policy makers as they eight knowledge as they biacknowledge that this does them no favors in the long run. Who wants to be in the crucible testing of bomnd markets . We have seen a little bit of it in canada. Do we start to see it in some of the Major Economies . Principally, the eurozone, where draghi has been going on for more than 18 months. As he has watched his favorite level of inflation plummet back to the levels before in fact, when he started the constant easing process. Anna you mentioned we have this core of people outlining the limits of Monetary Policy. One of those is mario draghi. He might be forced to do more, even if they themselves, see the limits. We have the ecb later in the week. The market did not expect any action, given the way Corporate Bond yields have headed since the Corporate Bond buying program for the ecb commends. The ecb commenced. They may have no choice, but to go lowe ror on rates. Manus the great debate is this. You have the political situation and the Central Banks. Looking at the 10 year Government Bond yields in the united states, the brexit really dampened the demand for havens. We have seen this turnaround in yield. My question is, what is driving bond yield . Is it the lack of belief in inflation returning, or is of the Global Political spikes . Simon i think it is the former, the lack of expectations that inflation is coming back to seemingly meaningful targets. Equilibrium for the Interest Rate is now mainly negative, but that is structural. Much of that is due to an aging population, due to financial in a vision that has driven down spreads. If we try to chase nominal numbers, particularly on bond yields, we have missed the seismic structural shift that has happened, and has been happening for 20 years. It has just caught up with us because the nominal figures have turned from positive to negative. Anna Morgan Stanley said we could get a 10 treasury yield by next year, even by bullish standards. That looks to be pretty bullish because they are expecting bonds to go higher if that yield comes down to 1 . They say products and policy will change that. Will we see 1 in the u. S. . Simon i dont want to dismissed manus political theory. We look at the u. S. Political election, and also you look at the requirement in the eurozone to are they going to complete the Monetary Union . Are they going to push through with the Banking Union . All the kind of elements to the story that are mired in Political Risk, because there is very little Political Support for the kind of things that are necessary. Anna Christine Lagarde at the imf saying yesterday that the eu needs to do a better job of explaining the benefits of europe. Manus that is an argument that fell on deaf ears in the brexit debate. Lets get you up to speed now with your day ahead. Anna parliament will convene for the First Time Since last months general election. Then we have ppi data from the run up to the june 23 eu referendum. Manus 30 minutes after that, it is the july germany zew survey. Then, we get the Second Quarter earnings from Goldman Sachs 30 minutes later. And the Turkish Central Bank will deliver their decision on rates. Anna up next, it is game on for the pokemon craze. Rally, the pickachu next. This is bloomberg. Manus a little bit of breaking news for you. We have secondquarter earnings. Net sales came in at 78. 9 billion krona. When they talk about the marketplace, they see european truck market as being 290,000 units, pretty much in line with what we have seen previously. It is a miss on the sales level. Some to get. 9 and the market was looking for 79. 2 billion kronas. It is a miss on the sales level. , and theion krona market was looking for something 9. 2 billion krona. On with theg transportation of heavyduty goods around the west. Some people like truck salesin the u. S. As being a realtime guidance. The Second Quarter truck intake 8 . L by in the u. S. , it fell by 29 . Anna they seem to be upping their intake of truck units in china, which could be interesting. Lets get to the Bloomberg Business flash this morning. Here is rosalind chin. Rosalind japan has seen shares jump up as they started giving figures based on pokemon figurines. Pokemon go is Still Available in japan, where the cartoon series was created. By u. S. Vestigations authorities. The company says that is cooperating with the Justice Department into the reporting of vehicle sales. The federal investigation follows similar lawsuits that challenge the Company Sales numbers. That challenged the Company Sales numbers. Added less than 1. 7 million new viewers globally, falling short of its 2 million estimate. In the u. S. , is someone hundred 60,000 new viewers in the u. S. , it saw 660,000 new viewers. SecondQuarter Sales fell to million. Thatigures are a sign the ceo is making some headway, h. Bankshares have plunged and softbank shares have plunged in tokyo. The shares dropped as much as 11. 3 heading for the biggest single they decline since 2012. A sizable fall nin the u. S. Yesterday. That is your Bloomberg Business flash. Manus thank you. Nintendos market value has pushed up over sony after pokemon go fueled a rally lasting more than a week. Anna nintendos value has jumped over 39 billion, extending a run that has seen its share price more than double. On friday, the company set a record for the most shares ever traded in japan. The french chief economist has put his phone down. He was out monster hunting. But he is now here on set. This is something that seems to be taking over the web. Somebody Walking Around the station in london, looking only at their phone with no comprehension of what is going on. It is a phenomenon. Lastumber of tweets week on pokemon go has exceeded the number of tweets on brexit. It is a phenomenon. Manus how do you tie this back to markets . Kind of boring, i know. Leave the boring parts to me. The biggest daily turnover in stock ever on the tokyo stock worthge, 476 billion yen of shares was traded. This gives you the sense of the phenomenon. I know this is a jump now, come with me. I am going to jump the river. This is technology literally inventing new demand. This is about the revolution that a lot of Central Bank Governors are struggling with. Simon and this feels like a real paradigm shift in the way that when i went back to university, i had never thing facebook. [laughter] simon it is a little bit like that movement. Something needs to download it and understand what it is all about. Parentsr and grandparents start asking about it, you know it has extended wider than the Core Technology practitioners. The extension is much wider and it happened with a very short halflife. Anna helicopter money in japan, simon . Simon you could argue it is already happening, really. Money is moving into the corporate sector. But i dont think we will use helicopter money this year. Manus up next, the Second Quarter numbers after the firm dismissed reports that they inflated their sales targets. This is bloomberg. E anna welcome back. This is countdown. In parisondon and 7 30 and berlin. Ericsson competes with the likes of nokia. They say the are starting significant actions to cut costs. Sales number is coming up at 51 point billion krona. That is a touch below the estimate. In terms of any net numbers coming through, we have cooperating income so, the operating income figure. Billion krona,e below the estimate of 4. 1 billion krona. They are taking further actions, initiating costcutting and targeting. Tomers have come off a they have come off a period of heavy investment. This is something their rivals are having to deal with. Customers are now spending a little bit less. This is a challenging revenue environment. What would they do with operating expenditure, that is a big focus for analysts. Manus the ceo will join me on the pulse. The interview is set for 10 45 u. K. Time. Actually, that will be in surveillance. Anna this was a company that was forced to reject the report from swedish media that they were inflating sales. Manus but they denied that. Lets get to the latest edition. It is daybreak. Lets take a look at some of the stories that are making the front addition today. There you go, anna. It is all about this particular country, turkey. What happens next . What we have seen overnight is moodysy has been review. Ey on will they cut rates by 50 basis points . Christine lagarde at the imf said yesterday in a bloomberg interview the actions by policymakers helped carve the Financial Markets so far. So, the central bank in turkey is very much the number one focus. Will the central bank the pressurized . Bet i will the central bank pressurized . Anna the risk rally is on pause in asia. Markets, japanese were closed yesterday. They are actually stronger, the nikkei up by 1. 3 . Compared to japan, we have a much weaker picture across the asian equities session. The s p closed at a record high. Asian stocks, fairly flat then as they stop their six day winning streak there, or at hold. What iput it on manus in the u. K. , we