countdown. i am anna edwards. manus: breaking news, let us take it off with statoil, the norwegian energy giant. the market was looking for profit of $294 million. that is considerably less, the understatement at the start of the reporting day. adjusted earnings at $913 million, that was after 1.3 billion capital expenditures cut, adjusted net loss at $28 million.the estimate was for a net of $294 million. they are holding on to their output guidance. however, they have cut down to $12 billion, the first of a feast, as it were, a breaking news. we will have the ceo, eldar saetre. anna: let us get on to another corporate breaking numbers, that is santander. the bank of course based in spain, but operates globally, they have given us a net profit in lineillion euros, with the estimate of 2.8 5 billion euros. they say they have a goal of raising dividend per share in 2016. a business that has a number of headaches, eliminating around 1400 jobs in spain just this year. low interest rate environment very topical. competition for business has been eroding margins. political turmoil in their largest market, that is the u.k., on the back of the brexit though. all of that is very topical, as is the worst recession in brazil where they also operate, and what they can do with the u.s. unit. sailing the reserve stress test. lots to talk about. on the move will be speaking to santander, u.k. time. manus: we have the airbus numbers. ,ne other line on statoil they will have a share capital increase for the issue of dividend shares. this is an interesting line coming, anna, airbus? anna: the top line and turn to the guidance really important, facing various delays, guidance has confirmed the 2016 forecast. in terms of the charges, which is going to be interesting for analysts and investors, taking a 1.4 billion euro charge for the charges against the cost of fixing faulty boxes. that not know how deep would be. but with the issue of the a350 widebody, that is the interior fitting, they could not get the interior up and running in a timely fashion. a bit of a headache for the ceo. with all of that in mind, the key concern for analysts was whether they could confirm guidance. and they have said they will do that. will that be a tough ask, given the delays they face in the first half of this year? manus: we have a little bit of tracking of stocks as well, sticking to the full-year forecast, sales dropping considerably. of course it was all about the language that many of these institutions are using, in terms of the outlook. anna: really interesting that looking at the forecast, sales dropped considerably as you say, no change, but did some fairly gloomy statement. excluding items, 1.7 billion euros, just a touch shy of the estimate of 1.7 6 billion euros. this is the world's largest chemical maker we're getting numbers from. they had agreed during the most recent number to a multibillion-dollar acquisition, that was a 3.2 billion purchase of a coating business. expanding that side of the business. really interesting about monsanto as well, because we understand they were in questions with monsanto stock, in exchange for the agrochemical business at basf. the agricultural solution business at basf profitable, but small compared to dow, dupont, syngenta. lots in the mix when it comes to basf, but one of the headlines coming through from that. news. a feast of breaking we have much more to come. of course the most thre recent line from abe, stimulus next week. let us get the first word news with tom mackenzie. tom: thank you, that is. on yen plunges and recovers abe says stenniswb will look at. the packageorting will include ¥13 trillion and low interest loans. hillary clinton has been nominated as the first woman to run for president of a major u.s. political party. and happened after bernie sanders took the microphone to ask that his formal rival be unanimously named the nominee. chair, ianders: madam move that the convention suspend the procedural rules. cast byhat all votes delegates be reflected in the official record. and i move that hillary clinton be selected as the nominee of the democratic party for president of the united states. clintonnwhile, bill paid his own to become his wife. mr. clinton: she is insatiably curious, a natural leader, the organizer, and the best darn change maker i have ever met in my entire life. tom: apple shares have jumped in extended trading, after the company lowered cost iphone gained more traction with users. forecast sales fall for third consecutive quarter, from the current period, better than most analysts estimate or the aussie dollar spikes after australia gained more left water, allowing the rda to make any further interest rate cut. glenn stevens which is to act next week, now fallen to 40%. u.k.n billionaire says the must explore historic relationships, decoupling from the european union. he spoke to bloomberg from his office near buckingham palace. >> the u.k. has the best relations with the commonwealth countries. will am sure that they negotiate and try to work more on the commonwealth countries, where they have a hedge on the european union, as well as india , where they held long historical trade relationships. day global news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. you can find more on the bloomberg top . i am tom mackenzie. this is bloomberg. anna: thanks very much, tom. let us talk manus about what is going on in the currency in the yen, breaking news from shinzo abe. manus: he says this the is maybe more than the ¥28 trillion. we saw reports of ¥20 trillion, ¥30 trillion. this morning we saw this dropping on the back. anna: on reports that we might get an update today. manus: here we go, just trying to decide where he are at the moment. the top line is 105.66. if they disappoint in terms of the stimulus, is now over to kuroda, and what he will deliver in terms of the triptych. anna: now we have japan just this week, perhaps into next week as well. we will keep monitoring this. david ingles is looking at this as well. he joins us with a look at the asian market session. plenty of news out of japan today, david. david: yes, plenty of news out of japan, across asia.but again, let me get started with the yen. it has been thrown all over the place, as you pointed out. reacting two conflicting reports on the size and timing of the stimulus reports. coming-out of the kyoto news agency, ¥28 trillion is the size of the spending package. just put this into context, this is about 104.63, all the way up to about 106.54. and again we are pushing towards the upper end of this trading range at the moment, of course we do get more details will bring that to you. that being said, have a look at the equity markets in japan. yen.usly, the mercy at the nikkei 225 up, as much as 2.3 a moment ago. and i just showed you dollar-yen, 105.67. have a look at the broader picture. the asian pacific, other stocks i want to talk about, have a look at shanghai. 2.5% down. small caps getting close to being sold off. index overall, everything together, a little bit higher. the foreign markets are concerned, ultimate stronger in with the exception of the japanese currency being sold off of the moment on the back of this news. it is a developing story. a lot of news coming out of your. anna, manus? manus: all about the details. the devil will be in the details. yen has a volatile morning. weakening again, all on the back of the report you just said, the japanese prime minister shinzo abe will indeed deliver 28 trillion worth of stimulus. this is we understand from the news agency. ianz says the federal reserve policymakers must be keeping rates so low. anna: and many to be aware of the possibility of unintended consequences he says, he spoke to bloomberg television ahead of the fmoc rate decision, due this evening. >> the less effective central-bank stimulus is. it is ironic, but this is a recognition that it is not spreading within the fed and beyond, that the u.s. is having as much structural problems as it is cyclical problems. which means of the answer to high growth financial stability is not in the hands of the fed, but in the hands of the other policymakers. and if they continue with interest rate being too low, and risks causing collateral damage and unintended consequences. manus: joining us now is lothar mentel, from tatton. the volatility is definitely in the yen, the gap between actual and expected is the widest since 2008. these news moments just keep popping. ¥28 trillion of stimulus, from what we understand, is this the kind of shock and awe you to see on friday? lothar: i think what we are seeing is a fiscal policy is not really what the markets are looking for. it was monetary for a long time, is this the breaking of a new era where fiscal austerity is dead, fiscal austerity coming back on? i interviewed that volatility because the markets are very much geared to the perspective. anna: talking about ¥20 trillion, $250 billion, something like that. the japanese economy, is that going to be the size of the arrow that is needed to really make a difference for japan? lothar: it seems big. it should probably do quite a bit for the japanese economy. whether it is big enough, we will find out. the markets seem to be little bit undecided where that is or is not. manus: tell this. the that reset everybody else? let us say they take the ¥28 trillion, maybe some forward guidance, quantitative easing on friday for the bank of japan, the that reset for everybody else? lothar: not necessarily. japan has always lit the way. but recently the talk, if you faren to the politicians, more towards fiscal stiglitz going hand in hand the monetary stimulus, because as we just heard from a homage, monetary stiglitz is running out of potential. therefore, it is fiscal that is to come in, particularly when politicians are starting to get worried about election outcomes that are a bit unexpected. anna: and consequences. what about the currency markets, if we are moving towards a fiscal stimulus environment. we got used to the idea that monetary stimulus is a way of weakening the currency, that was the intention, whether it worked in japan, that is perhaps less clear. but we have seen this talk of big fiscal stimulus in japan, weakening the currency, is that what should be doing? work as through that for us. i said, are wes about to extremes a paradigm shift? because if we are going for fiscal stimulus, alongside monetary, that would reintroduce inflation and inflationary perspective for us. and that can have very different consequences for currency. and it's so, yeah, i am a little bit surprised by the impact, but maybe that is just after 25-30 years of deflationary experience. in japan, markets do not believe they will get back to inflationary environment. manus: i will interrupt you both for the moment. a little bit of breaking news coming through on two different notes. let us take off with deutsche bank, the bigger at the moment. net income at 18 million euros. the estimate was for a loss of 22 million. that is the red headline on deutsche bank. second-quarter revenue comes at 7.4 billion. a heck of a job to do in terms of convincing the shareholder base he has a turnaround plan that will work. second one revenue, looking at 7.8 billion. litigation costs, 120 million euros. the estimate out was for 732. upbeat.me is definitely we were looking at a loss, 18 million delivered. litigation costs, i can tell you dropped precipitously. the market looking for a number that was higher at 732. in terms of restructuring costs, 7 million, lower than the estimate of 312 million. currency, that is going to be the critical part of these numbers. we are looking at 1.9 5 billion revenue from the global market business. pretax profit 28 million. . a better-than-expected number, litigation is falling. that is the top line for deutsche bank. on the other side, we have air france klm, a host of warnings. air france seeing downward pressure in terms of revenues at the moment. second-quarter revenues coming in at 6.2 billion, a little bit less than the market was looking for. 6.6 5 billion. they reiterate that they are sticking with that special concern about the destination of france. of course those tragic images we have seen in nice 10 days ago. they are warning on the situation domestically in france, that that is going to be the slump. the actual terror streak is weighing across the entire industry. and air france klm says the market is deteriorating. shares will fall, as they are seeing. the hotspots in nice on the riviera. it is a beat for john prior at deutsche bank. he says he is satisfied with the progress the company is making. it is a weak environment, and they may need restructuring. terror hits at the heart. anna: they're talking about how the state of the top tourist market is under threat. that really taking it very seriously. we are going to be speaking to the cfo of air france klm. going to beb joining the program at 7:30 u.k. time. manus: close to your day had set up. we get consumer confidence figures out of germany. 45 minutes later it is down to france. and at 9:30, the first reading of u.k. gdp for the second quarter. that is released. get: at 1:30 u.k. time, we goods data out of the u.s. and we get the fomc rate decision. manus: ok, let's get the bloomberg business flash. tom mackenzie standing by. biggestus, the world's luxury good maker has reported first-half profits in line with estimates, after stronger demand offset lower tourism growth. recurring operations with little change at 2.9 6 billion euros. analysts expected 2.92 euros. a u.s. judge has given the vw plan toor the the get off the road.and putting a possible fix , costing the company about $15 billion. is given full approval, the plan would clear the biggest obstacle to the scandal recovery. they will revise the way they reported vehicle sales, investigated by u.s. authorities for inflating figures. the carmaker's new method will no longer include a reserve, figure and what accounts for returned cars. monthly sales gained what have ended in september 2013, rather than the 75 consecutive month of increases the reported in june.and that is your bloomberg business flash. anna, manus? manus: apple gained in extended trading after reporting third-quarter revenue and profits that beat analysts estimates. sales of the iphone se were higher than expected, as consumers embrace the low-cost model. manus: twitter fell after hours after the third-quarter revenue fell well short of analyst estimates. david joins us now with more detail. rate have you in the program. let us start with apple. could the cheaper model then revise slumping sales for the device? this is a model that was not embraced by analysts.they thought it fell between two stool, when first revealed. david: absolutely. especially markets like china. a lot of analysts believe the chinese market is addicted to larger phones, rather than what the se represents. demand wasying that well in advance of supply, up until just this quarter. suppose the real issue here is about whether we are k apple.ea talk about twitter. they essentially disappointed. this is all down to video, the promises they made. david: absolutely. when you look at twitter, the reason why a lot of investors are backing, the ability to monetize user base. and the video that is not ready, it is very disappointing to a lot of investors. to come out and say that after several quarters of promising video revenue, the technology just is not there, frankly my not be good enough. on the video front, there are so many rivals such as snapchat and facebook, taking up the platform quite successful. shareholders have other options that they want to go summer else. anna: david thank you very much. a quick look at what is going on at apple and at twitter. lothar mentel still with us in the studio. dell into the tech sector. we have been seeing contrasting performances on the back of earnings. apple surging. twitter collapsing a little. what do you make of the tech sector, where are the hotspots you want to get exposure to? lothar: i think tech is very exciting, but very stock specific. overall, because there is a lot of cash being burned without much return a quite a few areas. what excites us is where technology existing, combining toward something new. i think that is really where we will see things in the future. pokemon go is an example of that. my kid seems to be spending all the time on that recently. they even bought new batteries to power their phones for longer. but if that is more the gaming area, and i'm not sure how much revenue will be in there i think theat sales drive. anna: the next big thing to invest in tech is a software, and what you do with a hardware, rather than the hardware itself such as apple. lothar: it is the convergence, the combination of different things into something new. you know, so if we think of the self-driving cars, at dustin byfuglien things already exist. but you need very clever software. and there are a few question accident. the tesla maybe they were little bit too early, where we would want to have something that is little bit more refined and certainly safer. manus: when you look at apple, and what we have here is the revenue chart, you sort of have to ask your self, the iphone is nearly 60% of the revenue, everybody asks every quarter, are we at peak apple? the new iphone iteration, when you look at this, is it at the peak? lothar: well, you wonder, don't you? yes, i struggle to see where there is going to be more upside, compared to the past. peak. it feels like i still love them for what they do. boy, they are so big. how can you grow meaningful? anna: india, get that mixture right, that can be an added boost. that seems to be a focus now. china -- manus: they're trying to find china. everybody in china, the real move in china, is a cheaper phone. let us talk little bit about microsoft. you quite like it. what we have there of course is a story all about the cloud. to what extent, we are all grabbing to understand what the cloud means in terms of revenue, some of them have them right. seeming to turn the river on it, microsoft. lothar: i think the really important thing with them is that they have seemed almost reinvent himself. and i can tell you as a business that is not very old, if the technology in the cloud technology did help us in our start up phase, not have to spend that much in hardware, because we were able to use cloud services, crms services, a lot of services that work hand-in-hand, and allows businesses to get growing pretty quickly. if and when they choose a platform like that. anna: you like the driverless cars. how do you get invested in that, other than buying tesla? is that the only way? lothar: i think if you do a bit of research, you might find out that intel is very heavily involved in that. a bit of research in that area will probably help to identify which companies are actually driving forward in that area. manus: in terms of europeans, the supply into apple is always of the we look at, as well. european versus u.s. tech, how do you look at it? lothar: well, i think european tech is perhaps more interesting on the software side. we know that london and berlin are very good, very strong at software development. in the u.s., it is sometimes more than new ideas. the new ideas seem to be coming out of the u.s. and the implication, the actual execution of the really clever software seems to come from europe. anna: lothar, good to get your thoughts. lothar mentel, tatton investment management. up next on the program? manus: what is things we do well, exclusive conversation with ceo valeo. he joins us. we are going to be live to paris. some pretty major lines coming through from deutsche bank. 2016 will be the peak restructuring year for the bank. those are the words of the ceo. futures in london indicated up 1/10 of 1%. this is bloomberg. ♪ e anna: welcome back. this is countdown. you are looking at a live shot of the tokyo imperial palace. the time in london is 6:30 in the morning. 05.53. a move of 8/10 of 1%. weaker on the yen, stronger, all over the place. given the numbers. and the connection with abe, when the stimulus package will come and how big. we have heard a range of corporate. manus: this is the chemical company, going after monsanto. billion, the estimate was 2.96. this is excluding certain items, 3.05 billion. a comfortable beat.they actually raised the forecast for the year. beat.e top line is the revenue coming in at 11.8 billion. the market was looking at 12.1. a bit of a mess on revenue. billion.e 1.38 they just raised four-month average do a share, that was last week. so a nice little bit of a beat, those your numbers. let us talk about daybreak. now available on your bloomberg, on your mobile. your ego. anna: that is have a look at some of the top stories. apple on the front. manus: i love that photograph anna: nice illustration of this year price reaction, i guess, because the stock of apple jumped on optimism weakening on the iphone.analysts really careful to write off the se. we have a correspondent on tech earlier on, suggesting that it was a tale on two stools. it was not going to be glitzy enough on the chinese market, or not going to appeal on the price low enough for the rest of the emerging markets. so people were not quite sure. and yet, something that underpinned the last quarterly results, the company delivered revenue and profits that were better than estimates. now, a lot of estimates on what could be the iphone 7 in the fourth quarter. manus: they spent $230 million on that. keep an eye on dollar-yen, we in reports that stimulus japan could be as much as ¥27 trillion. we don't have a report, but it could be ¥28 trillion. we will see and hear look at more about that from abe next week. we are seeing dollar-yen, there down 131% over the past two days. what will abe deliver? will he said the vanguard for the rest of the world?definitely on that roller coaster. anna: somehow suggesting this is part of his global paradigm shift we are seeing towards fiscal policy. we have earning reports, plenty, deutsche bank being one of those. they might need a more ambitious restructuring. we are hearing from the ceo at deutsche bank, that they deliver a drop. analysts have not been expecting much of a profit. and it was not enormous. net income down 10%. brexit fallout will extend past 2018. manus: the thing there is litigation cost in this quarter, still continuing to be a key challenge. he goes on to say this is what to be a peak restructuring year. but profits in q2 literally wiped out. this man has a big job to do, to convince the market he does have a strategy in mind to actually turned deutsche bank around. anna: let us get more on our top story, that is the move, coming down like a yo-yo on the yen. abe expected to announce fresh fiscal stimulus, and then weaker again. caroline hyde joins us with the details. good morning. caroline: good morning. the ¥27 trillion question, will we see this fiscal stimulus coming as soon as today? will it be to the tune of ¥27 a look at the is yo-yo you were just talking about. on the bloomberg, you can see were actually tracing a significant amount of the plunge we saw earlier, at one point it really just raised all the strengthening from yesterday that we see in the middle of the chart. then, the spiked into the weakening. certainly retracing itself, push back on the 50-year bond report being denied. 80% of analysts, and and analysts, see the boj that they will add to stimulus as soon as the end of this week. i want to put this into perspective for you. because of the moment, we are seeing volatility crescendoing later this week. we have at this moment expectations of swings and dollar-yen on the bloomberg, the swings of the dollar-yen rate over a one-week period, have a look, surging the most since 1995. last friday, the difference between implied in realized volatility reach the widest since the 2008 financial crisis. look how much expectation, and last week, a focus on china. because we see a tumbling in chinese stock markets. the report that wealth management products could be curbed back. considering tightening on the nation's get this, $3.6 trillion market. down go the shares for small caps in china. manus: caroline, thank you very much. eop french automotive val has compared better than expected. despite the brexit vote. anna: joining us now exclusively from paris is the company's ceo jacqyues. thanks for coming to talk to us on bloomberg. we see the european car market expanding for 34 consecutive months. that must be a trend you're benefiting from. how long can it continue? jacques: i think that is the biggest uncertainty, because of the brexit uncertainty. when we look at it, we are outperforming the market so much that we are probably less exposed to a downturn of the european market. but we see a very difficult transition data now. manus: the second word out of your mouth was brexit, jacques. let us continue with that train. what did you see in the run-up in brexit, in terms of customer action, and is there any demonstrable shift after that vote? jacques: like i say, is very difficult to anticipate. when we look at the forecast of next week, from our customers, we see absolute enough negative trend. but probably will have to wait until september, october what will be the outlook. it is too early to say. but like i said, we are outperforming the market somewhat. the negative trend will not be something, but we are out in front of the european market, last semester, just last year. so, we will have a great growth, despite the brexit in the second half of this year in europe, and in other regions. anna: you have been doing some m ste automotive, are you looking to do more deals? if so, what kind of deals are you looking for? jacques: we are very much focused on organic growth, profit yesterday, we have known we had a 20% increase. and that will be focusing on organic growth and innovation. 12.8f that 20% growth, billion, we have more than 45% innovation. so we're focused of course on organic growth, but organic growth does not mean we don't do mergers and acquisition. we have been a few in the last few months. three of them in germany, very different goal-oriented acquisitions.but once again , we remain very focused on organic growth. and we hope it will help us to increase our know-how in terms of technology. manus: we are always trying to get a sense of how the american consumer is doing, and what is going on there? talk to me about america. have we hit peak sales in autos in america? what trends you tell us to focus on? jacques: i think we had the last few years quite a nice growth of the american market, going back a few years ago, at the level which is higher than the pre-crisis, i think next year we should have a growth in the american market that will be aligned with organic growth. in a very long trend, in terms of another forecast being in different markets, in line with the other markets. it would not be a surprise america that we see that happening in the months and years to come. anna: can you tell us a little bit about how you see the development of autonomous cars. many people focusing on what has been happening with the most recent tesla crash and how that might impact the development of the cars, how do you see the time horizon shaping up for this technology? jacques: we are more and more customers coming with announcements of having autonomous cars, fully autonomous cars, in 2012. we have announcements of different german-american companies, and i think it will come. i think what has happened in the u.s., and you probably mentioned thatesla in north america, is something that we have to study very much in detail. autonomous cars need to give confidence to the driver, that it is safer to give the responsibility of driving the car to a computer, than it is when you're driving the car yourself. so, we have to look very much in detail at what happens. we have to improve the sensors. we will work with the sensors around the car, what we call the eyes and years of the car, that helps the computer to make the right decision at the right time. so, i am pretty sure the trend is there. but until we find all the ways to make the economist car safer, than a car driven by you or me, that is a trend. manus:manus: and the technology is evolving extreme the fast. i needed many eyes and ears in the car, as is humanly possible, helping with london road rate. talk to me about china. considerable growth. will continue? give us your perspective on china? jacques: what has been extraordinary in china over the last 10 years is the steady growth, yearly steady growth. except the last year third-quarter, overcrowding the fourth quarter. i think if we take the assumption, last year when we made 2020 forecast in london of march of last year, we are taking the bucket of growth around 5%. 5% a year. and i think that trend, having a growth of 5% the year, for a market that is the biggest market, i think is quite interesting growth over the years to come. anna: thank you very much for joining us. valeo., the ceo of manus: egypt is nearing the final stages of talks with the imf on a three-year support program. you. very good day to egypt has been down this road twice before. tell me what is different this time? how a short can egypt be? -- assured can egypt be? desi: this could be the case of third time lucky, because egypt has started to implement some of the subsidies and some of the restrictions that will be attacked to the imf low. they have removed some of the fuel subsidies, already talking about introducing value added tax, vat, the goods and services. would be a condition of the imf would put on some of this loan. egypt has come across lots of political barriers, when it comes to in limiting loans and negotiating with the imf. but bloomberg couple of months ago announced a story that egypt was in talks with the imf. but the most important thing is that investors are happy, saying this would be a positive step for egypt, a step that egypt needs to encourage investors and bilateral arrangements around the region. but most importantly, investors are still also saying it is a matter of yes, third time lucky. or we will believe it when we see it. investors are standing by for this announcement. if it does come, the imf delegate will be in cairo in a few days. manus? manus: desley, thank you very much. on the very latest deals. anna: the democrats have formally nominated hillary clinton for resident, making her the first major party nominee. in a further call for unity vermont senator, bernie sanders took the stage of the democratic national convention to ask for his former rival to be unanimously backed as the candidate in november' election. ssenator sanders: madam chair, i move that the convention suspend the procedural rules. i move that all votes, all votes cast by delegates, be reflected in the official record. and i move that hillary clinton be selected as the nominee of the democratic party for president of the united states. manus: bernie getting behind hillary. kevin is at the democratic national convention in philadelphia. kevin, we also heard from bill clinton tonight. how did his speech go? kevin: well, former president bill clinton had a tall order, trying to continue to unify the democratic party. he deliberately brought a personal pitch, talking about how he met hillary clinton, from when he was governor of arkansas all the way through him being president. and of course, her time as senator, first lady, secretary of state kerry he noted her role reform, ag policy largely controversial policy program here in the united states. he also talked about her work on women's health issues and children's issues. he tried to present her as a change maker. let us take a listen. mr. clinton: she is insatiably curious, a natural leader, a good organizer, and she is the best darn change maker i have met in my entire life. kevin: so, clearly, this was not bill clinton trying to talk to the progressive base and senator sanders reporters. many of them met with the status the democratic party, but he was trying to make a pitch to independent swing voters. anna: try to make a pitch to the independent voters, maker the change not the status quo candidate. hillary clinton made a surprise and the celebrities on the stage, how did that play out? kevin: meryl streep was there. grammy award-winning singer alicia keys. they played a video of all the different pictures of the u.s. and then they showed her speaking live via video screen with some supporters in new york. and a really played up this element of history. she is of course the first female to ever be a major political party's nominee in the u.s. manus: kevin, there you go. history is made. a little bit of showbiz. the democratic national convention in philadelphia. anna: up next on the program, drilling down into statoil. on thek with eldar program that. just after 7 a.m., we found out if they have it in the bag this quarter. the ceo joins us from paris. manus: finally, we speak to the ceo about the impact of the eu vote on the result. that is at 7:15 a.m. u.k. this is bloomberg. ♪ anna: welcome back. tokyo's imperial college. a lot of news coming out of japan today. when exactly will we hear about abe, will of next week with regards to fiscal stimulus, will it be ¥28 trillion? the numbers in the mix at the moment. 105.42 on dollars-yen. let us to the bloomberg is the slack. here's tom mackenzie. tom: thanks, anna. deutsche bank says second-quarter profit was almost wiped out as trading revenue cuts fell to 80 million euros, a year earlier. analysts have forecasted a loss of 22 million euros. it is upbeat for santander, reporting second-quarter net income of 1.2 8 billion euros, above estimates of 1.2 2 billion euros. , prophets did fall by 60% in the second quarter compared to a year ago. but it is down to a one-time gain, not being repeated. the bank also added a bit of aims to raise dividends per share this year. and we will speak to the ceo of santander at 8:10 u.k. time. airbus reports a 4% drop in profits, as the newest passenger jet suffer delivery delays. and the transport airplanes to a one billion euro hit across the faulty boxes. markets are deteriorating, as shares fall and having an impact on tourism. second-quarter revenue fell to 6.2 2 billion euros, missing estimates. analysts had forecast at 6.5 6 billion euros. the world's biggest luxury goods maker has reported first-half profit in line with analysts estimates. that is after stronger demand for champagne and cognac with lower tourism to france. this comes with little change to 2.9 6 billion euros. analysts expected 2.9 2 billion euros. that is your bloomberg business flash. anna? manus: tom mackenzie, thank you. firstl has posted the adjusted loss, norway's said it -- eldar joins us on the phone from oslo. thank you so much for joining anna and myself. the first recorded adjusted loss. and yet, you are still maintaining the 22 sent dividend. my question to you is very simple. . will you borrow to maintain that dividend, given that this is your first loss? is the $.22 safe? eldar: we are very confident as a company. we have 31%, very much in line with what was indicated previously, given that the oil price was around $40. we are very confident we are going to maintain the dividend level, and also introduce a program. quarter, this will produce -- anna: good morning to you, eldar. your greatest they said you were comfortable with breaching a 30% threshold on debt level. you mentioned that you reach that in this most recent set of the results. are you reading that debt down, or are you quite happy to see where it will develop? i think firstw, of all i would like to highlight, we are impacted by this quarter. that is obvious. that impact is very much in line with what we have across the industry, across capital markets. underlying, we see strong improvements, higher performance, high production growth, year on year. and also on track on our improvement program. we have lowered capital prices from 30 billion to 12 billion, reducing waste, expenditure forecast and analysts estimates. canof the patterns that we reach directly, the projections that we see in developments, all in line with what we are having on a strong balance sheet. we have a lot of fun stability in the imf program, and what we can deliver on the breakeven thats, and the cash flows we had indicated earlier. anna: could 31% go higher than? eldar: that can go higher. and it will go higher. going forward, we will keep that increasing. very comfortable with the debt ratio in the 30's, and obviously, it also means we are very comfortable about the accessibility we have in financial management. a lot of possibility, very aware of that, and our ability to use that to that extent. manus: eldar you sold assets on shore in america, that is the focus for you. is that going to be more domestic versus international? give us some sense of the strategy? mainlyyou know, that is a no region and oil gas -- norwegian oil and gas company. you know, we have been producing 40% outside of norway.and we will continue our international strategy, including our efforts on the offshore in the u.s. the main focus on the offshore right now is to improve the quality of our business. and get on track with that, as far as that improvement program. does just briefly, eldar, the oil price get back up to 50 or $60? eldar: eventually, i'm very confident that it will. but there is a lot of uncertainty, a lot of volatility. and -- anna: a lot of uncertainty. eldar, thank you for joining us. sorry, we are out of time. statoil ceo. ♪ manus: the yen weekends and bounces on conflicting reports on when shinzo abe will pull the trigger. as the federal reserve repairs for its latest rate decision, the hike debate intensifies. hillary makes history. clinton is confirmed as the first woman to run as the presidential candidate or a major u.s. political party. almost total wipeout, the .eutsche bank profit tumbles trading revenue slumps and money is set aside for job cuts. ♪ manus: you are welcome to "countdown." i am manus cranny. anna: i am anna edwards. we are waiting for a number of earnings to cross the bloomberg. waiting for arm in the technology space. lots of data. we have numbers out of japan. manus: it was a wake-up for the profitability at deutsche bank restructuring. first-quarter net income, ¥24.6 billion, down from ¥24.8 billion in just one year ago. we have the itv results crossing the bloomberg. this is the first half numbers, 425 -- four to 25 million pounds. -- 425 million pounds. relative beat on the first-half pretax profit on earnings level, that comes in at 438 million pounds. adjusted earnings up 8.5. what we want to see is any indication in terms of the outlook. that is where the real focus is going to be, because the worry is exit may impact the recession here. in britain.sk in anna: reporting first-half .evenues of 268 million pounds that was against an estimate of 276 million, shot in terms of that revenue. pence. come in at 3.3 367.6, the first half interim dividend, 3.78 pence. various numbers come through from arm, but the big story, cambridge base chit designer is on the table has been received my arm from the bank over in japan. increasing interest in some of the uk's ftse 100 listed companies and arm is no exception. this is a bit of a hot potato politically. u.k. government confirming philip hammond, the chancellor, very hard about the future autonomy of the company. we will be looking for an economist on that to make that commitment to the u.k., what that is going to look like. manus: a bit of a forward-looking statement on the itv numbers. looking forward to the full-year. expected to deliver double-digit revenue. the acquisitions continue on that front. switching our attentions -- our intention -- for the first half adjusted pretax profit, 266 point million pounds. this is free brexit, first-half revenue up 9% and an earnings per share which is up as well, 6.6%. these results took us through to the third of july. we delivered strong operational -- and continued growth and profitability, building over 6000 homes in the first half of 16. the month of the referendum, current trading remains in line with normal seasons -- customer interest continues to behind with a good level of visitors to both development and to their website. they are monitoring those metrics carefully. we will have the opportunity to , the ceo ofelf taylor wimpey. what are you doing in the face of an uncertain future in the housing market? anna: saying of statement that brexit has not had "a meaningful effect on the market." we will explode at. taylor wimpey may have concerns around staffing. a lot to talk to him about. let's have a look of the features. expected to be higher. manus: -- manus: up by third of 1%. the big driver is a stimulus. yes, you've got the federal reserve. the most read stories on bloomberg and the past eight hours are all about the yen, in terms of the expected stimulus. a quarter of its million -- a quarter of a chilly in -- a quarter of a trillion. that is what the market is really focused on in terms of what happens next from japan. you've got u.s. futures also taking higher on friday -- taking higher on friday. anna: let's get to bloomberg business flash with tom mackenzie. tom: yen has had a volatile morning. the details of japanese prime minister's stimulus package. the currency stumbles against all 31 major peers. citing unidentified person -- the package will include ¥13 saysion while news agency the stimulus will be more than the children yen. hillary clinton has been nominated as the first woman to run as the presidential candidate for a major u.s. political party. it happened after bernie sanders took the mic for his dish he named the parties number -- named the place nominee. >> madam chair, i move that the convention will suspend the procedural rules. i move that all votes cast by delegates be reflected in the initial record and i move that hillary clinton be selected as the nominee of the democratic party for president of the united states. tom: meanwhile bill clinton paid his own tribute to his wife. >> she is insatiably curious, she is a natural leader and a good organizer. she's the best darn change maker that i have ever met. tom: apple shares have jumped in extended trading and that is after the company's -- iphone see gain more traction. the tech giant forecast sales would fall for the third circuit -- the third consecutive quarter the 47.5 billion range was better than most analysts expected. the aussie dialer spiked after australia consumed does consumer prices gained. -- consumer prices gained. choose toability will act next week has fallen from 64% to 48%. indian billionaire says the u.k. recess -- the ship with the commonwealth as it begins the process of decoupling from the european union. he spoke to bloomberg from his office near buckingham policy in london -- buckingham palace in london. >> with the, countries, 53 countries. i am sure they will negotiate and to try to work more on the commonwealth countries, where they have an egg on the european union, as well as india whether they have long historical and trade relations. tom: global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. you can find more stores on the bloomberg at top . i am tom mackenzie. this is bloomberg. manus: tom, thank you very much. let's get more detail on the japanese news david ingles is standing by. yen is what i call mr. b. david: that is whipping around equities in japan. eight minutes past 2:00 p.m. in hong kong. 3:00 p.m. over and japan -- over in japan. have a look at the today chart of the yen. to enter 40 points down. 240 points down. 219 points up. we heard from tom that some of the details here are perhaps on with the stimulus might look like. where waiting on the action -- we are waiting on the actual timing. what part of that is incremental spending and how much will be frontloaded? a lot of things in the mix as we mentioned earlier. have a look at the dollar yen. two full yen swings. 104.63. not only that, have a look at where we are for a japanese bond yields, record low on the 10 year. five-year. wickedly are -- record low on the two-year. where are we now? 36 and have a look at the 10 year as we are pushing toward -30 on the japanese 10 year bond. 29 issue level. record low yields good across asia, this is your picture. japan is pulling its weight lifting the benchmark. the selloff we're seeing across the chinese markets. thatis a local report triggers concerns that regulators may be looking to limit the flow of equity investments from some of these wells this wealth management -- wealth management companies. the small-cap index down close to 5% at the moment. manus. anna: david, thank you very much. don't worry. we are here to confuse. thank you very much, david ingles. -- wipedlt out and overhauled charges. manus: let's bring in our finance reporter, michael moore. they keep coming down. a few lines coming from john cryan. he says that the sale of bank is now possible. this after the operation of separating the business -- they may well delay. he sent a letter to the staff. they will close 30 new branches in 2016-2017. he says a wipeout of profits and what do you make? michael: it has continued to cut jobs, cost a cost the board. their costs are still high -- cut jobs, cut costs across the board. their costs are still high. we are seeing from of european u.s. marketch is versus european. budget is down 20%. manus: costing is the top line. deutsche bank is 91%, up from 85% in a year ago. anna: the trading story that is positive as the u.s. we don't know if that is a u.s., european thing. we'll get more reports this week, don't we? in terms of restructuring, john cryan saying or might be a need for my desk more ambitious timing. is that something that investors are looking for for them to look desk for them to move quickly back of -- for them to move quickly? michael: the leverage ratio stayed the same this quarter. investors are hoping for a better capital story. but just been delayed in selling a stake in the chinese bank. it has been delayed in selling postbank. it is not the best market to be selling assets and businesses right now. john cryan talked about dreaming of a white knight to come in and take postbank from them. we will see how quickly they can move on that and what kind of price they get to get a capital boost. anna: michael, thank you very much. later this morning, will be speaking to metro bank, vernon hill. you can see that here at 10 past 8:00. have -- atr that we half past 8:00. anna: caroline and i will look forward to speaking to him later. cash flow has risen in his first half and the company has increased its full-year forecast. laurent morel joins us from exclusion interview -- exclusive interview from paris. it seems to be a lot of uncertainty out there at the moment in terms of the security situation in europe. the strength of the euro is -- the eurozone recovery. how certain can you be of these new targets -- of these new targets? laurent: security for our tenants and customers is the top priority. we work very closely with authorities to make sure we enforce the best possible solutions to maximize security. having said that, we have seen an effect of security in france. it is only 33% of our business. where sold opposition in italy. forecast -- wean can see that the sales growth we have seen in first half has many changes to continue for the rest of the year. manus: can you give us a sense of the additional costs that may have to bear balance sheet in dealing with terrorism, these additional security measures that you will now be forced to make? additionalose methods are not so intensive, it is more of a question of methodology. organizing security forces around -- as you may know, those security charges are welcomed by the tenants and supported by them. anna: is working under a state of emergency in france change the business? are we talking about costs as you suggested that are substantial? not -- it is more a question of attitude and the way we organize ourselves. it is not a huge additional cost on our business. manus: let's talk about brexit. i am fascinated to know, everybody's telling me that commercial property is now cracking value in the united kingdom. the drop in sterling, is this a country that you would consider -- they do consider billion acquisition? what extent you to look over the books? -- would it tempt you to look over the books? -- we have exceptional positions in many large cities in europe. we have been successful in continuing to grow. manus: i know but i want to talk to you about the pound and the u.k. i am try to get an insight from a ceo on how you look at a drop in sterling and the u.k. post-brexit. -- again when i look at my business and the way to maximize shareholders, we have the best opportunities in the country where we are in a leading position. in a limited time, the sterling may have fallen, that is not a reason in terms of strategy. anna: what about what you are seeing in turkey. givew that is not a big your business but i understand you have had operations in that country. how difficult is -- how difficult has that been? laurent: the recent sentiments have not changed -- the recent incidents have not changed the business. it has not changed the business there. growth in our see sales. the only issue we have in this country is the currency issue, where -- this is what we know. no major change for the business. manus: if you had your choice over the next year, where do you want to see an opportunity expand, is it spain? is at east in europe the best value propositions for you -- is it east -- is it eastern europe? where is the best value propositions for you? our bestand we believe opportunities lie in the largest -- where we are last year we made to profitable acquisitions. one of madrid, one and all slow. -- one in oslo. i think will stick to our policy which is to grow where we are stronger -- strong already. we have the right teams and connections to build those industries in those places. in our industry, being successful where you're already strong is the best way to grow. anna: the wrong, thank you so much for joining us -- laura -- live from paris. manus: up next, we speak to the ceo of taylor wimpey about the impact of the eu vote on the business. this is bloomberg. ♪ anna: welcome back. 7:22 in london. the pound against the dollar, 1.30. let's get to david ingles. david: thanks caroline, let's talk about deutsche bank. the second quarter profits was almost wiped out. slumped in money and money was set aside for the job cuts. income fell 18.18 from 796 a year back good analysts still forecasting a loss of 22 million euros. europe's biggest bank has reported second quarter net income of 1.2 8 billion euros. profits that fall 50% in the second quarter compared to a year ago but the group says this was down to a one-time gain not being repeated. these bank -- the bank ames to will -- atgarcia 8:00 a.m. u.k. time. airbus reporting a drop in reported profits as you -- as to u.s. passenger jets -- took eight one billion euro hit -- that isfixing your bloomberg business flash. anna, manus. manus: david, thank you very much. a feast of earnings the morning. taylor wimpey is the first builder that has said they have had no meaningful effect for them on the numbers. completions are up over six pounds. selling prices -- that rose by 73%. the question is anybody that have spoken to in the past four weeks either in the marketplace or buying a property, everybody is prepared for 10% bed below in the asking price. is that feeding through in some of these numbers? >> it will be interesting to see what this does the land prices and we are joined by the ceo of taylor wimpey. pete redfern joins us from the london stock exchange. you seem to be talking quite positively and say you are encouraged by the stability of the market. how bad could it get the brexit vote? pete: a month-long, we are positively encouraged. with seen strong credit -- strong trading could given the concerns we had on the 20 for the june about the potential risks, we have not seen those materialize. sales rates have been slightly below a very strong comparative last year but well ahead of a normal 4014. manus: pete, one thing which we want to try get a feel for his what more do you feel you're going to have to do? if you do see softness come through the numbers, are you prepared to up the incentives that you might offer two new homebuyers to get out and get ahead of the pack. pete: the incentives have not changed over that forward pitch -- four-week period. partial orders -- in that environment, i don't think we will. what you be very careful of and hearing some of your preamble, there is a very london centric view of this which does not reflect what we see across the whole of our business. the perspective on prices is not the same. including in london, you can take a slightly distorted view of what people are actually expecting to happen. anna: where does that leave us on land sales? trying not to be too london centric. are we going to see land more cheaply. where will that be? pete: on the environment we are seeing on the housing side -- we are not saying we are going to see the whole impact on the referendum results will have. longer term may be some impacts on the market but at the moment what we are not seeing is a calamitous result that people predicted. in that environment, we would not expect material distressed land sales in the same way how to incentivize -- manus: i am go to step out of my bubble. we are hearing from the expectations for a rate cut from the bank of england, a quarter of a percent. pete, does that make any difference to you? does it should the dial -- does it shift the dial in any way? pete: i doesn't think it shifts the dial. there is risk that if you make a rate cut, that means there is a problem you need to solve. it is a risk as well as an upside. savings levels can impact on banks. i don't see it as a one-way street. what it is is send a signal to markets which is important. a market takes a london centric view of things. .t doesn't direct impact on us we see more caution is not so much in our domestic customers who tend to look at their own position, what mortgages they can get, what their own employment position is. you do see less confidence -- that does make a difference. it could make a difference with the confidence in those areas. anna: would you advise the bank of england to not cut interest rates? you suggesting that could do more harm than good? pete: from a housing market point of view, i would not advise them not to -- i don't think it is an essential imperative in august. similarly from a government point of view with other incentives around the secretary, is about keeping an eye on it. on the back results we're seeing in trading out there -- we would not be arguing it is essential to incentivize. there is a strong trading position out there. manus: tell us where you would be interested in picking up new land bank if it is -- if things do not deteriorate. we can talk ourselves into a negative story. where are the big opportunities for you? pete: we have a strong land bank . it will be opportunity led. clearly that central market has more potential for softness. probably would cost more -- would cause more of an impact. clearly, there is a double .ffect in central london we will be watching that and see that as an opportunity. definitely looking over the course of the next 12 to 18 months, what will happen to the london landmark it very closely. anna: can ask you about staffing? and how your changing the business? what concerns do you have around the business in relation to the brexit? a lot of people who are eu nationals here the u.k., what have -- -- or have you or have you had concerns our conversations with governments? pete: we have for a long time. ,ssets which are very cyclical investing heavily in inferences schemes. looking at it in a period of great uncertainty, even then, expecting things to be worse than they are, we said those real investments we are committing to continuing. we did look at new hires quite closely it we still look at them closely today but i don't think we fundamentally changed our position. those long-term investment schemes were resources for the future. we are continuing to invest. finished. hammond just -- mr. hammond is ready for a reset at wendy's want to see -- what do you want to see this chancellor do?