It is 6 00 in london. Focus on the jobs data. We will talk about the bank of england as well. We are getting numbers from european corporate as well as reporting secondquarter numbers. That income coming at eight at. If we look at Second Quarter offering profit, 2. 4 billion euros. The estimate was 2. 47. What it says is that its on track for its four year target. Im not seeing any detail yet on pimco, but i will dig into that. That is one of the challenges with allianz. This is one of the challenges since the departure of bill gross. Anna of course they have new capital restatement. He arrives on november 1. Onwill be speaking later during programming to the cfo of allianz, talking to was on the move at 8 30 u. K. Time. Thanks for taking us through the headlines. This is the Worlds Largest cement company, confirming their outlook for 2016. Operating adjusted coming at 1. 7 billion francs against an estimated 1. 6. Coming in for the Second Quarter at 7. 2 8 billion swiss francs, an estimate of 7. 62. That looks to be a little late. Thats a little light. They are facing a number of headwinds in markets in demand in brazil. The Swiss Company under the stewardship of eric olson trying to deliver on profitability. They have suffered some highprofile executive departures that have further eroded investor confidence. Competitors have benefited from that. Also from improved command in north america and europe. They have made various pledges around profitability. We will see what they deliver through the morning and how the share prices react later on today. They have a 3. 5 billion swiss franc divestment target and have exceeded, their site. Lets get the first word bloomberg news. Lets get to Tom Mackenzie. Tom the number of those hired for permanent positions in the u. K. Slumped the most in seven years in july. Thats according to a record a report by the market federation, describing the job as a dramatic freefall. The day after the bank of england says the outlook has weakened markedly. The bank of australia released its quarterly statement saying the prospects of the local dollar and china rt uncertainties. It sees annual growth at 2. 5 at 3. 5 through december, accelerating to as much as 4 in 2018. Housing makers expect immediate little immediate change in unemployment. Monsantos books are being reviewed. Thats according to people familiar with the matter. Monsanto rejected and improved 55 billion takeover offer last month. Now bayer has signed confidentiality agreements with monsanto as a considers a new bid. New yorks top banking regulator has asked Goldman Sachs to supply more information about its work for the malaysian state thatsent fund, one mdb, amid investigations into whether any Money Laundering sanctions violations were other mixed conduct occurred. The head of the department of Financial Services has asked for a meeting with Bank Officials by the end of the month. Goldman says its been in dialogue with the dfs for some time. Bank of america has been called out by wall street top regulator for not adequately explaining executive pay. The sec broadly chided the lender for not describing what drove compensation decisions. Between particular interest in the 15 and a half Million Dollars paid to coo Thomas Montag, paid significantly more than other top managers excluding ceo brian moynihan. The Opening Ceremony of the real big games takes place later today the rio Olympic Games takes place later today. After doping scandals, mosquito worries, and collapses, the acting president will officially launch the event. The threehour show will feature highlights including some answers including samba sensors. You can find more stories on bloomberg at bloomberg. Com. This is bloomberg. We will have to see if we can stay awake long enough to catch the opening of the rio games. Lets show you where various Asset Classes have been trading. Nation stocks are the emerging asset. Asian stocks are the emerging asset. Also crucial in the pound, against the dollar, 131, 34. Get to itsid not postbrexit low. Analysts now forecasting a bounce in 2017 inner headlines. U. S. 10 year yields. We see an increase in volatility ahead of the payrolls number. Earlier in august we have seen yields go in higher in underdeveloped markets. Yesterday they dropped to below 150. 51. 5 . At exactly one jobs data later on today. Putting the focus on the divine between the fed and other central banks. The price of a barrel of crude oil, 4159, down by eight cents of a percent. Thats the biggest today increase in a month. Lets check out the latest Market Action in the Asian Session. . David david mentioned the bond markets. Put me get started their, there was a big drop in 10 year. We saw in adjustment in asian markets. Have a look at the japanese tenure. Not quite as. 1. As far as the bond markets, bond prices are going up generally speaking. The other big market story across asia is in japan. Butooks flat, or lower, this market has been flown all over the place. The dollar yen has been plunging a moment ago. That is the yen story. Another related to that is a lot of these japanese companys, icharm for example un is another that came out they are blending a strong yen on why they have to revise a they are blaming a strong yen on why they have to revise a lower forecast. Oil related currencies getting a decent bed. Aussiessie daughter dollar is going well as well. They are seeing inflation below 2 for the time being. In asia, fairly bright note. Volumes are quite thin in made that jobs report. Anna thank you david in hong kong. , focusing to the u. S. Jobs figures. They have flipflopped in the past two months, but economists see the july numbers returning to this years average. We have this report on what to expect later today. 180,000 jobs thats what the Bloomberg Media forecast projects when the u. S. Bureau of labor statistics reports july on foreign payrolls. Into two months prior you may remember the jobs number was usually volatile. Price 11,000 back in may, then 287 back in june. This hiring managers looked beyond Global Financial markets. But if 180,000 four july becomes reality it would mean a return to your average monthly gross for the first half of this year. That number currently stands at 172,000 each month. But will that be Strong Enough to change Market Expectations as well as the feds rate hike pass . Chiefberg intelligences officer tells us probably not. He says the jobs report would have to become somewhere near 250,000 jobs for the fed to even start to take about reassessing things. He says that even that would not definitively put september back into play for a rate hike. They are featuring in a 60 chance of a hike next month. 16 chance of a hike next month. The economy has only averaged about 1 growth. Is as if we dont get to 2 , there is zero reason to be raising rates. Average Hourly Earnings projected to have climbed 2. 6 year on year. If you that would match june if true, that would match june. The Unemployment Rate fold to forecast for 20 . More people enter the labor market looking for jobs. The july jobs report comes on friday 8 30 a. M. Wall street time. Bloomberg news, new york. Lets bring into the conversation our guest host, chief economist at wells fargo. Hundred 80,000 is the number we are looking for, not far from the average from the first half of this year, which would have been hundred 72,000. Well below what we saw in june. Give us your thoughts on this payroll number. Think it will be near the 12 month average, just over 200,000. If it brings the Unemployment Rate down to 420 , a lot of people will be cheering that. 4. 8 , a lot of people will be cheering that. Good news is good news. I think it stabilizes the possibility we see a rate hike by the end of this year, december, not september. People are saying this is an important report. I think they are saying it supported so they can go on a holiday it is important so they can go on a holiday for the next couple weeks. Anna will this really move the dial . And lack of job creation is not the reason that the fed is not hiked rates. No. We saw a nice bump in Hourly Earnings from 2. 6 to something close to 3 . Anna which could be something in the wages number. That is important to watch in the labor market. 280200,000 seems to be the median estimate regardless of the jobs report. Lets look at wages and see factor into will personal consumption forward. Anna we have a graphic that shows the Unemployment Rate and the lack of slack in the u. S. Economy. I asures, that you six the u6 and u3, illustrating a lack of slack that is an eight year low. That is obviously encouraging coming out of the Global Financial crisis. People getting back to work. But as a result, you can correlate that with u. S. Gdp. Is not particularly well correlated. This is a puzzle that needs to be solved when we see a trend of happier consumers, a happier u. S. Economy. I could be the trend for 2017. But if we dont see that trend already, that precludes the fed from hiking rates. Anna does any move in the dollar preclude the fed from hiking . We see the Interest Rate coming down in the white, and blue is the spot index. For the number of months weve had the fed talking about the dollar. At the moment you have to say the u. S. Dollar has been taking a bit of a retreat. Yeah. And that the euro is starting to show a little bit more backbone than it has done. The yen is showing more backbone than it has done. Even sterling in reaction to the bank of england did not fall as much as most people had expected. The dollar is not going to have a huge amount of strength. Is expectations for a december rate hike pick up above 5050 , 5060 , that will drive the dollar. 25 basis points will not see a seachange in evaluations. Anna get orange, we have the gdp number, nine bond payroll in white. Have a perfect correlation, but 76 . Which is not bad. In the face of that weakness in the gdp story, how does this engine hold up . Most of the weakness that we saw in that gdp number was away from the private consumption side of the u. S. Economy export numbers. Residential spending was 6. 1 lower or Something Like that. Something passed since then we have seen it pick up in data around the u. S. Housing market. I think moore present data is starting to show more encouraging news. Jeremy cook at world first. Here are highlights for your busy day ahead. We get the payroll data out of the united states, and after the European Market market closed, a rating update issued for turkey. Midnight u. K. Time, the Opening Ceremony for the summer olympics in Rio De Janeiro gets underway. 6 15 in london. Kearny wheels the stimulus . With signs of stimulus sledgehammer. Were live from south africa as the anc party suffers its worth electoral display since the end of apartheid. Cfo at the top of the next hour. This is bloomberg. Anna welcome back. To lose guys over hong kong. Blue skeis over hong kong. 6 19 in london. 1 19 and hong kong. Latest Bloomberg Business flash from Tom Mackenzie. Insurancees biggest saw a income declined to 1. 1 billion euros for more. 21 point billion euros per year. Allianz ceo at 8 30 u. K. Time. Its considering i direct london to first link that would rank among the first longest flights. Serves its first 77 will continue to defer delivery of its remaining 883 80s ordered. Toyota shares have risen despite predicting a 37 plunge in earnings because of the stronger yen. 5 billion off the operating income of japans seven automakers in the first quarter. Toyota alone has taken a 2. 3 billion hit. The companies have cut off and asked the government for help. Samsung is hoping the olympics will help generate interest with Virtual Reality at based. Is teaming up with nbc university to deliver the first dvr presentation of events. The opening and closing ceremony, diving, track and gymnastics. That your Bloomberg Business flash. Anna now mark carney has unleashed a package stimulus including the bank of englands first rate cut in seven years. The Bank Governor said more easing could come as written feels the effects as britain feels the effects to leave the european union. On the elements in this package have scoped to be increased. We can increase the size of the tfs and expense help for variety of assets held in the person facility. We are clear that we see the effect of lower bound as a positive number close to zero. The bank of england continues to stand ready to take whatever action is needed to achieve its objective for monetary and Financial Stability as the u. K. Adjusts to the realities and move forward to seize new opportunities outside the european union. Jeremy, some labels of the unreliable boyfriend showed up with flowers and chocolates, the whole works. Is it too much . Not saving enough for the future . Jeremy we have a point where Interest Rates are 5. 5 , he is drastically against negative Interest Rates as was made clear in the press conference yesterday. There was only going to be 50 basis points off. They want to keep it slightly positive. It had to be this unconventional policy, which can be ramped up, depending on whether they feel it necessary or not. It has swerved from the Interest Rates. Its more unconventional to be looking at this at the tfs. Hopefully it works. Anna talk to me about unconventional policy, what used to be dubbed unconventional policy, negative Interest Rates. All the places in the world, we have a chart where this is just normal business. We have heard from the bank of england governor that rates will not go negative in the u. K. Hes said before in his rolled at the fsb that he doesnt like negative Interest Rates that much. What you think hes saying in his role at the fsb, that he doesnt like them in japan, or the ecb, were all over the world . Jeremy i think the jury is still out on whether they can grow longerterm stability in these economies. U. K. ,nly here in the while a lot of people were yesterday saying this was a good plan, the biggest calls for caution came from the pensions industry. The difficulty with any further cuts and rates will hurt pensions and banking given the huge amounts of Financial Services exports the mckay economy still relies on concern trade environments. And it kicks to the body would be taking it while it is down. Its not my favorite policy by any stretch of the imagination. Something we should be looking at. Not something we should be looking at. Anna bank of england rate cuts sending yields to record lows, a continuation of that same story. Is a Broader Market story, isnt it . Jeremy yes, and this will likely continue lower. Until we see stable increases in inflation, these fields are going to stay at these ultra low levels. Unfortunately in expansion businesses a difficult place to operate. Come back in a couple of days for the aussie rate cuts. That dollar bounced back almost immediately to 1. 5 . Anna everything is relative. Is trying tongland get ahead of what they see as a deteriorating picture. We have seen the pmi performance all under manufacturing or construction. Just overnight we got jobs data talking about the number of people hired, permanent hires, decreasing the most in seven years in july. Thats just overnight data coming at. How weak does the picture get . What is your forecast compared to the bank of englands . Jeremy we are forecasting a recession in the second year. If the pmi numbers continue as they are, which they will do over the next 34 months. Government, anna did we reshape . Jeremy i hope so. I hope the inflection points are quick to rebound. Ata jeremy, chief economist world first stays with us on the program. The ruling anc party in south africa suffers his worst electoral display since the end of apartheid. We have analysis life from johannesburg live on countdown. This is bloomberg. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Anna welcome down to countdown. 6 30 in london. That was a live shot of tokyo. The dollar is fairly flat compared to the 1 , not much in the grand scheme of things. Lets tell you what it is featuring in todays additional daybreak, now available on your bloomberg terminal and your mobile. Lets take a look at some of the stories from today. We are going all out for the olympics on the front cover of daybreak. Rio olympics kicks off. If you can stay up late enough, you will be in for a treat with the opening ceremonies. After terrorism threats, disease carrying mosquitoes, athlete and terrorist kidnappings, doping scandals, and interceptor collapses maybe i will stop there its alternating off later this evening. Its all kicking off later this evening. And the Supermodel Gisele bush and will be a feature. Lets talk about the u. S. Labor market. Will the real u. S. Labor market please