Minister as he tries to form a new government. Jumps as thera impeachment is called, the death of democracy, but are investors undeeimating the sk we are now less than half an hour away from the European Equity market open let me show ou whee we thihe lndon looksike it wl openso er this morning, continental markets looking firmer and the cac in paris has a similar amount for the dax. A little bit of a pop following what we got yerdayw comeuitis to u. S. Et u thh th gmm nd show you wts going on around the world in terms of e bloomberdollar index, is popping higher, up 2 10 of 1 , a strong dollar this mornin,c ppeng inmoty it is fter today and we will talk aut that later. Lets get you details on whats happening with the first word news. David thanks. Razils suspended president testified after an impeachment agnsr puemoccy arisk. Paign she talkedbo her ture dsnt s s at e faces are all politically motived. U. K. Jobseekers are starting to feel the impact of brexit and companies are advertising more contract positions to any permanent hiring according to an index by it says the average advertising is down 2. 4 through july. Japanese airlines have canceled ey are clo factories as as. Precaution of the storm that could brg more rain and it is heading toward the northeast, areas that were devastated by the earthquake and synonymy. And gene wilder has died at the age of 86. He will be remembered by many for his lead role in the original willy wonka and the Chocolate Factory. The comic actor has also starting classic films like blazing saddles, young frankenstein, and th producers. Global news, 24 hours a day, powered by over 26 journists ananalysts in more than 120 countries. This is bloomberg. Guy blin ddles, p 10 fms. European regulators it lks like are going to breach at noon today in brussels on the competition case surrounding that. We have just had lets analyze what is happening. Apple is apparently on the hook for up to 19 billion worth of cktaxes this could be europes largest ever penalty. This is culminating about whether apple had a sweetheart deal. Our Brussels Bureau chief joins us now. Run us through the deils of what we know and what we are expecting to hear ter. The competition commissioner will come out at noon and layout exactly what the commission has found and what it believes in terms of apple and its tax deal with ireland. The statecome in with aid investigation to say that the special arrangement apple has with ireland has given them an unfair advantage in regards to other companies. We will be listening very closely to what they have to say because we want to see what the languages. We are looking for billions of dollars and we want to see what the what t charges are, so we can see how this might affect other companies, and there are a lot of u. S. Companies that are in ireland. Guy is this about irelands tax rate, or about particular sweetheart deals . Us, what isointing the reasoning of what the eu is doing . Right. Its not about tax rate. Ireland has one of the lowest tax rates in europe at 12. 5 and its about special deals on top of tha its not just ireland in these cases, the eu has also go againompanies a luxembrg, in belgm, andn th eerlands th Companies Like anheerbusch, that had to pay 700 Million Euros or so i similar cases. So that is wwe are looking, the ct that ere is special l thdea irelandas cut wit ale and the reasoning is it gives them an unfair advantage over other companies. Guy we will ave it the. We look forward to your coverage. At press conference could be comi up around noon in russels today with the competition commissioner we will hear from her and hopefully will take it to you live. He numbers ithisase our eye atering, enormous. Had 232st month apple billion dollars in cash. 24billion of it is held overseas. Tes are growiver more contentious and the amount of money held offshore is absolutely phenomenal. Lets join our guest for the next 40 minutes, but head of global fx strategies good morning. If u asompanies repriated all the money they had over, whatmpact would that have . That largely depenn ho mu is hedged, so it really depends on where its being put. For the largest part it is being held in cash accounts and i suspect a large degree of that is currency based. I would think it would be marginally beneficial for the dollar. Guy when you look at whats happening in europe and the implications of whats going on this isnt about tax rate in germany or ireland or wherever but nevertheless there ten about w Economic Performance is being delivered. Policy isys, fiscal becoming the new focus of other taxand all the rates will be coming under greater levels of scrutiny. How on the same page do you think europe is right now . How are you analyzing what comes next . Es are largelyeurozone and eur. Erare coming out of an where we h fcal onlidationthe righw it seems to be panning t at least the g drug is petering out. That in ordern for eurozone to move forward you would need more relaxation on the fiscal friend in order guy is that spending . When you analyze whats happening here and youthink about the shift in monetary to fiscal, hodoes it work . It differs, largely because the eurozone is such a herogeneouplace. In some countries y would definitely need some sort of tax reliein oer to provide incentives but in some other ntries you need a lot of greece, i dont thinthe issue is about how much fiscal burden is, its all about stability, fiscal stability wheitomesk the to expenditures. Guy stay with us. Next, investors rejoice in the demise of brazils president , but have they underestimated the risk . And can spain avoid its third election in a year . Can the Prime Minister rally the support he needs for a confidence vote . And as the family prepares an exit from south africa, we are sticking exclusively to one of their Holding Company falies. Thats coming up. Dont forget, a little conversation with this man, said vice chair stanley fischer. Hewill be joining us at 11 30 u. K. Time. This is bloomberg. Guy 43, welce back. Lets get your Bloomberg Business flash david ingles. David thanks. Apple is said to be developing new features for the ipad that desktops laptops and accordintoeople familiar wi it. Upgrades include wider operating systems, and refreshed wa includes new versis of the desktop and macbook air. The Company Helps to shift the updated Ipad Software and the macs are expected to be out as soon as later this week. Company hasping been suspended from trading after plunging to the lowest level since 2009. Thats after the agency reported its creditors refused to provide fresh loans for court protection. South koreas largest container line says it will do all it can andthe shipping industry, the main lender declined to comment. Said tont bankers are be among theemployees have left ntarily om the perso, according to people with knowledge of the news. They are major industry spokespeople. Has walked away from a takeover bid for hershey, rejected by the chocolate maker. They say they see no actionable cap or word toward an agreement. It was rejected at 107 per share. Thats your Bloomberg Business flh. Guy thanks. Bril suspeed the prsint eyre isonal apal lawmakers,ay wod amountto aolitical death sentence fhe countrys democracy. [speaking portuguese] guess, oncee to aen i was held captive serious and painful illness made my existence shorter. Today i am just as afraid about the democracy. Reporter oin rem was she in any way able to convince some of these senators not to vote against her . Well, she wasnt. Ctually, her speecs very pate, very intee. Public medis waiting hear and e dnt anythings new,he didnt ing ne fight or anything that would be a game changer. That now we just consider this is pretty much her la f urin this position. Gu ok. When doe get the final rsul 20 wfinally kn she i . S gone this is probably going to happen by the end of the d in brazil and maybe the Early Morning tomorrow. That is because we have more than 50 senators lined up to speak, witna froboth sides, those that ar suppters and hersh are her critics d that have been her critics since it started nine months ago. The discussions will coinue all day long in brazil and there is an expectation by the administration that the ving could happen at 11 00 brazil time but there is no clear signal that this will actually happen. Benit guy thak you very much. Philippe. Les talk bout whats happeng in brazil right now, the litics taking and center in evybodys mnd, but behind thecenes there are interesting things goin this is an average ofrazilian corpe bond this you can see rate cuts, Economic Data deteriorati, the macro picture loing faly blk and yet the maetis hein on th vic chancellor toeliver som ecic performance. The flow ibrazil has been lutely amazing. Some companies missed out on this, south africa, but nevertheless it flows to emerging markets. The last couple days it has been moficult. Lets get a take on where these currencies go next. Fortunately we have unicredits head oglobal fxrategy. The rally has been amazing. Particularly the bond markets around the world as people have been searching for yields, and into the stock markets too far . Dont think so. I say this he comeshe rally we have en largely depends on the field the market is gradually taking over the fed. Back in 2015 we had a temper tantrum, a massive set of emergingmarket asset andight now i think the market has come into a phase where it realizes two things first of all that the dollar has been overvalued substantially for quite some time aat the same time it seeshe ds potentially moving by the end of the year but its a very gradual pace. In tha respect the market is reaching out for yields right now without being worried that much about the possibility of action by the fed where they raise Interest Rates to quickly. From that perspective and when i combine it with the dollar valuation, i thi on e whole and absent vatility in the shortterm it still has legs. They underestimating the local domestic problemthe country has faced . The Vice President has so much on his plate, and livering will be so hard. South africa, the list goes on. You are absolutely right. And this is one of the themes we haeetrying to push for que some time. The idiosyncratic factors are definitely at play im not tirely sure i still think it can strengthen from here. Y mentiod to ocotries that definitely have problems aggards but at the same time guy where do i get the biggest bang f my . Ti think ahas a wi room to re fromerand in eastern europi would ate mostly on hungary and pond. Guy ok. Ll thi asia we are minutes away from European Equity market open. Up next, the potential corporate movers in todays trading. Including the shareholders that are meeting with the softbank takeover, very much in focus. Th open is eig minutes away. This is bloomberg. Guy welcome back. 7 53 in london. Minutes away from the market open. Lets talk about the stocks to watch. Arm is certainly one of those stories that will generate plenty to scusthe ft takeover. Theresa may i expect will adess th, the issue bein the u. K. Companies being sold with nothing to replace em in terms of the product stream. You can see the stock has done pretty well. Is this an argument that says the u. K. And the pound dropping is going to deliver, because of the fact that u. K. Asss are cheap, people can come i weekend by what we want aa discounted rae, and as a result we will smooth the transition in a meaningful way . Right, i have heard that argument many times. I would like to give it as the pound dropping, cushioni the impact of brexit at the same e u. Rightow is ch investing in highe evewi the softer sterling. A the uncertainty rains largely inlace we havent gotten anything so far. Cloudsre still a lot of in the horizon d as long as the uncertainty the, yes, a lower pound makes u. K. Assets more attractive but at the same it. The uncertainty ofet as a matter of fact i think i see outflows. Guy t market is coming up next. Positive. Pointing london is playing catchup after the National Holiday yesterday. Ondon is expected to dip fractionally. Plenty comi up. We will talk to stanley fischer. Guy good morning. Welcome. Youre watching on the move. Were here in the city of london and moments aom tway fr start of pean trading. Lets take a look at what is in focus this morning. Aki a bite out of apple. Can spain avoid a third election a year . Rousseff, are they underestimating Economic Risks . Moments away now from e star of european tring. We are moments away now from some data of the of spain as well. We are expecting a positive open with the ftse playing a little bit of catchup on the downside. The market is opening up. That white line there is london. It went straight tough yesterday doing absolutely nothing as we enjoyed the bank holiday. We expect the purple and blue to go up and the white line is expected to go lower. Looks like were opening chge on the ftse 100 at 6. 833. Let me show you to spanish data which has come through in line with expectations. Minus. 3 meerwas nus. 7st me around. In some areas, that is good news. The kdn re seeing on the stoxx00. Most markets on the periery are up a little bit mor the German Market up. 5 . France laggi a little bit. Caroline hyde is here. Nice to see you. Caroline very ne toee you. Ftse plays catchup. So toodo. K. Gilts at the moment. Whether not pension fund t ininsurers want to sell up their longer year and laterdated gilts. Post jackson hole and the concerns that we wld see the ited statehike as soon as september. If not certainly december. Yields pushing up on the k. Treasury. Lets have a look at whs happening. Were digging in now to the breakdown when it comes to industry, guy. Focus on oil prices that toned dip a little bit lower today the reprieve. Th united stes managed to s a record misme were so close in interprets of sll the desio get in equities. Lets get to some of the individual stocks. A little bit of hen it comes to mercado. We might see walmart ocado. I want to be looking at royal tch shell. Loing toe selling up to h20 million worth of gulf of mexico assets. Lastly, i want to be moving on to a german stock. More tot be digging in he indian b. S. P. Guy thank you very much. Lets get back to the data and the markets and the politics. Spanish c. Pimbings in line with expectations at minus. 3,. 7. That is not the real focus today. Politics taking center stage. Spains acting Prime Minister rajoy hopes to end an impasse. He cant count on support from san ocialist leader, pedro ch zench. Today is critical. Is he going to get over the line today . If he doesnt, what happens later in the week . Reporter well, today he needs an absolute majority in the 350seat parliament. He hasnt got them going into the debate. He speaks today. Vote tomorrow night. He is almost certain to lose that. Hen he does that, triggers a second debate friday, two days later. If a handful of his opponents were to abstain, that would let him get through. At the moment they are all insisting they are going to vote against him. That then takes into this twomonth period of negotiation where is the politicians are trying to find a solution to avoid that election. Guy politics is the art of the impossible. Why is it impossible for these people to find a deal . Reporter it is down to corruption. They would do a deal with the p. P. Where they have Common Ground with policy measures. The problem is the system has not been able to hold them to account for these algailingses which have been floating around for seven or eight years now which makes it difficult for rajoys rivals to do a deal with him. Longlastingle and will it be . Reporter that is a good question. Probably not very stable. People are talking about a twoyear parliament. That south of thing. Sorts of thing. If rajoy gets in, he is going to be behold on the the opposition they will stake their reputation to hold the p. P. On account of corruption. I will expect if and when he does get in, it will be a fairly rocky and short legislature. Guy thank you very much indeed. Lets get back to our guest from unicredit. Why are investors ignoring are they ignoring the political front . We have so many issues we face. Terrorism. No government spain. Greece backsliding. They arey have decided not going to put their money to work here or there are bigger fish to fry elsewhere . Guest markets have a tendency to move ahead of the actual fact. With that initial massivive selloff in euro, we had a big selloff. One element is it is already priced. The other element for me is i think the market is taking a more top down view. They have now become accustomed and used to the fact that so originating within the eurozone. There are political hurdles. They will remain in place. Absent, a really big fallout. What we should be focusing on is Economic Data. I think it is fair to say the data has come a bit better than people expected especially in the aftermath of the brexit result and the referendum. From that sense, i think there is still a lot of value in european assets. I think the investors are taking that view. Guy he hasnt done anything, spoken much in terms of guidance for five weeks now. Get the projections coming up. We get a decision. A press conference. The data is ticking along. Why does draghi need to do anything or does he need to do something . Reporter well find out. 4 well find out coming out of the september meeting. On the whole well get a usual very strong pledge or promise to do whatever it takes along these words or similar words in case things deteriorate from here. Having said that, we have reached and and it is not just about the e. C. B. We have reached a status that there is a limb to what Monetary Policy can actually do. From that respect i think even if the e. C. B. Does something, it will likely be sometime in q 4 subject to some deterioration in the data and potentially it will be somewhat margal but not really. Marginal but not really. I think to e. C. B. Is actually looking guy would the market target a lower rate . Guest i dont know who i think right now 110 is a strong level for euro dollar. I think remain at that level. Guy great stuff. Coming up, democracy on trial. Brazils first female president ccusing authorities of a oupd etat. Geelt into a debate as well. Plus exits also causing concern in south africa. Following capital out of the nation. The fallout continues. Well talk to one of the