Can a lesson from Hillary Clintons dr. Back on track . Caroline the key question for todays trading is, weve got Central Banks not expected to very much and what does it mean . Have a look at my futures market, down a percent overall. A little bit of lackluster in terms of your risk appetite. Guy your morning function. The biggest takeaway from this is yet up, decay down. Is yen up, nikkei down. The nikkei is responding to some of what is going on and u. K. And the united states. It seems logical. We will watch and see what. Appens lets get you caught up with what you need to know with bloomberg first word news with haidi lun. Haidi Hillary Clinton has released what her Campaign Calls a comprehensive disclosure about her health. It says she is recovering from pneumonia and all over vital signs and all of her vital signs are normal. She appeared to need help entering a car on sunday. The Clinton Campaign has criticized Donald Trumps disclosure about his own health. He went on daytime television to provide a vague view of his physical condition. Lost markethas share here. According to the the german carmaker has accounted for 26 of the regions car sales in august, down from 26. 8 a year ago. The continued falling share comes after the vw admission the u. K. Government has told france the approved controversial plan to build to test to build those go concert reactorsld two nuclear in south england. That came amid concern the scale of public subsidies and whether chinese involvement was a security risk. President obama has lifted u. S. Sanctions on myanmar after talks with the leader at the white house. He says it is the right thing to do in praise of the countries transition to democracy as a good news story did good news story. That makes it the best performer in asia. As the firstited u. S. President to travel, i could see the enormous potential that was about to be unleashed, and nobody represented that better than you. Deigns should not expect any help from the central bank. That is the message from the banks governor. He says while raising rates anytime is unlikely, it is still possible and people should be ready for it. Weekople expect if your the Interest Rate able expect the Monetary Policy rates to be made positive in the five years. Not, butely, no, maybe is it a risk . Yes. Haidi global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy haidi, thank you very much. Six weeks since the boe delivered a response to the brexit. Today policymakers are having to assess whether the outlook for a change. The snb has a Rate Decision less in an hours time. Luke hickmore joining us. Around 40 billion worth good morning. The bank expected to do very little today. This policy need changing . Luke not at the moment. Think about the impact of policies and what it is going to be looking like. Today is all about a bit of a calls, think about a bit of a calls how that is going get played out. Guy explain to everybody what the luke weve got the list two days ago. A little bit of controversy around the names of the list and what they made by. Thats what they made by what uy. Y may b the impact is going to make an today that is what you may be listening for. It could be a very slow report from the bank of england. Anna caroline give us your sense on the rebound in the data coming from the United Kingdom. We are seeing an improvement in manufacturing and the services sector. Today we get this retail sales. Nervous. I am it is clear luke i am nervous about it. It is clear that the longerterm impacts we are going to have to wait and see. We have seen a lack of bigticket item spending. That to me is the sign that this is not the bank needed to act on the fourth of august. They are going to continue to talk about needing to support the u. K. Economy to try and find inflation. How does they go in terms of longterm investment spending . How does they go in terms of what brexit looks like . We are a long way off. Guy you are famous for saying that you will not sale sell your bonds the bank of england. Had he been selling your bonds to the bank of england . Haveour view changed you been selling your bonds to the bank of england . Has your view changed . Luke not yet. Similar story. We are going to have to see how that pans out. If he gets tough, we are going to have to hunt for other opportunities. For now, it is ok. Caroline we have to turn our attention to the other question today, Swiss National bank. For seven straight years, they have never done anything on its calendar dates when it comes to the market to announce. It always does it as a surprise to as a surprise. Luke you get used to the character of a bank and it central governor. Of a bank and its central governor. Throughrecently come and guidance. It is not surprising that they are going to surprise. It is very little they can do. The Swiss National bank has been playing a game for a long time. Going on the swiss yield curve. The 30 year swissie bounds they came about swissie bonds that returned positive. Guy we have to talk more about what happens with bonds, the volatility story. Luke is going to stay with us. Coming up, the brexit meltdown did not quite happen. The pound is showing signs of life. Is mark carney liking to keep strategy on hold . A look ahead and strategy. Morrison say costcutting strategies are back on track. Will discuss first half earnings. We will discuss first half earnings. His Marco Motroni the right man . That is all ahead. This is bloomberg. Caroline of the pound of salt more bounce ahead of the bank of englands next policy decision announced later today. It is forecast to leave the key Interest Rates at a record low following last months cuts. Manus cranny is at the bank of england, a glorious day. Youve got a guest. Caroline, with that george buckley. We have got george buckley. Welcome to the show. The governor and his cohorts took a sledgehammer to crack the situation it would you agree they did too much of the last time . Are they getting ahead of the curve . George they will be ahead of the curve. I would im a little concerned which our which are very uncertain. We dont know if the economy is going to weaken. The data has held up. These numbers might take a long time to weaken. It wasnt long time back in 2007, that crisis. The data took a long time to soften. In q4 of 2007, we were in the middle of the crisis yet the economy so expanded. Manus i counted that. I see a governor [indiscernible] he is taking big action to protect this economy against the brexital nuances of hard and what article 50 will inflict. George they are limitations on Monetary Policy when you operate at these levels. Qe is less effective when yields close yield curves are flatter. Be at a margin a very limited impact. You concerns about the unintended consequences of lowering rates in terms of the banks . That is in transmission and lending and profitability. George at least that is trying to address the issue of getting banks to pass on those lower rates, because it means they can borrow at lower rates themselves. You gothe risks is flatter yield curves, lower Interest Rates, Bank Interest margins are lower. One of the risks is by raising borrowing rates. Down with c with the cfo at rbs and he bounced around when he pass on the rate cut . It was a great deal made out of this fiscal recess reset we were expecting. He is stepping back, these guys and girls are making it easier for hammond. George theyre looking at an industrial strategy. One thing thats one way to do that is to encourage investments. One way to do that is to encourage investments. As opposed to spending more money, the government itself. The Interest Rate is so low, there is merit to investing. I do think a better option would be for the government to encourage investment. Maybe not go down the route of expanding the deficit. Manus in a brief response, the lower sterling, does it kill or cure the u. K. Economy . George i think it is going to be helpful in the longerterm. The first impact is it might go up. You cannot change your imports, but your prices do go higher because of import costs going up. It works with ways. Manus george, lets see what the minutes bring. Good they bring dissent in favor . Could they bring dissent in favor . Guy, caroline . Guy thank you very much indeed. Minutes away from the open here in europe. Look at some of the digital corporate movers in todays trading. [indiscernible] were looking at the view him morrison. We are looking at w m morrison. This is bloomberg. The market opens 13 minutes away. Caroline a gorgeous 8 48 here in berlin. 7 48 in london. We are down on the futures market. One key german stock i want to keep an eye on, siemens seems to be rolling out in terms of the epicenter projects for argentina. They are going to be giving people one point backed by germany. The german vice chancellor, this is lyrical as well as the engineering giant coming in to help argentina. Retail eye of the storm, h m pulled lower on concerns that its august sales not living up to expectations. 7 climb. Otheris plenty of retailers on the agenda today. Guy it is all about the retailers today. Stability seems to be the story coming off from that. The numbers have beaten estimates for u. K. Retailers at the moment. Very tough, the margin story absolutely pivotal as this price war continues to rage good lets take you to msp, the numbers look ok. The problem is they have been driven by discounting. That is something the market is going to be a little concerned about. You can look at the revenue at 1. 94, pretty much in line with estimates. Discounting will be a concern it what is the u. K. Data concern. We will watch the k data later on. We will watch the u. K. Data later on. Thats talk about where these markets are right now. Lets talk about where these markets are right now. The last week and a half has been fascinating in terms of we are back in two the game now. Ive got a great church which we can show you from the bloomberg. This is the volatility curve. This is the volatility curve at the moment. It has been moving up. It is still positive. It has a forward slope upwards. I expected more volatility to come. The green line here is the 24th, just after brexit. You can see an inverted curve. More trouble to come is what it is signaling, is that right . Luke the volatility around that, the polls are very close in the usa. That is going to worry the market. This month, this policy month, we will looking forward to in september, will we get changes from the banks everywhere . Yet, nothing changed. Suggests we are getting close to the end of Monetary Policy effectiveness. That is a desk that is an enormous concern for the markets. That is an enormous concern for the markets. It has been suppressing it for years. Is the scenario, lets bring in this chart. This is the spread to the 13th in the united states. Shape of the curve is changing good is changing. We are not going to see nothing coming. Luke duration is one of the tough calls. It doesnt feel you get paid to get longduration it we have been reducing it. Longduration. We have been reducing it. There is not a lot more you can go down and benefit from it. You are bettering credit. You are the banks issue into the riskier assets. Staying in government bonds, that is not good information ratio anymore. Caroline in terms of where you play the fx, could a moment when were looking more bearish bullish bets coming out on the likes of the pound. Are we done when it comes to the weakening in terms of bank of england . Luke we still have a shorter cable. Do we stick with our short . It feels a very crowded trade. Going back to what we talked about, the long effects of the referendum vote are still to come through. That you stick with us as we go through next year. Inflation spikes and then it comes back off again. Im sticking with that short in the pound, but perhaps laying it off a little bit with the lower ration lower duration. Caroline in terms of this the bearishnction, bets that it comes to fx when it comes to calls. This outlines where we are seeing the market focus. You can see on the South African rand side, there are more calls for ratio bullish calls outnumbering those. Where are we seeing the likelihood of the yen going . The boj that play in to and your future . Luke this is playing in toward the end of Monetary Policy effectiveness. The bank of japan is going to be talking a lot about this about how their existing actions have made a difference. Able are getting concerned that they are getting toward the ends of their move. Is not a currency across more interest for the impact on japanese government bonds which have been a big driver of our markets. Ou have seen those less secure that could be popping up. Guy this is this the blink the japanese curve that weve got here. You can see this is deepening going on. Can the boj engineer this . They may change the average maturity to the parameters, it is very negative in the front end. Fighting about Central Banks is always a dangerous game. They want to keep motility. They rather that curve doesnt get too steep and the impacts. How much they can do and how much difference it makes, it gets harder and harder. They did a good work on the impact Central Banks are having and it is getting less. Guy luke, thank you very much indeed. This is bloomberg. Guy welcome. Im guy johnson in bloombergs european headquarters. Im alongside Caroline Hyde in berlin. We are moments away from the start of the european trade. Whats the brief, caroline . Caroline banking on the pound. Sterling needs to keep sliding to keep the u. K. Economy on track. But when will carney have to act again . The bank of england decision, new today. And can the new ceo save the worlds oldest bank . Marco murali takes over the top job and want to passkey. And Campaign Health check. Can a letter from Hillary Clintons doctor put her campaign back on track . Guy european markets just repairing to open. 10 seconds away. Were anticipating a little bit of weakness, but we will see what happens. Lets show you what we are anticipating and what we will get in terms of the market open. 100, blue is the cac. Touch, not by much. A fairly flat open. The bank of england coming up well, the s p shortly as and some data out of the u. K. As well. Down, so letsw break it out a different way and show you whats happening around europe. This is breaking out of the stoxx 600. Sweden, norway, denmark are the losers. What else . Lets find out with nejra cehic. Nejra i am starting the gilt market lets take a look at the 10 year yields. Andere at 87 basis points now we are 89, which means we have moved up higher after we saw the yield fall almost four basis points yesterday. We are tracking the rest of europe and have also been seeing yields edge higher. Then moving on to the market open, some stocks looking at the Sector Health on the imap function. We are mainly in the right here and most Industry Groups are heading lower. Telecoms have the biggest losses, down 5 10 of 1 , closely followed by energy. Wti is holding below 44 a concerns overn the global oversupply in crude markets. Consumer discretionary are third in line is against losers. Utility was the best performer, pretty much flat. Overall a lot of red. Moving onto the stocks i am keeping an eye on, focusing on retailers, lets start with a couple of the u. K. One. The firsthalf profit at this met estimates, strong sales in july, offset high a higher proportion of goods sold on markdown. In theprofit fell 1. 5 margin also narrowed from 14. 9 due to the markdown. The company did reiterate there for your sales profit forecast. Looks like things are opening a little lower, down almost 2. 6 . This was a beat sales and earnings estimates eat as the ceo was trying to bring stability to the struggling u. K. Growth after a fouryear slump. Withs are up 4. 6 underlying pretax profit rising 11 and cost savings exceed retailers predictions by the end of the year. The, a check on h m august sales rise of 7 with a miss, and if we look at thirdquarter sales, already 9. Illion Swedish Krona a bit of a miss, perhaps why we are seeing those shares take lower. Next, complaining about the heat wave if it remains. Thank you very much. Lets have a quick check about italian Prime Minister renzi taking to the airways, saying the italian cabinet will decide on september 26, the date of the referendum. The denver 26 is when they set the date, many feeling it will come as soon as november. , key risk for the market whether we see political stability or instability rise. And speaking of italy, theres good news and bad news with investors in the deeply indebted banks. The good paschi news is it has a new chief executive. The bad news is that it is now without a chairman. The stocks have opened and we will check in on how it is trading as we get more on that price and are bureau chief in milan joins us its unchanged. It looks as if they are trying to weigh the pros and cons. Door is the revolving working very well. Out,o in and the chairman which was a bit of a surprise. He was a strong supporter of the previous ceo and at the end of august he came out with a Strong Defense when he came under fire and said that he should remain in that position. Know about the change was forced out and the former cfo at the bank, former head of bank of America Merrill lynch italy is now in charge of the rescue plan for this bank. Guy does best performance give any clues in terms of what he did and what he is going to do . He is in the drivers seat, he knows all the players involved, he has some experience at j. P. Morgan, which is now the main architect trying to pull off this Capital Raising plan, probably of at least 5 billion euros. Advantage ands an i think the initial reception to the market has been tepid to say the least to the idea of going back to shareholders again in the stock sale. There was some th