can a lesson from hillary clinton's dr. -- back on track? caroline: the key question for today's trading is, we've 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 let's 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 trump's 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 region's 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 hour's 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: we've got the list two days ago. a little bit of controversy around the names of the list and what they made by. that's 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 longer-term impacts we are going to have to wait and see. we have seen a lack of big-ticket 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 long-term 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 cost-cutting 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 england's next policy decision announced later today. it is forecast to leave the key interest rates at a record low following last month's cuts. manus cranny is at the bank of england, a glorious day. you've 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 -- i'm a little concerned -- which our -- which are very uncertain. we don't know if the economy is going to weaken. the data has held up. these numbers might take a long time to weaken. it wasn't 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: they're looking at an industrial strategy. one thing that's 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 longer-term. 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, let's 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 today's trading. [indiscernible] we're 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 it's 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 let's 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. that's talk about where these markets are right now. -- let's 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. i've 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, let's 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 doesn't feel you get paid to get long-duration it we have been reducing it. -- long-duration. 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 we're 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. i'm 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 we've 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 doesn't 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 bank's are having and it is getting less. guy: luke, thank you very much indeed. this is bloomberg. ♪ guy: welcome. i'm guy johnson in bloomberg's european headquarters. i'm alongside caroline hyde in berlin. we are moments away from the start of the european trade. what's 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 world's oldest bank? marco murali takes over the top job and want to passkey. and campaign health check. can a letter from hillary clinton's doctor put her campaign back on track? guy: european markets just repairing to open. 10 seconds away. we're anticipating a little bit of weakness, but we will see what happens. let's 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 let'sw break it out a different way and show you what's happening around europe. this is breaking out of the stoxx 600. sweden, norway, denmark are the losers. what else? let's find out with nejra cehic. nejra: i am starting the gilt market -- let's 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, let's start with a couple of the u.k. one. the first-half 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 four-year 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 third-quarter 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. let's 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, there's 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 -- it's 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 driver's 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 thinking that perhaps he was in the right man after four years to try and sell this equity story. --elli had some experience he knows the inside and outside of the bank and capital markets. still, the timing, linked to the referendum as well, it's not easy. it could very well slip into early next year if, for example, the referendum is a no vote, which at this point will rattle markets even more. guy: thank you very much. this story on monte dei paschi. i want to take you to what's happening on my screen, which you may be able to see. the u.k. has approved the $24 billion nuclear project. there has been much chewing and furling as to whether or not it will happen. the chinese have been paying attention as well. our next guest is still with us -- i am not going to ask you this is the right decision, but the u.k. government is committing to a large infrastructure project -- do we need to see not only this but more of this, and what kind of projects should we focus on? >> the great america phrases shovel ready investment projects and that is a difficult find. i have put 2 billion in the ground already and they can get on with this particular plan. u.k. almost anybody in the , they need work. it's a good infrastructure investment. -- ave high-speed rail guy: they need to make a decision. >> and if may is serious, they need to improve travel times across the u.k., deemphasizing london is the only base. caroline: i think it's interesting that the fuel to the fire when banks are out there lending -- we were just discussing monte dei paschi. what about those being hit by the central bank monetary policy? , stopdraghi saying complaining when it comes to profitability, it's not our fault. where do you think they start to go as we see the yield curve on the long end? the banks need to man up a little bit and go on with their life and yet we also see mark carney saying that he is very concerned about profitability of the banks, moving into interest rates, and what that would do. it's a problem. they are seeing higher fees with mortgage rates stable and loan fees going up. they are finding ways around it but central bankers have to understand that it has to be demand for loans as well as supply. demand is not very strong at the moment, so you will squeeze bank profitability. net interest margins will be capped under pressure. the lower yields are also problems for the insurance industry as well. is: the cp yield curve -- this the solution to europe's banking problems? should we engineer a steeper , if you can engineer a solution that will solve these problems quickly, he has the option to do it. is that the next step? >> yes, but i don't think he will. i think he is trying to get people to sell you live -- low yielding securities on the expectations that it will feed through to the economy. his comments about the banking sales, iworrying about think that's an indication that he will not be engineering the yield curve that she would like a flatter one. caroline: he stays with us. you're going to take a quick look at the shares on the downside on the back of that news -- coming up, looking at the negatives. as the bank of japan set to make deeper cuts the negative rates? we look ahead to the beak meeting. hillary clinton releases new health information as some polls give her tempe new cause for concern. the brexit meltdown didn't quite happen and the pound is showing signs of life, so was mark carney likely to keep the strategy on hold? this is bloomberg. ♪ guy: 13 minutes past the hour, let's show you what's happening. 30 minutes is the trading session, let's talk about how the markets are falling flat. no sense of clear direction this morning. let me take you inside the mrr, the ranking function. this is the stoxx 600. , up byket liking it 5.4%. the aerospace industry components comply or -- components i supplier is up. lands down is next. story -- discounting and i love to talk about this -- it's british weather and i am warm. let's get you to the bloomberg first word news with haidi lun. haidi: hillary clinton has released what her campaign calls a copperheads of disclosure about her health. it says she is recovering from pneumonia but that all her vital signs are normal for stop her condition came to the four again when she appeared to be health entering a car. daytimerump went on television to provide is a good view of his medical condition. volkswagen has lost market share for the 12 month in a row according to the european automobile manufacturers association. the german carmaker accounted august,of the sales in down from a year earlier. the continue to decline in share comes after the asian lesson number of cheating on emissions test. has approvedrnment a plan to build two nuclear reactors in southwest england. theresa may decided to review the point at the end of july, costing a project that was approved by her predecessor. this comes amid concerns about the scale of private subsidies and the chinese involvement. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. this is bloomberg. caroline? caroline: thank you. shares and take your dropping going for itsix longest losing streak since 2014 on the at that the boj will make deeper cuts into negative interest rate. the rate decision is next wednesday. our guest is still with us. the negative rate policy -- is it working? i think this is one of those counterfactual problems. ,t's difficult to find evidence but if it wasn't there it would probably be worse. employment is pretty good in japan and there are early signs of inflation -- in that sense it may be working. ,ut it is not getting through and i think that is the problem central banks have all over the world. you need to shift to the fiscal side of it to see if it makes the difference. guy: they could take rates a lot more negative than they are now. >> yeah, but we were talking about bank profitability earlier on. they can help the banks avoid getting hurt. they could do more, but it is not helping denmark or the swiss national bank. i don't think it has helped many -- we will see. and is the difference think we will get to digest that before we see any action. november, maybe late october before we see any action. guy: will the japanese be the first use helicopter money? >> possibly. i'm not convinced helicopter money works. i think they are very aware but in some ways they have been there already. what they have been doing through the curve, we have seen it before in japan. maybe they get once burned, twice shy. there is so much speculation that we are heading to the end of monetary policy. japan has led the way in negative rate, but they also have exchange traded funds. do you see other banks doing that? >> i think not. i would like something to invest if youit is no good .ight hard for investors japan has a problem with demographics that they need to sort out -- they have to encourage people to take riskier attitudes. i don't think the ecb has the tolerance to be buying equities and that is certainly the case for the mpc as well. guy: is the biggest problem that we can't see fiscal policy taking up? in europe, the political timetable and desire is simply not there. the ecb has a much bigger problem. . it's an enormous problem, problemwhich is why we aren't lo see much fiscal stimulus. what they will do is relax the fiscal rules and we have already , ignoring ais year classic brussels fashion to that you are letting fiscal balances get worse without finding people for doing it. guy: will kick more, from aberdeen. caroline: up next, we will be talking about that volatility trade. what is whipping up asset classes. we will get the calls. stay tuned. a misty morning. ♪ caroline: welcome back. 22 minutes into the trading day, markets ahead of the bank of england -- a beautiful morning in berlin. expectations of currency swings have surged after volatility returns. how to position in this new, turbulence climate? let's ask lou kick more. --ant to dig into something the ones that have paid off well. your oil related company is falling today -- it looks like they were looking to sell the rights to a field they owned. how much do these individual use points move when it comes to bond market picks? i was looking for that, to be fair. they need to be continuing we reducing their debt pile, which has been getting bigger recently. but for us in quest is all about project delivery. the big thing is continuing to move toward oil, which is the key point. why we think it should pay offer our clients. the news flow is going to push the equity but for the bonds they have been pretty savvy -- moving but not much. it is a a big position risk that we are quite happy with. guy: just to put this in a little bit of context, this is the dip, and as you can see the stock is not really moving the dial. and this is the correlation with the oil price and the curve is pretty much matching. it's pick for pick. what do you think of the oil price? >> it is stabilizing. big moves potentially day on day but this is not $20 oil anymore. if we are in this range of $40 to $50, these companies start making money. they cut their costs massively. $29-$30 per barrel. anything above that and they are cash positive. that's the good thing about oil and the restructuring of the cost base. aboute talking off-camera how difficult it has been -- you have seen those cost base is hit hard but it does profit these companies meant to pull oil out of the ground. caroline: many an emerging market is exposed to the oil market and they do like bombs there. >> absolutely. we were also talking about euro-sterling, down a beer 1% since last week. think around mexico and brazil and the latin american market, their opportunities there for economies to recover, and that's a good place to be. there are signs of that coming through -- the emerging market debt found plenty of opportunity, as we are in singapore and indonesia. they are all getting pushed out to these more interesting -- guy: is this more interesting? >> partly it's definitely a dollar tree. you are getting continuing moves , where we think things are going. guy: thank you very much for coming in and spending time with us. luke, from aberdeen asset management. caroline: fantastic. up next, the brexit effect. as we wait for the bank of england's next policy decision, how u.k. property prices have been affected after a vote to leave the eu. swissen we get the smb rate decision in a little under two minutes. we will break it down for you. this is bloomberg. ♪ guy: breaking news. central banks, switzerland and focus. s&p does absolutely nothing. bank, as ever, is pledging to intervene if needed -- it is basically leaving all of its main targets unchanged. time, ther this every s&p says the swiss franc remains significantly overvalued. imbalances in the mortgage and itte market persists and will regularly except a statistical buffer. like -- to be honest, it is doing out slowly nothing. nejra: i am watching retailers. they are the biggest mover on the stoxx 600 -- let's start in sweden. the august sales rise of 7% was amiss of the estimates, third-quarter sales coming in at 49 billion swedish krona, excluding the estimate. that was a slight miss in the shares, down 2.5%. is best performers so far the supermarket company in the u.k., reporting sales and earnings that both beat analyst estimates. the ceo looking like he is bringing some stability to the struggling u.k. growth after a four-year slump. underlying pretax profit rose 11% and morrison's also said that cost savings will exceed the retailers one billion pounds target by the end of the financial year. it shares up, hitting their highest since march. then moving on to another u.k. retailer, one of the worst performers on the stoxx 600, shares hitting their lowest in more than a month, down 3% at the moment. first-half profit met estimates, so they had strong sales in july, both in stores and online, but that was offset by a high proportion of goods sold on markdown. pretax profit fell 1.5% and the profit margin narrowed from 14.9% to 12.4% due to those markdowns. the company did say it reiterated its four-year profit forecast. guy: thank you very much. 12:00, we get the latest policy decision. last month mark carney was asked to pass on the rate cuts. this came after the brexit vote shocked the system. the property market experienced a lackluster recovery, according to data from lsl property services. august home prices rose just 0.1%. joining me now is peter williams -- good morning. to bevernment is going spending a lot of money on the construction industry -- what else needs to happen? are expecting in the autumn statement that there will be some housing stimulus measures. the question, i think, is whether that stimulates demand and price increases, or whether it stimulates supply. caroline: what has been maintaining the lack of a fall off a cliff when it comes to housing prices? it's largely that suppliers aren't. >> yeah. i mean, the housing market in the u.k. is underpinned fundamentally by a massive supply shortage, supported by mortgage lending. the brexit vote has an immediate impact on housebuilder is -- their response to risk in the census and some have said that they will continue with their plans to increase output, which has been increasing, but we expect that to slow a little bit and that would impact on what is clearly still a market of rising demand and static and slowly rising supplies. the fundamentals are very strong. guy: what would help to build rather than by? >> help to buy is help to build -- the question is whether they can expand that. i think the issue partly is that the government needs a supply mechanism out side the relatively small number of large speculative housebuilder is. the smaller and medium-sized certainly housing associations all need to contribute. caroline: talk to us about foreign demand. --heard about hinkley point the british, the french, is alluring in oregon investors? has borne thendon brunt of the brexit fears but they were also shaken by the changes in taxation and mortgages. london's prices have come off the boil, and that is impacting the global index. -- wasly evidence about this an opportunity for investors to jump back into london and take advantage of housing prices -- that hasn't come through yet. that is partly due to interest rate exchanges and that they are seeing such a huge bargain that they need to come back into it but it remains a very attractive investment opportunity. clearly they have been driving the central market housing market which has rippled out and has huge implications for the wider markets. guy: how much money in the u.k. housing market is personal pension money? >> i don't know. clearly, we are seeing the market hugely driven by older investors who are facing reduced savings and in some cases pensions. all the survey work says there's a significant amount of people in that market who are using that in addition to their pension. today, anything you want to see coming from the bank of england? is there any concern that what they are doing isn't untenable lending? >> inevitably, the further you reduce interest rates, given the cost of funds, there is still going to be a bottom point where your administrative cost can't be passed on. prices,educe mortgage that's reducing all the time, and we don't expect to see them get much lower. certainly by historical standards. what we need to see from the bank is the problem that they face is on interest rates and mortgage controls. that's only part of the housing problem, the cost of funds and mortgages. there are other issues about supply and as the bank keeps reminding us they don't pull the levers for those parts of the problem. the focus is always on the bank but the bank can only do so much. guy: absolutely. thank you for sharing. peter williams. up next, the clinton campaign. caroline? caroline: releasing fresh medical information. that is as hillary clinton prepares to get back on the trail. we take a closer look at that next. this is bloomberg. ♪ caroline: 40 minutes into your trading day. let's have a quick check on the markets, because we are flat as a pancake when it comes to the stoxx 600 stop let's show you have a different asset classes are moving. falling theussia most, completely flat with the ftse 100 -- but look what happened to the swiss franc, holding steady. brent crude up 6/10 of 1%, wti also gaining. i want you to look at the united kingdom sovereign bond, we are up six basis points and we are seeing the selloff across the maturities. will we see more reaction as we build into the bank of england later today? the japanese 10 year coming in a little bit at the moment -- now let's get your bloomberg business flash with haidi lun. haidi: thanks. has named marco marelli to be the ceo. the chairman resigned in an unexpected move and we are .oined from bank of america the moves come as italy's third-largest bank is struggling to avoid a bailout. buyer in monsanto have been quick to reassure regulators about regulatory approval. the comments come after the company agreed to a deal, the biggest of the year, and the largest ever take over by a german company. the ceo says they are taking steps to ensure they get the go-ahead. >> regulatory challenges have been discussed intensively as part of our negotiations and beyond. we have both had very large teams of our own people, antitrust counsel, looking at it jointly to assess how big the regulatory challenges might be. haidi: nokia ceo says he will waste no time in pushing through a merger. he told bloomberg he has learned from billions of dollars loss and complicated deals. >> the immigration is going really well. fearf the things has been of private business so we have made all those decisions in the first 90 days. in thebeen going on portfolio. haidi: and that's your bloomberg business flash. guy: great stuff. medical records have taken center stage in the presidential race. both candidates have enrolled fit to serve. hillary clinton released details from her medical exam. hours earlier, donald trump gave of vague view of his overall health on the set of the "dr. oz show." he has not released any information publicly after his physicians that he would be the healthiest individual ever elected. joining us, the author of "hillary rising: a political biography of secretary clinton." good morning. how much damage has the pneumonia instant done? >> well, we will have to wait and see how this plays out in the polling. certainly the polls that came out in the last 24 hours don't bode well for hillary clinton. but neither did they give donald trump quite the amount of good news that he might've hoped for. one or two polls are showing ohio moving ahead, but those are outliers and not in line with the overall voting patterns. it is fascinating to see that he has not taken a hugely forward. it's not great for hillary but it's not catastrophic. caroline: dig in with us a little bit more about these particular polls. ohio.th trump leading in thathas been a swing state has backed the winning candidate for the president since 1964 -- why is it an outlier? >> i think what is important to remember about that whole that you put the figures up for, and they are quite stark, is that it's based upon a polling sample of some 800 or so individuals. there are only about 35% of constituency of democrats. the extent to which it could be seen as accurate as debatable. it's also contradicted by several other polls from that state, which show hillary clinton up by seven points, and one up by one. well we should take these as a noble average, i would also point out that ohio, if any state would go for donald trump, ohio, with some of the high rate of unemployment, a propensity of white, undereducated bales, is potentially favorable as any state at this point. it was difficult for hillary clinton to win, and if you look across other states like nevada, i think hillary clinton has still got a somewhat reduced lead, and that is the greatest surprise, that her lead has stepped away from the high points of mid-august. to an extent that is to be expected as we get close to election day. that is a historical trend. guy: hillary clinton the spending an awful lot of money on media at the moment, as he would in a presidential election. we discussed this as he sat down. you want to be invisible in this campaign -- are those dollars will spent? >> i think what you have seen as hillary clinton the accused of running the clock down in the last couple days, before the collapse of the new york ceremony. trying to stay out of sight, not out of mind, but keep the limelight on donald trump, allow him to talk himself into trouble. quite frankly, she has fallen victim to that herself. before she collapsed you came out with this idea of half of donald trump supporters being the basket of deplorables. a terrible mistake. you play the man and other supporters. victim to thel very tactics she is trying to catch donald trump on. she hits the campaign trail again today. barack obama has been campaigning for her in her absence. the real risk now is will there be another medical incident between now and when they meet? relapse and she must really hit the ground running. her doctors told her to get some rest -- will that be enough? it's difficult to say/ in terms of what is enough, in terms of transparency, many calls not only for the health of our but his tax returns -- billionaires are getting involved, the linkedin founder wanting to pay money toward charities. how much is the u.s. electorate caring about the lack of transparency? havee challenge is that we two very unlikable candidates. before i sat down we were talking about the idea of theing out of sight because more you are seeing them less america seems to like either of them. hilarious, donald trump going on the dr. oz show in talking about his medical records, as if that is some established platform. in past cycles we have seen john mccain sit down and bring a whole host of respected journalists in to say here are my medical records -- ask me anything. the lack of transparency on both sides -- hillary clinton has been widely attacked by the media who are trying to cover , andor being out of sight donald trump is keeping things close. we are talking about two of the oldest candidates ever to run -- just because they look healthy, hillary clinton will turn 69 shortly, donald trump is 70. he would be the oldest american president at election day if he wanted november. you have the ages of the candidates at that level, no doubt questions will be asked. guy: how is the executive race impacting the others? >> what we are seeing is that on the republican side, they are trying to run a cautious race. saying, forget about donald trump. he is almost out running on his own and is trying to save the senate for the republican party. he has distanced himself to some extent. if donald trump starts searching in the polls, and there's a come to donald moment, and suddenly republicans forget their differences, if it looks like their electoral successes will depend upon him and he starts doing better. guy: thank you very much. a hillary clinton biographer and historian. caroline: the outlook after brexit. will there be a change in we are live by the bank of england ahead of the latest policy decision. stay with us. this is we are live by the bank of england ahead of the latest policy decision. stay with us. this is bloomberg. ♪ caroline: welcome back. 53 minutes into the trading day, we are revving up for the bank of england. six weeks after they delivered a stronger response to brexit than many forecast, policy makers are setting one of the outlook warrants exchange a strategy. let's get more with manus cranny, joining us from the bank of england. manus, we aren't expecting anything today. more focus on the outlooks for november, isn't it? manus: absolutely. the market doesn't presume there will be any new rate cuts for any additional stimulus. when it comes to the markets, there's a whole variety of views. it's all about the data -- mark -- 75 basis points worth of easing came into the market, quantitive easing, rate cuts. some people it's like a sledgehammer. have a look at some of the charts -- we got the data yesterday, that is expected by the bank of england and this is one of the strongest parts of the argument as to why he went hard and fast and in august. nine years ago the bank of england backstopped and it took quarters before the unemployment levels rose, more than a couple before the recession kicked in. i caught up with ross walker from rbs and he says the post-brexit commentary on the data is unhinged. he said now was not the end, it's not even the beginning of the end. question is when does brexit kick in, because we haven't even started article 50. the pm eyes -- they suggested there's a little bit of growth and even carney himself passively accepted that in front of parliament last week. but who knows what brexit really means? guy: we will find out tomorrow. we have a program describing brexit. what are people saying about the gilt market? manus: well, if you have a look at the cable from that three withe low, that vacillates hard brexit conversation and soft brexit conversation. wage data yesterday, when you strip out the bonuses, was a little bit lower. we have had a bounce in sterling -- it's not viewed by the market -- and have a look at hsbc. a 13% drop in sterling by the middle of next year, a great piece on your bloomberg. is sterling the killer tear? will it stay the current-account deficit? they were the darling of the bond market -- will that continue? we will have to see. the figures are coming hard and fast on a global level. caroline: they are, indeed. outside the bank of england, all day, with the heat. a quick check on the market, it's a flat day ahead of the bank of england measure, where we have the mrr showing u.k. stocks in focus -- the supermarkets are outperforming, up 7% on the higher side. one downside, and that seems to be worrying investors, considering their first-half profit met estimates. guy, we have to be sticking with "the pulse" up next. francine lacqua will be talking about the bank of england and brexit. stick with us. this is bloomberg. ♪ francine: roller coaster or to slower after a five day selloff. eight years after the lehman collapse are product makers running out -- the bank of england is expected to hold rates. hillary's recovery. willie doctors note bill enough just will a doctors note be enough to put her back on the campaign trail -- will a doctors note be enough to put her back on the campaign trail? ♪ francine: welcome to "the pulse." i am francine lacqua. we have a great show lined up. joining us

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