A warm welcome to those waking up in the United States. I managed words. This is pulse bang. Anna edwards. This is pulse bang. The pulse. Hans nichols is on the ground following developments in berlin. Spoken to the Ukrainian Foreign minister. Said there wasn moderate progress. He was very careful and he delineated where the progress is. It is difficult to see after five hours of talks last night in berlin just where precisely Real Progress was made. Maybe a little bit on border security, controlling the border. Both Foreign Ministers said that some progress had been made there. The Ukrainian Foreign minister really made a point that all of the actions all of the words that were committed last night need to be followed up with actions. That is a crucial point. At this point, we have talks that the foreign minister level. The ukrainian swap this to escalate and they want them at the president ial level. Mr. Poroshenko and mr. Putin. That is where the decisions are being made. On this crucial issue of the aid convoy, the Ukrainian Foreign minister had no actual intelligence that it would be coming into ukraine within 24 hours or 48 hours. All of the holdups are on the russian side. It seems to me, after listening to them talk this morning, that there is a whole lot less reason to be optimistic than last night than the foreign minister of the foreignhen minister of germany claimed there had been some progress. It is difficult to see where that actually is. Everybody is going to go back to their home government, consult, and then they will wait further instructions. You have to wonder what markets are looking for equity markets around europe making gains on reports of progress being made between these negotiators but you have mentioned the convoy. What else is happening on the ground . We have seen reports that there have been some jostlings for power over the weekend. The ukrainians keep saying that there is shelling and incursions coming in from the russian side. They do not see the situation on the ground the escalating at all. Deescalating at all. At the press conference in berlin this morning, mr. Lavrov, the Russian Foreign minister, said that the convoy was a Ukrainian Government convoy that was moving toward rebel positions and that rebels boarded it and destroyed it. I ran that by the Ukrainian Foreign minister. He said that is hogwash. He said it is a convoy that came in from russia and the ukrainian troops defeated it. There is not even certainty or agreement on who this convoy whose chain of command it was in, who it was reporting to. There seems to be quite a bit of tension if not real fighting on the ground in eastern ukraine. Foreignve these four ministers convening around a table. They are pushing for this to turn into something with a little more clout. The president s rather than the Foreign Ministers to discuss things. At least they are talking and that is the positive people are keen to this morning. Are talking and there are prospects for future talks. These talks did not break down into a stalemate by any stretch of the imagination. Yes, there could be the opportunity for additional talks. Pavlo klimkin was very clear that he would take his information and go back to his president and await furtherance ructions. That is what Foreign Ministers do. Further instructions. That is what Foreign Ministers do. You have to trust your counterparts. They still trust each other. There is an opportunity, the groundwork for national talks. Thank you very much. Hans nichols from berlin. Stay with us. We will bring you that interview with ukraines foreign minister. Hans just conducted that interview moments ago. We will bring that a little bit later. Lets turn our attention to company news. Trading. Umped in tokyo roche is said to be buying out a japanese drugmaker. Roche trying to get here . A veryai has been significant part of roche over the years. Japan is the worlds secondlargest market for pharmaceuticals. Chugai tends to do big drugs for big markets. We usually hear about orphan drugs. These are things that are quite widely needed. Two very well known cancer drugs on which roche and chugai partner. Roche is looking to take full control of those and of the cash flow. Do they need to be taking part in this m a frenzy . They seem to be motivated by slightly different things. The bit they already own is really integral to roche. This is different from some of the other deals we have seen in this space. N you get a wave of m a going boards, chief executive start to think, where is our deal . Are we going to miss the boat . The market support for consolidation and making big Strategic Moves . Roche has done a bit of acquiring this year. But it has been largely smaller stuff. There are 200 billionplus company and have enormous power if they should choose to use it. Roche has been on the sidelines in terms of the really big transactions. This could be their move. They have done some big ones in the past, swallowing up genentech in 2008. Are we going to see a continuation of mergers and acquisitions . That is certainly what you do here out here in the city and on wall street. I think there are some question marks. Certainly, the economies in the u. S. And europe, there is a bit of hesitation about how durable this recovery is. All, we do have the possibility that Interest Rates will go up at some point, though it seems rather distant. That could make deals harder to execute. There is no question that boards and ceos are thinking big thoughts whether they had to get actually get to making these deals is another step in the process. Lets bring you up to speed. Julian assange, the founder of the wikileaks website, has been giving a News Conference from the Ecuadorian Embassy. He said he will be leaving the embassy sent. Soon. Little detail around that, but he has said that. The wikileaks website put up military documents and 2010 and has made them the subject of the u. S. Authorit iesinvestigations. An update onyou what to expect from the week ski events. Weeks key events. Welcome back to the pulse. Lets check out what is happening on the currency markets. Focusing on the pound this morning. Here is where we are trading against the dollar. That shows you where the margin has been over the past week. You can see some of the bigger movements we saw at the middle of last week. England governor telling the sunday times said that he will not see an increase in real wages to act on Interest Rates. Thehad some data out from Housing Company here in the u. K. , talking about how london and the u. K. As a whole have seen month on month and house prices not unusual to see that in the summer months, but more than some people had expected. That is spooking a few people, those who are long on prophecy in the u. K. What do we see ahead for the pound . Latestmore data or the minutes from the bank of england there out later this week. We will have central bankers speaking at jackson hole later this week. Lets talk to jeremy stretch. Jeremy, good to see you. Good morning. What mark you make of carney at the bank of england has been saying of late around wages . On the one hand, what happens to them seems to be important for Interest Rates, but on the other hand, they are not. Demystify this. Appears that the bank of england were putting greater stress on wages as a keen marker in terms of policy. Seem to have found the weakest part of the labor market cycle as a justification for what was happening and to react aggressively. It seems to be going back on the comment. It is a flipflop or whatever you want to call it. That is causing a great deal of uncertainty. The problem is that as market participants, we focus on when the start of the cycle begins. That is the real element. That is what we are trying to price in. Mark carney is much more concerned about the pace of the direction beyond that. That is the real text position. Juxtaposition. Why not think more about the pace of the rate hikes when they come . He said, we hope they will be gradual. Why worry so much about when exactly the first rate hike comes . You are right that the emphasis was gradually limited and he continues to do so with each and every utterance. The markets are looking for deviation or changes in policy. We had this prolonged. We had this prolonged period of Monetary Policy in the western economies and now we are looking to see when that process starts to unwind. It is relevant how quickly the progression starts to come. It is all about who is going to be the central bank that first says, we need to see some degree of modest normalization. That is really what the markets are waiting for an focusing on, not just in the u. K. , but the u. S. In jackson hole as well. When do you think this will start coming through in the bank of england minutes . Will we start to dissent coming through . . We have the looming Scottish Referendum as well. Quite a lot of uncertainty. There are a lot of geopolitical uncertainties. A think if you look at the pace of growth in the economy, you could argue we are going to use of Spare Capacity quickly and i t is a difficult debate to measure that. We have seen quite vociferous andnds for hikes maintaining easy policy for a prolonged period from former members of the bank of england. Nisr has seen the gdp indicators generally being pretty robust. Tightening the labor market will start to encourage dissent. Maybe not this way, but signs of the dissenting reflected in minutes will be enough to encourage sterling a little but after a surprise pullback tomorrow. Focust is going to be the of jackson hole . The Central Bank Leaders from around the world are gathering in the u. S. At jackson hole in wyoming to talk about what . To talk about normalization of Interest Rates . The title of the symposium is reevaluating labor market dynamics. This is the key benchmark. This is what the central bankers are geared around. We know about the job policy mandate. The markets. About job openings were 13 year highs. Job openings going up as an indication that the labor market is improving. Pragmatic janet yellen respective, perspective, we are not going to see her waiting for all the slack to be used up before moving. Hear comments from both sides of the atlantic about how this recovery does not look like recoveries of the past and that seems to because adding economists and central bankers to really ask questions about how these economies are recovering and what role wages played in all of that and productivity a lot of different themes to grapple around the labor market. Absolutely. That does cause a great deal of consternation. You are right. You can argue that it may be due unemployment coming back into the labor market, the lowpaid jobs. There are also influences in terms of demographics. Have the baby boomers retiring in the u. S. There are lots of crosscurrents that make it much more difficult to evaluate in terms of a normal labor market recovery, which we would normally expect to see growth and employment leading to growth in wages. There is a much greater lag and that is the difficulty to markets and policy makers. Thank you very much for joining us, jeremy. Thank you. Jeremy stretch. Lets talk about technology. Tech trends or changing the hotel industry. Provide like airbnb alternative accommodations. Hotel groups are working on improving the Guest Experience through social media. Cory johnson finds out more. There is something magical about a great hotel, a sumptuous lobby, a cozy bed, perhaps a beautiful view. The real magic in hotels today is technology. Hightech initiatives are completely remaking the industry. 40 of hotel rooms are empty at any given moment and that is a problem. Social media will draw in return customers to hotels. It is an emotional connection. Commune, the highend Boutique Hotel group, has become a social media addicts. We have five social media managers for the company. They are assigned per brand. They manage the flow of traffic to rid traffic. Will send a celebratory bottle of champagne to someone who tweeted they just got engaged at a certain hotel. With the rise of internet booking, the Boutique Hotel business exploded. Are not 53 percent of hotels. Technology in the hotel can still be a challenge for boutiques. A big brands are now 53 of foothills. Hotels. Cannology in the hotel still be a challenge for boutiques. The best User Experience is getting back to basics. Hotels still do not offer free wifi. I will not name any names. The f16 air force thunderbird is experiencing preparing to take flight once again. We will discuss this. Welcome back to the pulse. Live on Bloomberg Television and streaming on the ipad and bloomberg. Com. The thunderbirds are u. S. Air force squad. They lost funding last year due to budget cuts. Now they are back in the skies. What does it take to run this elite team . Adam johnson got the opportunity to go up in an f16 and see with the thunderbirds are all about. They all fly with us, go home, and take a nap. We hope you dont get sick at all. Are you ready to go . Im ready. You ready to give it a try . Lets do it. How are you feeling . Feeling good. [laughter] [applause] feels good to get out of that. Rather him than me. Im surprised he could talk. It is time for hotshots. Being a motocross athlete is no walk in the park. It it takes an immense amount of training to prepare the body. , the formerh africa sit down and stand up jet ski champion spent some time shredding the waves. He spent the afternoon throwing a few backflips and kick stands. Got a big boost in their quest to become the indycar champion. Montoyaoff juan pablo to win. Goal. Ep closer to their russias foreign minister says there was no progress on a ceasefire in ukraine. We will bring you hanss interview with the Ukrainian Foreign minister, pavlo klimkin. You can follow me on twitter. See you in two minutes. Welcome back to the pulse. Live from london. Here are the Bloomberg Top headlines. Kurdish forces have taken control of most of the countrys largest dam near most so mosul. This reverses some of the gains made by isis. Germanys foreign minister says progress has been made at truce talks in berlin to end the fighting in ukraine as kiev says that its forces destroyed half of an armored column from russia. The red cross said it wants safety guarantees before it intercepts an aid convoy from russia. Mark carney says the bank of england may raise the key Interest Rate before workers get pay increases. It has to have confidence that the real wages are growing. Minutes from the july meeting are due this week. Despite all this, geopolitical tension, markets remain. At the map behind me, you see a translation. The aex is almost up 1 . As the Foreign Ministers get together and have discussions, it is translating through. What you are still seeing his money going into the dollar. This is the way the dollar traded this morning. Is progressively changing direction. We are going toward jackson hole at the end of the week, which is the kansas gathering them of the kansas city gathering of fed governors. Of thinkers or a collection doves as the case may be. Minutes himreserve of the United Kingdom minutes. The Federal Reserve minutes, the United Kingdom minutes. You have the country waking up for breakfast on a sunday morning, you get the sunday times and another trashy but anyway, and there is mark carney. He did an interview in the sunday times. He said, were possibly going to move and wages will come along behind and more or less we have a consensus on a committee, we are united, we will be gradual unlimited. The more you hear that man tell you that it is going to be gradual unlimited, hikes, when they come, the more often the rhetoric changes, one has to wonder whether its any substance to gradual unlimited. Gradual and limited. Back to you. There is no pleasing some people. It will be time for surveillance and a couple of minutes. What have you got for us today. Happy monday to you. It is a monday of negative Interest Rates in germany. We will look at that. We will look at the 10year yield. Ands well under 1 sustained under 1 . One of the ramifications for europe, the United Kingdom, and america. We are thrilled to bring you a series of guests to synthesize all that is going on in the markets. Away from that, we will be focused on the serious events happening overnight in st. Louis, missouri. Jay nixon governor bringing up the National Guard moments ago. Riots and protests in ferguson, missouri. We will touch on that. The owner of the Sacramento Kings will join us. He runs a big tech operation as well. We will talk to him about fast data, big data, and the future of Computer Technology in america. Westport meets tech. Will you be sending up any more f16s . Did he volunteer for this assignment . Is this every boys dream assignment or worse nightmare . He has them a lot with our airline coverage. I think he was enthused to do it. He said it was really physical. The one thing you will get from adam, as he joins us this morning, is the physicality of what he did in going up in the f16. He does look a lot like tom cruise does, so i think that have a little bit to do with his selection. [laughter] thank you very much for that. Lets head to the middle east. Iran is one of the largest close markets and the could be opening closed markets and it could be opening for business. Thank you for coming in again. Thistock about the size of market