Manus you are welcome. It is the pulse. Were live from bloombergs European Headquarters. It is me, manus cranny. Keep an eye on cable. What youve got is a dullest is g what you got traders are pricing in over more than 80 probability of a rate cut in august. Anglo american down 6. 3 . Iron ore production false 15 . There cutting their copper production target. Management. Capital change at man group. A man he goes manny goes. Often pimco. Off to tim . Near changes with me. Nejra good day. Donald trump has told supporters he is going all the way after securing the nomination. The tycoons a son made the announcement at his home state of new york. Trump supporters are looking to get the convention back on track after an opening day rocked by questions over whether Melania Trump plagiarized her speech. The turkish lira is close is trading to an alltime low as the purge of the countrys institutions deepens concerns about the fallout from last weeks failed to. Appeared to visa central bank lowered its overnight lending rates by 25 basis points to 8. 75 yesterday. Pimco has named Emanuel Roman as its next chief executive. A plunge in assets at the firm. Roman has been ceo of man group, publicld largest traded heads fund hedge fund. N is restoring a return to irans economy minister whose ministry is at the forefront spoke to bloomberg. Right now, the groundwork for iranianbonds in various Debt Securities in International Markets exists. The situation will improve in the future. We have Something Like 45 billion worth of signed agreements with Different Countries for financing iranian projects. Nejra global news, 24 hours a day, powered by 2600 journalists in more than 120 countries. Find more stories on the bloomberg at top. Im nejra cehic. Manus a little bit of breaking news, Investors Holding e. On get theor a day vesture business is set for listing. They are going to list the business in september. Visit this and this is a part of a strategy that was rebuilt back this is a2014 part of a strategy that was revealed back in september 2014. Ford bernstein is a saying is saying this was a rerating which would significantly readjust the stock price. Growing 12 on the back of this. Ticks. P a couple of that is the latest breaking news. Lets talk about theresa may and her schedule. Brexit to britain people got the. Ew Prime Minister traveling she is going to meet Angela Merkel for the first time the first time after taking office under a week ago. The six will be high. Merkel the stakes will be high. Merkel says she will not until the u. K. Has triggered article 50. Thomasring in a morose this is part has entry. This is part pageantry. She is meeting merkel. This is about the two women eyeing one another. Cooks that is right. , that is right. Is best they can hope for establishing a good working relationship to take them through what is going to be a very tough negotiations in the coming years. Manus let me bring you into this conversation. You are joining the chorus that seems to doubt that sterling rebound. It seems assets have had a nice little reprieve. Stocks have had a reprieve. You dont buy into this necessarily. There is a wonderful line that i to be can only lift the pound so far. It is true so far we have had very sizable adjustment in sterling. It will largely be ongoing. You have the bank of england. I think this 80 probability over 25 basis point cut is a little low. The cut is a done deal. Itll probably get an announcement on some other front , probably in the funding for lending scheme. It is a story that we have been calling since we got the referendum result. It is the outflows that are going to wait on sterling. Over the past five years, we have had significant inflows, this is hot money. This can unwind, reverse in a matter of weeks and months. Thending on how long negotiations are going to take, i would expect we are likely to see an acceleration of outflows. Manus what would that do to the sterling . Vasileios pimco you have pimco being 120. We asked the question what if we see a reversal of the portfolio, back into pre2012 levels. That indicates 125. Manus a number of other set johnsonent on boris and john kerry at the podium talking about britains relationship with the United States of america. Its it it is interesting that theresa may makes her first trip to germany did this is about creating germany. That is about creating a platform. Their hands are tied although they are members of the eu. They can talk about trade deals with half the world or even more , but there is a lot of untangling to be done before any of that can go ahead. Manus lets see what that meeting brings. M a, great to have you back. Us, heliest jim knock stays with us. Stay with the pulse. 9 20, we are good to hear and breakdown the earnings including the numbers from microsoft and sap. 9 30, that is when we get the first hint of data and we get uks unappointed figures. How did it impact the jobs picture here. 9 50, we go live to cleveland, ohio. It is all about the soap opera. The republicans made it official last night. Donald trump will be their nominee for the u. S. President. This is bloomberg. Manus lets get you to the business flash. Nejra cehic is with me. Nejra sabmiller boss will meet this week. That is according to people familiar. Fund managers including ppi, davison kepner have complained for 77 billion pound offer is less attractive following the plunge in sterling. Sabmillers two biggest shareholders are getting a bigger deal than other and investors other investors. Wasthe quarter revenue 22. 6 billion after adjustments with Cloud Platform doubling its earnings. Ceo has been changing since the clout and Productivity Services field risepokemon go that saw nintendos market value rise in over a week, its shares slumped by over 4 in tokyo trade. They saw their biggest intraday fall in 26 years. The company is the Company Behind pokemon go decided to cancel todays launch and japan in japan. Theottliebs desk cuts will happen as early as october. That sb firm liquidates its hedge funds. And that as the firm liquidates its hedge funds. That is the Bloomberg Business flash. Manus lets talk about one of the most volatile currencies, the turkish lira. This is moodys when they upgraded the country. The 23rd. From vasileios gkionakis. He is with me now. , outflows, and credibility. You are quite bearish. Vasileios i am quite bearish. That is largely because it is not just the usual health story about you need flows to maintain that big of a current account deficit. It is also the fact that right now we have the consolidation of powers as far as. A gun is concerned is fares as far as erdogan is concerned. From that perspective, youve got to do much a perfect storm. Youve got inflows stopping or reversing. At the same time, you have the losing itsk credibility quite fast. ,anus the political situation warning shots coming from the United States in terms of what they dont want to see from a nato member. This is the biggest challenge overall is the politics that will dominate the flows. You saw net inflows until this time yesterday. That is what is going to drive this. Vasileios i think that is right. The question is, however, overall, you will have general quite Good Environment for emerging markets on the whole. The big question is why as a foreign investor you would like to put money in turkey . Largely because you have so much Political Uncertainty going on. I will highlight that central bank which is losing its credibility fast. Yesterday when i read the statement, there was no reference why these guys actually cut. You wouldve been excused to think they actually hiked. Manus lets talk about the em space. What i have done is w crs over five days. Bottom. Are all at the the imf has cut world growth. I am contrary here. Inaid the fed is in play 2016. That to me is a deckhand which me. Nt appeal to cap it up. Isileios the fact that oil around 50. That is the first point. The second thing is a lot of doom and gloom already in the price about the outlook. As far as the fed, i think as long as they move in line with our expectations which is one , i dont think this is going to be a serious challenge to the emerging market outlook. Manus lets talk about the the cracking article on the bloomberg. The bank of japan needs to end its lies. 2 inflation target, that is line number one. The reality is they need to take their desk taper their bond purchases, not expand. Where are you in this debate . Because abenomics many people say have failed, in which case why would you sell in the end . Vasileios where we are on the bank of japan, i think the helicopter money, the pure definition of helicopter money which lets clarify does not involve issuance of debt. If you go back to the definition of zero, this is not that. Definition of helicopter money is very low likelihood outcome. , either were going to have a pew fiscal stimulus. Or accompanied by an extension of the current Quantitative Easing Program which may run into some problems as far as the availability of gdp. What this means for yet for yen, things are going to be quite binary. It is going to be the big story over the next two or three months. If we dont get the helicopter money which i dont think we will. I think well glitzy dollar yen gravitating lower, below 100 and toward 95 by the end of the year. Yen is undervalued. It is not as undervalued as it was six or nine months ago. Still, the Structural Forces on two fronts, japan as well as the dollar, the dollar remains that plays out to correlation rates. Manus at 95, do you not invoke the wrath of intervention . Not. Eios i think i would not say that. First of all, as far as by theral intervention, bank of japan, i think it is highly unlikely. The yen around the 78, it moved to 120. What good did this do . Affects that are passing through the exchange rate, i think they are overblown. They are exaggerated. In the sense that if you want to keep on having fx and inflation from the exchange rate, you need to keep on having a constantly depreciating exchange rate. Manus that is not going to happen. Everybody is saying the backlash against negative rates. When the japanese go is there a number . U. S. Thing we need some kind of fiscal stimulus. I think we need some kind of fiscal stimulus. Vasileios it is an unprecedented event in the sense that we already have a lot of quantitative easing in the background it you dont know if it is reacting linearly are nonlinearly. Or nonlinearly. From that perspective, i think they need to go gradual. I am fully supporting the fact that they delayed quite significantly, because the previous one installed all of the progress that was made in japan. , threevasileios currencies we are going to be focused on. Cable, dollar lira and dollar yen. Always good to have you with this. Vasileios gkionakis, the head of fx. Up next, s p and software to hard cash or did the Company Beats how did you do . We spoke to the ceo. This is bloomberg. Manus sap ceo says brexit has not had an impact on their business so far. The Company Reported results that top analyst estimates. He spoke to bloomberg in the last hour. I have not seen big global multinationals at this stage say i change my Business Strategy because of brexit. As you know, we see some of this more nationalistic behavior in many different markets of the world which is why i am very happy we are in 193 countries and 25 industries to does a person just to diversify our portfolio and be relevant. To diversify our portfolio and be relevant. Manus great interview there with the ceo who is quite optimistic. He spoke about the m a opportunities. Caroline really buoyant. He is always ready of fugitive. Sieve. Ys pretty a few pretty slow first quarter. Worried about the impact of brexit but actually we are starting to see shares top. This is significant. We are seeing s p shares hoping the Technology Sector lead higher. If you dig into the gr our function, technology outstripping the rest. This is a company that is reorientating itself, getting into the cloud. Their sales up 5 , driven by their cloud subscription. That was up 41 overall. This is a company that is take on competitors, like salesforce and as for hannah. That is the suite they have been selling, adding 500 customers. They are talking upbeat about the cloud shift and opportunistic acquisitions that they might take. S ps cloud that is helping sap in particular. It is cloud that is helping ibm Beat Estimates yesterday. U. S. Japan not, we had 5 billion coming from sap. About 22 billion coming from microsoft. It is a juggernaut. The sales up 2 but it is cloud that is saying a doubling in revenue, 100 growth in the last quarter. Concern,ou one area of there is 1. 1 billion in the phones unit. Overall it is a thumbs up from under soft. Back to you. Manus caroline, thank you. Stay tuned to bloomberg. It is u. K. Unemployment day. That is next. This is bloomberg. Manus welcome back to the pulse live from bloombergs European Headquarters in london. By. Unemployment grew 176,000. Of estimate was for an add 73,000. This is in the three months running up to the end of june. There was one tiny week of brexit. The Unemployment Rate falls to 4. 9 . Earnings dip again. Weekly earnings when you strip out the bonuses, 2. 2 , lower than the previous reading. The headline number, the big headline number is that employment grew by 176,000. The market was expecting 73,000. In terms of cable, no immediate reaction. Breaking news. Lets bring in lets get your first word news. Nejra cehic is here with me. Nejra theresa may will make her first overseas trip today since becoming uk Prime Minister. Haveisit to europe will meetings with her german and french counterparts as she starts to pave the way for britain to leave the eu. After taking her first Prime Ministers questions in parliament, she will travel to berlin to meet Angela Merkel. Donald trump has told supporters hes going all the way after formally securing the president ial nomination. The tycoons son made the announcement as his home state of new york pushed him over the line. Trump supporters are looking to get the convention back on track after a day of questions over whether Melania Trump plagiarized her speech. Pimco has named a new chief executive. He will replace done this on who presided over a tumultuous time. Roman has been ceo of man group, the Largest Publicly Traded Hedge Fund manager since 2013. Iran is exploring a return to International Debt markets for the First Time Since 2002. Irans economy minister, at the forefront of securing access to the Global Financial system, spoke exclusively to bloomberg. Groundwork forhe issuing bonds in various iranian Debt Securities in International Markets exists and im certain the situation will also improve in the future. We have Something Like 45 billion worth of signed agreements with Different Countries for financing iranian projects. Nejra global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Im nejra cehic. Manus were going to get into markets. Britain is to relinquish it sixmonth European Commission presidency. This is coming in as a little bit of breaking news across the bloomberg terminal. This according to theresa may. I want to give you context on those unemployment numbers. Labor market continues to strengthen. Unemployment fell to 4. 9 , the lowest Unemployment Rate in the United Kingdom and the Third Quarter of 2005. The flip side is that wages, pay growth came in at 2. 3 , the market was looking for 2. 3 . It is a little bit of a mixed picture. None of this includes the reality of exit. Check on the pound. 1. 3119. We are taking it a little bit higher. Nejra we are indeed. Looking at european equities, we are seeing some optimism in these markets after the stoxx 0. 5 on yesterday, up europes equity benchmark. Weve had some data out of the u. K. Which you clearly outlined. It is a big day for corporate news. If we look and see how the different Industry Groups are performing, tech stocks leading the gains, up 2. 2 . Commodity producers leading the losses, down 1. 6 . There are more Industry Groups in the green and in the red. S ping at tech stocks, leading the gains. Shares have it their highest level this year, 4. 3 at the moment. This is after the Company Reported results that cant edalyst estimates that topp analyst estimates and closed her Software Deals despite political turmoil. European revenue growing strongly despite concerns over brexit. Software licenses and cloud revenue surpassed expectations. Good day for s. A. P. Not such a good day for anglo american. Weve seen it fall after it cut its fullyear copper target. This is the annual target for copper output after heavy snow at operations in chile and the shares have slumped the most in three weeks. This is actually the second best performer on the ftse 100 this year. Shares getting punished today. Yourly, i wanted to bring attention to the bloomberg dollar