Francine welcome to the pulse. Live from bloombergs European Headquarters or dime francine lacqua. Lets get to the markets in a second because we have some breaking ifo data out of germany. This is some german axis. German businesses, 108. 3. T is better than expected the Current Conditions are also better than expected. What they do is go around and talk to german businesses. They ask how confident are you about the future guy the future . Brexit, also just after so interesting as we start to pile on data that gives us a glimpse of what the european economy will look like. Germany Business Confidence, the ifo figure better than expected. We will speak to the ifo time ont at 10 15 u. K. Bloomberg surveillance. Ing up on the pulse is will be talking about the drinks maker buying grand marnier. The plans for that. Well be looking at consumption around the world. As promised, this is what we are seeing on the market. European stock hovering around a onemonth high after they recovered some of the losses since the cave voted to leave the u. K. Union the European Union. There is so much expectation. This is probably the understatement of the year. There is so much expectation on what governor kuroda will do at the near at the end of the week the pound. This get to bloomberg first word news with caroline hyde. Caroline welcome back, francine. Finance chiefs from the worlds biggest economies escalating concern about sentiment. A meeting in china, members of the g20 discussed renewed efforts to use this go Christine Lagarde said there was a consensus that more news to be done for shares to benefit from growth. Bruised 10omber has people at a Music Festival in germany. The attacker was a syrian refugee had been denied asylum. He was allowed to stand the country because of the danger of returning home. An 18yearold iranian german gunmen verizon is set to buy yahoo s core assets for 4. 8 billion. The announcement could become before trading begins today in new york. The deal is said to include yahoos real estate assets with some intellectual properties to be sold separately. Yahoo will continue to hold stakes in alibaba and yahoo japan. Uk Prime Minister theresa may to discuss preparations for leaving the European Union. Britains only land frontier with another immune country. It follows chips to scotland and wales at sea as she seeks a u. K. Wide approach to brexit. Global news, 24 hours a day, powered by 2600 journalists in more than 120 countries. Of course, you can find more stories on the bloomberg at top. I am caroline hyde. Francine welcome to what will be the busiest earnings weeks of the quarter. Alphabet, amazon are reporting. Europe, the themes are banks. We get an update from the troubled lenders, deutsche bank. Are things improving . Getting out a heavy earnings pack. Switzerlands reported a rise in firsthalfs profits. We spoke to the ceo in a bloomberg first word interview. , we wererth looking at low trading volumes. If there was good news related to brexit, it is that investors are back in the market trying to understand what to do. Activity levels have picked up across the board. Asia, europe, americans, we see clients being engaged, needing a lot of guidance. More to come friendly. More to come frankly. Us,cine here to join isabel. Great to have young program. We have a huge week ahead of us at Central Banks and a lot of earnings. How does that translate into your world. Isabelle you were right, it is a very busy period. When we step back and look at where the market is gone, i dont think anyone thought we would be in the market inflicted the postbrexit at 25, if i look at effects of volatility, it is due to compared to where it was. If a look at stock markets, they have retraced all of their losses and i dont think anyone expected it the ftse to be the best performer. Caroline francine why is that . Central banks and markets are mispricing risks because the Central Banks are there, or is it in relation to brexit . Isabelle that is a very good question. I think what is happening is you have investors sticking on piles of cash. Cash burger park it cash burns your pocket. Byhink it has been helped cbp and the lack of supply. Investors are starved for yields. Corporate are not issuing, so it is sustaining the markets. Our clients at the moment are asking what do you think the trigger point is going to be . We haveger point stress tests of banks at the end of the week. We know that Central Banks are going to be here and they are going to do their job to try and support the market. There is a bit of a wait and see and markets investors do not have a choice. They have to put money to work. On 12 moreitting of liquidity trying to make sure they are ready for outflows. This is not materialized. Francine are you concerned about some sort of asset bustle asset bubble . It seems crazy in certain instances that europe paid to borrow or paid to hold some of the Corporate Bonds and when you have the ecb sweeping up so much, are you in risk of a Inflection Point . Isabelle the point you raise is valid. 1 . Trades in yield below clearly, is cheap for corporate to borrow. I dont think if i please myself if i place myself in your shoes, it will change anytime soon because of the lack of supply. It is a great time for issuers to come out of the market. I think well see the market being supported supportive as it has been. If you look at that, i think that is going to carry on. The question is what is going to be the trigger point, because what i find were some is the market being it mere and thats being immune to everything that is happening in the world. A market being immune to everything that is happening in the world. It is a wait and see mode, probably exacerbated by lack of break. Ty and the summer in some ways, i would watch out for what is going to happen in september. I would expect hillary because if you look ahead, there is nothing that would stop uncertainty to come with all of the elections coming up. U. S. Election, and then you have german, french. Francine thank you so much. The managing director of ubs stays with us. We will be talking about liquidity and what the fed and the dollar can do. Brexit and backlash. G20 leaders hedging inclusiveness to counter the antiglobalization push back. The italian distiller buys up grand marnier. We speak to the ceo exclusively. The Democratic NationalConvention Kicks off in philadelphia. Another email customer sete. Well have plenty more on that. This is bloomberg. Welcome back. Lets get to the Bloomberg Business flash with caroline hyde. Caroline ericsson says Hans Bess Burke will step down as ceo. The move is effective immediately. A search for a new leader is completed. As much as 6 billion has been wiped off the market value for nintendo shares in japan. The impact from the world why hit pokemon go will be limited. Shares cannot fall more than 18 the correction comes after nintendos shares almost doubled since the games release. Buy yahoosset to core assets. The announcement could come before trading begins later today in new york. The deal is said to include yahoos real estate assets with some intellectual property to be sold separately good yahoo will continue to hold stakes and alibaba and yahoo japan. Ryanair has warned it may lower its profit forecast amid weakening travel demands following britains decision to exit the European Union. Ryanair says the uncertainty could lead to an 8 drop in fares. The net profit in the latest quarter increased 45 as growth upset declining fares. Uks bookmaker maybe facing a takeover. Confirmed theye are evaluating possible joint offer good offer. The offer could be worth about 3 billion pounds. Francine . Francine top of the agenda at the g20 meeting in china this weekend was taking on the globalization backlash. Finance heads of the worlds biggest economies outlined their growing concerns about a wave of antiglobalization sentiments. Chief among those was the brexit vote and jim yong kim warned that the decision was he outlined its impact on Global Growth. We have wanted to give good information, good news to people for a long time, but forcefully we have to keep having to downgrade. It is understandable. We thought the u. S. Was solid, the European Union, the eurozone seems to be getting better, even japan seemed to be doing a little bit better. Brexit was a big hit. Were still trying to understand exactly what the applications are. It looks like Global Growth will be disappointing again. Francine the World Bank President there. Isabel, when you look at g20, again, the emphasis we have been waiting for them for four years if not more. Isabelle absolutely. When you look at what is thatning and the life line central bank has put into the market to try and keep it contained, i dont think they are going to manage to do everything on their own. It clearly says that something needs to happen. There has been debate in the u. K. About what are we going to do . Our going to cut tax rates to make it very attractive. There is very theres a lot of debate around that. I dont think it can carry on without any more action. How do you do it in a corrugated faction in a coordinated fashion . Francine it seems unlikely that china would fit into that. Negative rates will go forever below zero . I think lower for longer is clearly going to happen. Bank of england was going to tighten rates. The fed was going to tighten rates. We had one rate hike which is so flat it was almost a case of you cannot not do it. They are going to be debating in the u. S. That i think the situation is slightly different. Are you going to keep rates too low and are you going to damage the economy . In europe, it is good to stay lower. In europe, it is going to stay longer. Francine i would put deutsche bank, the more you have central bank action, unless you have structural reform. The more difficult is it for the markets to price things right. Isabelle there is some logic to that. Central bank policy can carry on is inhis the problem europe it has been difficult for people to agree on fiscal policy. Now, you are going to add a layer of complexity, because with brexit, the u. K. Can do more stuff on its own to remain. The pressure not to want to play the devils advocate or to be a politician, if you look at what is been happening, they are trying to negotiate a deal where the major players, france, germany, holland, are under pressure with own electorate. That is going to be very tricky to get. We are going to see some tension and play. Having back to your point, are we going to see lower rates for longer . If we look at switzerland, we can learn some lessons. Caroline on how not to do francine on how not to do things . Isabelle negative rates up to 20 years. What we have seen for corporate issuers is the corporate spread has at some point investors said enough. You have one massive better out there which can carry on buying if you want to. If he wants to. If it were to be lower, you can see it in europe. Francine are we going to see a dollar rally this year . Isabelle i think the dollar is one to be stronger. It is the reason there is no reason the dollar isnt going to get sugar. The wait and see policy is to carry on because we have u. S. Elections. Now we have so much turmoil around, i think the wait and see is going to be more so one of the things to take into account. Francine isabel, thank you so much for joining us. Up next, the multibilliondollar funds but no elections. We bring you the turkish Prime Ministers solution to getting the country back on track after the failed coup. This is bloomberg. Francine welcome back. After turkeys failed coup , bloomberg crackdown has spoken to the Prime Minister. He told our editor that rating and is rating agencies were the rating agencys downgrade was premature. The coup attempt had economic damage that has incurred on the turkish economy. S p immediately decreased our rating and i think that was not an ethical stand. It was taking benefit of the situation. We are a nation which is overcome and big coup attempt. We have struggled to keep the moxie running and these such agencies should not be rushing into situations. They should not be deciding immediately. We would have to expect them to wait and then decide on this measure. This was something that was settling for us. The turkish economy did not deserve this if you look at the indicators. When you look at european countries, the debt is considerably higher than our debt. When we look at the Gross National income and take a portion with debt, the death of turkey is around 30 to 32 . This is 116 in the European Union and in other countries it is ready to percent. When we look at the creek. , there is almost at the criteria, theres almost no country in the European Union that is met this criteria, but since the 2009 financial crisis, turkey has a very smooth performance. The Banking Sector is very strong. Is this istio almost double the 8 . Taking into account all of these factors, what criteria do you have to reduce the ranking, reduce the rate reduce the credit of turkey. This does not base itself on any criteria. It is nine the article and political decision. This is an ideology go ideological and political decision. There has been damaged but im saying this to give you an idea the dimensions of the damage. When we had a crisis with the Russian Federation about the russian aircraft, there was some movement in our economic indicators. The movement and the coup attempt have been similar to that. It has not been a devastating effect on the turkish economy, affecting all economic values. This was not such a change. There was a miner decrease in the stock exchange. There was a simple fluctuation to the Exchange Rate and the interest rates, theres been some movement but these are all temporary. I do believe in the coming days, they will go back to their normal levels. Francine that was the turkish Prime Minister. Well have plenty more of that interview. Which have spread concerns that the president is now taking advantage of the upheaval to neutralize his opponents. The Prime Minister saying that purge seems to be nearing an end. This is a picture for the markets in terms of what we are seeing in european stocks. This is the one thing we have been trying to figure out. It has been hovering around the onemonth high come after last week. They cover they recovered a lot of the losses sent losses since the u. K. Voted to leave the European Union. This is the week of Central Banks because after pumping money into the Global Fund Managers have become underweight shares in europe. They want to know what the boj will do and the fed will do. The Dollar Strength we are seeing weighing on Precious Metals and investors looking toward a lot of the Central Banks meetings. We are expecting some Inflation Forecasts for the u. K. Ceo up next, papa rate his recent grand marnier acquisition. Changing paste. Well be talking about cocktails changing pace, will be talking about cocktails. This is bloomberg. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Francine welcome to the pulse. Lets get to the Bloomberg Business flash. German Business Confidence deteriorated less than expected. It was stood the initial shock of britains vote to leave the eu. A Saudi Company involved in the biggest default is close to ending its. They signed a deal with committee representatives. The company guarantees creditors will recover 40 of claims. A suicide bomber has wounded at least 12 people in a Music Festival in germany. The explosion follows another attack on friday night, in which an 18yearold german gunmen killed nine people. You can find more stories on the bloomberg. Francine thank you. European markets higher this morning. Lets head to mark barton for your check. Index, alltoxx 600 19 arising. That is the best winning run since may 27. It is 1. 6 below 11. This is a lovely chart. Global investors are fleeing from european shares despite the is relative to european Government Debt and u. S. Equities. The sovereignis bond index yield versus the euro stocks 50 yield. 3. 7 percentage points. The white line is relative to the s p 500. What a wonderful chart. Lots of Corporate News to tell you about. Itsair warning it may lower profit forecast amid weakening travel demands stemming from brexit. There are risks. The forecastieved is steady, sending shares up 5. 6 . Executive isf stepping down after 6. 5 years at the helm of the Telecommunications Equipment maker. The shares are up by 4. 2 . Francine thank you. Lets turn to Beverage Business and a spirits business added o