Lets quickly check of the markets, global Stocks Holding near a oneyear high as we are seeing more and more rising oil prices, now above 45 a barrel. If you look at wti, you can see it around 45 currently. Its pointing to a resurgence in the emerging markets, and to a saudi stabilization. They keep on saying they want some price decrease, but there rhetoric is certainly filtering through to the markets. This is the big picture for the e markets. The yen lower after slow forecast, a lot of investors thinking the boj will have to do more. Lets get more of the markets with nejra cehic. Nejra the chinese yuan has suffered its sharpest drop in six weeks after there were concerns raised about Economic Growth in china. Figures showed new credit growth in july was the weakest in two years. And investment also we get, indicating that the reason stabilization may be faltering. Two terminals. At new yorks jfk airport were evacuated after initial reports of shots fired. The nypd tweeted that all terminals have now been searched and cleared, and that no shots were fired. The affected terminals are resuming operation. London properties are taking longer to sell this month despite a summer price cut, according to a property website. Homes in the capital are staying on the markets for five days longer than the month before the u. K. Voted to leave the eu. We speak to the director at 9 30 u. K. Time. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Im nejra cehic; this is bloomberg. Francine thank you. Japans First Quarter gdp missed estimates as the strong yen continues to weigh on exporters. 0. 2 comparedn at to an estimated 0. 7 . For more, we are joined out of tokyo by joe schneider, editor of the economics team. Great to have you. What is behind this loo sluggish growth . Two things primarily. One is the decline in Business Investment; there was a contraction in Business Investment in the period. That obviously is waiting on the overall number. Even though we saw an increase in private consumption, it was a very slight increase, which makes up more than 60 of the economy, so there is another big factor. Behind the Business Investment contraction, we are seeing the strong yen and some declines in stock prices, which is really reducing the appetite for companies to want to invest. Francine what does it mean for the Prime Minister and the bank of japan . Are we expecting more from kuroda . Well, i think theres pressure on both of them. Since this period ended, the Prime Minister has come up with a plan for more fiscal stimulus. There is a plan out there but some has said it is still not enough, and there may be thinking that there could be more to do on the fiscal side, but certainly there will be pressure on the monetary side. There will be very High Expectations for more stimulus at this upcoming meeting. Especially given the last month in july, that meeting really didnt seat. That this next meeting is going to have High Expectations; this time we really mean it. The expectations, as we get closer, especially with weak numbers, no clear driver for growth. The economists dont see what would change in the coming months. Francine thank you so much. Jodi schneider in japan. Lets get our guest for the first half of the program, peter sufferk. Peter, great to have you. The bank of japan the big hope that never happens . When you look at japan in particular, you can so clearly see the limits of monetary policy. One of the things that is plaguing japan, for ages really, is that Inflation Expectations are superlow. Even if you look at the jgb, which is low, if you have expectations even lower, it means you are going nowhere. Whatever the bank of japan is doing, Inflation Expectations are not going up, and they arent going to come down. Hopefully this is a trap europe will not fall into. It is difficult francine are you sure we wont . We will see. The good news is, even though our Inflation Expectations have come down, they are still relatively high compared to japan, which means we have relatively low real interest rates. If i may add, if you look at the front and rates, which are now going negative, we have very clear limits. E for thehe boj, sav more esoteric options being discussed, they come to the middle. Francine does that mean they shouldnt even try to do helicopter money because it wont work or because they put themselves in an uncomfortable position . There is a chance that japan might be going down that path, not that it is uncharted territory. But everything that has so far been tried and tested is done and hasnt succeeded. Francine what is the next frontier . We talk about these structural forms, about fixing the demographics. Is the only fix structural reform, or getting more immigrants in . The demographics typically take a very long time to fix. They should be making changes at some point but dont bank on it that it will change the fortunes of japan or any society in a short time. You heard it earlier, i think the next step is even more fiscal, and a fusion of fiscal and monetary, and japan is probably going to be a test case. Francine thank you so much. Peter schafflik. We will be talking a lot more about some of the european countries, next. Stay with other with the pulse. Britains exit could take until 2019; we will look ahead. Plus, as homes in london stay on the market for five days longer than in may, we talked to the director of the property website rightmove. And a supermarket best known for competitive pricing, but we will bring you this surprising family feud over extravagant spending. This is bloomberg. Francine lets get straight to the Bloomberg Business flash with nejra cehic. Nejra william hill has rejected an increased offer. The you proposal values the uks perest maker at 552 pence share. The proposal continues to substantially undervalue the business, and they are in no rush to engage. Shares in japanese tv maker sharp has continued to climb in tokyo after a purchase of the company a purchase of the stake in the company. Sharp shares have risen by around 1 3 in the past two days. An approvale has from shareholders to buy out his Property Unit for 4. 4 billion usd, according to people with knowledge of the matter. It clears the way for hong kongs biggest ever privatization deal, and could see him relocate the property developments, where companies are fetching higher valuations and in hong kong. And private equity firm kkr about making a play kkr is making a play for pepper pig. No final decision has been made. They have already rejected an offer from itv. And thats the Bloomberg Business flash. Francine thank you. Lets get more with peter schafflick. Levy bring you over to the terminal. Insurance pitting forward this. Wti above 45. They may freeze productions. Hedge funds have made their spend on the pound before u. K. Data, and it is doing the same for bearish bets. This is the futures price in blue and the long positions in white. Without getting too much into detail, if we have an oil price that is more robust than it was two weeks ago, are you confident thats a significant move for the Global Economy or is a nontechnical stuff like this . It is more than technical stuff like this, but we still have to differentiate where comes from. When we go back to years when oil collapsed, there were two reasons, one because supply was increasing and because demand was shrinking very fast. That was obviously bad for the Global Economy. Speculation now is that supply might be cut, or at least frozen. If that happens we only have one side of this demand supply imbalance, and a better thing for the Global Economy would to in driving prices up. Is, it is significant but wouldnt go so far as to say that its a signal that the World Economy francine overall, for the european economy, are you concerned about deflationary pressures . Yes, it is certainly still a problem. If you look at the state of the economy, we are doing okish at best. We have been saying this on many occasions. The european economy is not collapsing anymore, but it is growing at a very, very moderate pace, and unemployment is still very high, and wages arent going up. When you look across countries like the u. S. , wages arent surging there either. We have a lack of inflationary pressure. Francine and how does draghi deal with that . Look, he has done a lot already. I think the next step for the ecb will be and we have been saying this for a while he will be looking at options, how he can prolong what he is doing. I dont think he will be throwing the stuff and. As we talked about in japan, the negative interest rates, they can only take us so far. For him, how can i keep doing what i have been doing . That is a discussion of the design of qe and capital key changes, which i think will be coming. Francine peter, thank you so much. Chief european macro strategist that European Capital markets. Up next, u. K. Bond yields approach a record high. We ask if stocks are too cheap and bonds too expensive. This is bloomberg. Francine welcome back. Britains exit from the eu could be delayed until 2019 as the government sets up new departments. Thewhile, this week, publication of a host of data on how the u. K. Economy is doing in the seven weeks or so since a referendum. That includes updates on the state of the public finances. Is there any value left u. K. Bond market . Take a look at my chart of the hour; the spread between the yield on the ftse stocks and tenure gilts. As you can see it is nearing a record spread as investors push bond yields lower. Lets get more with peter schaffrick. Peter, great to have you. What do you make, when you look at the chart . Is it a break that story is that a brexit story . What you have is a generally low yield environment which attractivesome more and when the ecb publishes data, they have been buying dollars. Bank of england are brexit related stories because what drove it so particularly was the bank of england action and the reverse and what we had on tuesday that sense of market into the tailspin. They put out a report saying, we will deal with it in november. They could have made it a sharp fall, unless they think that we will still see more. I think the market is now making a very big story out of this. Onres obviously some full pension fund deficit, but at the heart of it, the fear that there are not enough bonds that will be sold it to the bank of england and the prices have to be ramped up, i think that is overdone. Im fairly confident that on tuesday it will look different francine better or worse . Im pretty sure it will look better on tuesday. We will have a very different situation. Look at all the other buckets we had. The bonds that we intend to the bank of england were quite a lot. Part of thethat reverse options that attracted the attention, because it failed technically. We will have to see, but i think that the gilt market is a little overdone. If i may add one for the comment, fo you were talking about the fiscal data later this week. One of the things he must not forget is that in contrast to , the u. K. Rea government is still very large and sizable. High imbalance francine one of the things we discussed this week is that they could sell longer maturities. That as simple as that, they say there is obviously appetite so i will just issue more . We will have to see about that. The u. K. Pmo has a very long track record of being close to the market for delivering a relatively balanced mission profile. Say,t expect them to lets tilt everything to ultralong. Lets just see what tuesday brings. Im fairly confident that the world will look a little less scary. Francine what are you looking for the u. K. To look like two years from now . There are negotiations that it could start in 2019, that the ministers arent even briefed on how they would start. Meantime the pound keeps on falling. If you look at the economics of it, the following the pound has happened. There is no doubt about it. Exports, it has brought in more tourists. Outlatest data came suggested that there are significantly more people coming in for a visit. That is clearly helping. But the heart of the question is what are the structural changes . Frankly, i dont know. We have debated this before, shortly after francine right, and we still dont know exactly how much investment will be pulled out. Well, we dont know what the structure is. The simple term is can the u. K. Still access the common market. If that is the case, the structure will be very different from if it cant. We have to see. It is crucial to see with these negotiations will bring. Francine lets say that negotiations are in 2019. In means we will have another two years of uncertainty stands in a very basic question, does the eucharist have access to the Single Market . Does that make it works for the microenvironment . Make it worse for the macro environment . Well, we lowered our gdp forecast. We are expecting zero growth. We dont have to wait until 2019 to see a final outcome of the negotiations. Pretty adamant that once negotiations start we will see the disruption. Francine how does the u. K. Compare with the eu . If you were to give them grades, the eu has a lot to lose. Certainly. One of the things that is very clear is that the u. K. , in terms of its flexibility and structure, it is much better positioned, particularly in some areas of the eu which are much more challenged. In this particular case it is less about absolute and more about direction. The eu is currently improving from a moderate base, and that is typically francine how much is that thanks to mario draghi, and how much thanks to a weaker nominal basis . I think theres a genuine improvement. Not in all places, but places like spain, which have clearly done structural reforms, they are benefiting quite significantly. Germany is doing relatively strong. But at some places in the euro area, there are doing really well. In france and italy are struggling, but that is more due to mario than what they have done on the home front. Francine peter, thank you so much. Peter schaffrick. These are your markets. This is probably one of the biggest stories of the day, oil. This is the picture for oil overall, 45 on wti. It is the one people are looking at, saudi saying more and more that they want something to stabilize the markets. It is unclear whether they mean a Production Cut or even a freeze, but that is how the markets are interpreting it. Look at that 101. 09. If it goes below 100, that is a technical level, and european stocks overall in europe will gain 0. 4 . A lot a focus on brexit in the macro economy. Up next, staying on the market for five days longer than in may. He will talk about the director of a property website. All of that and more, right here on bloomberg. Is rising to a record. 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, live from london, im Francine Lacqua. Lets get to the first word news with nejra cehic. Nejra according to estimates compiled by bloomberg, the bank of japan is on course to become the number one shareholder in 55 nikkei listed firms by the end of next year. The central bank is already a topfive owner of 81. This is expected after harry eagle kuroda almost doubled his annual etf buying target last month. The purchases are part of an Unprecedented Campaign to revitalize japans segment economy. The chinese yuan has suffered its sharpest drop in six weeks after Economic Data raised concerns about growth in china. Figures showed new credit growth in july was the weakest in two years and production and investment also weekend, indicating that the recent stabilization may be faltering. Airportnals and jfk were evacuated after initial reports that shots were fired. The new York City Police department tweeted that all terminals have now been searched and cleared and that no shots were fired. The affected terminals are not resuming operation. The uks exit from the European Union could be delayed until late 2019, according to the sunday times, which says new departments set up for the transition may not be ready to start negotiations as early as predicted. The also reported that national traded ministry are still recruiting staff, making it unlikely they will invoke article 50. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Im nejra cehic. This is bloomberg. Francine landed properties are theng longer to sell, dampening effect of the Holiday Season according to the latest data. 1. 2 s the u. K. Prices fell , in line with the last six years. The Housing Market analyst, great to have you. There is so much appetite for foreigners investing in london or for London Property buyers to understand whats going on with their has prices. First of all, should we panic . Not a panic. Seasonal slowdown. Obviously is that time of year, a lot of buyers with long holidays go away. A fall in demand. But also the timing of the referendum was a great. There was a slow down before, and it has run seamlessly into the summer holidays. We have a slow period of several months, where less buyer activity, where they tended to price more competitively. Francine i say should we panic, but is this good news for the firsttime buyer . Do you see prices overall marginally lower . You were talking about the summer, this is just compounded by britain uncertainty. The good news for firsttime buyers that is the top of what is falling m