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tv   On the Move  Bloomberg  August 14, 2015 3:00am-4:01am EDT

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the people's bank of china strengthens its reference right. crude crash. does the global supply glut continue? the beauty i drops to a 6 --- wti drops to a six-year low. a lot to discuss ahead of the open. the dax futures higher. ftse futures higher as well. could we get higher in the european open? let's get straight to caroline hyde. caroline: greece voting for that third bailout package. we are seeing the open basically flat in france. ftse up 0.1%. the interesting figures will be the devil in the detail when it comes to greece. how many people did alexis tsipras manage to bring with him from his own syriza party and the opposition? how much can they woo germany to show they have the guts, the coverage, and the determination
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to impose the reforms being demanded by germany at the moment? that 85 billion euros of bailout figures, they want to see change happening in greece. guess wasat one of my telling me earlier. ftse 100 opens flat. dax flat as well. we are waiting and seeing how greece plays out. they gather to discuss the bailout. and what happens in china? calm after the storm. for the first time, we see the reference rate in china higher. we start to see stocks, shanghai currently up 0.3%. we see moves to start to see the market taking action, or china stepping in, saying the market will be based on methodology now. the market will help dictate the foreign currency. it will intervene to help
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prevent excessive swings. have bigtly ramifications in malaysia. malaysia has political issues of its own. we see it down from 1.7%. this is a key country to be keeping an eye on. then on the move in the ringgit. let's look at the foreign currency. this is the story of the week, the renminbi losing 3% against the dollar. what about the effect on other countries? what about the strength of the dollar against other emerging market currencies? malaysian ringgit losing 4% of its value. this is the biggest drop we've seen since 1998. the reasoning behind this is, malaysia has its own political crisis, concerns about its own state fund. there's also concerns about oil. this is a big oil exporter. we are off by 0.4%.
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this is a continued concern about the supply glut hating oil manufacturers across the board. we will keep an eye on all these asset classes. i also want to give you some of the earnings you should be looking at. we've had some earnings out. barclays is the story in terms of settlement. $2 billion worth. u.s. ng a case in the are there more to come? barclays slightly higher. bauer, up 0.3%. porsche up 1.8%. the board seems to be cleared of being taken in terms of charges of trying to buy vw back in 2008. they finally got off the hook, it would seem. jonathan: thank you very much. stocks in london pretty much unchanged as is the dax in
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frankfurt, germany. all eyes this morning on gdp day in europe. second-quarter figures for the euro area are released at 10:00 a.m. u.k. time. the french economy stagnated. the german economy missed forecasts, coming in at 0.4%. for more, let's bring in the bloomberg team. first to you, greg. big mess on the french gdp figure. does this mean the government will miss their growth target as well? >> they probably won't. the target is pretty low. it is only 1% for the year. look at what happened in the first quarter. the french economy grew 0.7%. it was revised upwards today at the same time that they said it was flat in the second quarter. if you take suffers half of the year, the french economy grew the same as germany's. there were some effects from stock building in the quarter that also explained the flat
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numbers. it is not quite as bad as it looks. however, that's not to say things are rosy. there was a pretty serious drop in the growth of private consumption. private consumption has kept the french economy afloat the past two years. investment remains pretty stagnant. 0.4% gdp growth quarter on quarter in the second quarter. comparatively, it is pretty decent. some of the big countries in the world, nothing at all. what is holding germany back? a small miss for gdp. the drag was investment as it happens, particularly construction investment. the surprising thing i think is that the german economy isn't growing faster than it is given
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its record low unemployment, record low borrowing costs, weak euro, cheap oil, which will help its manufacturers. reforms thatat the germany put through a decade ago are not providing the boost they would have done in normal circumstances. the economy should have been on steroids at this point. bit of a disappointment. it will make ecb policymakers look and go, mmm, we have to watch this closely. jonathan: i still don't know what to say about greek gdp. greg, the measures the french government has taken to boost growth, we are getting too used to saying the french economy stagnated in the previous quarter. what can they do now? >> probably not a huge amount. they are hoping some measures put through over the past year or so are going to be doing
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something. cut ands a payroll tax a series of measures that went through. taken together, they have any effect. we are seeing things on city openings, a bit of changes also in how companies negotiate their labor contracts. think they are hoping there will be some feedthrough from these reform measures. i wouldn't count on a huge amount next year. france has already fallen into an electoral season. the elections aren't until 2017 but it is on everyone's mind now. every newspaper every day has something about the 2017 elections. i think the country may be heading into that pre-electoral phase when no one wants to rock the boat. jonathan: paul, the headwinds outside of europe, talking about china, do you think they are
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bigger than those inside the eurozone for germany? data we gote bit of out of the german gdp report was that exports were the main driver of growth. traditionally, it has been private spending. that is on one hand looking like a good sign. on the other, if things do maybe even that factor will fade away. we could see german growth slow quite a lot. something to look at. volatility in china is a concern. greece is a concern. they want to see the u.s. sustain its pickup in pace. jonathan: yes they do. thank you very much for joining us this morning. for more on the gdp numbers coming in this morning and the eurozone gdp number, we are joined now by the chief investment officer at rathbone, where he helps oversee about 29 billion pounds in acids.
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-- in assets. we are also joined by peter. great to have you with us. 0.4% growth is the estimate. unless we get a decent upside surprise from italy, are we going to get a disappointment? >> it may be slightly lower, but i think markets were expecting 1.1%, to be year on year 1.2%. i don't think it is going to move a lot away from that. there is fairly slow growth across europe. your commentator made the point. the ecb needs to be on watch. peter, we talked about the german gdp numbers and exports. across the eurozone, the weak euro not helping trading the way you may have thought it would. >> it is friday and it is pretty gloomy what i'm hearing here. frankly speaking, i don't share all that gloom.
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for the german economy, it is not that bad after all. one of the things we've been saying for years is, the german consumer needs to consume. if you look at the breakdown, the german consumer starts to consume, which is not a bad thing. do we want to have 3%, 4% numbers? of course we do. but let's be realistic. to your point, i think it is crucial what you are saying. export contribution is what we are looking for. ,e've seen that to some degree but probably not as much as we would like to. as the economy starts picking up, usually what you have is more imports going again, then it becomes much more difficult to drive the external balance. we are going in the right direction. jonathan: julian, peter is getting excited. let's be fair to peter. he wants to be a happy man. credit growth has improved.
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do you expect the credit growth improvements in the eurozone to continue? >> yes, i do. i share peter's view that the real driver for europe has got to be the consumer and the german consumer is beginning to consume. if we get the french consumer to consume, then we are off to the races. jonathan: back to the world of rates, credit, sovereign debt. i don't see your optimism in the curve. why not? crucialre raising a point. if you want to get me worry, look at how the market currently prices inflation or inflation expectations. one of the things that ecb want to do is drive the inflation expectations upward. to some degree, they succeeded. the beginning of the year, around 150. we dropped down about 50%. that is one of the worries. it might well be that the real
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growth numbers are staying ok. if we don't manage to at least get some kind of inflation expectations back in the market, i'm afraid yields will stay where they are. jonathan: is that of you you share, julian? >> yes. withinon is the concern all economies, europe, states, all developed economies. julian, stayer and with us. we will be talking about china. china pledges stability. the pboc raising its reference rate for the first time after a few drastic cuts. greece approves the bailout. parliament votes yes the reforms but the eu voices serious concerns about debt sustainability. and, labor's work ahead. we will be talking about that
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later. in the meantime, 12 minutes into the session, ftse 100 pretty much unchanged. good morning. ♪
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jonathan: good morning and welcome back. let's get you up to speed with bloomberg's top stories. greek lawmakers have approved legislation to unlock 85 billion euros of aid. the parliamentary action paves
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the way for eurozone finance ministers to come to a political agreement on the rescue patches. it is gdp day in europe and both germany and france missed economist estimates. german growth came in at 0.4% and french growth was stagnant. at 9:00 italian figures a.m. u.k. time . five banks have reached a settlement with u.s. investors over claims they conspired to rig global currency markets. hsbc, barclays, bnp paribas, and rbs. the settlement brings the total accord to more than $2 billion across nine firms. yuan's three-day slide came to a halt today as the people's bank of china raised its reference rate. it has been a controversial issue. here's what our guests have been saying. >> these crises are coming one right after the other.
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they are too close for beijing to control. >> china says, we are going to weaken the currency of it. going forward, the markets have a bigger swing. this week was a step closer to being accepted by the imf. perhaps what we should expect on a going forward basis in terms of growth may not be as optimistic as some people thought. admitting theyy have a growth problem. that may be a band-aid getting ripped off a little bit, but in reality, this is just acknowledge in what we've already known. jonathan: the pboc has pledged to curb volatility after those swings. while some markets have calmed, others are still suffering the consequences. enda curran joins us from hong kong. elliott kotkin has the market reaction as well.
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the yuan slide has halted. is this to show they have moved the reference rate in the other direction? some people talking about whether this is over. is it over? wouldn't like to call it just yet, but it stands to what they told us yesterday. their statement made the point, don't necessarily expect an open-ended depreciation here. it is part of that move toward the reserve currency status that we all know about. it hasn't put away the other side of the debate, the suspicion that the timing of this came as chinese exports slide. it is a competitive devaluation that will help them. action will speak louder than words. jonathan: and the debate in the
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regional currencies is still raging on. elliott kotkin, give us a look at how this move has echoed around the region. i'm looking at the malaysian ringgit getting weaker. the malaysian ringgit is probably the currency hardest hit. it is asia's worst-performing currency. it has lost about 4% of its value against u.s. dollar. for the year, it is down 16%. it is clear that the china effect has exacerbated what was already a worrying trend for the malaysian currency. declining oileen prices and political scandal impacting investors' confidence in malaysia. the declines we saw today were most acute because of comments from the malaysian central bank governor, talking about the need to rebuild foreign-currency reserves. that would suggest either they are running out of money are running out of the will to keep
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trying to prop up the ringgit. you see theda, regional impact and white clearly there's a big difference between stimulating an economy by cutting rates and stimulating it by cutting the fx rate. ultimately, a stronger china is what is best for the region. do you think the depreciation will move the dial as far as spurring growth is concerned? that is one interpretation of it. theyina's exports kickoff, will soak in the intermediate goods around asia. korea's biggest export market is china. , that works on paper, but we are not there yet. depreciation in china is pretty modest. it is not just foreign-exchange hurting exports. it is weak external demand. we currently want to solve that.
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is other side of the coin that the weaker currency in china could trigger regional neighbors to want to drive their currency down. it could be a net positive for those exporters. in the near term, could be a lot of volatility as well. jonathan: very true. thank you for joining us. still with us is julian and peter, head of european rates and economic research at rbc capital markets. devaluation,titive they've encouraged this in this market overnight. would that be your takeaway as well? >> yes, but referring to the level of devaluation, we've barely touched the surface. the vociferous that's with which they denied it would be the endgame.
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in reality, i think there's more to come. the problem with competitive devaluation, we saw it in the 1990's. the race to the bottom is not good for any economy. jonathan: the fallout, i keep hearing these numbers, 1997, 1998. how many conversations have you had about 1997, 1998, and the consequences? >> quite a few. we have lots of people drawing that comparison. it was mainly the sovereigns who suffered. the discussion quickly turns around to what does it mean for us? when i look at the area that we look at as europe, the near-term impact probably is not that big. about 25% of the overall european trade floors that go into the european
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market. crisis in a proper > these countries emerging, then 25% is a lot. more importantly, we have second and third round impacts that might effect us. the short-term impact is probably overestimated. the long-term impact is underestimated. jonathan: the losers so easy to see. the winners less so. have you found any winners? >> indeed we have. those companies that are sourcing in china are a winner, particularly with the stronger currency. that would be the clothing industry. halford', you could be looking at cheaper bikes for your holiday. elsewhere, within the aerospace industry, that could
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be helpful as well. jonathan: the deflation trade, we touched on it in the first conversation. i guess a two-part question. the move over the last week, does it move the dial as far as the deflation trade is concerned? and when you look at crude at $42 a barrel, are we back in that q1 trade again? >> can i take a step back? what we just heard from julian, there are clearly winners in this. arope generally speaking is commodity and energy importer. the fall in crude at the end of the day is lowering our production cost. that is a win. we have to balance that out. why is it falling in the first place? if that is due to significant slowdown in other parts of the world, that is not good for us. driving it back to the inflation, it is not necessarily the fall in commodity prices causing the deflationary
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problem. maybe influence our inflation rate 1, 2 years down the road, but not 5, 10 years down the road. if you look at the ecb's favorite measure, the five-year inflation rate, that is dropping like a rock. the implication that we can draw from the fall in the commodity prices rather than commodity price fall per se. jonathan: and the german 20-year, does that stay capped at around 1%? >> i would rather save a short end is going to be capped. when you look further up the road, i think it depends a lot on whether we can get inflation going. if we are in a deflation trap, the 20-year rate isn't going to move either. if that is not the case, then rates might be too low. jonathan: julian, deflation
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trap, are we in one? >> i don't think we are. as long as we can be reasonably optimistic about growth out of the state, and we see a slow recovery in europe, it is not deflationary. we could be in a low inflationary environment for some time. jonathan: peter cheering us all up this morning. big thanks to peter and julian. thank you very much. still to come, greek lawmakers approved the third bailout package but there are still hurdles to overcome. we will break down the latest from greece. i will check out the equity market for you quickly. the ftse 100 up 0.1%. the dax higher by 0.3%. still down about 4% this week. ♪
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♪ ♪ ♪ get excited for the 1989 world tour
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with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. jonathan: good morning and welcome back to bloomberg tv. -- let'sean equities get you up to speed on what stocks are trading. the ftse 100 just in the green. the dax up zero point 3%. -- 0.3%. quicklyp the board very to the fx market. a stable yuan. the people's bank of china doing the opposite of what they've done the previous few days, strengthening the reference rate. pretty much unchanged on the day. keep an eye on dollar-try. the turkish lira getting
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battered. against thep 0.5% turkish lira this morning. wti, $42 a barrel, heading for a seventh straight week of losses. let's get to the situation in greece now. a tally shows greek lawmakers approved a third bailout package. this is only the first hurdle the new agreement has to face. it needs to go a head of germany. tony joins us now from berlin with more. can you give us the latest? tony: after this vote, which is quite a victory for greek prime minister alexis tsipras, the next step is brussels. that's where the focus will shift in a couple hours. euro area finance ministers are going to meet there and the idea is to give political backing to this bailout deal.
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there's still a couple or possibly quite a few open questions that will have to be dealt with. germany has been leading the charge in putting down markers on what still needs to be resolved. jonathan: as far as germany is concerned, what are the remaining obstacles and how will we dovetail the imf into this discussion as well? tony: that has been the big question around berlin all of this week. how do you keep or get the imf on board in this new bailout agreement. it has gone through various iterations. we've heard several times from german officials, there was a checklist the german finance ministry leaked, which also made that one of the important points. it all goes with this issue of debt sustainability. can we expect greece to repay its debt? that debt sustainability is required for the imf to be on
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board. and how to square that circle is going to be possibly the crucial issue in that eurogroup meeting later today. jonathan: if we wanted a small greek timeline, august 20 is a date we need to look at. the other deadlines, the political votes, which other parliaments does this need to go through now? tony: we've heard from the finnish parliament which has a say in it. they are ready to go. there is also supposed to be a vote in the spanish parliament i believe, and certainly one in germany. that may happen as early as tuesday. we reported that yesterday. and of course there's been a lot of dissent recently in chancellor angela merkel's caucus because they just feel that these german lawmakers for this streak of german lawmakers
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feels they are being railroaded into something that is an unpredictable commitment. two 86talking about of billion euros over three years. jonathan: tony, thank you for breaking that down for us. just to recap, in the last hour, greek lawmakers have approved a third bailout package. then we get the new news. the greek government is to request a confidence vote after august 20. that is when they have to repay that huge chunk of change to the ecb. the future of syriza in doubt. clearly it is all coming to a head. the situation in greece, another situation we need to discuss is turkey. it looks set for its second general election of the year after coalition talks collapsed. the turkish lira tumbling to a record low, then another record low. this 11 to watch in the fx market. elliott kotkin has been in
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turkey for the last election. will you be going to turkey for another election soon? elliott: i'm not packing my bags yet. ordinarily speaking, it takes another three months for an election to happen. of course, all of this uncertainty is unnerving investors further. the lira touching another record low. i don't know how many times it has hit a record low this year. this won't be the last. some analysts recommend it could go all the way down to three against the dollar. you've got this uncertainty regarding the current situation. if you have new elections, why should the result be any different? open in polls suggest the ruling party would have the same outcome. it would win the election but fall short of getting a majority to govern on its own.
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the main opposition would come adpnd and the nhp and bringing up the pack in third and fourth place. then they would have more coalition negotiations. it does make one wonder. will a newence election make? is it just dragging on the current political instability further? jonathan: elliott kotkin, thank you very much. stay with "on the move." the labor leadership contest begins. be back after this short break. ♪
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jonathan: good morning and welcome back to bloomberg tv. the hour.minutes past let's get you up to speed. greek lawmakers have approved legislation required to unlock about 85 billion euros of aid. the action paves the way for eurozone finance investors to come to a political agreement. finance ministers are meeting today in brussels. it is gdp day in europe. germany and france missed economist forecasts. french growth was completely stagnant. eurozone gdp just an hour later. five banks have reached a settlement with u.s. investors
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over claims they conspired to rig global currency markets. settlement now brings the total currency rigging accord to more than $2 billion across nine firms. ballot papers are being mailed out to supporters of the you k's labour party today for a leadership contest that will determine the future of the party and help shape the outcome of the 2020 general elections. >> i think labor has to have an alternative. there's got to be a credible alternative. otherwise, no real alternative at all. we are leaving people behind. about campaign is democracy. it is about people. it is about people joining in and being excited by this whole change in the labour party. we don't do abuse.
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never have, never will. a highave got to become skill, high wage economy. that means jobs in technology. it means more people becoming engineers. it means really leading the world in clean, green energy jobs. that is where britain should be in the future. not going back to the past. let's focus on the future. out'm sending a manifesto today that is a radical vision for the future of our party. big policies to address future challenges. i'm responding to the call from the party for something bigger, something bolder. jonathan: everyone wants to be radical these days. let's bring in bloomberg reporter svenja o'donnell. how much does the labor leadership matter? sevnja: we are talking about the
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outcome of the next election. this leadership contest matters. we are talking about the main opposition party. it is the question of where does labor go from here? we saw miliband lose very badly in may. this is giving rise to big weston's about what direction labor needs to go in. is it a return to the socialist values or can new labor have a chance to survive? jonathan: jeremy arvin, a lot of headlines in the u.k. about this gentleman. some people who may not have heard who this guy is, and a lot of people in the u.k. maybe not hearing who this guy is, why is he doing so well? why is everyone so shocked? svenja: he is your anti-politician. he doesn't do suits. he kind of speaks from the heart. he is an old-fashioned
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campaigner. he is almost a throwback from the 1970's. the reason why he's been doing so well among some labor voters is because he's going back to what he calls real issues, real policies. i think a lot of people within the labour party feel the party has lost its way. this is not only a protest vote, but a call of we need to return to what the labour party should be about. jonathan: there's some that would argue that the government right now are rubbing their hands with the very prospect that the labour party abandons the center ground. is it all a plus plus for the conservative government? svenja: it couldn't be bter for them. not everyone is behind corbyn. this could be disastrous for infighting within the party.
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both david cameron and george osborne are rubbing their hands with glee. jonathan: svenja o'donnell, thank you for breaking that down for us. staying in the u.k., the british chamber of commerce released a report stating that steel shortages are undermining growth. joining us now is the director general of the british chambers of commerce. corbyn,note on mr. some of the policies, re-nationalization of the railway, would you be expecting to hear this from the labour party? >> we don't comment on people or parties. we comment on policies and actions. wass not clear if corbyn elected what his policies are. clearly, if we are going to have infrastructure development and private sector funds, there is uncertainty about the future.
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one of the issues is how do we keep the lights on and have not unreasonable levels of cost. actually working out how we get enough energy at a low cost is one of the big challenges. i'm a private utility firm and i'm to invest in infrastructure, i don't want to hear the words renationalization if you want me to spend. why, whenever we talk about infrastructure, does the political conversation lurch to the left all the time? >> infrastructure is hugely important to the u.k. economy whatever your political complexion is. that is one of the things we've been banging on about for a long time. good infrastructure is essential for the economy. it has a multiplier effect on growth. dealing with the infrastructure problems is a big priority. no government has done very well. this government has not yet
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started to really change things. to developf we want infrastructure, someone needs to do it. i'm looking at your recent survey. two thirds of exporters struggling to recruit skilled staff. >> it is a very complex picture. reflects the challenges of the economy as a whole. infrastructure is one of the issues why exports aren't doing well. having competitive support on the ground for exporters is another. one of the surprising things is skills. we are in the most difficult situation on two fronts. the education system has failed us. we still have nearly a million under 25's unemployed because they haven't got the skills we need, which is a national tragedy. the second thing is the whole
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migration. we have a cap, artificial cap, on migration from outside the eu, which means they can't get the skills they need from outside the eu, but from within the eu, there is no control at all for who comes in. we have a downward pressure on have aon wages, and we lack of skills generally for businesses to be able to perform well. jonathan: we have to cover both sides of the debate. if you leave the eu, it is hard to get work. it is difficult for some of these companies. there's another side to this argument that says that is what it is all about. is that a big positive if we left the eu for some of these companies? >> the key thing is being able to choose the skilled workers we need to grow and drive the economy. that is the big issue. we can't choose the skills from
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outside the eu and from within the eu, we can't choose at all. we've got this problem. the government is beginning to realize that in terms of renegotiating our position, that having any break is going to be an absolute nonstarter. policies that has have been causing businesses to pay more for skilled workers from outside the eu to restrict skilled workers from coming in is a bit of desperation. almost analogous to ed miliband's linking skills to taking on apprenticeships. jonathan: so you do comment on the politics sometimes. if we talk about financing, i go back to your survey. firms increasingly confident the profitability will rise. why are they struggling to get financing? >> this is a longtime structural
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failure in financing. it has been with us for a very long time. it was called the melon gap in the 1930's. nonequity finance is not available for businesses in the u.k. in the way it is in countries like the united states, canada, and so on. that is principally because they have state backed business banks or similar. they are tackling different ways, but they all have a system by which nonequity capital can be provided to fast-growing or emerging businesses that need working capital to export from a state backed organization. commercial banks can't afford to take the risk of funding those sorts of businesses. we don't have that in the u.k. it is a major gap in the u.k. financing system. it is something that we really need to deal with. we did set up a business bank in the u.k.
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it is very small scale it isn't able to reach out. the germans put 60 billion euros into their economy in one year alone. jonathan: this is about the supply of credit, not the price of credit. the price of credit has dominated the debate over the last couple months. you and i spoke last time and i promised we would get the opportunity to talk about firms that are still in business because financing is so cheap. do you lend much weight to that argument? >> there will be businesses in business that ought not to be. i think it is a bit of a red herring. the businesses i see around the country, the ones we survey, tell us they are able to grow. they've kept their work or's is together -- workforces together through the recession. they are ready to go but haven't got the capital. we have businesses who are turning down orders from
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overseas because they are afraid they will go bust. it is always in the upturn order that businesses go bust. that is the sort of thing that happens to businesses in an upturn. we need to have this access to finance. be able toneed to export and expand and keep the energy of the growth curve going. jonathan: john, thank you very much for joining us. tv, right bloomberg back to the markets. china has dominated the conversation all week. we will wrap it up and tell you what you need to watch in the trading day ahead. ♪
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jonathan: good morning and welcome back. let's wrap up the week with some charts. the people's bank of china shock to the market by slashing its reference rate for the yuan. sending the currency to its biggest loss against the dollar in two decades. the move has impacted stocks across the world. feel have been hit harder than the minors. mining stocks have been crushed. that adds to an already brutal year for the worst-performing stacked or on the stoxx 600. crude oil has dropped to a six-year low. opec reported this week that output climbed to the highest
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level in more than three years. it is the biggest losing streak since january. let's wrap it all up. look ahead to what is coming up with manus cranny. what are you looking at? i'm looking at equity markets, a tiny rebound, the malaysian ringgit getting slammed. manus: i liked the chart you had on the yuan. it puts in perspective. i wonder about all the commentators that have said don't worry about it. it is a radical overhaul in terms of what you want to do with your currency. jonathan: it is historic. manus: it is historic. we got andrew sheets coming in from morgan stanley. we've got the piece out this morning that you can pick up written by sonia -- by svenja o'donnell. this is a former trader who runs
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a site who runs the -- who predicted the tories would be runaway leadership in the election. yn maysaying that corb not be the shoe in he thinks. join us for that. got periscope. is it toast? that is the question. jonathan: manus cranny and francine lacqua coming up after the break. i will bring you this data as well. italian gdp at the top of the hour. then, at 10:00 u.k. time, eurozone gdp. we will get u.s. industrial production data as well. that is it from me. ♪
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francine: vote for a third bailout package. will request a confidence vote. anchor: growth in france stagnates. germany expands. rancine: growing 0.2%. five banks agree to settle u.s. awsuits. welcome to "the pulse" live from bloomberg's european headquarters here in london. i'm francine lacqua. nine i'm manra


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