is europe willing to call his bluff? coming up, battle of the avengers, a militant group that's creating havoc in nigeria's oil-producing region. they want autonomy. the government is warning of an eminent showdown. whatever happened to the berlin wall? you might want to ask the garbage collector. tonight how an icon of the cold war ended up on the trash pile of history. >> we begin with the turkish threat. erdogan gave an ultimatum. either allow turkey citizens visa-free travel to the european union or you are theally start holding back refugees who want to enter the e.u. a new migrant crisis in the making. here's more from berlin. >> many german turks don't understand the uproar over this news. ankara threatens to terminate the refugee deal the turkish government is not threatening anyone. it's about turkish democracy. many here say turkey ought to be treat like other european countries. ankara's agreement allows for the return of migrants denied asylum in europe. it can be canceled if turkey's request for visa free e.

then on to europe. isis has been directing and coordinating and preparing attacks in europe since 2013. the recent attacks in brussels and paris have made this painfully clear. these are most likely still -- there are most likely various isis cells present in europe who may attempt to carry out attacks in the near future. broad scale attacks in europe smile chyna also -- by al qaeda also continue to exist. lnoeone actors pose a threat. the recent attacks in france, belgium, and germany. the current efforts by the anti-isis coalition have seen an increase in people traveling to syria. we have increased attention for people returning from syria back to the netherlands and also back to europe. they are questioned upon returning to the netherlands, and if there's a suspicion of terrorist activities, he or she will be put into custody. we monitor every returnee closely. there is an influx of so-called -- they are using refugee roots to get into europe. we know their isis operatives active in europe. they too

when we talk about europe, we are talking about europe ex-u.k. the dollar looks to be stabilizing at the higher end of the strengthening range. from the fed perspective now, if i can go back to vonnie's points, a lot of the heavy lifting is being done in the exchange rate, as well is what is happening with central banks globally. i do not know if the fed will find itself in a hurry. chief market, analyst at russell. >> up next, trump campaign manager paul manafort is resigning. what it means for his presidential bid. this is bloomberg. ♪ nejra: live from london and new york, i am they were che pitch. vonnie: i am vonnie quinn. this is "bloomberg markets." donald trump has confirmed campaign manager paul manafort has resigned from the campaign. frome joined now washington -- how surprised are you? megan: never a dull moment, particularly this week. there were a lot of rumors after the trump campaign brought in steve been in -- steve bannon and kellyanne conway. paul manafort also faced severe scrutiny and criticism for his past dealings, in term

then on to europe. isis has been directing and coordinating and preparing attacks in europe since 2013. the recent attacks in brussels and paris have made this painfully clear. these are most likely still -- there are most likely various isis cells present in europe who may attempt to carry out attacks in the near future. broad scale attacks in europe by al qaeda also continue to exist. lnoeone actors pose a threat. the recent attacks in france, belgium, and germany. the current efforts by the anti-isis coalition have seen an increase in people traveling to syria. increase in people traveling to syria. we have increased attention for people returning from syria back to the netherlands and also back to europe. they are questioned upon returning to the netherlands, and if there's a suspicion of terrorist activities, he or she will be put into custody. we monitor every returnee closely. there is an influx of so-called -- they are using refugee roots to get into europe. we know their isis operatives active

fir investing in europe. i also tackled the commissioner oen this and said what megs a you sending here to firms that are trying to bring investmen a taxpayer in europe. being multinational, a stand alone companies, being big companies or small company, european or foreign, that is this is a wonderful place to do business. and to invest. but you have to play by the rules. and not to rely on unfair tax bets. zpl $14.5 billion to an a l is nothing compared to the $215 billion around the borld. they can afford this. and analysts at jpmorgan say actually, eve fn this amount is charged, ultimately, it won't have an impact on o apple's share price, but t are far bigger. what does this mean for u.s. firms operating here in europe? there are ino amazon and mcdona too, what we're looking at is one heck o f a legal battle between apple, the irish government and between european officials over w could have greater ramifications going forward. >> back in the u.s., politic qu decision and not many were happy with the outc

they have no supplies nor any obvious way of reaching europe. this group are from gambia, nigeria, sudan, and elsewhere in africa. some of them have been stuck in libya for months. >> i was afraid, i was really afraid. in libya, i was put in prison with my children. i had to pay money to get out. i put my life on the line. on thechildren's life line to come here. in this land my children can go to school, we can live in peace. what else is there? chris: there is joy here. these people have found a safe passage. but over the last fortnight, a dozen bodies a day have been washing up on the beaches of libya. near the site of this rescue another boat floating in the , water, possessions on the site and no sign of what happened to those who were once in it. the international organization for migration says already this year internationally more than 4000 refugees and migrants have died. it is thought around three quarters of them here in the mediterranean. medecins sans frontieres, which operates this rescue ship, is now refusing money from european

how is europe's travel industry, though, reacting to the increase in violence seen in europe. also, how is it expected to react to brexit. keep your e-mls and comments coming through on twitter at louisa bojesen. street signs at cnbc.com. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. >>> the german state of -- is vw's largest shareholder and has veto power over the supervisory boards. elsewhere, the chinese search engine baidu is working to create driverless cars. here's the report. >> chinese internet giant baidu is moving fast for a self-driving car. considering the google of china is known for search engine rather than car engines. but baidu is bet thag it can develop the automobile of the future. >> down the road in the future, the car will be smart car and in a smart car, the value of the software will be much more important than the -- and the hardware. >> until now, the chinese companies lagged behind in the auto industry. new internet and electric t

, it's not actually in europe. that's not until 1944. american forces first go into battle in north africa. he doesn't like that at all. he wants a western european front. in his paranoid ways, he is thinking that we do this intentionally. we don't attack in western europe to help him in the east. we actually are attacking in north africa, which is very little of concern or help to him. he thinks we're doing this almost intentionally so that the nazi forces in russia could continue to wear down the russian forces in the east. he's -- that's not the case. we talked about this last time. where we're trying to stretch hitler's forces thin. we're trying to make him stretch his resources until something snaps, fighting a three-front war instead of a two-front war. but in stalin's mind, our third front in north africa was intentional to punish his people. we don't like communists so this is a way that we are trying to destroy them. and the other thing that he's going to make known to the west to churchill, to roosevelt,

and europe, europe has been difficult on business. the difficulty is not judgment. it is about regulation. is it a positive development for some of these companies? maybe not at apple generates cells about 15 billion in the euro bloc. versus 15.ber of 13 is it enough to do away with a block and miss out on a big economic zone? probably not. a it something which is it massive infection point? i am not sure i would call it that. francine: like brexit, we don't know, but it doesn't feel like it is self-destruction. antonin: we will find out in time. we just don't know. plus, i think some of these corporate have been able in time to -- themselves to new regulation. that life-threatening? absolutely not. francine: antonin, thank you so much and we talked to the ceo of the newest member of the cac 40. this is bloomberg. ♪ . . francine: welcome to "the pulse." live from bloomberg's european headquarters in london, i'm francine laqua. let's get to the news with sebastian selleck. sebastian: the number of people out of work fell to 7,000, beating economist forecasts. that

the goal is to private unity in europe. this undermines the institution when is to beime more unified. say that we want on of article five obligations, being uncertain and, about where we stand on the annexation of crimea, these things undercut the constitution had a very time there under pressure. europe has had a cascade of crises over the last few years running from the succession to the terrorism and russian coup in to attempted turkey. when we need unity, statements like this undermines these institutions and for a presidential candidate, it is quite damaging and said by i do not disagree that we have to put it in a broader context. there is an underlying issue here at scale that is not being addressed, the issue of america's role in the world. are we committed to defending the liberal order that we established after world war ii? what price are we willing to pay? framed andon gets particular about these statements about nato but we need to address the broader issue. we are at a hinge election at this country. since th

and for europe. he's been writing on britain, which is the biggest profit generator of the billionaire's business empire. japan's a sluggish economy is stuck in an almost impossible position, and those betting on a recovery anytime soon will be disappointed, according to australia's best performing global share fund manager. he thinks there's little evidence that prime minister's shinzo -- prime minister shinzo stimulus efforts are working. swimmer michael phelps has become the most successful olympian ever, surpassing a 2000-year-old record. his victory in the 200-meter overall medal he earned him a 16th solo metal, his 22nd overall. that put someone ahead of the great li na are's of rome. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. find more stories on the bloomberg at+++ this is bloomberg. manus: thank you very much, juliette sally there. let's catch up with haidi lun. she is standing by. as i said to you earlier, the u.s. is parking li

do you think europe will have a single voice? do you think europe is together? it seems as if the major building blocks on which europe is constructed are starting to fragment. worldve a very different and you haven't got the european conversion going up for their budget problems. when i look at europe as u.s. investor, what should i see? thatu rightly point out you're probably is not in the best shape when it comes to political agreements, definitely -- there can be disagreements on refugee policy. i think the major point for bratislava will how we will stand the u.k., and it is quite to be quiteerybody, harsh, to save that they can to , just to makeing sure that we don't have the , coming up with referendums that could lead to a further break of the european union. at this point, i guess politicians understand that it is important to seek with one voice when it comes to things like the refugee crisis. i am not really sure that a common agreement is made easily. guy: i come back to this question about u.s. investors. they are still very nervous about what's hap

, it's not actually in europe. that's not until 1944. american forces first go into battle in north africa. he doesn't like that at all. he wants a western european front. in his paranoid ways, he is thinking that we do this intentionally. we don't attack in western europe to help him in the east. we actually are attacking in north africa, which is very little of concern or help to him. he thinks we're doing this almost intentionally so that the nazi forces in russia could continue to wear down the russian forces in the east. he's -- that's not the case. we talked about this last time. where we're trying to stretch hitler's forces thin. we're trying to make him stretch his resources until something snaps, fighting a three-front war instead of a two-front war. but in stalin's mind, our third front in north africa was intentional to punish his people. we don't like communists so this is a way that we are trying to destroy them. and the other thing that he's going to make known to the west to churchill, to roosevelt,

it's more about what kind of europe do we now want? they don't want a repeat of what happened in britain. they don't want a repeat of that everywhere else in other countries. some countries are wavering with the referendum somewhere else, in the netherlands or eastern europe, and they want to say, look, we are listening, we know europe has to change, we need to work together to work out how it has to change, how we need to respond to those voters who think that the european union is in for them. -- isn't for them. manus: absolutely, pushing back against that right move. ian wishart, thank you. let's welcome our guest host for the next hour into the and asation, from c clacla good friend. james bevan, thank you for joining us. >> great to be here. manus: a great set piece, the tripartite of power in europe. they need to convince their members that life will be fine without britain. we will get pmi data today, and that is probably, we think, going to reflect that state of play. >> i agree, but they also need to convince themselves. it's

companies coming over to europe and the way they behave in europe. let me explain to you how the europe commission set this up. they've come you up with an incredible way to explain it clearly. this is how they believe they have a stake. they basically believe that the irish government has been given a stake for more than 20 years. artificially lowering their tax bill. apple as you can see there, christine, has stores right across europe. the sales and profits from these stores have been channelled to apple's head office in ireland. the head office, by the way, according to the european commission that only exists on paper. no premises, no real employees, no real activity. and then more shockingly to many people, many in ireland will know the ireland interest in a lot of these dmees in fact have very low tax rates. the shocking information came out yesterday saying apple will pay 1% tax on european products in 2013. get this, they paid only 00.5% in tax in 2014. that means for ever 1 million euros in profit, it only paid 500 euros in taxes. just putt

we have seen some year team leaders demand for a more social europe, for a more liberal europe. the first part is to find a common interest and obviously, your how to persuade others of the common interest. caroline: can you give us a geographical breakdown? is it the eastern block of europe that tends to be a little concerned about further integration? is in france, or indeed italy, trying to stave this off? >> their different challenges in different countries -- there are different challenges in different countries. d with thecharge election next year. in italy, there are huge economic challenges, particularly in the banking sector. in germany, they have an election next year with populists gaining momentum. many governments in eastern europe are not as open to the european idea as they were a couple of years ago. when we think of poland and hungary, most of them are being critical when it comes down to the refugee policy germany has taken. manus: good morning. that refugee policy that merkel adopted last year some say could be a political nemesis. ine us a sense in germany, t

and europe? markus: the trend we have been monitoring closely in china is how many people continue coming from rural areas to the cities. we see that trend slowing dramatically, because it has to at some point. agriculture in china has been deemphasized for decades and china has been industrializing. i think the trend is still ongoing but at a slower rate. fewer people are coming to the cities which shows us chinese labor force potential is starting to become lower and lower. therefore, the labor market, a global labor market will not absorb many more workers from china. anna: thank you very much for sharing your thoughts. markus stadlmann joining us on countdown. coming up, we preview turkey's rate decision live from istanbul. will earnings be on solid ground or is brexit taking their foundation? we speak to the ceo of pers immon. 15 minutes later, the german chancellor's message to the u.k. we discussed the meeting between merkel and hollande. this is bloomberg. ♪ anna: welcome back. a.m. if

oil prices have not helped europe as -- helped europe either. guy: yogesh dewan is going to stay with us. -- we are going to take a closer look at the stock and potential movers in today's trading. ♪ guy: 7:53 in london and we are minutes away from the organ open . john cryan is a spot -- from the market open. john cryan is about to be in focus. there is a markets magazine story suggesting they are having an internal discussion at deutsche about the possibility of a thomas bank merger unsourced and to a certain extent reasonably speculative. the fact that maybe this discussion has taken place tells you how extreme the situation is starting to become. maybe the kind of solutions that john cryan has been looking at -- in the german banking sector. to deputy ceos -- two w ceos coming in. the top line is a bit of a mess. 888 another stock, the boating business. pretty confident but heading for your numbers. yogi, talk to me about what john cryan is going to do. due to bad to make a good? beds make a good? yogesh: a low-interest rate environment is

the only time that europe had known sustain peace was after 1945. in particular, after nato came into existence, which allowed the americans to have not only an invitation into europe but to maintain a large military presence as the most powerful european country in many ways. to his mind, if you did not have a continued nato after world war ii -- excuse me, after the cold yourhistory might diverge everything we see moving toward democracy only works if we keep violence and chaos from developing. had we keep it from developing in the most strategic area of the world? you keep an american presence there. sure the americans stay? make sure native survives. -- nato survives. how does nato survive? germany unified spirit -- unifies. perhaps it might demilitarize, perhaps it might join the warsaw pact and nato, which no one could conceive of entirely. all of germany might inter-nato, but nato troops might never enter eastern germany. was thataction anything that diminishes germany's position in nato diminishes nato. conclusion, this is why i think that b

of europe. the gulf between europe and the u.s. has widened and it's acts like this that every corporate is required to pay tax where appropriate, but at the same time you have to take the wholistic approach here. look at the number of jobs apple credit its in europe and look at the wider economy. look at this not just in isolati isolation, but the bigger picture. >> it overrides the tax codes of member states. they're also saying the u.s. treasury department that brusselss is using a different set of criteria to judge u.s. companies and what they're doing in europe. do we need to find a common president between how we operate in u.s. and in europe. >> that is part of the issue. many member states of the eu have signed up for a range of policies of under one policy directive, but on others especially tax treatment comes down to national issues more than on eu issues. common ground would be great, but let's face it, we've had many, many issues on import duties. solo for example a massive spat bet

to politics in europe. although merkel is returning to the campaign trail for state elections with public support eroded by terrorist attacks in the eu. for more we are joined by the codirector in europe, with the iw president joining us in berlin. let me start with you. -- the economy is going fairly well but the terrorism and migration simply will not go away. how difficult a story do you think this is going to be? election next year, it is very open. likely that is very it will increase, so the very -- faruro vidal alternative shows what the government can look like. it is wide open not clear what it will look like. overlso the disagreement how to ensure that wages are adequate -- these are the issues that she will have to debate. guy: is that all we are looking at? stables is remarkably are remarkably long time, and it has been the bedrock of european stability. does that start to come into question? >> i don't think so. there will be more fragmentation but you are still looking at the main parties gett

and its relations with europe. it's u.s. and its relations with the entire world throughout the western hemisphere and other parts of the world as well. that said, i do think u.s. entry into the war, especially does change a lot of things. we can point to a number of ways in which -- i have talked about humanitarianism and the size of and the expansion of the u.s. military. thinking about the u.s. government's involvement in european affairs that we can certainly -- i think it would be -- to say nothing happens, nothing changes at all. i do think it is really important to think about the fact that it is u.s.-european relations are not the only foreign relations that there are and that we need to look at these other areas too. >> just continuing on that, i think you can probably predict certainly from the standpoint of the caribbean and central america i don't see world war i as the key moment. the spanish-american war i think is a much more important turning point in looking at relations, as julia says, from that perspective

the council of europe. and there the death penalty is banned, it's unacceptable. we called for that. we called for turkey not to reestablish that penalty or anything of that sort. and of course the people who need to be brought to responsibility and justice need to be assured a fair trial and the rule of law needs to prev l prevail. however, though, turkey remains our neighbor. turkey is -- i will repeat this again -- essential part of our defense infrastructure, especially when it comes to the fight against isis and the stabilization of syria and iraq. and also a partner related to the management of the migration and the refugee crisis. the european union and bulgaria in particular, we work very closely with the turkish authorities in order to, in order to achieve sustainable solutions about the migration crisis. the turkey agreement is of importance to us. and we will, we will continue to insist for that agreement to be implemented. we will continue to insist also, of course, for turkey to start implement

. -- in europe. muslims in europe are a legacy of the post-world war ii generation where they needed cheap labor. what did they do? they went to their colonies and brought the men in and somewhere theyd the late 60's -- said, crap. what are we going to do? united families or go back. -- reunite the families or go back. the amount of people who emigrated very quickly to assimilate happen in a short time. this is one of the reasons we see the your opinion muslims -- european muslims are disproportionately poor. the fact remains that when you look at thei european muslims, they are not like american muslims. they don't identify themselves as french-muslim. they will not learn the local language. they will not integrate. they dressed differently. in other words, assimilation is a negative. in this country, it is a different situation. remember thatt to and they hadg cnn about howstic story this person was in new mexico. colorado, i'm sorry. colorado. a dance in outside baby it is cold and a church. [laug

>> of course europe is facing many challenges. i will say that the main challenge of europe is called institutional. having that in mind that europe, especially -- is a very competitive area. the surplus of gdp of the eurozone is 4.6% of the gdp. i think that europe is a lot of competitive advantages. but yes to address the question of institutional and political situation. >> thank you for bringing us that perspective. that's the ceo at amundi. >>> hillary clinton has accused russian intelligence services of hacking into democratic computers. she drew a -- she said he's shown a troubling willingness to back up putin. while the white house has not commented on the hack due to an ongoing fbi investigation. >>> meanwhile, donald trump is facing criticism over his own comments about the russian leader saying that he doesn't believe president putin would make a military move into ukraine. the republican nominee back tracks when it was pointed out that russia had already annexed the crimea peninsula saying putin was only there, kweet,

that happened in europe as well. think,egative rates, i are at their limits in terms of policy measures, even though central bankers see no technical hard limit. they are anxious to see the discussion shift more to fiscal policy or other means rather than lower rates and certainly that is what the market likes if you look at the response of financial stocks. anna: what would you make of a policy and japan to buy local government bonds? would that be radical enough to make a difference? well, it is hard to say that anyone move is going to be enough given the history of stimulus in japan has been erratic. it is not so much -- it is not a binary decision. it is how much they do and whether they can create that sort of shock and awe at this point in the cycle. everybody is hoping they will give it another try. hitn has not been able to their inflation target and that has put that country and that central-bank into some kind of jeopardy. they could announce a massive stimulus program, both on the monetary and fiscal side,

it really forced europe to work out what it was for. borders being closed and people saying the refugees and migrants should be sent back and particularly anger merkel said that is not what europe should be about. brexit, which was a real wake-up call because people say maybe this was a consequence of inviting all the refugees to come, that people protested the -- against the european union. delicate balance and they're trying to work out on the one hand how to this -- still be a european union on the other hand, do what they are willing to do. >> this is just a start of a whirlwind week for her. right. is she is talking to practically every leader of the european union and they will be talking about where the european union can go from here. they want to put pressure on .heresa may for the u.k. to leave the eu. ,ut they also want to work out where does the eu go from here? massive project and it is as unpopular as it has ever been. how can they turn it around and start to say the eu is a force for good and there is still something we c

it is the powerhouse of europe. it is the most able to benefit growth.obal gdp br the story behind germany relates to the fact that it has tremendous export strength and great global multinationals that can benefit even as growth in europe stay slow. it can especially benefit if there's further euro weakness. mark: one of the big export is the u.k.. it is the third biggest export destination. surveytning today, telling the whole story. this is the index which fell to six month low. the white bars are the changes from previous month. how concerning is it? if the u.k. economy slows down, as many think it will, what sort of impact will it have on german business? luciano: that is a great question. that export growth will be impacted by perceptions of growth in the u.k.. i think that is a reaction to the brexit boat. what is interesting as you continue to see the stock market rally, even though brexit sent jitters through the world. u.k. stocks were up after brexit. ivehink you have to g business a chance to adjust to w

"street signs" europe @cnbc.com. you can get in touch with me directly @nancycnbc. >>> still to come, soring to new highs. we'll from from qantas as profits for the airline take off. >>> good morning and whack wk back to "street signs." glen core has reported a 13% drop in profit as it revealed progress with debt reduction program. anglo swiss minor. says it's on track to meet a freshly lowered year end net debt target. glen core says it expects to reinstate dividend next year at an appropriate level. glen core shares have had a strong 2016 with the stock price up a fifth over the past 12 months. in morning investors were looking for more. that stock off 4%. it has been weighing on the broader mining sector in the uk. >>> on the other end of the spectrum, wpp has posted a mixed bag of first results. offset a 56% fall in net profits. as you can see investors really cheering the hike this morning. told cnbc that it is still too soon to judge the impact of the brexit vote. >> it's impossible to come to conclusions yet,

germans are saying a better europe not more europe. >> big question, right? >> exactly. whatever that means. meantime italian prime minister has confirmed general elections will be held in 2018 regardless of the outcome of this year's referendum on constitutional reform. >> renzi when you spoke to him was sounding quite confident. >> he was. you look at the poll readings pretty much 50/50, trying to get the move away from him and about the need for change which clearly is needed. >> could be the next big risk in europe. a check on how bond markets are trading. we did see softness in u.s. treasuries that support german bonds slightly higher. taking a look, 0.596%. wanting to straight to our next guest at the desk from old mutual global investors. pleasure to have you with us. we look at august as quiet dog days of summer. that has not been the case for gilt activity. extraordinary amount of activity in this space specifically when we look at moves in the yields post brexit. what's this tell you? is there value in this trade. >> absolutely right about having the move we've

you like europe. >> i do like europe. richard made a point about money center banks. a disaster in europe. not the only sector of the market. i agree. financial services in sweden, switzerland, the blackrock of switzerland is a good investment, for example. a different company, same strategy. trades at 20% discount to equivalent in north america, pay as dividend, liquid. you can find many other situations in europe basically the story's this, why i don't agree with richard. let's leave out the sector, the financial sector, which is a poor underperforming sector just like it is at home, and look at every other sector in europe. basically the story is there. a 20% discount to the pes we pay in north america at a 40% increase in yields coming out of those companies whether britain, england, swede be, switzerland, france, even italy, and the worst economy on earth. 450 percen-- 50% of the time outperformed us. to not have exposure is a mistake, in my view. i'm a global investor looking to point capital. i can invest in financial services in europe and including a discount

in europe, banks tend to load up on sovereign debt. you can see how close portugal is to italy at the top of the doom loop. their country that is soaring. bad bank loans hurt the country's fiscal position. as that deteriorates, that hurts the position of the banks. it is a doom loop. add in the possibility banks may not be able to sell the collateral, and you have problems in a country with a .29% debt to gdp ratio it is estimated that if you saw a 15% fall in portuguese bond prices it would wipe out one quarter of portuguese bank capital. tom: i thought do loop was great when they opened for death cross. who came up with that phrase "doom loop?" francine: i like it. many times you do see vicious circles. portugal,ews is that i know it is significant, but is it a bigger problem because it is more systemic if something goes wrong? gilles: definitely. in the portuguese case, negotiating a longer form of atport, which wasn't enough the time, if portugal gets into trouble again we know how it will be dealt with. we have emergency mechanism

the bond market in europe is much smarter -- is much smaller in europe. i agree that banks are much more crucial in europe and in japan than they are in the united states. it is a question between average and marginal. the question of negative interest rates will reduce the average profitability of banks. also on the margins it creates more incentive to lend. my willingness to land goes up, not down. if the banks -- i think negative thingst rates is a great to push them to lend. if they are not solid, and this might be the case for italian banks, then that is more of a problem. if anything, the banks are pushing up lending rates because it will offset the losses by charging borrowers more money. that is where monetary policy starts to become counterproductive. francine: do we need a bank in europe to fail miserably, to go under, like we had with lehman's , to spur that industry action? do we need an ugly event for something to happen? luigi: certainly an ugly event will focus minds. , soear is that in italy far, the pollsters have been fairly loyal to the

but we are not europe. the reason we are not europe is simple. proximity. we have a lot of european like problems. i think we will have more. i won't take up more time. >> there is a difference between us and europe that we ought to mention. we don't have the colonial heritage that has haunted france and germany and belgium. and you know, so many of the people that are muslims in those countries. >> that is because we did the original brexit. [laughter] >> exactly right. those postcolonial refugees have never been integrated into those societies. statistic, it is a little lose because in france, they don't take a census on religion. but they 7% to 10% of the population of france is muslim. 60% of the prisoners are. is there evidence of the degree of alienation in that society? france has the most muslims per capita of any european country. but that kind of disaffection is common in europe. it is not common here. because wet of it is have been more careful in terms of our selection of the populations. they have had a better job. they have been dispersed in t

request to enter europe, it would be the americant of the system. reporter: as well as a system for sharing cross-border police the two countries want a law requiring the makers toencrypted messaging apps help governments track suspected extremists. used by twogram was jihadists to plan the murder of a priest in normandy in july. then, french authorities have been stepping up arrests. >> we're seeing significant war we're waging against terrorism. of people with ties to terrorist networks arrested in the first six months of the year totalnce is equal to the number arrested in 2015. reporter: this month alone, people were detained in france for terrorism-related offensive. offenses, at least three were planned future attacks. anchor: a total of seven people are under arrest in the murder on an french volunteers island off madagascar. the two victims, a man and both in their 20's and found on sunday with head injuries on a beach on the resort island of st. marie. first four arrested were detained later that day. have not established a firm link to the

that is one thing seriously lacking in europe. you can keep credit funding rates at zero as much as you want, but there's no end demand on the back of it, then the economy is still going to struggle. anna: thank you very much, geoffrey yu from ubs. here are some highlights of your week ahead. 5:00 p.m. u.k. time today, we get a joint news conference from angela merkel, francoise along, and matteo renzi. economic growth and migration will be speaking to the media. on wednesday, john kerry visits turkey to strengthen ties between the two countries following the failed military coup. on thursday, vw is due to provide an update on how it will fix 8.5 million diesel engines in the wake of its emissions cheating scandal. we will round of the week with janet yellen speaking at jackson hole. we mentioned it when we were speaking with geoffrey. coming up, the ceo of an italian oil firm speaks to bloomberg. that interview is next. then, could british holidaymakers be in store for some sterling suffering? we discussed the possibility of heri

investors taking cues from japan and europe this tuesday. the dow joins down .6 and the nasdaq lower by .8 percent. let's look at some of the other stories we're tracking for you now. gamble topped analyst estimates. the world's biggest consumer products maker said an unfavorable exchange rate pushed sales lower in the fourth quarter. total revenue came in at $16.1 billion. they expect organic sales to climb about 2% in 20 17. lufthansa says european terror attacks are impacting its second-quarter profits. lufthansa said travelers feel and saleses have fallen significantly. the company reported lower profits, despite drop in oil prices that resulted in fuel cost savings of nearly 600 million euros. a french telecom company .roposing a redundancy package the plan is expected to cost the company hundreds of millions of euros. they said they would let go of one third of his workforce between 2017-2019. uber agreed to sell its operations in china to its regional rival. attention has shifted to why the silicon valley-based company could not penet

it can't emerge in europe, as we have seen recently. cuba and iran. >> $775 million a year in budget. >> about $750 million right now. we hope to move it up, yes. >> is it enough? it is never really enough for the job we had. i hope we are doing a good job spending that money in service of a free press, but we are up against competition. russian media out spends u.s. media significantly, as does china. state-sponsored media. we are also against competition trying to stop our work, trying to at times shut down our satellite signals into these down on trying to clamp our internet distribution. it's not only the money spent by the competitive media, but also the money that other competitors in the world use to try to stifle our work. >> as someone who came out of the private enterprise world and worked in tv in that regard, what are some of the most effective platforms that you have here? mr. lansing: historically, this all began with a radio in the post-world war ii era, but increasingly, in the last three to five years, we have seen soci

imported from europe. now with development aid from germany he uses a soul about, a more sustainable solution -- solar pump, a more sustainable solution. he is optimistic that his seven children will have a future as farmers. "if young people see a future for themselves here, they will stop wanting to leave. they will want the same life as everybody else here. my neighbors asked me how they can get a system like mine, because they can see how well it works for me." he is now chairman of an organization for migrants who have returned. they have more than 500 members. after his bat experiences, he is well qualified to tell people about the dangers of illegal migration. "when i give young people in place, i say don't do it -- young people advice, i say don't do it. but if they are determined, i say they should try to find a legal way with a visa and passport. but not those deadly boats. thousands of young africans have drowned that way." he has had a good example come with a job in a fish factory, three child

and europe. her most recent book is "jimmy carter and africa -- race and the cold war" which will be published by stanford university press this spring. please help me welcome nancy mitchell. [ applause ] >> thank you very much for organizing this panel. i have two brief comments to make. first i'll begin with a comment, which is imagine yourself trying to convince a haitian or a dominican or a nicaraguan that 1916 was a turning point. i think that would be a very difficult thing to do. i have no ambiguity in my answer to the panel question, which is absolutely in terms of the caribbean and central america, 1916 was not in the lease a turning point. it wasn't, as julia erwin says in her paper, it wasn't even a new chapter. it was pure continuity from the 1890s, particularly from the spanish american war right on through, i think you really could make a strong argument right on through with total continuity to the present day with a few little flips along the way, possibly with sandino and castro.

coming up, the battle for europe. continental leaders talk brexit. we will learn what's on the agenda, and why one of heavy metals biggest stars is launching in one of africa's smallest countries. the economics of aviation with iron maiden's bruce biggins on. and we speak to the rbs chairman, a bloomberg exclusive. ♪ francine: this is "the pulse." let's get straight to the bloomberg business flash with the nejra cehic. nejra:'s agenda is trading higher this -- syngenta is trading higher after they received approval from national security officials worth $43 billion in the takeover of us was chemical company. the deal is expected to be completed by the end of the year but is still subject to antitrust review by regulators worldwide. japan's biggest brokerage, nomura, plans to resume a push to boost investment banking business in the united states. the ceo has been eliminating jobs and shoving businesses in europe and the americas to save about $700 million and spent six years of losses abroad. the shift comes as nomura anticipates rising volumes of

oil stocks have fallen in asia and in europe. the ceo of the italian firm hopes the informal opec meeting will lead to an oil production phrase. -- oil production freeze. he told bloomberg why he thinks a middle ground will be reached at the end of 2016. are going through a stabilization and a balancing, the equilibrium between the balance of supply and demand. i hope really that they can find awise decision to have solution. men do what they do best. let's bring in our guest, stephen king. one would not expect the ceo to say that. one thing that is certain is is. we are going into this gathering and there is a great dear of expectation that reminds -- there is a great deal of expectation that reminds me of doha. nobody is taking any risks this time. a freeze could be on. what does it mean? >> a brief itself would be very good for the oil markets. itself would be very good for the oil markets. the difficulty is enforcing a freeze in a credible way. you've got the saudi's and the iranians having a poor relationship, frankly. the s

europe's borders are not hard to penetrate. in france and belgium we have seen how effective the use of sleeper cells willing to use suicide attacks can be. and these attacks are increasingly innovative, that became evident on bastille day when this terrorist drove a truck into a french -- celebrating freshmen and french women killing 86 people. isis accepts the killing of children, and see that as a normal collateral damage. they even systematically use children. i think we've seen a bit of this in a picture here, as future suicide bombers and hide behind women and children in order to deter counterattacks. isis is successful in propelling the european public exactly in the direction that it is hoping for. that is panic and overreact. germany just learned a lesson the hard way. when we went through a week of terror, just a month ago, when four terrorists or terrorist-like attacks took place in germany. not all of them were isis related. and even as germany is trying to open to islam, the country is certainly not protected agai

♪ elizabeth: hello and a very warm welcome to "focus on europe." this week, many europeans are looking anxiously at turkey. that's because people here are increasingly worried about president erdogan's human rights record. tens of thousands of people sacked or arrested and shocking reports of abuse in prisons. a justified response to a failed coup or disturbing treatment of government critics? we'll be talking to one of those targeted to find out. my name is elizabeth shoo. thanks for joining us today. in a week when people here in germany are reeling from a spate of violent attacks. panic was caused last week in munich by a deranged teenage gunman. the city is in mourning. barbara nalepa ao lost her daughter in a similar incident. she tells us that her life will never be the same. for many of us here in europe, munich is almost a symbol of germany at its most affluent and peaceful -- relaxed beer gardens and good food -- but last week, that all changed when nine people were killed by a gunman in a shopping center there. initially, there were fears

the catholic church in spain by far was the most reactionary in europe. as the army rebels call themselves that men and women should be segregated in education it was very strong on religion and not much else. so they were diametrically opposed what they wanted spain to be c-span: i will show video he won but how long was he the head of spain? >>. >> guest: the war early 1939 and remained dictator of the country close to absolute power for the remainder of his life which was 26 years. he died all the 1975 and ruled with an iron fist right through the end torture was routine through the very end no elections no free press or free trade c-span: let's look at at heouedik speaking eangpash. >> t11 what is the worst thing he did to his people? >> you can see right there that everybody must be united to l'express of popular role this way to do what i say and the worst thing he did was to extinguish any type of expression of democratic feelings with dissent in the press through the existence of the civic organizations however participation in anything with the t

then on to europe. and has been directing coordinating and preparing attacks in europe since 2013. the recent attacks in brussels and paris have made this painfully clear. --se are most likely still there are most likely various isis cells present in europe who may attempt to carry out attacks in the near future. broad scale attacks in europe qaedachyna also -- by al also continue to exist. one actors pose a threat. in france,attacks belgium, and germany. the current efforts by the have seen anlition increase in people traveling to syria. we have increased attention for people returning from syria back to the netherlands and also back to europe. they are questioned upon returning to the netherlands, and if there's a suspicion of terrorist activities, he or she will be put into custody. we monitor every returnee closely. so-calledn influx of rootsy are using refugee to get into europe. we know their isis operatives active in europe. they took advantage of this refugee crisis to travel from syria to europe and back. sometimes for a short while. at the eu borders are monitored , entra