this is bloomberg. turkey'soming up, central bank makes its biggest rate cut on record, slashing its benchmark by 425 basis points even as inflation runs around 15%. a look at what it means for turkey's economy, next. this is bloomberg. ♪ ♪ guy: a bit of breaking news. barnier talking about the speech boris johnson delivered a little earlier on in parliament and the comments he made last night. barnier, the eu brexit , said become it's on the backstop were "un-acceptable." the elimination of the backstop is on except about. to be honest -- is an acceptable. to be honest -- is unacceptable. to be honest, not surprising that barnier is not particularly happy about that. vonnie: it couldn't go unsaid, and there we have it. now the line in the sand. let's check markets with abigail doolittle. abigail: we are looking at a risk off tone for global equities at this point. take a look at the s&p 500 and the nasdaq in the u.s., dealing with a number of earnings reports. we will take a look at two of the key

this is bloomberg. ♪ anna: welcome to "bloomberg markets: the european open." i am anna edwards in the city of london carried treasury yields rise as investors settle on a fed cut for july but they aren't sure what to expect afterwards. will we get clues from jerome powell later today? european equities expected slightly lower. is 30an cash trade minutes away. anticipating powell. stocks in a holding

this is bloomberg. ♪ is is bloomberg. ♪ viviana: this is bloomberg surveillance. i'm viviana hurtado, let's get the bluebird business flash. saudi arabia had a tough second quarter. profits plunged the most in a decade. net income tumbling almost 70%. set to receive a report from is in theco, it process of buying a $69 billion majority stake. this is for $2.8 billion. bolstering the cancer testing capabilities, science focusing on early detection of cancer just like health businesses can a lot -- criticizing oncology tests. refinitiv, a deal that will issue shares as part of a transaction with shareholders receiving the most. they compete with a providing financial news data information. and that is your business flash. scarlet, anna. scarlet: go ahead. anna: yes, indeed. editor,mberg executive they are still with us. let's talk about a couple of the stories that viviana was referencing. m&a storiesther this morning to take away from. cases, thethese shares are going higher. is that your take away from this morning? >> it shows that if aco does a makes sense if it

speaking tobius bloomberg a little bit earlier on today. time for the bloomberg business flash. with another sign of how cap regulations are forcing banks to change their business models. a french bank will get rid of the majority of its asia research staff in hong kong and instead use contact from morningstar. the saudi billionaire prince has hired a deutsche bank executive to look for deals. bloomberg has learned the banks ceo and saudi arabia will join as the head of international investment. the german lighting firm osram confirms it has received a $3.8 million takeover proposal from bain capital and carlisle. the company's board will meet today to vote on the agreement. in march osram issued its fifth profit warning in just over a year. the company's lights are used in cars and smartphones. that is the latest bloomberg business flash. coming up, we are live in boston with the matt miller getting ready for the boston pops concert and fireworks spectacular. this is bloomberg. ♪ ♪ guy: some of the numbers behind the boston pops fireworks spectacular. let's go there now to

welcome to "bloomberg markets." vonnie: a big week for markets with the fed decision, jobs data including thed u.s. restarting talks with china impacting some stocks. earnings above 3000. one major deal and less major deals. combiningd pfizer parts into a public traded company. pfizer down 2.7% in line with what would be an acquirer type position. we have paypal holding, down more than 3% on a downgrade which calls their outlook which was decreased a wake-up call. guy will get into that. guy: let's talk about what's happening. i will focus on the u.k.. the real story coming in, the markets along with boris johnson starting to look at may be no deal brexit. as a result we have the fish found against the u.s. dollar, we will -- we have the british pound against the u.s. dollar. a big move there. that is one of the factors outting the ftse 100, it is forming the rest of europe but it is -- but there are other factors. m&a is one of them. deal buying a business sold to blackstone and now being bought by the london stock

this is bloomberg. ♪ viviana: this is "bloomberg daybreak." coming up in the next hour, republican senator john kennedy of louisiana, member of the senate banking committee. here's your bloomberg business flash. more problems for facebook in washington. u.s. treasury secretary steven mnuchin joining critics bashing proposedl network's cryptocurrency. managing saying he has concerns about the national security implications, with a high possibility for on a laundering. in the three months that ended in june, store sales rising 4%, ,wice what analysts expected for barberry. -- for bird very -- for burberry. deutsche bank has said it will retain a focus in a capital markets operation for companies to issue shares. i'm viviana hurtado. that is your bloomberg business flash. lisa: thank you so much. i've got to say, it is not that surprising that deutsche bank is dealing with a german share offering. david: don't count them out. they are still in the game. lisa: if you talked to a lot of equity research departments, they are saying we are still here

this is "bloomberg markets." let's catch up with the bloomberg first word news. here is viviana hurtado. viviana: it looks like nasa successfully tested the emergency abort system of orion spacecraft. the orion is supposed to take astronauts back to the moon. imf managingy make director christine lagarde the next president of the european central bank. her name is one of the key pieces of the latest slate of candidates for the eu's top jobs. since sunday, various officials have been wrangling over the job. tanks on trump wants all for the july 4 celebration, it looks like he has them. a few hours from now, it is the u.s. versus the u.k. in the women's world cup semifinals. the second semifinal is tomorrow between sweden and the netherlands. the winners face-off on sunday. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. guy: thank you. by most measures, the u.s. labor market is at or very close to full employment. 3.6% is the number n

this is bloomberg. ♪ renita: this is "bloomberg daybreak." coming up later on "bloomberg markets," kevin johnson, starbucks ceo. ♪ renita: this is "bloomberg daybreak." here's your bloomberg business flash. netflix forecasts higher sales -- nestle forecasts higher sales helped by starbucks. softbank is unveiling a second huge vision fund for technology investment. the japanese conglomerate is hoping to raise $108 billion. investments are expected to include apple, microsoft, and foxconn. it is part of a strategy to extend their reign as the most influential investor. president trump lashing out at the prime minister of sweden over what he says is unfair treatment of an american rapper. rockysician known as asap is charged with assault over a fight in stockholm last month. over twitter, the president urged swedish officials to give the rapper his freedom, saying, "we do so much for sweden, but it didn't seem to work the other way around." i'm renita young. that's your bloomberg business flash. [laughter] david: that story just gets weirder a

this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open, 21 minutes into the trading session, looking at decent green arrows, the dax up 9:10 1%, the cac and the ftse mib more than .5%, and the ftse in london getting more than .25% right now. the white house in the u.s. is settled on a sanctions package to punish turkey for receiving parts of a russian missile defense system. we've learned the u.s. is preparing to announce those sanctions this week. but the expectation around the red raiders is the impact will be minimal. meanwhile, president erdogan is promising significantly lower interest rates by the end of the year, a week after removing the governor of the central bank in turkey. just days after the dismissal, credit rating was cut deeper into junk territory by fitch. joining us is a guest. let me first ask you about the risks of u.s. sanctions. president erdogan downplaying these risks. what can we expect in real terms? guest: we're certainly going to see sanctions announced the end of this week. the turks

bloomberg terminal. expect a call. steven mnuchin says he may head to beijing this week if trade talks are productive, as europe braces for u.s. tariffs on $7 billion of goods over illegal aircraft subsidies. trading revenue will be the talking point for goldman sachs and jp morgan as they report second-quarter results. wells fargo's numbers are also on the docket. we'll hear from cfo john shrewsberry. and, set to make history? ursula von der leyen speaks in strasbourg ahead of a secret ballot that could cement her as the european commission's first female president. we'll bring you the headlines. good morning, and welcome to bloomberg markets. this is the european open. i'm matt miller in berlin, alongside anna edwards at bloomberg european headquarters in london. anna: 30 minutes into the trading day, and we seem evenly divided. regardless of which way the overall market is moving, we're pretty divided in the makeup of stocks. 600, most stoxx others to the downside, so fairly evenly balanced as we look

this is bloomberg. ♪ >> welcome back. you are watching bloomberg markets. let's get you the latest headlines. for --ith lenders returning to the debt market. a loan of $2 million for corporate purposes. to be finalized. last of course, the syndicated loan market. they raised a three year facility. they raised $150 million for a stake. it plans to was -- have a new battery powered car on sale by the end of the year. and will also make hybrid versions. rule out ofed their 5g in asia will weigh on profits. erickson battling for pole position in next-generation mobile. but it says it should not jeopardize profit targets for next year. inwe are putting our self plans for the target. 2020, 2022. that is what we manage four. on track for that. >> live pictures out of soul. pressank of korea conference. they are lowering growth forecasts for 2.2%. they mentioned when it comes to the forecast, it is due to slow exports. we will watch how inflation targets come. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we do

david: bloomberg -- alix: bloombergs taylor riggs. joining us now is finale bassett -- sonali basak. is underweight the banking sector. focusing on the yield curve, we talk to lori calvasina yesterday. here's what she had to say. >> it seems likely yield curve matters to the banks when people are worried about tipping into a recession. when we have better economic data and the yield curve is viewed as more of a one-off and not sending missing signal on the economy you do not hear about it. it is the preponderance of the evidence. i do not think you can use the yield curve as a single indicator. alix: eli, what do you think? the curve flattening and being inverted is not good for the banks. the curve flattening is also not good for the banks. on the banksthesis is not predicated like lori's on the yield curve. what are some of the reasons you are underweight? eli: let's talk about a year ago when we went underweight on banks. net interest margins and loan growth disappointed. historically, banks have generated loan growth of twice real

this is bloomberg. ♪ this is bloomberg. ♪ ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." a bloomberg scoop, a bumpy ride for lyft. why the company coo is leaving and why the founder plans to split up the job. trade commissioner joins us to tell us why she voted against the fcc -- the ftc's

this is bloomberg. ♪ olivia: welcome to "bloomberg markets." deutsche bank ceo christian sewing is putting the final touches on a turnaround plan. among the moves being considered, another management shakeup and a new unit to house unwanted assets. bloomberg has learned the u.s. justice department is on the verge of approving t-mobile's merger with sprint. the key, asset sales to dish network. the justice department once enough concessions so that issue can become a fourth competitor in the wireless market. william hill has been hurt by a law that limits bets on roulette's and poker machines aimed at cutting gambling addiction. that is your bloomberg business flash. anna: thank you. over the past few days, countries from belgium to austria have seen their 10 year yields drop below zero for the first time. by one measure, japanification is defined by this measure. we had the german yields dropping below -0.4%. let's get bloomberg's's dani burger, who's been pouring over the details. relentlessve these dovish central banks and continued low effic

but them to bloomberg markets. we are joined by our bloomberg and vmm and bloomberg audiences. hear the stories we are following from around the world. is wrappingy powell up a second day of testimony on capitol hill with the market rallying in hopes of a rate cut later this month. we will be alive from the allen and company conference in sun valley, idaho. nhlng up, an interview with commissioner, gary bettman. the white house abandoning a plan to eliminate drug price rebate. before we get all of that, let's check on the major averages did we will start with the s&p, dow, and nasdaq. the s&p 500 being coy about its commitment to finish at 3000. it has retreated at certain points. the dow jones industrial average a little mortified bashar little more decisive. -- the dow jones industrial average a little more decisive. we're looking at the highest yield in about a month. as jerome powell's center stage for the market, the market is betting we are going to be getting a rate cut. one of the regions he is testifying this is low inflation expectations. we have seen that. you could

this is bloomberg. ♪ ♪ this is bloomberg "surveillance." nault is lowering its outlook for full-year sales as they grapple with the not a market slowdown. revenue will be close to last year's level. the results cap a mostly gloomy week for the automotive industry. the chief executive says the biggest risk is a hard brexit. >> the biggest risk we have at the moment is a hard brexit, but it is not only true for us as a company or sector. it is true for the economy. anything that is around hard brexit is something of a concern , and anything which can be done to avoid that is extremely important and positive. renita: softbank announced a second vision fund and is aiming to raise $700 billion, making it figure than the first. investors are expected to be apple and foxconn. this is part of the strategy to extend his reign as the most influential investor in the industry. barney's new york is looking for ways to remain open if it files for bankruptcy. bloomberg learned they are talking with existing lenders including wells fargo about a new loan.

stay with bloomberg television. the european equity market is just turning tail as we head towards the end of the first hour of european equity trading. stoxx 600 up by .1%. in general, we are caught between a better picture in the u.s. but the trade rhetoric continues, and amongst all of that, the market is finding it difficult to settle on a narrative. matt: that's right. we've had trouble for two sessions, really. finding a direction, are the rate cuts from central banks around the world going to outweigh the global growth rate -- break? we will talk more about that. this is bloomberg. ♪ nejr further tariffsa: -- president trump wants he could impose more tariffs. jay powell says the central bank is monitoring risks. ursula vander line clinches the european union's top job. >> we have issues, but we should never forget that we are allies. we sit on the same side of the table. ♪ welcome

this is bloomberg. ♪ tom: bloomberg surveillance. francine lacqua in london and tom keene in new york. let's look at investment and then get to francine and europe .n the ramifications inflation and disinflation in europe and in the united states. is it extraordinary? mentioned this earlier. can you explain where the inflation is going to come from? i do not know how you manufacture it. jose: we don't have it in terms of labor markets or goods markets. thanks to the role of technology and the better software. the u.s. is now the swing producer. oil prices go up and it disappears. tom: francine, it really fuld's into the dynamics of europe. look at the dynamics of europe, as tom likes to say. what is the prescription the ecb president has to put in place? is it monetary stimulus or just fiscal? >> the next ecb president can't really do much about fiscal. francine: but maybe they can convince leaders to do more. >> mario draghi is a convincing person and has been trying to seize 2012 and failed. i suspect the political situation in eur

this is bloomberg. sheryl: thank you. u.s. and chinese trading go shaders coming face-to-face for the first time since may after the last round of talks broke down. the stage is set in shanghai for a restart. u.s. trade representative robert and steven mnuchin are traveling to china but may be up against the same set of sticking points. itning us now is the former deputy director of the economic counselor. the firm intner at washington. we are now hearing that china's commerce secretary may join the stalks and shanghai. he is known to be more of a hardliner. how challenging will these negotiations be question mark >> they will remain challenging. the reality is, for the last 2.5 months, the sides of not been talking about the real issues. they haven't talked about structural issues. see whenhuawei will they start talking about the structural issues again, can they start from the baseline of where they were in may or will they take a step backward? it's important for the u.s. to get back to where they we

bloomberg business flash. it's been a while since wall street has been the step at about apple. five analysts -- has been this tepid about apple. morgan stanley has downgraded its view of large-scale banks. the group has rallied 23% this year, but a new note cuts the view from attractive to in-line. wereellon and state street also downgraded from overweight to underweight. morgan stanley is forecasting lower growth for the banks. that is your bloomberg business flash. guy: thank you very much indeed. coming up, greece's new prime minister sworn in and trusted to tackle the problems after a decade long financial crisis. quick look at the european markets. this is where we find ourselves, down, but not that much. deutsche bank has a steep decline this afternoon. the markets not confident in this bank's new plan. we will continue to talk about that as well. this is bloomberg. ♪ ♪ guy: from frankfurt, i'm guy johnson. vonnie: in new york, on vonnie quinn. this is -- i am vonnie quinn. this is "bloomberg market

on bloomberg television. maybe they will become your favorites. here's another function you will find useful, quic . it will lead you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. >> china's spies have got a lot of unwanted attention recently, thanks in part to political tensions between china and the u.s. many of those spies work for the country's main intelligence agency, the ministry of state security, or mss. in december 2018, one of china's top tech executives was arrested in canada on a u.s. extradition request. soon after, agents abruptly detained two canadians in china. then, days later, the u.s. publicly named two of their alleged assets as part of their sweeping indictment involving hacking on a global scale. the series of events has people asking, what exactly is the mss? this is your bloomberg quick take on china's elusive spies. compared with the u.s., the mss is something of a mashup. it conducts intelligence

this is bloomberg. coming up, we will talk managing expectations, trade talks restart in shanghai after a three-month stop. will we see any breakthrough at all? no one seems excited to compromise. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. matt: i am miller in berlin. some assets moving today, the asian pacific index rising a little bit, optimism as trade talks kickoff in shanghai. the again gaining strength against the dollar. and the feds pat, is expected to cut. the bloomberg dollar index gaining slightly. the pound fell out of bed yesterday, dropping more than 1%. traders see the no deal risk increasing with boris johnson's rhetoric around wanting to renegotiate the withdrawal agreement. yuan dropped yesterday, more steady today. let's get the bloomberg business flash. citigroup, hundreds of jobs cut in its trading division. that amounts to 10% of the division. have their banks lowest trading revenue in more than a decade. plummeted, three months

this is bloomberg. ♪ s is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. time is not being kind to victoria's secret. decade-longein's relationship with the ceo leslie wexner is weighing on the company, but is not the only issue. they are struggling to find its footing in a changing consumer feelsn, where sex appeal increasingly out of touch in the age of body positivity. german holman has the story. -- jordyn holman has the story. explain the ties between jeffrey epstein and victoria's secret. it was not just leslie wexner and the money. leslie wexner and jeffrey epstein were longtime confidants. epstein was at one point his power of attorney. in addition, epstein would help recruit models for victoria's secret fashion shows, one of their big things to do. there is that connection between the models and the business. when we looked at is what does it mean for victoria's secret to be aligned with epstein at one point, and what does it mean moving forward? vonnie: before we go to the future, who is john the brunel and who is mc2? >> they are a modeling agen

this is "bloomberg markets." it is time for a bloomberg was of. -- exclusive. sales growth at huawei are slumping as the sanctions start to bite. they discussed trade talks with the u.s. and the world's two biggest economies. u.s. don't know when the will make a decision on android ,nd when the decision will come so we have to make preparations for our products. we will evaluate our strategy for the overseas market. if we are not able to use android for the new smartphones, we have the ability to develop our own operating system and ecosystem to become the basis of our services to the customers. >> give us a sense of how fundamental u.s. had to change your supply chains to mitigate some of the pressures. have you completed those changes, or are there more to be done? liang: the entity put into place by the u.s. was disruptive to our supply chain, as we had already made plans to use components from the u.s. for a business. but u.s. supplies suddenly stopped supplying us. we had to make adjustments to our supply chain, including a process or purchasing, manufactu

this is bloomberg. ♪ guy: i am guy johnson. this is bloomberg markets. quite a reaction from the payroll report. badhe payrolls number is news for stocks. markets think the fed may not cut as much as we thought. seeing a pullback. the biggest overseas by you in europe. in the u.s., tech is leading the losses. a major pullback on some of the major industries. we all that over into the bond market. tenure up nine basis points. all the sectors sensitive to the rates like the financials. the best performers of the day, these banks, the big ones in the regional do well when yields are starting to rise. you see the financials, one of the only sectors in the green that otherwise is a sea of red. go, what thatb looks for the fed. we are looking at what is priced into the market in terms of rate cuts for 2019. as you can see in june, we're looking at three cuts for the year. that has been way pulled back. the markets now looking at two 2019. cuts price and for i want to look at individual movers we are at. we had samsung earnings worse than expected. they saw ear

this is bloomberg. ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, michael mckee on fed policy in an uncertain trade world. from brussels, maria tadeo on what comes next in the eu leadership rankling, and from washington kevin cirilli on president trump's plans for the fbi which include troops and tanks and f-15. let's go to two michael mckee. we got trade numbers today. they were not encouraging. michael: the trade numbers widened which shows the president's trade policies are having the opposite effect. what appears to be happening is our exports are depressed, but as companies worry about import restrictions, they bring in more goods, and we had the threatened raise in tariffs for may ron mexico and china. the president till talking about additional tariffs. we are seeing companies bringing goods and that is widening the trade deficit. davi

thank you to bloombergs sonali -- to bloomberg's sonali basak. told employees last week they were completely unaware of the conduct that is the subject of criminal charges against epstein. eanwhile, a spokesperson for rothschild said that bank has no links apollo or epstein. guy:guy: still ahead, air france flying high off of strong second order earnings and the company puts labor squabbles behind it. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "bloomberg markets." positive results from air france klm, bucking the downward trend seen in rival carriers, reporting an increased second quarter profit line. the results boosted by long awaiting freight renewal programs, as this airline puts years of labor woes behind it. joining us from paris is the company's cfo frederic gagey. thank you for spending time with us here at bloomberg today. air france klm has had a difficult few years. these results seem to suggest it has turned a corner. ?s it sustainable frederic: yes, i think it is

this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open, 14 minutes into the session. the ftse is gaining 25%. that could be due -- .25%. that could be due to weakness in the pound. let very little weakness in the cac. let's get individual top stock stories now because there are individual movers out there. for that, we go to dani burger. dani: i think gucci might need to step up efforts because slowing sales at the luxury retailer is part of the reason 8%,ng is down, more than the biggest decline since october 2018. gucci has grown at a breakneck pace, but their tough comparables are slowing this year. therehough lvmh beat, definitely worries for investors. pearson, looks like paper is out. who reads textbooks on paper anymore? digital conversion helping the company raise their outlook. those shares up 7%. that will be their biggest gain since 2018. to the downside, anglo-american reporting earnings. we learned one of their biggest shareholders exited its 20% position. is the feature really stable? blood comes fo

this is bloomberg. ♪ paul: this is bloomberg technology global link. i'm paul allen, alongside shery ahn and bloomberg technology anchor emily chang. let's take a look at the top global tech stories of the day. emily: apple is an advanced talks by intel smartphone modem chip business. the report says a deal would cover a portfolio of patents and staff valued at $1 billion and a deal could be reached in the next week. it would jumpstart apple's push to have more control over developing critical components. microsoft is investing $1 billion in a partnership with the research group open ai. it was cofounded by elon musk and other silicon valley entrepreneurs, and will now use microsoft's azure cloud services. they jointly developed supercomputing technology and work together. phillips is re-digging his global production in a bid to reduce exposure to tariffs. it will now spread the manufacturing of products around the world rather than focusing everything in one market. it recorded the second quarter profits that beat estimates but bracing in more than $2

this is bloomberg. ♪ ♪ manus: it is "bloomberg daybreak: europe." i am manus cranny on the road in zurich. nejra: i am nejra cehic in monday. joining us is -- and annmarie hordern. let's kick it off with you. you have been looking at lending stocks which are finally correcting. what has been impacting the high-quality names? the central bank has been commented on that as well. >> you hit it on the head. an interview of the central bank governor on the bloomberg website as well, but having said that, both friday and monday, we had the private lenders, which are the high-quality lenders, having the book starting to correct. , a word ofgest bank caution on unsecured lenders. that led to these quality names -- thesenot often we see highest quality names in terms of asset quality in india and all of them have started to come up because even those books might have some problems if not now but in the next couple of quarters. anyone and india should watch out for that. indian markets are underperforming and lagging asian counterparts. talk to you. manus: th

coming up, a bloomberg scoop. this is bloomberg. ♪ wanna take your xfi to the next level? now you can with xfi advantage. giving you enhanced performance and protection. when devices are connected to your home's wifi, they're protected. helping keep outsiders from getting inside. and if someone tries, we'll let you know. so you can stream, surf and game all you want, with confidence you can get coverage where you need it most. that's xfi advantage. make your xfi even better. upgrade today. call, click or visit a store. taylor: welcome back to "bloomberg technology." i'm taylor riggs in for emily chang. now to how u.s. chipmakers press the white house to ease the ban on huawei. bloomberg news has learned that president trump's decision to allow u.s. companies to continue selling to huawei followed an extensive lobbying campaign by the semiconductor industry. the main argument -- the blanket ban the trump administration imposed could hurt america's economic security. multiple high-level meetings and a letter to the commerce department, u.s. chipmakers argued for targeted act

this is bloomberg. ♪ vonnie: live from new york, this is bloomberg markets. plans to listd their asian subsidiaries being canned. the beer maker is looking for a its $100 reduce billion debt pile and keep investors happy. joining us now is duncan fox from our london studio. why did they decide to kill the asian listing? asia is where growth is in the beer markets along with young adults and then market. you want to be there and i suppose consolidation was passing them by. putting a new balance sheet on the market makes a lot of sense. it didn't fly unfortunately. vonnie: something went wrong along the way. is this the bankers fault? >> i would think so. they must've gone through and found a range that they thought people were happy with to invest. kongange is $40-47 hong dollars and for whatever reason is the markets have been shaky of late, it didn't quite get away. ory've only suspended it deferred it so it may come back. i'm not quite sure of the hong kong listing rules and how long we need to wait before that comes back. it still seemsstol seeme like m&a

this is "bloomberg markets. was go to our" is -- this is "bloomberg markets." let's go to our stock of the hour now. emma chandra is here with more. today, very nice pop cisco paying $70 a share, a 46% premium on acacia's closing price as of monday. cisco known for the hardware that powers the internet and corporate networks, but really pushing into the software and services sector as a way to fuel further growth. it wants 50% of their revenues to come from software and services by 2020. they are currently at around 30% of revenue, so acacia is the latest in the line of billion-dollar acquisitions that is helping them get there. they are saying that their circuit business, which is heavily focused on the cloud and data centers, is really going to help them get there. cisco is already a big customer. one potential fly in the ointment is china. cisco has been left out of the china market. they don't get a lot of revenues there, but acacia does. this deal will need approval from china. as i said, acacia gives about 29% of revenues from china. zte is its number one

this is bloomberg. ♪ viviana: this is "bloomberg daybreak." there will be a change at the top of bmw. ceo harald kruger telling the german automaker's board he will not seek another term of office. he is set to leave next april. he's been in the job for more than four years. globalar, bmw lost the luxury car lead to mercedes-benz. quarterly profit fell by more than half at samsung. a global industry downturn and trade tensions hurting demand. and high-end chips smartphones have been some of the hardest hit components. u.s. tariffs took effect in may. stylena, a new nasdaq stock trading venue opens july 2. the so-called tech board is seen next alibaba from choosing elsewhere to list. david: u.s. employment has been the bedrock of the economy, but may numbers were disappointing, which puts all the more focus on what happened in june, with expectations for a bounce back, but still a somewhat slowing pace of jobs growth. we welcome here in new york john stoltzfuz, oppenheimer chief investment strategist, and over in london, barings' global investm

this is bloomberg. ♪ ♪ this is bloomberg "surveillance." francine lacqua in london, tom keene off for the fourth of july holiday. focus on bonds, investors say eating -- easy writing policies are breeding a world of low yields. yields drop below zero for the first time. japanification as defined by negative yields is worse in europe then japan itself. dani burger has more. we have bets that low inflation will continue. there is a $13 trillion stockpile of negative yielding debt, most of it from europe. when we look at the numbers, japan has the largest absolute bio with about $6 trillion worth, but when we take it as a percentage of total investment grade debt, switzerland, germany, and finland have higher percentages. bonds,zerland, 50 year the yield is basically at zerob. yieldslds -- bund heading all-time lows. if you want to buy any positive yielding debt, you are out of luck. buty is only at 8%, trending the way of others as we see two year hit lows. the world is a 24%, but trending upwards. 11%,18, it hit a low of now the hopes of syn

this is bloomberg. in new and his 1:00 york, 6:00 in london, 1:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories we are following. more fighting words for the fed. president trump -- on the central bank, calling it misguided. steven oh joins us in a few minutes. not falling far from the tree. jeff williams is more similar to tim cook than steve jobs. critics wonder if williams is up to the task of ceo, especially when it comes to iconic designs. women and we. the growing marijuana industry is increasingly dominated by men. jordyn holman joins us. first, to the markets. abigail doolittle has been watching tech shares. abigail: you are right, today is all about tech and chips. slightly, slipping between small gains and losses. up .3%.500, the nasdaq, 50% of its waiting coming from technology, so some nice outperformance there. the philadelphia semiconductor index, up 1.8%. on pace for its best day since the begin

this is bloomberg. ♪ mark: i'm mark crumpton with bloomberg first word news. a heckler disrupted president trump's speech at an event today in jamestown, virginia, commemorating the 400 anniversary of the rise of american democracy. the person stood up and held hate andt read "deport reunite my family." the man was let out of the site as some members chanted mr. trump's name. hate and reunite mymexican officials sayr of mainly central american migrants traveling through their country to reach the u.s. border has declined by 39% since may. officials say the drop is a result of greater mexican enforcement of its immigration laws as well as investment and job creation in central america. president lopez over door is calling on the central bank to lower interest rates. micklethwait john in his first interview with international media since taking office. they are more cautious about in

this is bloomberg. it is 1:00 p.m. in new york, 6:00 p.m. in london, 1:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are following. radical surgery for deutsche bank. a massive revamp of the german bank, closing its equity business, cutting a fifth of its workforce and scrapping its dividend. sees theays he still need for a lot of things to go right. powell in the line of fire. president trump keeps the pressure on the federal reserve to cut rates as markets price out more rate cuts this year. focus turns to powell's testimony before the house and senate this week. insight on how hedge funds are hedging geopolitical risk, that is later in the hour when rob christian. we are halfway into the monday trading session. taylor riggs is with us. seems to be tech shares. taylor: leading the losses off, the s&p 100, down to the lows of the session. i want to throw the 10-year

this is bloomberg. ♪ paul: this is bloomberg technology global link. i am paul allen in sydney alongside shery ahn in new york and bloomberg technology anchor emily chang in san francisco. let's take a look at the top global tech stories of the day. emily: apple is asking president trump to waive tariffs on components in the upcoming mac pro desktop and plans to relocate production from texas to china. apple does not specifically mention the mac pro, but the parts and dimensions referenced resemble it. the president will show relief if duties would cause severe economic harm. accelerating revenue growth despite the ban in the u.s. up 30% in the first half after managing to maintain critical supplies to maintain production. revenue growth debt is down from 38% in the first quarter. sources say huawei is relieved the situation is not worse. softbank is said to be close to be nancy a second tech investment fund, modeled on the $100 -- $100 billion vision fund. it could be launched this week. the uae's investment fund among to be the backers. softbank work

this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." london.a cehic in matt: i am matt miller in berlin. let's get the bloomberg business flash. for that, we go to debra mao in hong kong. debra: alphabet is reporting revenue that beat expectations, combing concerns -- calming concerns about slowing growth. the google parent announced plans to repurchase $25 billion of the company's class c stock, the biggest buy in the internet giant's history. amazon warns investors one-day delivery has a big price tag. the e-commerce giant's results were marred by a surge in costs tied to shipping. the company's finance chief says that it will put a strain on earnings the rest of the year, but has already led to customers buying more, helping revenue growth rebound. softbank announced a second vision fund, aiming to raise $108 billion, making it even bigger than the first. investors are expected to include apple, microsoft and foxconn. softbank will inject a $38 billion itself, part of masayoshi son's strategy to extend his reign as the most influenti

this is bloomberg. ♪ nejra: this is "bloomberg surveillance." i am nejra cehic in london. >> the price of iron or falling as much as 6%, the largest industry group in china urged the government to investigate the market after prices hit a five-year high with a dam disaster in brazil and bad weather in australia has curtailed iron ore shipments. osram's supervisory and management board accepted a 3.4 billion euro takeover bid from bain capital and carlyle. this ends the german lighting company's relatively brief and contentious period as a standalone enterprise. bain and carlyle are offering 35 euros per share. >> we will receive very good support. a $.26 premium advise the company on the 2020 consensus night, significantly -- if you look at the multiples, we would be in the top digit range and from that perspective -- shoesnnies in running delivering ramen noodles. that is uber's plan for expansion in japan. it might sound ridiculous, but stick with me. the chief executive says the elderly are actually signing up to be uber eats couriers. most w

"bloomberg surveillance." "bloomberg surveillance." this is -- this is "bloomberg surveillance." i'm francine lacqua here in london. tom keene is in new york. i have some pound calls, dollar cause. i have treasuries. the market is trying to figure out what the dovish message means. tom: bruce cassidy joining us in the next hour by telephone. it will be interesting to see how it pushes against the 50 cut basis point -- 50 basis points. francine: we will see what it means for market pricing for the future. let's get straight to the bloomberg first word news. in new york city, here is viviana hurtado. >> nothing seems likely to keep jerome powell from cutting interest rates later this month. after his testimony on capitol hill, traders wonder if he may cut rates more than the quarter-point the market has priced in. powell siding risks to the global outlook and too low inflation. the royal navy coming to the rescue of a british tanker. the u.k. says it was escorting the tanker went three iranian vessels tried to block it. off.ranians were warned iran denies the report. this comes aft

this is bloomberg. ♪ his is bloomberg. ♪ >> this is daybreak: asia. more signs of weakness in the u.s.. sales of new homes rose last month less than forecast. sales climbedhome theo a pace of 646,000, first gain in months. they are still struggling to gain momentum despite low unemployment and low mortgage rates. reports from tokyo suggested bank of japan is divided on the needs to ease policy. on thursday'snd decision from the european central bank. boj board says many members did not see an immediate need for stimulus as demand is waking up -- making up for weak export. amazon is being lauded as a success but also a -- steven mnuchin and said although the company has certain benefits it has destroyed retail across the country. there is no question they have restricted competition and he welcomes the justice department investigating into big tech and its practices. boeing is warning it may slow or temporarily halt production of the 737 max. if the global grounding drags on longer than it anticipated. boeing hopes to win approval to fly the max in the

this is bloomberg. ♪ ♪ bloomberg "surveillance." an exceptionally important fed zurich,ncine lacqua in switzerland. her important conversation with the leadership of credit suisse, we will do that in a moment. scarlet fu leading the fed coverage :00. -- coverage at :00. -- 2:00. here is the l'oreal chief executive officer. paul: makeup in the u.s. is a bit slow. the makeup market for five years was on fire, growing and blooming, so everyone could expect at a certain time it would slow down. it is happening now. onere by number 1 -- number manufacturer and makeup in the u.s. habit seeing a shift in -- are you seeing a shift in are goinge people more towards your competitors? jean-paul: not really. there are many shifts happening everywhere in the u.s. like every country. it depends the channel, the brand. in luxury, there is less consumption in department stores more on e-commerce. it is also important to know to what you want to adapt. and things are short-term it is important to understand the long-term evolution and move the busin

this is bloomberg. ♪ is is bloomberg. ♪ francine: this is "bloomberg surveillance." we are getting a little movement from technology stocks on the back of that trade truce from the u.s. and china. this is giving a nice little left to tech. we are back with john normand from jpmorgan. with the trade truce, a little momentum to the fact, a breather. i think jpmorgan had a call of 1.75% on 10 year yields. does that still hold? >> absolutely. francine: regardless of what happens on trade? >> given that the view is that the tariffs stay in place indefinitely, the fed is going to have to ease a couple of times. you have this story of inflation being too low and the fed trying to achieve higher sustained inflation, i am comfortable with the call that the 10-year yield is going to be below 2%. francine: what does that mean to the rest of the market? that would be quite remarkable. >> usually you would be nervous about the growth outlook, but this is a different kind of environment or part of that low-level of yields is about growth and low inflation. you can be comfortable w

this is bloomberg. ♪ viviana: this is "bloomberg daybreak." two of the world's largest automakers are teaming up on self driving cars. volkswagen will invest in ford's autonomous car partner argo at a valuation of about $7 billion. audi vw will fold its self-driving unit into argo. mercedes benz parent daimler issuing its fourth profit warning in just over a year. earnings will be significantly below last year's level, daimler blaming the cost of a recall to deal with faulty airbags. it also has higher expenses stemming from the diesel emissions scandal. bloomberg has learned budweiser brewing company aipac is weighing a number of options, one being to relaunch a hong kong offering at a different date. retailers can't find enough demand to comparably priced the deal within the market range. that is your bloomberg business flash. david: trade war effects on china and trade data out overnight, with both imports and exports from china down year-over-year. we welcome now enda curran, bloomberg's chief asia correspondent. these are disappointing nu

this is bloomberg. ♪ bloomberg. ♪ amanda: j.p. morgan chase snaps a three-year streak of quarterly interest raises in its quarterly income. they say they will fall in the second half of 2019. his is a point of interest for many banks reporting. we have a closer look with jeff harte, principal with sandler o'neill. obviously, we knew that interest margin would be a concern in the quarter. how do you treat that when you look out to the quarters ahead? thing to do.ugh we have been in a rising rate environment for a while now. balance sheets growing, spreads increasing. looking forward, one of the things we are facing a is what is the fed going to end of doing question mark for a while it was hikes, then it became neutral, and then three or four cuts. now we are pricing in a cut or two. the way you have to look at it as an investor, what is the worst and best case scenarios? let's say the fud cost three times, how bad could it get? if they don't cut at all, how good could it get? if you come in the middle of that range for the big ban

this is bloomberg. ♪ viviana: this is bloomberg surveillance. let's get the bloomberg business flash. in europe, car sales resume their downward spiral. 2.9%, thehey fell worst monthly decline since december. at the years halfway mark, europe is facing the second annual sales drop. are cities been spared a profit .arning bmw reported a quarterly loss. it is a rare setback for ericsson's turnaround efforts. the swedish network equipment were down estimates for the first time in six quarters. networks would5g weigh on profits. elon musk says the startup narrow link is ready to begin brain surgery. they want to implant paralyzed patients with electrodes. it will elect them work computers with their minds. the process has only been tested on rats. to start trials on humans, they need u.s. government approval. >> a special guest, the goldman sachs asset management. they bring years of work and equity and derivatives with that position. i want to talk about the arch issue out there. it is about people trying to catch up or people that have not partici

this is bloomberg. ♪ anna: welcome back, "bloomberg markets: the european open." 7:53 in london. six minutes till the start of the trading day in europe. let's get stocks we are watching around the east -- newsroom. page group, and bayer. i think we've had gloomy news, downgrades out of the sector. >> it comes after yesterday, a on the from basf chemicals side based on macro economic conditions. today we had another warning that is not companies this effect. operating saying the profit will be on the low end of expectations. concerns havet led to profit decline around 2.4% in the last quarter but i've looked at the numbers and regionlook at it, the declined 8.7% in terms of profit growth from around 9.9% in the last quarter. it is not just the u.k. that pagegroup is warning not, it is the entire european region and it is a huge read across the company's. -- companies. it could be a big sector movement in terms of this read across. ran stead was already down. dani, let's come to you on bayer. dani: they have been planning to sell their animal health care business, mids from privat

that is your bloomberg -- bloomberg business flash. nejra: debra mao, thank you. let's update you on a story. outave comments trickling from the south korean presidential official on the ongoing dispute with japan. to bring you some lines, south korea proposing a probe into the japan claims on illegal shipments. south korea, also saying japan should apologize if it can't provide proof and south korea demanding japan to provide clear proof of violations. a have this briefing, presidential official saint south korea expressed the regret over irresponsible comments by japanese officials on allegations south korea didn't abide by sanctions on north korea. japan and south korea, meeting in tokyo for their first face-to-face discussions today over the japanese export controls implemented last week. we are waiting for an explanation from tokyo, over the curbs but not necessarily expecting any negotiations today as such. sticking with trade, donald trump has once again hit out at china for not following through on promises. he says china hasn't increased purchases of amer