More coming up with stefano pe ssina. A mixed bag when it comes to equities yesterday. Weighing the culmination of the two date fed meeting. Currencies rising against the dollar. Strategists are revising their estimate for the pound after last week. The boe signaling it would withdraw stimulus after the 3 increase on thursday. The sterling is the blue line here. The white line is the dollar. There is a gap between the two. Theirts have all revised evaluations since thursday. The market is now pricing in at pricing in a 61 chance rate hike in november. Keep an eye on the forecasts. We are getting some data out of germany, Investor Confidence is rising which is a sign that concerns over the strengthening euro is dissipating somewhat. The euro showing signs of stabilizing after climbing 14 against the dollar. Closelypolicymakers are Monitoring Exchange elements. The countrys economy is expected to continue with its strong expansion in the third quarter. The pickup in german Investor Confidence, i thought we should have a look at the stock of the Swiss National bank. It does have shares, and since january they have more than doubled. 48 is held by private shareholders. , the increase is a little bit bewildering, but according to one economist, a shareholder, fmb says the only explanation is that it is being traded against the bund. We are going to be keeping an eye on this stock, but it is fairly rarely traded. Looking over in the u. S. , julie . Abigail very little changed julie very little change in the markets as investors await the fed wind down. M ae is a lot of merger, action going on today. Sprint and tmobile among them. Omberg has confirmed that this is according to a matter with direct knowledge of the matter. We earlier reported that the two were in the final weeks of talks to merge. According to our reporting, they are discussing a stock for stock deal which is still likely weeks away from completion. Both of the stocks are rising. Sprint in particular is rising. 5 . Tmobile is up 4. 6 . The merger is spelling some trouble for the cell tower operators which are mostly lower today. We are looking at america tower which is lower as well. Powerapparently a pricing issue. If you go from three main forless operators or from operators to three operators rather, you will see a change in fromng in terms of leases what they get from the cell tower operators. It could put some pressure on the lease rates. Finally, we are looking at Auto Insurance providers. Progressive is leading here following the news about catastrophe losses. 90 are from hurricane harvey. Analysts felt that was much lower than estimated. Autoimplies that catastrophe losses over all for the industry will be about 2. 5 billion which is still well below earlier estimates. We will see what some of these other Companies Say as they start to report their numbers as well. Vonnie julie, thank you for that look at the markets. Lets get back to more on President Trumps first addressed to the United Nations general assembly. It included a strong warning to north korea about their nuclear program. Pres. Trump rocket man is on a Suicide Mission for himself and his regime. The United States is ready, willing, and able, but hopefully this will not be necessary. Vonnie joining us now from washington is jonathan. He previously served as Senate Majority leader, and mitch ipal economicrinc policy adviser. So, what stood out to you from that speech . Of things. I think there was the implied threat against north korea. The question is what will trigger u. S. Action . Isseems like the u. S. Prepared to act if it needs to in order to defend itself. The second thing is that this is trump laying out a vision of Foreign Policy that respects sovereignty but puts americas interests first. Very little criticism of the last u. S. Administration. Not much mention of resident obama. Of president obama. He did not really draw on what previous administrations have done. This seems to be a more positive vision he has laid out. Vonnie lets take that first point you made about the president putting American Economic interests first while respecting other nations interest, that is how he phrased it, but how will that end out where everyone is in a winwin situation . I think one of the challenges in what he is trying to say is that we want other nations to work with us to achieve common goals. I think he looks at it from ap are incentivebased from a pure incentivebased viewpoint. He is saying that the chinese need to work with the u. S. To contain north korea and reform their Economic System to help u. S. Workers achieve their goals. So, there is some tension there, but i do not think it is in totally compatible things. Mark he said that the u. N. To often concerned itself with bureaucracy and process. Does it have the stomach to reform itself . Trump is not the first president who has said he wants to reform the u. N. To extent, that is fairly common. It is one of the typical planks from the u. S. Ambassador. They would love to see reform there. Trump is a little more unpredictable and can be more aggressive than previous president s can be in forcing reform, but this is an institution with layers of bureaucracy on top of layers of bureaucracy. The best you can hope for is to increase other countries financial commitment. However, this is certainly better than on the campaign trail where he was much more critical. Iran, is the u. S. Is trump bona explicate himself trump gonna explicate himself from the nuclear deal . Our expectation is that the nuclear deal will stay in place, but there is about a 40 chance he might withdraw. The reason he might do it is to int leverage over the iran ans to stop them from developing Nuclear Weapons. It is not exactly clear if the u. S. Will stay in this deal, but if we pull out, then the u. S. Will be rather isolated and europeans are not likely to follow suit. Vonnie thank you, jonathan. Mark we are coming up on the european close. Clearance from the regulators for this deal with rite aid. We are going to be joined from washington for an exclusive interview. This is bloomberg. Mark live from london, i am mark barton. We are counting down to the european close. Vonnie in new york, i am vonnie quinn. Walgreens got the green light today from regulators as it tries to buy more than 1900 stores and other assets from rite aid. David gura set down with an exclusive for an exclusive interview with the man behind this hardwon the three. They spoke at a hardwon victory. They spoke at a Bloomberg Live event. Take a listen. I have been surprised by the when we decided to do this deal, we were expecting, of to be careful with the scrutiny. The deep scrutiny of what we were doing, but we were confident that, at the end, the be in the interests customers. Ents, the so, we have been a little surprised by the difficulties that we have found and by the length of the process. Deale had to structure the to give an indication that we ftc was givinghe thinking that they would approve of us. In the end, we had the deal which i am quite pleased about. Had was the deal that i proposed to rite aid. To sell to us a certain number of stores. If it was not in the range we did not want, we would never have done the deal consciously. David you say this is the deal you wanted. Do you regret going about it the way you did the first time . Aid wanteduse rite to sell the company, rightly so. So, they were acting in the interest of their shareholders. We were trying to do what was best for us as well. They were not open to doing the deal, and we followed them, and we read structured we restructured the deal according difficulties we found along our journey. Wasave come to a deal which similar to what we have aiming at initially. Of course, you see that this deal is easier for us. To organizewe have integrate a and full company. On that end, it will take a little bit more time, because the stores will not be in our network day one. It will take some time to integrate the stores one by one. It cannot happen overnight. ,t will be a little slow, but in the end, i think it is a little more interesting for our company. David can you give me an idea of how you came up with this restructured deal . What indications did you get from the ftc . What did you figure out would be more open than what was in the past proposal . Was what we had structured was not all particularly like i the ftc l ftc, so we had to say to change the structure of the deal. So, we decided to do an asset deal. We took into account the stores uyat ftc did not like us to b for complication reasons. So, we reduced the deal to a size which was making sense for us but also for rite aid. Rational footprint of the stores, a little more or a little less, because they have to restructure and now read a debt readapt. For a while, they needed to cut a certain number of stores, so we tried to do something rational. It was my understanding that there was a commissioner who did not vote in favor. Do you make much of that . The fact it was not approved unanimously . I do not know what the dynamic was like behind the scenes. I know that the deal has gone people had note, voted, but maybe i am wrong. That is my understanding. It is possible that there were unanimity. Everyone has an opinion, and of course the other people did not see this deal in the interest of the patients, the customers as we do. Aid needed to do something, and sometimes doing nothing or blocking them could have been much worse than taking action which is not perfect. David i imagine you will talk with other ceos about what your takeaway is on the regulatory landscape in washington. The is your sense of landscape for dealmaking right now in washington, d. C. After going through this process . I cannot say that the environment is particularly business friendly. U. S. Relatively new to the ofave been chief executive walgreens for about 3 three about three years now. I had ao say that different expectation. I had the expectation that it would be more is this friendly, but now this is a country where it seems people are aware. That with the same ats, you can make least, i was saying that before brexit. Be 10 in thed u. S. It is a fantastic country in which to work, but this regulation may not have much to do with the administration. You do have to spend a lot of money and a lot of time. That was Stefano Pessina speaking exclusively with david gura. In theup, a huge line of world of politics and business. The lineup includes this french president emmanuel macron. This is bloomberg. Mark live from london, i am mark with the european close six minutes away. Vonnie live in new york, i am vonnie quinn. Government ended up selling 3 million worth of 15 year bonds. It was just over 17. 3 . I spoke with the ukrainian finance minister about the sale. Whether or notut more bond issues were coming this year. Heart of the reduction was to remove this pressure to sell them at 20 maturitys. That was taken into account by the rating agencies as one of the risks for the country. Approximately 1. 6 billion out of 3 billion goes to removing this from 19 and 2020 , in terms of the cash component, it is 1. 3 billion. This is pretty much in line with our rates for this year. Next year, we will see where we will be. Also, this cash important is in line with our investors. Anotherr, we will have 2 billion to be raised from the markets, but these are all thats marx. Vonnie that was an excerpt from my interview with the ukrainian finance minister. You can find more online. Mark european close coming up. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Live from london and new york, this is the european close. I am mark barton with vonnie quinn. Stocks finishing just a little bit higher than yesterday. It is being led by telecom, oil and gas, and investors awaiting the end of the today fed meeting. They said they sold 2. 5 billion shares billion euros worth of shares in heineken. Says they look at heineken as a favorable tax treatment as provided by their home government repatriation laws. The sale follows a 23 increase in heineken shares this year. Shares in heineken are down 3. 7 today. Yesterday, i spoke about the portugal rating upgrade from the global ratings yesterday. It caused a big move down in the 10 year yield yesterday. The year the yield premium of these 10 years is plunging yesterday. Closest to their lowest levels since april 2015. This chart is fascinating to see the portugalgerman spread. It is very similar now to the italiangerman spread back in 2012. The yield on the portuguese tenyear at the height of the crisis, the sovereign debt crisis. At the after the boe last week warned that rates my get , aght in the coming month hike is expected in the Fourth Corner quarter. It is up from three last month. It could climb as economists start to age what, when, and how the boe could react to data. Some of the data coming out of europe, money markets now aicing in a 61 chance of rate hike in november. November would be the logical time to hike rates. Look at february next year. Onwas fully priced in thursday. It will probably be the allimportant boe meeting in november. Vonnie with everything going on, we still mentioned the twoday meeting going on. We will get the press conference tomorrow. You are seeing a pretty quiet market right here in the u. S. Below 10 in little while ago. The yen is unchanged right now. That is in indication in itself that the dollar is not moving too much. Yields on the tenure at 2. 24 . Crude oil is above 50 a barrel this morning, but it is now back down to 49. 80. We seeing a bit of a mixed across the board in the movers. We have seen some interesting indicators of what is going on around the world including some of those popular trades. Some guilt movement as yield movement as well and some of the referee european country periphery European Countries is interesting as well. Earlier, bloomberg daybreak caught up with him. They started by asking him what he would do in theresa mays shoes about worst johnson and his insubordination about about Boris Johnson and his insubordination about brexit policy. I would not be happy. I have a difficult enough time managing my own cabinet. I will not get onto her back about how she deals with worst johnson. With Boris Johnson. Withifficulty i have is his views, this idea that the british is going to crash out of europe and become some low tax, deregulated, offshore haven. It is not going to happen. The risk that we face is that if we do this hard brexit, the economy will suffer. Public services will be under threat, and you might even end up with a u. K. The has a labor government further to the left than any other labor government has ever been. I would still like to see a more rational debate happen with brexit and possibly denver from the path we are on. I have been very frank about this. A rightwing populist punch with brexit, and a leftwing populist punch with a director terry with a dereg look for a program that could do some damage. What is most important to address when it comes to immigration, the Free Movement of people, how important is that to the british people . What happens with Financial Services . Brexit, ire to do would like to see a state in the Single Market in the customs union. We do trades with countries covered by trade Agreements Inside a Single Market. I think we will find it very hard to be actors in europe on is aasis that london Financial Sector at the moment. What we need to explain to people are the consequences of these different options. Mark former Prime Minister of the u. K. , tony blair speaking with us today. He was discussing the widening gap between theresa may and foreign secretary Boris Johnson. What is more likely, force johnson Boris Johnson resigns or he is pushed . He has indicated that he might resign by the weekend if his great vision of a wonderful brexit does not go through. Cannot sack him. She does not have a majority. Government is holding on, but it is holding on by a very thin thread. What she does not want is a crisis. , the 400nteresting word paragraph did not happen by accident. Support,y has some some members are getting behind him. Suggestion that the tory party is not actually behind him, so he has kind of damage consult a little bit. Mark a Cabinet Meeting on thursday. What is that special Cabinet Meeting all about . From what i am hearing, it is kind of a last canvassing view of the cabinet on brexit. Friday littered on delivered on friday, it is aimed at moving things on, but it is hoping that things will progress to the next stage, i. E. Lets talk trade. Think they are still a little i think some are still bewildered about the news of what is going on over here. Vonnie what needs to be said on friday to help move things along . It depends on what she addresses. On the one hand, she needs to be conciliatory towards the eu. We would like to see a bit of that, and perhaps also show that after her lancaster house speech, the world has changed somewhat. Britain is not quite heading for the categorical vision of brexit that it was aiming for back then. At the same time, she is going those peopleuare back home in her own cabinet who want this unequivocal, hard brexit. There is going to be a bit of a difficult balancing act. Finishing up with tony blairs interview with us earlier, you wonder what he fears more on a hard brexit or a. Abor government for a former Prime Minister cannot back his own party. Necessarily new, but it is always unusual. , with a man like tony blair he is stuck between a rock and a hard place at the moment. He has put forward a pretty uncover amazing view of brexit pretty uncompromising view of brexit. Again, it is not likely to offer the greatest stability that someone like tony blair with the four would look for. Yes, it is not great. Mark thank you for joining us. Vonnie time now for the first word news. Lets check in with courtney. Some tough talk from the President Trump at the United Nations. The president warned that the United States would totally destroyed north korea if its pursuit of Nuclear Weapons turns to war. President trump dismissively referred to kim jongun as rocket man. Pres. Trump rocket man is on a Suicide Mission for himself and his regime. The United States is ready, willing, and able. Hopefully, this will not be necessary. President trump said that irans Weapons Program also poses a threat. For the first time in three weeks for the third time in a few weeks, the islands are once again bracing for another hurricane. Maria has already caused widespread damage to the island of dominica. Forhurricane is now heading perrigo and the u. S. And British Virgin islands. U. S. Investigators were authorized to wiretap Donald TrumpsForeign Campaign met former Campaign Minister before and after former Campaign Leader before and after the election. Paul manafort is told he will be indicted. Senate republicans are making a last ditch effort to repeal obamacare. They will need to act by the end of september 2 use a fast track procedure to keep democrats from blocking it. Some republicans are still withholding their support or rejecting it out right. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. Vonnie coming up, u. S. Treasury yields may be the opposite of what the markets are thinking when the fed begins its unwind. This is bloomberg. Live from london and new york, i am mark barton. Vonnie and i am vonnie quinn. This is the european close on bloomberg markets. the Company Preparing for its first investigate in almost five years. First investor day in almost five years. Julie hyman is here with the details. Julie it seems like that is why the stock is falling. It is the worstperforming stock in the s p 500 today. 2000 21, they are forecasting a share of just five dollars. Enterprise revenue at 43 billion. In operating income of 1. 9 two 2 billion, and on that last front it is not that big of an increase. Im looking at the function on financial analysis. This is the operating income on the past 10 years, almost 10 years. You can see the operating income in fiscal year 2017 was about 1. 76 billion. That is the bar i am highlighting here. You are not seeing that big of an increase going out to 2021. Ujav s say they they have also read estimated their cost savings target. What you are going to see is perhaps more by that boosting more buy back boosting the bottom line and not Revenue Growth which is not necessarily a good thing. Vonnie but sales have been strong lately, havent they . If you look at what has happened with their sales growth, Charles Allen pointed out that the last quarter was the first in 10 years, as seen on the right side of your screen, that all of the companys segments saw increases in sales. However, the company itself reiterated that this would not last. It was said not to get used to this sort of comparable sales performance. In terms of what best buy is doing from here, they are trying to beef up their smart home segment. Trying to offer more appliances and Internet Connectivity appliances. Looking at the breakdown of revenue by different types of products. Charles allen of Bloomberg Intelligence says he is not so interested in hearing how the company is going to get appliance sales up to 25 . I think in the most recent year, it was only at about 9 . He is looking longterm for the strategy. More on the smart Home Appliance sale. We will hear what best buy has to say. Vonnie julie, thank you. That was julie hyman with our stock mover of the hour. Janet yellen is excited to make some sort of announcement about Balance Sheet reduction at tomorrows fomc decision. Thenstory is any guide, analyst could be wrong that the u. S. Treasury yields will go up. The opposite could be true. Is brian. Now explain to us this think we cannot seem to reconcile. The Balance Sheet is going to start to unwind, but traders are not quite sure which way it will go. Quantitative easing is like this bond buying system should you would think that when the fed comes in to buy a bunch of these treasuries that yields would fall. However, yields have gone up in the past. So now as they begin their unwind, most people are expecting the yield to go up while some are arguing that they might actually be able to fall. Vonnie we are looking at the charts which shows qe versus the 10 year. Are anticipating one thing, and it almost does another. You can almost see it after periods where the qe actually stops, you can see the yield is following on the 10 year treasuries. Where thes a period qe is going to be reduced and the unwind is happening. The question is, is it possible for yields to fall or stay where they are . The private market may need to absorb more of the treasuries market. Mark it is possible because the economy is showing few signs of returning to precrisis growth levels. That is also interesting. The fed is tightening at a time when inflation is still below their 2 target. We note gdp is expected to be targeted at 2. 2 which is fine but not anything right home about. People are trying to reconcile where we can get this higher yield forecast that so many have been calling for this whole year. There are just not a points that hint at the unwind. The growth is not necessarily recipe for higher yields. Vonnie what this tells you is that it is a statement on the health, the state of the economy. I think what a lot of people miss when thinking about the 10 year treasury yield for example is that it is an outlook not just for the next couple of years, but it is a outlook for 10 years in the future. We have been in expansion for about eight years now, since 2009, so people are talking about a recession possibility which we might see in a month or two years. It is going to be in your tenyear forecast. It will play a role, and that is why people are really hesitant to think that this fed decision is going to be what ultimately will drive the yields higher. Vonnie a warning shot being sounded there for you. Mark time for the Bloomberg Business flash. Plansle is hashing out for a possible merger according to a person with direct knowledge of the matter. Wireless companies have agreed that tmobiles paired Parent Company would have control. Sprints last month as negotiating period expired. 35 billion in debt. On aorlds largest maker certain type of drugs may see a Credit Rating downgrade. That is your latest bloomberg is this flash. Bloomberg business flash. Coming up, china in germany, the battle rages on. This is bloomberg. Mark time for our global battle of the charts. Investors can always access these charts on the bloomberg by running the features at the bottom of your screen. Kicking things off, alexandra . General election on sunday, lets take a look at liquidity and volatility. Traders seem to not be fretting about the election very much. As you can see, we have volatility on the dax index dropping off it is nothing like what we saw before the french election. Before the french election, volatility soared, but that is now not the case because liquidity investors are pricing onangela merkels block sunday. There is some volatility about which coalition she will govern under, but that she will retain her chair position is being priced in right now. Not whole lot of jitters before the german election. Mark vonnie, german investors, the calm before the election. What do you have . That wet to point out have seen some very interesting moves with the yuan over the past couple of weeks including a massive strengthening. You can see that both the yuan and the yuan vs. The basket of currencies, it was strengthening so much that they intervene. Goldman sachs out with a note that said that the strengthening of the yuan would have taken 1 of gdp growth out of the quarterly gdp growth good you can see why they wanted to divert that a little bit. Mark i do like that chart. It is something we have not focused on too much. However, given the election in germany, that is actually the chart i was going to show. Alexandra, we seem to be thinking alike today. So, i am going to give it to her. Two great charts. Apple ceo tim cook coming up. This is bloomberg. Vonnie it is noon in new york and midnight in hong kong. I am vonnie quinn. Welcome to bloomberg markets. At bloomberg World Headquarters in new york, here are the top stories on the bloomberg and around the world. President trump making his longawaited to view at the uns general assembly. His fiery remarks regarding north korea, and what he means about the possibility for a diplomatic solution with pyongyang. Decision. D policy we will speak with eric stein. Ofs, Roger Crandall massachusetts Mutual Life Insurance will share his investing outlook and more. For now, lets get a check on the markets julie hyman. Investors seem to be a little bit cautious ahead of the fomc. Julie