Francine welcome to the pulse. I am francine lacqua. Manus i am manus cranny. Next 40 course of the minutes, we are joined by unicredit chief, it is erik nilsson in the house. Francine first, china stocks posted the biggest two day climb. Manus it rallied on news the government is considering shipping two major companies. Francine after data shows a large drop in it worse last month with the steepest decline in nearly six years. Curranef economist enda joins us. What do the figures tell us about economy . Enda curran a very soft reading. Some of chinas biggest customers. Illustrate how soft chinas economy is when you strip away the impact of the big stockmarket boom we had in the second quarter. Left with a lot of sluggish areas like manufacturing and factories and real estate sector. Car sales falling for the first time in 17 years. To one ofn on exports the big engines of growth for china. Into the second half of the year, pretty sluggish outlook right now. Manus lets talk about the currency. Is it beginning to become a problem . Could that be one of the arsenal of instruments that the pboc begins to focus on more . Enda curran well, it must be very tempting given how they like to meddle in the stock market and the temptation surely devaluing the exchange rate. On a basis, hurting their exporters and shipments to the likes of japan. The u. S. Problems. It will help exporters but the problem if you do that, inmate trigger capital it might trigger capital outflow. A Week Exchange what not solve everything. It would help exporters build the temptation will be there for policymakers going forward. Francine how will policymakers respond to the data . What are we expecting . They have a well, lot of convention Monetary Policy left to cut Interest Rates and also take steps to promote lending by cutting requirements. But also beyond that, a lot of like in targeted lending we saw the bank of england and others do. Re recapitalizing and in the banks to issue construction bonds to Fund Projects right around the country ticket projects off the ground in a higher labor and ensure the country meets the 7 growth target. Keep an eye on the policy banks and how money, billions they spent on Infrastructure Projects going forward. For the bank enda curran, bloombergs chief francine enda curran, bloombergs chief asian economies. The show. Come to your thoughts out of the way, and a lot of data this week and some interviews with the fed. What worms and the most of moment . Disinflation . Oil prices . What worries you the most at the moment . Guest china. Low inflation has proven to be fantastic. Deflation risk is not there. Ist a low inflation does increase his people really and drives the economy. The one thing that worries me the most is china. We went through it. Not the mall and adjustment issues as they are facing print not small and adjustment issues they are facing that they do not seem to grasp. Francine we know they were going for a lower phase. Having to goliking 180. What changing your mind . Has it always been there . The factor there is volatility in the market . Erik nielsen on china, i do not know much has changed. The number of people talking about this big imbalance in the credit numbers. People would know china had to slow from 6 , 7 to 2 or 3 . The thing we do not know is how fast it comes and the response. Right now, it feels like it goes further than we thought. And this volatility in the market. A bit of a sideshow cooked compared to the fundamentals. Manus a couple weeks ago, about the stock market. From a retail perspective within china. Here we are, what it seems is qe, china style. Shovel ready lending. What do you make of the policy responses . Are you concerned about the desperate nature . Or i am misinterpreting . Worried. Sen i am what it shows is they do not see where the problem is pretty the dentist to its percent of gdp. On and off again do not see the problem. That gb the debt is 200 of gdp. Lets build more highways and what have you and that is not the solution. They have to bring the data numbers down to find another way of growing the economy. Private consumption is the obvious and maybe exports. What we missed on the fx is they really want to get currency at the imf. Francine if this is your number one concern and the said the feds number one concern or number two after employment. Will they wait to hike rates . we will know this afternoon when you interviews stan fisher. [laughter] erik nielsen my view is the u. S. Numbers are across the board. If you look at some of the 10, 12 indicators for labor market, all of the things dancing around, the balance. It is screaming for rate hikes. Number one, will it go september . He will not tell you. The question, is it a risk behind the curve . T would have to move faster. Hey remember, in economy that does not matter if they go in july or december whatever. Is at the speed thereafter. Manus you will stay with us. Erik nielsen chief globe economist at unicredit. He stays with us. What else is on our radar. Francine lets start with turkey. Turkish forces have exchanged fire with militants at istanbul. Seven people including five policemen were wounded. That is according to the staterun agency. Turk television said two men opened fire. Greek government is aiming to conclude talks on a third Bailout Program by tomorrow. Tot will lead enough time have the deal families have the deal and release for an august payment. Francine a watchdog looking at was cyberattacks all mobile retailer. The personal details and Bank Information of as many as two point met 2 million customers may have been access. Manus Warren Buffett may be on the verge of one of the reasons acquisitions. He is in talks to talk with Precision Castparts for it makes equipment for our space and energy industries. Cap ofriday, a market about 27 billion. Francine the u. K. Foreign Ministry Said african migrants many try to enter. A visit to singapore yesterday and Philip Hammond said so long as their own large number of desperate migrants there will always be a threat to the security. Live pictures. The italian coast guard. Around 400rrying migrants rescued in the Mediterranean Sea on the docks at the sicily. The recurrent images pumped out around europe and all around greece. About ad about yesterday afternoon. Francine on top of the news across europe, a serious concern on how you deal with very desperate people. Saying, the eu was not throw their weight around it. A more concerted effort. Manus stay with bloomberg. Later on today, will be speaking with the Federal Reserve vice chairman families stanley alaner and former chairman greenspan pretty he knows about raising rates and implications. You do not want to miss of those interviews. Francine and brings us into the twitter question. What would you ask Stanley Fischer . You can tweet us. We alsost host have our guest host. Manus the latest on the shootings in istanbul. Francine welcome back to the pulse. Manus Turkish Security forces have exchanged fire with militants istanbul. Hours after a Police Station was attacked by a car bomb. Reporterng in our standing by in istanbul. Elliott gotkine is our middle editor enjoys is in the studio. Tell us what you know at the moment. Turkish Security Forces have reportedly killed 2 militants in istanbul. A car bomb targets a Police Station. Outskirts ofn the the city and one policeman and has reportedly been killed. 10 injured. The clash occurred when police went to investigate the scene and were fired upon. Were hearing neighboring buildings and cars have also been damaged. Fire crews and police ambulances are in the area. It is unclear who is responsible for the attack. And a separate incident today, two people opened fire at the u. S. Consulate in is simple. Police return fire. Consulate in instable. One of them, a woman was arrested. It is closed until further notice. Francine thank you for that. Elliott is here. Put it into context. It is very unclear. No one is claimed to the attacks and a lot of incidents. Are they linked or not . Who is we do not know responsible at the u. S. Consulate and the Police Station. It could be from different groups area a different groups. And the southeast of the country, a military helicopter came under fire from rockets and longrange weapons. A soldier in the helicopter was wounded and has since it died. Three incidents so far today. Incidents which authorities are blaming all militants from the Workers Party which is a militant group which turkey and the u. S. Considers the turkish terrorist organization. We do not know this responsible for the other one. Theres been a uptick in violence. Italy after an attack last month, turkey launched airstrikes against militants over the border in syria. An attack against members of the pkk. Up until i supposed recent hass, turkey and the pkk had a truce. There been peace talks. It seems to be suspended because of the turkish elections. What turkey finds itself in now is wearable for it was sitting this one out and not having the beef with Islamic State and a. Ruce with the pkk now, it seems to be fighting again on 2 for us. Francine Elliott Gotkine there. Manus can tsipras finalize greeces third bail out . The latest from athens. Francine welcome back to the pulse. Manus the greek government is hoping to complete a bail out negotiation this week. The creditors are expected to finalize by tomorrow. Francine after a 3. 2 billion euro repayment is looming. The latest from mark spence than. Why is greece presenting such an optimistic timeline . Certainly, if it gets through parliament, at this point, well behind it. Case butt always the it took for position that it needed to agree to reach an agreement with creditors. A very bitter pill to swallow. After making the decision. Wanted to be done with it and move on. Thats the governments position. Effective economy has been in and politics in this over the negotiations says in the beginning of the year has been crippling. The greek point of view, the last thing they want is to meet the ecb redemption when another bridge loan. Which is then raises the prospect of more months of negotiations rather than dealing with a next set of issues. Like for example, from tsipras point of view. Of party andseries call a new elections was everything with the creditors is in agreement. He cannot do that until then. Will they get a deal done . In terms ofsson the actual negotiation, a couple of sticking points. One of which have to deal with loans a various banks creating a bad bank. Prefer it goes through funds. It does perhaps the flip side of what i was optimistict greek about getting it done. Some of the noise from germany saying, hey, what is the rush appeared rush. We could do all bridge loan and prolonged it for a few months to get up comprehensive deal done. Of course, the greek point of view and comprehensive what it means is probably more conditions put in before a final deal can be put together. Ands Marcus Bensasson athens. Thank you for setting the stage for this negotiations. Francine we are back with erik nielsen. Greece, how much time do you worry about greece . It does not seem to have an impact on the market or rest of europe. Erik nielsen i spend very little time because it does not really matter. In my spare time, a lot of time because it is interesting. How europe deals with the sort of problems. From where life, outside of greece. Europe is not really dealing with its problems, is it . Admitre saying we have to it is not going to work. A fairly low baseline of trying to solve the problem. The imf does not blink and the believe it is going to work and the finns. Why should we . i think people are too pessimistic or i would not write it off. The Previous Program delivery growth eventually. Gdp was too high. They had borrow money. Gdp had to calm down. The program worked. We got positive growth and employment growth. About to see the success of this program coming along. We could debate. Also the fabric cannot hold it because of the government and the mess and the world. Now, in a new program where there will be less fiscal tightening because the primary as far as we know. Secondly, the euro is a lot weaker than the Previous Programs. And trading partners in europe are doing better than that period of time. Why are we so sure this problem does it work . Better external environment. I am not sure it will but i would not write it all. Francine if we do not get debt relief, does it mean you still think there is no chance greece leaving they euro by the end of the year . People not to worry now but in six months, the exact same discussion. You are optimistic it will work . You are not taking into account the possible grexit . Erik nielsen i do not think it they will lead. They decided as they do not like it and rightly so. That is really not a very risk to be honest. Think it would i always hang over us. On the debt relief, the important thing is the Debt Service Payments is not high. Paying less as a share of and gdp as other countries. You have to use it when you have a these bikes down the road that have to be dealt with. They will be dealt with ideally. When you have these spikes down the road that have to be dealt with. People keep saying you have debt relief because the stock number. Manus even though it is a huge issue, are you a debt relief man . Erik nielsen you need debt relief. You need a bad bank. Those are a little different. Closely related. The banks need to be cleaned up very severely. Asouple of them probably not in good shape as they shoot. It is pretty horrific if you ran a bank in greece. Lets be honest. On the debt side, sir relief. That is not so urgent. The bank relief has to happen this year. On the debt side, a relief. Francine Enda Curran Erik Nielsen stays with us. First debate we talk about Warren Buffett and what could be his biggest deal to date. Talk about we Warren Buffett and what could be his biggest deal to date. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Francine welcome back to the pulse. I am francine lacqua. Manus i am manus cranny. Some of our top headlines. Turkish Security Forces have a change fire with militants in istanbul hours after Police Station was attacked while carbone. Five policemen were wounded in the attack. Thats according to the staterun agency. Cnn Turk Television said two gunmen opened fire at the u. S. Consulate in a separate attack. Francine gunfire has interrupted protest in ferguson, missouri. It is the oneyear anniversary of the shooting by a white Police Officer of unarmed black teenager michael brown. Manus chinese stocks posted a gain amid speculation that there will be mergers among state owned companies. The country is expected to emerge the two big and shipping companies. Francine data out show slowing demand for chinese goods. Producer prices fell to the lowest level since 2009 and exports dropped by 8 . Manus Warren Buffett mayville the verge of one of the biggest acquisitions of his career. Y precisionlks to bu castparts. Capf friday, had a market of 27 billion. Francine more on that with elliott goggin. Where does it rank with the others . Outott assuming it goes and around 30 billion, it would rank as number two. Some reports suggesting it could be his biggest ever depend on the price per if it is 30 billion, behind the purchase of the Burlington Northern santa fe train at 36 billion. That included 9 billion of debt. What we can tell, Precision Castparts has 4 billion in debt. If youd included in the 30 billion purchase. One of its biggest evers. And half of the cash pile. About 37hathaway has billion of cash. This is one way of spending money. Or have buying himself a birthday present. Mets been a heck of a birthday present. Manus a half of a birthday present. Francine and it was manus birthday. Yay manus what do these guys do . You have to do real things. How will he handle that . Is one of those companies you would refer to as all metal basher. More technology advance. Precision parts for the Aerospace Industry and also oil andgas industry and pipes the like. The kind of Industrial Company that Warren Buffett likes to go for. The same unit as Berkshire Hathaway as the Israeli Company which was israels biggest ever acquisition. One ofs biggest overseas acquisition. That is the kind of areas he is into. Thats one of Warren Buffetts biggest overseas acquisition. Has 10 billion of revenue every year and an industry where it has relations with the bluest of blue chips. The life of general electric, airbus