U. S. President donald trump says the fed should cut rates by a full percentage points. Im not saying there are not circumstances in which i would be willing to ease. I just want to see evidence we are going into something that is more of a slowdown. Growing at 2 , im not as worried about that. Another reprieve for huawei. Riskon sentiment for stocks. Mark mobius says it is better to go for gold. I think you have to be buying it frankly. The gold longterm prospect is up and up. The money supply is up and up. Matt bhp investor bonanza, the worlds biggest miner boosted its dividend while warning on raw material prices. Mckenzie says it bhp can weather any storm. Ready for whatever the road might throw at us. Downturn,fit from a lot moren also get a cash in an upturn. Matt a halfhour away from the start of European Equity index trading. First, u. S. Treasury yields continue to rise. This is up 1. 59 . Over three days, it is rising. Today we see from yesterdays close, a couple basis points dropping off, but over the last three days, you can see the trend is for lower prices, higher yields. Take a look at futures right now in terms of European Equity indexes. A mixed picture there. We do see dax futures unchanged, cac futures now falling. We did see most asian stocks posting gains in todays trade outside of china. This comes as investors digest a slew of government reports. Stimulus maybe coming to shore up economic growth. As we just show you. An interview with the boston fed president Eric Rosengren, he butw yields questioned the need for further cuts. Forecasters expect reasonable growth over the second half of the year. Rates are low, but it is reflectiveness global conditions. Global conditions are weak. Im not saying there are not circumstances in which i would be willing to ease. I just want evidence we are going into something that is more of a slowdown. If im growing at 2 , im not is concerned about that. Of the twos one dissenters at the last meeting. We also saw george dissent at the last meeting. That is the first time fed chair stayed twohas dissenters. Tomorrow we are going to get minutes from the fed meeting. We will get sentiment tomorrow. Thursday and friday we have the jackson hole meeting. Friday, jay powell giving his speech, possibly opening the door for more cuts. The 100 basis points donald trump is asked for . Maybe that is part of the deal. Deal. T of the art of the a new effort at dialogue. That is what carrie lam is promising to try to bring in and to more than two months of protest. The Demonstrations Begin over opposition to controversial extradition legislation, but have since morphed into a wider Antigovernment Movement, including calls for lams resignation. Allialogue with people from walks of life. This is something we want to do in a very sincere manner. I and my principal officials will listen to what the people have to tell us. Hundreds of accounts have undermined the hong kong protest. Twitter took down 900 accounts that originated within china. It says they attempted to manipulate the perspective on the demonstrations. Facebook acting on a tip from twitter has announced similar operations on its network. To prevent a hard border on the island of ireland. That is what Forrest Johnson wants. In a letter to the European Council president , johnson says he is looking to replace the socalled irish backstop. A legallye sees binding commitment not to carry out checks at the border. Epstein just before his suicide. He placed half 1 billion in assets in a trust could, get the effort to collect damages of women who say he sexually abused them. Investigators will continue to investigate others involved in the alleged rhymes. 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. This is bloomberg. Thanks very much for that. Lets get into the markets. Singapore. Eld out of let me kick it off with the sort search ford duration. Are we going to get 100 year data out of the u. S. . Hasnt make sense germany 30 year bonds at 0 . If you are a government and you need to borrow money, it is a great time to be doing so. When you recently had the yield going below 2 , that is extremely attractive. We saw the austrian 100 year bonds below 1 last week. A good time to lock in longterm rates from a Government Point of view. Im not sure how investors feel about this. There is still uncertainty around. A lot of people looking for bond duration, bond yield. Maybe Insurance Companies in particular have enough trouble trying to meet their targets anyway. They will probably consider it. Im sure there are a lot of hurdles still to get through before the United States could issue 100 year bonds. They would need to get wall street on their side. It will be crucial they play the game. Certainly there is a way to go. You can see why there is a lot of discussion. Governments are very interested in wanting to issue longterm debt. Leastwe dont see at in europe, we dont see Companies Taking advantage of these low yields. A number of them have said they dont want to binge on debt right now because they dont know what they would do with the money where are you going to put it . If you cant find any place to put it into your business. Flipside for the major company. If they dont see the need for expansion or the potential for that is just eating away at their Balance Sheet. It is a bit of a catch 22. You might have on the one side people that want to issue these bonds, but that could be a reflection of a very low yielding environment where growth is slow, inflation is low. That is not necessarily what Companies Want to sing. We may have gone past the point where we are getting inflation which is too low for too long. Biggertually need a fiscal stimulus from people. A 50ny is looking up billion euro stimulus to its own economy. Maybe that will inject a bit of life into bond markets and the point of view of corporates having a reason to borrow so they can do takeovers and expansions. Matt seems like a case of if we talk about it enough, they will do it. Im not sure the German Government wants to go that far or if they are legally allowed to. We do talk about it a lot. Where is the floor for commodities after they touched a three year low . What are you hearing . Not if we listen carefully. Australia interviewed the bhp boss. It was a discouraging view for the commodities. Bhp had good results for now. The outlook is not that great. Thinking of pulling back in some areas. He sees lower demand as a big risk. The outlook for one of the key players is not that good. If Global Growth commodities could fall even further. For joining so much us. Mark cranfield, bloomberg mliv strategist out of singapore. You can watch his work and the rest of the team at mliv on the bloomberg terminal. Next, bhp plays out on solid results. Is this the best it will get for going toiners . We are hear from our exclusive interview with ceo Andrew Mackenzie. Bloomberg radio is live on your mobile device or on dab digital in the london area. Tune in anywhere in the world. This is bloomberg. Matt welcome back to Bloomberg Markets the european open. Not a lot of movement. We had a positive day in asia. The gains are petering out for the end of the session. We still see ftse futures gaining. Cap and dax futures will change. Lets talk more about the worlds biggest miner. Cooling growth in china and trade tensions are key risk to Raw Materials prices over the next year. Dhp despite that boosted its final dividend payout to a record high. Andrew mackenzie told bloomberg the min can stille profit in any downturn. We are ready for whatever the world might throw at us. We can profit from a downturn. Drop a lot more cash in an upturn. Is the dividend sustainable . We dont have a progressive dividend. Early in my tenure we changed to a flexible dividend. It is based on a payout ratio of 50 on underlying earnings. It will go up and down depending on how markets deform. We have a portfolio that smooths our cash flow. If markets turn down, of course earnings will go down. Payingidend we commit to , one of the many tools we have to sail through what might be choppy or waters. That is why we are very comfortable paying this. That was Andrew Mackenzie speaking exclusively to bloomberg. Joining us for more is our metals and mining editor. How are investors going to take the results after digesting the payout . Great question. You are clearly seeing them trade down. The future earnings paid out a big dividend to shareholders. The future picture looks quite weak. Last majorsof the to report. They made a lot of money on iron ore. There is a big china question for the year ahead. Matt what is the outlook for metals and the big miners . So far we have been talking a lot about the trade war. You are starting to see that impact chinese growth. That is a big factor for commodity prices. If we see demand slow, you could likely see prices keep moving lower. Iron ore in the past month is coming up really steep highs. Matt thanks very much. Our metals and mining coverage out of london. Now lets get to the Bloomberg Business flash. Should shareholders come first . Not according to the latest from some of the worlds biggest companies, including jamie dimon. They want to abandon the longheld view. Business roundtable released a statement saying the purpose of a corporation is to serve all constituents. That includes employees, customers, investors, and society at large. Scoop. Berg rival bankers seeking a role in our emcos ipo seek and advisory mandate. With advisoryo mandate. Out itsans to roll Subscription Service by november, part of the tech giants drive to reach 50 billion in Service Sales by 2020. The company will introduce a small selection of shows over the next few months. It could be a trial period as apple builds up the services library. Matt thanks very much. 10 minutes away from the open. We are going to look at your this iso watch, bloomberg. Matt lets get your stocks to watch from around the newsroom. Dani burger is looking at osram licht. Annmarie hordern focusing on pandora. This is, i assume, the jewelry maker . That is right. Had 2019 guidance they kept in line, and while they did report operating but was it declined, better than expected. Lots of calls to the upside. The first report under the new ceo manus caught up with earlier this morning. We should get each of friendship bracelets. I would love that, matt. Matt charm bracelets. Paul jarvis, what is the story with casinos . Casino has announces the second phase of an asset disposal program. You will recall this company has been beset by high debts. As a result of that, has announced the plan to raise two and a half billion euros by the First Quarter of 2020. It wants to raise an additional 2 billion euros on top of that by the end of the First Quarter of 2021. That is mainly coming from its businesses in france. It has already said its going to cut its dividends. This is going to be taken very well this morning. Shares already 20 off there may low. Has been inlicht the spotlight in the mende spotlight. Whats the latest . Are continuinge increasing their offer if rival ams goes ahead with a formal bid. The current bid is for 3. 4 billion euros. That is 35 euros a share. Ams considering 38. 5 euros a share. That is according to people familiar. We are already seeing shares higher by 3 on trade they premarket. Matt thanks for that. Each other get friendship bracelets from pandora. Thank you for joining us. You can get stuck stories from the equities team. Just type first go under bloomberg terminal. You can get it anytime on the mobile app on the first word to have. Coming up, the dust the first word tab. He first volatility overnight. Ftse futures up 0. 1 . Cac futures down. The open on the other cited this break. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Matt one minute from the open of cash trading for equities. Lets look at the markets with Annmarie Hordern in london. Lets look at the msci asiapacific, a gain of. 5 , seeing reprieve for huawei, boosting optimism on the trade front. The u. S. Dollar reached the highest level this year yesterday. Ascent is unstoppable even as President Trump laments about it strength. Eurodollar, Prime Minister conte will speak to lawmakers and this could lead to a confidence vote. Iron ore, bhp, we could be set for another ride in the volatile iron ore prices. This is how futures are stacking up ahead of the market open. Ftse futures are up but we have. Eakness in the dax and the cac a mixed picture ahead of the European Market open. A bit of a dull morning, even with macro news. We have the market opening up. Spains ibex opening down. 3 this morning foots 100 with a bit of a gain in the relatively flat and euro stoxx 50 is flat. In foreign exchange, we have the british pound under pressure and a stronger with swiss franc, eurodollar and bloomberg dollar index fairly unchanged. Netherlands opening to the downside. A bit of a mixed picture which is interesting given the fact we had a higher close in the u. S. And a bit of gains in asia, while modest. It is a mixed picture across the industry. Financials to the downside, industrials have some weakness as well as consumer discretionarys. I want to see how miners are going to do today given bhp reported earnings today. They were saying there is a cooling in china, the trade war risk and all of this means a risk terminal materials. In individual names, what are you seeing . How is pandora doing . Have you ordered my bracelet yet . Matt i am looking at stocks, 245 up, 283 down. I see glencore as a big gainer here. On the see bhp billiton top 10 screen and i have it arranged in terms of adding points to the index. We see astrazeneca, glaxosmithkline up there. All of those Companies Make stuff that you need, for the most part. It depends on your personality and genetics. We saw glencore at the top. Look at the losers. Or two biggers losers. Bhp billiton is down 2 right now. You can see it is taking the secondmost points off the stoxx 600 index and youve got some others, Royal Dutch Shell, total, some Oil Producers as well as big banks like hsbc. Evenoften appears there with small moves because it is such a heavy stock. European markets are opening pretty mixed. Modestian stocks posted gains exchina. Investors are showing signs of progress on trading ocean nations or maybe they dont see them in such an optimistic light. There is also a lot of speculation of government stimulus shoring up economic growth. There is a lot of talk about what could come out of germany just because the finance minister mentioned the figure they spent last time during the initial christ. Joining us to talk about this is the global head of flow strategy and solutions at socgen. Let me first ask what is your take on the sort of should we see a global stimulus rally . Will we see tax cuts in the u. S. . More spending in germany . 100 basis point cut from the fed . Clearly, monetary stimulus has run its course. Negative in most European Countries so clearly there is pressure, particularly with germany, to think about the skill fiscal stimulus because they are rendering massive surplus from a budget perspective. The path of least resistance will need to see more fiscal stimulus but the clear problem is the level of debt to gdp ratio for some of the countries where things will be more difficult. This is why germany has an easier option, if you will, to get the country out of a recession. Matt we are looking at less than 60 debt to gdp in germany which is a pretty astounding figure considering it was over 80 10 years ago. Allowed to doally very much unless we hit a real crisis. Are you concerned hopes are getting too elevated for german stimulus package . Kokou well, clearly germany has had a culture of being very cautious when it comes to debt but this was at a time when it benefited from a currency it did not deserve because had the deutsche market existed, it would be at a much higher level versus the dollar, for example, and it also benefited from a level of Interest Rate that was not consistent with the strength of its economy. Fast forward a few years with the trade war and pressure on Global Growth, clearly it is easier to justify fiscal stimulus today, but the ultimate problem will be that the amount of spending you need when the economy slows and goes into recession is much higher than you would have had to spend had we just had a slowdown in growth. This will be a very difficult situation and question for germany, and the amount will be want tof you really have a proper impact on the economy. This morning, i was pushing back. I hate when a headline has the words what if at the beginning but i have to ask. German recession and know the character of german consumers, are you concerned about what that would do for european stocks where we still see doubledigit gains on the cac and dax, both up 10 year to date. Kokou it will depend on the response from the Central Banks and what the market will expect Monetary Policy to be because we are hearing things like the ecb helping banks survive never you have rates negative rates. If germany went into a recession and we dont hear so much from the fiscal front, markets would expect the central bank to do more and you would get a pressure for yield and equities with decent dividend yield will outperfo