And Boris Johnson. There is a lot going on in the markets we are also getting a little bit of news from italy with the new government being sworn in. Can see the pound is what we are watching out for. Overall, there is a little bit of a risk on mood when it comes to the markets. Back to the Italian Government. The one that we need to watch for is the new finance minister. Were seeing the cabinet sworn in with the same Prime Minister, that is conte. Lets get straight to first word news. China and the u. S. Are holding the next round of trade talks in early october. Thats according to the commerce ministry. They confirmed ministerial level talks in the next week but did not specify when. The two sides are trying to end the trade war but there is still skepticism on both sides that any Real Progress can be made. Hong kongs chief executive carrie lam says withdrawing the extradition bill is only the first step to address the unrest in the city. She also says the decision will be made independently by the Hong Kong Government. Protesters have largely dismissed the withdrawals as too little too late and plan to continue demonstration. The peoples government took the position that they understood why we have to do it. They respected my view and they supported me all the way. So whether it is in the earlier stages of processing the bill and suspension of the bill and withdrawing the bill yesterday, this is the same position. Italys choice of a new finance minister looks to be an all of branch to europe. He is a veteran of european parliament, known more in brussels man in rome. Of the economic and Monetary Affairs committee and has for us change in the job will be negotiating a compromise with the eu on italys 2020 budget. And hurricane and dorian is making its way up the u. S. East coast. It swept past florida and the winds has strengthened to a category three but has lost a lot of the force it brought to bear on the bahamas, where killed at least 20 people. The outer banks of North Carolina could suffer from the hurricane. Global news, 24 hours a day and on twitter, powered by more than 2700 and analysts in over 120 countries. This is bloomberg. Francine thank you so much. It has been another dramatic day here at westminster. Boris johnson has suffered another serious defeat in from conservative rebels to block a no deal brexit they are derailing the governments strategy. Later in the evening, the plan for a snap general election is also heavily defeated with the labour party refusing to back it. The offer of an election today is a bit like the offer of an apple to snow white and the wicked queen. Apple or the election, but the poison of a no deal. You have become, to my knowledge, the first leader in the democratic history of our country to refuse the invitation to an election. Speculate as to the reason behind. Conclusion is im afraid he does not think he will win. Francine we have been following all of the drama. Joining us to give us a market perspective is a Market Strategist at Societe Generale. Thank you for joining us. First of all, you are Boris Johnson, what is your strategy . Anna good morning. He is going to address the people. The problem for tourists four what hehnson is that needs to unlock the chaos is a general election and that is not the peoples gift to give. They play a part later down the road, but what he needs our two thirds of mps to back his election and that is not happening. They do not trust him to do what he says. At the moment, his strategy seems to be a little bit intense and yesterday, we did hear some voices suggesting it is part of the plan. This is all part of a necessary part of the party. But a Prime Minister just six weeks into the job being defeated three days in a row, it looks pretty cap. Chaotic. Francine what are the chances of a general election . Anna they are increasing, but we are moving in baby steps. It is not happening tomorrow. We heard yesterday for the first time that the labour party does not want to. They are very focused on the timing. The noll have blocked deal brexit from becoming law, but that could happen at the beginning of next week. Then, the conversation is on the date. They dont even trust Boris Johnson to pick a day and stick to it. So will it be before or after october 31 that seems to be key. Francine the markets were quite positive about it all yesterday after a bit of flipflopping. What do we see see . Anybody in markets is convinced there will be an election and it will be in early november. And if you can tie it up in ribbons so that you cannot undo this week, you can have an earlier. But thats ok. In the background, the nagging concern for everyone is twofold. One, what does an election actually achieve . Does it unlike anything or do we get another minority government . Bear in mind, the prono deal brexit camp, the adamant get me out of europe party, does not have a majority of anything. Francine ok so how do you unlock something . Kit you need a broader move. Much in theto say meantime, the economy is rusting up quite visibly. But i think that is the concern for market, more about exactly that. How do we unlock if, without going back to another referendum , what that unlocks. But the moment, we have taken a various forms of legislation from various deals to parliament umpteen times and we are not able to get anything through. Francine if you do have a general election, is there a cutoff point by which you either have to have a royal decree for a vote in parliament . Anna the timing of all of this is up in the air. If we do get a royalist decree next week, then the house is not sitting in that causes some problems. Know then that there are still going to be a lot of questions to answer about when this all happened. Point, the polls dont give us any clues this will unlock anything. You have got brexit party at 10 or 11 conservative party 10 ,oints, one point above labor if haves suggests a tie up between the day, but they in themselves would not necessarily francine so you can see some defections were tories adjoining the dems. I know it is unlikely compared to other countries among but they it always breakup and form new ones could always breakup and form new ones. Kit you could conceivably get one of two things. One is a conservative brexit , but whetheron that controls the house in practice to get policy through his hard to see. Or you get one tiny up the scottish nationalists and democrats and labor that only has a mandate effectively for a referendum. And then you ask if that opens up anything else. Lets have another referendum, and then what . Anna it interesting to see fraction fractures in the lines. Francine thank you for joining us. In the meantime, where following politics and italy. The Italian Government is being sworn in. We basically have a new altogether apart from conte, who was put there by five star. This is bloomberg. Francine economics, finance, politics, this is bloomberg surveillance. Lets get straight to your business flash in new york city. Porsche has unveiled its first all electric sports car. It is a volkswagens hope in unseating ecard pioneer tesla. The top version will be priced at 185,000. The standard version is expected to be priced below 100,000. We have to take initiative to start this infrastructure, and at the end, we could combine other Companies Like bmw, mercedes, and other brands. The infrastructure will grow with upcoming volume. Norways stateowned oil and Gas Producers filed billions in shares. It will start today as they seek to boost their share price. They have also announced production will start at its giant oil field among early. Ceoa s named a new nodea has announced a new ceo, looking to boost Revenue Growth. He was previously the head of personal banking at nordea. That is the Bloomberg Business flash. Francine thank you so much. As westminster wakes up to another unpredictable day, lets stay with our top story. Following another heavy defeat for the Boris Johnson parliament and with uncertainty, how should investors approach the situation . Kit from back to Societe Generale. Trip datat going to that is slowly getting worse . Drip data that is slowly getting worse . Kit we got pmi numbers that were all weaker than expected. The global trade downturn we know all about, Everything Else looks soggy. But it is just getting slowly worse with no momentum to anything. Francine what happens to pound . Kit not much. If you think of eurosterling, this is where i think we will get to on no deal. 85 if we get a deal, 80 if we cancel brexit. Give or take 90. Data wasf the economic getting worse, i would think we are taking no deal of the table and we might drift lower. But what the data is doing is just preventing any kind of significant round. The market is very short on sterling, very bearish. Francine has a no deal risk been taken off the table . Kit in my mind, we are halfway come in terms of price. It is a what happens kind of thing. And bear in mind, thats where we are with the markets that has a huge short that we thought would start supporting the pound. Francine what needs to happen for the pound to be supported . A second referendum, thats not supported. Kit all the people who were short will have to start changing positions. Likely, 49 to stay leave, thats last month, and look at what happened. We think its a 5050 bet. Francine what do you do with gilt gilt . If you have an economy drifting towards recession, you dont sell bonds. Nobody sells bonds and a ession that in a recession sells bonds in a recession. I was still belonged gilt rather n guilt rather than rather than short. Francine lets get rid of the no deal scenario and say we will have some kind of withdrawal agreement. What happens to the economy in that scenario . Kit it drifts down because europe is drifting down. Francine a drifted down to a recession . Kit a drifted down to something painfully close. Even on that case, thats my fear. If you say no deal gives you a point, justt this taking a really long time to get some sort of deal, we might have gotten to at least another quarter of negative growth somewhere out there before we have a deal. Francine are we underestimating on theacts of brexit european economy . Kit . I dont think we are. There is a lot of gloom about the european economy. But the u. K. Is a huge trading partner, theres a lot of uncertainty that it is not help. It is a problem for europe. In a sense, and this something , thatn reasonably say u. S. Data is as bad as the european data. Yeah, but europe is growing much more slowly but they are getting worse at the same rate. The starting point matters in terms of how weak growth is. It does not need a negative shock from italy or the u. K. Francine right, so it is exporting countries that will suffer the most. Germany, italy . Kit germany is the one significant been more affected. Francine is there anything the ecb can do to help germany . Kit im not sure theres anything they can do to change the dial on european growth. Negative rates did not do much about what another round of qe help. Not doing it when it is priced in perhaps helps, but fiscal policy is the thing that can have an impact. And at an individual country level, all the more so. Germany has got an account surplus that is way too big. Spend some money. Francine thanks very much. Kit from Societe Generale stays with us. Up next, a European Bank reshuffle. Stephen engles of commerzbank goes to danske bank. This is bloomberg. Francine this is bloomberg surveillance. Now lets talk about banks. Dots bank is still reeling from the fallout of europes biggest moneylaundering scandal and has a new cfo. It is a name familiar to those who follow European Banks. Stephan engle has served as cfo of commerzbank since 2012. He will leave at denmarks biggest bank. Lets get more from Philip Richards in our london office. To the latest reshuffles suggest more difficulties . I dont think so. I think it is the case of a new ceo and getting his own people on board. These are people he knows from the market, and as you mentioned , the former ceo has been there for seven years, so he has got experience. I think its more of a case of chris to me and credit dots danske taking control Going Forward. Francine do you expect any change in strategy at nordion at nordea . I think it is positive for them. When the former ceo says it will retire, that takes away a lot of power so anybody coming in is a positive sign. And he is very well known, a former ceo. So i think thats a positive. He has also worked on the personal banking side on the retail aspect. He has struggled down in terms of wholesale banking restructuring. With that now done this could be a new great phase a new growth phase for them. Much, ourthank you so Bloomberg IntelligenceSenior AnalystPhilip Richards with the very latest. Up next, as emergingmarket chairs get a popup will focus on south africa and growth numbers. Where i live from cape town where manus cranny been having some great interviews. In the meantime, this is what the markets are doing. Had a new Italian Government being announced. Today, they are being sworn in. One person investors will be looking for is minister what kitty minister roberto gualtieri. Minister, now the new minister of finance. 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. Francine losing streak. Boris johnson suffers his third major loss in parliament in two days. The Prime Minister says he will appeal directly to the public. Its better to talk. The u. S. And china say they will hold trade talks in the coming weeks. Liu he plans to visit washington in early october. And taking a hike. We speak to riksbank governor Stefan Ingves as the bank still says they are raising rates at the end of the year. Good morning, everyone. Good afternoon if you are watching from asia. This is bloomberg surveillance. Lets focus on south africa. The central bank is forecasting the economy will expand this year. The country enjoyed a surprise rebound in the Second Quarter. Cranny today, manus spoke to south africas minister for public enterprise. Take a listen. We certainly think that we transparency in the way we operate. Verticallyl integrated company. There are parts of the world where these entities are separated. Generation in south africa, although largely comes from coal generated power, we are announcing diversity of sources. As far as transmission is concerned, that is considered a Strategic National effort in most countries. That is the great that enables grid that enables Energy Sources to move. Each country has its own idiosyncratic way of distributing electricity at a local level. We have our own peculiarities in our own regard. Are you behind that . Absolutely. Absolutely. Thats why we are working harder. Francine manus cranny joins us from the World Economic forum in cape town. What else do you learn from him . Man has a major portfolio. Supplies 95 of power in south africa. What we confirmed in the interview was that he intends to of transmission business. That is his priority. Goingsence of what he is to do in that business is sort out the debt. I asked about the bondholders. That, 70 n worth of guaranteed by the government. That leaves 10 billion left by investors. He says the investors are not worried about a cut. The bottom line is that there are massive over staffing. He would not give me a number in terms of how many jobs he would have to cut. It is about moving this economy forward at a fairly tough time. They just escaped from recession in terms of the numbers. Escog with dealing with m will determine that economic it is beautiful in cape town. Francine it is beautiful. Do people talk about brexit of the World Economic forum in south Africa Brexit at the World Economic forum in south africa . Can you say that again . Francine i was asking whether a lot of the focus, as you look at the wall of worries, i know south africa basically has to reassure investors that it is safe to go back in their emergingmarket, but how much of the talk is around Monetary Policy and shocks that could come around brexit . Are people talking about brexit in south africa . Conversation,exit we had in the breakfast room in terms of ramifications and the implications, in terms of the shocks that people think could come. Their perspective on what is happening in the United Kingdom is a political system which they would say here is reflective of many emerging markets. It is just a lack of understanding of what is going to happen next. The lack of political stability in the United Kingdom undeniably have issues. You think about the interview done yesterday with the norwegian sovereign wealth fund, which says they are committed, they are staying with the u. K. The political hubris you are seeing their, there is a different form here. Brexit is not the most pressing issue here in south africa in cape town. Francine thank you so much. Manus cranny at the World Economic forum in cape town. We will have plenty more from the emerging markets and south africa. First, lets get straight to the bloomberg first word news. Chin