In london. Whichtalk about the bhp, puts commodities very firmly in the center of things. Is the end of the route insight . How many times have i asked that question in recent months . Is this the end . 100 Day Moving Average is insight after a little rally. Taking it back up toward the 100 Day Moving Average. Some investors are suggesting that this could mean that we are that we have some more positive moves to come. Remember, futures of copper had actually rallied more than 9 from their six year low in january. Manus we seem to have passed those crisis moments. The question is, can we sustain it . We have iron ore, oil on the move as well. Boy ofe was the whipping commodities in 2015. Iron ore futures hitting a fourmonth high in china. When you have is the highcost producers in china dropping out. That story on the bloomberg. Aussie exports dropping by 10 . Subman sachs talking about 40 until 2018. Brent oil down 1. 7 . Anna just to go against the grain slightly, that one at the 1216 per ounce we are trading at. Lets get some breaking news. Of thatthe early signs income coming through at 978 million. That is ahead of the estimate, but the bigger news is that they from july a new ceo the first. Bhp has made a cut to its dividend, lowering the dividend for the first time in 15 years. Tumbled 92 . Ofits share prices fell by more than 40 over the past 12 months. David camerons campaign to keep britain in the European Union has been given a boost. 36 leaders of the u. K. Of the u. K. s 100the Biggest Companies agree. Camerones after david fought against Boris Johnson who said he would campaign against staying. We see the influence on tory funders on the Prime Ministers status, not for britain baba but for the city of londons interests. It is the same interest that causes the chancellor of the checker 2 chancellor of the exchequer to go to europe. It is necessary to protect the rights of noneurozone states, eu not to undermine regulations of the financial sector, including the board rooms in the city of london. Pharmaceuticals says it will restate some of its past earnings. That is after a Committee Valeant says about 58 million in revenues previously recognized in 2014 should have been from subsequent periods. Mark zuckerberg effectively backed apple in its privacy battle with u. S. Authorities in a speech at the conference in barcelona. Have backf tech firms to the refusal. Apple says it will have a provision for the future, but the u. S. Government says it is a oneoff requests. Mr. Zuckerberg were sympathetic with apple. We believe in encryption, we think that is an important tool. Honestly, people will find a way to get anything. I think it is not the right thing to try to block that from the mainstream products that people want to use. I think it is not going to be the right regulatory or Economic Policy to put in place. Anna global news 24 hours a day powered by our 2400 journalists in news bureaus around the world. Manus lets get up to speed on these markets. Haidi lun is standing by in hong kong. It has been a fretful sort of day. And thent of the gates gave back some of those gains. One researcher this morning saying, if there has been any trend in the way that the markets have been going in 2016, it has been that there has been no trend at all. Japanese and south korean shares closing it just a few higher. Same story we have been seeing. Yen has gone up, gold has gone up. Yuan, we setting the guess that about six weeks. That really has cast into doubt the sort of Economic Outlook of china and the stability of the currency. Shanghai is down by 1. 7 . Mainland markets yesterday closing at their highest in over a month. We did see Energy Stocks getting sold off again. Having said that, we have seen some quite nice gains. It has been a big day in terms of earnings. One bright stock was gaming gamington it stocks listed in hong kong. Jpmorgan saying that revenue numbers from the cow are expected to be upbeat for the first time in quite some time. Wynn macau up by 1 . Jakarta under fire again. U. S. Investigators announced another investigation. I think investors were hoping for dividends. Im sure youre going through that, but that stock is up by 2. 6 despite fairly ugly print on those results. Manus and anna, back to you. Anna thank you very much, heidi lynn. Reporting a 92 drop in profits. James foley joining us in the studio now. Good morning to both of you. Ryan, lets come to you first. The top line on bhp, the focus very much on what these businesses in the sector can do to get them out of the slump. They are effectively doing two big things. Ne is a dividend cut they cut . 16 per share. The market was looking for . 31 per share, down from 32 last year. As the biggest cut since 2001, when bhp and billiton merged. You have to go back to 1988 before then to find another dividend cut. There is room to save. Guidance fort the this year, it had been 8. 5 billion, now it is 7 billion. In the last six months, down 7 . In 2017, they want to go from an earlier forecast, about 7 billion to about 5 billion. Manus they also spend a heck of a lot of money building up u. S. Shale. They built a new find billion dollar pipeline. Ryan i think it is interesting. You look at the net loss, it was it5. 7 for the first was about 5. 7 billion for the first half. A lot of it was already anticipated, and namely the impairment when it comes to bhps assets in the united states. Of 7. 2the tune billion. Marco, which is kind of what the gulf spill was for bp, they wrote that down by 1. 2 billion. Basically, they made a little bit of money, but they wrote down an awful lot. Lets give this conversation a currency flavor and talk about some of the emerging economies and their reliance on commodities. You see anything in the Commodity Markets that gives you confidence in the commodity related currencies in the emerging world . These economies really are hits. The canada, the australia, norway, they are a little bit more diversified. Back at the emerging world, these are one horse towns if you like, and they dont have a lot of other industries. These horribleng environments for the central bank with slowing growth and rising inflation. Manus mrs. Aussie dollar and volatility. You have the aussie dollar here. The view is that we are going back towards the 100 Day Moving Average. Traders have got bullish on this currency for the First Time Since 2015. My question to you is, do you think we have gone through the eye of the storm . They are inextricably linked to iron ore, which ultimately is related to china. Jane i am very nervous, indeed. Nowfact is that they see it as a proxy. The Australian Domestic fundamentals, the labor market has been really resilient, the australian economy is doing well. But i am very skeptical of this. In terms of revenues coming , very much linked to china, to the Steel Industry coming taxes are lower, incomes are lower, and the Australian Labor market has been really good. There has been no Wage Inflation. One of the reason for that is that they are losing mining jobs and getting lower paid Service Sector jobs. The lack of Wage Inflation is a problem for australia and it has been for a number of years. It is certainly a big problem with australia. I think there is a risk that the central bank could cut Interest Rates. What is interesting is, over the last few weeks or so, people have been looking at bhp priceon, that the share for bhp billiton started to track oil much more than iron ore. Manus that is what it is linked to. Ryan my question would be, on an fx fronts upwards. Rning sorry, that is the iron ore price. It is actually not reacting as much to the iron or rally than it is to the ore crunch. Ryan people are saying that the sacred space to be in now and because of all the money they saved with dividend and spending cuts they have money to go out and buy some assets. Currencya particular that you think should be targeted to play . Jane when the market gets stressed, we see a lot more correlations. We saw that in the Global Financial crisis. Australian dollar is also more correlated to oil. Correlationsse when we have a correlations. When these markets begin to break down with these correlations begin to break down is when markets begin looking at fundamentals. If youre worried about china anna one degree of separation away from the china story, commodities. S jane one thing we have to bear in mind for the loony, is the market did get very, very short. The market went along aussie. That worries me. Manus that is the First Time Since 2015. I think that is one of the reasons why canada has done a little bit better. I think it is still quite vulnerable. If you like oil, by the canadian dollar. Canada, longerterm, it should have a little bit more lookction, because it does inwardly to the u. S. As australia looks to china. Anna thank you very much. Manus we are going to be speaking to the bhp billiton chief Financial Officer on Bloomberg Television later on. He will be speaking on surveillance at 10 10 london time. Anna speaking of things coming ahead in the day, we get a reading of gdp at 7 a. M. Gdp time, followed by iphone sales. Manus at 10 00 a. M. , bank of england governor speaks before the lawmakers. How many times we mentioned the word brexit . Anna at 11 15, we hear from the smb governor on Monetary Policy in the euro. This afternoon manus it is all about order all about oil. Anna how will brexit risk impact the u. K. s rates . Anna welcome back, this is countdown. Reportediss three has reported netas income in the quarter rising 938 million. The Company Also Announced a new chief executive officer as of july 1. The first for your loss in almost two decades as the said thees trader price of coal may remain low for an extended. An extended period. Shares tumbled over the last six months as resource prices fall. Extended trading new york after forecasts for the Current Quarter missed estimates. The maker of Wearable Health devices expected sales between 420 million and 440 million this quarter. Fitbit has lost about 45 of its value this year. The former jpmorgan trader who became known as the london began when his unit making huge losses in 2012, says bywas instructed repeatedly managers to execute the strategy that went awry. He says he rejects to the whale nickname. Anna the week began with a bang. Sterling off a cliff by throwing his support behind an exit of the European Union. Manus the Prime Minister cameron hit back in parliament, emphasizing the banality of the brexit decision. This brexit is not an invitation to rejoin, it is a process for leaving. I have known a number of couples who have begun Divorce Proceedings, but i dont know any have begun Divorce Proceedings in order to review in order to renew their marriage vows. Today is bank of England Governor Mark r mark cairnss turn. Manus lets bring in jane foley, she is the jane foley. Sparring has begun. Give me a sense of the market. We see these huge lurches lower. What i want to know is, how well positioned are we . People ink a lot of anything you can be really sure of is volatility. It is very high and likely to remain very high. I think the market will be watching the guinea polls. I think it certainly could fall further. We know the opinion polls werent that reliable ahead of the general election. The other thing is that we are told that around about 1 5 are undecided. It could go either way at the very end. Anna what is your target around the europound right now . You can caveat that with all kinds of circumstances like paying in and then leaving. What kind of thinking goes into how you would leave at how you would put a value on this . Do go for an if we bet, i think we could looking a lot higher. 85. That said, the euro is being dragged lower yesterday, too. Course, there is a lot of question about what will happen to the eurozone. Do we have to question the whole existence of the eu if there is an exit . That is another part of the same argument, a very interesting one. Move imuch purer think we are looking well beyond 135, 130. Anna if they actually vote for a brexit . Jane yes. This, ithat, tweaking is, have we become too pessimistic about the fed and u. S. Interest rates . Perhaps the u. S. Can hike Interest Rates this year . That would exacerbate any potential move lower on the brexit. Manus this is the analyst estimates. They are nowhere near you are saying. This is for the third quarter. We have slicing and dicing in terms of the estimates. You would say, perhaps the analysts are nowhereecasts near the ones i mentioned, too, because my assumption is that we remain in. Forecasts is that in 12 months to return to 0. 7. My forecast votes for cable were part of the assumption that we remain in. What im going through is the risks if indeed there was a brexit. If you areurse, looking to generate inflation, having a weaker currency is one way to do that. Do we see the pound, even running up to the vote on june 23, do we see the pound getting significantly weaker to trigger inflation . Concern,is a secondary but it is imported inflation. What we really want is demandled inflation. , when weew years ago had a vat, inflation was very high. The money that we had left in our pockets was declining. This will be the same sort of effect. Maybe exporters will get a benefit, too, but import inflation is not what we want, we want demand inflation. Manus should they be tempted to options on sterling as a high volatility trade. . Jane i think the problem now if you wanted to buy an option in sterling is that volatility makes it very expensive. For many corporates trying to hedge, they may have missed the boat already. All agility is going to be difficult for people trying to hedge at this point. Anna like you very much, jane foley on brexit. Joining us from rabobank group. Manus the yen marches on. More to come on abes deliberation and the governor of the central bank of japan. What is his next move . When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Manus it is 6 30 in london, 7 30 in brussels. Billiton has made a larger than expected cut to its dividend, lowering the payout for the first time in 15 years. That is as the World BiggestMining Company aims to protect its Balance Sheet and Credit Ratings amidst a price collapse thats offers cap profits tumbled 92 . Share prices have fallen over 40 over the last 12 months. Keep camerons campaign to britain in the European Union has been given a boost. U. K. s 100f the Biggest Companies have signed a petition agreeing. Boris johnson said on sunday that he would campaign to leave the bloc. The worlds biggest money manager is warning Bond Investors that they are not prepared or the Federal Reserve to raise rates. In january. blackrock, which has 4. 6 trillion in assets, says the fed is likely to move in 2016. A Board Committee reviewed the u. S. Drugmaker. 58 on says about valley on says revenue should have been brought in subsequent periods. Renewed talks for a ceasefire in syria will start on saturday. Killed 260 thousand people and created a refugee crisis straining europes borders. Armed opposition groups who want to take part must confirm by friday that they will abide by the cessation of hostilities agreement. Bloomberg, powered by 2400 journalists in news bureaus around the world. Anna we just got some breaking the french out of food company danon. Therefore your earnings rising. Yogurt profitability rising. The milk price has been one thing of late helping that business. Sales beating estimates. The yearguidance for ahead, they see 2016 like to like sales up. It is interesting, because in november, the company predicted sales growth would exceed 5 by 2020. We will see how that goes down with investors. Manus it is interesting that they talk about deflationary pressures. Economic conditions will remain volatile with deflationary Consumer Trends in europe. That is Mario Draghis challenge personified. Anna what have you got . Nejra im starting with the pound. We are seeing a second day of declines for the pound versus the dollar, but also versus the euro. I have sterling here against the dollar at a 2009 low. It felt to that low yesterday. Volatility at a 2007 high. That has kept rising today. I want to talk about another thing, which is the euro. There is a sense that if the pound falls, it could take the euro with it. This is because, if we do see a brexit, there is a sign this could be very bad for europe as well, not because seven of the nine seven of the euros largest trading partners are in otherk. , but also maybe eu members wanting to renegotiate, too. What i have here is eurodollar options, six month risk reversals. What it shows that the premiums for options protecting against a decline in the euro against the dollar, compared with those insuring against an increase, that premium had the biggest jump in more than a week yesterday. It is mov