A higher cash bed. A very warm welcome to countdown everybody. I am anna edwards. Manus breaking news. Anna six a clock in london, 7 00 in amsterdam. Where the business is based in the netherlands, saml is europes Largest Semiconductor maker. Third quarter revenue at about 7 billion euros. So estimate was 1. 7 billion, that sounds very broadly in line for maybe a touch shy of that. The most bullish estimate for the Third Quarter. The ultraviolet lithography system, which increases capacity and speed. Agreed to buy microvision for about 3. 1 million. This is a part of th customers,s for the Samsung Electronics and intel, these chip manufacturers, that they will increasingly use the technology. Certainly that revenue looks to be broadly in mind. 354 million in the Second Quarter against an estimate of three when 7 million, ahead of the Second Quarter. Manus we are waiting on the revenue numbers, expected 5. 2 numbers, expected 5. 2 billion. Lets have a risk radar look. Slipping, the s p coming back on Global Equities commit adding 4. 5 trillion post brexit. And we have the korean currency and therefore you, a bit of a developing market for you, as the fed potentially comes back into play, more statistically likely to raise rates this year. Falling the most in two weeks, perhaps a little more Dollar Strength, housing data. Samsung future says the currency datea is 1139. Currency is 44. 78. And supply is down 2 million 60,ls, prices will hit and it will rise. That is what pioneer is saying at the moment. Anna anna the surprise indexz, on the back of that surprising data out of the u. S. ,. The Housing Market seeing retail sales, payroll looking stronger. All of that adding into the gained momentum we have seen. Manus a redhot headline across the bloomberg terminal. They come out of the Second Quarter, net income at 1. 7 billion. That is one of the first european banks to report. Anna let us get the bloomberg first word news. Here is rosalind chin. Rosalind donald has told supporters he is going all the way after formally securing the nomination. Announcement,is which put him over the line. Theyre looking to get the convention back on track after the opening day was rocked by questions over whether Melania Trump plagiarized. After sales and profit were cut, the Cloud Business that is after adjusted platform of doubling the earnings. The ceo has been changing the focus because of Productivity Services, and Traditional Software, slums. The turkish lira is trading at an alltime low, deepening concerns about the fall of from last weeks failed coup. Moodys is looking at a credit rating. Weredentral bank loaer by 8. 75 yesterday. Italy and the European Commission they be quite close to an agreement on how to aid the countrys banks, that is according to someone speaking to bloomberg, describing the ongoing talks as productive. The most important thing as the time, for obvious reasons, to stay calm. Nton,ind gawkers nickd e went into chapter 11 to avoid paying 140 million, subject to hulk hogan, after the wrestler won the case on a sac state. Tape. X powered by more than 150 journalists and analysts, you can find more stories the bloomberg top. Manus rosslyn, thank you very much. Juliette saly is standing by. Bouncing around 45, emergingmarket currencies on the move, how is it playing out . What were seeing is a bit of a reversal of what we saw yesterday. That really solid rally coming through on the nikkei yesterday. It is weaker today. Having an impact on the overall regional index, which has been tracking lower although it is flat the moment. We are seeing quite a lot of weakness in commodity stocks, mining coming under significant pressure, all the Energy Sector hazard to pick up. As you said, crude in focus. We are seeing weakness on the korean currency, and that is weighing on the cost. Have a look at this really solid rally coming through in hong kong, led by lenovo group, up by a most 5 . We are actually seeing the Msci Hong Kong index on the verge of entering a bull market. It is now up 20 from those loads we saw earlier january. New World Development has risen on expectations of the fed will hold off on raising rates. They are up by about 37 since january. And also we have the macau casino stocks up 76 in the period. Overall, a bit of a mixed picture in the region, and we are certainly seeing that weakness from japan weighing on the regional index. Having a look at some of the other movers can i mentioned lenovo group and of course nintendo coming up today. Manus and anna . Anna Juliette Saly joining us in hong kong. Asml saying that they are causing the Share Buyback plan for a few quarters, amid that takeover we mentioned of hmi. Manus breaking news from sap, confirming the fullyear forecast, critically important, total revenue comes in at 5. 24 . 5. 22 percent is what were looking at. That is a beat. 27. 6 . Operating profit, again a very comfortable beat. This is operating profit, 1. 52 billion. The estimate was 1. 45. Let us talk to Caroline Hyde. She is standing by to break down the numbers. Caroline, it looks like the challenge is working as quarter, about rebalancing for mcdermott. And the Cloud Business, break it down for us. What is the first take, the red headline . Sales, andn terms of in terms of operating profit, manus, seeing sales climbed some 5 , all about the Cloud Computing area. This is the company desperately trying to shift away from licensebased money coming in to subscriptionbased, which is a little less profitable, but perhaps more tenable in the longterm. They are seeing clouds christians really ramping up, up 41 in terms of growth. That is really managing to show growth versus the competitors. Remember, theyre trying to tackle the salesforce, the new kids on the block. They are managing to pump out the sf next week. This is what is really selling. And notably, their striking deals. They are worked out they need to work with microsoft, developing apps and tools you would use while youre on the move, on the go, using android or microsoft devices or apple devices, all of these need to be used on the go. And getting access to your clients, to your marketing tools, via the cloud. This is all about flex ability. They are saying theyre sticking seeingtargets cloud, growth of 6. 8 in 2016. So we are seeing real growth for sap, managing to clawback, from what many feeling was too slow on the uptake when it canst cloud. Anna now their dominating. Anna caroline, also delivering them from microsoft. Caroline exactly. This was the same, the same last earnings season and this earnings season, if you make it work with Cloud Computing you generally are a winner in the technology space. We just saw yesterday. Big blue ibm also showing growth in Cloud Computing. And microsoft too rosen after our trading, being pulled about, showing once again that shifting productivity to the workspace, and notably the cloud, is really paying off. Have a look at my screen and we can dig into the actual numbers of microsoft. We saw sales rise better than expected, 22. 6 billion for the Fourth Quarter sales, that was more than expected, up from 2 . We will see real ramp up in revenue next year. You will see some 3 growth in the following 2017, and 6 growth in 2018. You may feel this is a story that is going to continue to improve. Microsoft notably showing stocks increase. This is the Cloud Business doubling, more than 100 growth in that space. The pc market doing better than expected. That is what they are shooting away from, pcs losing sales, we want to work from our tablets. The destruction in the job cuts, taking a 1. 1 billion charge re, but they are managing to get out of the license and into the subversion business. Those shares traded higher. Manus Caroline Hyde with a very latest on sap and microsoft. Later this morning, caroline will have a talk with sap ceo. Anna also on the heels of her first cabinet meeting, uk Prime Minister theresa may has a packed day ahead. Well take you through her day ahead, because it is a full 100 jobs data due at 9 30 u. K. Time, along with the new chancellor philip hammond, getting a snapshot on the month after the eu referendum. And she is in parliament for her first questions as premier. Manus and the start of a twoday european trip, attending a trip with german chancellor Angela Merkel at 4 30 u. K. Time. And she meets hollande in france. Derek how fitting is our guest, derek, she has a very packed agenda. Some of it is theater. Some of it is about setting the tenor and tone of brexit negotiations. Have we all then lolled into a false sense of security . Apart from currency, have they in, because were back at prebrexit levels. Derek there was always going to be some pullback, in terms of, well, triggering the article 50, going forward. And you have a prolonged period of negotiation. And youre always looking at 2. 53 years before anything actually changes. Yes, you have this uncertainty. The reality is that nothing actually is changing, for quite a period of time. 02 on theare at 131. Dollar this morning. Derek, you were surprised by the mpc not moving. Where does it go for the pound . we see it lower, i yearend target of 124. They will of course act on the first of august, but all this being said, i think the next phase is going to be about the actual Macro Economic impact from this. And certainly, i think the most extreme period in which we are probably going to get the worst element of that is data from the Third Quarter and perhaps into the Fourth Quarter. Certainly, the sentiment readings we have had acrosstheboard tell you we are going to see some pullback in activity. And i think that couples with do not forget the broader Global Situation and our forecast of 124, it is not just brexit. The markets have to readjust to the fact there are broader developers that are going to become far more important perhaps to the direction of the pound, than the daytoday developments. Manus what are those . Because you talk about the world, we have the msci world index here. It is beginning to lose momentum, back prebrexit, losing momentum. 3, you want to have a look at it. Whatof your consideration, are the big proponents of risk when you look at the world . Derek we are a little bit dubious of this Risk Appetite recovery. And it is fueled, in part by central bank expectations, the bank of england will ease, boj easing at in a month. Ecb will extend qe, and the fed is on the sideline. And you have growth in the u. S. Better than expected. Well,nt forget china as the growth story we had last friday for example, unexpected. But i think all of that could unravel, or a lot of that could unravel quite quickly. , we donte, the boj expect anything significant at the july meeting. Given the fact that over the last week or 10 days we had this big debate over helicopter money, the next big step, i think there is a lot of optimism price into dollaryen at current levels and that will unravel quite quickly. Anna will get more of your thoughts on japan in a moment. Sticking with the u. K. , when we look at the underlying reasons to cut rates, and of course a lot of it has to be guesswork that we dont have the data, the sentiment indicators that you mentioned, but we dont have the data. Do you see the benefit of cutting rates . Kate barker, talking to my colleagues today at the most recent meeting, she said that we should not be cutting rates right now. She said with a population that is not as young as it used to be, we are starting to learn a little bit about how we incentivize people to save money actually, if you cut interest rates. And if you do this over a prolonged period, keeping them so low. Derek obviously, on the rate side of the story, you have borrowers and takers. There will be the impact. Certainly on a macro scale, there is a net benefit from it. But obviously, given the fact that rates are where they are, particularly you look at the yield curve in the u. K. And the move that we had since brexit, in terms of the 10year gilt yield, it has been very considerable. Part of that was the expectation of the bank of england would move. Certainly, 25 basis points the bank of england, even if they did 50, i dont think it will have a massively beneficial impact, given where we are globally. But i do feel that they have to at least meet what the market is inspecting at this point in time. And of course, they have a mandate, why they are waiting for the Inflation Report in august so they can explain. Alpennyderek howel stays with us. Anna up next, a former officials is the boj should end the japanese to enlist debate. We will explain what he meant there. The 6 30 u. K. Time, we have chart of the hour. And we had up to cleveland, ohio the days three of the of republican convention. Manus it is 6 21 in london. Beautiful day in hong kong, 1 21, hang seng is trading up 9 10 of 1 . Rosalind chin is with us. Welcome. Miller willnus, sab discuss growing investor pressure for a higher cash bed from ab inbev. That is according to people familiar with the matter. They say Fund Managers have complained that the 77 billion pound offer is less attractive following the plunging sterling. This drop the two biggest shareholders, getting a sweeter deal of other investors. Microsoft gained in extended trading after sales topped estimates, thanks to the Cloud Business. Third quarter revenue was up, with cloud users doubling. The ceo has been changing to clout and Productivity Services, as Traditional Software sales strength. The bulletin shares are trading lower in sydney. The worlds biggest Mining Company is inspecting iron ore production to be flat this fiscal year. It also says Capital Spending would drop by 34 , after petroleum output fell last quarter. Unilever has announced it is buying dollar shave club. The terms the deal were not disclosed, but orange of fortune magazine, it is worth 1 billion. Clubly held dollar shave is on track to post 2 million in sales this year. Buyers deciding whether or not to raise for monsanto a second takeover, 55 billion and the offer was inadequate. But it said it was open to further talks. The risk is that monsanto could choose another suitor. A german rival, over a potential alliance. And that is your Bloomberg Business flash. Anna and manus . Anna rosslyn, figured much. A former obj Economist Says they should correct two big lies next week. Should add more stimulus and scrap unlimited policy space, achieving 2 inflation target in about two years. He said the market will lose trust in the central bank if it continues to remain so bullish. Derek, you have artie given us some clues as to your fairly relatively low expectations about what they will do. What you go along with this analysis, that they need to step away from its commitments around all of these comments they have made around unlimited policy space and how quickly they can get to the inflation target . Derek it is a tricky one. I see both sides. In terms of the 2 , target i agree. I can also see governor kurodas concern, sending a signal to the markets, perhaps giving up on that goal. Ux, of course, the whole the deflation mindset that exists in japan after 20 years of mild inflation. For the boj to throw in the towel and abandon these commitments because they feel they are unrealistic, could have a very powerful impact on expectation for inflation. I can see both sides. Isertainly getting to 2 very unrealistic. We should not discount the fact that getting to 1 and maintaining that for a. A. Period of time. Manus we have a chart about the fed holdings of the treasury. Comparing that to the bank of japan, and this leads to two big lies, the bank of japan owns about one third of the total market of debt. Theyre going to run against the buffers, in terms of the ability to continue to buy. One of great debates. Derek you know, japan has massive assets abroad. And i think taking of dollar yen, that is probably the problem. The fact that we have this massive investment in income surplus on the current account side of the balance of payments, and what happened during the period of the evaluation was a lot of these investments become surplus, that get converted back to the japanese yen. It wasnt conversant because of the movement dollaryen, yen was growing inside. But once the terms, the psychology has shifted. Now more and more of those incomes are conversant back into the japanese yen, over 4 of gdp, that is really a big element of support. Anna just briefly, if we get no move, no new moves from the boj, what happens to the yen . Derek if we are trading 106, i think we will get back. Alpennny from bank of tokyo stay with us. Manus is the special relationship Strong Enough to secure a lucrative trade deal between the u. K. And the u. S. . We discussed that, next. This is bloomberg. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Anna welcome back. X 30 here in london. 7 30 in london or paris. Your new edition