Manager at 3 00 a. M. Welcome to countdown, im anna edwards. Im manus cranny. Anna theyre sticking to their full year forecast of 1. 375 billion and given what weve heard from lufthansa about the the state of the aviation industry, perhaps that would be seen as no mean feat. They see Second Quarter fares falling at least 6 . We previously heard that ticket prices would fall 5 to 7 in the first half of fiscal 2017. So that that would have been the first two quarters. Not right out of the ballpark. Theyre cutting, theyrey cut winter capacity due to brexit. This is something we heard from another company a week or so ago. That the Eastern European focused airline would be cutting capacity to u. K. As a result. Theyre pivoting growth away from u. K. , this is what was warned about previously. They see second half fares eclining 10 to 12 . They talked about weakness in prigses. Although theyre staking with it, theres Downside Risk. Well speak to ryanairs c. F. O. Joining us at 7 00 u. K. Time. Manus weve got phillips, they adjusted their number, 574 billion. They recently raised 750 Million Euros raised 750 Million Euros. We spoke to the c. E. O. Last week in term os they have outlook for 2016 for phillips, you want to think about the Health Care Business here, thats 45 of the revenue. At 2016 outlook will remain unchange the topline sales come in at 5. 9 billion, just slightly below the estimate, second half earnings outlook is going to see an improvement for them. Were going to speak to the phillips c. E. O. Shortly. You can catch that interview with anna and myself at just after 6 15 u. K. Time. And julius bear weve got number there is. Earnings per share 1. 84 swiss francs. The estimate was 1. 6. Profits of 362 million swiss francs. Well have that conversation as well. Anna hell be joining us on this program, countdown 7 00 a. M. U. K. Time. Witzerlands Third Largest money manager. Lets talk investors and viewers through what weve seen overnight on key assets. This is where we are on dollaryen. The dollar extending its gain against the japanese currency. 7 of economists surveyed from bloomberg except more stimulus from the d. O. J. Manus they had their longest losing streak, crude comes back unchanged, just off a twomonth, the number of rigs ht United States of america, increased for the fourth week in a row according to baker hughes money managers, adding to their bearish bets by the most this year. Nna lets talk about gold, 1. 37 , a lit more appetite for the likes of exy thes in the last couple of weeks. Lets go to Richard Sallam for more. Hey, ann nafment escalating concern about antiglobalization sentiment. Meeting in china other the weekend, members discussed renewed effort through fiscal efforts to boost global output. There was a consensus that more needs to be done to share the benefits of growth. Turkish Prime Minister has ruled out early election, say ing the government plans a multibillion Dollar Infrastructure Fund to keep growth on track he said the ountry is open for business. What were saying to Global Investors is, this has come and gone and the national will and the will of the citizens has destroyed the plotters. Life is back to normal in turkey and you can continue your longterm investments and well eliminate obstacles before you. We are laying out the turquoise carpet in front of investors. We have all kinds of tax incentive, investment incentive, and we are giving priorities to value added investments. At least 10 people near a musicfest value were attacked. The attacker was a syrian refugee denied asylum but allowed to remain in the country because of the danger of returning home. This follows another attack on friday night in which a gunman killed nine people. Verizon is set to buy yahoos core assets. That could come before trading begins today in new york. The deal is set to include yahoos real estate assets with some intellectual property. Yahoo will continue to hold stakes in ali baba and yahooa pan. Theresa may will have a meeting to discuss leaving the european union. She will visit scotland and wales. Northern ireland voted to remain. Tpwhrobal news powered by 2,600 journalists and analysts in more than 120 countries. If youre a bloomberg terminal user, go to top growth. Manus thank you very much. A little breaking news from the authority of singapore they said their current policy is appropriate for fighting inflation. This is the week, got the bank of japan, m. A. F. , stand in line. Alongside bank of england and the e. C. B. Lets see how the markets are doing. Judith is stand dig. Good morning. Judith we are seing in light of trade here in asia, stocks generally higher, regional index up. 1 . Despite being pretty flat about half an hour ago. Were seeing hong kong and china come back on loin after the lunch break. Hang seng is still weaker. The shanghai asian market is a touch higher, up by bnt 25 . Korea by. 25 . Korea in positive territory. Weve been watching the nikkei 225. The yen continuing to weaken. Great gains coming thru in australia and new zealand. Theyre up today to an alltime high. The big story once again has been pokemon go and nintendo saying it is likely to have a limited impact on earnings, thats sent nintendo shares down sharpalism mcdonalds which weve been talking about tying up with nintendo on pokemon go also falling in clabreags. An of course the news that verizon may be making a play for yahoo, to make it the parent owner of yahoo japan as well, though ja hao japan is pretty unchanged in late trade. Woolworths, the big supermarket giant in australia, is cutting jobs an closing stores. Investors appear to like the fact that thats a major cost cutting measure. A pop of about 8. 4 there from woolworths. Anna thank you. G20 finance chiefs signal concerns about a wave of antiglobalization sentiment. A month of u. K. s decision to leave the e. U. They step up emphasis on poll stoice boost growth and promote inclusiveness. Manus tom has more for us. Brexit is one of the main issues threatening the g20s core principles. Tom brexit was definitely near the top and front and center was the deteriorating Global Growth picture by the i. M. F. Forecast downfwradse we saw last week. A part of that mix a big part of that mix is brexit and how that unfolds that divorce from britain and the european union. Theres also a crystallization of concern about the rise in antiglobalization sentiment. Policymakers said is reflected, was reflected in the brexit vote and also reflected in the u. S. With the rise of donald trump. Now i spoke to secretary gene of the oecd and asked him about his views for the Global Economy going forward. Take a listen. Were going to renew our predictions in september and then going to go country by country in november. And unfortunately, i think that were going to have some weaker performances. Especial personally in the european theater. Bus of brexit but also because in general the recovery has been weaker than we thought. Manus on the very specific anna on the very specific issue of brexit, any news coming on that front from the event youre at . Tom well, britains new chancellor of the excheker was exchequer was here, he was particularly sought after by the europeans. We didnt get an exact date but we did get demands, particularly from the European Commission and the french, for more clarity on when article 50 may be triggered. I spoke to the European Commissioner for finance and economic affairs, heres what he had to say when i asked him when the brits should trigger article 50. Take a listen. Its up to them to evaluate that. I think represents certainly a huge work, its also something that we have to manage for ourselves. We need to prepare negotiations for the e. U. But not too much time. And one factor is predictability. Whatever this time is, i think one stage we must know what entities, theyll generate and so forth. Tom he said he expects to hear from the britons in september as to when theyll trigger article 0. We spoke to the French Foreign minister owho wants to see et triggered by the end of this year, at the very latest , he said at the beginning of next year. There is pressure on the brits to give clarity in this time frame. Of course the uncertainty around this is whats key for the french and European Commission. The u. S. Saying, look, the brits have got to get their house in order. So there is some debate around this. But they will want to hear more from Philip Hammond and theresa may in the weeks and months ahead. Manus great reporting there tom. She doesnt sound like a laity who is ready to move at anybody elses pace but her own. Joining us is the Global Market strategist from j. P. Morgan. Good morning. The g20 really concerned about this mediocre level of growth. I saw a tweet from other the weekend that plagued my conscience, the delusion of precks sit. Brexit. It will hurt them more than it hurts us. But here we are, the Services Dropping like a stone on friday. Versus this injure zone which is, you know, some would say flatlining. Theres the truth of brexit. I think this is where the u. K. Is swan diving in Economic Data was to be expected wevpl seen it reflected in business confidence, consumer confidence, everything looking like its been falling off a cliff since we had the referendum. Weve not had any official date from the o. N. S. Yet which is why the bank of england stayed on hold. What i would say is what were seeing in the u. K. And tpwhrobally is three big problems. One is productivity. The other is politics and the other is policy, both fiscal and monetary. Those three together are weighing on tpwhrobal growth and its why were in this sort of sub3 . One of the reasons the g20 financial meetings are increasingly important. Anna give us your thoughts on how much financial stimulus we need right now. Chancellor hammond talking about a reset being need. Jack lue talking about how the feeling at g20 was we dont need austerity, we need stimulus. Alexander i agree with those sentiments. Central wangers have threached limbs of what they can do. The top 50 Central Banks around the world cut Interest Rates 675 times. Thats one cut every flee freeh trading day combined with 24 billion worth of asset purchasing. They cant do anything more. Its now for the government to take advantage of the low borrowing cost that made it possible for the Monetary Policy side and in order to sort of do some old cool keynesian stimulus. The difficulty is politics. A lot of governments have come to pow thorne back of austerity promises. Manus what kind of reset can hammond deliver . Will it be tax relief for us or tax relief for corporates . We know were on our way to 15 , 17 is a stop off, isnt it . Alexander i think youll see the Corporate Tax and income tax. My concern is weve had two or three years austerity and trying to turn fiscal policy is a lot like trying to turn a tanker. The changes you make now wont be felt tomorrow, theyll be felt a year or two down the line. It will still feel like were tightening for at least the next few months unless theres a really meaningful shift. Im not particularly pinning my hopes on matsive monetary stimulus today to get growth omorrow. Anna for fiscal, we have to wait for the statements anyway. Alexander, thank you. Manus lets get your day aheadset up. E get a shot of germany. Climate survey. Thats at 9 00 a. M. U. K. Time. A the European Market closed, we get the earnings from the maker of ray bans. A little later this Democratic NationalConvention Opens in philadelphia and Hillary Clinton is set to accept the no, maam nation for president. Anna we speak to the c. E. O. Of dutch manufacturer phillips about results. At 6 30 u. K. Time, the turkish Prime Minister said rate agencies acted too quickly following the failed coup. Fol logue at 7 00 a. M. U. K. Time, the official start to the european bankings Bank Earnings season. This is bloomberg. Manus its 6 19 in u. K. Lets go to richard. Richard as much as 6 million has been wiped off the value of shares for nintendo. The correction coming after nintendo shares almost doubled since the pokemon go game was eleased. The announcement could come later today. Theres a deal set to include yahoos real estate assets work some intellectual property to be sold separately. Yahoo will continue to hold stake in ali baba and yahoo japan. The israeli founded 888 holding are considering a joint offer. Sunday times in the u. K. Saying the time could be worth around three billion pounds. That is a Bloomberg Business flash. Anna and manus. Anna thank you very much. The company is keeping its 2016 outlook and joining us now for his first interview of the day is c. E. O. Franz van how ten. Tissue outen. Vanhoudten. What worries you at the moment . We only have to listen to Bloomberg News to hear all about it, right . You know, we see brace basically volatility all over the world. In the middle east, brexit, elections coming up in the United States, maybe a positive is that i see china growth coming back. We had definitely also had a good growth quart for the china. But overall the world is a volatile place and thats just the reality. At phillips remain focused on our own Performance Improvement an im indeed happy with a solid quarter of both growth and Profit Improvement. Manus you talk about an unchanged outlook for 2016. Are you going to have to cuts to the costs more . You talk about efficient azzi and your own program, what will drive those two statements . Frans already a couple of quarters in a row we saw mid single digit growth for your Health Technology portfolio. We saw in the Second Quarter 90 basis points of Profit Improvement, very much driven by our accelerate breasm expect this kind of improvements to continue. Philips still continues to be a case of self help and the innovations brought to market are very much in demand. Our respiratory care business leverages the internet to deliver better sleep therapy to patients and that is driving high single digit growth in that business. Anna can you update us on lumilex, on the types of groups, companies, private equity and other trade buyers who might be interested in the company . Fa frans. I think knee need to invite you intoosh frans i said we expect to do a deal in the second half of this year and that outlook remains the samism expect to see Profit Improvement in their activities thanks to good design of our components in various products. So we stay focused on trying to come to resolution in the second half of this year. Do you still have competition concerns . Will any new deal you put together risk being blocked by regulators . Frans after the last time, obviously we are very, very focused on understanding all the regulatory hurdles. Trying to get a deal done that will pass, lets say, the scrutiny of the various governments. Manus what do you see what do corporate buyers delayed, what do you see from the consumer side what does brexit mean in your boardroom and your business . Frans i was in london one and a half weeks ago. First of all want to say that philips is entirely committed to the united king do we do manufacturing in the u. K. All of that will stay, no change. And when i speak about volatility, its more the macroeconomic effect of brexit that concerns me. That could affect spending power, that could affect the budget of the n. H. S. I think these are the kind of things we need to wait for at this time the impact is very limited. But that could change of course over the next years as, lets say, these matters unfold. I certainly dont know that. Im going to be focused on improving the philips business in the meantime. Manus you make a commitment to the u. K. , im curious to know, without even knowing if weve got access to the e. U. , youre still prepared to make that commitment without knowing all f the details . Frans yes. We have customers, we have employee, we have factories, i would be very amazed if the nditions would be so disadvantageous for that to disappear. It is in yurps and u. K. s interest to stay close. Ive always believed that, you know, europe will be stronger if we all Work Together tightly. Anna briefly, we look ahead to the vote in november in the u. S. , the president ial election, how big a risk is a Trump Presidency for your business and a rollback on obamacare . Frans well, lets say whatever the outcome of the elections is, i believe that the u. S. Is a great market. Philips is recording 33 of our revenues there. We have many assets. And you refer to obamacare. You know, in all my travels across the world, i know that the world will need more health care. And that needs to be affordable. The trend toward outcomebased care, valuebased health care is there to stay im sure of it. Manus thank you, this is bloomberg. Anna nitis shot of the tokyo imperial palace for you. In london. 6 30 daybreak is of available on your mobile. Lets look at some top stories theyre covering. We love the front cover of this one. The gleb on the couch having some sort of crisis. Talk coming out of g20 at least in that draft document bloomberg got hold of, talking about the world at a crossroads, we hear expansion, not austerity is what comes out of this g20 according to jack lue. More need for the benefit of Global Growth to be shared more evenly, according to christine lagar. Things may be changing. Manus they may be changing. Tha