A warm welcome to bloomberg daybreak europe. Im anna edwards. Manus get ready because well have a slew of earnings today, the busiest of the season. First have core earnings per share is that the. Outlook for the this year. Sales came in 26. 34, above the market estimate. They had guided that they would be broadly in line. They are confirming its about the bio similar threat. The Cancer Therapy was 1 7 of their revenue. A footnote to history is the line from the ceo. Numberscondquarter coming through, confirming the 2017 guidance. The bad news they seem to have missed on second order numbers. Below the estimate. Secondquarter revenue also a touch below the estimate. Ramparthe reengineered remains challenging. Superjumbo facing a number of issues. The newest widebody. Somesulted in cancellations. A lot to look out on the airbus numbers. Basf,etting numbers from keep in a nihilist germanbased company. Adjusted ebit. When looking at what the actually reported for the second is a, the sale number shade below the estimate. There saying significantly higher adjusted ebit 2017 and seeing significant revenue increase this year. This is a company that has shied away from consolidation in the second. Manus one other line coming through from roche. They expect to further increase the dividend for 2017. Thats a critically important line coming through on the guidance and the dividend. Adjusted ebitda coming in significantly above the estimate of 7. 9 . They will spend 3. 7 billion in Capital Expenditure. Rose is up revenue by 5 versus an estimate of 3. 8 . Unfavorable transaction in brazil, they were expected to moderate going into the Second Quarter. Morgan stanley saying that mexico, china, africa, and argentina should all post stronger growth. It looks like the organic growth is something that is triumphant in the numbers for the Second Quarter. Explosiveking at an overachievement there. Anna as well as the earnings story, 85 out of 600 at the stock 600 juggling the relevant screens. We have a lot to digest in terms of the fed. Radar andup the risk show you the asian equity story. That inflationng is persistently at the low target. Unwinding the relative unwinding the Balance Sheet relatively soon in september. The earnings season with samsung and nintendo coming through with good numbers. Manus samsung is talking about the capital editor being raised significantly higher. 80 of companies have reported higher than it profits. Your looking at the lowest since 2016, pretty dovish for rates but hawkish for the Balance Sheets on seems to be the consensus view. What news does that send to the white house . Is it good news in terms of the economic prospects in the u. S. . Better than estimated result. We put in the aussie dollar as well. The inflation data disappointed but then it was up by. 9 yesterday, expending extending those gains. Juliette u. S. Federal reserve officials have said that will begin running all their Balance Sheet relatively soon. The Central Bank Left its benchmark rate unchanged as policymakers set to move toward their inflation goal. Another milestone in an economic recovery down its ninth year. Axa plan to find middleclass tax cuts with a new top rate of 44 for those earning more than five dollars a year. Its unclear whether donald trump woodson or the move. Would bring the top rate to the highest level in 30 years. Russia has threatened to retaliate against new sanctions passed by the u. S. House of representatives. The Deputy Foreign minister said the measures make it opened up on will to achieve the Trump Administrations goal of improved relations. Weekses less in three after donald trump and Vladimir Putin held their First Official meeting at the group of 20 summit. Chinas industrial firms picked up their pace of Profit Growth last month. Accelerating from the pace of months earlier. It underscores the chinese economies momentum and helps Indebted Companies grapple with their giant debt load. Sweden has been hit by political crisis that threatens to topple the social democrat led government. The Prime Minister will have to decide how to respond as they plan noconfidence motions against three of his cabinet ministers. The Security Breach could resulted in classified information getting into the hands of foreign powers. The u. K. Prime ministers director of strategy has time in at a critical negotiations with the european union. He believed the post at the end of this week. The departure means may has lost both her top strategist in the wake of last months general election. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the. Loomberg at top we have the regional Index Holding a december 2007 highs, the biggest jump weve seen on the msci asiapacific index ands june 2. The nikkei being boosted by Solid Earnings from Companies Including nintendo. Youre seeing the asx 200 of my. 4 . With theot of concern msci 500 under pressure. Noble group in singapore plummeting after it warned of a 1. 8 going dollar loss, now all caps almost 30 . Nintendo rising after that number the cancer after the bell yesterday. More than 68 billion yen in profit. The nikkei reporting toshiba chip unit sales could still be elusive. , you can seet industrial profits continue to search. Also reflected here in the Producer Price inflation. There had been some concern that went tpi came off the highs we saw in december last year he could way into industrial profits but that doesnt seem to be the case. Concerns that momentum is stalling continue to be proven wrong. One is never wrong, only temporarily interrupted. The senate rejected a simple repeal of obamacare. The failed amendment similar to the Affordable Care act repeal that passed congress in 2015 and was then be towed by thenpresident barack obama. Earlysenator still in the stages of an unpredictable floor debate on health care and there are a significant doubts that republicans can muster the votes needed to pass any kind of deal. There will be an allnight boat later next week that could feature dozens or even hundreds of amendment. Manus inflation remains below target even as the economy picks up steam. With the details, here is mike mckee. The fed confirms wall street expectations. Concern about inflation and a strong hint about Balance Sheet timing. The committee expects to begin and lamenting its Balance SheetNormalization Program relatively soon, providing the economy evolves broadly as anticipated. Investor consensus going into the meeting suggests the september announcement. The benchmark rate stays in the 1 one. 25 . In what will be interpreted as a dovish move, it was dropped to a reference of running somewhat below its 2 target. The forecast language has not change. Inflation is expected to remain somewhat below 2 in the near term but stabilize around the committees 2 objective over the mediumterm. A bit of a surprise on the Balance Sheet and inflation language but a sickly it leaves investors where they were going into the meeting, anticipating a Balance Sheet move in september as a rate move if it happens, no earlier than december. Michael mckee, bloomberg, washington. Anna joining us is the global generale. Ciete there were some language surprises on inflation but no game changer for peoples expectations about Balance Sheet news in september and Interest Rates changes in september. Does that remain your expectation . Argues that the Business Cycle is coming close to that. We see a slowdown are recession in 201922. One of the things that is puzzling is the fact that unemployment in the u. S. Is at a 13 year low and yet inflation is still below the target. So theres a big question, is the phillips curve rogan . That is the link between Wage Inflation and unemployment. We will start to see inflation moving to the left at lower levels than be her. Our view is that we should see more inflation going over, but its just a question of timing. Manus what probability do you put on theyre still a little bit of time in growth before that . Kokou if you look at copper 1949 termsin since of how they involve through the cycle, currently a roughly 80 through the current cycle, which has been one of the longest Business Cycles weve seen. We see a high probability of that occurring. It will depend on whether we see unit labor cost inflation and its a Trump Administration is able to pass through tax cuts, the cycle can clearly last longer. But we see a high likelihood of a slowdown in 2020. Manus were just getting some Deutsche Bank numbers. 6. 6 billion in revenue. The man in charge is in the process of turning that bank around. 822 million on the pretax profits. You have net revenue of 6. 6 billion. Thems a very clear ms. For , just to give you some context. Fixed income in the u. S. , we saw those numbers drop by 16 , so these are the top line numbers from Deutsche Bank. We will have a conversation with john a little bit later in the day. Income comesr net in at 447 million. , butncome is significant will have that conversation a little later this morning. Matt miller join me for the first part of the market show and then he will never often do that. F and do that. The estimate was three . 11 million. Anna you talk about tax cuts and what they could deliver in the united states. Is that the difference between recession or not in a couple of years, whether we get those tax cut . Kokou absolutely. This will be a key different you need after this time a key differentiating factor this time. Literallystories have unraveled because expectation of more inflation has been wiped out from market practice except for the equity market. In our view this is driven by Share Buybacks at 400 million the year. Anna nestle reporting firsthalf numbers, or granting revenues coming in at 2. 3 growth. Thats below the 2. 7 english four by analysts. This coming through for the worlds biggest food company. The reason i mention the buyback , theyve had respond to statere on a 3. 5 billion last month and announcing a big Share Buyback as much as 20 billion francs. Manus they are talking about organic growth being at the lower end of the reign. Of the range. They are building a plant in japan. Anna very exotic. Revenues not universally strong, is they would have liked. Theyre making Good Progress in bringing the cost down at the bank. That see what he has to say about this, that the board to be coming to an agreement with the former directors terms of some retained bonuses. In terms of revenue, its not universally strong as they would of liked. Theres a great deal of concern this time last year about capital and liquidity. A lot of business left Deutsche Bank. Thats the top line from john cryan in terms of the business. Be back to talk to you in just a moment. Well get his thoughts on some of the earnings season and how you play that in the market. We have 85 of europes Top Companies reporting through the day. What do you make of this earnings season . This is bloomberg. Anna welcome back to bloomberg daybreak europe. Second quarter profits the expectations. Adjusted net income 1. 29 billion. Inl be speaking to the cfo his first interview of the day coming up at 6 30 a. M. U. K. Time. Facebook investors optimistic about revenue potential for messenger after Mark Zuckerberg said he would like to move a little faster. Facebook reported secondquarter sales that beat analyst 29. 3 billion dollars. , net incometronics rose to a record 9. 16 and the three months ending in june while sales by 20 , killed by the success of the new galaxy fortphones and demand semiconductors. Thats your Bloomberg Business flash. Manus lets dig a little deeper into the earnings quarter. We have the global head of solutions that societe generale. Getting a sense of the east of the reporting season. Nestle got a little bit lower. Sales growth 2. 3 . Deutsche bank looks as if it has the. , butis the Earnings Report a natural are one of the splendid leaders here. Kokou absolutely. One thing to remember with financials in europe is fact that thats gone through a darwinian process of Natural Selection by their return on equity. Theyve had growing pains, when you look at a lot of the issues with the eurozone. Over the past two months we have three european banks either in bailout are being bought by other bigger companies. The transformation of the dna of the Banking System is paying out. Variety ins a global banks and european banks, not a Great Condition compared to its peers. Kokou the pricetobook is out ofin europe count with its peers. One of the things we should see Going Forward is less volatility on r. O. E. Which is low because of leveraging, and driving lower cost of equity which should improve the price book overtime. Its interesting to point out the profits on the earnings site doing better than the top line which clearly shows the benefit of the costcutting, yielding benefits. Manus we have a few more headlines coming through from Deutsche Bank. They see revenue from their operating business at the lower than last year. Transition. It credit loss provisions are likely to increase in the second half. Going back to the discount pricetobook value relative to their peers. Ac fullyear origination up ever so slightly. Line after line about a bank that is in transition. There,out revenues profitability and the top line falling short. Manus we get shell next hour. Is this a should is this a sector that is a interest to you . We are at a shadow of where we were in 2014. Kokou the oil price has been one of the big surprises because of its performance. We have roughly a target for the oil price but it will be interesting to see how the Companies Manage their cost cuts that were implemented last year when the oil price was much lower. So we are still early stage in the earnings season. Thank you very much. Manus up next we will dig deeper into some of the numbers. This is bloomberg. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Anna welcome back, this is bloomberg daybreak europe. 2 30 in tokyo right now. Lets not dwell in asia, lets get that to europe. Bayer has been in the headlines, secondquarter sales up 12 . 19 billion in terms of sales for the second order. At three point zero 6 billion. The forecast for the crop unit in brazil, there was a big stockpile there. Three different parts of this this. Terms of sales, thats a nice beat for the second order. I love what are the analyst wrote down, best forgotten after the profit warning. Thats the top line from bayer. They still on 45 . A few more results but we will have a conversation with ceo at a 30 u. K. Time. Anna lets talk about french earnings, dan and reporting. Concerning the 2017 guidance, performance in line with dues at they were returning to the first half of 2017. With sales to generating. They bought right way, saying it allows them to increase their guidance. Are watching out for underlying sluggishness in the over market in europe. Getting numbers coming through from the French Market. Adjustedcond quarter ebitda, keeping the policy of selective acquisitions. In spain there seen a nice recovery and in africa and the middle east section and return to growth in france for the first time 2009. Sales up by 8. 8 in spain. A nice set of numbers for them there. Price wars in the French Market have been a story little while. Lets return to the oil story, norways Biggest Oil Company reporting its highest profit since 2016. Beating average analyst estimates. Joining us on the phone is the cfo. Welcome to daybreak. Well done on the numbers. You are telling us your reduced your overall debt load and the market is most focused on that. What is it cheap of all what is achievable on the debt market Going Forward . Hans good morning, today we present solid results based on strong production. Transformed the company and we have strong cash flow your today. Showing that weve covered investments in dividend. At 50 goingthe same it will very quarter to quarter based on price changes and commercial decisions. Were not providing any guidance on gearing Going Forward. Anna going into all of that will be your plan for investment and Capital Expenditure. Cap your outlook at 11 billion but youve cut back your guidance for the same year for spending. Talk us through the thinking behind those decisions. Hans youre right, we expect to read retain