A. M. Eastern time. Alix after that, we have some heavy hitters lined up for you. We have heralded him harold ham joining us. We will get his take on the booz cruz. We will find out what nelson the story of the day seems to be the fx market. Jonathan absolutely. I think that is where we have to begin. The question is on sustainability with we are discussing the bank of japan with the ecb. This is what it means for the fx market. It dipped below 106. Ay comes back, but we stsya stronger on the yen. Helicopter money was off the table, not of negotiations at this point. Japanese yen in the equity market starts a little lower, down about 4 10 of a percent. If you look into the doubt, a night dow, a nineday winning streak. Ahead of these Monetary Policy conversations, twoyear burdens, twoyear yields a little higher. 61 basis points on a frontend on the german twoyear. Alix thanks so much. Lets go around the world to check in with our Bloomberg Team of our indepth coverage for top stories. Governor kuroda saying no need for the helicopter money. Caroline hyde in frankfurt counts as down to the ecb Rate Decision, and make a murphy is very tired in cleveland wrapping update three of the gop convention. We want to start you off with a coronda. News out of mr. This was released today, not recorded today. But what does this mean taking helicopter money off of the table . Good morning, alix. It is a statement from governor kuroda. He is selling is the helicopters will stay i on the launchpad for now. Helicopter launch a without changing the rules, but at the same time, it does not take pressure off so when the number unto meetings they spread it, even if they are not going to do helicopter money, there is an expectation they have to take steps to mitigate falling exports, the weak economy. Governor kuroda, back to generate, he ruled out negative rates only to surprise us later. Say that the boj will not press further into unconventional territory as the months go by . The feeling that everything is still on the table. Alix to your point, we saw an immediate yen strengthening, but we had nowhere near recapped the losses we saw earlier in the week so the market could still expect that stimulus. You are right. There is pressure on the boj. They could buy more bonds. Lets not forget that Prime Minister abbe is coming around the corner with a bazooka as well. Maybe another big push by the government, so we are heading for a very interesting tfew weeks o. Alix thank you so much. Front and center of policy. Jonathan and communication as well because it is coming down from the wall street journal that this interview was conducted in the middle of june. Initially dropping off and coming back as well so a real communication issue there at the bank of japan. Some communication in the fx market now warranted because reply to understand whether the commas are dated and what it things have changed in the last three weeks. Lets get to Caroline Hyde over in frankfurt for todays ecb decision or not decision. Walk us through it. 45 minutes time, i there inwill be frankfurt because no policy change expected by any of the ists we spoke to. What about september . What about a press conference in an hour and a half . Will he send off brexit . Saying us we can bring a more stimulus, war bond buying buying more bond overall. We did see a cut in the deposit rate as well, but another key question is how are you buying worth . Lio 80 billion euros so many bonds are eligible to be bought now. It is so hard to find the 80 billion euros when you have 60 in german debt trading below. 4 . Jonathan the ecb makes the rules. Are they just going to change the rules . I think that is what many economists and researchers are expecting. They can tinker with how the qualitative easing is done. They can buy longer maturities, longer than the 31. They can buy more individual bonds. They can hold more than a third they have limited themselves to. They can even say we can buy had yields below the deposit rate. That is perhaps a step too far, but we will be gauging signs from mario draghi as to what he do about the buying of bonds. We will be hearing what he is going to do, what he thinks about the crisis unraveling in his own country. Jonathan fantastic work. Much more from her throughout the day in favor. In frankfurt. We will break the decision in 38 minute times and the 45 minutes after that comes the News Conference with mario draghi. David thanks very much. We are going to jump to cleveland. Republicans held the third night of the convention, and the news was not what they were expecting. Stage, andz took the then, he refused to endorse a candidate. It was not wellreceived. Ted cruz stand and speak and vote your conscious, vote for candidates up and down the ticket who you trust to defend our freedom and to be faithful to the constitution. David those were boos you are hearing. Megan murphy has been reporting all week from cleveland. Normally, the tv people go out looking for some drama. This is pretty extraordinary. What was it like out there . Megan oh my. From a plagiarism scandal with the first lady to the booz we heard, the one thing you hear from people is they have been around politics a long time. They have never seen this seems we saw last night. Ted cruz bood off the stage. His wife had to actually be ushered out of the arena. This is a moment unlike any other we have seen, and we have seen a lot so far in this convention, so that is saying something. Interns to tonight. Donald trump will give his speech. Whether or not he can project any sense of unity, can he save this convention is the question everyone is asking. David the reporting is that he knew in advance that ted cruz would take the stage and not endorse him, and he decided to let him go anyway. Is that a mistake or him trying to bring the parties were him . Egan up until the very end, they did not know exactly what he was going to do, where he was going to go. In the arena last night, he was building up to the moment. He was leading the crowd down the path of endorsement. It was smart of the donald trump cap to let him do what he was going to do. They do if they did not, they would prolong this fight. The day, all we are talking about in this convention is not the message, is not what they want to get across about making America Great again. We are talking about scandals from plagiarism to ted cruz. They had been abl able to solidify a single message of how we want to receive our economy and the social doctrine we have seen. Whether he will do that in a single speech, it is going to be very difficult. The hurdle is very difficult for him. David thanks very much to megan murphy in cleveland. Now we go to alix for a look at the stocks on the move. Alix it will be a fun night tonight. Biogen news breaking in just the last few minutes. Ceo resigning, and the company upgrading is forecast. Watch that stop as we head into the open. Qualcomm for the sale of two chips. Slower growth in the Chip Division is worrisome because pc sales are not so great either. Qualcomm, it is a different story, getting a lot of customers over in china. That is helping boost that well. Ker as you have to look at joy global being bought out. It is the worlds secon secondbiggest mining construction. 2. 9 billion, and a huge bet on a rebound in commodity prices. Wrapping it up with the European Airline travel. Easyjet and lufthansa, very bad days for these guys. Easyjet in particular being hurt by terrorism fears restricting travel. But also raise it. They are worried they may not be able to travel as freely around europe as they used to. Lufthansa lowering its fullyear forecast. Watching this group as well. Busy day. Jonathan coming up, mario draghi and the ecb less than 35 minutes away. We get a decision on Monetary Policy. That is all of five minutes later with a News Conference. We will take that News Conference right here on bloomberg. This is bloomberg. Jonathan this is bloomberg from new york city for our viewers worldwide. To the fx market we go where there is a stronger japanese yen. This after an interview broadcast today with governor kuroda of the bank of japan with bbcs radio on helicopter money. Apparently ruling out helicopter money. Reports suggest that interview was conducted in the middle of june. That is why you see that retracement on the chart. I want to bring in someone i know very well in london. I want to start with central bank communication. If you see that headline and you are operating in this fx market and then you find out a central or an outlet sat on the news for a month,m how difficult is it to understand centralbank policy with the mitigation like this is so muddled . Centralbank mitigation is difficult, especially nowadays that monetary policies are much operating at the limit. One thing i would point out is that we really did not have a lot of noise coming from th as s helicopter money is concerned so my impression the past two to three weeks is that the markets actually interpreted this potentially upcoming fiscal stimulus is being financed by helicopter money, but i cannot recall an instance in which kuroda alluded to that possibility, giving it a realistic possibility. Jonathan the bank of japan by buyingprohibited from bonds directly from the finance ministry anyway, so we do they cannot do it by law, but the very suggestion they are going to do something is driven by the fact they have reached the limitations of the current program. A lot of people say nothing counts less than a buyout there. How is this buyout . How is Monetary Policy shape up in the coming months . Now isos i think right a very close call as to whether these guys are going to do anything or they are going to announce a third round. I think helicopter money is almost a near zero probability event, and it is a big difference because in the helicopter money as i understand it, you are increasing the monetary base. The way i see things Going Forward is that in all likelihood, we will get a fiscal stimulus from the government. There is a 5050 chance this will become committed by a third round. In terms of currency implications, i still am quite bearish on dollar yen. We may see shortterm spikes, but it goes lower from here. David i wonder what we know about possible coordination between abbe on the one hand and kuroda on the other. One is the likelihood of a joint announcement, fiscal combined with qe or whatever they do at the central bank . Vasileios it does not have to be as long as we dont go down the road of helicopter money. Obviously, if they go down the road of fiscal expansion and at the same time or at a very similar time, they announce a third round, it does not have to be an explicit a announcement about ordination because this is pretty much the boj buying assets in the secondary market. Respect, i dont think we will get a joint announcement. Jonathan one thing you pointed out over the last couple weeks an, you said quite clearly you dont think that should mean a weaker japanese yen. Why is the market interpreting it the other way . Vasileios i think there has been a growing speculation by given a veryat high debt to gdp ratio that the market thought when the fiscal, goespense down the route of fiscal byansion, it does that issuing do debt and having the bank of japan buy the new debt. The problem i have with all that is it is not a very natural connection. One of it does not follow from the other. Happen. There to be a clinician, but it does not necessarily mean that if we go down the road of fiscal expansion that the boj well. Jonathan dollar yen retracing some of the losses at the moment. Alix before the boj, we have the ecb. Coming up, we are headed to the ecb big decision. Will it be deja vu, high expectations, and little delivery . We will have an exclusive interview with nelson peltz. A very busy thursday morning underway. This is bloomberg. Jonathan from new york city for our viewers worldwide, this is bloomberg. Later today, the ecb Rate Decision comes out and about 23 minutes time. Still with us from london, the head of global fx strategy. With the ecb, it is not often about the decision. It is about the conference that comes 45 minutes later. You can follow that right here on bloomberg tv of course. What are you looking for from that conference . Vasileios first of all as far as the hard facts are concerned, the ecb does not have any significant amount of information to assess any potential damage that has occurred on the back of the u. K. Referendum result, so i think that mario draghi will highlight the downside of risks and basically said a message saying things are there in case deteriorate. Other than that, we dont expect any action. Alix what would that do to eurodollar . What is the Downside Potential . Vasileios i dont think there potential. F downside from a technical perspective, the 110 has proven to be quite a strong support level. Yesterday, we briefly fell below that, but then we came higher. I dont think the eurodollar is going to be very exciting over the next two to three months or throughout the summer. I think we will be between 110 and 112. Alix come on. Get as excited. The question would be what they are doing with their bond buying program, both corporate and sovereign. The you think it will affect the currency at all . Vasileios given the fact that we will not have any announcement today, this is likely to have any impact on the Exchange Rate in the shortterm. Our view is that sometime between september and december as long as we do some filtering through of the u. K. Referendum result, we are probably going to get an announcement of an extension of the Program Going into september 2017. I think anna martin, this will provide some headmans for the inds for the euro, but you have to put it in perspective. Fair value of the euro is already trading quite undervalued. Beid the euro may not interesting, but the leverage trade with turkey is. Tell us what is going on . Vasileios right. You know he has some quite sizable moves. I am bearish on the lira. I am sure nothing goes down or up in a Straight Line as we all know. We are going to see some choppy price action. Potentially, we are going to see relief. I am bearish in the medium to longterm. We have an escalation of the political front, plenty of certainty, which implies a lot of hurdles. You have a consolidation of erdogans our, which seems a likelihood of a significant compromise of the independence,. David there were reports overnight of funds closed into turkish etfs. What do you make of that . Vasileios i am not entirely sure. I would be very cautious in interpreting that into a very generalized environment. I think all the points of the bonds in highyield turkey, but i would legally point out there are a number of emerging markets out there which offer if not as high but at least quite high yields that do not suffer from the same political risks and political dangers as turkeys. David jonathan thank you jonathan thank you very much. The ecbs latest Rate Decision coming up in about 20 minutes time. 19 to be precise. 45 minutes later, we get a News Conference with the man himself mario draghi. Alix results are moments away. We will bring them down. 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. Hohes woiithongestc . Estc. Thlais hotas hke hyson at ey llg ca hke cwistomin biness rn fid , p cth bou e. Juais hotas hke hyson at ey ddstus azetomimeag y wiourofiay llg ca hke heesev. Or upde. itrestn i, w c ue e dry. Ynebuss. Oding uc pwiwiro fi hthatpsroui jonathan from new york city, this is bloomberg. In the fx market, wow. Move. A redhot it is the dollar yen down, then back up. It had a 107 and oh, and now it in a bbc interview broadcasted today, we found out it was recorded in the middle of june. That is why you are seeing the retracement. Dollar yen trading stronger at the back of that. Some breaking news coming from gm. Alix gm is the highlight here. The company is boosting its fullyear earnings review. You have a beat on the top and bottom line. 1. 86 a share. Revenue a staggering 42. 4 billion. Overall, it was record profit here in the u. S. You also had china sales higher. I should point out, this is europes first profitable quarter since 2011 when it comes to the european division. These are blockbuster numbers. The stock really popping. David pretty much across the board, everything you are looking at, the euro, u. S. , china. Jonathan you want them to be on estimates and raise it for the year. That is what they have done. Raising guidance, too. David we will talk with jeff green. He reports on automobiles. Welcome to bloomberg. We have just gotten the numbers, as have you. Give us your overall take. Is there a problem . There is not a problem in the numbers. The question is whether investors will look at the numbers and see something they can act on. Gm has been showing profit from many quarters in a row. This is their fourth or fifth time exceeding estimates but they are just moving the needle on the stock. David it also goes to the strategy i just talked to jonathan about. They got down on unit sales in the United States because they dont want some of the fleet, the rental cars so much. Sales are down, but profitability is up, so is it the strategy working . Is their strategy to have a profitable sales. They are saying we had the responsible thing and showing we can continue to be profitable even if the market were to dip. The investors have not been jumping on this. The stops should be moving based on their priceearnings ratio and every other factor, so i would be curious to see what the stock does. I should point out also that we are getting a little bit about look on some brexit. Brexit could cost the company 400 million in the second half of the year, so starting to get some quantifiable earnings estimate revisions due to the benefit of which is interesting. David we had Chuck Stevens we have Chuck Stevens on in about half an hour. We will ask him. What is going on in china phrygia . Gm . China with jeff you cannot j