I love that question. If they get a be key getting into friday. Ofathan for me, the bank england leaves forecasts unchanged. The overwhelming majority expecting rate cuts this thursday. Thats going to be fascinating. Alix fascinating communications coming out of the boe. That trickle down into european stocks. Rally into the recent coming off the biggest monthly gains this october. The hsbc Global Equity strategist ben laidler. Lots of red on monday. Thethan lots of green in last five months. The s p 500 has been win, win, win. To kick off this mondays trading is softer in europe, the ftse down about. 1 . The dax marginally in negative territory. Alrightx market, its on this one throughout the week. The cable rate with a weaker pound off the back of some pretty weak manufacturing data coming out of the United Kingdom ahead of that bank of england rates decision. Is coming thursday. The commodity market is just wow, wow, wow. The biggest monthly drawing some down as weith wti kick off august. In the bond market, yields coming up across the curve on treasuries. Five years up three basis points, just over one full percent. Alix high 30s will be the bottom for the oil prices. Lets check in with a Bloomberg Team for indepth coverage of all the top stories. Tom mackenzie is in beijing on the latest with Robert Kaplan. In hong kong, nicholas comfort in london for the latest on the European Bank stress tests. Tom, youre and interview with dallas fed president Robert Kaplan, what was your number one takeaway . Tom he said it is too early to tell. He can make a call of september ending is needs to look at more data, particularly any revisions. He said dont take center off the table. Take a listen. September off the table. Robert kaplan september is on the table. We have to see how invents unfold. Events unfold. Its too soon to jump to conclusions. I think i have learned is a central banker, you have to be patient. We have time to make a judgment between now and the september meeting. I want to take advantage of that time. Now andreports between then, i want to get the benefit of that information before commenting. The president also said that the dallas fed forecast for 2016, growth would likely remain just below 2 . He also said the Brexit Effect on the u. S. Economic growth picture was just marginal. Alix also we heard from the new york fed president , bill dudley. He seemed a little more optimistic, but also pessimistic over the longer term it comes to those hikes. Tom thats right. He was speaking in indonesia, he said it was premature to rule in any finding from the fed 2016. He also said that the market view of just one rate hike 32017 was overly complacent. He said the fed wants to avoid the taper tantrum of 2013. That theid as well november elections will not factor in to u. S. Fed policy decisions. Alix thank you, Tom Mackenzie joining us from beijing. Breaking news this morning, tesla and solar city officially going to combine in an all stock deal valued at 2. 6 billion. Atvalues solar city shares 25. 37 apiece. More a few10 dollars less from where shares were trading at the end of friday. I should point out that solar city does have a 45 day go shot period, where he can look for competing bids. To combineolar city at a deal at 2. 6 billion. David you unless gets his way. This was in thinking wanted to do. Elon musk gets his way. They are not sure its good for tesla. Alix fair enough. He does have a termination fee of about 78 million. To your point, a lot of shareholders wondering why tesla that has a lot of debt, is going to go spend a lot of money to buy solar city. David shareholders want you on musk to stick to his knitting. Elon musk to stick to his knitting. New data out of china points to strengthen the Service Sector and weaker manufacturing. We turn to robin ganguly, we want to talk about what those numbers show. Its been a confusing day for us in this part of the world, as can sometimes happen. I think the important take away from all of this is manufacturing hasnt inclined substantially. Hasnt declined substantially. China is seen as a barometer of the world economy, so chinese manufacturing is still more or less where they are, its a free positive sign, especially after data that we saw a couple of weeks ago with gdp beating estimates in the Second Quarter. I think if we dont look at the small bits of the numbers, that ntractnt co substantially. David if you look at the divergence, should we be focused all . E caixin at shares traded in Hong Kong Rose substantially, 1. 92 . The brenda gauge showed a jump in manufacturing. Yuan declined substantially today, about 0. 2 . The most in more than two or three weeks. They focused on the official manufacturing. There is some confusion, but at the end of the day, the takeaway is that there hasnt been a substantial deterioration in manufacturing. David thanks, robin ganguly, reporting from hong kong. Jonathan for Bank Analysts and journalists, the weekend was ruined because the stress test in europe came out after the close on friday. One of the people that had to dig through it was nicholas comfort. Start with the stress test and the result of what you saw coming across europe. Nicholas the debate was going to be with a tough enough or not . Saying, we had voices things were a lot tougher in 2014 the last time we had them. Now, the gdp scenario is up pretty tough. There is also a whole array of challenges the bank has to take account up. The litigation front for Investment Banks, they took their toll in this test. Whether it is tough enough or not, that is still to be discussed. What equity markets are telling us today, after initial rallies, they havent falling. We are seeing Investors Analysts saying you came through the tests,what equity markets are tg us today, by and large, but whs the growth . It is a pretty mixed picture for investors today. Jonathan i wonder for the chief executives of some of these banks, whether there are decent results . We expected monte paschi to be the underperformer. Maybe the standout was Deutsche Bank. Run through Deutsche Bank numbers for us. Nicholas Deutsche Bank was in ratiosworst in terms of in that adverse stress scenario. If you look at the delta, the change between the capital ratio they started out in where they ended up, it fared a lot better than the average banks. The concerns over capital for Deutsche Bank have been so intense, this may be a positive signal for many people at the bank, and for investors. They didnt do worse than expected. Comfort inicholas frankfurt, thank you. Call forking into that Goldman Sachs, they are downgrading equities to underweight over the next two months. Overweight cash, going to add the sellout. Saying you have macro fundamentals, more stimulus is needed to keep stocks higher. But a lot of that is already based into the market. This is s p year to date. Whats go over those levels. 5 is the record clothing closing level. We are still right around his record highs for the s p. Moving over and talking about the European Bank stress test, monte paschi, the potential no bailout,ctually, but a rescue funds. They will issue 5 billion euros in equity if they can sell off their nearly 28 billion euros worth of nonperforming loans for about 9. 2 billion euros. At the 33 of the growth value of the loans. A little bit of a relief rally today, but who will be there to buy some of those assets . Out withen ing baidu, this is one of the stocks we are watching on that uber didi deal, rising a touch in the premarket. Baidu and other shareholders of uber in the china market will get about 2. 3 in that company. We were technologies will hold about a 6 stake. As much have evaluation as 35 billion. We are following all those headlines for you through the next three hours. Now for what you need to know outside the world of business, shery ahn is here with first word news. Shery backlash is growing over Donald Trumps comments about the parents of dead Muslim American soldier. It has to do with remarks made by the soldier father of the Democratic Convention. Thep questioned if soldiers mother was in a lot to speak at the Democratic Convention because she was muslim. The woman said she was too distraught. A number of republicans joined Hillary Clinton in condemning trumps comments. Theresa mays government says it is committed to the socalled triple loss pension guarantee. The policy ensures retirement payments rise by inflation, average earnings, or 2. 5 , whichever is higher. Former pension minister has called for it to be scrapped. Will be of triple loss enormous by the end of the decade. Supporters of turkeys president demonstrated in cologne, germany. 20,000 people took part in a rally that had the slogan yes to democracy, no to the two. Anizers wanted air to one the president to address them by conference, but authorities turned down the request. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im shery ahn, this is bloomberg. Jonathan coming up on the crisis in three separate events. Japan, the u. K. , and the United States. All with data and policy announcements that are sure to move markets. We have your preview, this is bloomberg. Jonathan from new york, this is bloomberg. Im Jonathan Ferro. On tuesday, japans cabinet is expected to decide on the stimulus package. The bank of england is a spectacle rates on thursday for the first time in over seven years. In the u. S. On friday, its jobs day. Joining us is michael mckee. Where should we work, friday backwards . Would do friday backwards. The fed is going to affect markets all over the world, the others are more specifically located. Fed speakers suggesting the markets are not paying enough possibility attention to the possibility of a september hike. The data coming in strongly say september is a real possibility, and friday we get the jobs data, its supposed to be good. 170 5000 jobs created, a drop in the Unemployment Rate, and an increase in hourly earnings. If we get that, it will change some perspectives about where the fed is going and when. Right now come the markets are saying nothing until next year. David we have disappointing gdp numbers last year. The job numbers on the one hand and the gdp on the other. Michael the fed will pay more attention to the jobs numbers. They feel it is more contemporaneous. The gdp numbers that was a very good explanation. Inventory levels were way down. In theory, that should be boosting growth in the second half of the year. If they get strong jobs numbers and there is no indication the economy is rolling over, they will be more inclined to go. They will ignore the gdp numbers more. Jonathan the debate for bank of england is a lot easier. On thursday there was an overwhelming consensus they have to do something. Bad news today, the pmi for the United Kingdom fall significant way below contractionary level. It got worse, according to the marketplace, as the month went on. Brexitcket impact impact is starting to be felt. You go back to what they said at the july meeting. They all but promised saying most of the members of the committee expect Monetary Policy to be loosened in august. The data support a cut, theres no reason they are not going to cut. They may increase the amount of their qe burgesses and the funding for lending schemes. Funding for and the lending schemes. This will be the first rate he has made in the four years he has been there and we will come in with a bank. Jonathan never able to do a thing. Alix hes known for getting ahead of the curve. He didnt do it at the last meeting. Now its all steam ahead. Im looking at japan, and advisor saying the government and the boj should recognize the fact that the combination of fiscal and monetary policies is already happening. It is not helicopter money, its already working. They should tell that to investors in that will help sentiment. What can we expect tomorrow . Michael this will be the fiscal side. They are going to adjust the idea of helicopter money, there is good reasons you dont want to necessarily do that. Hes going to announce additional spending, the real key is how much of this is going to be new spending. The japanese announces new plans. , ¥28id 287 billion worth trillion. Most of that will be stuff they have already announced, and they add more on top. They had 26 consecutive supplementary budgets, fiscal stimulus budgets. It hasnt got them out of the hole yet. David its not just how much, but when . , andig does it need to be how quickly does it need to be spent, and your opinion, to affect markets . Michael it doesnt take that much, as long as theres a fair amount if they did ¥10 trillion, that would really get the market attention, in terms of new spending. They do it over the next year or two. What we have seen is you get an immediate pop in the markets after one month. Whatt look like they are talking about is going to be enough to move the needle. Bes point, just say we are doing it. We are monetizing it without calling of helicopter money. Jonathan it walks like a duck and sounds like a docket, but we are not calling it one . Michael how do you do it . Their Technical Resources on the Japanese Central bank for doing this. They can restructure their portfolio. This perpetual bond idea. Heres the problem with the perpetual bond. You know own all of the debt in one instrument. What happens when you want to tighten rates . If you want to tighten rates . You have this giant bond that no one can buy. Jonathan wednesday going to happen . When is that going to happen . Michael mckee, great to have you with us. Economics editor here at bloomberg. Alix coming up, the costly batter a battle over over. A bruising battle between these two startups. We reveal all the details, next. This is bloomberg. David this is bloomberg , i am david westin. Chinese rights sharing company chinas uberg subsidiary. We go to lulu chen, joining us from hong kong. Welcome. Its a big deal, is accommodated deal. Tell us how this is going to work. Lulu they will form a new entity that is valued at 35 billion, according to our sources. Both companies will become minority shareholders in each other, and the founders and ceos will become will sit on the boards as well. Essentially, this is a combination the culmination of a battle thats been lasting for more than a year. In terms of capital in the amount of subsidies, its become humongous. Thats why investors have pushed with a steel. Pushed for this deal. David they invested a lot of money to fight specifically against uber. What made them throw in the towel . Lulu its been quite a turn events. Werea year ago, they saying this was their most important battle overseas. Essentially what we saw is in the past year, uber has been burning more than 2 billion in china alone, and investors on both side had become more anxious. Hoping the companies can put an end to this battle, where they have been heavily subsidizing passengers to win the market shares. Jonathan the masses on both sides, Global Investors are going to be anxious looking at this as well. Re were doesnt have it ube doesnt have a revocation for capitulating. But it capitulated in china. What does this say . Lulu analysts and investors still think that it over uber has a good chance for competing in companies in countries that are similar to the u. S. They are competing with local players in these local markets. These companies are not giving up easy. Companyay, another issued a statement saying they are ready to roll up their sleeves and continue the battle with uber. Jonathan what does this mean for the regulators . Companies, ign wonder if regulators hasnt that the say about this . Andd uber is so strong didi is so strong. It makes this hard. When is it supposed to close . Our understanding is both companies have been in touch with regulators in trying to open the dialogue of communication. It depends on how you define the market. In china, if you look at the Public Transportation market, probably they do not qualify as a monopoly. If you narrow it down to the private hailing car apps industry, with of these companies combined would become a dominant player. David thank you, lulu chen reporting from bloomberg. Jonathan coming up, European Banks matching the biggest monthly gain in 17 months. The bank of englands first rate cut of seven years did throw cold water on a rally for new york. This is bloomberg. Hohes woiithongestc . Estc. Thlais hotas hca hyson at ey seg ca hke cwistomin biness rnte, p cthu e. Juais hotas hca hyson at ey stus azetomid ag y wiourofias r eie esr a adylr onheesev. Or upde its restn i, w c u doe t eth dveryay oding uc pwiwiro fi hthatelroui a different story when it comes to harley davidson. That stock was upgraded to 66 30 higherid it is than the consensus price which is rare to find a real bull on harley davidson. Those are the individual names we are watching but overall, a little weakness in the market. Want inits action you august, this month might deliver if history is any guidance. It has been beautiful for some of the bears out there. Futures are stable and equities of 1 . K 1 3 month ofilding a fresh the same speculation around italian banks. The cable rate is at 1. 31. The bank of england rates remain unchanged. Where is the rebound in the crude market . The biggest rebound in 12 months almostnth but we are at 44. Where up about three basis curve. On the gilt but yields are rising up three basis points. Monthig immense of this big events this month. A bank of england Rate Decision and payroll friday. Lets get your headlines. Hillary clinton appears to have gotten a postconvention bounce. A poll out today shows that the democratic president ial 4646 4642 lead over donald trump. Of her haveviews dropped six points. Investigators say a hot air high tension power lin