A pound is interesting. Lets talk about that throughout the show. We have equity markets. There is a decent rally from friday. And then oil is the story as well. We have Ryan Chilcote joining us shortly to talk about whats been going on. 2. 65 . Up we can blame the russians for that drop. And the dollaryen, down. 6 . Lets check in on the first word news. Theresa may is dismissing claims made by boris johnson. He called for a bloomberg he called for a points system. Theu. K. Needs to speed up Bloomberg Program he needs to speed up the brexit program. Speed up the process especially in the external dimension. And therefore we cannot waste two years on the u. K. With how to maintain them inside without one of them wanting to be inside. So we cannot afford that. He also said that the u. K. Should expect a limit on exports to the eu. It was a political humiliation for angela merkel. For the first time, her union lost the antiimmigration in the state election. Her popularity has plummeted since deciding to allow refugees into germany. She is Still Deciding if she will run for a fourth term. Obama and Vladimir Putin have agreed to continue talks about peace in syria. Says the Department Russians walked back on parts of a syrian agreement. Global news, 24 hours a day. Powered by our more than 2600 journalists and analysts, in more than 120 countries. Mark russia and saudi arabia have agreed to Work Together to promote more market stability. Lets find out exactly what has been said with Ryan Chilcote. At one point, the market was up massively and then we started to see this conference kicking off. Ryan i want to show you the move. This is fascinating. We started to see oil decline. This is the biggest move since the decline of april and we Mike Huckabee have above 50 a barrel. All of this on an announcement sayinge chief of staff that saudi arabia was preparing a significant announcement. We then learned that russians would be joining the briefing at the g20 meeting. Price of oil. E it gave up half of its gains. Russia and saudi arabia agreed to coordinate action on the oil market. They discussed a number of outputents including an freeze but they did not agree on an output freeze. Day. Interesting they are getting closer. They are the worlds two largest Oil Producers. Youuntil you have a deal, dont have a deal. Does the market there is a conversation happening . He market knows that they are happening and talking. Also knows that these guys are producing enough oil as a humanly can. Ryan that is right. Until the other countries agreed is shute output yourself out of markets and lose market share. I have a nice chart that shows that. As you can see, as the oil price has fallen, Russian Oil Production has risen. It is just off a record. It is very close to 11 billion barrels a day. And this is russia, the church is the same for all the big Oil Producers. Opec reached a record last month. Saudi arabia isnt far off a record. They all know it is a battle for market share until you have a deal. So maybe the move we saw downwards in the oil prices is easy to understand. Because we thought we would get a deal in april when the countrys got together and then the russians were expecting it but the saudis said they wouldnt do it unless the iranians did it. And they did not join. They upped their production. The saudis upped their production and here we are. Ryan chilcote, thank you very much. Nejra a gauge of u. K. Services jumped the most on record in august. Halpenny joins us now. Good afternoon, thank you for joining us. We got the better than expected data last week. Manufacturing among it. Said, wait for the services data, it might be too soon to tell. Do you think the u. K. Will avoid a recession . Derek it is certainly looking like that. The figures today from manufacturing and services are back up to where they were in march. So it isnt just the they reversed the drop postbrexit, they have done more than that. Degree of rebound and given that the bank of england projection 22nd half of year is growth all around thatate of late suggest what the bank of england is expecting is achievable. Of Englandthe Bank move too soon or too much . They will argue that they were confident in what they have done. But of course, we will never know. I think for the markets going inward, it does place doubt the explicit guidance from the bank of england. With cuts probable before the end of the year. And for sure, that is up for a debate. So perhaps the performance of the pound could be important. Risk wethere is a good could save bigger move on the upside over the short term and that could start to play in to the bank arguing that cuts could be needed. They dont want the pound to rebound to significantly. Right now, today i would be long. 3637 is feasible versus the dollar. Positioning data comes out on on the specng, so side there is scope for a much bigger liquidation with the type of data we have had. There are two sides, the fed is one of them. Carney talks, what you need to hear him say . Expect marki would carney to highlight is that this is sentiment. There is no evidence of hard data. Data, it isthe hard positive. Given the fact that they acted aggressively, they need to throw caution in. I think the year and for the sterling is that 1. 27 or thereabouts, are you in line with that . To 1. 24. Have a move but to be honest, i struggle to come up with a story as to what will bring us lower. Their argument was that the u. K. Was going into a recession but we are not seeing that. So we now have a flush forecast for the rest of the year. And we are seeing strength versus the euro. Enough . At the goldilocks scenario for the. K. , that still carries on the pound is down sharply. The data should be bouncing back in this environment because everything at the moment is halted. Im trying to balance this out with what is the negative creeping in how volatile willie serling be . , over the last six weeks, it has not been focus. Comments from to reason made in china over the weekend. I would not be surprised to see increased intentions within the a softent with regard to brexit versus a hard brexit. And certainly disregarding the points system and method for controlling migration which was the Brexit Campaign from boris johnson. Inevitably there will be friction that is created there. So that could come into play. ,s we get close to that point article 50 could be triggered at the First Quarter of next year. The closer we get to that timeframe, the better the chances. Nejra we are down two basis points on the 10 year today. Derek guilds had a big move initially. Theif we are correct that markets could doubt the chance of a rate cut, we are beginning to believe that perhaps the low is already down. Will stay withny us. How much longer can japan continue on with the Stimulus Program . This is bloomberg. Guy live from london, i am guy johnson. Nejra you are watching bloomberg markets. Time for the Bloomberg Business flash. Barclays is close to naming a jpmorgan executive to run the investment bank. Charge ofe in barclays corporate and international division. That would fill the final vacancy on the management team. Marks spencer will cut 500 25 jobs at its headquarters in london according to a person familiar with the matter. They reported a 9 drop in Clothing Sales and two months from now, the ceo is scheduled to outline his plan for the company struggling International Unit. Be cheap for samsung to replace all the potentially defective smartphones. The Korean Company may spend up to 1 billion to replace all of the phones that have been shipped since they went on sale last month areas three dozen of the samsung phones were found to have batteries that caught fire and exploded. That is your business flash. Guy the bank of japan governor, ruling out new ways to try and rule out inflation. He reiterated that there is room for further easing if needed. Even within the current framework, there is ample room for further monetary easing in quality, quantity and the Interest Rate. And other new ideas should not be off the table. But we should bear in mind is not the limit but a comparison between the benefits and costs. The case with any public policy, there is no free lunch. Halpenny is still with us. What did he say . Derek you have the most important quit. Lunch andn no free he outlined the factors of negative rates and the negative implications of that, but what he seemed to be saying is that what we still need to do is to. Ook at the broader benefit and if the bank of japan view is that it ultimately is beneficial towards achieving the inflation goal then they will cut again. So he was highlighting the negative that saying, while there are negatives, ultimately, the benefits could outweigh those. The they already own half market in japan. Highlights it. You can see the incredible move lower in yields. Ins is the biggest move back yields. Since 2013. Will we see them slowing down or acting out . Derek at jackson hole, when he gave a speech there, the flattening of the curve was one of the negative factors of Monetary Policy. To the has led speculation that they could pull back on the payment purchases. And they will have to do that. So that does make sense. Of course, everything is about communication. And i think there is a high risk of an error in terms of communicating to the market and the tapering that it has been anything but tightening. I dont think we will get a explicit tapering. I dont think that is on the cards at this time. What they may shift towards is telling the markets they need more flexibility, and that the expansion of the Balance Sheet will be pursued going forward. Shift would of jgb be off but there are limits their. I dont think youll get an explicit tapering. In fact, we dont think we will get any current announcement. The shortterm, we are expecting rate cuts and the interest paid on the reserves to go in more negative. Nejra im glad you said you are not expecting anything, a cousin we saw it has a high on 30 years and the 10 year and a lot of people said that had to do with the uncertainty. But you seem certain that we will not get any announcement. Is there any way that governor kuroda could surprise the market . He has a history of doing that. Derek of course. He reiterated the policy easing cautious meant staying from when they were in january and they moved into negative rates. So there is a chance for a comprehensive assessment of Monetary Policy. But they will have to come up with a big announcement. Again, i would go back to communication being hugely important. If they can communicate to the markets that they need more flexibility in terms of how they finance, if it is coupled with the idea they can go more negative, then as a package, the market might take it. But broadly speaking, the big picture, the boj is running out of options. They are reaching the limits of Monetary Policy. Be buyinguld they other assets like foreign bonds . Derek that would be great but from a g20 perspective, there has been a explicit guidance on sticking to domestic instrument and pursuing domestic Monetary Policy. Nejra thank you to derek halpenny. Go to china for the latest out of the g20 summit. This is bloomberg. Nejra the g20 summit is wrapping up this morning with president obama expected to speak. Shery ahn is covering the summit and she joins us now. What can we expect to hear from president obama . The summit has been delayed for quite a while. We were expecting president obama to speak an hour ago. We are not quite sure what we will hear but we know that he had a very busy schedule here at the summit. The president over the weekend, where they joined the climate agreement and they discussed everything from north rising protectionism around the world and not to mention, Cyber Security. President obama also spoke to Vladimir Putin for over an hour. They discussed ukraine and syria and they had a oneonone for more than 20 minutes. So a lot could come out of this meeting. We just heard Closing Remarks from the president we were expecting that an hour ago and he just spoke, warning about weakened global growth. He said that all fiscal and policies thatble are old dont work. He warns about protectionism as well. Shery ahn, leaders and top policymakers have been warning about the Global Economic outlook. Which would you say has been the general mood surrounding the summit . The mood has not been bright, to be honest. Everyone has been warning about week local growth. Saying that we could see the slowest growth. They are also warning about projection of them rising around the world. Imf cymakers from the they are all warning about the negative impact of antitrade measures. I spoke to who warned about this. Take a listen. Fore is no longer growth. Trade is lagging like investments. So, no surprise why the World Economy is only growing at 3 . It is below the rate of growth precrisis. Mery wtos chief also told that the trade outlook is not right. Ahn. thank you to shery most economists are predicting an extension of the program. This is bloomberg. Nejra live from bloombergs European Headquarters in london, i am nejra cehic. Guy and i am guy johnson. It is labor day in the United States and the bulk of the citizenry therefore enjoying a day off. Not the president of the United States. He is in china and we are awaiting him to take to the podium and we are expecting a full press conference with q and a and it has been somewhat delayed. We were expecting this an hour or so ago. To anyone who has attended one of these events things can go a little ride arrive and timing is never what you expected to be. Nejra we do not know exactly what president obama will talk about. We have been focusing on the comments to theresa may, the uk Prime Minister. Guy lets listen in. President obama i want to begin by thanking china for hosting the g20 summit. This visit offered the eighth opportunity for president shi and me to meet. We agreed to advance our corroboration across a range of issues including climate change, global health, development, counter narcotics, and nuclear security. We also addressed our differences on issues like religious freedom, maritime security, and a level economic Playing Field but we did so in a clear, candid, direct, and i think, constructive way and that has helped us to manage problems and it is consistently helping us to improve relations between the United States and china. This is also my eighth and final g20 meeting. Let me put into context what we have done over the course of all of these g20 meetings. I think back to april 2009 when hundreds of thousands of americans were losing their jobs and their homes in their savings each month and unemployment was and around the0 world for the first time in a generation the Global Economy was contracting and trade was shrinking and the International Financial system was nearly frozen. By several key measures the Global Economy was on a worse trajectory than it was at the onset of the great depression. The size of the scope of the crisis was not what made that london g20 historic. What made it historic was the speed and magnitude of our collective response. One nation cannot solve the problem alone so together developed and developing nations alike took a copperheads of an unprecedented set of actions to vent another prevention depression and set the stage for recovery. We stimulated demand across our economies and america led the way. In my first 10 or so weeks of president s we had passed the recovery act and set in motion plans to rescue our Auto Industry and stabilize our banks and jumpstart loans to Small Businesses and launch programs to help homeowners with finance. Our g20 partners followed with similar actions. To stabilize the Global Economy we rejected protectionism. We worked to keep markets open and trade finance flowing and boost lending capacity to respond to countries that were hurting the most. And to prevent future crises, we took steps to reform our regulatory system including the historic wall street reforms more than six years ago. These were the actions we took in 2009. They were actions that prevented another depression and created conditions for the Global Economy to grow by more than 25 over the past seven years. What we also did was to elevate the g20 to become the worlds premier form for Economic Cooperation and that allowed us as Global Recovery progressed to take further action to strengthen the Global Economy. That is what we came here to do. We have had long debates about the best way to support sustained growth, but americas voice has always been one of bold action and that stance has been backed up by our Economic Performance. Havecas businesses created more than 15 million new jobs and we cut unemployment and half and wages have risen by almost 3 which is much faster than the pace of inflation. One of the things that we learned through the g20 process is that more than ever our economies are interconnected and we have more work to do together to keep the Global Economy going growing. We have to grow wages faster and shrink inequality faster and get every give everybody