Today. Dropping for the third consecutive day. Uncertainty, across the globe, all these currencies are rising against the dollar. Bond deals of falling, a big day today in the u. K. On house prices. London asking prizes up. Over the last year according to the latest data. That 2014ll below peak which you can see there. London is the blue line and the u. K. Asking line is in white. That is when prices were up. This is the second time this year the annual rate is topped by 1 . It is a traditional summer lull. The Property Market nationwide has softened in the last year tax changes, brexit, Political Uncertainty has put a squeeze on consumers. Nationwide, the market has held up better. , asking prices, down. 9 in august from july. The annual gain accelerated slightly to 3. 1 . Money managers pushing their bullish bets on gold to the highest level since october. Wages have surged more than sixfold over five straight weeks of gains. Those five bars to the right of your chart. Climbing 12 this year, reaching 1306. On friday. Highest since november the ninth. Traders and analysts are optimistic. Expressing bullish sentiment. Put it down to u. S. Political uncertainty, north korea tensions, and the terror attack in barcelona last week. Jackson hole, big event later this week. Mario draghi, if he wants will have every reason in the world to try to talk down the euro. Ago, the eurodollar, up by 10 a year today. Look at the hedge funds right now. They look to be getting nervous. Leverage, data on shows net bets on the euro that is the yellow line. The white is the euro itself. Dropping by a have to just over 10,000 contracts in a shift to a net short. Casting doubt on the sustainability of this year path rally. 90 minutes into the trading day in the u. S. Happy monday to you, mark. On this monday we are looking at another day of declines. We have the dow, s p, and the nasdaq slightly to modestly lower. ,oth the dow and the s p 500 less, tech heavy. Big tech names including apple, we will look at that in a moment. This is notable. The small declines are notable because it is fitting a bearish pattern we have seen recently. Third down week in a row for the dow and s p 500. The week is young but the nasdaq now on pace for its fifth down week in a row. The first time that will happen since 2012. A little bit of a bearish streak for the major averages. Seasonally this is a weaker time. Span for stocks in the u. S. This is g 9415. This comes to us from frank. Does go weeks, not including last week we saw the biggest a drawdown of the year, right here. He is making the point that there could be bearish action which is the biggest drawdown again weekly since last october of more than 2 . Interesting. Whether or not this is an Inflection Point for the uptrend , a pullback ahead. A fiveday chart of apple. The big drag today. Down for days in a row, the worst since april. The street is pretty bullish. Perhaps an consolidation of the 8 post quarter pop. A bit of a drag, apple down 3 over the last four days. Oil, has been a skittish market recently. This is an intraday chart we will take a look at. Here of oil. It is down more than 1 . On the day, reversing last weeks spike higher. Mike malone says he thinks it is a reversal. This drop of oil down 1. 4 . Very interesting reaction to the news that Stephen Bannon was out of the white house. , he thinks that is a reversal. Great stuff. Stocks struggling for traction. Hovering around record qe. Income investors benefiting bigtime from the bull market with worldwide stock payments forecasts arrived to a record of 1. 2 trillion, a 4 increase since a year ago. Alex, head of Global Equity income, joining us. Quite a quarter. A record quarter. Is this evidence of a synchronized Global Growth we are witnessing . 100 . When you look at the numbers you see every sector in the u. S. Increasing. Nine out of 10 german companies, three quarters of japanese companies. Q2 into this year is a strong. Period. Mark the u. K. Bucking the trend. It stands out. Currency for starters. We base our index in dollars and that is looking at different growers. In the u. K. We have seen specifics. Deal, berkeley a year ago. Underlying 6 growth. Not a disaster. Mark europe dominates the index in the Second Quarter is that seasonal . A lot of big swiss or german names pay big so it is a key year for investors to get it right. Vonnie in the u. S. , the global index, the dividend indexes at a threeyear high which is impressive. And profits at this point is there a correction coming, particularly when you consider that dividends are being paid out at an increasing rate, that is not money being plowed back into the company . A good question there. The way we look at this is the different payout. Ofoportion up about profitability to shareholders. Globally it is about 50 . That is the longterm average for the last 50 years. At this point in the cycle, not too bad. Some sectors, like oil, particularly energy, concerns us. Oil prices, you mentioned earlier, sagging again. Costs to gettting profitability up. That is still into the future. I still hope there is potential for that event to carry on. Vonnie so it wouldnt concern you that much that we might hopefully at some point be entering into a. Increasing Capital Expenditure versus paying a dividends . We are seeing that pick up. On the back of that coordinated economic growth. Where you will see the slack is in share buybacks and special dividends. Those of the two elements when you talk to companies, wheres the cast coming from . They say yes, we will borrow some but we will ease back on specials. Vonnie what are funds that your lead manager i notice you have a percentage located to equities, what are you liking equity wise and where in the world . There is nooks sovereign debt in there, it is all equity. We are over 90 nonus. Valuation, and particularly, utilities. Financials, the bank sector. The study shows that the bank sector is the strongest growth in dividends. Normalizing profitability and income as well. That is a key area. Mark telecom in the Second Quarter . You have to be very selective. Chinaunicom. Of thek in europe, some bigger players, deutsche, telecom, we like both those names. Mark basic resources. It has been a lean couple of years. Were witnessing a pickup. What they are saying about dividends but the implementation and a stock price as well. Particularly metals. Mining metals, the fixed payout ratios. We dont know where the price is going but we are also fixed to shareholders a percentage of the profitability coming back. You have a bit of certainty for investors. We see much higher metal prices coming through. Sharp increases. That could ebb and flow over the next three years. Mark what about asia . There was a good year last year so normalizing a bit. Malaysia was quite good, smaller Asian Countries were good. China, a little bit of a slowdown but coming into financials, utilities. It wasnt too bad. Mark youre looking good for the rest of the year because you raised your 2017 forecasts as well . Why . It surprised us. We thought this year would be better than last year. U. S. Companies held back payments depending on election results. That is coming through. Tohave increased forecasts nearly 4 from 3 . We think it could hit 6 . Mark what impact does the dollar have . Does it haveown. An impact on the second part of the year . It might. The dollar is beginning to flatline. The big rise against sterlingeuro has at the way. It should be fairly neutral. Mark can we say categorically, alex, the two prior years have been subdued in growth. Is that behind us . I think it is. The u. S. , when you talk to American Companies last year, the first half, well before the election, a lot of uncertainty. About political situation, trump, tax policies. If we can clear some of those in the second half. Jump get some policies through, you will see more certainty on income coming through. If trump can get some policies through. It is beginning to go back to a normal level. Mark alex, thanks for joining us. Indeed. Why not, mark . It is your first day back. Lets check in on First Quarter views. News. The president and his advisers have been working on it revised u. S. Policy in afghanistan where americans have been fighting for 16 years. Is he prepared to commit more u. S. Troops . On can watch that the speech bloomberg tv, 9 00 p. M. , new york time. The u. S. Navy has ordered an investigation of the Pacific Fleet after the second fatal collision in two months. The uss john mccain collided with a merchant ship. It is now docked in singapore with significant damage to the hall. A warning from south koreas president as his country begins the latest round of wargames with the u. S. He says the u. S. Should not use the drills as an excuse for any further provocation. During last years exercise, north korea launched a missile. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Mark courtney, thank you. Coming up, Goldman Sachs is not giving up on commodities. Salesforts to increase people to revive of the trade in metals, crude, and more. Details next. This is bloomberg. News, a person suspected to be carrying an explosive belt has been shot and alan police. T that is 45 kilometers from central barcelona. The suspect from that van attack is ill at large. The suspection is still at large. Plenty to talk about in the commodities sector. You have the opec technical meeting today. In oil business of 5 billion. To revivechs looking its commodities business. They are seeking traders in an effort to rebuild its unit. All that according to people familiar with the bank strategy. Javier. Us now, hobb will this prove difficult for goldman . They are in every asset class. Sector,s going to a new oil companies, saying, we can help you with other strategies. Heres the problem. They are not a big lender to the industry. Fighting withl be jpmorgan. Citigroup. These banks have big lenders to these companies. They are also in the commodity business. For goldman it is new territory. Mark is it a solution, in the last few years they failed to replace senior talent and now they will try to get fresh talent . Is that the answer . That probably will help. Goldman there more there are more junior people coming in. They realize they need a few big names to help them, to move the scales. If you are going after new clients, you will need a different kind of people, different salespeople that are more attuned to deal with these new clients. That is one of the things they are trying to do. This is a unit of Goldman Sachs that employed 230 people. It employs 180 today. There has been a lot of costcutting. Thise lets move on to massive shipping container company. Grow, nots total to organically but by competition. We see growth in the next months . They are beginning to realize that costcutting has been deep. We need to see growth in those companies. One of the things investors tell me they fail to see when they are talking to the big oil total,es like exxon, or is where growth was coming. Bg was bought for 50 billion in 2015. We are starting to see responses. Exxon mobil doing a plus i billion dollars deal. A 5 billion deal. We are seeing similar deals. To me, who are the next candidates . Companies. Wo Big Oil Chevron and bp. Total is putting pressure on chairman, here is our Growth Strategy and this is where we see them playing a role. Mark great stuff. Thank you for joining us. Vonnie always a pleasure. In just days, the worlds central bankers will gather in jackson hole. What exactly does that mean . We explore, next. This is bloomberg. Mark live from london, i am mark barton. Vonnie im vonnie quinn. Holeapital annual jackson meeting starts later this week. The scene this year is fostering dynamic Global Economy. We talked about janet yellen and mario draghi and whether they of a Global Economy and if their definition is the same. There is a fair amount of agreement across Central Banks that a dynamic Global Economy is one that is on the one hand, registering strong and sustained economic growth. Flown by a stable, capital and global trade. On the other hand, one where inflation is a subdued but near target. To me right now that in both of these cases in europe and the United States we are falling short on the inflation objective or should. What you going to be listening for this week . There is a quality to the areourse at jackson, we being teased that the speech that janet yellen will give is on financial stability. A broad brush. What we be listening for in terms of her and others . One broadpoint about jackson hole is, what really goes on their of substances outside the official meeting room. The interviews that people are giving and the tone, how worried are they about this inflation undershoot . It is surprising giving where Global Economy is. We are seeing inflation as soft as it is. How worried are they . I think that would be the major question. Secondly, some of these issues that janet yellen will be focused on, that in this world have rates are low and been low for a while, it will likely remain so. They worried about pending financial imbalances as a result . Nathan there. The monday session, stocks are lower, they are down on both sides of the atlantic. Report. T the currency , later in the week, culminating with u. K. Gdp later in the week. Sterling is up against the dollar. We will talk more about that later. The close is next. This is bloomberg. Mark live from london and new york, this is the european close. Stocks on the monday session. Lets take you through the action. Industry groups rising, food and beverage, down for a third day. Even adjusting for the recent rally in stocks in recent weeks, groups at the sector trading at 837 Percent Discount relative to the market based on one year. The historical discount is 25 . What a wonderful step to kick off the week. Total agreeing to buy the oil and gas units of bp. For billions of dollars. It is another sign of the pace of deals in the Energy Industry accelerating. Maersk well receive totals as well. The full price above what many analysts were expecting. Energy deals are picking up right now, more broadly in recent months. As the industry puts the worst of the Oil Price Slump behind it. Shares cut by almost 3 . Sticking with oil companies, opecs attempts to reassure producers such as iraq and has asked on kazakhstan. This is the stoxx 600 oil and gas index. Oil stocks are at their lowest level since november. Ahead of todays monthly meeting of the opec technical meeting indiana. Which will in vienna. Which will encourage companies to pump Less Crude Oil struggling to hold 50 a barrel. Stepped up by u. S. Producers, negating cartel efforts with the global surplus. This is a great chart. The german tenyear with the white line and the eurodollar exchange rate. Falling below 50 basis points rally this year, threatening exports. , sustainednks Exchange Rates extending more support to your area. Bond money markets are taking a dovish turn in recent weeks indicating no increase in benchmark Interest Rates through 2018 after pricing in two 10 asis point hikes as recently july. German 10 year yield versus eurodollar exchange rate. Onnnie . Theie here you see explosion last week. It has calmed down but we are still around 13. 5. I weaker dollar benefiting the yen. Nothing to get too excited about it gold inching more. Dmn where we can see more movers. You see global movers, some of the Eastern European is benefiting today. Trading at 6. 67. Pretty fascinating. There you have it, mark. Mark great stuff. Steve emerging over the weekend Steve Mnuchin emerging over the weekend as a defender of donald trump. Responding to calls from his former yell classmates yale classmates to resign. He defended the president saying that there is no equivalent to groups that imagery peacefully. Primary and the general and the, and beyond American People from these most important policies. Jobs, economic growth, and national security. Planning to address an event in louisville, kentucky today where last weeks advance threatening to overshadow Steve Mnuchins key role in relaunching the economic agenda. That is what we saw. Steve mnuchin is a staunch defender. Stability to the Economic Policy agenda is not something to be taken lightly. September is a very busy month. We have to have congress raise the debt ceiling limit to avoid a historic u. S. Default on government debt. The Trump Administration is looking for a legislative when and they are hoping tax reform is that win. They have a lot of work to do to stick to their timeline. Both houses of congress this year. Steve mnuchin saying, yes, i am staying. Ff of is no whi resignation. Gary cohn is staying. There were rumors around candidates. Fascinating. This event is taking place with mitch mcconnell, who trump blasted not more than a week ago on twitter. Is this some kind of coming together of everyone but trump . That is what it appears to be but Steve Mnuchin is flying out to kentucky. Senator Mitch Mcconnells home state. It is a sign of friendship. To show they can Work Together to get that ceiling increase done in congress and tax reform and other legislative agenda items. It pushes trump to the side. Steve mnuchin is taking the more forefront role to say, look, we need to stand together and show the people that we can get something done. Isis a nice sign that there an alliance somewhere between the administration and republicans in congress. Vonnie thank you. That speech coming up in less than an hour. Administration, carl icahn announced he would be leaving his white house role as a special regulatory advisor to donald tru