Mission technology. We get the analysis. Obamacare. Not enough votes to Debate Health care. There is another vote today. Will they now be able to repeal the Affordable Care act . Matt we are less than half an hour from the start of european trading. In equities, interesting to see how the carmakers do. Let me go through some of the headlines we have been getting out of daimlers ceo. He is talking in a Conference Call with the media and saying that the car industry faces a lot of negative news, there are two main strands, the diesel issue and the collusion allegations on the other. With regards to the collusion allegations, he said he has not bmws ceo Harold Kruger in the past seven days since the bmw ceo denied he colluded with the other two big german carmakers animations technology. Notwould wonder why he did pick up the phone to call kruger. He said he has not spoken to him. He also says he expects planned tax to continue. Any tax that these carmakers had agreed on in the meetings since the 1990s and not all meetings obviously between two or three companies in the same industry are collusion, they can meet on a lot of things legally, especially things that make it easier for the consumer to do business are legal. Collusionthe allegations. As far as diesel there is a lot of interesting stuff going on here as well. For diesel ton continue, a reason to fight for sel and the minister of says he also thinks that diesel can be viable and the question here is whether or not stuttgart will make diesel illegal. There is a lot of market moving and going on today as well. Thats take a look at you saw futures, there was a lot of movement. Take a look at the bunds, this is a threeday chart of the bund trade. We had a dramatic increase in bund yields as investors were selling off those bunds. They are still hanging at the levels that we saw them reach yesterday. 0. 55 on the german bunds. Manus that car story will be so prescient through the next number of days. Lets have a look at gmm because it encapsulates a couple of egg names. Story, thee aussie aussie dollar down by. 6 if percent. This is the rba governor saying it is better the currency was lower, we do not need to follow the pack, that seems see to be the sentiment coming from the aussies. Also keep an i on the south weakening. A slightly better bid to the dollar. We are waiting for the fomc, that meeting and their announcement will come later on this evening. The dollar is up a squidge. Is down by an eighth of 1 . It is five years to the day since mario draghi said that the euro is like a bumblebee. We do not know why but it is flying. Lets have a look at the commodity complex. Copper is on a ripper. Up 4 is where we are at the moment in shanghai. Standardhat, that is the standard deviation move is flashing green on the gmm. You are above the twoyear high on the london market, youre looking at hedge funds boosting their copper bit to a 20 year high. The daily prophet said china had has had has had its crash. Rising, rising on aussie and south korea. Copper is the standout flashing symbol on the gmm. Juliette saly has your first word news. Thank you. Japans former top currency official has said the central bank should be more flexible and consider following the u. S. And europe by normalizing monetary policy. He warns that bank of japan may leave itself without room for policy reform and the event of another financial crisis. The boj 70 governor said policymakers need to continue monetary stimulus to achieve their 2 inflation target as soon as possible. The European Commission will today discuss the legal and political tools it has to press poland into scaling back a package of controversial legislation. The meeting comes a week after the eu threatened to recommend a Nuclear Option procedure that could end up stripping the country of its Voting Rights in the block. We will be talking to polands deputy Prime Minister at 9 30 a. M. U. K. Time. First sitting Prime Minister of the countrys democratic era to give evidence in a criminal trial. He will take the stand this morning in a National Court probe into his parties financing. 37 people including the former Peoples Party treasurer are accused of running a bribery ring to help fund party operations. Banu. K. Will reportedly sales of diesel and petrol cars air 2040 two combat pollution. According to the telegraph newspaper, starting a plan to be published today, local authorities will be allowed to him close impose levies on vehicles as soon as 2020. A draft of the clean air plan was published in may after the government lost a court case to delay its publication until after last months election. The strongest is dollar slumped against most major peers, slower than expected gains damped expectations for an Interest Rate increase by the central bank. Reserve bank of a story at chief philip lowe reiterated that his global counterparts move to withdraw stimulus has no automatic implications for the Central Banks on policies. 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 bloomberg at top. Manus. Manus thank you. It is decision day for the Federal Reserve. No one expects the fomc to move on rates, investors will be looking out for clues on how it will shrink the Balance Sheet and the timing of the next rate hike. Lets get to mark. If theyaiting to see shift the dial at all on the Balance Sheet reduction. The probability of a rate hike seems to be getting a little bit further into the long graph if you talk to the guests we have had through the door. Numbers are not stacking up. Mark the inflation data is not there but inflation get a has not been there for a while. I do not think that is the fed is trying to normalize policy well financial conditions at them do so and assets are very strong and that means they have the ability to normalize policy. At some point they might become worried about deflation risk. Were not there yet and they will not shift they have no change of projections. The risks are skewed one way, it could surprise by announcing a clear date for Balance Sheet reduction which would be a hawkish surprise, not expected. They are unlikely to change anything devilishly. Dovishly. What do expect to hear from the fed in regards to the reduction of the Balance Sheet, how deep do you think we are going to get into those details . The base case excitation is that we will not get any specific or clear details. There is talk in the market might give an exact date, that could be october but the main consensus is in the september meeting they will have the press conference to explain their thinking. There is a small minority of people thinking they might announce the balance reduction will happen in september and they will explain how it works at the conference. It is a hawkish surprise but not expectation. Manus lets see what they deliver and gary cohen could be on the table, janet yellen could be on for an extended term if we go by what the president has been saying. Mliv blog macro strategist. The whole team will be there. One red headline coming in across the bloomberg terminal. This is on artemis, they are agreeing to sell them a to sell. Coming in, you have artemis agreeing to sell fmac. Fma see the u. S. Senate has rejected a majority the majority leaders proposal. That came at the start of several days of debate with no the obamacaret replacement plan is. The house has voted to strengthen sanctions against russia and rebuked President Donald TrumpWhose Campaign is being investigated for possible ties to moscow. Preventing him from ultimately lifting penalties. Halter here. In terms of mccains return to the senate floor, it was an emotional moment. How do think it went, where do we stand on repeal of obamacare today . Catherine with mccain coming back one of the big things we saw was the pageantry and the tradition to the senate. Mccain is someone who has stature among his colleagues, he has been there for 30 plus years and he came back and made an appeal to go back to the more traditional way in which the senate worked when it was less partisan, where there was mower more open debate. He talked about it being that worlds greatest deliver to body. Living he had not been up to that reputation is late and made a call for an open debate and a bipartisan debate about obamacare. He carries a fair amount of weight with his republican and democratic colleagues. I think when it comes to Something Like repealing obamacare, i do not know if that is going to get them very far. Matt is this a boost for republicans that they agreed on this vote or is it going to be a black mark for them since they are not likely to be able to agree on anything after . Remains to be seen. You hit the nail on the head. For the first time yesterday there has been this fits and starts when it comes to obamacare. They said they will try to do something and they pull back from it and the fact that they were able to open debate certainly is a step in the right direction for republicans. Donald trump hailed it as a victory. There is a long way from having the votes they need to support something substantive. I think we can already see republicans trying to build a narrative around the idea that they had an open debate if they are not able to pass something and it certainly is going to be a tough thing, they are talking about trying to get something passed i friday. And doing one of their allnight sessions, they refer to them as voteramas. The idea is to get every idea that has been out there and that has been discussed to let it get a vote but building that into an actual something that can pass is difficult. We willhing will definitely be watching. Thanks for your time, kathleen hunter. Cartel clouds. Daimler sees its earnings rise but allegations of collusion on technology overshadow the results as well as concerns dieselhe possible ban of engines. We will discuss next. This is bloomberg. P. M. , in hong 46 kong. Juliette saly has your business flash. To bete meg whitman said on the short list of becoming the next ceo of uber. A a subcommittee of the board is help oversee the source search. They hope to name its new leader by september. They are steering through a turbulent time for the business. Metro bank has said it will sell 277 Million Pounds of new stock to bolster capital levels as it steps of growth. It is selling as many as 8. 0 2 3465 penceres at each. It has a second effort quarter profit of 2 Million Pounds. Bmw says it will build an electric version of the many compact car. Chose overer said alternatives in germany. Production will start in 2019. That is your Bloomberg Business flash. Manus and matt. Matt dharma has reported a . 15. 15 jump the results happen touted by allegations of the cage long collusion with other carmakers on emissions technologies. Joining us now is our automotive analyst michael dean. What is your take away from these two issues that daimler and the other german automakers are facing . There is the collusion allegations on the one hand and easel pollution on the other diesel pollution on the other, which is the bigger problem . Michael there is a fine line between collusion and collaboration. There is an ongoing investigation. We need to hear more from the companies or authorities before we can decide where this is going. Before we can decide where they are going we have the ceo on a Conference Call my he is not prepared to make any comment on the situation. As you say, they have taken an pulling 3dieselgate, million cars and vans. When we look at daimler and that corporation, give me a sense of what cooperation has been, what are they cooperating on question mark michael they coopted in many areas. In terms of daimler and bmw, they have cooperated on airconditioning units or even seat frames. There are many areas they can call it on to reduce costs. From your got a chart Bloomberg Intelligence page s ining the chair of diesel green, 40 of all cars on the road right now in europe are diesel. The telegraph about the possibility of banning diesel engines by 2040, who cares, that is like a million years from now. 5at about the euro 3, 4, and diesels on the road, will they jet will they get banned . Was 3l with machetes it million cars. They were expecting a ban for euro five cars in particular. There is a technical fix it will reduce the oxygen levels that should circumvent this band. There is a risk that older cars, the euro three and euro for cars can be banned in the future. Manus i will see you and raise you on the chart, we are using bis data. This is the dividend, this is the risk, the risk is twofold, litigation and of course, owners litigation. Eu fines and litigation and that you would suggest risks the dividend here. Daimler risks the dividend. Michael they have a dividend yield of over 5 and given that they have underperformed, it the dividend yields are underpinning the sector. If there is a risk of this that could be cap because of future finds impacting cash flow, this is a risk to the sector. Matt michael dean, thank you. Joining us from Bloomberg Intelligence. We will be talking about this a lot through this program and throughout the next couple of months and years. We are minutes away from the open. We take a look at the movers in todays trading including itv as the broadcasters Revenue Misses estimates and it sees net ad revenue falling. The open eight minutes away. This is bloomberg. Manus welcome back to the market open. Sentiments to go till the start of the trading day. A heap of stocks in focus, i will kick it off with itv. Think corn eischen coronation street and love island. Revenue is a shade below what the market had anticipated. They have a new ceo, Carolyn Mccaul coming in as the ceo. Political uncertainty is something that is hitting the broadcaster. The question for the market and the question for everybody in bloomberg, is did you audition for love island . Matt the next season, i will be taking a hiatus for the next season of love island. Puma, it is the footwear brand. Profit is up threefold in the Second Quarter and the Company Keeps on boosting its profit forecast. The ceo we are talking to the ceo at 9 30 a. M. Was a brand of footwear founded by rudolph dassler. Audidas was started by one brother and puma was started by another. In any case, stick with us for these shoeserview, are becoming hot and fashionable again. They were in my youth in the 1970s and now they are back. We will be talking about the and cripple jump in profit at puma at 9 30 a. M. Marketup, it is the open. Formats from the start of the cash trade. Futures are mixed but it was a big day yesterday. We will see of investors want more this morning this is bloomberg. Manus we are counting down to the market opened. 60 seconds away from the beginning of your trading day. A host of companies are reporting. This is how the futures look at the moment. Copper is absolutely charging ahead. High. Year london remained that 7373, which is down. Paris is virtually unchanged. A snip lower. On said day, volatility is flat on its back in the United States. Unprecedented close all below 10 for nine days in a row. Matt. Guy i want to come through and give you some headlines we are getting across from unicredit. Manus, i know you saw the headlines. You see them scrolling across your bloomberg. Unicredit is saying it had a Security Breach in italy to unauthorized access. A hack attack in italy. We will continue to cover this story of a heart attack of the italian hack attack of the italian bank. Pip. london opening up a two data breaches occurring at unicredit. London markets are opening. Aex is up. 8 . The data breach, 400,000 clients. September occurred in to october. And june and july. 400,000 clients were assumed to have been affected by this Security Breach. That was the initial impact. The data breach occurred in september and october and also in june and july. Istwo days, june and july listed in 2017. Unicredit is setting a thirdparty provider and access in the attack. It is a mixed opening on this fed day. Copper is trading higher and in terms of the internal moves on the stoxx 600, let us drill a little bit deep or in terms of the actual movers. Let us get across to nejra. Im starting with the gilt market open. Globalyields require yesterday. The 10 year treasury yields lower in todays session. It looks like the gilt yield is going the same way as the treasury yield, down one or two basis points, shy of 1. 25 percent, down one basis point on the 10year gilts yields at the open. For the stoxx 600, we saw this close some. 4 higher in yesterdays session. We are up about. 1 on the benchmark overall. Energy stocks leading the gains. Wti crude above 48 a barrel for the First Time Since early june after that api stockpile data. We have more Inventory Data coming out of the u. S. Leader. What is different is tech stocks doing well, whereas they were underperforming in asia. The commodity producers are pretty much dead flat here in europe. They were outperforming in asia. Postinged about copper that twoyear high. That is what was driving the gains of materials in asia. Not so much in europe. Looking at the european stocks, the ftse versus the euro. We have been talking about these stocks and currency moving in opposite directions. That inverse relationship coming back. Goldman sachs saying growth in the eurozone might go some way to offsetting the impact of that higher euro and the higher euro is partly as a result of those growth prospects, so that is something to keep an eye on in terms of how the strong euro has an impact on eurozone stocks. Value shares. Looking at the u. S. And emerging markets, the preference of late has been for those growth stocks, but value shares outperforming their global counterparts when you look at eu