We are going to ask about if the potential blockbuster drugs in the pipeline can keep this momentum going. Leonard putin reacts to u. S. Thirdsns by asking two in his country. Two thirds american staff in his country. Were just thrilled to have you back here in the studio. From theur away european open, lets take a look at how futures are trading. Noe on the ftse, we see change on the 50 futures and dax and down dax down. Not a lot of direction from futures. Have a threeday chart appear, you can see that we have a big jump in yields friday and we have settled down a little bit today. Ds fairly unchanged but we will see what happens when we get to trading this morning. Lets see what is going on with the other asset classes. Guy lets walk you around the world and show you what is going on. Day, european bad equities generally were on offer. Going through in the backend might you will see what happens with france as well. The last day of the month, you are seeing maybe a little bit of rebalancing around that as the dollar is catching a little bit this morning. Something to Pay Attention to. The chinese a little disappointing but still pointing to an improving situation this morning. Pay attention as well. Lets quickly show you the other half of what we are looking at as well. This is the more interesting half. Iron or really responding to the chinese data. Of very strongly by 6. 49 . Copper has had a really solid month. The best month since january. That again pointing to the general updraft around the world. Certainly some thing Pay Attention to as well. In the meantime lets get it first word update. Here is julia starley. Juliette starley. Juliette shinzo abe and donald trump agreed more action is needed on north korea after speaking by phone. He told reporters that the International Community must take the issue more seriously and increase presser on the isolated regime. The comments, two days after pyongyang tested the second and consulates a basel into constant Intercontinental Ballistic Missile. Nearly two thirds in the face of fresh sanctions approved by russia. Kremlinage in the solution with donald trump. Pledging to improve ties. Europes largest bank also will spend up to 2 billion buying back stock. Revenue rose. Revenues hitting in the right direction across all of our major businesses and regions. Good Credit Control and good cost control. Oil in new york briefly rose above 50 for the First Time Since may after opec says the group will meet next week. It is set to take place after saudi arabias last week. Pressure on countries that are not complying. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Guy . The 25 minutes to go on to market opens. It will interesting to see how the saudi stocks opens. It has raised its outlook, saying it is the broadly Stable Properties beat in the second quarter. Vaccines, theyer previously have been expected to roll over. Joining us now from paris for an exclusive interview, be cfo. Morning to you. The cfo. Good morning to you. My question is how do you keep the momentum going . How will the newer drugs help you do that . A good question. First and foremost, as you said, we had continued performance of specialty drugs and now a vaccine business is doing pretty well. Haveing markets in general been close to 7 which is one of the best performances in the industry. There are nuances we are expecting. The first biologic 26 millionwith euros. Think thisward, we will be a significant driver in our sector. Guy lets stay with the old and we will talk about the new in a moment you were you surprised the older drugs have done as well as they had . Spoke, there was an expectation that we would start to see a roll down in some of these. Why has the not happened in the way that was anticipated . One thing we are anticipate, it is clear that there is one that is really declining, more altogether the good is there slightly better and we compensate for that. This is where we are today. Life in the industries have new drugs compensating for your loss of exclusivity. Environmentin this we speak less about diabetes theg forward and more about new ones. Guy one of the blockbusters we have been talking about, the eczema drug. 37 37,000 a year. Do you get pushed back because that is the equivalent of an audi a4 every year for a drug that chores issues can cures itchy skin. This is going to be used for patients who have severe, which other drugs do not work. On second, not only would did hadget any pushback, we. Ood comments from keep players we got early access of the commercialized. We are holding out her plan for further success. The price may look high but if you compared to other biology ng used in other germany diseases. Ermic it has been a fair price. Recognized by the external bodies. Altogether we have priced at well and i think it is well received. Than 3000 a month which is higher than the average salary in the United States of america. Do you get concerned about the possibility of Congress Taking so many millions of people off of Health Insurance . Very few people could actually afford at that price for this eczema drug. Think ally need to more than two minutes to discuss the u. S. Health care system. Is paid by the currency insurances of the patients. You have patients who benefit on the Public Programs which help them to have a lower price. So theyour own program can afford to pay for it. Altogether, not too much in the details. I think the pricing is in line with what you would expect. Some had what expected. Once again, we will have some special programs. Inogether i think it is well the environment where we cap reising. Guy can we talk about m a . I noticed in the statement this morning that you guys are not in a hurry to do m a. Million earlier this year, which is a vaccine maker. What would it take to spark more . More broadly in the specter sector. Are you surprised there is not more taking place . That is a good question. We are trying always to be disciplined with strategy. Strategy leads to a limited number of potential acquisitions. In this industry like many others do we need to pay high attention . Upon the m a in line with that. We are continuing to look at what would make sense in our strategy to m a is not core to these strategy. Our small acquisition vaccine is part of that. Great to speak to you as i say congratulations on the numbers. The indication of the moment is that the stock is 2 higher. Favorable on the back of the numbers this morning. The cfo of sanofi. We are going to talk about what is happening with heineken. Profits popping up as you say. Strongwer reports earnings. Beating estimates. We are going to speak with the cfo next. This is bloomberg. Market minutes until the opens. Here is juliette starley. Santander has reportedly signed a pulmonary contact contract with blackstone. The news website comes after bloomberg reported on friday that blackstone was the frontrunner to buy a stake in 30 billion euros of the real estate loan and properties. Purchased the lender for one euro in june. Profit this year may not fall after all as demand for vaccines and to medicines for multiple sclerosis. Beluding some items will broadly stable this year. Softbank is planning to make a direct offer for Charter Communications after the Cadle Company rebuffed its proposal for a combination with sprint an. The Japanese Companies plans to make the offer this week. Quarterly results tomorrow. That is your business flash. Heinekens first half adjusted operating profit beat estimates. Below 2 billion euros could make investors happy at the open this morning. With us from amsterdam is the companys cfo. Thank you so much for joining us. What has ledask to these profits being the expectations . You are making bringing in a lot of new brands. What are the big sellers that are driving this . Good morning. Definitely very happy to report the strong first half to all four regions contributed to volume, organic revenue and operating profit increased. Volume, eightn surprise mix. A good performance in that respect. Of rst half in terms the First Quarter in terms of volume had been a little lower. Now if you look around the world basically europe is performing well. Growth coming from a number of countries, i will single out italy, france, spain, many others with quite a balance performance. A number of for emerging markets performing very well. Some newcomers that have accelerated recently like cambodia. In africa you see it performing very well. Brand last year and is contributing to volume growth this year. Noticed the tiger brand has been driving growth in vietnam. Lepidusntly purchased gunitas, how important are these newcomers and these craft beers to the growth of heineken as opposed to the main brand . Thanks for mentioning tiger. It is a beautiful brand. An asian brands. An International Brand for us. Growng to throw stronger, joining driving the affordable premium. Lagunitas,look at we entered in 20,000 2015 and have been learning about ipas. Why we need is has been a Successful Partnership you we decided to accelerated by moving to 100 . Really go after International Growth for let me just lagunitas, it is quite vibrant for idea. There is one brand that does maintain strong growth. Theill only consolidated in second half to we only have two months of consolidation in the first half. I would say that is not significant but it is a very good move and we are happy about this. Say quantity,uld it is about quality. Learning more and more about this market. That goes with wanting more choice, more flavors, and ringing back the interest in general. How close did you come to 48 . Ing we are very happy about this first half performance. Operationally, what in see is differently than 2015. We ares 2016. We expect a bit more of that in the second half. Guide, we guide foreignexchange impact. Translational, we are at a big volatility moment in terms of emerging currencies. At the beginning of the year, our guidance included an expectation that the had went from currency would not be as negative as in 2016. It was probably better than expected. Fore was no devaluation instance. That could still happen. You still see volatility on a currency. We are confident to confirm it. More broadly right now, it does seem that equity activism is becoming more of the feature. You have m a activities surrounding unilever. Do you expect this to become part of your landscape as well . Do you embrace it . You are delivering extra growth. Do you think that is enough to maintain where you are in terms of the level of interest from the activists . The current that environment is telling you more than ever is never be complacent about your performance. Always look at what you can do debtor better. Longterm sustainability is about continuing to be centered on all customers. This is a bit of the reason why we gave the guidance back in 2014, which is to say this is what we call continuous improvements. To be going to continue skewed toward the top line because we do consider that you have to grow your product. You have to bring what the consumer likes and bring beer they will continue to enjoy. At the same time you are to continuously work on your cost. You also have in terms of communication, to be very transparent about what they get when they come into heineken. They get the company skewed that youstainability are in perpetual improvement. We are planning to continue that. Matt you mentioned the popularity of ipas. It is clear and the market is full. In europe, recently italy and i havenow must noticed the demand is much bigger than the supply. Is there a possibility you can bring more ipas to europe . If youre making more acquisitions, are ipas high on the list . We have a number of ip brands. Ip a ipa brands. The netherlands have a has an idea version. Ipa version. Lagunitas can come to more countries. Matt thank you so much for that. Hopefully you can do your best to bring more to berlin. The cfo of heineken, we appreciate your time and congratulations on beating the street expectations. Guy heineken has crawled higher this morning. Another one, we just spoke to the cfo as well. At the moment it looks like both heineken and sanofi will be higher. It looks like we are going to see a solid performance from them. We are also going to be monitoring the Broader Market this morning. To be honest, european equities are going nowhere in a hurry. That is going to produce a significant performance on the wider market. Last day of the month. This is bloomberg. Is this a phone . Or a little internet machine . [ phone ringing ] hi mom. It makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. Guy welcome back. We have around a minute to go for european equities cash open this morning. Lets talk about where we think that opening is going to go. More interesting and individual stock level, matt will talk about some of the names of the moment. We saw a significant selloff friday. Many of europes markets were down by around 1 , so we not rebounding off that. Final day of the month, matt miller. Whatl the spring will all this bring . Matt when we were talking to the cfo of sanofi, up 6 for both of them, so fairly impressive. But if you look at the const string, you can do this with any equity and con p, you can see that with sanofi here on our it allutperformed by the cac tradable index, and the euronext health care index. The biggerforming, benchmark, and maybe that means nobody has more room to run. It is certainly indicated higher this morning. Guy we will watch heineken this morning as well. Keep an eye on the metal stocks as well. We saw some fairly impressive gains in terms of copper overnight and iron or. The ftse 100 is opening up around. 1 . As stock level, you may see some fireworks this morning. And index level, you may not. At the index level you may not. This morning, trading just a little softer this morning, and stoxx 600 going nowhere in a hurry. Not exactly a writroaring start, there is an individual names to focus on. Manus cranny, what have you got . As iron ore is moving, you saw the iron moving. The indexes the highest since 2016, and it is that believe in the growth story, i had it on the global cfo at ubs this morning from zurich. China is one of those trades that they want to do. European facet, the complex opening this morning up to performance. Youre waiting for the first flash on hsbc. Industrials off by. 2 , but financials are going to lead the charge. Asp best hsbc, they want to see higher rates. You have us believe in growth, leaving europe, and the issue this morning, we were talking about the velocity of the euro, the rise of the euro. He said to me, it is not so much of the endpoint of where the euro gets too, it is the speed with which it travels there because the ecb to intervene. They see more tolerant of a higher euro on the way. The stoxx 600 is up. 8 . Week for the bank of england, not least because some of the members are about to go on strike, but also because you are going to get some new growth levels on the bank of england. Where is that rate hike . Heidi is disappeared with the rate hikes stake. The possibility of a rate hike in the u. S. It seems to have completely evaporated, but you are going to see the euro get into a new plan. 95, but you are going to see this euro rise and sterling fall. Hsbc at the bottom of your screen up 3. 13 , 2 million by factory Million Dollar buyback. The right decision he believes they have made in choosing paris at the relocation spot, possibly to go there. Plumbing, as john cryer said to mat last week, the plumbing is going to be hard to move. Markets, wee gilt are up and running. One point 20. Lets see what the bank of england actually deliver this week. Guy looking around at some of the stocks, like manus said, hsbc absolutely flying this morning. The movmov screen screen set up this morning. By 1. 31 , some of the other Growth Stocks are performing reasonably well. Mining stocks are also doing well, very solid overnight performance in terms of the metal. That seems to be the reaction to what we saw in terms of the chinese data. We may have missed a little bit in terms of expectations, not by much. Performance,tock hsbc really charging ahead. It is going to have a lot of points into the market. On the downside, one to highlight rollsroyce. It does seem as if theres some caution around the 2020 target this morning, and that is lowering the stock significantly, down by 3. 23 this morning, so quite a drop in terms of rollsroyce, but hsbc the real driver on the upside, particularly for the london market. Matt i want to talk oil right now. Rosen new york briefly above 15 for the First Time Since may after opec said the group and its partners will meet next week. The abu dhabi meeting, cochaired by kuwait and russia, is set to take place after saudi arabia said last week it would step up pressure on countries that are not complying. Joining us now on set is james he investmentccl management, and in singapore, we have mark cudmore, bloomberg analysis macro strategist. Mark, let me ask you first. It looks like we have a lot of commodities, last week we were talking about copper. Iron ore is doing well, oil is doing well. The whole sector right now looking a little more bullish . There are a lot of microstories here, which are driving the different asset. You of the saudi arabia story, the venezuela story, even shall extending the force majeure cut on body like crude. When u. S. Time inventories have been falling, and their positive signs of consumption demand. The shortterm story continues to be good. Structurally, the longerterm story is that it is supplydriven, and there is this lower high every time we get a spike up. At some point, it will probably be feted again. As you say, the other commodities are trading very well, iron or in copper are really the strong stories at the start of this week, and that sends a positive message about what is happening in china. What do you think about this again we have seen on the back of some positive signals and chin