The inflation puzzle. The fomc remains confused and divided over white prices, price rises are still up 2 . Will jackson hole deliver any clarity . Asking permission. President ons donald trump is the situation on the currents Korean Peninsula beginning to cool . Matt we have best is coming out with earnings, secondquarter euros. S 279 million missing the estimate by about 61 Million Euros, the street was looking for 330 Million Euros. The Company Still sees fullyear holding ebit margin, forecasts but missing in their reporting quarter. We will see how the market treats that. The outlook is more important but the market often wonders if it means something when they ebit. Miss ebit and revenue both missing. We will speak to an executive from that company and a little bit. Where less than half an hour away from that european open. Take a look at where stocks are trading. Had gains yesterday across the board. Today futures are down. We open up in 28 minutes and we will see if that carries through to read euros for the cash trade. Bunds, take a look at the investors are getting back into safe haven assets. Heres a oneday trade of the fund bund. Coming down in a half hour since the market opened. Were looking at 0. 43 for the yield on german paper. Guy theres an awful lot of korean on the screen. The gmm, i highlighted a couple of things and i want to highlight what is happening in the metals market. Metals are very strongly bit. Bid. Metals have been on the move. Metals deadly on the front. You have zinc trading higher, copper trading strongly to the upside. It was the singapore contract that went through, that is the first time in 10 years you have seen that happen. Lets get a bloomberg first word news update. Juliette white house chief steve bannon has gone public with his long simmering food with some of Donald Trumps top economic advisers. He told the american prospect magazine that he often battles with treasury secretary steven over taking ary tougher position on china. Bannon did not respond to our request for comment on the interview. South koreas president said donald trump must ask for consent before taking military action against north korea. Marking his first 100 days he said only his country could greenlight a strike and he s regimehat kim jong un is crossing a line. U. S. Federal reserve officials engaged in a detailed debate about inflation while keeping the door open for a september announcement on the timing of Balance Sheet reductions. The minutes of last months policy meeting showed a majority of the fomc sticking with the forecast that inflation would gradually rise to their 2 target over the medium term. Many saw some likelihood that inflation might remain below 2 longer than they currently expected. From the will back brink of a violent electoral dispute after the main opposition agreed to contest the outcome in court. The president was declared the winner of the vote that is made rival said it was stolen. Security forces and opposition supporters had clashed when the ults were announced riyadh were announced. The uks next phase of brexit talks with the European Union could be delayed until the end of this year. According to sky news, citing sources, cabinet ministers involved have indicated the next talks may not happen until christmas. That as some figures anticipate a change in Angela MerkelsCoalition Partner will make discussions easier than with the current coalition. Japan has posted a trade surplus for a second consecutive month in july as exports continue to grow. Exports rose by 13. 4 while and thesurged 16. 3 . Latest sign that domestic demand is recovering. That left a trade surplus of 3. 81 billion. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy thank you. President Donald Trumps business form has been disbanded after a growing number of ceos quit and rip have quit in protest to his response and remarks for the violence in charlottesville. As a savvyhimself businessman who would cut taxes and regulations and unleash for american companies. Larry summers said the Trump Administration is unlikely to enact significant tax reform. Someybe there will be taxcutting, but i think the reform,s for structural which was the aspiration the president laid out are minimal at this stage. Kevin brady, the house ways and means chair said tax reform is apparently still on the agenda. Of tax reform is all about helping every american, of every size isize and every less, making sure they can pursue their American Dream whatever it is. This is the right issue for the right time in this country. Mark hads talk to more. You talked about the fact that there is zero chance of reform priced into the market right now. A negativece in number when it comes to that , they, things get worse do not stay steady, the get worse because the Business Community and the white house are at such loggerheads . Mark good question. I do not think you cant price and negative. Is not expecting the tax situation will get worse. It will be tax cuts if not strict structural reform. You can get a negative sentiment. That is pricing a bit of a negative. There is a lack of positivity. That this administration that can can get anything done that is positive for business. Many leaders have argued that has been the case in america and this is not new but they were hopeful they might get support because that was the one pillar that this administration was going to bring to the u. S. , it was going to support does this. That does not appear to be the case. Guy where you are sitting right now, how much attention is being interview that bannon gave yesterday, talking about the battles that exists within the white house between himself and gary and the treasury secretary mnuchin about how to approach china . And in talked about economic war. We have seen Business Leaders walk away from the white house, they are not employed i the if they were to do the same, would you worry that the situation with china could get more problematic quickly . Mnuchin or cohe away, they bring a moderate hand on trumps shoulder at least when it comes to the economy. That would be a big low for the administration if they did step away. Is garnering little attention in asia. A lot of the events of the last week or so, a lot of the turmoil around the Trump Administration is being ignored. Even some of the statements that were big news in the u. S. , over here in asia, they are barely a talking point. We have become normalized to this behavior. People are focusing on other issues. They are worrying of how it will affect trade with china. That will be an issue but that is the angle, not about whether there is any, in the short term. Matt how much have you heard investors and clients, are they talking about the fed . Is the fed news which would forally be the top headline any Financial News agency today, has it been overshadowed by this trump drama . Mark i do not get has been overshadowed id trump, it is overshadowed by summer holidays. There are not many people around, there are a lot of red lights in the bloomberg terminals and people are not focusing on stuff. Was one of the main talking points by the fact that there is price action overnight. There was this big dollar dive again at a time when the market was starting to buy into the fact that the dollar might be set for banks. Whether you thought it was a proper turnaround did not matter. It could go a couple of percent. Where it went from there would be more debatable and the fed minutes killed it again. It was the main story overnight in asia definitely. You see any positioning in advance of jackson hole . Are there metrics we can gauge as to how people think that is going to be delivered as a story and whether it will be market moving or not . Mark you saw the reaction yesterday when the draghi comment about how they would not announce stimulus, there was a sharp and immediate reaction. It was exaggerated by illiquidity. There was some kind of betting going on that the ecb might announce their plans. Jackson hole will be a big anticlimax. Policyxpecting any major. The fed has made very clear the position that they want to go ahead with alan sheet unwind and we are expecting more details in september, we are not expecting any major policy announcements that was confirmed with the ecb. It might talk about the policynt longerterm framework but not for trading after the jackson hole meeting itself. Guy thank you. You can follow smart analysis throughout the day and it is really good stuff. You will get that fantastic function at mliv. Matt i am sure that most of you use mliv as it is. You can watch tv. You can open in a different window. Tv shows you the video stream i have got open here to our flagship morning show. You can also follow the functions and charts that we use as well as the blue link at the bottom of the scream, go ahead b us a question. We will talk to the ceo of west farmers. The Company Reports fullyear earnings. We are live in perth. This is bloomberg. Matt welcome back to Bloomberg Markets, the european open. We are 14 minutes away from the start of cash trading. We are going to singapore with juliette saly. Juliette companies behind the most popular u. S. Credit cards have said they are severing ties with extremist organizations that insight violence. Discover Financial Services said it is ending merchant agreements with hate groups. Visa and mastercard said they were cutting ties. The move comes after they came under pressure to stop providing ways for whites promises groups to raise funds in the wake of the violent protests in charlottesville, virginia. Tencent shares have jumped the most in a year in hong kong profits posted record after the chinese internet giant announced a 70 surge in net income to a record 2. 7 billion topping analyst estimates. The company is benefiting from the popularity of its smartphone game called honor of kings which gives the company more than 200 million players. Elliott management has bought on cord electric delivery. Familiar,to a person the firm has acquired 60 million of leverage eye out notes in Energy Futures intermediate holdings. Elliott and Sunrise Partners which also opposes the option offer own a majority of impaired credit and a company. Shares in Cisco Systems have fallen in extended trading after they predicted another revenue decline as the business tries to remake itself amid a changing networking industry. The currentvenue in time may decline as much as 3 from a year earlier. The ceo of Cisco Systems will be joining us at 2 30 p. M. U. K. Time. That is your Bloomberg Business flash. Guy and match. Guy thank you. Names, all bunch of core stocks, you can find bloomberg, you need to make some changes at the top with the timing but it will confirm which dividends are going out today. Or which stocks are going ex dividend. Is what we are at here. Lets talk a little bit about what is going on, were looking around 8 30he ceo a. M. U. K. Time. The numbers have missed. How are they maintaining guidance . We will figure that out. Theres another interesting lunch of questions, talking about, they are looking to get battery business and you can kind of understand why. Coming fromoth flow into the grid and the way you smooth that out is by Battery Technology so you put the battery next to the turbine changebe you start to the dynamic of wind in terms of its abilities to fit into the wider grid. We will ask the questions after the open later on. Matt there is a huge debate here in germany about the placement and the existence of these wind turbines. This country lanes green so they are happy about the Renewable Energy aspect that a lot of people complain about the what they consider the eyesore of these wind turbines, donald trump famously complained about them trying to put up these giant windmills by a golf course of his in scotland. My personal opinion does not matter but i think they look great. Guy get a question you should ask, when you drive around and you see an old windmill, you think that looks ugly as well . Look i think they fantastic. They are look like works of art. The important part is what you are seeing is something that is saving us from more Carbon Monoxide poisoning. Carbon dioxide in the atmosphere as well. That has to be a good thing. I want to point out that we are going to talk about west farmers earlier. I mentioned the company, a storys largest target employer. They reported fullyear net income that missed estimates, 10 of the population works for that company. It is an important. It there and around the world. There is a wide range of businesses in australia and abroad. That Company Acquired food and hasor retailer coles and interest in coal mining and chemicals, fertilizer production, just to name a few. It is a fantastic read on the bloomberg description page if you want to check it out. Joining us now is the companys ceo. Welcome to the european open. Let me ask you first of all about the possibility of a sale of your resources business which is the headline that sticks out at me on the bloomberg from this morning. You say you are pursuing strategic options. These kind of reviews lead to sales. Is that a possibility . Richard it is a possibility. Increasebusiness may profit. We are talking to various parties at the moment that said they will be in our camp but there is a possibility we will sell the coal mine [inaudible] are fantastic generators of cash for the group. Guy what kind of fire would be interested . They are performing all right right now. they are because export prices have been strong. Businesses and the owners are talking to us as our other parties. It isms of the business, other coal miners were talking to us. We have got, these are really good businesses with positions on the cost curve and good quality product coming out of them with good infrastructure. They are really good assets. We are looking at what the best thing is for shareholders in terms of that strategic review. As is retailbility retaining the businesses. Data coming out of australia in terms of the jobless numbers, much better than expected. The jobless rate continues to come down. You are a huge employer in australia. Do you think we will get to the point when you start to see the numbers, meaning you will have to pay people more . Sense, paying people more is something we would all like. The usthe issues in trillion economy has been low wages growth. Environment, an expectation of that it would be nice to see some wages growth and it is pleasing to see unemployment rates fall and certainly unemployment numbers have implement numbers have gone up. There is still some fragility in the domestic economy. I do not think we will see ry pressure on wages in the near term. Those things are all important in terms of building some confidence in an environment that the economy will continue to grow as a straw you has for an extended time. Like ours will invest and out of that will come Job Opportunities for people. Tot i assume youre looking you can focus on coal so you can focus on target. What is being done to make those businesses more competitive . Richard we would love to grow our industrials business, the other parts of our division, chemical and industrials and fertilizer performed well and they have terrific growth prospects. , we havethe rate stripped back and taken costs out, we can now grow that business. We have to get the assortments right. We are positive about the outlook for target. We will have to jump in there. Thank you very much. This is bloomberg. Got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Guy minutes to go until cash opens in europe this morning. They day for divvies big day for divvies. We are expecting european markets to open softer. Here we go. Here is the screen. You get the fair value calculation. We are not going to be down by much this morning, but maybe. 1 ,. 2 will be the wider story. Matt thinking about something mark cudmore told us earlier about the drums. I was looking at the u. S. 10 year. Reading theple are story about the concern they have of not being able to reach their inflation target, and yet the 10 year yield, the range is the tightest it has ever been in three years. To pick upt going and turn around so you can see Real Movement on the 10 year . Guy let us talk about this market open. There you go. It is flat, i think, is probably the best description. Is down by. 2 . We are inspecting pretty similar numbers around the whole of europe, down by. 2 at the get go. Plenty of things to watch out for. Take a look at the retail members coming out of the u. K. Walmart reporting numbers later on, something to Pay Attention to. We have the ecb accounts to think about later on in the morning as well. Yeah, absolutely. I am looking at the imap. You know what is interesting is the last couple of days yesterday, we saw a big jump for stocks, relative to the kind of moves we have seen in the last month, massive jumps for stocks. The biggest losers were the defensives. Health care utilities, and telecoms, which were being yesterday, but not at the pace of Something LikeConsumer Discretionary stocks. We saw them up at the top. Health care, telecoms, and utilities are among the gainers, with material. Everything else is losing today, so maybe it is kind of a risk off day with the only stop that people are buying, those income payers, those defensive stocks. Guy let us take a look at the mov screen. Im going to look at the index points. Is exdividends at a. You have got a whole bunch of xds today. Total Trading Software as well. The banks got big enough