I am anna edwards. Lets start with breaking news. Of howe pmi, the gauge the economies across the eurozone are doing right now, these are the preliminary numbers for august. We were expecting on manufacturing a number of 51. 3. It has come in at 50. 8. The service number, that has come in just a shade below estimates at 53. 5. The composite number, we were expecting 53. 4. That has come in at 52. 8. That is a little bit below estimates. Slightly below estimates all in all. Clearly the miss against expectations lies somewhere outside of germany. Lets check how that is impacting on the euro. We are not far right now. 1. 3268. You can see the oscillations in trade around that french data which was mixed to negative and that german data which was better on all counts. Details from our international correspondent, hans nichols. Storye been watching this all morning. Just to recap, that composite number on pmi for the eurozone has come in at 52. 8. Way theis is in a reverse of a story where we had gdp numbers late last week where you saw the German Economy contracted a little bit more than was expected. Today, the numbers are that germany is doing a little better than expected. It is still getting awfully close to that 50 number. Anything above 50 signals expansion. You look at where pmi was three or four months ago. Preukrainian crisis. It was in the mid50s. On both manufacturing and services. Use all the fourth straight month for declines for french manufacturing. Manufacturing is only about 10 of the french economy. Not as crucial for them. Overall, this is kind of the story of the last six months. Germany is limping along and the rest of the European Countries maybe with the exception of the periphery which showed strength in gdp figures last quarter, the rest of europe seems to be a little more than limping, dragging on. It is sort of softly monotonous numbers that dont leave all whole lot of cause for optimism unless you zero in on that Services Number for germany. That is in the lower to mid 50s. I guess if you were looking for a silver lining, at least these numbers are positive. The last gdp reading showed no growth in the eurozone. Perhaps some people had expectations that we were in for something weaker. We have got some growth in the euro zone economy according to these indicators. You are right. That is the half full way of looking at it. There is clearly slight expansion on these preliminary numbers. One note on the preliminary versus final. , atthe last few months least for germany, the preliminary number has been revised upward. In some cases almost a full point. That doesnt necessarily indicate a causation or a clear trend but at least it does look like sometimes the preliminary number has been coming in a little bit lower than the final number. Much, hansu very joining us there from berlin. Lets turn to company news now. Shares of ahold are down this morning. The retailer posted a fall in sales. Here with more is caroline heidi. How bad were the numbers . It seems like the percentage of the stopping and shopping going on in the u. S. Markets, fewer people are stopping and shopping at stop shop. They are stopping but they are not shopping. They are blaming easter to a large extent but they are also complaining that it is a Competitive Landscape in Price Inflation is very low. They are not able to boost the prices of their food goods at the moment. This is quite a powerhouse in europe and the United States. Homeland, it has egos. In the u. S. , it has got stop shop. A number of brands and they say, we are losing market share in the United States. Particularly in new england. Ales down 1 on a like for like basis, they missed estimates in the United States and europe. The margin is under pressure. Operating profit down 15 . Overall profitability is being hit because they are having to discount a lot. In prices. And also invest in the stores. If they are going to have all this competition, they are trying to upgrade their stores like tesco is trying to do. 320 stores have been tackled in the United States. Not much bang for the buck quite yet. Even though the dutch team did pretty well with beer and food, it did help a little bit but not enough to offset the overall deterioration. What do things look like ahead . Any light in the tunnel . The ceo saying it is not easy. He is trying to sound optimistic. Shares are still trading lower. Investors arent biting. It does say that cost of a proposition, the fact that they are investing in their product range as well, does mean trends will improve. That doesnt seem to be being bought in at the moment. Online was the silver lining. Onlineabout 90 growth and they are investing in that. In europe, they want to be in half a million homes. Republicnd the czech did relatively better but dutch, u. S. Didnt do so well. They are going to have to keep on with this restructuring process. Europe, they took a reorganization hit. It doesnt look quite rosy just yet. I lived in holland for a while. I think albert haim is responsible for my addiction to waffles. Very tasty. Caroline, thank you. He latest on ahold here is what else is on our radar. Americament for bank of could be announced as soon as possible according to people familiar with the deal. Reportedly pay about 17 billion to settle u. S. Investigations over the sale of mortgage bonds in the runup to the 2008 financial crisis. The latest minutes from the fed show policymakers came close to an agreement on how to exit on the u. S. Central bank unprecedented stimulus program. Some participants were uncomfortable with the fed plan to keep rates low for a considerable time. Many said that they may have to raise rates sooner than anticipated. Fed, many of the worlds most powerful financial players have gathered in jackson hall for the kansas city annual economic symposium. Janet yellen will give the keynote address tomorrow where she may address labor market data. Coming up, from jackson hall to europe, we are going around the world with pimcos deputy cio. We will get her insight on the global economy, Financial Markets and investment strategy. All that is coming up on the pulse after a short break. Welcome back to the pulse. Bloomberge on television and also streaming on bloomberg. Com. The fed annual Monetary Policy symposium in wyoming kicks off today. U. S. Economics editor michael anee is on site and gives us idea of what investors should expect to hear. For decades, this was an academic conference. Research papers assigned explained and discussed. Of qe and extraordinary centralbank policies changed all that. For several years, ben bernanke used the keynote speech to outline fed policies to come. We dont know what janet yellen will do. Tolysts say she is likely split the difference. Reiterate that u. S. Labor markets still need improvement without saying what the fed could or should do about it. She may also update her dashboard, the indicators she uses to judge the health of the labor market. High levels of longterm unemployment and parttime work and low levels of wage gains, permitting conditions or just transitory . Another key issue is likely to be what happens and centralbank policies around the world start to decouple . If the fed and bank of england start to raise rates next year while the ecb and bank of japan continue with qe policies. Yellen will be followed by mario draghi giving a luncheon address. Investors will be looking for insight into how bad he thinks conditions are in the eurozone and whether his bank will follow the fed in adopting some sort of qe alessi. On saturday, he rookie corona uroda will discuss the latest on the nymex on abenomics. Wall street and city economists not invited. Right. For more, lets bring in our guest, virginie maisonneuve. Great to see you today. Wetalk a little bit will look back and forward at the same time. Talk about the fed minutes from yesterday and where that leaves us looking ahead. At thee quite surprised reading of the minutes that seems to be gathering momentum, that they were a little bit more hawkish. You didnt quite see them that way. Ini thought they were quite the path of what we have seen so far. What i saw is we had an acknowledge meant that things were going better. We talked about and all of that. Disagreementpen about the slack. There was discussion around that. Of course, future signals that at some point will normalize, but we didnt have the timing on it. A continuation of the other messages. I think what is important is it sets the stage well for jackson hole. That is what it is. When you think about jacksone hole, the importance is how we communicate, how we deal with three major things. One is even recovery, really at the core of what yellen is talking about. Large part of the population who is not benefiting from this recovery. Is it because she is so focused on that dashboard of indicators around the labor market . Michael mckee was running through those indicators. Unemployment, longterm unemployment, parttime workers. Is she so focused on that that people come to the conclusion that she is more dovish than the rest of the hawks and is that perhaps where the different interpretations come from . Might be. My view is she wants sustainability. The recovery we have had so far is really a financial recovery. At least the u. S. Is ahead of the curve we have seen better economic activity. If you look at europe and some other areas, it is very slow. She wants sustainability. For that, we need a broader level of employment. It may mean that we need to think about structural changes in the economy in the light of the what we call the new neutral. I think that would be the second point. How do we address the world that is entering a new phase . Slower growth in emerging markets are still growing, but much less than before. The world is driven by consumption, by at least 60 . The consumer has gone through a pretty traumatic development in the past few years. I think that is another big question. The last one is really what we call a multi speed world. How can we address Monetary Policy in this multi speed world . Phase one was, we are all in together. Phase two, we put measures together. U. S. And u. K. He are in a very different state of the process than europe and japan. When we start to see Central Banks having to take very different paths, that is when that multispeed world starts to come into focus. Is that going to be a big topic of jackson hole . How does policy normalize at different rates in different parts of the world . I think it should be. I think clearly that has impact on currencies. There is also a Global Citizenship element. If the u. S. Was just looking at the u. S. , it might have a certain path. Linked tos very much the Global Environment and we have geopolitical risks that have stepped up. All of this means that that responsibility of being a Global Citizen should be discussed. Corporations and central bankers were much talked about. Are stillnk they cooperating as much as they have been or should be . I think they are. It is probably not in the same level of intensity that we had but i think they are. I think we are feeling that we and vulnerableid recovery. I think that corporation is an essential. We will look at that recovery when we talk to you next. We will talk about what is going on in the eurozone. Lets get some company news now. Germanys largest chip maker, Infineon Technology will buy International Rectifier for about 3 billion in cash. The purchase will be infineons a guest acquisition to date. Gives infineon more capacity to deal with rising demand for chips using Car Electronics and puts it closer to the tech hub of Silicon Valley. Maywere may face uber face additional setbacks as blocking theeihghed service. The company is fighting bans in berlin. Munich and dusseldorf are considering taking action. The administration has said that uber drivers need a cab drivers license because they are driving to earn a profit. Shares lower after an earnings report. Net profit fell 52 from a year ago. Sales fell. Aompany also cast a 220 2014 outlook. Lets get you todays post number. 15 million, that is how much it takes to create a super stealth warship. A selfmade millionaire spent a decade and millions of his own dollars designing this ghost boat. It is undetectable to radar and he hopes it will one day be used by the u. S. Navy. More on that story later on. Welcome back to the pulse live on Bloomberg Television and radio. Lets check in on the markets now. Jonathan ferro has the latest. They were green, they were bred, where are we now . Choppy. 10 minutes in, we were lower. Right now, hi. The cac 40 up by 0. 6 . Eurozone data dropping through the morning. The pmi is a mess but german data slipped from previous months but a lot better than many forecasts. You are seeing what is happening in equities. You see the dax now up by 0. 5 . This could impact the fx market as well. Eurodollar higher. 1. 3265 as we speak right now. There is the composite. A little bit of a drop off but still positive territory. I think this is where things are starting to get more interesting. A hawkish set of Federal Reserve minutes. Richard fisher sounds the alarm on this. He said the committee was coming around to his way of thinking. The minutes speak to what he was talking about. On friday is the big one. A hawkish set of Federal Reserve minutes. Fastball for janet yellen. Everybody expects her to step up to the plate, put the cap on and smack that away for a home run. Dove capitulates . Everybody i spoke to this morning says no. You very much. Lets take a closer look at what is happening in europe with virginie maisonneuve. Lets talk a little bit about the data we have had out this morning. We kicked things off with china. Overnight, we got disappointing hsbc pmi numbers. France. Ot germany, the composite eurozone number came in below estimates. This is for the month of august. We are getting early readings. Where do you think we stand . Clearly, the russian situation has created i think another element of difficulty, particularly potentially denting some business confidence. I think that is the key thing. That doesnt mean that is going to go on forever. There are talks and hopefully things will be resolved. Hoverher thing is, as we around that 50 level in pmi, we should expect given the fragility of the recovery and in example,s, france for the sluggishness of it, a slow path to recovery. We should not be surprised by the small volatility around the 50 number. For me, what is important from here and given what we have heard about the fomc and jackson hole is, do we have room for much weaker euro . If people anticipate 1. 30 two already down from 139. That is beneficial for europe. I think if we had a further gap between the two currencies, that would be quite helpful. I also would like to see more structural reforms. Particularly in france and other countries. We want to make sure we continue on that path. Thank you. It is time to get you todays hotshots. We kick things off with a different approach to a two wheeled sport. These bikers spend most of their writing airborne. Turbulence is one thing. Have you ever seen a plane do loops, barrel rolls and other maneuvers such as this . One brave pilot defies physics. Finally, a president ial dousing. U. S. President george w. Bush accepted the ice bucket challenge as his wife crept behind him with a bucket of ice water. The challenge calls for participants to videotape themselves dumping ice water over their head. It has raised nearly 23 million in donations to the als situation. Who would you nominate . Some good ones. We will be back after a couple of minutes. Welcome back to the pulse live from bloombergs European Headquarters in london. I am anna edwards. We have just got manufacturing and Services Activity for the entire euro zone data. The purchasing Managers Index slowed in august to 52. 8. The slowdown indicates the region remains vulnerable to weak inflation and rising tensions with russia. Europe has to biggest economies reported manufacturing data. French manufacturing contracted to its lowest level in more than a year. Germanys pmi also fell but lower than analysts expected. Germany may be able to withstand the russian import ban better than other European Countries. Chinese manufacturing fell more than analysts estimated in august. The preliminary reading came in at 50. 3 which trailed economist forecasts. A it is confirmed, it will be threemonth low. We are getting some numbers on u. K. Retail sales. In 0. 1 ail sales coming growth. The estimate was for an increase of 0. 4 . That number does seem to have undershot estimate considerably. Lets talk to virginie maisonneuve. Petey cio at pimco. About the needg for structure will change in the eurozone. We heard from Joseph Stiglitz yesterday. He was also banging that drum, saying that Monetary Policy is no substitute for fiscal policy and structural changes. We have seen some, havent we . What do we need to see more activity on . I was referring to france. Few years, with a weak political leadership, it is really denting the potential to tap into the entrepreneurial spirit. We have to make difficult structural reforms. Otherwise, the country is going to continue to drag relative to the rest of europe. I think generally throughout europe, weaker euro is going to help. Probably more qe you think the euro is going weaker still . Because of the divergent path between the fed and the ecb. Exactly. Clearly as we discussed earlier, yellen also has that Global Citizenship responsibility. Notwill be careful about moving too drastically too quickly. In mind,ith that path the expectations of a weaker euro are going to remain. Clearly, it is august. The are still above 50 on the pmi, which is positive. We have had the russian event which will create a small dent in business confidence. Interesting that we get these numbers on pmi for the eurozone above 50, showing some growth. Now in the midst of this sanctions environment with russia. In the Second Quarter, we saw no growth. You can make a case