Welcome to the pulse, live from london. Nikkei hasns recorded its biggest oneday gain since 2008. That came as asian stocks rose across the board amid optimism that chinese policymakers will succeed in stabilizing the mainland equity markets. Francine the chinese premier will address an evening session of the World Economic forum and discuss the state of chinas economy later this morning. To round up all the market moves, lets get to mark barton. Mark what is going on today , then . The asia pacific index rose the most since 2009 in the last two days. The shanghai composite Index Benchmark has risen by 5. 3 , all on this belief that china will stabilize its Financial Markets. It comes after all three u. S. Indices went down, their secondbiggest gain of 2015. Index hadsiapacific its biggest gains in 2009 not the most astonishing move today in asia. This is the most astonishing move yesterday, 24 hours ago, we were talking about the nikkei erasing all of this years gains. What a difference a day makes. Japans benchmark, after falling 2. 4 yesterday, look at that, all the way upward. 7. 7 higher today. Its biggest increase in seven years. Whats interesting is that this has been a gauge hardest hit by chinas move to devalue its currency. China is its biggest trading partner. Since august 11, i have circled it, the day china devalued its currency, the nikkei has fallen by 16 . That was through tuesday. Only the shanghai composite has fared worse, out of 93 global primary equity indices. 7. 7 higher quite astonishing. I want to look at some of the commodity producing currencies, and i have chosen one because today we have a commodity exporting countryled rally. South africa currency rising, australia, new zealand. I have chosen south africa because it was only on monday that it fell to record lows against the dollar. This is the rand against all major currencies. Only one is rising against it. All the others are falling. It is falling to a record low on monday, having sung 15 really quickly. Also rising up for a third consecutive day, no longer in a bear market. It achieved that dubious distinction at the end of august. Manus you got there, mark. Heck of a market move. Despite the recent concerns of chinas slowdown and the effect on the global economy, the worlds third richest man, Warren Buffett, doesnt seem too concerned. Heres what he told bloomberg earlier. I think it is unlikely that the world has it always can. You look at history and it has not been a Straight Line in this country or any other place. Five or 10 or 20 years out, there is no way that america is not going to make progress, china is not going to make progress. Usncine but guy hands told that the current investment process is the trickiest hes ever come across. It is probably the most difficult investment landscape during my lifetime. What that means is that in terms of revit equity, there are opportunities that are quite shortterm, and you really have to grab them and execute them very quickly. Manus lets bring in john molden. Good morning to you. Handto 10 to 20 guy says there is opportunity. He is giving reference to the u. S. Civil war and china would do well on that same logic. Its the first time ive seen a guess used to predict the outcome of china. Chinese are clearly really important 40 on last years growth in the World Economy an enormous voter that is slowing down. A lot of concern about the credit, a lot of concern about the political system, a lot of concern about efficient state industries and demographics, but it is still a massive motor. F you get your way to slog through the papers you will see all kinds of views. The ft this morning said it is nearly time to leave them. Whatine the more i read you read and the more i talk about it, the more i think what i think lassen berg says no one can read china. Jon correct. That is probably fair. It operates a political system we are used to playing with, so a free market doesnt quite work. Francine that makes it tricky for investors. Jon it does. It makes it very tricky. Low Interest Rates, massive involvement with Central Banks, these rules do work very well. We have had quantitive ready tout getting take that away is something the world bank warned tagainst. Is there going to be panic in turmoil in emerging markets . Or should we get ready for more . Panic, butthere is Central Banks, i think, have very much overestimated the effects of their monetary actions. They really havent succeeded in doing much more than moderating things. There is a lot of weakness, a lack of investment, around an extraordinarily low Interest Rates. It is very strange. Markets benefit from their withdrawal . Actually,hey well, because im sufficient to cringe contrarian to believe so. Francine you come on regularly on the show and we talk about your investment strategy. We were looking at the criteria this morning. 50 million to 500 Million Pounds in equity investments, and you are looking for something structural. Jon we do nothing but turnaround. Francine so this is perfect. Jon no, its lousy. Francine why . Jon there is almost no turnaround. Of the effects of low property. Very few companies are actually allowed to fail, were pushed into drastic restructuring. They stagger along and they may not be Bad Companies but they arent good companies. Good assets in the mediocre companies. Manus you have taken some interesting investments. Entertainment, fashion. Are those your biggest calls in terms of investment . Jon in the turnaround area, we have a sufficiently thin flow of deals that we can be fussy. Give them a chance and i would do nothing but manufacturing, something which is relatively mechanic. Consumer Products Companies are obviously much harder, much more diverse in their problems. Francine you are often involved in airlines. Sales this is a great environment because you have low oil prices. Jon absolutely. It is relatively easy to make money on an airline. It is a rotten business in a downturn, but the oil is in the and this lousy weather works well for the airlines because people needed to get somewhere that is sunny. Manus what do you make of the argument that people should be looking at the oil industry, the commodity industries, as having gone so low that they are ready for a big bounce . Jon basically, i dont try to guess about futures. , guessing howngs to hedge the oil is the biggest decision we make, and the one we had the least capability of getting right. Same for everybody. I think whats going to happen out here at the moment is pretty unclear, and remain so as ever. Sorry to have a silly answer. Francine very quickly, you said it is difficult to find turnaround companies at the moment so i guess he will have to wait for intrest rate rises when will they come to fruition . Companies have Interest Rates of a percent and 10 and they run out of money quickly. When it is down they are paying rates of 3 . The bank can avoid having to put a company into bankruptcy, take it right down, by advancing a very small amount of money. You can keep the Company Going a very long time with very poor performance. That is the biggest problem we have. When Interest Rate to rise, there will be more companies coming forward, but it is quite remarkable, the number of Companies Going into turn around and restructuring is very much reduced in europe. My main to competitive funds have withdrawn from the market. Francine jon, thank you so much. Manus heres a look at what else is on our radar this wednesday morning. Soared afters a profit forecast by 25 . Discountbiggest airliners said profits have been bolstered by strong summer ticket sales and higher than expected fares. British Airways Passengers rushed to safety after a london bound jet caught fire at a u. S. Headquarters. Billowing clouds of black smoke went into the air and all passengers and crew members were safely evacuated. A second day of strike after a court force them to drop the action. 1000 flights have been canceled. Investment in north sea oil and gas projects could drop as much as 80 by 2017, as the collapse in oil prices forces the industry to cut back. That is according to an industry lobby group who says that Capital Investment across the industry will probably decline by between 2 billion pounds and 4 billion pounds annually. Manus alibaba has been stripped of its title as asias biggest Internet Company after a 10 month slide. It wiped 140 billion off its market value. Tencent now takes the number one spot. Francine Queen Elizabeth ii has become the longestserving monarch in british history. She took the throne in 1922, age 25. She surpasses her great grandmother victorias reign. Well done. Manus absolutely. Juncker says the refugee are the continents number one priority as he delivered his state of the Union Address yesterday. The First Priority is and must be the refugee crisis. Since the beginning of the year, nearly 500,000 people have made their way to europe, the vast majority of them fleeing from syria, the terror of the Islamic State in libya. , with over 200,000 refugees, in hungary, and italy with 120,000. The numbers are impressive. For some, they are frightening. Time to taket a fright. It is a time for both determined, concerted action by the european union, by its member states, and by its institutions. Francine for more on all of this lets get to hans nichols in berlin. What do you make of what we heard so far . Far inhat we heard so the migration refugee side of the equation is three important points. He came up with a dollar figure 1. 8 billion euros for refugees, for this sort of problem. He also came up with increasing border protection. Make a realm to Border Police and a coast guard. This is a little bit more macro he hinted at the demographic problems, saying lets not forget that europe is a country that is demographically in decline. It is a strong indication that he sees the refugee inflow as one way to solve at least the european repopulation problem. All this we about should take a look at the economic states as they are. You take a look at a dozen countries, not all 28 eu members are part of it, but you take a look at what it does and has 1. 2 5 billion visits. When you look at the amount of commerce, that is what is at stake. Willntioned that schengen not go down under his watch. He also throughout a lot of numbers, the numbers of new arrivals in europe. I think it bears repeating that all these numbers are in flux. We have here in germany 27,000 over the last 40 days arriving in berlin alone. They are building housing and trying to figure out some way to bring them in, but the pace of arrival is accelerating. That gets us back to the political challenge, and the Prime Minister of hungary has said all europe is doing now, by saying it will accept it, they are accelerating the problem. At a certain point, europe will be at a breaking point. Mr. Juncker is calling for a hundred 60,000 resettlement, just from those that are already here in europe already hungary, italy, and greece it doesnt do anything for the 4 million syrian refugees, 3 million in lebanon,. In turkey it is from that pool that David Cameron wants to reach his quota of 20,000. Those are different Difficult Conversations to come. Manus very much. Hans nichols in berlin on the latest from Jeanclaude Juncker. John bolton is still with us jon moulton is still with us. This is europes Biggest Issue at the moment. Jon very much so. Humanitarian angles and pure economics. On an economic basis, the demographics are notoriously poor. Getting some relatively lively, productive refugees to join the population is economically attractive to them. Itsalso their age problem, their productivity problem. You are seeing that very clearly in germanys willingness to take in large numbers of immigrants, and a fairly strong minority rightwing component very opposed. Francine i wanted to ask about capital. You were talking about the market you had a tough time are you worried about the future . Jon always. Francine are you really worried . Jon no, im quite a robust soul. We have some great successes. You play the turnaround field and you have to get used to the idea that you will have failures. End, weut the other have an aerospace engineer. Francine so there is no company you wont get involved in . Jon oh, yes, lots. Out of my career, about 100. I can assure you there are some. Manus we will get those offcamera, see who they are. You will stay with us. , what can we expect from apples big hey, siri media event . We will be looking ahead with the head of digital. Francine welcome back to the pulse, live in streaming on your tablet and phone and bloomberg. Com. A dan youle hosts will splash in San Francisco later on today, where it is expected to unveil its latest edition of the iphone. Francine bloombergs head of digital is here with more. Nate, thank you for coming on. When we look at what to watch out for apple tv, something that will block unwanted ads . Nate yes. Its amazing how much attention that is getting. Something that is very popular on the web and on desktop browsers, that hasnt really come to mobile phones yet. New iphones. Probably the most important, interesting aspect we are expecting, the ability for the screen itself to know how hard it is being pressed. On the surface that doesnt sound that interesting. That these sorts of moves allow apple to make devices thinner and remove buttons. Apple thinks they are heading in the direction that is a completely button free phone. That would be the ideal product. This allows us to get a little bit closer to that ideal, which is something the company introduced for the apple watch last year. The other thing is the apple tv, which for a long time apple has said is a hobby, something that has gone through a number of iterations. We havent seen that much attention on it since 2012. We are expecting to see a complete change to the apple tv, a change in the business model, perhaps, the introduction of an open up the apple tv platform to all caps Developers Making huge sums of money around the world on ios. Manus typically, we look at apple we simply didnt have some of these things seven or eight years ago. What will be revolutionary . Is a blocking ads, a bigger ipad, a slimmer iphone . Nate we expect so much, and it depends on how we define revolutionary. Anont think we are seeing introduction of an entirely new product category, the likes of the apple watch, the ipad. Cane the iphone generally get most of the attention because of the amount of apples revenue it accounts for, and quite rightly so, it is probably the apple tv that will see the most significant change. We are talking about a platform that has been very affordable, and it sits under a tv and allows you to stream content. We are potentially seeing this move into the category that could be as profitable for developers as the iphone and ipad, at least in terms in terms of apps. But if it does become the next big platform, it puts it in competition with the likes of sony and microsoft on the games console side, and that is something that possibly could make apple a lot of money. Francine i think it is something it has a touchscreen, so you can play games. Jon, youre not crazy about tech at the moment. You think valuations are too high. Jon they are indeed. Francine anything with apple . That has a cool factor. Jon it does, though i would prefer its 200 billion in cash. It is amazingly successful. These products field to me rather more incremental no new concept. Forward to this precious entity, sticking my fingers straight through the machine. Manus you were writing down a few notes the alibaba stor y, that takes you back to the china story. Jon apple is a big china seller, isnt it . More than a quarter of its sales are there. It is a recorder in china. Andg part of the story apple share price effect that in a lot of ways. The technology i love i love investing in technology, but it is rarely as good as the stuff apple does, its applications have gone bonkers. Stacks of private companies, a billion plus now in the united states, even in the u. K. , coming in well over half a billion pounds, valuations for companies with revenues in futures. We are seeing startups in pharma, as well. It is a bubble. Francine thank you so much. We will see what the apple event brings in San Francisco. The event kicks off at 6 p. M. U. K. Time the only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Francine welcome back to the pulse, live from london. Manus we just got breaking news july Industrial Production falls by 4 10 of 1 . The estimate was for a growth, so we are seeing a contraction the question is it momentary, transitory . Not exactly a germanic the question is how long will this day . Francine lets bring in jon moulton. We are looking at possibly the invocation of high Interest Rates. Productivity is not great, industrial output is falling. We arent sure whats going on to war and an Interest Rate hike. Jon well, the argument for high Interest Rates is quite interesting. A low Interest Rate eventually causes a lot of damage. No Interest Rates mean you dont have a siv, something forcing you to loosen Bad Companies to be forced out. So why do we do the high