Francine welcome to the pulse. Manus i am manus cranny. We will bes aiming to Peter Altmaier we will be speaking to Peter Altmaier. Francine there is more evidence of the china slowdown this morning. 8. 8 in august. That is the most since 2011. Nick bottoms is standing by with more. What is driving the downturn . Whammyhis is a triple for a lot of these industrial companies. The stock market crashed affected in a very bad way. A lot of their investments and demands are low for a lot of these drivers of the old economy. You want the valuation coming home to roost. A lot of these companies had lending denominated in dollars. Their debt becomes more expensive. You are seeing a confluence of factors and the data showing how hard it is heading chinas industrial companies. Manus where we see that evidence. If we look at the broader economy, we have had a raft of measures. Drawing conclusions about where we are, whether it is a hysterical slowdown. Or whether it is going to be a glide lower. The economy is still growing. The government has set a 7 target. That is still pretty good. How well the government manages this slowdown. Go,ecently as if he is growth was at a 10 rate. From that rate it is a significant slowdown. What does that show . Is a going to put pressure on the government to level the Playing Field for Chinese Companies with their International Competitors . Chinas benchmark rate is more than 4 . There is a lot they can do to make Chinese Companies more competitive in the international arena. The question is if todays data is going to put more pressure on them. Francine nick, thank you for that. Says he is not too worried about the economic slowdown in china. He is going to keep investment in that country. We are still opening a few stores in china. Less than before. This year, we opened three new locations. One in cmn. We will be more selective probably in the future. Markets, i am that general consumption of chinese consumers but mostlylocally, mainland china, a little more compensated. Lets bring in rom in the case of lets bring in ramin nakisa. Are droppingofits the most in four months. What is your perspective on the china perspective at the moment . Ramin we are concerned about the u. S. We like europe, japan. The biggest impact locally is in the disinflation shock that is spread around the world. That has many consequences. Look for the best value are places we have low inflation and a high credit impulse. The two places we find that is destined to places we find that our europe and japan. Francine are you putting the fact that commodities are down to the fact that can that that china is consuming less. It is very resiliently negative. The slack in the u. S. Labor market which is put pressure on inflation. Inflation has become more sticky. It is probably here to stay for a long time. We have change. Low inflation is here to stay. It has many consequences. The percent is lower. 3 is lower. Open economies which are exposed to inflation. Euro. Issie versus the manus you mentioned the euro and the issues. We are going to get an inflation reading and its probably going to be flat. Ecb. Does this leave the thatsare unwinding people are wondering why can we they will doeuro . More qe and they are will they will do it before the end of the year. We think they will expand the qe program. Side, we thinkte it is going to be an expanded asset. What are they going to buy . The insurance that we have portrait on how much they are buying. Francine do you think it will be Corporate Bonds . Ramin i think it is a possibility. Very positive for the european credit market. Manus if we look at Christine Lagarde and her comments this morning, preparing to trim the 2015 growth targets. How bad is it on the global basis . Citigroup talking about 55 . A global recession. Is it priced in . We have had significant moves in the s p. Ramin look at spain and the growth. Credit impulse. If you look at the ecb lending, that leads the gdp very strongly. The credit impulse in europe is very strong. We think that is a big positive for risky sectors like banking. Do you think pricing growth in europe is stronger than what people are led to believe. If you look at the growth we see , it is led by a weaker euro . And lower oil prices. These are not here to stay, especially in the euro. Ramin that is especially true. What needs growth is the impulse. It is increasing very quickly at the moment. That is what people should be looking at. That is what equity markets are not looking at the moment. There is a possibility that we could see a decoupling between the u. S. And europe. The high yield store in the u. S. And the exposure to the Energy Sector comes home to roost. We expect to happen quite soon. It will pick up quite briskly in the Energy Sector. Manus in terms of emerging markets, you said we have worse to come. Ramin we think so. There are currencies that could devalue further. A currency to violation. The credit situation could get worse. Turkeys a lot of countries like turkey have massive debt. Ramin, thank you for coming. Heres what else is on our radar. Manus a landmark vote in spain. One 72 seatsarty out of 175 parliament seats. Could independent parties failed to gain a majority of popular votes . He seeks to regain policies attacked by many academics as disasters. Will outline the oppositions economic plans later today which will involve a radical review of the bank of england. Manus shell will cease further expiration off the shore of alaska. Challenging Regulatory Environment is a reason for that decision. Francine six french jet fighters have targeted and destroyed Training Camps in eastern syria. It is been identified by surveillance it had been identified by surveillance. Manus the company admitted cheating on u. S. Air pollution tests. Marcus muller says the carmaker will implement the strictest compliance to government standards. Francine that brings us to the theash to the quite twitter question. What should the new ceo do during his first week . Francine local back to the pulse. Live from bloomberg tv and radio. Lets get straight to mark barton. Mark welcome back manus. Hares continuing to slide glencore shares down a percent this morning. Shares down 8 this morning. We had a Goldman Sachs note saying measures announced by glencore to shore up its Balance Sheet will not be enough. Both measures slashing dividends, selling shares on friday. It is looking into selling a part of its agricultural this is. Coming in close, this is a onemonth chart. If i were to show you a chart going back to make 2011, which is when shares were sold to the public, it would be a similar chart. In the month alone, shares that glencore have fallen 39 , since the ipo. Shares down 83 . Shares never closed higher since the first day of being sold to 2011. Blic on may they are a penny stock now. It is a quite extraordinary fall. Linked to the concerns about the china economy. Linked to concerns about its financial viability. Manus mark, thank you very much. It is about their ability to make it through with these sliders. Lets was gear and talk politics. The proindependence party. Francine 40 of the popular vote in the election counted as effective vote. Leave the does this independent vote . The leader of this both saidt campaign this gives them a democratic mandate to go ahead to madrid and push for independence. They did i get the majority of the popular vote. 40 versus 48 versus the percent. 50 . Rsus they are going to have to reconcile those differences. This is a party that doesnt want him as a president. Your questions over that. Then theyre going to have to form a government. The proindependence group, 125 page plan that will include setting up a central bank. Moves on those areas are going to be attacked by the Constitutional Court in madrid if they happened before the election which is where focus turns to now, because we are likely to see a different government. The polls suggest that Mariani Malloy will not hit the best Mariani Rajoy will not win. Guy we see the political will be undeterred. What are the economic implications. Pieces seen some of your. European producers present in that region. What are the economic implications at this thats as this political wrangle continues as this political wrangle continues . We spoke to a number of people over the weekend, proindependence who have taken their money out. Those banks have come out and proindependence poses a huge economic risk here it risk. Economy. Lion euro if there was independence, it by no means guarantees that catalonia would be up to use the euro backed by the ecb. There were thousands of Foreign Companies that invested. The region since more taxes to madrid then he gets back. It would have to borrow money from a dread because it has been closed out of the market. The pressure has eased on spanish bonds. Postelection is where were going to see a clearer picture of where things go from here. Tom mackenzie covering the election force. Ramin coming up, this interview francine we speak to the speak of chaff of Angela Merkel. Peter altmaier, he is coming up. Manus welcome back to the pulse here it streaming on your tablet, phone and bloomberg. Com. Francine to a great interview. Having marked a decade as chancellor, as a merkel has had her share of crisis to deal with. The decision of refugees, greece and the imaging scandal. By mrs. Hols is joined merkels chief of staff, Peter Altmaier. Hans thank you for joining us. Lets start with volkswagen. It is in the news. What do you drive . Would you envision yourself ever buying a volkswagen. Peter i have driven several cars. Audi, all of them. I can mention driving a volkswagen. I still believe it is a high quality car. Is a kind ofacing. Nvironmental issue that means how honest the Car Manufacturers have been with their clients with regard to standards imposed in order to protect the environment. We insist that volkswagen has to verify in every single aspect what was going wrong, why was a going wrong, how can the damage be repaired. I believe the german cars are. Xcellent quality they are environmentallyfriendly cars. We cannot afford the lightest out, whether we stick to the commitments that have imposed by law in the several countries where we are exporting. Hans do you suggest that this is bigger than volkswagen . Peter know, i suggest that german cars are the best worldwide. Hans do you think it is going to damage germanys brand . That is why the competent minister in government, why the why we in the Chancellors Office are working hard to contain the damage. How can we contain . By clarifying it. By telling the truth. By taking the appropriate measures. The ceo of volkswagen has been replaced. Thereression is the guys have been shocked. Now they are understanding. There is a perspective of individually of individual ability. Hans when we look at what the german state has done toward Diesel Technology, they have favored it. Have they gone too far . Is germanyfort behind the ball on electric . Peter ive been told all the time Diesel Technology has some advantages. I believe this is true. These advantages have to be in line with environmental requirements. No doubt about it. Me it is possible. Experts told me they can repair the problem. I am optimistic. Hans what about electric vehicles . What is going to be germanys answer to elon musk . Year. I met him last an impressive guy. Tesla car is an impressive car. I would be very pleased if german carmakers would be up to produce an e car better and cheaper than elons car. This must be possible. Hans Angela Merkel has stick a lot of her reputation on being a climate conscious, environmentally friendly. Peter we are committed to climate protection. We are fighting against climate change. We are fighting for clean technology. That we areclear continuing that path. We are pressing for a good result. Convincedheartedly that Angela Merkel will be seen by her colleagues as a part of the solution. State beenhe german too cozy with the Automobile Industry . Peter we have been interesting in a good working Automobile Industry is a part of the Industrial Base of germany. At the same time, we made it clear that the industry has to adapt to the environment of challenge that we are facing around the globe. Crisistimistic that this will push us to promote even more environmentally friendly policies. Refugeeifting to the crisis. Merkels latest popularity seems to be sinking. Does she risk losing support over this . Is he out of step with the public . Peter Angela Merkel has been a chancellor for 10 years. She was leading popular to polls for more than two years now. ,hen there are marginal changes it starts worrying us. We are confronted with a challenge. Syriaefugee crisis in that exceeds all expectations. This is a crisis where we have to take our responsibility but other countries have to take their own responsibility as well. That has to bege taken on by other countries worldwide. By arab league. By our american friends. By the europeans. Germany is taking and assuming its responsibility. Farave accommodated so several hundred thousand refugees, as a part of our humanitarian responsibility. Hans your counterpart and hungry jews germany of german imperialism your counterpart and hungry accused germany of the german imperialism. Peter we have to cultivate because a number of countries are confronted with a challenge. ,t is true for greece, hungary macedonia and others. We will not find solutions by blaming each other. The only way to find solutions this is why we are in favor of a common european regime that includes a common asylum system. , we aretime being cooperating with all of the countries in the region and know to make it possible to have to help the refugees without losing control. Hans you have lost control of the process early. Have to reimpose border checks. Did merkels initial response miscalculate . Merkels sponsor was given an inner environment where hungary asked european partners. We have responded to that. Hans she didnt miss underestimate the way her response would be received . Problem was emerged already. During summer, every day thousands of refugees arrived increase. They moved on to serbia and macedonia. This is something that did not start at the moment where Angela Merkel said we have to respond to our humanitarian obligation. No, it was something that emerged already in early summer. It will continue to be a challenge for some time. Hans when we get to the source of the problem, it is syria. Mr. Weidmann there puking mr. Vladimir putin is an new york this week. Where aenvision a role side stays . Assad stays . O situationare in a where conflicting parties are destroying syria. We have to stop isis. We have to come to a more coherent solution in the region. We need talks. One of the most important talks today is the top between american president barack obama and russian president putin. Enroll all partners in that region, saudi arabia, iran, lebanon. We have to see what we can do to that we willle have a perspective in that region as well. Hans you dont see putins escalation as a problem . Peter we have always insisted on a coherent solution. Instead of blaming each other, we should use the possibilities for talking to each other. This is what obama and mr. Putin are doing today. Lets see what the outcome will be. Us we will wait for those results. We think he for you time mr. Altmaier. I will send it back to london. Hans, thank you so much. Hes joined by Peter Altmaier. Manish our top headlines. More evidence of a china slowdown. Industrial Companies Profits line a plane percent declined 8. 8 . The most since at least 2011. Goldmining earnings plunge 65 percent while all and gas profits plunged 67 . Partythe main separatist one 72 seats in the 175 parliament seats. Prime minister roys party trailed. Manus Jeremy Corbyn welcome thomas to advise his party. Attacked by many academics as potentially disastrous. The oppositions economic plan later today. A radical review of the bank of england. Francine we are at the start of an important week. A host of fed officials speaking, including janet yellen. Lets second with mark barton. A lot of money flowing into your. Flowing into the yen. Again. T is rising it is a risk off so today. China industrial profit report. Have a look at the yen. This is the bloomberg correlation index. This is the yen against nine developed tears. It is rising today. This is over the last six months. Six fed officials speak this week, including janet yellen. Last week she paved the way for a rate hike this year. On fridayjobs report before the fed meets in october. This is a nice chart. , made this up for you especially since manus is back. Bond market going back to beginning of this year. I have chosen it, because proindependence parties in catalonia received less than 50 of the vote in a local election. Most popular region. From the beginning of the year through july, the green line, the italian yield was higher than the white line. The spanish yields since july, you can see the italian bonds market has outperformed the spanish on market. The spanish yields high. The italian yield lower. The vote over the weekend would hasten catalonia. The bellwether when it comes to growth this year. The economy grew the fastest pace in eight years in the Second Quarter. It lessened the haziness of the succession of catalonia. The secession of catalonia. Volkswagen has a new ceo. He was announced on friday. This is a onemonth chart of the preferred shares in the last month. Down by 40 . Euroseek, 27 billion walked away from market value. Autoloomberg world manufacturers index had its worst weekly last week since made 2012. Volkswagen shares died. You for that. Vladimir putin is in new york today for the ninth nations General Assembly