This is the pulse. Sab miller shares have sure this surged this morning on back of the news that a Anheuser Bush has made a revised offer. Two previous proposals were rejected. For more we are joined by our chief business correspondent. Matt, want to go straight to do. Saidwe sat down onset, he where is the stock trading . Miller stock is trading below. Surprised byte that, actually, because it seems like this is a deal that is coming together. We had a statement from altra sabmiller 20 of saying that they would like the board to come to the table with ab inbev. A lot of investors are not convinced by the. Manus they have offered all cash on the table but there is a quirk in the deal as well. Matt there is a weird twist. They are offering 41 of sab shares in exchange for sort of funky restricted stock in ab in bev. What this is is an effort to try bevco over altrea and with a structure that is more tax efficient. Clearly, this is intended for those two shareholders. A normalid say, should asset manager or anyone else want to take this restricted stock, that is their right to do so. I think they will take the cash because the cash is worth more. The restricted stock is only worth 37 pounds pressure. Per share. Manus lets bring in our guest, kevin. It has been a heck of a deal for dealmaking. This could bring 60 billion worth of debt in terms of bond issuance. What do you make of the proposal . What you make of the differential in terms of price . Kevin clearly the deal is good news for the markets and the markets need good news at the moment to stabilize them and increase m a activities. Even if some of the reasons for that increased m a are in fact we are in a low growth world where companies are struggling to grow bottom line. And we also have deflation. I think it is good news for the market. The price differential clearly indicates that there is still some doubt as to whether this deal will get completed and what price. The bond issue is a very interesting one. It will not be as easy to get a big bond issue away in this environment as it might have been a few months ago. Clearly, bonds will have to be priced favorably. Bond issuel, this will be bigger than what verizon did. Dollar has been strong. Is that part of the driver of this deal . Kevin i think so. Manus or is it about world emanation of beer World Domination of beer sales . And bottomline growth in a low growth and lowinflation world. It is about the slowdown in emerging markets, the stronger dollar, it is all of that. Manus it is interesting that sab came out a week earlier with a trade update. They specifically focused in on africa and indeed the emerging markets which is the deal for ab inbev. Tell me this, where are we on the trending business . We are going to see some competition over this. They are going to create the beer monster and the world. We heard the south African Pension Fund warned about the concern for them about this level of monopoly. Matt i think every antitrust agulator who can get piece of this will try to. Beer is a consumer product. I do not think whether it is wouldcameron or trump want to be seen as allowing the price of beer tofor joe sixpack to go up. These are global regulators. What is the brazilian or venezuelan antitrust regular think of this . Those are the questions on both sides of the deal are going to spend many, many billable hours trying to answer. Manus i love the word billable. Every lawyer, get ready. Kevin, youre going to stay with me. Dealsampbell, head of reporting. Lets turn our attention to asia. The bank of japan has kept his stimuluscord on change. Despite this second a recession could hit japan. Kuruda,governor, defended his decision. Good to see you this morning. What do we take away, because kuruda is saying they will do it every takes, im paraphrasing, to get to 2 . What does that mean . He seems to be pushing back somewhat against a further easing later this month of the october 30 meeting. Initially, there had been a thinking that there was, among economists, though there was going to be a further easing at the end of the month. Now his comments seem to be walking back a little bit from that, indicating that it is very different situation than it was last year at this time. Jodi, absolutely. A lot of people are speculating it is going to be the next meeting that we actually see the easing. Shinzo abbetzu in our offices in new york. Aggrandized in terms of abenomics. Abe appoints a new demographics minister. This is just this morning to slow the population there are many issues facing. It is structural change. That is the one thing the world wants to see is happening. Where are we in that debate . Jodi well, so one of the thing the governor said in this press conference that ended a half hour ago was that he expects the wage growth that is going to be necessary for the growth that abe wants to occur. If that happens, that is going to be one of the big arrows in abes quiver. The other thing that could help a lot is the talks that ended in atlanta on the transpacific trade agreement. Be ratified. L to if that happens, that could help a lot. It would allow abe to go ahead with agricultural reforms and could extend the export market. That will not be in immediate source of growth. It will take a while for tpp to be ratified. Manus thank you very much for bringing us that update. Dollaryen trading a little bit stronger there at 1. 2002 this morning. In the meantime, the imf has cut its Global Growth forecast for this year. And next. Fighting contagion from china slowdown. Today, we learned that chinas efforts to bolster their fragile currency may have come at a cost. The countrys Foreign Exchange reserve fell by a record 180 billion after central bank sold off dollars to support the yuan. Lets bring back in our guest. When we look at these stories this morning, one is a block western deal getting done. Two is about Central Banks. Will delay until march of next year. That seems to be building in case. Bank of japan on hold for the moment and the bank of england restrained by the fact that the fed has not gone. What you make of where we are in this centralbank debate . Kevin we are in a very difficult place for Central Banks. Despite many years of zero Interest Rates and spiced and world aree. , the struggling from an oversupply of goods and services in certain areas. That has created this global savings glut which is putting downward pressure on yields. It is difficult for central bankers and Monetary Policy to solve the worlds problem which is one of lack of demand. Nonetheless, Central Banks need to keep doing what they are doing. They need to keep Monetary Policy extremely connotative extremely accommodative. So, they need to continue to do their bit on Monetary Policy. Manus my simple view of this is, if the ecb and bank of japan and china are ready to do more. It should be a boon time for the next six months in equities. Or is that naive . Between morettle stimulus and the reality of contagion from china and the haveown that the imf warned. The holy grail is not there. Those are the phrases from the imf. Markets for the last two years have been boosted by liquidity, centralbank q. E. As well as the effects they were very cheap. The difficulty now is how much easingn centralbanks boost Economic Activities at a point where markets are more fully valued . Key driver for markets has to be more earnings related and growth related and less about central bank liquidity. Nonetheless, if such a banks remove liquidity to sooner do not keep creating it, that is going to be problematic when the next growth kicks in. Manus these markets are just completely and utterly addicted to q. E. You are going to stay with me. A lot more to get through this morning. Couple ofbring you a these top headlines we are getting through from norway. We are waiting to know just exactly where we are from a fiscal point to do in regards to the norwegian Sovereign Wealth Fund. So far, the norwegian finance minister says they are going to 0. 8 . E wealth tax to they are cutting income tax to 25 from 27 . They have negative rights under huge pressure from declining oil revenue. They are lowering vat. And they are lowering the tax rate from 27 to 25 . Lets have a look at the norwegian krone against the dollar. We are waiting to get the breakdown in terms of where they are. 6 at theaining at 8. 2 moment. A little bit of a move on the norwegian krone. We will bring those headlines to you. Lets get you up to speed with thisest of our pulse radar wednesday. Tesco has reported earnings that beat analyst estimates. The troubled Supermarket Chain saw operating profit in the u. K. In ireland fall 69 . But that was better than the 130. 5 Million Pounds that were anticipated. The ceo also warned never say never. New chairman of vw says he intends to begin recalls in january. Dded that he hopes that all cars will be repaired by the end of next year. Ioil is headed for his longest rally in six months. Fell in theiles worlds biggest consumer and the Energy Information administration, they increase their forecast for 2015 global oil demand. Samsung shares have surged after profit Beat Estimates on higher component sales. Chips, displays have become central to reviving the companys fortunes as galaxy smartphones have struggled to compete with the iphone. The weaker korean currency helped to boost component sales. China may be losing its interest in taco bell. They were expected at 10 jump in china sales but they only rose by 2 . Brands plunging. It has revamped its menus, but it is still struggling to recover from avian flu outbreak. Radarose are your main points. Lets tell you what else is coming up on the pulse. Ceos deadline day for vws to tell german regulators how he plans to get the company back on the road. We are going to discuss that next. Manus volkswagen says the of 2. 8 millionny vehicles will start in january. Lets turn our attention to hans nichols. When we hear mueller talking you read the bloomberg story and it is about the opulence of what this brand does when knitting gauges with it buyer it engages with buyers. Will it be cutbacks of extravagances or job loss . Xi Jingping Hans volkswagen recall that investment in r d. Is insisting them a lot be any job losses. You get a slightly different view from the ceo. Hes clearly warning of pain. Here is a quote. Review all planned investments and what is not absolutely vital will be canceled or delayed. I will be completely clear. This will not be painless. Volkswagen as a company has way more employees than toyota which roughly has the same sales, 10 Million Units a year. Volkswagen has 600,000 employees. Potential areas of cutbacks with they arets thinking of investing another 1 billion in mexico. That could be off. Executive bonuses will be difficult to push through. The Labor Union Leader was talking about how the will not be personal cutbacks before executive onus is our trimmed. And then you look at what they spend on r d, 17. 4. Their r d budget. You mentioned opulence. R d budget is the same as ford and General Motors combined. More than apple and google together. So clearly, they spend a lot on r d. Theyve always one to move forward. It is a company that had incredible growth. Now they will have to trim their sales, take a look at everything they invest in. Manus thank you very much. Six years as a journalist, im trying to understand what opulence really is. Hans, thank very much. I want to get out to mark. Response from sabmiller to the inbev offer. Cash offer. Unds very the inbev offer substantially undervalues the company. Board will meet formally to consider the proposal, but message seems to be, you need to offer more. As you know, they have already rejected two offers to the tune of 38 pounds and 40 pounds. The first formal offer from ab 44 v had them at 42. 15, a premium to the sabmiller stock price on september 15. Has said this bid substantially undervalues the offer. It says there is no certainty and offer will be made. And it said inbev has made opportunistic conditional proposals. I think the most interesting thing about this is the current share price because the market seems to take the view of sabmiller, because shares are at 37. 04. A company iswhen trading well below and offer price, it tells you investors are not believe right now that ahead. Al is going to go but this deal substantially undervalues the company, so says sabmiller. Manus thanks for giving us an update on the beginnings of that deal. Lets focus here in the u. K. David cameron, hes going to set rules changes to planning later today to encourage House Builders to deliver more homes to young people. In a speech to the conservative partys annual conference, mr. Cameron is expected to say, i believe we can make this era, a defining decade. The turnaround decade. That is the branding the tories are putting on this, one which people will look back on and say, that is the time when the tide turned. Lets bring in bloombergs London Bureau chief simon kennedy. The branding at its best. He wants the decade to be the decade he grew and he delivered something for those people who are living with their parents. Simon and building his legacy. He won the election in may. Hell step down by 2020. He is looking to flesh out his thecy and the things government has been slow on an encouraging homebuilding. He is going to try to write that wrong and in doing so, hoping to add to his legacy. Manus in terms of the proposal, 200,000 starter homes. Lets bring it up. These are the House Builders. What i want to know from you, House Builders had a phenomenal run in 2015. When you hear this kind of proposal, and it is a proposal, talk, deliver is different. What does it mean to you when you hear this proposal that has come through this afternoon . Kevin from a market perspective we have been positive on House Builders for some time. There are strong tailwinds to the industries, whether it is low Interest Rates, improving credit and lending, whether it is improved activity as was her as a result of consumers having more confident to invest and buy houses. Those tailwinds of changing anytime soon. But as you say, House Builders have already enjoyed spectacular gains over the past 12 months or so. Therfore, those rate of gains moving forward will be more muted. Low Interest Rates are here for a long time, and consumers are benefiting from modest wage growth. Manus it is about dealing i see the line from cameron. Next five years we will show the deep problems in our society are not inevitable. That is quite a warning shot. Elsewhere in the speech, he speaks of the workers in their 20s and 30s waking up in their childhood bedrooms. Hes looking to activate the economy of a generation that is, the millennials feel they have missed out on whatever recovery there has been since the 2009 recession. The millennials feels they have missed out more than most. I dont know if they are all running for David Camerons job. Lets listen to the defense of theresa may on the integration concern. There are concerns if you have uncontrolled immigration, that can affect wagers at the lower end of the scale. That has a real effect on people. Also, i think the points she makes that we have to train and skill our own People Better so that it can take on the jobs that are dynamic economy is creating. Above all, where i agree with her, is look, if you want to build a cohesive integrated company, which we do, yes, you need immigration. And britain is the old one of the most successful multiracial, multiphase democracies anywhere in the world, but you need to do it on the basis of immigration, yes, but controlled immigration. Manus this is timely, because the possibility of what he has got to deliver in his discussions with europe, the pressure is beginning to come to the four. Are two things going on. One is the european debate. Many in manchester would have liked more details and what he wants from europe. Brussels would like more details. There was a bit of jostling of the Prime Minister in the hopes that the debate will come to the front and center. Who knows what he might have up his sleeve . And the second one seen here is one of leadership. Theresa may coming from the right on immigration. George osborne on monday speaking about his vision. Manus im going to have to cut you off. I want to bring you some breaking news. Abu dhabi said to explore asset sales after slumping oil prices. Saudi arabia, we note that the junctions are what they have been doing. Abu dhabi is set to explore asset sales after a slump in oil prices. Thes some data across in terminal on u. K. Industrial production. It has risen by 1 for the month of august. Analysts surveyed by bloomberg. 3 increase. A on the headline basis, industrial output has beaten expectations. A rebound experienced boosted by gas extraction and the best month for transport equipment since 2011. Total production increasing by 1 . Fasterturing gaining than the predicted. 5 . Day before the bank of england releases its latest Interest Rate decision, and policymakers are expected to keep borrowing costs at a record low. Lets move on to the markets. Quite an astonishing few hours. The country world indexes rising for a sixday, its longest winning streak since the end of april. Asian stocks are rising for the sixday. And european stocks are rising the longest day, winning streak in four months. The biggest news on a macro level came from the back of japan. This is dollaryen. The yen rising after the boj decided to keep Interest Rates unchanged. What is interesting is that 2 3 of economists surveyed by bloombergs do believe the boj will loosen policy, add to their Bond Purchasing Program at the end of october. That is when the update their outlook for inflation. So the yen is rising. Crude oil is rising for