Mark welcome to the pulse. I am mark barton. Check out what is happening with european stocks. The stoxx 600 is rising for the first time in five days. When it comes to percentage terms, there is the stocks to europe 600. The u. K. 10 year yield is rising. Or its six consecutive day that is the longest stretch since november 2015 since the u. K. Referendum, u. K. Bonds have been the best performing sovereign indices according to bloomberg sovereign bond indices did the dollar pound pounded a little bit lower. A big Employment Data big implement data will cross the test will cross the bloomberg. That is big for the bank of england. Brent crude is up today. We have had an interesting day. The iea saying yesterday the glut will stretch into next year. Stockpiles increasing by 1. 4 Million Barrels according to the ati. Today we will hear from the eia data. It is forecast to show that supplies rose by 4 Million Barrels. Lets get to bloomberg first word news with nejra cehic. Nejra monsantos Management Board is set to support an improved offer from bayer. According to people familiar, final approval is pending. According to people, the German Company is going to raise its shareto about 129 per and double the antitrust break free break fee. Both companies have declined to comment. President obama has criticized what he called Donald Trumps adulation of vladimir putin. Path part of a broader after the obama after obama spoke at a rally for Hillary Clinton in philadelphia. The ceo of one of the worlds biggest goods makers says britains decision to leave the European Union happened because the citizens felt let down. On aver ceo gave his views more inclusive economy. Many have not seen the incomes oh up for the last have not seen their incomes go up for the last 20 to 30 years. Not as much a safe a vote against the Current System as what is according to some people for brussels or immigrants or other things. Nejra sellers of luxury homes in london are lowering prices following the brexit vote as Political Uncertainty discourage buyers. Cuts on a prime homes in the u. K. Capital jumped 75 in the 10 weeks followed following the referendum. Global news, 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. I am nejra cehic and this is bloomberg. Mark a year ago, Jeanclaude Juncker told his audience there is enough there is not enough union in this union. The european commissions president has doubled down on that message in his annual address. Francine lacqua is at the European Parliament. Mr. Cine, how much has juncker said about brexit today . Francine he has touched on brexit. He reminded everyone the same political line that there will be no cherry picking. This is not an a la carte menu that they cannot decide to curb immigration and have access to the single market. This the first time that Jeanclaude Juncker and just parliament postbrexit. Juncker addressed parliament postbrexit. He is trying to regain a little bit of credibility by saying i am sad, this is not the end of the world, but it is an introspection. Markets very much on the frailties of europe, on the fact that it is an existential question on whether the European Union wants to integrate more or whether it disintegrates. He is very cautious. He talked a little bit about brexit. He reminded article 50 is not triggered yet. He says again, the eu will stay together, but it was not as optimistic as i thought it would be he was very cautious. Mark did he say anything about fiscal spending . Francine he did. He announced a couple of funds. This is very broad brushed. The details will be unveiled in a series of new, new sconces today. News conferences we are hoping for more details and coming weeks. What he wants to create is a defense fund. How much money is in it . We do not know yet. What exactly this fund will do is unclear. Negotiateand they can bigger orders for planes. You can get better prices on some of the deals on the materials they need to buy. He put in place the juncker plan. If individual countries are frail then it makes it difficult for the commission to be strong. There is a diplomat that put it well yesterday telling me the commission can only be a strong as its Member States because it overviews but it is not an executive arm. It cannot force countries to do anything. Climate change, digital and the fight against terrorism. Mark francine, thank you. Lets introduce our first guest. Hatefullyully mark he oversees Investment Strategy for 2 million. Thank you for joining us. You pose the question what might it take to see a potential bright side for the must to the much discussed brexit vote . Answer . Wing this the i think you touched on interesting subs subject. There is a moment where we do have to look to the positive side. Does the u. K. Have the opportunity to move in a positive direction from some of the problems that we have seen in the European Union. In switzerland, they chose not to go into the union. They have increased their competitiveness. They are an open society but they have done things like deregulate in key areas. Are there things u. K. Can use to improve its Competitive Position in the world . Mark in many of these countries, you have to accept some rules which may not be so appetizing for those prebrexit tears. That is exactly right. There is freedom of movement and compared to the u. K. , switzerland is very parsimonious and use of debt. In the use of debt. Right now there is this moment to change but as you said, this issue around the Free Movement of people is something that is going to need to be resolved. Over the near term, there remains a lot of uncertainty around what brexit mark the initial uncertainty do not last when it came to markets. He saw the initial reaction in the days after, but as we have seen, orchids have rebounded and then some. Mark h. you are right if youre looking at the equity markets. The pound for the brunt of it. That is where you are going to have to look to know the fate of u. K. Markets as we move into the fall, because if the pound weakens further on policy action or uncertainty, that can paradoxically be good for things like the ftse 100 which gets so many of its earnings from outside. Mark versus the dollar as low as 128, we bounce back to 132. It seems to have found a level for now. Where are we going to be in six months . Mark h. we could be seen this we could see it go back to the 128 level in six months or so. It is worth noting that we dont see another explosion in the dollar from here as well. Mark it will be interesting. Explosion meeting . Rise. sorry, meaning a mark is that linked to the fed . Mark h. that is linked to a variety of things. The dollar rose so much and there is uncertainty in the u. S. Still about the u. S. Election. Mark and uncertainty about the fed as well. One hike this year . Height mark h. we see one hike in december. U. S. Data is very strong. It is this global uncertainty which as we have heard from the fed is making this test making on the making them err side of prudence which means you dont hike rates when the economy is doing well. Mark just get on with it. It is 25 basis points. Why are we becoming so fixated on such a small move, mark . Mark h. we have come out of apo of exceptionally come out of a period of exceptionally low volatility. Mark we are not talking about talk we are not talking about moving to 3 . It is 25 basis points. In the anyone rate hike month it is done in, you are right, that alone is not going to determine the future of the world economy. The key thing here is the people of project out, what is the mindset of the fed. How are they going to think about this environment . ,ecause as you know, fed policy centralbank policy around qe and other monetary instruments are at an Inflection Point where they are going to have to change. Mark we are going to talk more about Central Banks in a moment. Mark haefele stays with us for another 20 minutes. Plenty coming up including how is the u. K. Economy faring in the wake of the brexit . We will bring you analysis in the latest job numbers. Serving up a deal as bayer is said to up its offer for monsanto. Well ask if investors will bite. In two months before the u. S. Goes to the polls, we will be live from new york. This is bloomberg. Mark breaking news out of china. Bolstering evidence the nations growth stabilization does remain intact. Aggregate financing 1. 7 trillion. That is to 20 billion for the month of august. Yuan. An loans 947 billion the economy is showing first signs of strength, factory output, investment retail sales all exceeding economic estimates in august amid a boost from the property markets. Is something authorities are keeping a close eye on. I am mark barton. Lets get to Bloomberg Business flash with nejra cehic. Nejra monsantos Management Board is set to support an improved offer from bayer according to two people familiar with the matter. Final approval is attending buyers vote. According to people earlier, the German Company is going to raise its offer to 129 per share and the double its antitrust rate fee to about 3 billion spokesman for both companies 3 billion. Spokesmen for both companies declined to comment. It buys back unsold watches from hong kong. Europe suffers a decrease in tourism. Estimates. Analyst a fallen operating profit includes 65 million euros. Its target. Bandoned the space the company says it is no longer forecasting annual Revenue Growth at 6 , instead it says it has an ambitious goal for growth. Its firsthalf earnings beat analyst estimates. Warren buffett had 1. 4 billion wiped from its fortune after wells fargo fell yesterday. , atshire hathaway fell 2 the same time wells fargo lost its position as the worlds most viable bank to jpmorgan. The share price has been hit with the revelation that employees opened more than 2 million accounts without clients approval. Mark Financial Markets is wiped up showing signs of easing today european stocks advancing for the first time in five days. Mark haefele at ubs. Alm over the summer some are saying this calm good this calm could lead to periods of volatility. What has been the driver . Mark h. the calm itself was historic in nature. So little volatility. In part because of some of the things you have been mentioning, the response to brexit from the bank of england made people say ok, at least mark carney gets it. You use this centralbank playbook of more monetary stimulus when you face issues that could rise up in a nation. We saw it china plying stimulus and having an impact. That was one of the things that really calmed us down. Now we are seeing the fed still on hold, but they try to reassert their dominance in the picture every once in a while. What shadow that was a little bit of questioning about the fed, but lets not read too much into this. There is people back from vacation. The volatility has risen for a few days. That may lead to some d risking in some portfolios, but given the strength of the u. S. Consumer, given what we are seeing in china, we still think you want to be in equities over bonds. Mark is a d risking in some portfolios apt right now . Is that how one should be looking at it . Mark h. when you get these periods of stock markets selling off more than 2 , people Start Talking about the risk, parity models. If people want to bet on this low volatility lasting, then some of them will be risk. We are trying to look a lot of the political risks, some of these shorterterm volatility moves to focus on the earnings and the continued centralbank policy. Mark five quarters earned five quarters running, we have at negative earnings in the u. S. Where are these earnings we keep on hearing about . Ink h. we are overweight the United States because we think in the second half of the year, you are going to start to see yearoveryear some Earnings Growth in the United States. Why is that . The devastation wrought by the Energy Complex as that collapsed last year sibley cannot be repeated this year. Mark mark haefele, he stays with us for another section. Investing in a world of lower negative rates. We are going to get more thoughts from mark haefele. This is bloomberg. Mark lets get some final thoughts from mark haefele, global chief Investment Officer of ubs. We discussed Central Banks and there has been a thought some of the reasons why some say we have seen the end of this calm. Some banks are be assessing the efficacy of stimulus, looking at the boj ahead of next week. Given last week are we reaching the limits of stimulus . Of easing measures from the worlds leading Central Banks . Mark h. if you look at what the markets are telling us, they do not like negative rates because it impacts the Financial System through Financial Intermediaries like banks and insurance companies. In that sense, given the importance of financials to global markets, you can say for the negative rates are going to be deflationary. That can be managed with centralbank language and other policies, but there is this increasing belief that negative rates are less likely to be used , and that the back end of the curve may start to pick up. Rates are going up. Is been is in japan, it a real lead up to the boj meeting, all sorts of rhetoric coming out. We have seen a big pickup in the yield curve, havent we . The boj seems to have achieved something by not doing anything. Mark h. i dont think we can see their aim yet. There are many people hope it is big. The boj will react with large stimulus measures. It is really unclear. The comments from kuroda and others seem to be designed to keep us guessing. Mark we will learn more next week. Overweight emergingmarket equities over swiss equities. I was reading earlier, emergingmarket equities and currencies worse selloff since june. Is this a pause in the emergingmarket rebound we have seen . Should come as no surprise but emergingmarket equities are volatile. They are more volatile than global index indexes. There is more room for emerging markets as they have been hit so hard in previous years and we are starting to see the earnings momentum improve. It is at the beginning of that cycle in the emerging markets, but that is something we place a lot of weight on. Mark d have preference . Countries . Mark h. and our global portfolio, we do not distant wish that much. In the emergingmarket or asian portfolio, in particular, we have had overweight in china and india, where again we are seeing in india, cps growth. In china, we see the stimulus efforts continuing to play through into the economy. Mark mobile Development Desk have we seen the have we seen the low for yields or not in sovereign and corporate debt . Mark h. i think theres some spread that you can still take advantage of given the fact that the ecb is running out of rings that it can buy. We think the sovereign bonds are at a low. It is a historic low. Therefore, we would prefer to be in the equities. Mark mark, great to see you. Our carefully, noble chief Investment Officer mark haefele, noble chief Investment Officer at ubs. We will bring you the latest jobs numbers as they break. This is bloomberg. Stay with us. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Welcome to the pulse live from bloombergs European Headquarters in london. Im mark barton, getting some unEmployment Data in the u. K. Fewit is continuing to show signs of cooling the labor market. The number of people at work rose by 174,000 in the three months through july. Unemployment fell 39,000 leaving the jobless rate at 4. 9 . Estimates for july show unemployment falling to 4. 7 . The figures add to evidence the economy has fared better than predicted. Unemployment is widely forecast to rise as Economic Growth slows, though the boe is predicting only a gradual increase. Experimental data showed the jobless rate at the lowest level since september 2005. Employment now stands at a record 31. 8 million. There are some signs of fragility. 2400 inclaims rose by august. Byloyment meanwhile fell 105,000, the biggest decline since march 2015. A whole array of numbers to talk about. Lets talk more about that and this morning state of the Union Address by jeanclaude junker. Joining us to discuss that is sony kapoor. The economy is continually showing signs of resilience. The only negative was jobless claims, which rose slightly, employment falling in july, but the number of people at work rising 174,000. Of course july is just after june, but you have to say the economy is proving resilient. I think it is neither here nor there. There isnt enough information. The things to keep in mind are one, the economy had positive momentum before the brexit discussion started, and second, we have had a significant loosening of Monetary Policy, significant new action already taken and being promised by the bank of england, as well as the promise of removing a