amazon missed earnings expectations. amazon missed the consensus were like eight or nine straight quarters, it went through the moon. amazon is on an island. presidentgoing to trump, who is speaking at the white house. american wines: are great. thingidn't do the right when they start taxing our companies. we tax our companies. him, i said don't do it. we are working on that right now. i just spoke to him. i have a good relationship. they shouldn't have done this. they are used to taking advantage of the united states. donek at deals that were with other presidents in this country, and it it's a disgrace countries have allowed this to happen. from $300 was making -- $500to $5 billion billion a year, now we are taking in billions of dollars from china, and it is all turning around. try -- i don't think personally china would sign a deal. would say let's wait, maybe trump would lose it. like the people who allow these deals to happen. i blame the united states for allowing that to happen. if iran wants to make a deal, i ca

trump wants more details about a cloud computing contract the pentagon is set to award amazon or amazon -- or microsoft. is worth $10 billion with amazon seen as the favorite. but the president has reportedly been told of complaints that companies were frozen out of the bidding. of second deadliest outbreak the ebola virus has become a global health emergency. that is according to the world health organization. there are concerns the virus could spread outside of the democratic republic of congo. this outbreak has already killed more than 1500 people. the bank of korea has unexpectedly cut its benchmark rate as the nation's exports slump continues to drag on. the rate was lowered 25 basis points to 1.5%. the banks governor painted a gloomy picture for the economy. he said rising protectionism -- cited rising protectionism and increased tension with japan. shares of sap fell the most in years. they were up 15% after a 26% gain in the first three months of the year. they have spent more than $10 billion to buy to u.s. based cloud startups. global news, 24 hours a day on air, on tictoc, an

are in changing and the structural disinflationary influence of technology, not only because of the amazon effect, overall we have structural disinflationary pressures and qe has completely changed the game. the mindset of central banks needs to be overhauled. that is what i will say about the ecb and it applies to most of the major central banks around the world. however, the eurozone still has a growing population at the moment. there are less of those constraints there. the boj and ecb are pretty much identical balance sheet sizes. $5.3 trillion. versus $3.8 trillion for the fed. the euro zone an economy twice as large as japan. japan is the one who has way too much liquidity in the system. europe is theoretically not pushed to the end of the strain yet. in years ahead, it might go that way, but not quite yet. anna: let me ask you about what is going on in the pound. what is the lens you are looking at this through right now? seems that we are getting further away from any venue, any meeting point, physical meeting point of european leaders. without something like that on the radar, the

if you have more delivery routes can begraphic scale you out amazon it over. they do not have a lot of overlap. takeaway was in the u k before. they sold their assets because they cannot find a path to growth. is this going to be a solution? i don't know. alix: there are no margins in this game. it is all about scale. if you cannot get the numbers, how do you make money? brooke: that is a great question and the price is not out of this world. uber eats is a big player in the u.k., i do not know if we have seen the end of the story. alix: let's go to mylan and pfizer. pfizer merging its generic business with mylan. my question is who else needs to merge? brooke: this is a unique situation. it reminds me -- remember pfizer trying to buy allergan and they were going to do a similar deal and merge to the higher growth assets, and then you have the lower growth generic asset. this is a win-win situation for both of the players. i do not know if you have that exact dynamic any world but it is a great deal for pfizer. they get a load of the new company with debt, and

samee does not have the assets that amazon has. amazon kind of splits the difference. we can talk about their of as a platform player, but the thing that makes the money is amazon web services. so the effectiveness of that business is not necessarily to do with their platform, it is the things on top of it. anna: thank you very much. let's get to our top stock stories. annmarie hordern has the movers. annmarie: good morning. this is the biggest gainer on the stoxx 600, up more than 15%. , biotech technology company boosting revenue forecasts for the entire year. asml, they are to the upside. coming out of global growth slowdowns. pretty much unscathed after second-quarter results. while they are forecasting third-quarter sales trailing analyst estimates, they're keeping the outlook -- 2019 outlook the same. to the downside, down more than 2%. it is the biggest silver miner, cutting production forecasts for the year. we have not seen the stock drop that much since april. matt: thanks very much. i want to offer a sincere apology. you may notice we are experiencing some t

are they unstoppable, google, facebook, apple, amazon? stephen: a very good question. we are slightly in unchartered territory. back a couple decades, you had capital controls on currency, regimes were tightly controlled, part of the post-second world war settlement. now you're in a situation where the regulations have been relaxed, and companies have pushed the envelope. anna: stephen, thank you very much. stephen maclow-smith will be joining us on bloomberg radio, a little later on this morning. up next, an underpriced risk. we talk bond markets. this is bloomberg. ♪ ♪ matt: 30 minutes into your trading day, let's get the top headlines off of the bloomberg terminal. expect a call. steven mnuchin says he may head to beijing this week if trade talks are productive, as europe braces for u.s. tariffs on $7 billion of goods over illegal aircraft subsidies. trading revenue will be the talking point for goldman sachs and jp morgan as they report second-quarter results. wells fargo's numbers are also on the docket. we'll hear from cfo john shrewsberry. and, set to make h

to rebound on the latest point, amazon is our partner in food. we are the exclusive partner in food. our partners can order goods and be delivered on the same day. with amazon we have same-day delivery. that is a partnership with the best technological operators. there might have been too much retail space in the country, that is why we think closing ,ome of these spaces make sense and we are closing some of the space. there is also -- we have to be precise when we analyze the french market. it is a polarized market. buts a competitive market, there is different positioning and competitive dynamics, whether you in high growing or economically dynamic and demographically dynamic regions or you are in regions other's top competitions for a market that is shrinking. what we are doing is reducing our footprint in those regions and increasing our footprint in the dynamic region at the dynamic format of e-commerce. we think there is room for growth on profitable and new segments. isther specificity we have accompanying that with other activities such a

tech giants of the but and amazon report -- all the bet -- alphabet and amazon report. ♪ nejra: welcome to daybreak europe. it has just gone 6:00 in london. earnings onslaught is a great way to describe it. roche numbers are coming through. at 30.4lf sales come in 7 billion. the estimate was 30.53. first half core operating profit. the red headline, let me get to that. view toits sales growth mid to high single digits. that's very interesting. raising its sales growth view to mid to high single digit. that's the red headline on roche. at 11.1.comes in the estimate was 10.65. that's a beat on first half core eps. core operating profit for the first half comes in at 12.36. the estimate was 12.16. there's a beat on some of the numbers. the headline you want to focus on is the fact that it's raising its sales growth view to mid to high single digits. there were some pressures whether it would've raised guidance a second time this year. to the ceowe speak of roast. don't miss that interview at 7:30 a.m. london time. dani burger is standing by with the nokia earnings. beat are looking at a ac

a former amazon employee has been charged. the data had been stored on servers from amazon's cloud services unit. capital one says it is unlikely that any of the data was used for fraud. a warning from bayer. the german company says that reaching the full-year forecast looks increasingly ambitious. bad is threatening the -- weather is threatening the performance of the agricultural division. there is a number of plaintiffs in the weedkiller lawsuit. and steps to move past a scandal. the swiss asset manager has named a blackrock veteran as its new ceo. its staro it suspended bontrager and dismissed them for what he called gross that's what it called gross misconduct -- for what it called gross misconduct. that is your "business flash." guy: thank you very much indeed. mexico's president lopez obrador says that rates in his country are too high. he spoke exclusively to john mickelthwait in mexico city on monday. pres. lopez obrador: one thing is what is to be decided and another is what is possible. i would like the central bank

we see the mining sector not doing too badly. 2.7%,ve writeups, up talking about how amazon could come if it doesn't managed to get its hands on it. shorting by blackrock. that is of interest, up 2.7%. and exother side, dividend story down 12%. the chairman of micro focus selling stocks, down 4.5%. anheuser-busch, we talked about this, the way they had to pull this listing of their business in asia as a result of not as much demand as anticipated. growth concerns there. plus get a bloomberg first word news update. debra mao is an hong kong. economy slowed to its weakest pace in three decades. evidencebut there's stimulus to curb the slowdown may be starting to seep through. sales beat estimates. president trump is accused of racism after suggesting for banks female lawmakers go back to the places they came from. it seemed aimed at a former group of first-term representatives, led by alexandria ocasio-cortez. three of the women were born in the u.s., but none are white. dozens arrested as protests continue in hong kong, including clashes with police. demonstrators are demanding resignat

retailer but online really giving a run for their money to amazon. it is a stock pickers market. going forward you will not make it by being in nasdaq. paul: we will have to leave it there. thanks for joining us this morning. perimeter -- kramer capital research. daybreak,ition of bloomberg subscribers go to the terminal, also available on mobile and the bloomberg anywhere app. customize your settings so you are only getting views -- news you care about. this is bloomberg. ♪ check let's get a quick of the business flash headlines. delta is boosting its profit forecast with lower fuel costs allow it to command higher fares. $7.25 perects to earn share above the initial forecast. ae increased estimate comes day after rival american boosted its own outlook, citing the same market trends. paul: worldwide shipments of personal computers raise 1.5% in the second quarter, lifted by businesses upgrading. the number oneto spot despite the ongoing trade war. more pcs and taking one quarter of the global market. shery: nike is going ahead with the new factory in phoenix despite local oppo

it looks like a combination of globalization, technological shifts, which is hard to deliver amazon,lization, think and the fact that commodities like oil are having less of an effect on the overall economy. you put all of that together, you are right to think about it as a structural shift. we are more like the 1970's in things other than what the central bank says. david: pick that up in terms of what it does in the marketplace. if we are not believing what the fed has to say the way we used to, if oil is not driving the way it used to do, how does that affect an investor? .im: i think i agree with adam a lot of structural forces. one other is demographics. aging demographics in the developed world is the biggest cause because we did not develop the emerging world fast enough, which has younger demographics and we are suffering from week global growth and i think that continues for a while which is flatlined inflation. investor is not just that inflation does not come up, but what if you going to global deflation? that is frightening. i think as an investor i would like to see the fed err

one company we have invested in that we think looks interesting is called the amazon of japan. they will be established in the fourth mobile network. we think there are opportunities. it does look cheap on the surface. there are some great opportunities. >> when it comes to the valuations of the japanese stock market take a look at this g tv chart on the bloomberg. you can see that japanese stocks not expensive. you can see that it looks expensive given earnings estimates have been falling. when you look at japanese stocks, what worries you for the stock market there as we continue to see slowing economic growth around the world are you trades -- trade tensions are rising. >> the things we worry about is more technical issues and that is the buying of japanese stocks or etf's. a lot of these have been lot for non-fundamental reasons. it speaks to a broader which is monetary policy around the world [inaudible] and driven by the markets. so yes, we do think there are some issues and japan primarily because of the [indiscernible] we think that is part of a stock marketshere are su

this is amazon's debt to revolutionize retail. carol: i was fascinated by the weighing of items, people moving products around if something is on the wrong shelf. tell us how it works. is something my colleague and i were curious about when we started to research this. one thing i knew from following amazon was they have worked on this for an extraordinarily long time. probably longer than most companies would invest. they start this in 2012. jeff bezos told a top lieutenant, figure out a way to do something unique in retail. this is what they went on. they investigated a number of to removeke it work the lines of the checkout. they were looking at rfid chips and packages, having customers scan barcodes. what they landed on was the combination of computer vision sensors. there are cameras on the feelings. there are cameras behind the shelves. there are weight sensors in the shelves. --combines a shattering smattering of inputs to figure out what has been trade away as opposed to what has been put back. the other thing is there is

give us a sense of how big this is for amazon. sarah: there is expected to be $5.8 million in sales that would be an 11% increase in what it saw last year. it is important day for them to satisfied customers and an important day for them to remind people why they have a prime membership in the first place. we reached this moment where walmart and target are starting to match the speed of shipping that has been promised by prime and doing so without a membership. this is an important test for amazon to show why people should be shopping there. wonder how much amazon has created a new shopping holiday that work for everybody. we have seen other retailers that we are cutting prices, too. not just shop at amazon. you will have to go to school at some point. why not start in the middle of july? sarah h.: this has become a rising tide that lifts all boats. 250 retailers expected offer sales today, compared 194 last year. this does into be moving back to school shopping season into july. usually august would have been peak. it is now spu

amazon forecasts income below expectations. alphabet and intel jump in late trading after beating expectations. good morning. matt: good morning to you, less than a half-hour hour to the start of trading. take a look at the bunds. this is something i was talking about. you saw a reversal in the bond yields. as we were heading into the ecb meeting, yields were coming down. investors were looking for the possibility of a cut. then we interviewed the german finance minister where i circled in red. and you saw but yields go up again. that's because he says there is no crisis. he sees it coming back to the economy once these man-made problems, as he describes them, are solved. meaning once the char not u.s. -- u.s. china trade war is over, he sees it coming back to germany. investors were relieved and started letting go of the paper, yields rising. look at the stoxx situation. we don't see futures falling here. but we do see asian stocks coming down. we have cac and dax futures up a little, ftse futures down, but relatively little c

at this point, amazon's u.s. e-commerce sales are not growing entire u.s.than the e-commerce market, and to me that is a little visually and. -- a little bit worrying. we will see how they do in the third quarter and beyond, but this company's growth is slowing down. at the same time, it is spending more on things like warehouses. the margins people have been excited about and amazon are coming down at the same time the growth rate is also doing that. emily: ross, tesla coming up next week. i know you always have provocative thoughts on tesla. where is your head at? ross: i am excited for next week. tesla has gone through an enormous growth phase. the first quarter was a stumble, trying to get that international rollout, but it looks like they have been successful with it. delivery numbers are over 95,000. i expect them to make a profit. the street has said this company is dead and bankrupt, and that has proven to be untrue. cars isnd for ev continuing to explode. the heat in new york is so bad today, if this doe

facebook, amazon and google parent alphabet fell. suggesting policy missteps on trade talks and brexit could derail a projected rebound. the fund expects the world economy to expand 3.2% this year, slightly more next year. about 1/10 of a percent down from its forecast in april. that lowers expectations from what what already the lowest since the financial crisis. the bank of japan is likely to lower its forecast for the year. they also downgrade some of its growth projections when policymakers meet next week. the bank will cut its out -- inflation outlook to 1.1% for the year through march to reflect the impact of lower mobile phone charges. growth forecast may be ranging due to global uncertainties. british business is morning incoming prime minister boris johnson that he must avoid leaving the european union without a deal. johnson goes to downing street reiterating his pledge to leave the eu by the end of october, whether or not an agreement is in place. the confederation of british industry says that would be hugely worrying and

alphabet and amazon earnings after the bell. what to expect and the numbers you need to know ahead of that, when we come back. this is bloomberg. ♪ this is bloomberg markets. i'm shery ahn in new york. amber: and on amber kammer into rocco -- in toronto. onslaught ofe an regulatory scrutiny and including a $2 billion charge tied to its ftc settlement, the social media giant still reported better-than-expected second-quarter earnings and revenue after an initial advance. shares are now down over 2%. for more insight, let's bring in our senior equity analyst. he has a hold on facebook. great to have you with us. so investors did like what they saw in the performance of facebook. they don't like the regulatory environment at the moment. does the stock price right now reflect that environment? so, actually. it is pretty much the regulatory environment, the additional costs that facebook can incur because of that will keep the stock down. i think it will limit the upside to the stock, and it is trading pretty much where we valued i

amazon will cover the rest of the world. amazon studios is also working on a lord of the rings tv show in an effort to boost interest in its prime streaming service. shery: this year's likely biggest ipo price is later thursday was sources saying the institutional order book is at least 1.5 times covered. the retail order book is at least three times covered. budweiser brewing will list in hong kong after shares expected to beat uber's earlier this year. likely to value the operation at $64 billion u.s. paul: wynn resorts announced plans for a $2 billion expansion of properties in macau which include a theater and museum. the complex will be next on the cotai strip and will feature two hotels, interactive sculptures, gardens, and performance space. it is expected to begin in 2021 with a grand opening three years later. shery: nintendo unveiled a new cheaper version of its switch gaming console. the device that helped fuel a rebound in the stock this year. let's get more details from tom in tokyo. there are very high expectat

what are the takeaways from this amazon result? >> spending is back at amazon. they told us last quarter they will be spending some $800 million on trying to turn their two-day delivery pledge into a one-day delivery pledge. that has been more expensive than they thought it was going to be, and it indicated to investors it is going to continue at least for the next two quarters, rolling it out in the u.s. and internationally to try to increase the speed of delivery and integrate growth in the core retail business. vonnie: t-mobile has won the u.s. nod for the sprint sale, merger included. this is exactly what we were expected. does this mean that the two companies can go ahead with the deal? >> pretty much. they still have some stakes they need to be in front of and make sure they get aboard, but yes, it is a momentous occasion for the two companies, and this has been five years in the making. marcelo: it will be -- i call it a very strong race to see who can provide the best 5g. we feel very confident combined we are going to be able to do that, because the spr

stored onad been servers rented from amazon. capital one says it is unlikely any of the data was used for fraud. that is your business flash update. a quick check on u.s. markets. two hours into the u.s. trading s&p stillow is lower, off 3/10 of 1%, nasdaq leading the losses. slowing sales into the full year, given some of the trade tensions with china. -- the vix, ithat call that unchanged. i will call this lower, weaker, but not panicky. guy: europe looks a little worse. it certainly does on the continent. the dax down 2.1%. there are individual stock stories in their hurting the dax. downsideding sharply -- that is the monsanto roundup story. more gloom out of the aviation sector. the london market only down four of 1%, but, -- 4/10 the pound is kind of rescuing the british stock market. ♪ guy: 30 seconds to go until the end of regular trading in europe. a bright red trading story on the continent. mib down.ftse nordic markets down. the london market faring better. let me show you why. the reason is the british pound contin

amazon is tapping kobe bryant and other big names for its prime day summer sale. the event began today and runs through tomorrow. they face competition from walmart and target. latest bloomberg business flash. still ahead, we look at oil's outlook after storms lash the gulf of mexico over the weekend with futures in focus next. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn and this is bloomberg markets. there are reports that hp and dell plan to move as much is 30% of production away from china in a bid to avoid tariffs on you was bound goods. the flexibility and supply chain is helping the company navigate the dynamics. >> we have a global supply chain that has flexibility in it. we have 25 manufacturing facilities across the globe. we are balancing the needs of our customers with the environment we are in. i think we've done a nice job of alan finkel tariff dynamics and will continue to work our way through that and hopefully, the two governments will come to an appropriate agreement at the right time. >> what does that mean in terms of adj

amazon was going to go there. they are going to relocate a major part of their business. she kept them out. that was a terrible thing she did. so here is the story. i see them complaining, they are complaining constantly. i watched lindsey graham today on fox and friends talking about frankly,subject, and even stronger than what i'm saying. he said they are communists. i am saying that they are socialist definitely. as to whether they are communist, i think they might be. but this is not what our country is about. nevertheless, they are free to leave if they want. leave, fine.to if they want to stay, fine. politicians cannot be afraid to take them on. a politician that hears somebody , where we are at war with al qaeda, and see summary talking about how great al qaeda is, that was omar. how great al qaeda is. when you hear that, and we are losing great soldiers to al qaeda, when you see the world trade center get knocked down and you see the statements made about the world trade center, all of the death and destruction , i tell you what, i'm not happy with them. it is ver

amazon plans to teach new skills to one third of its american workforce. that is roughly 100,000 employees. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. david: we will stay on that subjects in the job market. fed chair powell referred to u.s. jobs numbers as an indication of u.s. economic strength, even as he puzzled over the lack of robust wage growth. issued ahas just report on the u.s. jobs market, where it is and where it is going. talks of the future of work in america, mapping the impact of people and places. we all welcome -- we welcome one of the authors of that report, susan lund. she joins us from washington. frances donald is still with us. susan, let's go into your report. tell us what the most surprising thing was that you saw. look: in this research, we at the impact of automation and future job creation on different zip codes and counties across the u.s.. what we see already since the great recession there is j

there has been amazon prime, hulu, all of the overseas players in the markets, and it has been able to achieve this dominant status. second, i think a lot of the original content has been resonating well with viewers across the world. they are hit series and they are able to generate a lot of momentum around these series, and that becomes another key to retention. conversely, with all the competition, i think what is going to happen, it will accelerate the whole thesis, which might end up being a net positive, not a net negative for netflix. the shift inlerate streaming away from a linear television platform to streaming, and the key beneficiary there is netflix. at the end of the day, netflix is viewed as the centerpiece of a streaming bundle. amber: right. reporter so much, our from bloomberg intelligence with the latest. we are now hearing from the world health organization. they are declaring the ebola outbreak a global emergency. we are now hearing from the who, commenting on the conga ebola outbreak, after declaring that outbreak a global emergency. the declaration is meant to he

. >> amazon's for earning with a $1 trillion valuation after posting a seven day winning streak. yesterday's close so it's market cap rise to $993 billion. again of less than 1% would push it above the 10 figure mark. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. respite, the ink on the plan is earning. deutsche bank confronts more potential problems. the investigation as part of the u.s. justice department's probe. more on the story next. this is bloomberg. ♪ nejra: this is bloomberg "daybreak: europe." cranny in manus dubai. breaking coming through from our region. according to sky news, you got a verbal warning to three iranian vessels and the u.k. government says the iranian vessels attempted to impede a ship. it comes amid reports of five to boatsrevolutionary guard attempting to seize a british oil tanker in the persian gulf. we also understand there are --e other reports that this i ran rejects the claim of an attempted seizure. and h

at leastositive, or for amazon shareholders. amazon approaching the trillion dollar mark. they briefly popped above it. there was a lot of optimism about their prime day. there was a little touch of that this time around but they had some major celebrities talking theiroduct -- hawking products and it was considered a positive day for all. one of the standout stories was a merger agreement that appears to have gone sour. haltedc, broadcom, have discussion trade proposed merger as the two sides could not agree on a price. that is according to people close to the matter. discussions hit an impasse. acquirer,a willing getting hurt bad. they are basing the kind of gains we are seeing in chip stocks which continue to run higher even though many analysts are warning they are starting to see them a bit overvalued. shery: we saw the oil break below the $60 per barrel. demand concerns. chinese gdp did not look too great. su: that stoked concerns. they have the second-largest economy reporting weakness and that adds to concerns about global weakness. let's take a look at the five-da

we note in the story that his predecessor and coo, came from amazon, didn't last three years. there are questions about whether they could sustain somebody in that role. it may be telling that they don't plan to hire another coo. emily: lyft shares are down. what is the plan? mark: they will have to outline that. they probably won't have profit but they will have to disclose financials in a week and a half. the plan is they are still somewhat in growth mode, spending a lot this year, expanding throughout the u.s. where they have a huge presence. they have a couple of locations in canada, but there's a big world out there to expand to. they haven't quite outlined how they are going to get to profit. emily: they did say this would be the year of spending. cooper is laying off people in the marketing department. mark: they are cutting the marketing department by one-th ird globally. emily: if those are what they call extraneous people, that's a lot of people. mark: they put out something that talks about how they saw the company had been slowing down, too many people overlapping

amazon is the favorite to be awarded the deal, which could be worth about $10 billion. republican lawmakers have complained that some companies such as oracle have been frozen out of the competition. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: thank you. let's get a check of global markets now with abigail doolittle. abigail: we are looking at a bit of a risk off tone in europe and the u.s. the s&p 500 basically flat, down just fractionally. the stoxx 600 down a little bit more, but also fractionally. the asian session, the shanghai composite down more than 1%, down another day in the row. the nikkei weighing the trade tensions between china and the u.s. plus, we had a big negative report from netflix. those were the equity markets to open first, so that perhaps affecting the mood. down moresix days, than 11% today, since 2016. this comes on their big subscriber shortfall, 2 million less subscribers signed up than expected. in

in pink is apple, and orange amazon, and white soft. last year apple was in the $1 trillion market cap club all by itself. right now trying to get back up there and join microsoft. it will be interesting to see whether investors bid up the shares as the summer goes on. vonnie: abigail, thank you for that. the u.s. and china wrapped up a new round of trade talks in shanghai. the white house called the session projective -- the session productive. still with us, stephen blitz, ts lombard chief u.s. economist. how are you modeling it into your forecasts? steven: basically, we think there's obviously a lot of politics involved in this. there's a lot of midwestern farmers getting hurt by what's going on. i think it becomes kind of like an arms troops. i don't -- arms truce. i don't think they could possibly get to a full agreement. i think they recognize that. i always thought they would just do agreements in steps. let's agree on what we agree on, but we can't agree on, negotiate that, and have the existential threat of tariffs weighing on

havee last week am you seen the difference between amazon and ebay. vyingisruptors and now with each other. i think that is just a sign of how tough it is to try and get monetized about consumer spending. anna: andrew, thank you. bring you the stocks on the move so far including ab inbev which has rallied after saying it will sell a unit. as you can see, up more than 4%. this comes after they had to curtail their ipo plans over in asia though they also said they still think they will allow for the ipo in asia. this is bloomberg. ♪ back to bloomberg markets. this is the european open. i am matt miller in berlin all longs ride and edwards in london. across thegains equity indexes both here and on the continent. ftse is gaining more than two thirds of 1% as well. let us take a look under the hood at some of these indexes to see what some of these individual stocks stories are. >> starting on the upside, ab inbev up by more than 4.5%. the australian company -- enterprise value of more than $11 billion. pioneer foods absolutely surging nearly 20 9% as pe

demographics have changed, and we have the rise of automation, the amazon effect. demographics have changed again. a 2% target is ridiculous. central banks targeting it is the wrong policy for assets, people, for real growth. as long as they keep trying to do that, they will distort the system and struggled to achieve it. we are pumping in liquidity, but it will not generate inflation because we have structural issues that means we will not sustainably get those targets ever probably. anna: thank you very much, mark cudmore. give us your thoughts on the fed and what it means to other central banks, what will the pboc do if the fed cuts rates this month? let's get a first word news update debra mao in hong kong. debra: that u.k. has confirmed an incident with iran in the strait of hormuz. they tried to impede passage of a tanker. the royal navy was forced to intervene, this comes amid heightened tensions in the persian gulf. iran's news agency says the revolutionary guard denied a competition. hedge funds have seen their best first half of a year in a decade. the av

also the structural disinflation issues, that is technology and demographics, not just the amazon effect, but also the fact that the extraction transportation and distribution of commodities is getting cheaper. i'm not worried about consumer price inflation. we know if we continue to devalue currencies and pump it in, they become more valuable than fiat currencies. that is different from real economy inflation. i have zero concerns about real economy inflation at the moment. a lot being written over the recent weeks. let's ask you about what's going on closer to where i am. we see some weakness coming through in the u.k. currencies today. the pound is weaker. one of the things we need to look out for heading into the summit, but also september, the end of october, what is the market focused on? the one advantage is all the negatives are well known. they are all long-term things. we did get those comments over the weekend michael gove singh brexit is becoming the base case. it is definitely not priced in the market. it may seem like it is priced, but this is a currency backed by very low

a lot of action already this morning, including amazon hopping the $1 trillion capitalization mark. meantime, the dow tops 27,000. it is back below that. now just for our purposes, it is back above 27,000 once again, possibly due to pbm. after thewell as well white house said it won't intervene in that part of the drug pricing planning. however, it is still going to put pressure on drugmakers to reduce prices, according to the health and human services secretary jerry a czar -- jerry azar. it is basically the same story, all to do with drugs. the s&p 500 also higher, up about 1/4 of 1% at that 3000 mark. it did not manage to close above that yesterday after fed chair powell's testimony. we will get more of that today, and the cpi data. the two-year yield has been bouncing around, up 1.85% today. stories, bathher and beyond down 4.7%. we will see what kind of halo effect that has -- down 7.47%. we will say what kind of halo effect that has. not many analysts were looking for a great quarter from their. -- $60bove $60 of arable a barrel for wti on the news, including another attack. i

department of justice is poised to open a broad antitrust review, putting alphabet, amazon, apple, and facebook into the spotlight. they are looking at whether the companies are so big they are stifling competition. for more, we are joined by bloomberg editor. how big of a threat is this probe? when you look at the language used in the justice department statement, you have to come away with the idea that this is a massive threat. they use some very broad language that seems to be aimed at the very business model these businesses are based on. they give away products to consumers in exchange for using that data to gain mass. we're talking billions of customers giving them a lot of market power. that has basically been an agreement that that model was acceptable, but this raises the question about whether it is. this is potentially very threatening. the timing also comes in a clinical season so there is the additional threat this becomes a political issue presidential candidates start batting around. so this is a broad-based threat they will have to scramble to address. matt: absolutely

amazon spends more than $8 billion. they spent more than $8 billion less year in advertising and promotional activities, but that growth is something to think about. is it in terms of one-day shipping, is it prime-day related, or are they trying to fight back? emily: it's interesting given that we were talking earlier about google's cloud business and how it is still in third place, though the cloud business in general is continuing to grow and is certainly not a zero-sum game. what do you think the slowdown or the disappointing numbers have to do with? competition orf because of amazon-specific issues? >> i don't think it is amazon-specific issues so much as competition. microsoft cloud business is up 60% recently. we know that business is on fire . we do not have a lot of his ability to google members. numbers. now amazon is competing with two giants, i think that absolutely could eat into the top line going forward. emily: what about the advertising business which has slowlyowly growing, becoming a third-place conten

at the amazon conference, you feel like amazon is leading the world in cloud. at google, you feel like they know they want to. likecrosoft, they feel they know they can and they focus a lot on the incredible reach of every single person in the world and how they can tap them with some sort of cloud service. it is hard to ignore china in that context. emily: if you cannot ignore china, what would the impact of the trade war be? this seems not to be subsiding, so if tensions remain, what does that mean? >> microsoft's strength in china has been around the cloud services. it was early in the market. amazon caught them fast. the market in china is for companies that want to go global or access the cloud services for the offerings they are providing outside china. so that has the potential to go strong, regardless of any iron curtain that might fall. emily: microsoft felt the antitrust pain in the 1990's with big antitrust hearings, but they have been largely out of the spotlight with the recent raft of hearings with amazon, google, facebook, apple all in the spotli

amazon tweeted it was the biggest 24-hour sales day in amazon history, at least day one. we are still waiting on final numbers. you know, there were some shoppers complaining that they were seeing technical glitches. there was a spike in searches for canceling amazon prime. so, presumably some of those people signed up bought some , things and wanted to cancel. what is the verdict so far, 36 or so hours? brad: sitting back and watching prime day, you have to marvel at what is sort of marketing event they have concocted out of thin air. they have created a holiday season in the middle of the summer. a holiday season comes -- brings with it a lot of problems. you've got porch pirates. you've got disappointed customers. you know, all sorts of things the company the frenzy. -- accompany the frenzy. overall, you have to sit back and admire the company for bringing itself to a peak season in the middle of the slowest time of year, right? they have created a frenzy where otherwise none would exist. they not only have done it themselves, but brought the rest of the online retail

emily: amazon opened a celebrity store a year ago. now they have all of these deals today tied to celebrities. they are starting to offer special products. lady gaga will offer an exclusive beauty product line only on amazon. how big of a deal is that? >> there are two things amazon has been trying to push into. fashion has always been an achilles heel for amazon. they have tried to go into basics by getting into and non-fashion categories. they picked up bigger business than macy's doing that. some of this is to get into the fashion accessories business. they are starting to realize the millennial crowd, they're going to start looking at different ways to attract that crowd back to amazon. channely has been a that has been added for a while now. emily: what are the trends you're falling one -- following on this particular prime day? over 48 hours. slightly more than last year. what is your take? >> prime day has typically been the biggest day of the year for amazon. this year, they expect that to be the same. one thing which has been

why is amazon suddenly caring? reporter: it is that they are beginning to get pressure from politicians, scrutiny from d.c. europe. it is bernie sanders today, but tomorrow, it could be both ends of the political spectrum. it is their growth. they are growing 20% topline per year. about one million employees throughout the world if you count temporary workers. . walmart, about 2 million. you can see a day when amazon becomes the largest employer in the world, and that will have pressure. emily: on one hand, we talk about the lack of workers to fill technical roles. on the other hand, there's an explosion of warehouse jobs, given what amazon and walmart are doing, and a decline in traditional retail jobs. what are the dynamics happening at the ground levels that has led amazon to do this? reporter: by some measures, it is the tightest labor market in half a century. you have companies complaining there's a shortage of the types of workers they want. of course, some management and economics experts would respond, are

amazon is lagging, off 1.9%. net sales looking good. -- operating income will be $3.1 billion, the estimate was more than 4 billion. alfa bank -- alphabet was killing it. they will be buying back shares and beat net sales and profit. a nice move in the other revenue. intel, athen you have big chip maker. they are guiding higher for the third quarter and the full year. they beat on second quarter revenue and starbucks reported fastest cell growth they have seen in about three years. that is largely because of the higher traffic and they are boosting full-year outlook to about 282 per share. that is from a range of 275. taylor: we are going to stick with these earnings. i want to bring in bob o'donnell, chief analyst at a consulting firm. thank you for joining us from san francisco. i want to focus on amazon, because those shares are declining among what has otherwise been positive news. we were expecting a margin hit, given we have been investing in that one day prime. investors seem more caught off guard then we

what does this mean for amazon then? spencer: it is tricky news for amazon. they have enjoyed rapid prime member growth. once they lock in a prime member, they can count on that for more sales through the year. the typical prime member in the u.s. spent a little more than twice as much what i nonprime member does on amazon. prime, even though it is a big tale of deals, the revenue they make is not as important as a new prime member sign-ups because that is where the revenue keeps coming year round. the indication that people who were not prime members are simply joining for a brief period to get the deal and backing out is bad news for amazon's prime member recruitment strategies. paul: what are people buying anyway? some of the purchases do not sound terribly glamorous. spencer: it is not much different from previous years. big emphasis on amazon's on gadgets like the echo speaker, fire streaming stick device, e-readers. it is typical from previous years. some kind of lingering favorites like the instant pot that is selling well and some laptops and electron

people are not going to buy a uy a device or amazon -- by google or amazon device and run apple services. 1.4, 1.5le has the billion unique users, the problem is that they are not taking advantage. what they still don't have is some sort of subscription-based service for purchasing an iphone. i think until the services are up to snuff, there still is this device-centric approach. one more point on this. apple gets 90% of its revenues almost from hardware devices. i think going all in on services at this point is too early. emily: all of that said, johnny apple's chief designer who has been there for 30 years is about to leave. he was incredibly involved in the apple watch, in the airpods, and some of the biggest hardware hits apple has had since the iphone. laura, does that concern you? device-centric question. doesn't bother me at all. what i care about is revenue per user and value in the ecosystem. are they adding news, movies, tv? those increase stickiness and lifetime value. watches, which creates stickiness? increaseshat stickiness to the 900 million users who are rich and global.

now she is taking on amazon. we will talk about the latest on europe's battle with silicon valley, next. ♪ >> they are hosting a number of businesses but also competing against those businesses in the very trade they do. now we are looking into the use of data to see if this is done in a fair way or will there be a case for us? emily: that is european union commissioner margrethe vestager. after five years battling big tech, the antitrust chief will step down from her post later this year but not without dealing one more blow to silicon valley. she plans to open a formal investigation into amazon within coming days. she has hinted for months that she wanted to escalate a preliminary inquiry to have amazon using sales data to undercut third-party markets. joining us to discuss is brad stone. how big of a blow could this be to amazon? brad: in the short-term term, probably not a huge blow. google is currently facing, think over $9 million in eu fines. it has been appealing them so that continues. this is the begi

we are seeing coalition's between amazon employees -- coalitions building between amazon employees. see the employees by the banding together to make the voices a little louder. emily: we will be following it. , thank you for the reporting. u.s. women's team was not the only winner of the world cup, with watchers 20% higher than the men's final. and in the netherlands, nearly 90% of those watching tv tuned in. go, team. that does it for this edition of "bloomberg: technology." our globalck out breaking news network tictoc on twitter as well. this is bloomberg. ♪ manus: this is "bloomberg daybreak: middle east." how the strong u.s. jobs report will factor in. goldman sachs says they are relying on the wisdom of the crowds. cuts, u.s. interest rate and the removal of the turkish central bank governor rocks the lira. , the islamic republic threatens to push uranium two 20% purity.

all of this was hosted on amazon servers using amazon web services. lyft has a $300 million contract with them for the next three years to pay for that. on top of that, google owns 5% of lyft and has a board seat. it's obvious that google and amazon are very deep within this economy. when you look into the filings, you see how concretely they are kind of the infrastructure behind how these companies work. >> in some ways, it is a blessing and in some ways it is a curse. you focus on amazon and google, and from the blessings side of the equation do you see this as , a good element that these companies have so much riding on , whether it be financially but for future revenue streams from these ipos? >> i don't know, caroline. there is good and bad. the benefits of cloud computing is that it allows startup companies, companies that are want to go public eventually or are going public to avoid infrastructure cost. cost you can treat your i.t. needs as variable costs rather than big fixed costs. you don't need to build up a large i.t. department to scale u