ot just in the u.k. in his pressit conference saying listen, right now, trade tariffs and tensions are not showing up in the overall economic statistics. the problem for the central banks is they have to be very careful in how they tread, to not look to political, and they can't really react until there to adjustng to react the uncertainty itself, you are seeing that within the fed presidents, the independent russian 10. influencing them. they're much more outspoken about uncertainty and what is -- what it is doing to the digital company's plans about their investment. the same is coming out of europe now. the uncertainty of trade with the u.s. is affecting business investment. i think it is important for central banks to stay very cautious in how they talk about even though it is something that clearly affects the economy over time. >> absolutely. the fed dual mandate looks at the unemployment rate and inflation. see that what we has been happening with the trade war might have been affecting the labor

and u.k. is pluralism. you can disagree about certain things. i think it is a strength, not a weakness. i enjoy the fact that in london you can be of a different religion, different ethnicity, and just get on. embassy -- u.k. embassy warned americans to keep a low profile. is that sensible? sadiq: i do not think they should be worried at all. conferencessed in a by an american company and they are loving london. i meet, on a daily basis, americans who love our city. i went to the protests today and said look, thanks for what you do for our city as americans, thanks for your contribution. there is no reason at all to be alarmed or worried. what is important is the protests are peaceful, and i'm sure they will be. francine: that was the london mayor speaking with anna edwards. well anna edwards joins us now from city hall. anna, great interview. what was the mayor's main message to donald trump? anna: the main message was that he wants to rise above the recent war of words, if you like. and he w

u.k. time. ♪ 2, down. back up. our phones are more than just phones. they're pocket-sized personal trainers. [ upbeat music playing ] last-minute gift finders. [ phone chimes ] [ car horn honks ] [ navigation voice ] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hundreds of dollars a year. it's a new kind of network designed to save you money. click, call or visit a store today. everybody.morning, 6:30 in london. not the haven it was. looking at the function on the bloomberg. it has lost ground against the dollar. the nikkei, up just over 2% in a rising asia-pacific. let's check in on the markets. sophie kamaruddin has an update. >> as you pointed out, with the yen trading at january lows, that is helping to provide a boost to stocks. asian stocks, they are gaining ground. we do have chinese large caps maintaining their advance. a happy friday so far for asian stocks. this

u.k. time. what does he have to say about the u.s. economy's resilience in the context of a trade war and the potential for inversion in the yield curve as well? morgan stanley talking about how that could be a possibility mid 2019. juliette saly is in singapore. raisede: officials have the prospect of resuming trade between the two nations after donald trump ratcheted up the pressure by announcing a huge new round of potential tariffs. after washington unveiled a list of chinese imports were $200 billion that could face higher duties, beijing called on america to resolve the conflict. signaled house is also it could restart talks. is two of the nato summit taking place. donald trump expected to remain on the offensive against american allies. house speaker paul ryan call the organization indefensible, but added that the president is right to push other countries to pay more for their defense. that came as the house passed a nonbinding resolution supporting nato. u.k.'s seeking to strike new tra

the u.k. keep custom borders open with the eu? what happens to services? this is bloomberg. ♪ guy: welcome back. european market, mixed at this point. turkey continues to be down, around 1%. most of the european markets are trading a little to the upside, .3%. the london market, up .2%. deal.k. is striking a new with services around the world. theresa may will set out her vision for a new free trade area in the brexit white paper today. how will that go down in brussels? goods and services, two different phenomena when it comes to the strategy with the eu. where are we in this process? i am confused. kit: our position is gradually giving up on the single market. the single market is the single marketing goods and services but a customs union is pretty much a custom union that is much harder for services. banker and want to trade in the states, you have to have a business in the states regulated in the states. if you are a lawyer or accountant, likewise. that is how services get regulated and

the u.k. and the eu, but not services. so they are saying we could see two separate regulatory environments. this is unnecessary concerns for u.k. based tech businesses, yet more headaches in terms of the regulatory environment they are going to be facing. they are also laying out that there is not enough visibility yet in terms of freedom of movement of people. this has always been a key battle cry for the tech sector -- we are worried about talent. the u.k. government has been backing new ways to have entrepreneurs come into the country, a new visa for entrepreneurs, but that is not enough in terms of hiring. they have other key concerns about the way in which brexit might occur and the regulatory environment for data as well, the way data is processed across the border. at the moment, tech u.k., a key spokesperson for the tech sector , is saying, we are worried. emily: how likely is it that this deal -- it is clear that prime minister may's party is behind her -- how likely is it that this

and u.k., where brexit is a success from a u.k. perspective because a key thing is to be able to strike trade deals independent of the eu. is the markets, the pound trading on the back foot. it is not moving that much yet, but the longer this drags on, the more difficult it will be for the pound to move higher from here. matt: i wonder what you think about the rising rates on the 10-year, especially after we heard from jerome powell. is that set to continue? a new bloomberg forecast sees rates rising a bit, but gary shilling said over the weekend he doesn't the any reason for them to rise too much. there are still buyers out there. right.: that is probably across the curve, i look at the two-year part of the curve at around 2.6%. that is an attractive level. that is turning u.s. cash into a very attractive asset class in and of itself. you didn't have to go too far back in the calendar to actually see you need to go far out the curve to get that yield. the fact you can get it in two-year u.s. paper is attractive. that will attract

u.k.. you see the u.s. tenure up three basis points right now. u.k. 10 year yield, down two basis points at 125. gilts in theport short-term. let's get you caught up with the first word news. jessica summers joins us from new york. gansica: are to one -- erdog has been sworn in with more powers. sincera plunged the most the failed 2016 coup. the appointed his son-in-law as finance minister. almost 25% is down against the dollar this year. chinese premier called for free trade as he much chancellor merkel in berlin. contrast to the attention both countries are experiencing with the u.s.. they are seen as prominent the borders of globalization amid the escalating trade war. navy divers brought for more boys out of the flooded cave system. that leaves just for boys and their coach trapped underground. eight have been rescued and are recuperating in a hospital. authorities are trying to bring the last group out as soon as possible because eminent monsoon rains threatened to push underwater lev

and u.k. about how the u.k., the surveillance systems that they have in place, looking at data, access it, and notably some of the relationships it has with new england, canada, the u.s. and those sorts of shareies to be able to data within spy rings so really can't beomething that assumed the u.k. will get so-called adequacy, and it's prove it to the e.u. when it leaves the e.u. in post-brexit. >> not just about privacy, but national security. those are the concerns. london, thankn you so much. coming up your move murdock. in fox's court. we'll discuss next. this is bloomberg. uss next. this is bloomberg. >> the 2018 emmy nominations are in. netflix has achieved a new milestone. streaming giants scored the most 112.ations, netflix overtakes hbo who has held the top spot. it reflects the rapid rise of netflix, which started receiving ininations for programming 2013. sticking with media and, another development in the bidding war for sky. britain's top paid tv provider. the u.k. government appr

if you force the u.k. to choose between u.k. and canada -- between norway and canada, you get a last-minute crisis. tom thought he was coming to europe to follow donald trump. tom: i was so intimidated in with rupert harrison that i corn a bot -- wrote about laws and peel. maybe we can talk about investment at some point. .our briefing across america "bloomberg daybreak." please stay with us from westminster. this is bloomberg. ♪ foror: microsoft is going the low end of the personal computing market, coming out with a cheaper service pro tablet to compete with the ipad. it goes for $399, half the price of the current service pro tablet -- current surface pro tablet. according to customer growth partners, school shopping will rise more than 5% due in part to higher disposable income and a strong labor market. that may indicate retailers will also have a strong christmas season. excitement about england's performance in the world cup has boosted consumer spending on televisionsues, and , up 5.1% in the past year. much.ne: thank

. -- and keeping the u.k.'s role as a world player. it looks like they are losing its place at the table as a leading country when it comes to international negotiations and discussions. an exit swedish leaders saying on the record that perhaps the u.k. used to be a leader in the world and another cannot lead their own country, you let alone -- country, let alone be a leader on the international stage. so perhaps hunt will push the u.k. back onto the international stage, and it showed that they can speak about other things other than brexit. but seemingly he is a safe pair of hands when taking over as foreign secretary. breaking news, you can see the live picture of brett kavanaugh, the supreme court justice nominee, meeting with mitch mcconnell and of the vice president, mike pence. standing for a photo opportunity. we saw him arrive a couple of minutes ago. he was greeted by mike pence, and of course mitch mcconnell, who already said that he will support brett kavanaugh in any confirmation hearings. let's lis

.he u.k. comes thursday it is pretty much a done deal they will be raising interest rates by a quarter of a percentage point. neil: it seems like it. most bank of england watchers are thinking it does look like a done deal and markets are giving an 85%, 90% probability to a rate hike. the u.k. economic data generally has been reasonably ok, quite solid. positiveys have been as far as the manufacturing sector. inflation is coming down. i think the bank of england is perhaps concerned that wage inflation might start pushing up. again, that is not totally clear cut. ,t does look like a rate hike mark carney is infamous for his inconsistency as far as forward guidance is concerned. i want to point out the at sixi trading today point 82 offshore. talk about the chinese exchange rate and what it means for you at vtb capital. neil: i think that is a very relevant question because a lot of people in the market do keep an eye on the dollar renminbi exchange rate when the renminbi weakens, some converte

and european -- or u.k. investors. etc, this is the blue bar chart, it has reached its highest since 2011. has beenholdings index coming slowly down as investors are losing faith in the gold -- in gold. anna, manus? anna: thank you very much. it is a big week for president trump. it will be a big enough week before we have the latest brexit news. today the u.s. president is off to the nato summit in brussels. on friday he has to the united kingdom to meet with prime minister theresa may. after that he holds a much anticipated with the russian president vladimir putin. bloomberg's have senior reporter for international affairs. this summit is shaping up to be slightly more dramatic than usual, and seems to have a loss of leaders -- a lot leaders worried. why are they worried about this summit? toeverybody is here just express the fact that they are allies. this is a military alliance that has been there for a better longtime. this time all kinds of concern -- there is a kinds of concern. and is not actually about what i

let's talk about u.k. assets. u.k. assets feel very difficult to judge right now. a lot of details on both sides, on bothks both -- tails sides, till risks on both sides -- tail risks on both sides politically. how do you judge where to put money to work in the u.k.? sandra: it is a very good question because we are quite polar the u.k.. we have some local domestic firms which are going to suffer in the slower growth environment -- this lower growth environment. some very strong multinational exporters, one of the reasons why the but he is up 30% since the -- ftse is up 30% since the announcement of brexit two years ago. recovered quite a deal of its loss from the announcement of brexit. i suppose it is relatively cheap here, but maybe one of the reasons for a rally overnight is because theresa may's government has lost some of the weak links. that is not. --there does not be any there does not appear to be any push for a takeover just yet. we might be in the period were in fact miss mate -- mrs. m ay -- theresa may has done all that she can. guy: be talk about the

this is downgrading the u.k.. continueheading out to their meetings, but the meeting that president trump has been looking forward to, although he is tempered expectations on, the russia meeting. what are they expected to discuss their? that's right, and that is a good point. is spending very little time in london, maybe one of the reasons as we are expecting a big protest tomorrow morning, when baby trump, a giant balloon of the president with a nappie will fly over london. clearly very contentious. when it comes to politics, it is also very difficult for prime minister theresa may, who has been under incredible pressure this week due to the number of resignations within her cabinet. and today she put out the brexit paper. it is difficult to see had he gets anything from trump, given the stakes when it comes to international trade relations at this point. so at the mess, we get a visit that has no incidents and president trump doesn't really get into brexit. maria, we know that the president has been reading up o

the u.k. prime minister is now directly overseeing exit negotiations, reinforcing her to thestay close european union. the pound gains. , seeinguarter results revenues fall sharply. the breakdown the earnings with the deutsche bank ceo at 9:30 u.k. time. ♪ manus: a warm welcome to the show, another bank, another set of breaking headlines. 1.60 7 billion was the number on the line. in the brazilian real has been the real hit. does the performance on santander -- there is the performance on santander. ahead of the estimates of 8.30 8 billion. think about ubs, way up there in the single digits. we just heard from deutsche bank, reducing risk-weighted assets. this is one of the perhaps most challenged capital position banks out there. terms of net income, 1.7 billion is a beat. net income is a beat. the second quarter is a beat. limited equity for number is 10.17%. so it beats the highest of the high estimates. that's the key point to take away. deutsche bank delivered a curtain raiser, if you w

>> the u.k. economy has been surprisingly strong very overall in europe, we have seen some disappointment in growth this year as the speculation that we .ould see a pullback we are seeing a tightening in monetary conditions. overall, this is about the u.k. and how it goes back to the eu and negotiates its exit. it will be a bumpy ride and i would not read too much in just yet for where this ends. sayne: is it too early to if theresa may will survive this? will imagine that she will be able to hold things together, but it is a setback. ramy: i want to bring in our other big major story, what is happening between the u.s. and china. billion amount, in terms of double -- in terms of donald trump, threatening and posturing against china. posturing.lot of if it continues like this, this war of words and actions, the u.s. has more to play with. it has a bigger range of products it can put tariffs on. that is the whole point. this is a bilateral trade imbalance and china has a limited number of options

the u.k. prime minister's brexit options are narrowing after the european union rejected her proposal for a train deal -- trade deal. theresa may thought her customs proposal was the best hope of getting a deal she could also sell to a divided parliament. said hef eu negotiator will never accept her plan. and you will not, dedicate the application of customs policy and rules and corrections. it would not be subject to the eu's searches. juliette: the turkish lira global currency losses and stocks slumped after u.s. president donald trump threatened to impose large sanctions if the nation does not release american pastor andrew brunson. unwelcomeff is an competition for turkey when it is grappling with natural stress -- national stress, including investor perceptions the central bank is not doing enough to shore up its currency. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more .han 120 countries you can find more stories on the

mark: u.k. regulators have a stern warning, move away from product based on the libor rate or risk more penalties. john, what is the fca worried about? john: it's not just the fca, is the financial regulators in general. they are worried about contracts like the interest rate swells through the derivatives. as the bond market mortgages in the u.s. have ties to this , it isn'tenchmark going to exist, basically. it's a benchmark that supposedly represents something that isn't happening. so, it is based on estimates. or should we say guesstimates of what it should be. which means it's not very robust . that means it's also open to manipulation. as we saw, there has been a lot of -- a number of court cases going through, heavy fines, banks don't like it and banks don't like the reputation of sitting on the panels that supply the evidence. the regulators don't want them and the idear 2021 is that we won't force them to do it anymore, so get to it. go at it. find something else. john, why aren't peopl

his countryni says will back the u.k. and accuses swindlingan union of u.k. voters. in greece, officials have said the death toll from the recent wildfires has risen to 91. another 25 people are reported missing six days after the blaze. it is the most deadly wildfire in europe since 1900. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. you can find more stories on the bloomberg. asia, we see equities and currencies and bonds tracking lower. you have the nikkei finishing down about three quarters of 1%. a lot of weakness coming through in the chinese market. .75%.x down you cannot stop the run that the market has been on. checking in on stocks we have an watching, the flowing effect from wall street with week is coming through in the tech space. you see tencent is the worst performer when you look at arctic cat in the region. to the upside, there have been good earnings coming through. rico in japan came through with good first quarter numbers. the main reason for the overshoot was

the u.k. front pages after theresa may want a key --e by the skin of her teeth won a key vote by the skin of her teeth. a crunch votens rebels.ro-e.u. warnedereng they would face a summit general election if they defeated theresa may. scotsman -- scotland newspaper, there is a call for a rewrite of the european union referendum. brexit story, always newsworthy. they don't always move markets, but the pound was weakening yesterday. managed to get it's crucial piece of legislation through the commons. manus: it is fascinating the times carried this out. no one really wants the job of the glue binding the stories. let's bring it to our chief investment officer still with us. the theater of brexit is hugely important. these risks are rising. how much of the tail risk of the new election is moving through to the barbell in the middle? >> it is a good question. are not sterling, we quite at that point. we were scratching our heads when the pound was rowling pretty hard. -- rallying pretty hard. now

u.k. and sterling. chinese market rallying strongly. we're also seeing a decent move in the nikkei, the japanese on the move. 2762 right now, the u.s. economy humming along nicely. the s&p friday, payrolls doing well, up .8%. the trade story dominated the early part of the session. we were up .5% this time last year. keep an eye on the car sector, the luxury sector, plenty of individual idiosyncratic stories that will move individual names around and they are worth paying attention to. the cac iran is one of the few performers. let's take a look at the early markets and the market makers. 7618 for the ftse 100, expect that to climb higher. the cac out of the gate is up .5%. ibex trading softer this morning. not getting that much of a pop higher, but the dax definitely filling in. the dax opening little higher. let's take a look at the car stocks in the car sector in europe. this is what the map looks like on the bloomberg 500 we're watching. energy reasonably well bid, which is interesting

the u.k.. may is it for the foreseeable future. alix: if you go inside the bloomberg, you can see the positions for sterling. very short positions. i wonder what the short covering rally looks like, how that plays out. >> it really remains to be seen, given what we've seen on the political side. the pound has been relatively stable. it really didn't plummet or do anything like what we saw when we had the referendum. if you look at volatility, you are seeing people pricing in potential weakness in the pound. i think it is going to come back to the political situation. we haven't seen a vote of no-confidence in theresa may as of yet. reports thata few they have been some letters calling for that vote, but she seems to be holding people together on the basis that goes, we might see another general election, leaves open the possibility of a labor government. alix: was turkey, take a look at the lira. this is the dollar lira. big jump for the lira overnight. now we've kind of pulled back overnight.

the u.k. in a weak negotiating position. can the prime minister hold onto power? a down week. shares drop on the first a with escalating trade tensions and uncertainty about valuation, to doubtvestors reason the company. and an escalation could be disastrous for the world economy. we will bring you that exclusive interview. ♪ welcome to "bloomberg surveillance."i am francine lacqua here in london . these are your markets. trade tensions actually focused on the upcoming earnings season for you can see the stoxx 600 to .66%. i'm looking at the pound. we are expecting an announcement very shortly. we are wondering if this will turmoil,resa may's since david davis does not have that much support behind him, if it could make a difference to the prime minister. euro-dollar at 1.1768. we will hear about monetary policy and trade tensions. later on, we talk investments with patrick armstrong. president trump is set to announce his supreme court pick. then we get a view from leslie v injamuri. now it

u.k. time. do not miss that interview. jean-claude juncker heads to washington to talk trade and donald trump calls for the eu to drop all tariffs and subsidies. will the two men find anything to agree on? as theresa may takes control of negotiations, the u.k. prepares for a no deal brexit. we will talk to the deputy government of the bank of england. at what isa look happening to european equities. the futures indicating stocks a little bit mixed today. futures down by 0.25% but yesterday we had european stocks rising for the first today and four. investors do it by those measures in china to stimulate the economy. following on are the mixed end of the day in asia. dax futures also down. slight move up in cac 40 futures. have a peek at what is happening in our wonderful gmm function. this is the g20 economies. turkish asked 100, the stock index, which saw a whopping decline of 3.3. the central bank took markets by surprise by failing to raise interest rates. the speculation was, we spoke to eco

now to the u.k. story, david davis and his deputy, steve baker, have quit over theresa may's plan for a soft split from europe. davis says the general direction of policy will leave us in, at best, a week negotiating position. may, who secured backing for her plan on friday, said she was sorry davis decided to go, but does not agree with his assessment. her office had a easement would be announced today. anna: jeremy corbyn reacted on twitter, saying david davis resigning shows theresa may has no authority left and is incapable of delivering brexit. it is clear she is more interest in hanging on for her own safety then serving the people. manus: speaking to bloomberg earlier, the former bank of england monetary policy member weight in on what this could mean for theresa may. >> she might not even survive the next week. this is a big piece of evidence. this is ongoing chaos. the party is tearing it self. formerly of the bank of england. joining us on set in london, alexis gray. very good to see you th

u.k. closely tied to the eu trading rules. they want her to explain more clearly how a new proposal will work. some programs that ministers are concerned the plans to keep the country in the eu tariff regime indefinitely. according to a member of the ecb's supervisory board, the central bank has talked with 50 financial companies about retaining the passport that grant them access to one of the world's largest economies. but the deadline -- there is a deadline they need to meet. the former malaysian prime minister has pleaded not guilty to corruption charges in connection with a multibillion-dollar scandal surrounding state funds. appearing in the high courts, he was granted bail of one billion, and he could be jailed for up to 20 years. he denies wrongdoing and is seeking a trial. h and a group has said their cochairman has done, following an accident on tuesday in france. he was 57. the chinese conglomerate said he had a fall during a business trip. seekingian president is closer ties wi

u.k. time. china has expressed regret over qualcomm's decision to scrap its $44 billion takeover of nxp's semiconductors, an apparent attempt to avoid blame after regulators failed to rule on what would have been the largest chipmaker acquisition in history. tensionsfell apart as between china and united states escalated. every other relevant jurisdiction in the world had green lit the bid. matt: we'll take a look at teh industry.h the sector is booming in china due to a recent surge of investment. there is a number of new and exciting drugs in the pipeline. can the good times continue to roll? joining us now is the ceo of the only chinese biotech firm listed in london has one of the earlier firms in the industry. thank you for joining us. muchs this getting so attention right now echoed why is biotech the market darling of china right now? this has to do with the unmet medical needs that exist in china. patientse world cancer reside in china. history oflong provisional therapies that are not gl

and u.k. police reportedly believe they have identified a suspect of the gas attack on the former spy and his daughter. pressing to the association, officers think several russians were involved in the attempted murder and say they are looking for more than one suspect. they say investigators were quote sure the suspects were russian. global news, 24 hours a day. powered by more than 2,700 journalists in more than 120 countries. this is bloomberg. nejra: thank you, taylor. and the effects of a trade war are being felt this earnings season. america's biggest aluminum maker has cut its profit forecast due to the impact. in ennis was an interview, japan's trade minister watch tariffs on his country to be widely felt. japan will not take the same approach to handling u.s. tariffs that it took for steel and aluminum tariffs. say the damage would be huge, not only to the japanese economy, but the u.s. and global economy. nejra: joining us this morning anddam cole at rbc europe sharon bell from goldm

setthe u.k. prime minister to say the notion of a hard border in ireland is almost inconceivable, but can she convince the e.u. that her plan will work? good morning. this is "bloomberg daybreak: europe." let's get straight to the breaking news. we are in the midst of earnings season. other headlines coming through as well. this is the stockholm-based telecoms company. it is buying barnier broadcasting for 9.2 billion swedish krone. in a littleming above estimates. bonnier willeo of become the ceo of a new business area. second quarter adjusted number comes in at 6.44. the numbers themselves look to be either in line or a shade above estimates and they are not changing their outlook. they are making this acquisition within the broadcasting space. this is a telecoms business that operates throughout europe. just in the last few days or so, they bought qvc's norwegian assets. this is setting themselves up for convergence on all those technological developments. that is of interest. at theinquisitiv

in the u.k. eurosceptics and conservatives are considering a radical last-ditch move that could bring down the minority government. brexit -- they want a more split, they have one choice left. pushes as theresa may forward keeping britain and a close trading partnership. despite the resignations of two cabinet ministers in protest area and investors pulled a total of $580 million from bond funds in the first half of this year and he turned in the worst performance among his peers during the time. according to bloomberg estimates during march, the fourth ,traight month of withdrawals the outflows have dragged assets down to $1.48 billion. the go anywhere fund declined 6.2% through june. 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. this is bloomberg. anna: thank you. donald trump in brussels for what promises to be a crunch nato meeting. he had this to say about his european trip. president trump: i have n

is there an entry point coming up in the u.k. for u.k. assets. things are getting increasingly binary it feels. mmy: things are already there. if you track the attitude or discount being applied because of exit -- brexit, it's tracking along the bottom. sterling, similar thing. this is it. a lot is priced but the nature of the problem remains digital. hasink the issue the market 's -- what the market looks like if it's hard brexit. xit,t's soft bre absolutely. even at the ftse level with the transition effect, silla value index. but the market can't work out whether we will get hard brexit. for some stocks, that could become a credit issue. you could see the downside. i think you have to wait probably until at least the first summit, and it's a question of whether you would i up 10% -- by it up 10% than anticipate what could be a convoluted political process. moving, see equities inversely correlated to the pound in the u.k. very clearly. is it so clear you could trade equities when you take an edge on the fx trade? jimmy: the correlation has dec

the u.k. and u.s. yesterday. this is the slew of papers on the visit. he gave an interview with the sun. it was startling, because he said boris johnson would be good is premised are, and he threw into doubt the trade relationship, because he does not feel like may is following through on brexit. what does the investor think? peggy: you are basically thinking that donald trump sees weakness in may and he is hammering at home. i was in england last weekend it was apparent to me that the confidence in her leadership is waning, and he is taking advantage of that. how much he is really going to follow through with what it sounds like our threats to walk away from a u.k. and u.s. trade deal, all of the trade talks are still negotiating tactics back and forth and we have seen it with president trump before, said he is taking advantage of what he sees as a weakness right now. alix: on the other side come he's that everybody in the u.k. loves him and we have protests on the same side. the city not so

the 100 and the u.k. up more than 1%, holding up despite all the movement we have seen in terms of two resignations from the u.k. cabinet, following theresa may's checkers plan on brexit from over the weekend. cable is weaker, down now 3/10 of a percent. and usually sterling and the 100 have an inverse relationship, but the pound going lower, jumping below the 133 handle -- 1.33 handle following the news of the resignation of boris johnson. naira, the euro is steady. 1.1747 is where we are trading right now. and yields moving higher as well, although it was not moving quite as much higher after we saw the resignation from boris johnson. and we have had a line -- we have had a line from theresa may, ruling out a second referendum, do not know how much that is affecting prices. generally, it has been risk on. and you can see a number of commodities, bids, a la momentum -- aluminum, gold is higher. and let's take a look at what is happening with equities. stoxx 600 closing of higher, gaining for a fifth day,

the u.k. conduct authority. we hear fromlater, inga beale. taylor: day two of the nato summit is kicking off with donald trump doubling down on his criticism of america's allies. he sent a series of tweets calling for nato members to.raise their defense spending and 120, he said, president have been trying unsuccessfully for years to get germany and other nato originations to pay more for their protection from russia. they pay only a fraction of their cost to the u.s.. the u.k. is seeking to strike new trade deals for services around the world. and is part of the brexit plan bid.will tie its theresa may's government is expected to publish the plan in so-called white paper, spanning more than 100 pages and detailing a comprehensive vision .u.k. and eu economic ties and expands on a three page paper published by may last friday after she unified her cabinet behind the plan. saudi arabia has started approaching banks for its first ever loan. bloomberg sources say lenders who participate in a mult

-u.k. trade deal. it hasdministration says some everything required to reunite 103 children separated from parents at their border. over half of them remain in custody over a week after they were to be returned. u.s. commerce secretary wilbur ross says he will sell all of his equity holdings. he was warned that his failure to divest assets that could create a conflict of interest could create the potential for a criminal violation. there was no evidence ross violated criminal violation -- access laws. in the first six months of 2018, fires blackened more acres in california than in the same time as last year. 85% of california's landscape is abnormally dry. our companies say they are taking steps to avoid another companies saywer they are taking steps to avoid another disaster. 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 am kailey leinz. this is bloomberg. euros president donald trump and british prime minist

the gentleman who will become the new u.k. foreign secretary, jeremy hunt, ends the longest serving health secretary, he's a conservative in the for southwest surrey, so little bit on his background as we continue outollow these developments of the u.k.. for now it seems as though government will stand. the pound falling after the forest johnson announcement, but recovering from its lows to let's get today's market minute and talk about what's going on with u.s. docs. , thegthening on the day dow up more than 300 points and the s&p 500 rising to its highest in about three weeks time. we have some individual news, pushing things around as well as what's going on in the bond market, so let's break it down a little bit. we talked about twitter and the decline there are reports that the companies getting a little more aggressive about pruning its member base. the reaction is overdone because it's something the company has announced a few weeks ago and has been doing. 11%, reporting that the company has approached several public co

and the u.k. for now, that is the view from john roe -- but back to discuss what it means for yield curves and portfolios, the inevitable end. it cannot go on forever. john: what will cause this period of extreme to come to an end? cyclical inflation is an important factor. the u.s. has given unemployment down to levels not seen since the late 1960's. how long can it stay before it forces the fed into tighter action? mark: what is the answer to that? long especially if you have these populist policies. if trump can get rid of 1.5 million of those, he cuts u.s. employment by 1% further. trying toly hard throw people out of the country at the same time as you have very low unemployment because it will naturally cause the tightness. against the backdrop, that is where you have to worry about how does the fed tighten. as they raise a short-term rates, the whole curve moves higher and they get this uniform tightening across the economy. mark: why is it not happening? john: the derisking is of -- a big

u.k. time. biggest bankgion's has reported second-quarter profits that exceeded estimates and committed to a forecast that it will make more money in 2018 than it did last year. to -- and come grow coming in at 800 million euros. >> we need to take into account but we are in good shape and we know what we are doing. have done andwe the projects are kind us and we are in good shape to drive the customer business forward. juliette: u.s. aluminum tariffs that were meant to protect the industry from foreign competitors are taking a bite out of the earnings of the nation's largest producer. alcoa has been hit with $15 million of material it produced in canada and shipped to america. the company cited higher energy costs and lower aluminum prices or the cash. outlook to reflect recent market prices, tariffs on aluminum and poor's him a increased energy costs, and operational juliette: impacts. juliette:that is -- operational impact. finishing in positive territory, we are seeing a negative start to th

the u.k. over the next five years. we will talk to the secretary of state on all future tech investments. this is bloomberg. ♪ >> once again, you u.k. government has made it a point to show off the country toss taxi. are hoping to secure the economic rewards of being a destination for ai and cybersecurity investment. this week, they unveiled the london cyber innovation center weeks after announcing billions of dollars of new investment in the tech sector with salesforce among the international companies. caroline hyde's spoke with the u.k. secretary of state for media, culture, and sports. >> large technology companies from across the world are not only welcome here to invest and expand their operations, but they are doing so with great pace. salesforce, you mentioned. over the last two years, we have had major investments from apple , google, ibm, amazon. a couple of weeks ago, further news from amazon. samsung opening their facility in cambridge. there is massive investment. 2017 -- it dou

is of the u.k. remains in a custom unions, a bit of a rotten deal in the services, a couple of sweeteners for the brexiteers , but essentially, even though brussels will say this is unacceptable, this is something they can work with. joe: i imagine there are a lot of people watching curious about the financial services aspect. is there anything in there for them here? flavia: i think they will be desperately disappointed. the key thing is the u.k. had said there will be some form of mutual recognition, clinging onto the hope that is given up. it is not in this. scarlet: what does this mean in terms of speculation about cabinet resignation, leadership lots against theresa may? is her job safer? flavia: it is hard to say. these guys fought tough and none of these guys have resigned. believe that she got them all in one room and they signed up on this. we've seen stuff on twitter, we are working to see if something will happen, but truthfully, no one wants to resign on the day before the u.k. plays a m

u.k. time. this is bloomberg. ♪ francine: economics, finance, politics, this is "bloomberg surveillance" live on the road. here in helsinki donald trump needs vladimir putin. let us get to henry meyer in moscow. needdoes vladimir putin out of of president trump. if president trump does not bring up the indictments, is that enough? henry: look, the situation has changed since the end of last week and now russia has dialed back its expectations for the thatt because it realizes this issue of the election interference is going to dominate the summit. it has really overshadowed it. at the same time, i still think that vladimir putin needs this meeting to take place. donald trump is so much more positive on russia than anyone else in the united states, the entire political establishment is ranged against russia and get the president of the united states has only kind words for vladimir putin and they are still banking on some kind of resumption of the relationship. that is the key thing they want t

the u.k. government saw a bit by conservative rebels to create a customs union with the eu if a trade deal fails. later today, theresa may will face prime minister questions and address the meeting of tory mps. jerome powell says the federal bank will continue to gradually raise rates for now to keep inflation near its target amidst a strong labor market. he told the senate committee that they believe, for now, the best way forward is to keep rapidly raising the federal funds rates. meetingon sybase, a g20 -- buenos aires, a g20 meeting. they have learned they are unlikely to be included in a final communique, as delegates are keen to avoid the kind of fiasco seen at the g7 meeting, when donald trump withdrew from the final statement amidst a flurry of insult. global news, 24 hours a day. powered by more than 2,700 journalists in more than 120 countries. this is bloomberg. thanks so much, taylor. the fed plans to raise rates for now, according to jerome powell. of theared in front senate banki

u.k. time. amazon's u.k. had has said there could be civil unrest within two weeks if britain leaves the european union with no deal. the london-based times said the warning was given at a meeting hosted by the u.k. secretary. it makes amazon u.k. the first business to issue such a stark assessment. a company has agreed to buy sentelle in a cash deal. it will pay for the technology from, 4.8% more than the closing price on friday. the total price is $3.57 billion 's debt.cluding syntel moreves them access to customers. tesla has asked suppliers to pay back a portion of its payments in an attempt to buy the electric carmaker to make a profit. that is exciting a memo sent to a supplier last week. the wall street journal says that it was sent by a global supply manager and described the request as essential to tesla's continued operation. yousef: thank you. let's go to technology. later today we are going to be healing that hearing from alpha that on its second-quarter earnings. predicts intelligence the $5 bill

that would leave the u.k. close to the eu and essentially involved in customs union and much of the single market. brexit a norway style would have a small affect. i think a much stronger brexit than that would have a significant negative effect on the british economy. most of the modeling which was done on what the medium-term loss would be was 5% to 7% of gdp. what we are seeing is consistent with that over 15 years. tom: francine and i spoke whoseday to a gentleman representation was the wisconsin of the united kingdom -- there are a lot of cows. how does an elite like you speak to those not in london in the united kingdom, the tone of trust us we know what we are doing. how do you speak to people in who are notingdom attached to the london service sector economy? nicholas: i think any argument that begins trust us, we know what we are doing, is an argument you should be careful about. whoever is involved in this have to present arguments on their merits. if you put obstacles in the way of trade, if you cre

bloomberg's caroline hyde spoke with the u.k.'s secretary of state for digital media and sport in london. mark: large technology companies from across the world not only are welcome here to invest, to expand their operations, but greatre doing so with pace. salesforce you mentioned, we have had major investment decisions from apple, google, ibm, amazon, a couple of weeks ago. further news from amazon. samsung opening their facility in cambridge. there is massive investment, i would say -- from 2016 to 2017 tech investment in the u.k., and we want to keep pushing it in that direction. caroline: what about the regulatory environment? because at some point, people leave the silicon valley -- specifically the silicon valley tech giants look at the e.u. and , worry will they be slapped with fines, they feel copyright law is going to tackle the right -- the likes of facebook and google? how much is your regulatory environment a blessing or curse? matt: we think there is an opportunity here, too. the u.k., traditionally, has a good track

emily: that was caroline hyde with matt hancock, u.k. secretary of state for digital, culture, media and sport. and that does it for this edition of "best of bloomberg technology." we will bring you the latest in tech throughout the week. this week, we will get tesla's delivery numbers and this company's ongoing quest to turn a profit. tune in each day, bloomberg technology's live streaming on twitter. check us out. be sure to follow our global news network on tictoc on twitter. this is bloomberg. ♪ ♪ >> lowering some of trade tensions in china, saying it will not fire some of the first shots. beijing says they will wait to see what washington does. >> president trump renewed his attack on opec. he says the cartel is driving prices higher and prices must come down immediately. >> coal is king in australia. at $58e with total value billion australian over the next year. >>

u.k. time, we will get gdp data with expectations that the world's biggest economy grew in the second quarter at the fastest pace since 2014. global news, 24 hours a day on air. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. i am taylor riggs, this is bloomberg. caroline: thank you very much. amazons investors have shrugged off second-quarter sales, focusing instead on soaring profits. the online giant reported a record second-quarter profit. generated net income of $4.16 billion this year, more than the previous seven quarters combined. joining us now is alex webb. it is not often you see a focus on profitability. it has always been focus on revenue, and they have pushed one-sided profit. as you said, they missed analyst expectations for revenue , but the reason people investors for the growth, the expectation that the sky is the limit. the skype might be the limits, but there is also the promise that one day they can flip the switch and

theresa may is facing a showdown to keep the u.k. trade -- tied to the u.k. trading rules. this comes ahead of a key meeting on friday with her cabinet ministers. they are feuding over fear that the premier could water down red lines on brexit. that is the view of the brexiteers. lena is still with us. we heard about a new idea around the customs union, various reports floating around about what that might contain. from your perspective, what really matters here? is it the fighting within the cabinets are what they come up with and whether it will be satisfactorily -- satisfactory to wrestle -- brussels? lena: it is the economic outcome. i think that it is clear at this point that brexit remains current -- extremely polarizing for government and the two main u.k. political parties. it is probably my thing for -- polarizing. anna: you think brexit is still possible? outcome is quite polarizing. we have to extreme scenarios. scenarios are between a default position of continued customs union's but without a deal for services, which is critically important for a very open econ

this is a big sticking point between the u.k., not only theresa may and her cabinet but the u.k. and the au -- the e.u. is supposed to have been negotiating with the e.u., yet the common observation is it is negotiating with it all. they were trying to put that behind them and come to a position they could take to the e.u. i suspect a lot of the commentary will be cherry picking or wanting to have their cake and eat it because they want something accustomed to the union and close in some ways on the good side of things. retaining some of the sovereignty. my guess is the e.u. will come back with a fairly hard stance here, play hardball. if there is any increasing fractures in the cabinet, that will raise the stakes even further. haidi: how much time do you assign to worrying about disorderly brexit and the effects on the european economy? paul: that is one of the tail risks right now. year, into march next either there will be some kind of agreement, transition arrangement for the best part of a year-and-a-half and some sort of other -- orderly brexit process or the u.k. is poised